Is Trouble Looming for Facebook?
July 4, 2012
The Next Web recently reported on a recent decline in Facebook unique users in the article “Comscore: Facebook’s Uniques in the United States Are Slipping.”
According to the article, comScore, Inc. found that Facebook is shedding unique users in the United States and this could easily snowball into a huge revenue loss for the social network. Between the months of March and May, unique users went from 158.93 million to 158.01 million.
Even though the decline is less than 1%, those looking to invest in Facebook are expecting it rapid growth, rather than slight declines.
The article states:
“The company has had a very rough time since its initial public offering, slipping in market value, with some calling its flotation scandalous for one reason or another. Facebook has been battered with negative opinion pieces in force since then. However, recently, the company found a new floor in the market, and is currently valued at roughly $68 billion.
Perhaps the largest threat to Facebook is if its users lose attraction with the site, heading elsewhere for their interactions. If that happens, Facebook will command fewer eyeballs, and thus, fewer dollars.”
It is difficult to determine whether or not Facebook has staying power or if it will just become another myspace. In my opinion, it has done an excellent job of continuing to evolve with the onslaught of mobile technology and will most likely continue to do so in the future.
Jasmine Ashton, July 4, 2012
Sponsored by IKANOW
Sponsored Content: Facebook Hits a Snag
June 22, 2012
The SEO (search engine optimization) crowd thought it had a winner with sponsored content. Pay Facebook money. Crank out some verbiage. Watch those clicks come tumbling along. What seems to be tumbling are Facebook ad opportunities. “Problems for Monetization: Lawsuit Forces Facebook to Let You Opt Out of Sponsored Story Ads” suggests a “stumbling block.” Was Facebook assuming that its “members” would ingest advertising as news without complaint? Personally I enjoy advertising centric editorial content. I used to work at a newspaper and then a big magazine company. The advertorials were often labeled. Sure, tiny type was used, but if you looked, you would see the words “Sponsored by…” or “A message from …” or a similar statement. I flipped through a slick travel magazine in the doctor’s office and it looked to me as if most of the editorial content was sponsored. But I may be overly sensitive.
Here’s the passage I noted:
For those less familiar with Sponsored Stories, when a Facebook user interacts with a business, such as by Liking a Page or Page’s post, using an application, or checking in to a physical business, that business can pay to have the news feed story that could normally appear be shown more prominently or frequently in the web and mobile news feed, or in the ads sidebar to friends. Because they seem like organic content, and feature the faces and names of friends as an automatic trusted referral, they’re clicked more often and are more influential on viewers than traditional ads.
Even the lingo is from the Land of SEO. Example: “Organic” just like beets and carrots from the farmer down the road here in Kentucky.
An alleged advertorial. Source: http://pdfcast.org/pdf/writing-sample-advertorial
Sponsored content is a very big deal. The reason is that consumers tune out ads. Do you remember the commercials which run in motion picture theaters before the show starts. I don’t. I play with one of my electronic distraction devices. On a desktop computer’s big screen, there is enough real estate to stuff a range of ads to lure the surfer. On a mobile device, the ads are really annoying. So how does one pump up the click throughs? Easy. Sponsored content that is shaped information.
Shaped information is tough for some people to identify. To get a sense of the challenge, check out A 50 Year History of Disinformation by Peter Viemeister. As a result, the content is consumed and according to information in the article cited above, performs “much better than traditional ads.”
What’s the fix?
Some are harsh. Facebook users can elect to turn off the ads. Yikes, bummer. Others can be sidestepped such as a provision to have users under 18 “represent they have received parental consent.”
Here at Beyond Search we label sponsored content, which generates questions. People reading Beyond Search wonder why a company like Polyspot would sponsor a story about search. Well, Polyspot is in the search business and we are covering topics germane to Polyspot’s interests. No big surprise.
Facebook Adds Customized User Controls. Who Has Time?
June 17, 2012
Facebook has seen quite a bit of limelight this month. Their IPO has garnered much media attention. Perhaps this is why their newest feature had a quiet introduction. “Facebook Tweaks Notifications to Help You Silence Annoying Applications, Updates” describes the new controls users have over the flow of updates into the notification box.
When a user sees a new notification, a small “X” icon also appears in the right hand corner of the notification. After they delete the newest notification from that application they will have the chance to click “Turn Off” to stop all notifications for that particular application, event or comment thread.
According to the article:
“This is especially helpful for gaming applications like Farmville that spam updates into the notification feed or updates from events that you didn’t attend, but neglected to decline the invitation. Users that don’t want to contribute to a long string of comments can avoid getting updates about new additions to the conversation. Users that spam groups with pointless updates can be silenced immediately.”
This addition to Facebook settings embedded into the homepage is sure to gain positive comments. In light of Facebook’s IPO especially, perhaps all the company needs is a little lipstick.
Megan Feil, June 17, 2012
Sponsored by PolySpot
Poll Questions the Facebook Staying Power
June 15, 2012
Nearly a decade after Facebook’s inception, skeptics remain critical of the social media tycoon’s ability to stay current as technology continues to rapidly progress. ComputerWorld recently reported on the results of a May survey regarding the way Americans feel about the staying power of the social networking site in, “U.S Facebook Users Skeptical of Site’s Privacy, Longevity.”
According to the article, a recent poll surveying 1,004 U.S adults found that Americans a split in their opinions regarding whether or not Facebook is a passing trend. Over 50% of survey respondents lack faith in the social network, but 43% believe it is here to stay. One of the naysayers primary concerns is regarding Facebook’s willingness and ability to keep their personal information private.
When breaking down the numbers, the article stated:
“Three of every five Facebook users say they have little or no faith that the social network will keep their personal information private. Only 13% trust Facebook to protect their information, and only 12% would feel safe making purchases through the site. The AP noted that half of those who use the site daily — Facebook’s most loyal users — say they would not feel safe making a purchase on the network.”
Despite the fact that many people believe that Facebook is overvalued, there are just as many people out there who use find its value to be right on track. I guess only time will tell.
Jasmine Ashton, June 15, 2012
Sponsored by PolySpot
Facebook Preferences to Advertisers
June 13, 2012
Wired gives us the inside scoop on “How Facebook Knows What You Really Like.” It all hinges on Open Graph, a system that expands Facebook‘s famous connections mapping technology to its commercial partners. The initiative is an addition to the Facebook Platform, the toolset that lets outside companies develop applications that link into the social network. Targeted marketing at its tightest. The article explains:
“In the case of Open Graph, the task is to weed through the mountains of data streaming from outside operations and serve up only the stuff that’s most relevant. The system works in two stages. First, it seeks to determine how interesting a certain type data would be to Facebook’s audience as a whole. Then, using this global rating as a starting point, it tries to determine how important the data is to you in particular.”
So, because I have shown an interest in technology, music, and travel, those are the kinds of adds I see in my feed. The software that keeps track of what we like, called Scribe, is designed to log large amount of data in realtime; another program analyzes that data to determine big-picture trends. About a billion clicks are processed per hour.
Wired’s Cade Metz theorizes that the Open Graph model, though designed around Facebook, could become a standard for other Web services. Perhaps, some day. For the moment, though, companies who have plugged in to the system report huge leaps in Facebook-supplied traffic. It’s good to know their investment is paying off.
What about the users? I, for one, am happy to see adds for (mostly) things I’m actually interested in alongside my newsfeed. Yes, data harvesting bothers many, but those folks shouldn’t be on Facebook anyway. We all go into it knowing the company is just using us to feed its advertisers. Right?
Cynthia Murrell,June 13, 2012
Sponsored by PolySpot
Facebook and Search: A New Google Rival
June 7, 2012
Facebook is making plans to improve its search engine so users can more easily find shared or liked content. The current flawed search system needs a revamp, but a new survey reveals that almost half of respondents disliked the idea of Facebook launching its own search engine.
The article, “A Facebook Search Engine to Rival Google? Users Dislike That Idea,” tells us that even though Facebook could potentially capture 22 percent of the global search market, but the public isn’t exactly receptive at the moment. Forty-eight percent of respondents to the recent survey by Greenlight spoke up and said they would not, or probably would not, be interested in a Facebook search engine.
“Still, Greenlight says if Facebook launches its own search engine, it could potentially grab 22 percent of the global search market share and become the second most used search engine in every major market except for China, Japan, and Russia, where it would rank third.
‘It wouldn’t need to be a spectacular engine either, just well integrated into the Facebook experience and generally competent,’ said Greenlight Chief Operating Officer Andreas Pouros.”
However, Facebook isn’t currently interested in crawling and indexing the entire web. The company just wants content on the site that is shared by users to be more easily accessible. Regardless, Google’s 66.5 percent market share in the U.S. is quite intimidating and possibly the reason behind Facebook’s reluctance to join in the search engine war.
Andrea Hayden, June 7, 2012
Sponsored by PolySpot
Facebook: Fad or Future?
May 28, 2012
It looks like Computerworld is buys into the Facebook-as-a-fad thing with their piece, “U.S. Facebook Users Skeptical of Site’s Privacy, Longevity.” The privacy thing I can see; I approach posting anything on Facebook as if I were shouting in the middle of a crowded square surrounded by cameras. But Facebook on the way out? I don’t think so.
This latest kerfuffle, timed interestingly so close to Facebook’s much-discussed IPO, was spawned by a poll by the Associated Press and CNBC which found half of Americans think the site is a fad, though 43% see it a more of a fixture. My money (metaphorically) is with that 43%. Keep in mind that there’s still a chunk of the American public that isn’t even comfortable with computers yet. I’d bet a number of older folks think Facebook is a passing fancy because, to them, it’s still one of those new-fangled techy thingies that could never last.
Regarding that privacy issue, even dedicated Facebook users seem to realize they should not be shouting out their credit card numbers in that crowded, camera-encircled square. The article tells us:
“According to the survey, which sampled 1,004 U.S. adults earlier this month, three of every five Facebook users say they have little or no faith that the social network will keep their personal information private. Only 13% trust Facebook to protect their information, and only 12% would feel safe making purchases through the site.
“The AP noted that half of those who use the site daily — Facebook’s most loyal users — say they would not feel safe making a purchase on the network.”
No, Facebook is not a haven of confidentiality, but it was never meant to be. Users who understand that do just fine. As for staying power, the company is nothing if not innovative and responsive to change. We shouldn’t be so quick to count it out.
Cynthia Murrell, May 28, 2012
Sponsored by PolySpot
What Differentiates Facebook from Google and HP?
May 25, 2012
It would seem to state the obvious to say that Facebook is different from Google and HP. Just how it stands apart could be more interesting, though, particularly from the viewpoint of the social giant’s own fearless leader. ZDNet reports, “Mark Zuckerberg on How Facebook is Different from Google, HP.”
Going public can have a way of changing a company; suddenly, shareholders must be placated, and it can easily become all about short-term profits. Zuckerberg insists, however, that his company will forever be all about “the social mission,” as writer Emil Protalinski put it. Recently, Zuckerberg emphasized this priority in a comparison with two of Facebook’s biggest competitors:
“I think the biggest difference between Facebook and other companies is how focused we are on our mission … Different companies care about different things. There are companies that care about, just really care about having the biggest market cap. Or there are companies that are really into process or the way they do things. Hewlett Packard, right? The thing that you always hear about them is ‘the HP Way.’ … Google, I think, is very tied to their culture — they really love that. For us, it is the mission: building a company that makes the world more open and connected. The articulation of that has, I think, changed over time. But that’s really been, like, the belief the whole time.”
Will investors appreciate the boy genius’ attitude? Some have already expressed disappointment in his wardrobe. Protalinski points out that anyone investing in Facebook is ultimately investing in Zuckerberg and his vision; stockholders would do well to give the man room to keep doing what he does. Comfortably dressed, even.
Cynthia Murrell, May 25, 2012
Sponsored by PolySpot
Wolff Howls, The Facebook Is Failing
May 24, 2012
I read “The Facebook Fallacy.” The point of the write up is that online advertising is doomed. Upbeat. Clever. And it certainly seems to be spot on in the wake of the slow sinking of Facebook shares.
Mr. Wolff asserts:
I don’t know anyone in the ad-Web business who isn’t engaged in a relentless, demoralizing, no-exit operation to realign costs with falling per-user revenues, or who isn’t manically inflating traffic to compensate for ever-lower per-user value.
I quite like the word “humper”. It adds some interesting connotations to the person engaged in selling advertising. What does “humper” call to your mind? Keep your thoughts to yourself; otherwise, an online advertiser may insert an advertisement into your once-private life.
The killer sentence in the write up, in my opinion, was this one:
The growth of its user base and its ever-expanding page views means an almost infinite inventory to sell. But the expanding supply, together with an equivocal demand, means ever-lowering costs. The math is sickeningly inevitable. Absent an earth-shaking idea, Facebook will look forward to slowing or declining growth in a tapped-out market, and ever-falling ad rates, both on the Web and (especially) in mobile. Facebook isn’t Google; it’s Yahoo or AOL.
I put the juicy bit in bold. I enjoyed the poignant reference to the value of a New York Times online subscriber, but let’s think a moment about the reality of Facebook.
First, the social trend does not have much impact on me. But for some, Facebook is a must-have application or service. However, Facebook is oozing forward. The company is likely to undergo changes. My view is that the changes will be slow, so the demise of the Facebook blob will take some time.
Second, the problem online advertising faces is in some ways similar to the problem traditional advertising faces. Audiences phase change without warning. The truisms which allowed my account representative from Ketchum McLeod & Grove don’t work too well in today’s wonky business climate. In the absence of proven methods for making sales, there is a desperation marketing phenomenon which I find interesting. Nothing much works, and I don’t think Facebook will crack the code. However, there are enough PT Barnum opportunities to keep the business afloat for a while.
Third, the present financial climate jeopardizes Facebook and a number of other businesses. I am far more concerned about the social consequences of cutting the financial lifelines to those who depend on government largesse to survive. One can advertise and market like the Dickens. If potential customers don’t buy, there is a larger problem.
I don’t have a horse in this race. I don’t care what happens to Facebook or any of the Web outfits. I am reluctant to cry “wolff”.
Stephen E Arnold, May 24, 2012
Sponsored by Polyspot
Facebook Monetization Speculation
May 24, 2012
“It’s free and always will be.” CNet News’ Chris Matyszczyk speculates that Facebook may have to break its famous vow in “Why Facebook May Soon Cost You Money.” Extrapolating from a New Zealand test run of a program that would boost visibility of your status updates for a fee, Matyszczyk sees more charges in the future for Facebook users. He also suspects this may ultimately (ironically) give users more power. He writes:
“This week’s New Zealand experiment comes from the same helpful impulse that spawned fees for your first checked bag at the airport. “In other words, now that we’ve got you, give us something. Of course, one of the difficulties if Facebook succeeds in charging customers for, say, actually having people seeing their updates, is the possibility that its relationship with its users will change. “Currently, Facebook can switch its privacy rules and drag you along because you are aren’t a paying customer. “But once you are, mightn’t people begin to take on a different attitude? A paying customer might expect a higher level of service, of feedback — and, yes, of privacy.”
That is a good point. Certainly Facebook isn’t eager to hand users any control over the site.
I’m sure they aren’t eager to break their promise to always be free, either. After all, that vow is posted prominently on Facebook’s sign in/sign up page, and has always been integral to the company’s philosophy. On the other hand, charging piecemeal for perks (a.k.a. improvements) won’t technically violate their word, and may just help keep those shareholders happy.
Cynthia Murrell, May 24, 2012
Sponsored by PolySpot
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