Tag Archive for 'Myspace'

Thank you 2008, you finally gave New Media a name

Earlier this year Stephen Collins and Chris Saad had flown to Sydney for the Future of Media summit, and in front of me were having heated discussions on how come nobody invited them to the Social Media club in Australia. As they were yapping away, I thought to myself what the hell are they going on about. It turns out things I used to call "blogs", "comments" or "wikis" were now "social media". Flickr, Delicious, YouTube? No longer Web 2.0 innovations, but social media. Bulletin boards that you would dial up on your 14000 kbps modem? Social media. Online forums discussing fetishes? Social media. Everything was now bloody social media (or Social Media: tools are lower case, concept uppercase) and along with Dare Obasanjo I was asleep for the two hours when it suddenly happened.

social media bandwagon

However it turns out that this is a term that’s been around for a lot longer than we give it credit for. It hung low for a while and then as some significant events occurred this year the term became a perfect fit to describe what was happening. It’s a term that I’ve been waiting to emerge for years now, as I knew the term "new media" was going to mature one day.

Ladies and gentlemen, welcome to our new world and the way of defining it: 2008 is when the Information Age’s "social media" finally displaced the Industrial Era’s "mass media". Below I document how, when and why.

Origins of the term and its evolution
The executive producer of the Demo conference Chris Shipley is said to have coined the term during a key note at the Demofall 2005 conference on the 20th September 2005. As she said in her speech:

Ironically, perhaps, there is one other trend that would at first blush seem at odds with this movement toward individuality, and that is the counter movement toward sociability.

As one reporter pointed out to me the other day, the program book you have before you uses the term “social” a half-dozen times or more to describe software, computing, applications, networks and media.

I’m not surprised that as individuals are empowered by their communications and information environments, that we leverage that power to reach out to other people. In fact, blogs are as much about individual voice as they are about a community of readers.

The term gained greater currency over the next year, as Shipley would use the term in her work and various influencers like Steve Rubel would popularise the term. Brainjam which popularised unConferences first had the idea of a Social Media Club around the time of Shipley’s keynote and eventually formed it in July of the following year, which created more energy towards pushing for the term. Other people starting building awareness, like the Hotwire consultant Drew Benvie who from April 2006 has been writing the Social Media Report (and created the Social media Wikipedia page on 9 July 2006). Benvie said to me in some private correspondence: “When social media emerged as a category of the media landscape in 2005 / 2006 I noticed the PR and media industries looking for suitable names. The term social media came to be used at the same time of social networks becoming mainstream.” Back then it was more a marketing word to conceptualise online tools and strategies to deal with them, which is why there has been distaste for the term that prevented its adoption.

It was 2008 however when several news incidents, innovations, and an election entrenched this term into our consciousness. Later on, I will explain that, but first a lesson.

web2_logos

So what is Social Media?
A debate in August 2008 created the following definition: "social media are primarily Internet and mobile-based tools for sharing and discussing information among human beings. " I like that definition, but with it, you could arguably say "social media" existed when the first e-mail was sent in the 1970s. Perhaps it’s going to suffer the fate of the term “globalisation” where in the 1990s people didn’t know the term existed – but by 2001 in high school, I was told it had been around since the 1980s and by my final year of university in 2004 I was told "globalisation" started in the 1700s. Heaven forbid it turns into a term like "Web 2.0" where no one agrees but it somehow becomes a blanket term for everything that is post the Dot-Com bubble.

The definition is off-putting unless you have a fundamental understanding of what exactly media is. It might shock you to hear this, but a newspaper and a blog are not media. A television and a Twitter account, are not media either. So if you’ve had had trouble getting the term social media before, it’s probably because you’ve been looking at it in the wrong way. Understand what media really is and you will recognise the brilliance of the term "social media".

Vin Crosbie many years ago answered a question I had been searching half a decade ago on what was new media. Crosbie’s much cited work has moved around the Internet, so I can’t link to his original piece of work (update: found it on the Internet archive), but this is what he argued in summary.

  • Television, books and websites are wrongly classified as media. What they really are, are media outputs. We are defining our world on the technology, and not the process. Media is about communication of messages.
  • There are three types of media in the world: Interpersonal media, mass media, and new media.
  1. Interpersonal media, which he coined for lack of an established term, is a one-on-one communications process. A person talking directly to another person is interpersonal media. It’s one message distributed to one other person, from one person.
  2. Mass media is a one-to-many process. That means, one entity or person is communicating that one message to multiple people. So if you are standing in front of a crowd giving a speech, you are conducting a mass media act. Likewise, a book is mass media as it’s one message distributed to many
  3. New media, which is only possible due to the Internet, is many-to-many media.

I highly recommend you read his more recent analysis which is an update of his 1998 essay (can be seen here on the Internet archive ).

That’s a brilliant way of breaking it down but I still didn’t get what many-to-many meant. When the blogosphere tried to define social media it was a poor attempt (and as recently as November 2008, it still sucked). But hidden in the archives of the web, we can read Stowe Boyd who came up with the most accurate analysis I’ve seen yet.

  1. Social Media Is Not A Broadcast Medium: unlike traditional publishing — either online or off — social media are not organized around a one-to-many communications model.
  2. Social Media Is Many-To-Many: All social media experiments worthy of the name are conversational, and involve an open-ended discussion between author(s) and other participants, who may range from very active to relatively passive in their involvement. However, the sense of a discussion among a group of interested participants is quite distinct from the broadcast feel of the New York Times, CNN, or a corporate website circa 1995. Likewise, the cross linking that happens in the blogosphere is quite unlike what happens in conventional media.
  3. Social Media Is Open: The barriers to becoming a web publisher are amazingly low, and therefore anyone can become a publisher. And if you have something worth listening to, you can attract a large community of likeminded people who will join in the conversation you are having. [Although it is just as interesting in principle to converse with a small group of likeminded people. Social media doesn’t need to scale up to large communities to be viable or productive. The long tail is at work here.]
  4. Social Media Is Disruptive: The-people-formerly-known-as-the-audience (thank you, Jay Rosen!) are rapidly migrating away from the old-school mainstream media, away from the centrally controlled and managed model of broadcast media. They are crafting new connections between themselves, out at the edge, and are increasingly ignoring the metered and manipulated messages that centroid organizations — large media companies, multi national organizations, national governments — are pushing at them. We, the edglings, are having a conversation amongst ourselves, now; and if CNN, CEOs, or the presidential candidates want to participate they will have to put down the megaphone and sit down at the cracker barrel to have a chat. Now that millions are gathering their principal intelligence about the world and their place in it from the web, everything is going to change. And for the better.

So many-to-many is a whole lot of conversation? As it turns out, yes it is. Now you’re ready to find out how 2008 became the year Social Media came to maturity.

How 2008 gave the long overdue recognition that New Media is Social Media
The tools: enabling group conversations
MySpace’s legacy on the world is something that I think is under-recognised, that being the ability to post on peoples’ profiles. It gave people an insight into public communication amongst friends, as people used it more for open messaging rather than adding credentials like the feature originally intended when developed on Friendster. Yes, I recognise public discussions have occurred for years on things like forums and blogs, but this curious aspect of MySpace’s culture at its peak has a lot to answer for what is ultimately Social Media. Facebook picked up on this feature and more appropriately renamed it as "wall posts" and with the launch of the home screen that is essentially an activity stream of your friends, it created a new form of group communication.

The image below shows a wall-to-wall conversation with a friend of mine in February 2007 on Facebook. You can’t see it, but I wrote a cheeky response to Beata’s first message at the bottom about her being a Cabbage-eating Ukrainian communist whose vodka is radioactive from Chernobyl. She responds as you can see, but more interestingly, our mutual friend Rina saw the conversation on her homescreen and jumped in. This is a subtle example that shows how the mainstream non-technology community is using social media. I’m currently seeing how non-technology friends of mine will share links that appear on the activity stream and how they jump into a conversation about it right there. It’s like over-hearing a conversation around the water-cooler and joining in if you want.

Facebook | Elias, Beata, Rina

This is what made Twitter what it is. What started as a status update tool for friends, turned into a chat-room with your friends; you can see the messages posted by people you are mutually following, and you can join in on a conversation that you weren’t originally a part of. Again, simple but the impact we have seen it have on the technology community is unbelievable. Like for example, I noticed Gabe Rivera a few days ago had a discussion with people about how he still doesn’t get what social media is. I wasn’t involved in that discussion originally, but its resulted in me partially inspired to explore the issue with this blog post. These are subtle, anecdotal examples but in sum they point to this broader transformation occurring in our society due to these tools that allow us to mass collaborate and communicate. The open conversation culture of Web 2.0 has helped create this phenomenon.

Another Internet start-up company which I think has contributed immensely to the evolution of Social Media is Friendfeed. It essentially copied the Facebook activity screen, but made it better – and in the process, created the closest thing to a social media powerhouse. People share links there constantly and get into discussions in line. In the mass media, an editor would determine what you could read in a publication; in the Social Media world, you determine what you read based on the friends you want to receive information from. Collectively, we decimate information and inform each other: it’s decentralised media. Robert Scoble, a blogging and video super star, is the central node of the technology industry. He consumes and produces more information than anyone else in this world; and if he is spending seven days a week for seven hours a day on Friendfeed, that’s got to tell you something’s up.

The events: what made these tools come to life in 2008
We’ve often heard about citizen journalism with people posting pictures from their mobile phones to share with the broader Internet. Blogs have long been considered a mainstay in politics this last decade. But it was 2008 that saw two big events that validated Social Media’s impact and maturity.

  1. A new president: Barack Obama has been dubbed as the world’s first Social Media president. Thanks to an innovative use of technology (and the fact one of the co-founders of Facebook ran his technology team – 2008 is the year for Social Media due to cross pollination), we’ve seen the most powerful man in the world get elected thanks to the use of the Internet in a specific way. Obama would post on Twitter where he was speaking; used Facebook in a record way; posted videos on YouTube (and is doing a weekly video addresses now as president-elect) – and a dozen other things, including his own custom-built social networking site.
  2. A new view of the news: In November, we saw a revolting event occur which was the terrorist situation in India (and which has now put us on the path of a geopolitical nightmare in the region). However the tragic event at Mumbai, also gave tangible proof of the impact social media is having in the world .

What’s significant about the above two events is that Social Media has robbed the role played by the Mass Media in the last century and beyond. Presidents of the past courted newspapers, radio and television personalities to get positive press as Mass Media influenced public perception. Likewise, breaking news has been the domain of the internationally-resourced Mass Media. Social Media is a different but much better model.

What’s next?
It’s said we need bubbles as they fuel over-development that leave something behind forever. The last over-hyped Web 2.0 era has given us a positive externality that has laid the basis of the many-to-many communications required for New Media to occur. Arguably, the culture of public sharing that first became big with the social bookmarking site Del.icio.us sparked this cultural wave that has come to define the era. The social networking sites created an infrastructure for us to communicate with people en masse, and to recognise the value of public discussions. Tools like wikis both in the public and the enterprise have made us realise the power of group collaboration – indeed, the biggest impact a wiki has in a corporation from my own experience rolling out social media technologies at my firm, is encouraging this culture of "open".

It has taken a long time to get to this point. The technologies have taken time to evolve (ie, connectivity and a more interactive experience than the document web); our cultures and societies have also needed some time to catch up with this massive transformation in our society. Now that the infrastructure is there, we are busy concerning ourselves with refining the social model. Certainly, the DataPortability Project has a relevant role in ensuring the future of our media is safe, like for example the monitoring the Open Standards we use to allow people to resuse their data. If my social graph is what filters my world, then my ability to access and control that graph is the equivalent to the Mass Media’s cry of ensuring freedom of the press.

Elias Bizannes social graph
Over 700 people in my life – school friends, university contacts, workmates and the rest – are people I am willing to trust to filter my information consumption. It will be key for us to be able to control this graph

Newspapers may be going bankrupt thanks to the Internet, but finally in 2008, we now can confidently identify the prophecies of what the future of media looks like.

Analysing the user experience from two social networking sites

Yet again, MySpace has e-mailed me a useless e-mail that frustrates me more than it gives me value . But what I noticed recently, was another social networking site, taking a different approach.

geni

Whereas MySpace is simply alerting me, which is forcing me to painfully log into their service, Geni is actually alerting me the information without me having to take another action.

A few points of reflection on this:
1) Using my business analysis on the consumer Internet , MySpace is offering a content model (hypermedia is how I referred to this in my post) whereas Geni is offering a Utility computing product. Both these businesses consider themselves "social networking" sites and yet both offer a different product model.
2) This also highlights two different business models: MySpace is a platform whilst Geni is working on a network model. Meaning, MySpace’s business model is premised on you visiting them for you to get value; Geni’s isn’t. To be perfectly honest, both MySpace and Geni are irrelevant for me. However platforms can come and go, but network models always stick around. As irrelevant Geni is to me, I still value it – a network business strategy (meaning you follow the user, rather than expecting them to come) builds a long term relationship.
3) Social networking sites when it’s the core product, work best as utility services and not a content business. Look at what a different user experience it is for me, because I can get benefit from my Geni account despite not having to log in. Although I am not giving them pageviews, I am giving them my attention which is translating into greater brand equity for them. When you treat social networking as a content business, this distorts the service offered to users, as misaligned business views on generating revenue drive strategy in a way that is harmful to the consumer ie, I feel like saying "f**k off" whenever I see those e-mails for MySpace . But "thank-you" to Geni.

The main point I want to get at though, is that the user experience is just as important when the user is not on the site as it is when they are on the site. People shy away from the recently-recognised network model of business, because they don’t get the same traffic. I say embrace it, because the market will eventually correct itself to recognise this is a superior type of strategy.

Pageview’s are a misleading metric

Recently MySpace, the social networking site that once dominated but is now being overtaken by Facebook, sent me an e-mail informing me that a friend of mine had a birthday. What is unusual, is that although I have received notifications of this type when I had logged into the site, I had never been e-mailed.

Below is a copy of the e-mail, and lets see if you notice what I did:
birthdayreminder

It doesn’t tell me whose birthday it is. In fact, it is even ambiguous as to whether it was just the one person or not. Big deal? Not really. But it very clearly tells me something: MySpace is trying to increase its pageviews.

Social networking sites are very useful services to an individual; they enable a person to manage and monitor their personal networks. Not only am I in touch with so many people I lost contact with, but I am in the loop with their lives. I may not message them, but by passive observation, I know what everyone is up to. Things like what they’re studying, where they work, what countries they will be holidaying in, and useful things like when they have their birthday.

Social networking sites are not just a website, but an information service, to help you manage your life. However as useful as I find these services, the revenue model is largely dependent on advertising, with premium features a rare thing now. So when you rely on advertising, you are going to be looking at ways of boosting the key figures that determine that revenue stream.

Friendster’s surprising growth in May was due to some clever techniques of using e-mail, to drive pageviews. And it worked. E-mail notifications, when done tactfully, can drive a huge amount of activity. Of the what seems like hundreds of web services I have joined, e-mail at times is the only way for me to remember I even subscribed to it once upon a time. Combine e-mail with information I want to be updated with, and you’ve got a great recipe for using e-mail as a tool to drive page views.

…And that is the problem. MySpace has very cleverly sent this e-mail to get me to log into my account. A marketing campagn like that will at the very least, see a good day in pageview growth. But the reason I am logging in, is just so I can see whose birthday it is. Myspace now to me is irrelevant: those pageviews attributed to me are actually, not one of an engaged user.

Pageviews as a metric for measuring audience engagement is prone to manipulation. Increases in pageviews on the face of it, make a website appear more popular. But in reality, dig a little deeper and the correlation for what really matters (audience engagement) is not quite on par.

So everyone, repeat after me: Pageviews – we need to drop them as a concept if we are ever going to make progress.

Explaining APML: what it is & why you want it

Lately there has been a lot of chatter about APML. As a member of the workgroup advocating this standard, I thought I might help answer some of the questions on people’s minds. Primarily – “what is an APML file”, and “why do I want one”. I suggest you read the excellent article by Marjolein Hoekstra on attention profiling that she recently wrote, if you haven’t already done so, as an introduction to attention profiling. This article will focus on explaining what the technical side of an APML file is and what can be done with it. Hopefully by understanding what APML actually is, you’ll understand how it can benefit you as a user.

APML – the specification
APML stands for Attention Profile Markup Language. It’s an attention economy concept, based on the XML technical standard. I am going to assume you don’t know what attention means, nor what XML is, so here is a quick explanation to get you on board.

Attention
There is this concept floating around on the web about the attention economy. It means as a consumer, you consume web services – e-mail, rss readers, social networking sites – and you generate value through your attention. For example, if I am on a Myspace band page for Sneaky Sound System, I am giving attention to that band. Newscorp (the company that owns MySpace) is capturing that implicit data about me (ie, it knows I like Electro/Pop/House music). By giving my attention, Newscorp has collected information about me. Implicit data are things you give away about yourself without saying it, like how people can determine what type of person you are purely off the clothes you wear. It’s like explicit data – information you give up about yourself (like your gender when you signed up to MySpace).

Attention camera

I know what you did last Summer

XML
XML is one of the core standards on the web. The web pages you access, are probably using a form of XML to provide the content to you (xHTML). If you use an RSS reader, it pulls a version of XML to deliver that content to you. I am not going to get into a discussion about XML because there are plenty of other places that can do that. However I just want to make sure you understand, that XML is a very flexible way of structuring data. Think of it like a street directory. It’s useless if you have a map with no street names if you are trying to find a house. But by having a map with the street names, it suddenly becomes a lot more useful because you can make sense of the houses (the content). It’s a way of describing a piece of content.

APML – the specification
So all APML is, is a way of converting your attention into a structured format. The way APML does this, is that it stores your implicit and explicit data – and scores it. Lost? Keep reading.

Continuing with my example about Sneaky Sound System. If MySpace supported APML, they would identify that I like pop music. But just because someone gives attention to something, that doesn’t mean they really like it; the thing about implicit data is that companies are guessing because you haven’t actually said it. So MySpace might say I like pop music but with a score of 0.2 or 20% positive – meaning they’re not too confident. Now lets say directly after that, I go onto the Britney Spears music space. Okay, there’s no doubting now: I definitely do like pop music. So my score against “pop” is now 0.5 (50%). And if I visited the Christina Aguilera page: forget about it – my APML rank just blew to 1.0! (Note that the scoring system is a percentage, with a range from -1.0 to +1.0 or -100% to +100%).

APML ranks things, but the concepts are not just things: it will also rank authors. In the case of Marjolein Hoekstra, who wrote that post I mention in my intro, because I read other things from her it means I have a high regard for her writing. Therefore, my APML file gives her a high score. On the other hand, I have an allergic reaction whenever I read something from Valleywag because they have cooties. So Marjolein’s rank would be 1.0 but Valleywag’s -1.0.

Aside from the ranking of concepts (which is the core of what APML is), there are other things in an APML file that might confuse you when reviewing the spec. “From” means ‘from the place you gave your attention’. So with the Sneaky Sound System concept, it would be ‘from: MySpace’. It’s simply describing the name of the application that added the implicit node. Another thing you may notice in an APML file is that you can create “profiles”. For example, the concepts about me in my “work” profile is not something I want to mix with my “personal” profile. This allows you to segment the ranked concepts in your APML into different groups, allowing applications access to only a particilar profile.

Another thing to take note of is ‘implicit’ and ‘explicit’ which I touched on above – implicit being things you give attention to (ie, the clothes you wear – people guess because of what you wear, you are a certain personality type); explicit being things you gave away (the words you said – when you say “I’m a moron” it’s quite obvious, you are). APML categorises concepts based on whether you explicitly said it, or it was implicitly determined by an application.

Okay, big whoop – why can an APML do for me?
In my eyes, there are five main benefits of APML: filtering, accountability, privacy, shared data, and you being boss.

1) Filtering
If a company supports APML, they are using a smart standard that other companies use to profile you. By ranking concepts and authors for example, they can use your APML file in the future to filter things that might interest you. As I have such a high ranking for Marjolein, when Bloglines implements APML, they will be able to use this information to start prioritising content in my RSS reader. Meaning, of the 1000 items in my bloglines reader, all the blog postings from her will have more emphasis for me to read whilst all the ones about Valleywag will sit at the bottom (with last nights trash).

2) Accountability
If a company is collecting implicit data about me and trying to profile me, I would like to see that infomation thank you very much. It’s a bit like me wearing a pink shirt at a party. You meet me at a party, and think “Pink – the dude must be gay”. Now I am actually as straight as a doornail, and wearing that pink shirt is me trying to be trendy. However what you have done is that by observation, you have profiled me. Now imagine if that was a web application, where this happens all the time. By letting them access your data – your APML file – you can change that. I’ve actually done this with Particls before, which supports APML. It had ranked a concept as high based on things I had read, which was wrong. So what I did, was changed the score to -1.0 for one of them, because that way, Particls would never show me content on things it thought I would like.

3) Privacy
I joined the APML workgroup for this reason: it was to me a smart away to deal with the growing privacy issue on the web. It fits my requirements about being privacy compliant:

  • who can see information about you
  • when can people see information about you:
  • what information they can see about you

The way APML does that is by allowing me to create ‘profiles’ within my APML file; allowing me to export my APML file from a company; and by allowing me to access my APML file so I can see what profile I have.

drivers

Here is my APML, now let me in. Biatch.

4) Shared data
An APML file can, with your permission, share information between your web-services. My concepts ranking books on Amazon.com, can sit alongside my RSS feed rankings. What’s powerful about that, is the unintended consequences of sharing that data. For example, if Amazon ranked what my favourite genres were about books – this could be useful information to help me filter my RSS feeds about blog topics. The data generated in Amazon’s ecosystem, can benefit me and enjoy a product in another ecosystem, in a mutually beneficial way.

5) You’re the boss!
By being able to generate APML for the things you give attention to, you are recognising the value your attention has – something companies already place a lot of value on. Your browsing habits can reveal useful information about your personality, and the ability to control your profile is a very powerful concept. It’s like controlling the image people have of you: you don’t want the wrong things being said about you. 🙂

Want to know more?
Check the APML FAQ. Othersise, post a comment if you still have no idea what APML is. Myself or one of the other APML workgroup members would be more than happy to answer your queries.

5 observations of how social networking (online) has changed social networking (offline)

Just then, I had an image get shattered. A well respected blogger, whose online persona had me think they were a very cool person offline, is infact, a fat geek with an annoying voice. I can pretty much cross off the list that he can relate to experiences of how Facebook is mentioned in trendy nightclubs on the dancefloor.

Another thing I have noticed: all the major commentators & players of the Internet economy, are usually married, in their 30s or 40s, and almost all come from an IT background.

Don’t get me wrong – the industry has a lot of people that are a goldmine with what they say. They challenge my thinking, and they are genuinely intelligent. But although they are users of web services like Facebook or MySpace – just like the rest of society – they are people experiencing these technologies in the bubble of the technology community. Their view of the world, is not aligned with what’s actually happening in the mainstream. No surprises there – they are the early adopters, the innovators and the pioneers. It’s funny however, that comparable to other services (like Twitter) the adoption amongst the tech community for Facebook has been slow: it was only when the developer network launched that it started getting the attention.

What I want to highlight is that most commentators have no way in the world of understanding the social impact of these technologies in the demograghic where the growth occurs. We all know for example, Facebook is exploding with users – but do we know why it’s exploding? A married man in his 40s with a degree in computer science, isn’t going to be able to answer that, because most of the growth comes from single 20 year olds with an history major.

So what I am about to recount is my personal experience. I am not dressing it up as a thought-piece; I am just purely sharing how I have seen the world take to social networking sites and how it has transformed the lives of my own and the people around me. I’m 23 years old, the people in my life generally fall into the computer clueless category, and I have about 500 Facebook friends that I know through school, university, work, or just life (about ten are in the tech industry).

1) Social networking sites as a pre-screening tool
Observation: I randomly was approached by a chick one night and during the course of our conversation she insisted I knew a certain person. Ten minutes, and 20 more “I swear…you know xxx” – I finally realised she was right and that I did know that person. For her to be so persistent in her claim, she had to be sure of herself. But how can someone be sure of themselves with that piece of information, when I had only met her 30 seconds earlier?

I then realised this chick had already seen me before – via facebook. I know this is the case, because I myself have wandered on a persons profile and realised we have a lot of mutual friends. In those times I would note it is bound to happen that I would meet them.

Implication: People are meeting people and know who they are before they even talk. They say most couples meet through friends. Well now you can explore your friends’s friends – and then start hanging around that friend when you know they know someone you like!

2) Social networking sites getting you more dates
Observation: I met a chick and had a lengthy chat with her, and although she was nice, I left that party thinking I would probably never see her again as I didn’t give out any contact details. That next day, she added me as a friend on Facebook. In another scenario, there was a girl I met from a long time ago and I hadn’t seen her since. We randomly found each other on Facebook, and I’ve actually got to know the girl – picking up from where we left off.

Implication: Social networking sites help you further pursue someone, even though you didn’t get their number. In fact, it’s a lot less akward. Facebook has become a aprt of the courtship process – flirtation is a big aspect of the sites activity.

3) Social networking sites helping me decide
Observation: There was a big party, but I wasn’t sure if I would go because I didn’t know who would go with me. I looked at the event RSVP, and I to my surprise found out a whole stack of people I knew were going.

Implication: Facebook added valuable information that helped me decide. Not knowing what people were going, I probably wouldn’t have gone. Think about this on another level: imagine you were were interested in buying a camera, and you had access to the camera makes of your friends (because the digital photos they upload contain the camera model – as seen with Flickr). Knowing what your friends buy is a great piece of advice on what you want to buy.

4) Social networking sites increasing my understanding of people I know
Observation: I found out when a friend added me on myspace, that she was bisexual – something I never would have realised. Being bi is no big deal – but it’s information that people don’t usually give up about themselves. Likewise, I have since found out about people I went to school with are now gay. Again – no big deal – but discreet information like that increases your depth of understanding about someone (ie, not making gay jokes around them). I know what courses my contacts have studied since I last saw them, and what they are doing with their lives. I also know of someone that will be at one of my travel destinations when I go on holiday.

Implication: You are in the loop about the lives of everyone you’ve met. It’s nothing bad, because these people control what you can see, but it’s great because there are things you know, things you know you don’t know, but now you can find out things you didn’t know that you didn’t know.

5) Social networking sites as a shared calendar
Observation: My little sister is currently going through 21st season – back to back parties of her friends. One of the gripes of 21sts when organising them, is overlap with other peoples. Not only that – but also the physical process of contacting people and getting them to actually RSVP – it’s a pain. However unlike my 21st season experience from a few years ago, my sister has none of these issues. This is because Facebook is like one big shared calender. Another example is how I send my congratulations to birthday friends a lot more than I have in the past because I actually know its their birthday- due to fact our calendars are effectively pooled as a shared calendar.

Implication: Facebook has become an indispensable tool to peoples social lives.

6) Bonus observation – explaining the viral adoption of Facebook
I have a few friends that don’t have Facebook. You can almost count them on the one hand. And when you bring it up, they explode with a “I’m sick of Facebook!” and usually get defensive because so many people hassle them. In most cases, they make an admission that one day, they will join. The lesson here is that Facebook is growing because of peer pressure. The more people in someone’s network, the more valuable facebook becomes to them. When they say 40 million users, it’s actually 40 million sales people.

God bless the network effect.

Facebook is doing what Google did: enabling

The hype surrounding the Facebook platform has created a frenzy of hype – on it being a closed wall, on privacy and the right to users having control of their data, and of course the monetisation opportunities of the applications themselves (which on the whole, appear futile but that will change).

We’ve heard of applications becoming targeted, with one (rumoured) for $3 million – and it has proved applications are an excellent way to acquire users and generate leads to your off-Facebook website & products. We’ve also seen applications desperately trying to monetise their products, by putting Google Ads on the homepage of the application, which are probably just as effective as giving a steak to a vegetarian. The other day however was the first instance where I have seen a monetisation strategy by an application that genuinely looked possible.

It’s this application called Compare Friends, where you essentially compare two friends on a question (who’s nicer, who has better hair, who would you rather sleep with…). The aggregate of responses from your friends who have compared you, can indicate how a person sits in a social network. For example, I am most dateable in my network, and one of the people with prettiest eyes (oh shucks guys!).

The other day, I was given an option to access the premium service – which essentially analyses your friends’ responses.

compare sub

It occurred to me that monetisation strategies for the Facebook platform are possible beyond whacking Google Adsense on the application homepage. Valuable data can be collected by an application, such as what your friends think of you, and that can be turned into a useful service. Like above, they offer to tell you who is most likely to give you a good reference – that could be a useful thing. In the applications current iteration, I have no plans to pay 10 bucks for that data – but it does make you wonder that with time, more sophisticated services can be offered.

Facebook as the bastion of consumer insight

On a similar theme, I did an experiment a few months ago whereby I purchased a facebook poll, asking a certain demographic a serious question. The poll itself revealed some valuable data, as it gave me some more insight into the type of users of Facebook (following up from my original posting). However what it also revealed was the power of tapping into the crowd for a response so quickly.
clustered yes
Seeing the data come in by the minute as up to 200 people took the poll, as a marketer you could quickly gauge how people think about something in a statistically valid sample, in literally hours. You should read this posting discussing what I learned from the poll if you are interested.

It’s difficult to predict the trends I am seeing, and what will become of Facebook because a lot could happen. However one thing is certain, is that right now, it is a highly effective vehicle for individuals to gain insight about themselves – and generating this information is something I think people will pay for if it proves useful. Furthermore, it is an excellent way for organisations to organise quick and effective market research to test a hypothesis.

The power of Facebook, for external entities, is that it gives access to controlled populations whereby valuable data can be gained. As the WSJ notes, the platform has now started to see some clever applications that realise this. Expect a lot more to come.

Facebook is doing what Google did for the industry

When Google listed, a commentator said this could launch a new golden age that would bring optimism not seen since the bubble days to this badly shaken industry. I reflected on that point he made to see if his prophesy would come true one day. In case you hadn’t noticed, he was spot on!

When Google came, it did two big things for the industry

1) AdSense. Companies now had a revenue model – put some Google ads on your website in minutes. It was a cheap, effective advertising network that created an ecosystem. As of 30 June 2007, Google makes about 36% of their revenue from members in the Google network – meaning, non-Google websites. That’s about $2.7 billion. Although we can’t quantify how much their partners received – which could be anything from 20% to 70% (the $2.7 billion of course is Google’s share) – it would be safe to say Google helped the web ecosystem generate an extra $1 billion. That’s a lot of money!

2) Acquisitions. Google’s cash meant that buyouts where an option, rather than IPO, as is what most start-ups aimed for in the bubble days. In fact, I would argue the whole web2.0 strategy for startups is to get acquired by Google. This has encouraged innovation, as all parties from entrepreneurs to VC’s can make money from simply building features rather than actual businesses that have a positive cashflow. This innovation has a cumulative effect, as somewhere along the line, someone discovers an easy way to make money in ways others hadn’t thought possible.

Google’s starting to get stale now – but here comes Facebook to further add to the ecosystem. Their acquisition of a ‘web-operating system‘ built by a guy considered to be the next Bill Gates shows that Facebook’s growth is beyond a one hit wonder. The potential for the company to shake the industry is huge – for example, in advertising alone, they could roll out an advertising network that takes it a step further than contextual advertising as they actually have a full profile of 40 million people. This would make it the most efficient advertising system in the world. They could become the default login and identity system for people – no longer will you need to create an account for that pesky new site asking you to create an account. And as we are seeing currently, they enable a platform the helps other businesses generate business.

I’ve often heard people say that history will repeat itself – usually pointing to how 12 months ago Myspace was all the rage: Facebook is a fad, they will be replaced one day. I don’t think so – Facebook is evolving, and more importantly is that it is improving the entire web ecosystem. Facebook, like Google, is a company that strengthens the web economy. I am probably going to hate them one day, just like how my once loved Google is starting to annoy me now. But thank God it exists – because it’s enabling another generation of commerce that sees the sophistication of the web.

Tangler

This is the second post in a series – wizards of oz – which is to highlight the innovation we have down under, and how the business community needs to wake up and realise the opportunities. I review Tangler, a Sydney-based start-up that has recently released their application to the world as a public beta.

Tangler is a web-service that enables discussions over a network. Think of discussions with the immediacy of Instant Messaging (it’s easy), but with the persistency of a forum (messages are permanently stored). Discussions are arranged into communities of interest (groups), which are further broken down into topic areas. Click here to see a video overview.

Value

1) It’s a network application. Although it’s got a great design, and looks like a funky website, the real power of this web service is what it’s working towards: discussions over a network. Imagine a little widget with the topic “What do you think of Elias Bizannes?” placed on my (external) personal blog, my internal work blog, my myspace/facebook/social networking page, as well as it’s own dedicated forum on the Tangler site. A centralised discussion, in a decentralised manner. That’s big.

2) It’s community has great DNA. Communities are not easy things to build – my own experience on a getting-bigger-by-the-day internal project has shown that it is a complex science, touching everything from understand motivational theory to encouraging the right kind of behaviours (policing without policing). My usage on the site has shown to me that the active community building currently occuring, is on the right track. Anyone can hire a code monkey, wack on some flashy front-end, and say they have a great product. But not anyone can build a strong community – even Google struggles on this (the acquisition of YouTube happened largely because of community, because the YouTube community beat Google’s own service). Tangler’s community is already turning into a powerful asset – the DNA is there – now it just needs exposure, and the law of cumulative advantage will kick in.

3) The founder and staff are responsive to its community. I posted a question on the feedback forum, to prove this point: I got a response in an hour, on a Saturday. The staff at Tangler are super responsive – which in part, is due to the real-time discussion ability of the software – but also because of their commitment. As I state above – the value of Tangler is the community of users it builds – this type of responsiveness is crucial to keep its users satisfied to come back, because it makes them feel valued. Additionally, the community is driving the evolution of the application, and that’s the most powerful way to create something (adapting to where there is a need by the people that use it)

4) It’s a platform. What makes Tangler powerful, is that it encourages discussions around niche content areas. Make that niche content, being created for free. Low cost to produce + highly targeted content = an advertisers dream. Link it with a distributed network across the entire Internet (see 1 above), and you’ve got something special.

Conclusion

Social networks, which is what Tangler is, are characterised by:
1) the existence of a repository of user-generated content and
2) the need of members to communicate.

Tangler’s user-generated content and communications web make them an interesting fit for both media conglomerates and telecommunication companies (but for different reasons). I see a Tangler acquisition as a no-brainer for the big Telco’s. Integrating a social network like Tangler into Telstra, builds on the synergy between the communication needs of social network users and the communications expertise and service infrastructure of the communication companies. Unlike voice calls that are a commodity now, the Telco’s need to take advantage of their network infrastructure and accommodate for text-based discussions, which can be monetised for as long as the content exists (with advertising).

The challenge for Tangler however – as with any other Internet property – is that the scale of the audience of social networks determines the nature of the relationship with a communications company. Micro-sized social networks are not interesting to communication companies. Massive social networks are, but history has shown they would rather be partners than be acquired. To be attractive to the big end of town, Tangler needs to show to have a scale large enough to grow as a business but not too large to dictate the terms of the business.

My observations conclude me to think that they will be a hit once they open up their application to external developers, which will relieve the development bottleneck faced by their resource and time constrained team. However they shouldn’t rush this, as I still think their performance issues are not completely ironed out yet. An open API would be taken up by its enthusiastic community who are technologically orientated. Not too mention the strong relationships the CEO and CMO have forged with the local web entrepreneurial and development community in Australia.

My boss is currently doing a secondment as acting Finance Director at Sensis, Telstra’s media arm. Maybe I need to organise a catch-up with him, before these guys get snatched up by some US conglomerate!

The power of feedback

Validation of a persons self-worth is a key aspect of being human. Why do we like praise, but not criticism? Because the former validates our self-esteem, the latter contradicts it. Insecure people tend to seek more validation from other peoples opinions – because they need other peoples opinions to validate their self-esteem. Wonder why the modest don’t boast? It’s because their validation is not derived from having to tell you so that you know. They already know you know, and if you don’t agree, they don’t care – they’re self validated.

However no matter how secure you are with yourself, everyone loves a bit of validation – it’s just some people need it more than others, or possibly, we all have different ways in how we validate ourselves. Some fish for compliments on their looks; others validate themselves through great achievements. Validation of who we are, is what drives almost everything we do. That’s why an atheist should never bag out religion to a believer – the argument about whether God exists is irrelevant; what is relevant, is that by criticising the existance of a religious establishment, you are actually criticising a person’s self-identity that has been built on that establishment, by effectively de-validating their belief system.

Motivation systems are complex, and I by no means claim to be an expert – but I do know, that the power of feedback is one of the most effective ways of motivating an individual, especially when it comes to content creation. In the context of web-services, recognition and validation are key: people will stick around on your site, if they feel a greater sense of self-worth because of it.

There are two ways people feel validated on online communities: analytics and responses. Analytics in the sense of statistics: page and profile views, unique visitors, popular content. Most bloggers arn’t really making money out of their blog – so why is software that provides statistics on their readership so popular? Because knowing people read your blog, is a form of validation. A bit like how an insecure teenage girl feels validated by the attention she myspace profilegets from sleazy older men. Right now, I am writing this blog entry because a reader asked if I could write more about the interaction between psychology and successful web start-ups. His comment validated my opinions, spurring me to write more on the subject.

Likewise, Myspace users will post a “Thanks for adding me” comment on a new friend. Why? Because it means more people will visit their profile. The reason I can say there are ulterior motives to just thank someone, is because they could have said “thanks for adding me” as a private message. So it then begs the question of why do they want more people to visit their profile? Because people get an ego boost seeing their page count go up.

Statistics to something you’ve created, are a quiet form of feedback. The more views, the more validated you feel by that. Popularity is a great feeling!

A second type of validation, is a bit more direct: it’s through the interactions with people. When people create content – photos, blog postings, whatever – nothing is more satisfying for them than a comment.

Features like Flickr’s recent activity are also apparently, what makes it so addictive. Again – it’s a form of validation. By responding to something someone has created, you are giving value to that creation – that feedback can make someone justify the effort, by providing recognition.

Sometimes the most powerful way a boss can keep their employees satisfied, is by a simple “thank you”. Recognition for effort expended by someone, can sometimes be all that someone needs to keep going.

Think you have a killer web2.0 app? You might. But unless a user feels like they are getting feedback on their existance and content creation, their first visit will likely also be their last. Feedback feels good. People want to feel good. So go and make them feel good about themselves.

Social networks as the new e-mail

The other day, I received my first spam message within Facebook, which I thought was reminiscent of the Nigerian scam

Please if you are reliable and Interested in been a commissioned rep with our company we will be glad but you have to be a Trustworthy person. We have sold out to major galleries and private collectors from few parts of the world. We have been facing serious difficulties when it comes to the payment method, i.e The international money transfer tax for legal entities (companies) in Latvia is 25%, whereas for the individual it is only 7%.There is no sense for us to work this way, while tax for international money transfer made by a private individual is 7% .That's why we need you! Branches have been set up in few countries,and the head branch in UK.we are working on setting up a branch in the states, so for now i need a representative in Canada, America,Asia,New Zealand,and Europe who will be handling the payment aspect. so all you need do is cash the Payment,deduct your percentage and wire the rest back.</p> <p>JOB DESCRIPTION? 1. Receive payment from Clients 2. Cash Payments at your Bank 3. Deduct 10% which will be your percentage/pay on Payment processed. 4. Forward balance after deduction of percentage/pay to any of the offices you will be contacted to send payment to(Payment is to be forwarded either by Money Gram or Western Union Money Transfer).

But unlike spam I would get in my e-mail inbox, I could actually check the profile of the user that sent the message to me. It was empty and a dud – which is how I could assess it was spam. Spam through a closed social networking site like Facebook has very different implications to e-mail spam: it’s accountable.

Unlike e-mail spam, you don’t know who is sending it. Sometimes, the e-mail spammers can make it look like it comes from a certain company you trust (like your bank). This also to some extent happens on myspace, whereby spammers do up their profile and deceivingly make it look like a real profile when it isn’t (ie, a pretty girl with her interests filled out – but as soon as you click somewhere, it takes you to a porn referral site). Facebook is different, because people can’t modify their profiles (yet) like you can on myspace, so the person sending the message is a lot more accountable to their true identity. You can judge how real they are by the amount of friends they have, information in their profile, and postings on their profile from other people.

Profile comments are the key aspect – no comments, suggests a fake account – because you can’t fake friends to post real discussions. A spammer would need to create a few dozen profiles, to replicate the thread of discussion via peoples profiles, so that it could make someones profile look “real”: that’s a lot of effort that a computer robot can’t do on it’s own.

A new way of communicating

Aside from this, there is something more interesting: I rarely use e-mail to communicate with friends anymore. Messages or comments/wallposts are now the new way of how people communicate. In the old days, people would forward a funny video – now they “post a bulletin”. People post “notes” and tag their friends if they are mentioned in the note – a bit like writing a story, and alerting those who are involved to have a look. It’s the equivilant to sending an e-mail to a group of people – but leaving it somewhere where all your other friends can have a read as well if they want. That is huge – this open style of communication is something e-mail never did.

I’ve previously written how the “post a comment” feature is one of the most powerful features of social networking sites. When I say these sites are the new e-mail, it’s not just messages that are the means of communicating – it’s actually mostly through these profile comments that people have these discussions. The interesting thing about this new way of communicating, is that two people can be having a discussion, however all their friends can monitor the conversation. For example, I made a tongue-in-cheek comment of a Ukrainian friend of mine on her facebook profile wall, and another mutual (Ukrainian) friend saw the comment and joined in defending Ukrainians!

Social networking sites work because they are creating a community feel, where people interact within a tribe or small village that everyone knows each other, and they communicate in what is like a open forum. If it’s one thing I am sure of, these sites are no longer fads: they are a positive evolution of the Internet as a communications medium. It appear solutions to e-mail spam with clever algorithms that can filter messages arn’t the way forward; the solution is to be found in new ways of communicating, and that is what social networking sites do really well.

People think like two-year-olds

A few thoughts:

1) Property ownership is one of the central tenets of capitalism.

2) At work, I am involved in a special assignment. Throughout the initiative, I’ve caused a lot of friction with various groups because it was perceived that I was infringing on their “territory”.

3) Myspace allows users to customise their profile however they want. And people do.

4) My two-year old niece is going though a stage where everything is “hers”.

5) Capitalism works better than any other economic system; my firm is very successful as an organisation; Myspace is a run-away hit; my niece is a happy baby.

Notice a trend? The only difference between you and a toddler is that you don’t say “mine” every time someone takes your toy. Want to get peoples’ support or to buy your product? Then remember this: property and giving people a sense of ownership is how us humans work. We take comfort in what we can control.