Facebook is white hot!

Posted on October 25, 2007 by marc meyer

If you haven’t already heard, Facebook has a valuation of $15 billion. That’s fifteen billllion dollars, I’m quoting Doctor Evil there. Why is it valued so high? Every day Facebook adds another 100,000 users. It has 35 million active users and underneath that it has over 6 million active user groups.

According to the WSJ, Facebook is going to make close to $30 million this year. More incredibly Facebook costs nothing to use. So this begs the question, how is it going to make 30 mill and why is it valued so high? The answers are traffic, data, and advertising. Similar to what Google has done with AdWords, Facebook has the built in luxury of 35 million users with deep data points to pitch. The other reason why the valuation is so high is that what makes Facebook so attractive is that the data is essentially user data.

Google Adwords relies on keyword contextual data but Facebook can get down and dirty. If it wants to go after sophomore high school students in Trenton, New Jersey, it can. Or lets say, college graduates from UCLA from 2004, that hail from Long Beach, it can do that too. It has the ability right now to target by age, gender and location. Eventually it will be able to automatically target its users based on the personal information that users have supplied.

What we don’t know is what the finished product of Facebook will eventually be. Mark Zuckerberg has stated that it could be 30 years before we finally see what the last iteration of Facebook could be, and that it could be very different from what it is now. It’s amazing that when he started Facebook, he was 19. His initial intent was to create a site that showed you who was in certain classes at Harvard, so that you could make a more than educated decision of what classes you wanted to take and with whom. Amazing how something that started out as a mere tool or app for a college campus has turned into a social networking phenomenon. It reminds me of Napster.

I’m sure what a lot of people are thinking, or rather a lot of marketing people are thinking, is how they can get in the slipstream of Facebook. What this means is, how can a marketer create a business that is a direct result of the creation of Facebook? Google has spawned the creation of 1000’s of companies that are around because of Google. I’m sure we can expect the same thing with Facebook.

What do you think will happen with Facebook? Are you a part of Facebook? Do you use it regularly? What will the landscape of social networks look like in 2 years?

Do social networks make us less social?

Posted on October 9, 2007 by marc meyer

So I use Facebook and Linkedin, and to a lesser degree even MySpace. I’ve even started to Twitter. I’ve connected with former Co-workers and even some classmates from high school and college. But now what? None of my former classmates from high school live in my town and so there won’t be any connection there. My college classmates have even splintered more. So now what? I made the effort to connect, so I guess now it’s time to network with strangers. How do I feel about this? My first inclination is, what do I hope to get out of it? I might as well cold call people and introduce myself and ask them if they want to be my friend. Well maybe that’s where the beauty of social networking kicks in. I can hide behind the screen and type away without really uttering a word. Pretty social huh?

I’m thinking that there are more people like me out there. We have been drawn to the light of the flame, or by others who have touted it as the NBG(next big thing) and once we got there, we’re like, “Ok, now what”? I don’t want to work “That” hard to connect with people that a) I barely remember b) I barely knew and c) I hardly liked. So what is there to do with my newfound social network?

I think what would be more fun is to have a site that does then and now pics. Now that would be social. We could sit around and do what everyone does at reunions. Whisper behind their backs about how fat and bald they all are, how messed up they are, how much they changed, etc etc. That’s social isn’t it? It’s also a form of networking.

Truthfully, I’m still trying to figure out what to do next. I suppose that I need to maybe elaborate more on my profiles and make them even more accessible than they already are. Which in reality, I’m not wild about, because I really don’t want my data passed around like a church collection plate. But I think I’m a little too far down that road. I suppose it does have networking possibilities, but that will have to be something that I continue to evaluate. To me, networking is of 2 forms: Can you help me get a job or Can I get some business out of you?

Now, I’m not saying that the social networks don’t work on certain levels, it’s just that it might work better on large scale enterprise lavels rather than former classmates and workmates trying to connect after x amount of years apart. In fact for high school and college and large organizations, social networks totally make sense. The question is do the social networks create online social clicks similar to what you might have offline? The data is still out but I would be curious to hear from someone who is knee deep in one to give us their impressions and feedback as to how it has affected them negatively or in a positive way. There has to be some twisted slant already brewing from the advent of these. We don’t need to address the stalkers, the lurkers, and the usual freaks that go to these. Don’t forget the internet is a reflection of our society. To that end, to bad we can’t be made aware of these people online. Picture some type of nondescript, dirty white conversion van as an icon or avatar. That would be sufficient warning.

The bottom line is social networks are here to stay. They just need to be more socially accepting to the average lay person who might not swim in the same circles as everyone else. But still would like to be accepted, would like to enjoy and utilize these networks to some degree. Sort of mirrors life doesn’t it?