Facebook today announced a new optional feature– the ability to see which friends, or friends within a created group, are nearby. The social network is smartly looking to better serve its members who have made the mobile mind shift, expecting to get what they want in their immediate context and moment of need. In this case – knowing when a friend is nearby.
Prviacy will be a concern with this feature, but users are protected by opt-in’s and by only mentioning how close someone is, not their specific location. Connecting directly in person requires a number of steps including messaging and permission. A few thoughts:
1) This isn’t original, but Facebook has a better shot at success than the original services.
About 10 years ago, Sam Altman started a company called Loopt that he sold about two years ago to Green Dot for $43.4M. It started out as friends connecting, but eventually needed to make money. Mobile advertising wasn’t a big market 10 years ago – in fact, it is still somewhat small today. But Facebook has two key advantages now: first, they have more than one billion users so they don’t have to recruit (and many of my friends will already have the app on their phone). Second, they don’t have pressure to make money near term. Facebook will win if even 5% or 10% of their members adopt.
Google acquired Nest for billions, and then Facebook spent several more billion on Oculus VR. We’re only a few months into 2014, and already billions have been spent by some of the world’s largest digital players, with each of these companies eager to own the next big thing. Mobile is right here, right now, but everyone knows that very soon, there will be something else. But what else?
In the battle to find and claim the next device that everyone will want, these companies will soon realize that next big thing is not a thing at all: It’s your voice.
Voice control suffers from the same things plaguing augmented reality or virtual reality: It has been around for so long that we think we know what it is. Any fan of Star Trek: The Next Generation knows that voice control involves invoking an invisible computer with a command, “Computer,” followed by a query, “How many Klingons does it take to screw in a light bulb?” Maybe that’s a question you don’t want the answer to, but the computer — as voiced by Majel Barrett in the TV series — would know it.
It’s possibly a long history of popular depictions of voice control that made us collectively show so much enthusiasm for Siri when Apple first debuted it in 2011. It’s also partly to blame for why we quickly turned on Siri, declaring her soothing semi-robotic tones to be merely amusing at best or irrelevant at worst.
When Microsoft recently announced its long-rumored Cortana voice service for Windows Phone 8.1 as a catch-up to both Siri and Google Now’s own voice interface, the interest was modest, perhaps because if Siri hasn’t changed the way millions of Apple users use millions of Apple devices, how can Microsoft initiate a wave of behavior change when it has so few Windows Phone users?
In researching our recent report on Google Plus, I asked social listening and intelligence provider Converseon for some help. They agreed to review more than 2,500 direct user interactions with 20 leading brands on Facebook, Twitter, and Google Plus. (They tracked only direct user interactions, meaning posts directly onto brands' Facebook or Google Plus pages, comments on brands' Facebook or Google Plus posts, and @mentions of brands on Twitter. The brands were selected from among Interbrand's list of top global brands.) The goal? To determine whether those user interactions were mostly positive or mostly negative and to see whether the sentiment of user interactions varied by site.
In the end, that research didn't make it into the final report — but I thought you might like to see the data anyway, and the folks at Converseon agreed to let me share the results.
We expected there might be big differences in the tone of users' interactions with brands on each site. But it turns out about one-half of user interaction on each site was positive. And as for the question in the title of this blog post ("Do people complain more on Twitter or on Facebook?") — exactly one-fifth of user interaction on both Facebook and Twitter was negative.
Thanks again to Converseon for pulling this data and allowing us to share it here.
Recently the New York Times called Google Plus a ‘ghost town,’ and most marketers agree. I understand why. Even if you believe Google’s own user count (many don’t), Google Plus has only one-quarter as many global users as Facebook. Nielsen says that while Facebook users spend more than six hours per month on site, Plus users spend only seven minutes per month on site. Put simply, Google Plus isn’t the Facebook killer some hoped it would be.
But that doesn’t mean marketers should ignore Plus. Far from it: I believe every marketer should use Google Plus.
First, Google Plus has more users than you think. Yes, it pales in comparison to Facebook — but so do most other social sites. Rather than trust Google’s own user data, we decided to run our own survey. We asked more than 60,000 US online adults which social sites they used — and 22% told us they visited Google Plus each month. That’s the same number who told us they use Twitter, and more than told us they use LinkedIn, Pinterest, or Instagram. That means you can build a real follower base on Google Plus: On average, top brands have collected 90% as many fans on Plus as on Twitter. (In fact, the brands we studied have more followers on Google Plus than on YouTube, Pinterest and Instagram combined.)
Just four months later, the debate seems to be over. Is there any doubt now that Facebook has abandoned social marketing, and that its paid ad products aren’t delivering results for most marketers? Consider:
Marketers can now reach just 6% of their fans organically. When we published our research, some brands were surprised to find that Facebook only delivered posts to 16% of their fans. In December a leaked sales deck revealed that Facebook was telling marketers they should expect organic distribution of posts to decline further — but few could guess how far and how fast that distribution would fall. This month, Ogilvy released data showing that the brand pages they manage reach just 6% of fans. For pages with more than 500,000 fans, Ogilvy says reach stands at just 2%.
Facebook’s purchase of WhatsApp shows that the market for messaging is far from dead. But it’s just gotten worse for the telcos. We’ve already discussed the underlying reasons in a report — but the fact that Facebook put $19 billion on the table, of which $4 billion is in cash, for a global messaging service with 55 staff should scare telcos, with their millions of employees and high-cost structures. Over-the-top communications tools like WhatsApp, Line, KakaoTalk, WeChat, and Viber (which itself was bought a few days ago by Rakuten) have pushed telcos further and further away from any meaningful customer engagement.
To be sure, WhatsApp is about much more than instant messaging; it’s about content sharing — which is an emotional activity. Such emotional activities are critical to closer customer engagement. As the online giants use ever more granular user analytics to cement their position as marketing powerhouses, telcos’ hopes of developing new revenue streams from analyzing user behavior are slipping away faster and faster. This is what makes the deal so dangerous.
Of course, it’s tough to justify the deal simply on the basis of WhatsApp’s revenue model of $1 annual subscriptions. In my view, the deal is really about:
Bringing a major competitor into your family. Otherwise, someone else could have lured WhatsApp into theirs. The deal, which accounts for about 10% of Facebook’s market capitalization, could be seen therefore as an insurance cover.
If you work in social media, you've been hearing variations on a theme for the past week: Facebook is in trouble! It's lost young users! It's getting crushed by upstart social networks! Eighty percent of its users will disappear in the next few years!
But as was the case with Mark Twain, reports of Facebook's death are an exaggeration:
That Princeton report seriously misses the mark. Last week, two Princeton PhD students circulated a report predicting Facebook would lose 80% of its users by 2017. They used epidemiological models to predict that, like MySpace before it, both the rise and fall of Facebook would look like the spread of a virus. But the research wasn’t peer-reviewed, and wasn’t published in any journal, and you can perhaps see why. Facebook itself did a pretty good job of pointing out the limitations of the researchers’ methodology. And I see another problem with this study: The MySpace ‘virus’ hardly mutated in all the years it infected the world, but the Facebook ‘virus’ mutates frequently. One of Facebook’s greatest strengths is its practice of regularly adding new features and functionality to its site; this both ensures it infects new users and also makes sure existing users don’t become immune to its charms.
This week, Facebook announced its rollout of auto-play advertising videos – starting with a teaser for the upcoming movie Divergent. The video ads automatically start playing, without sound, when they appear. Users can click on the video to view it with sound or scroll past it if they aren't interested.
Video definitely has the future. In a blog post by my colleague Michael O’Grady last year, he revealed that video was the fastest-growing digital content category. The Forrester Research Online Display Advertising Forecast, 2013 To 2018 (Western Europe) shows that European Internet users spent 68% of their online time in 2012 watching online videos, and we expect more than 90% of the online population to watch online video regularly by 2017. As a result, video advertising will account for a third of total display advertising spend in 2018.
How much stuff do you own? The answer for most people ranges from a few changes of clothing to a large house full of possessions – your material self. It turns out that most of us also have a digital self – the information and items we create or that others collect about us. It is your footprint, your impact on the digital world. Without a digital self, you don’t exist in the world of computers and the Internet.
The era of Internet has spawned riotous new forms of business disruption as cheap tools and services combined with Internet reach and social media have empowered anyone on the planet to compete with the largest, most established businesses. James McQuivey’s reports and book on digital disruption highlight the fast rise of new hardware devices such as Microsoft’s Kinect and Apple’s iPad, and the fast mainstreaming of new Internet services such as Dropbox, Twitter, and Facebook. Companies in the business of retail, books, movies, and music have been toppled or transformed, with more to come.
Our recent report on why Facebook is failing marketers has caused quite a bit of conversation — with some supporting our findings and others disputing them — and we think that’s healthy. We fully stand behind our data and our conclusions, and we welcome the chance to further discuss what’s working and what’s not working in social media. Conversations like these can only push the industry forward and help all social marketers and sites become more successful.
In particular, we wanted to address a few common questions people are asking about our research:
Facebook’s score didn’t look that low. Are they really failing marketers? Facebook offers marketers access to the largest audience in media history and it knows a remarkable amount about each of its users and their affinities. By all rights, Facebook should be driving significantly more value for marketers than other sites and channels — but according to our survey, they’re not. Forrester’s Data Center of Excellence has looked at this data many different times, through many different lenses, and every view of the data supports this conclusion.