Frequent thinker, occasional writer, constant smart-arse

Tag: poll

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.

Understanding the Facebook poll feature

A little while ago, I was lucky to catch a Facebook poll, as a way of advertising its new poll feature. As a follow up from that experience, I thought I might purchase my own poll to validate its effectiveness. Here are a few of my observations:

1) Answers appear to be clustered

One of the interesting things about the poll feature, is that it is real time. You are getting answers as people vote. You select what type of people you want to target, and Facebook will then quiz users of that criteria by putting the poll on their homescreen. Something I noticed however, was that answers seemed to come in together followed by a gap. I also noticed that these answers that come in groups, usually have similar responses.
clustered yes

I appears that users are highly responsive to a poll. If it appears on their survey, a lot of people appear to answer it. I know this because I specifically targeted my poll to Australians, in the middle of the day when I wouldn’t expect people to be using facebook.
The placing of the options seems to affect the results. I suppose anyone that has studied polling before, would probably know the order of a ballot heavily influences the poll. This appears evident here. Usefully however, Facebook allows you to randomise the poll so that different users see a different order. However as is demonstrated above, with this clustering, its groups of users that see a different order, not individuals

2) Facebook users appear to be more male, and younger
Something I noticed in my previous blog posting on the poll feature, was that there appeared to be more males answering. This seems to have happened occur with this poll as well, and indicates to me that Facebook’s population of users have a higher male base – which is unusual given that women generally outnumber men in society.

fcfb2

It should also be noted that there is no age groups option for people above 50 years old.

3) Takers of the poll appear to be a genuinely random population
The reason I picked 200 people, was that that is the minimum amount a poll needs to be before it can statistically be considered accurate to represent a population. However as I was able to obtain data as the poll was running, it gave me insight into how random (and representative) the population that took the test was.

Below is a screenshot half way through, as well as the final result

results half wayb

fcfb1b

The results for the poll are almost identical. Without reading too much into it, that tells me the conditions of the test were genuinely random.

There are a few other things I noticed, but this isn’t me trying to promote a Facebook service, and will leave to make your own analysis in combination with the other Facebook poll I blogged about. I just want to highlight that for absolutely nothing, you can get an insight into a market in literally hours.

IBM recently released a report saying that the Internet has overtaken TV, changing the dynamics of the advertising industry, and that they see the role of advertising agencies in the future to go “beyond traditional creative roles to become brokers of consumer insight

Facebook is an amazing company because of the amount of data it holds about the population in various societies. And for a fee – the rest of the world can take advantage of this as well. Welcome Facebook – the world’s most competitive agency for consumer insight.

Google: the ultimate ontology

A big issue with the semantic web is ontologies – the use of consistent definitions to concepts. For those that don’t understand what I’m talking about – essentially, the next evolution of the web is about making content readable by not just humans but also machines. However for a machine to understand something it reads, it needs consistent definitions. Human’s for example, are intelligent – they understand that the word “friend” is also related to the word “acquaintance”, but a computer would treat them to mean two different things. Or do they?

Just casually looking at some of my web analytics, I noticed some people landed on my site by doing a google search for how many acquaintances do people have, which took them to a popular posting of mine about how many friends people have on facebook. I’ve had a lot of visitors because of this posting, and its been an interesting case study for me on how search engines work. However today was something different from other times: I found the word acquaintance weird. I know I didn’t use that word in my posting – and when I went to the Google cache I realised something interesting: because someone linked to me using that word, the search engine replaced the word ‘friend’ with ‘acquaintances’.

acquaintances

Google’s linking mechanism is one powerful ontology generator.

Facebook poll: how many friends do you have?

One of Facebook‘s new features is the ability to create surveys, targeted to certain groups of people within the community site. One caught my eye today, which asked 1,000 random people “How many friends do you have?”. Although I am not sure of the conditions this poll was conducted under (ie, did only Australian’s see it?), 1,000 random people should theoretically be a fairly representative sample of the entire population.

Whilst the results immediately show some interesting information on the typical size of a person’s network (which is a discussion in itself), I am equally fascinated by the specific genders and age breakdown of people who answered the poll and the correlation with their network size. One theory I have of why people spend so much time on the site, is because people ‘collect’ friends. They are constantly discovering old friends through mutual friends – a friend’s list leads a person to another profile where they may discover someone they have lost touch with. Check the results first, before I continue:

Poll on

Facebook poll breakdown

Facebook poll breakdown by age

Some of my interpretations of the results

  • Despite being open to anyone since late last year, university students still dominate the site as over half the survey was answered by people in the 18-24 age bracket
  • About 46% of males and 49% of females have over 200+ people. It’s impossible to have 200 ‘friends’ – no one can physically see 200 friends on a regular basis This tells me Facebook is now more about ‘contacts’ and keeping in touch with people you know. This makes it more than just a closed network of your close friends and more of a networking tool – validating what some commentators have been saying of late. I could spend a whole blog post explaining the implications of this, but basically, this means facebook is ‘the’ social networking site now and it’s only going to get more entrenched due to the law of cumulative advantage.
  • Of people aged 35 and above, 70% have under 99 friends – which is only the case of 41% of people aged 25-34, and 19% of 18-24. This is interesting, because the people in the 24+ age group didn’t have facebook when they were at university (which is why 18-24 is so dominant in this regard). Over time, you would expect the age groups to be fairly synchronised – in fact older people would have much larger networks. This tells me despite all the hype, Facebook is still not mainstream – there is a heck of a lot more growth to occur.
  • …and leading off where I started the blog posting: the fact that more males answered the poll (53%) – despite women generally outnumbering men in Western countries – implies men are more interested in knowing how many friends people have. So if you tie that with my ‘friend collector’ theory means more men spend time ‘collecting’…in other words, men stalk more!

Albania

Benjamin Franklin once said: “Certainty? In this world nothing is certain but death and taxes”. Well, I have another two certainty’s to add to the list: Japanese tourists are everywhere, and cab drivers are scum bags worldwide. But rather than complain, I want to tell you the stories I heard for this enigmatic country.

I have just spent three days (and two nights) visiting Albania. Whilst I was only there for a short time, I was satisfied in what I learnt, and absolutely fascinated. I stayed in Saranda, which is a port-city at the south of the country, near the Greek border. It is opposite the Greek island of Corfu. I stayed in an area called “exsamilia” which means ‘six miles’ – the six mile stretch of land under Saranda, which ends where Corfu starts. Deep rural territory! The south of the country is very Greek influenced, and I had to rely on my Greek for the entire time of my trip. Not only has Greek always been popular in the South, but some one-million plus Albanians (and that is a conservative estimate) have lived in Greece for some period of time. The people I stayed with, fled the country when the Iron curtain finally fell in 1990, and like so many others, recently returned to begin a new life.

Albania is one of the world’s most misunderstood countries – and I emphasis the mis-understanding of its people. Until 1990, it was a communist country run by the iron-fist of Hoxha (pronounced”Hodja”), as first-secretary (pronounced “dictator”). Access to the outside world was completely shut off, and Hoxha created a country that was so similar to George Orwell’s Nineteen Eighty-Four that it sent a shiver up my spine. His death in 1985, which is still being lamented, led to the country becoming the last domino to tumble in Eastern Europe’s communist downfall.

Under Hoxha’s rule, organised religion was banned. The entire population was spread out into small villages, with freedom of movement prohibited, even to the next town. Agriculture was collectivised. People were paid a daily wage of 200 Lekke, with no one in the country receiving more than 500. Young men served in the military, for I think three-years, and had to do nine-days annually again to retrain them with new weapons and methods. The country was turned literally into a military state, as there was a constant fear that Albania’s neighbours would invade. Cinema’s were available, but forget about love stories: the only movies shown were ones that where with the party line, namely being war. Television was first introduced in 1970, as an outlet for the governments propaganda. The 'bunkers', which served As entry points into the nations underground tunnel network
A tunnel Network connects the entire country, with small-domed bunkers dotting the country side for entry/exit into the tunnel networks. You would see these bunkers in the most remote, unpredictable areas.

If you criticised the regime, you were done for. If you forcefully pushed a woman in any sort of form, good-bye you. There was no crime, no criticism. Everyone lived like one big family. People felt safe; however they would wet their pants when I would ask about the Secret Police. It seems old habits die hard – such was the fear in the country.

Despite what people think, there was democracy. Polling booths opened at 6 and closed at 6.30. You could vote for anyone you wanted, as long as they were a legally recognised political party: which for all that time, was only the communist party. Election results for the communists always turned out to support it 99.98 per cent of the time. The other 0.02% were grandmothers who dropped their glasses. Although even if there were opposition candidates, I would not be surprised if, by their own free will, a majority would vote communist. They had been convinced to be happy with what they had.

As I said earlier, a daily wage consisted of 200 Leke. With 300 Lekke, you could buy 15 kg of bread, to give you an idea of the cost of living. To pay off your debt to the government for living in an apartment, you simply had to work one day a month. Theoretically people worked eight hours a day, starting at 7am, although most would doze off, clocking a few hours and spending the rest of the day chatting. They worked seven days a week. There were opportunities for entertainment, and there were no restrictions on procreation! But with such work hours, no one stayed out late. In fact, if you were seen out past 12am, you were in trouble. You would be criticised as being lazy and against the country, and you would be put in the prisons. To this day, no one knows what happened in those prisons.

When foreigners would come into the country, or Albanians studied abroad to help with a skill shortage, they had to get their story right before they came in. They were told to tell everyone that the outside world is a mess. There is no electricity, clean water, pure lawlessness. They were told to say Albania was one of the luckiest countries in the world. Given that Albanians had no contact with the outside world, is it any surprise Hoxha is treated like a god?

In 1990, the communists were ousted. The country basically turned into a barbaric society of lawlessness. In 1997, over 70 per cent of the population lost their savings in pyramid schemes, which resulted in nationwide uproar. Groups broke into the military barracks, and guns were stolen. There was open street warfare on the roads. People would shoot at someone, just for the sake of target practice. As such, in 1990 and 1997, you saw a large majority of the population spread to neighbouring countries. One guy I met left with his friends in the winter, and trekked through the mountains to get to Greece. It snows a lot in winter in Northern Greece. But they were desperate.

Having been to Greece several times since 1990, I grew up with the Greek racism. That they were cunning, thieves, and no-good people. I believed that to the day I got into Albania. Even though I don’t like to think of people as unequal, I just always had this perception that Albanians were scum. How wrong was I! And how wrong is racial tension in the rest of the Balkans, where Albanians are shunned. I have never in my life been treated with more respect and hospitality. Although I had a negative experience with a taxi driver when the bus dropped me off at the border, that was only because he over-charged me – but this was more a case of my inexperience as a first time traveller rather than him being a bad person.

Everywhere I went, people would shout me drinks. Even my taxi drivers! On my way out of the country, I had to catch a bus for Corca to Progradec. During that one hour or so, I sat next to a middle aged Albanian man. He did not speak English or Greek; I did not speak Albanian. So we had a conversation purely with sign language. He knew ten words in English which helped, however four of those consisted of “I don’t speak English”. Once we got off the bus, he insisted I go to his house for a coffee. There his son, who spoke English, could translate. They then told me, after ten minutes in the house, that they would drive me to the Macedonian border in the wife’s brother?¢‚Ǩ‚Ñ¢s taxi, free of charge!! I saved about 10 Euros, as well as the hassle of trying to find transport to the border. Who would do that in Sydney?

At no stage, did I ever feel unsafe, or disrespected. In fact, everyone took a genuine interest in looking after me. The people I stayed with literally treated me like their son. The people I met along the way, were extremely worried about the next stage of my journey without their help. They would go out of their way to help me. The only thing I was worried about, was trying to work out the right-fare for a cab fare, but I only had to worry about that once, at the beginning. The cost of living is incredibly cheap there – I was told I was ‘ripped off’ by this restaurant at Saranda: I paid the equivalent to five euros, and was absolutely stuffed!

A lot of the young hate communism. But the old, or rather people 35+, think of the old days with nostalgia. There are two reasons for this: poverty, and security.

For people born in the communist state, that knew of a country with complete security, harmony, and equality. When capitalism and democracy came in, they saw lawlessness and inequality. Young girls who previously could walk around the country in perfect security, have been poached for prostitution around the Balkans. People are living in extreme poverty, and are being forced to fend for themselves. We may find it absurd how people like them prefer communism and totalitarianism over capitalism and democracy, and yet we need to see it though their eyes: their experience in being ‘free’ has turned their country in an anarchy. What so free about not being able to feed and protect your family?
The inland landscape during my bus trip

Albania has got the cleanest water I have ever swum in. It also has the most beautiful inland landscape I have ever seen. My bus trip took me along roads I didn’t think roads could go, along mountains. Imagine two mountain ranges, separated by a valley 100 metres wide. And in that valley, a stream and sometimes river would run, with the ground completely covered in farm land. Unfortunately, I wasn’t able to take great pictures because the bus was moving, and when I realised I should take a picture, we had already passed the best bits. It really was breathtaking.

I think Albania has got massive potential. Not just as a tourist destination however. During communism, religion was banned. Organised religion is one of the biggest set backs of modern society, because it was a form of control imposed by empires 2000 years ago. The traditions, hatred and history constrain us to this day. As an Orthodox Christian, if I was to marry a Catholic Christian, my family would despair. In Albania however, if you are a Muslim, and you find a person you are happy with who is Christian, you have the full blessings of everyone. Whilst spirituality is an important part of the human dimension, organised religion should not be separating us. Despite Albanian’s economic problems, and inexperience in democracy, I think they are an advanced society, whereby all citizens are genuinely equal. In fifty years time, we will be seeing them as a model.
A mosque and Church, recently built as they were all demolished during communist days, standing near each other in perfect harmony

The elections next month are on everyone?¢‚Ǩ‚Ñ¢s minds. Whoever wins, people are predicting that it will be a hung parliament. The feeling with people is that the centre-right New Democracy party needs to win, to give the country stop steps forward, rather than backwards, as the communist party is doing. These elections will be the crucial thing to see whether it take 5 or 50 years for Albania to get itself together.

I am currently in Ohrid in (the Former Yugoslav Republic of) Macedonia, the tourist Mecca of the country. It really is beautiful here, and I am still experiencing, so I better get off this computer and find some English speaking locals. And as they would say in Macedonian, “ayde ciao!”.