Posts tagged facebook
Why Facebook will become the most dangerous company on earth
Apr 10th
Within the next 60 days, an event will occur that may be the most devastating development in the young history of social media and for the businesses and individuals who love it so much.
Facebook is going to become a publicly-traded company.
If you have ever worked for a public company you can relate to what I am about to say. If you haven’t you’ll have to trust me.
The pressure of “public”
The entire tone of Facebook and its strategy is about to change in ways that I believe could portend desperation and disaster. Instead of managing for a long-term vision, becoming a public company creates an inexorable and relentless pressure to meet quarterly sales goals. If you have ever been an executive in a publicy-traded company, other than hearing “A crew from 60 Minutes is at the door,” there is probably no greater pressure in business than the demand to grow, grow, grow the revenues — To “beat the street,” without exception, without fail.
Maybe it will will take a few months, maybe it will take a year or more, but inevitably the marching orders of Facebook executives will be determined by this constant drumbeat of “more, higher, faster.”
Now, what is the source of Facebook’s growing revenues? You and me.
Virtually the entire economic model of Facebook is based on a single tactic — collect as much personal information about you as possible as a way to sell highly-targeted ads. So for Facebook to succeed, it simply must collect increasing amounts of information about you. More information = more ad revenues. Pretty simple.
Through this lens, we can now view Facebook’s new Timeline innovation as a clever move. The company encourages us to post and share everything about our lives, which will lead to more advertising opportunities. And, you can be assured that every new feature and innovation will be aimed at two things: 1) collect more information and 2) create “stickiness” so you spend more time on the site (to share information and view ads).
Is this sustainable?
So we have to consider — Is this relentless collection of information and selling of ads sustainable in a way that meets Wall Street’s expectations for continuous and aggressive growth?
At least in the near term, Facebook’s prospects seem bright. They are just starting to mine Timeline information. The possibility of organic growth in new countries like China present vast opportunities for data collection and advertising.
But will we reach a saturation point where it becomes impossible for Facebook to squeeze any more information from us? Will we reach a day when Facebook’s insatiable need for data becomes annoying and invasive? Is there a theoretical limit to information gathering? Is there an upper limit to the amount of time people will spend on Facebook?
The other collision point is that the advertising model is in transition. Smartphones are already the first screen of Internet access for 28 percent of Americans and in some parts of the world (like the Middle East), it is already over 50 percent. Compare how many ads you see displayed on your computer versus the smartphone version of Facebook and you will begin to see the crunch Facebook will be facing.
Google, which went public in 2004, faces exactly the same problem of course and I think the pressure is starting to show. I found it extremely odd when the company (who professes to never be “evil”) knowingly took a detour around anti-ad-tracking features on Apple’s iPhone to spy on our private information. They stopped the practice only after being caught by the Wall Street Journal. Apple vowed to stop the Google’s shady practices.
Why would Google do something this stupid? Well, by now you already know the answer — as a public company, Google is under incredible pressure to collect our private information to sell ads.
Similarly, executive bonuses are tied to the success of Google +. What kind of behavior will this drive at the company, when vast personal fortunes are at stake … and the platform increasingly appears to be a ghost town?
What will be the answer to the pressure for growth?
This is a glimpse of what we will one day see from Facebook, too. Undoubtedly they will look for adjacencies and new sources of revenue but nothing in the foreseeable future will come close to making a dent in their reliance on ad revenues.
At some point, Facebook will be faced with a reality — the well of personal information will be tapped dry. The opportunity to create advertising impressions will slow. Mark Zuckerberg will face unimaginable pressure from Wall Street and his shareholders. His company will have to find new ways to turn their vast resource — our personal information — into new sources of profits.
And at that point, Facebook will become the most dangerous company on earth.
How does this perspective land on you?
How will you be remembered on Facebook?
Feb 12th
Here’s a wonderful guest post from {grow} community member John White — one of my favorite writers on the web!
“Daddy, tell me about Grandpa.”
“I’m reading the paper right now, Johnny. Go look him up on Facebook.”
How long do you think it will be before conversations like that start taking place?
- 2020
- 2050
- 2100
- Never
If you answered #4, you’d better think about it again. Facebook is going to address a big inter-generational question that very few of us have ever been able to answer for our kids.
How will YOU be remembered?
Late in 2005, I started down the path of amateur genealogy with a sheaf of photocopies that my cousin’s mother-in-law had pulled together about our family. For much of the next four years, I sent away to churches, city halls, archives and other authorities around the country, trying to flesh out our family story for the last two or three generations. I pestered relatives near and far with phone calls and e-mail to harvest all their stories about where Uncle Hank spent World War II and who it really was that Grandma Catherine married.
One day, I was taking mental inventory of the heaps of steamship manifests, draft cards, social security index entries and death certificates scattered around my desk. It suddenly occurred to me that genealogy today focuses on satisfying Johnny’s curiosity about Grandpa and all the faithful departed by answering five tired questions:
- “Will you tell me a story about Grandpa?” Family lore is what Johnny wants to hear most. Everybody has at least some sliver of a memory of people from the previous generation, even it it’s as trivial as “I only saw your grandfather once, and he gave me a hug and a dollar.”
- “When was he born and when did he die?” Birth, marriage and death (not to mention divorce, nowadays) are the most important events for social order and line of succession, and their corresponding documents answer this question.
- “Where did he live?” This is a story you tell with county records, steamship manifests, census data and city directories. When you can show Johnny a map of the town in which Grandpa grew up, Grandpa is suddenly less imaginary.
- “What kinds of things did he have?” It’s gratifying for us and for Johnny to hand down an ancestor’s personal possession. When you give him the watch that belonged to Grandpa Benzino, you help him look back down the family tree toward his roots.
- “What did he look like?” We look for family photographs (and recorded audio/video) to keep our heritage intact and hand it down. You can always want more of these, but having a few pictures of Grandpa around the house helps keep him alive to us.
So, up to now, with the old, tired vehicles at our disposal, we’ve been genealogizing about those five old, tired questions, rarely answering a much more interesting question…
“What did Grandpa think?”
Maybe Grandpa kept a diary. Maybe you’re lucky, and he kept it on acid-free paper. Maybe you’re really lucky, and the silverfish haven’t devoured it, the Cossacks haven’t burned it and Grandma didn’t throw it away when she found Gloria Gooseby’s name in it. You can show it to Johnny – read it yourself first – and give him an idea of what Grandpa thought.
If you’re unlucky, then you have no real way of telling Johnny what Grandpa thought. Grandpa remains what most dead grandfathers are: a composite of exaggerated stories, dates on photocopies, old watches and yellowing photos.
Facebook is a new vehicle that will soon be able to answer a much more interesting question.
A generation or two from now, Facebook will be able to tell people what Grandpa thought. Your kids will be able to show your grandchildren your profile when they ask about you.
You’re already recording family history on Facebook
You’re putting up photos and content about yourself and your kids right now. If Facebook is around long enough, your kids will post comments and photos of their kids. The rich media that we preserve today will overtake the steamship manifests, birth certificates and draft notices that are the stuff of today’s family stories.
What’s more, your posts, groups, connections, comments and interests will be up there. Your grandchildren will have perspectives on your life that today’s genealogists can only dream of conveying. Instead of behaving yourself on Facebook because potential employers, spouses and the IRS can read about you there, maybe you’ll behave yourself because your grandchildren will be able to read about you there.
Mind you, not all researchers think Facebook has much of a role to play in genealogy, mostly because Facebook is evolving so quickly. And Facebook has been protecting its family history turf, mostly in the name of sticking up for its app developers. Still, the Library of Congress is already archiving all tweets since 2006, and Facebook will come up with a similar long-run play eventually. As long as Facebook is taking a swing at LinkedIn, it will almost certainly take one at genealogy as well.
“Wow. Grandpa rocked.”
Instead of saying, “Gee, Grandpa’s birth certificate shows he was only five and a half pounds,” your grandkids will say: “Look at this comment and photo Grandpa posted the day Mom was born. He was really funny.”
Instead of saying, “My grandpa was awarded a medal when he was in the army and he gave it to me,” they’ll say, “Here’s a video Grandpa posted just before he came home from the army. He lost three buddies in a year and was sick about it.”
Let me know in the comments what role you think Facebook will play in telling your family’s story someday. Meanwhile, get ready to put down the paper and show Johnny how Grandpa rocked.
John White of venTAJA Marketing is a marketing communications writer for technology companies. He posts about technology writing from the perspective of the marketing manager. It’s dirty work, but somebody has to do it. Download his eBook, “10 Questions to Ask When Hiring Your Marketing Communications Writer.”
The power shift on the social web: What does it mean to you?
May 4th
Remember when we used to say that “people” are the power behind the social web? Can we can honestly claim that any more? The social web has rapidly become just another a mass-marketing channel like TV or magazines, dominated by the mega-brands.
Think about the videos going viral these days. What was the biggest hit of the year? The Nike Tiger ad, a bizarre production certainly aimed at the viral potential of the Internet more than any paid TV opportunity. In fact eight of the top 10 most-viewed You Tube videos of 2009 were professionally-produced:
- Evian roller babies (see above to view)
- New Moon movie trailer
- Wedding entrance dance
- David after dentist
- Britain’s Got Talent – Susan Boyle
- through 10 – professional music videos
And all of the Top 10 Facebook pages belong to big names:
- Texas Hold ‘em Poker
- Mafia Wars
- Michael Jackson
- Barack Obama
- Vin Diesel (Vin Diesel???)
- Starbucks
- Lady Gaga
- Twilight
- Coca-Cola
- Skittles
Remember that just a few years ago, there were few, if any, corporate videos on YouTube and Facebook was a hang-out for college students. This commerical development is not surprising. If there is a way for money to be made, companies will find a way to exploit it. Capitalism at work. So what are the implications for small businesses trying to carve a niche? Is it too crowded? Is it too late?
No, I don’t think so. There are plenty of social media marketing opportunities for the savvy small business professional, even with the brand titans bringing their game:
Think local. All marketing is local. Can your small business still have an impact on the social web? Absolutely. I’m working with a marketing manager for a very successful regional chain of restaurants. One restaurant already has 5,000 Facebook fans. I think that’s pretty impressive. If you’re providing meaningful connections with your local crowd of customers, who cares if Evian babies rule the web?
Raising the bar. Not long ago, grainy home videos dominated YouTube. Just about anybody, at any time, had a chance of going viral. The novelty of the social web has passed and expectations for quality are increasing. If you hope to compete for attention on the national or international level, bring lots of money. But I believe that even on a local level the bar has been raised and there is an increasing expectation for quality … maybe not along the lines of the Evian babies, but an expectation for something entertaining nonetheless. To stand out, you’re going to have to provide remarkable content.
Importance of Twitter. Twitter isn’t flashy. It rewards real connection and conversation, something monolithic companies typically don’t do well. I have a small business but have more followers than Pringles (one of 2009′s Top 10 Facebook pages). I think there’s a message there. My hypothesis: Of the major platforms, Twitter may actually favor the local small business owner. How can you leverage this powerful tool on a local level?
Keeping it real. Unless you are going to simply “buy” fans with coupons and discounts, you need to let your personality shine through. Coca Cola, probably the best-known consumer product in the world, is doing a great job at this. They feature their Facebook personalities right on their front page and each tweet is attributed to an author. Of course Scott Monty is a recognizable social media personality for Ford Motor company. Still, these are exceptions among the big brands. Real people and small business owners can normally have an advantage connecting with their local clients.
Watch and learn. The big guys are spending millions to fine-tune their social web offerings. Learn from them. What are they doing to be successful and how can you capture that success on a local level? What methods are they using to engage and reward their customers? What channels do they employ and why? What devices like online games and contests could be used in your business?
While the future of mainstream social media ultimately belongs to the behemoths, I do believe there are opportunities for small business success. Do you agree?








You’re in marketing for one reason: Grow.
Grow your company, reputation, customers, impact, profits. Grow yourself. This is a community that will help. It will stretch your mind, connect you to fascinating people, and provide some fun along the way. I am so glad you’re here.
-Mark Schaefer

