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Courtesy of Information Architects Japan (wanna learn more)

 

One of the questions being asked about social networking is simply – what’s next. The conversation has been hovering around the idea of mobile social networking and the role of email as the next incarnations of social networks.

The New York Times published an interesting article entitled, Inbox 2.0: Yahoo and Google to Turn E-Mail Into a Social Network.

Ignore Orkut, OpenSocial, Yahoo Mash and Yahoo 360. Google and Yahoo have come up with new and very similar plans to respond to the challenge from MySpace and Facebook: They hope to turn their e-mail systems and personalized home page services (iGoogle and MyYahoo) into social networks.

Web-based e-mail systems already contain much of what Facebook calls the social graph — the connections between people. That’s why the social networks offer to import the e-mail address books of new users to jump-start their list of friends. Yahoo and Google realize that they have this information and can use it to build their own services that connect people to their contacts.

PC Magazine looks at the same question in its article, A Social Networking River Runs Through Web Mail.

Were either Google or Yahoo to roll its vast network of Web mail users into a social network, allowing users to display personal profiles and connect with others, either could challenge Facebook and MySpace nearly overnight.

Either or both would instantly have a user base more significant than the social networking giants have, and would also, like IBM Lotus Connections, have the advantage of an e-mail platform base.

What does this mean for social networking sites like Facebook and MySpace or what is the commercial impact on organizations only now getting up to speed on how to use such spaces? The pace at which society and technology is changing stresses a new level of urgency for proactive openness in order to fully understand, appreciate and adopt such shifts as they occur.

 

Who doesn’t love a good rumor? There’s quite a bit of buzz this morning about the supposed acquisition of Chinese social networking site, Zhanzuo.com, by Facebook. The rumor was featured in an article by The Times entitled, “Facebook’s hopes to enter the tangled web of China gain momentum“.

Facebook appears to have decided on acquisition as its preferred method of entering the booming Chinese market, after months of speculation about how the social networking website would tap the country’s rapid growth and avoid the pitfalls that have slowed earlier overseas venturers.

Facebook is reported to have offered $85 million (£41 million) to buy Zhanzuo.com, its largest Chinese counterpart, which has an estimated seven million active users and a popular base among students.

It would give Facebook a ready-made entry point to the largest internet market outside the United States.

Facebook has dismissed this assumption, but just for fun, here are a few articles spreading (and dismissing) the rumored deal:

YFacebook Offers $85 Million To Acquire Chinese Social Networking Site Zhanzuo.com (courtesy of TechCrunch)”
Y Rumor: Facebook to Acquire Chinese Social Networking Site for $85 Million (courtesy of Wired)”
N Facebook denies desires to buy Chinese social network (courtesy of Webware)”

So, we’ll see what happens next – one can never tell how such rumored deals can go.

 

In continuation of yesterday’s post regarding social networks, advertising applications and privacy, David Weinberger offers a great overview of the situation with Facebook in his post entitled, “Facebook’s Privacy Default,” via The Huffington Post.

Facebook makes an astounding array of information available to its advertisers so that they can precisely “target” likely suspects. This is great for advertisers, and — given that the ad space is going to be filled up one way or another — it’s arguably better for users to see ads that are relevant than are irrelevant. (The counter-argument is that targeting makes ads more successfully manipulative, not just more relevant.) Facebook is scrupulous, however, about not letting advertisers know the identity of those to whom it’s advertising. So, Blockbuster might buy ads for all men aged 18-24 who have joined the Pauly Shore fan club, but Blockbuster doesn’t know who those people are.

When Facebook talks about preserving user privacy, that’s what they have in mind: They do not let advertisers tie the information about you in a profile (your age, interests, etc.) to the information that identifies you in your profile (your name, email address, etc.). That is the informational view of privacy, and Facebook is likely to continue to get that right, if only because so many governmental agencies are watching them. I also think that the Facebook folks understand and support the value of maintaining privacy in this sense.

 

An article published by PC World entitled, “Advocates Ask FTC to Investigate Social Networking Ad Plans” attempts to shed light on the increasing need for consumer protection as social networking giants, Facebook and MySpace, move forward with advertising initiatives that may be exploiting their online participants.

Two consumer advocacy groups have asked the FTC to investigate whether new MySpace and Facebook advertising programs violate consumer privacy.

Two consumer advocacy groups have asked the Federal Trade Commission to investigate whether new advertising initiatives announced last week by social networking sites MySpace and Facebook adequately protect consumer privacy.

In a Nov. 12 letter to FTC Chairman Deborah Platt Majoras, the Center for Digital Democracy and the U.S. Public Interest Research Group claimed that the “ambitious new targeted advertising schemes” launched by MySpace.com and Facebook Inc. “make clear the advertising industry’s intentions to move full-speed ahead without regard to ensuring consumers are protected.”

Caroline McCarthy also comments on Facebook’s social advertising initiative in her post entitled, “Legally, are Facebook’s social ads kosher?

Social Ads, which have already begun to appear on the site, are designed to boost Facebook’s lukewarm revenues by targeting ads directly toward the members in question. They allow Facebook members to sign up as “fans” of an advertiser and then have their names and profile photos displayed alongside the marketer’s ads on their friends’ Facebook pages. Problem is, that potentially violates a New York privacy law that protects peoples’ names and likenesses from being used without written permission, according to McGeveran.

Check out the Center for Digital Democracy and the Electronic Frontier Foundation to learn more about free speech, privacy and other issues impacting you on the web.

 

Interesting article from the Guardian technology section. Is Facebook becoming more and more like MySpace? Only time, and user response, will tell.

Excerpt from Guardian post:

Facebook’s Mark Zuckerberg launched Facebook’s social advertising system in New York yesterday, and it has nothing to do with banner ads, or text ads. It is, rather, a clever way to capitalise on the rise of fansumers: the sort of people who buy products as a way of making statements about themselves and their aspirations: in other words, it’s the off-the-shelf lifestyle business. (Usually, the “statement” is that they have more money than sense.)

TechCrunch blogged the event, and says:

Facebook is announcing three things: Social Ads (ads targeted based on member profile data and spread virally), Beacon (a way for Facebook members to declare themselves fans of a brand on other sites and send those endorsements to their feeds), and Insight (marketing data that goes deep into social demographics and pyschographics which Facebook will provide to advertisers in an aggregated, anonymous way). These three things together make up Facebook Ads. Here are the press releases for Facebook Ads, Project Beacon, and its launch partners.

 

I’ve been having a hard time putting my finger on the pulse of what’s been bothering me about Google’s OpenSocial. It seems that it’s easier for folks to articulate the pros. The biggie being that Google is giving Facebook a run for it’s money (perhaps literally). Plus there’s the API overlay. Luckily for me Tom Nixon was able to note Google’s shortcomings via a recent post entitled, “Google opens up social networking, but we’re still not quite there.

[Excerpt]:

I still think that it’s dangerous for one company, be it Facebook or Google to have so much control over social networking. OpenSocial isn’t really open – Google controls who’s in and who’s out and how the whole thing works. Ultimately Google’s obligations are to their shareholders, not to the Internet population at large, and I doubt that these interests will be aligned much of the time.

The breadth of control Google seems to attain from OpenSocial deviates from what it’s purpose is described as achieving. It’s quite paradoxical really. But there is an unsettling feeling that we’re now faced with Goliath verses Goliath. Where’s David? And perhaps as Tom Nixon notes the answer resides in a “truly open standard for social network interoperability: open source, community owned, and decentralised.

 

Is OpenSocial really to be considered open source?

Excerpt from Read/WriteWeb entitled – OpenSocial: Three Big Concerns

OpenSocial is a hugely ambitious project that would tie together Google, MySpace and numerous other social networking platforms in a common environment that application publishers could publish widgets to with one set of code.There are some issues that need to be discussed about OpenSocial, however. It’s not all a bed of roses, believe it or not.

More buzz via Wired: “Google Aims to Break Open the Closed World of Social Networking” & PC Magazine: “Will OpenSocial Open Wallets for Google?

 

Microsoft purchased only a small stake in Facebook (1.6%) – so, what’s the big deal?

This is potentially a very big deal as the focal point of this investment is the online marketing/advertising potential of Facebook.

The Wall Street Journal reported that:

The software giant is gambling that the online advertising boom will continue and the popular social networking site will be among the biggest beneficiaries.

[In addition] Microsoft and Facebook say that the valuation is justified and that Facebook is starting to find ways to monetize its rapidly growing user base.

Facebook presents a big opportunity for online advertising, in part because it collects detailed information about its users — such as their hobbies, favorite music, location, age, and gender — that can be used to place highly targeted ads.

The cash injection from Microsoft will give Facebook funds to invest in new services, buy equipment, make acquisitions and hire engineers.

Facebook in coming weeks plans to unveil a new advertising system that will let advertisers visit an automated Web site to place targeted ads on Facebook and elsewhere on the Web, say people familiar with the matter.

Read WSJ full article.

Could this venture be the demise of Facebook? The never-ending plethora of ads on MySpace has resulted in the migration of individuals to Facebook. Could Facebook be subject to the same fate as MySpace? And if so, then what’s next for MySpace, Facebook and social networking?

 

It seemed that following the Web 2.0 Summit all eyes were on Google with their “rumored” takeover of Facebook – and then WHAM! Microsoft. Who knew. I surely didn’t nor did a large number of other folks. So the question there in lies “what does this all mean”. I’m not really sure yet (and need some more time to process), but I do know that the whole thing makes me a bit queasy.

Thankfully BBC News was kind enough to construct 15 reasons why Microsoft thinks that Facebook may be worth $15 billion (read full story):

1. The network has gone viral in the last 12 months, with more than 50 million users worldwide and a user base that is growing faster than great rival MySpace. According to Facebook, it adds 200,000 new users each day.

2. The average user spends 3.5 hours a month on Facebook – more than the average user on rival MySpace – which is increasingly attractive to advertisers.

3. Facebook is the current Web 2.0 darling – popular with ordinary users and “tech heads” alike.

4. US research reveals that Facebook users come from wealthier homes and are more likely to attend college than MySpace users – increasing that attraction for advertisers.

5. Microsoft’s investment makes them a serious player in the growing market of “social advertising”. Social network profiles are full of personal data that users voluntarily hand over, which is very useful for targeting adverts.

6. Sixty percent of Facebook users are outside of the US – so Microsoft’s investment buys access to a global audience quickly and simply.

7. Facebook is the new web: The decision to open up the network to outside developers turned Facebook into a destination for many uses, like messaging, photos and video. Of course, as Facebook is on the web it could never really be the new web.

8. Every major content firm with an online presence is either working on a Facebook application or has already launched one – from Google to the BBC.

9. According to a report, 233 million hours of work are lost each month in the UK due to staff looking at social networks. Advertisers can now target people when at their desks.

10. The openness of Facebook is attracting a wealth of talented developers who can launch their applications to millions of users quickly.

11. Facebook messaging is the new e-mail. Everyone feels stressed from a deluge of e-mail from unwanted people and companies. But Facebook messages are always from friends.

12. Facebook’s “status updates” have become the easiest way to let friends know what you are doing and how you are feeling at any given moment.

13. Facebook thrives on playful applications such as Pirates, Zombies, Super Wall and Top Friends, which have made the network a place to play as well as communicate.

14. Facebook is the acceptable face of blogging – you can reflect your life and personality online without being seen as a “blogger”, which often carries a geeky stigma.

15. Facebook is worth $15bn only because Microsoft says so. The value of Facebook is based on a 1.6% share of the firm being worth the $240m Microsoft paid for it. Microsoft and Google were in a bidding war for a slice of the firm and both companies have large pockets. This was not just business, this was personal, according to some analysts.

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