Tag Archive for 'Facebook'

Is the future of social commerce on Facebook?

Facebook’s explosive growth has led many to question whether it will become the de facto hub of commerce for retailers. Facebook Commerce is alluring because it enables companies to harness social capital, and retailers are eager to tap into the tremendous word-of-mouth potential of fans liking products, making purchases, and sharing with friends.

Social media strategists often tell their clients to “fish where the fish are,” but while Facebook storefronts can be effective to facilitate impulse purchases, are they the right long-term strategy to grow sales through social media? Perhaps not.

Facebook Insights does provide valuable data on interactions and soft metrics such as impressions, likes and comments. While these are great for measuring engagement, retailers must ultimately make decisions based on factors that directly influence transactional metrics like conversions or acquisition costs, and Facebook’s analytics engine does not yet provide the level of relevant data required for effective merchandising [Read more].

Are Google and Facebook splintering the social web?

Facebook is in the process of rolling out a sweeping series of changes to the way users can control their profiles and content-sharing on the massive social network. Among other things, the changes allow users to selectively share status updates or content with certain groups of friends, just as Google+ introduced the idea of Circles, which allow users of that network to segregate the people they follow into specific groups. These kinds of features are seen by many as a positive step for privacy — but will they make people less likely to share what they are doing with the public at large? And how will that affect the social web [Source]?

Facebook reportedly partnering with Spotify for music service

Facebook plans to launch a new music-streaming service powered by Spotify in as little as two weeks, according a report by Forbes. The partnership will only be in countries that already have a Spotify presence, which excludes the U.S.

When launched, Facebook users in Spotify-enabled countries–such as Sweden, France, and the U.K.–will see a Spotify icon appear on the left side of their newsfeeds. Users that click on the Spotify icon will first install the service on the desktop and then allow users to stream millions of songs for free through Facebook.

Another interesting aspect of the service is the ability to let a user and his or her Facebook friends listen to music at the same time. It could be pretty neat to listen to new music and talk about it in real-time with multiple friends in one online spot [Source].

Facebook Credits: Virtual Goods Are Just the Beginning

Facebook is ready to go big with its Facebook Credits virtual currency: the company announced that all developers will have to use the credits in their apps starting July 1st. The move takes Facebook Credits out of beta and will make it the main payment system for all apps, with Facebook getting a 30 percent cut of the action [Source].

But the transition to Facebook Credits is not just about Facebook getting a cut of Farmville virtual transactions. This is about Facebook ultimately starting its own online payment system that could be used to buy a lot of different goods and stretch beyond the boundaries of the social network [Source].

Facebook has the opportunity to drive a lot of payments through its Credits, not just virtual currencies. As businesses set-up shop on Facebook, the social network could use its payment system as the preferred system for buying goods, movie tickets or digital content. In addition to advertising, this could be the big play for Facebook as it looks to grow its revenues.

Facebook’s Platform will Rule them All

“Email–I can’t imagine life without it–is probably going away,” said Facebook COO Sheryl Sandberg in June, citing how only 11% of teens use email daily.

That’s the same story parroted Monday by Sandberg’s boss, Facebook CEO Mark Zuckerberg, who introduced the company’s new messaging service by suggesting a generational shift away from email.

Based on Sandberg’s and Zuckerberg’s comments, it’s no surprise the blogosphere proclaimed the social network’s new service a “Gmail killer.” But that’s entirely the wrong term to be using. For starters, Gmail isn’t that big a deal. It has only a 15% market share. Hotmail has double and Yahoo triple that userbase. Facebook isn’t interested in killing off any of them as a messaging platform–its goal is to rise above them all, contain them all, and thereby rule them all [Source].

Related stories:

  • Why Facebook Wants Your E-Mail [Click]
  • How Facebook plans to reinvent email and online messaging [Click]
  • How Facebook’s Messages System Helps It Win [Click]
  • Schimdt on Facebook Messages: Competition Is Good [Click]

Web Browsing is turning into Social Browsing

In a recent study of 21-29 year old females, there was a surprising number spending as many as five hours per day on Facebook, with much of that activity being what the respondents nearly all called “nosing around” (called “social browsing”).

This largely consists of seeing what your friends are or were up to: Reading status updates, clicking and watching video links, shuffling through photos of friends’ nights out and comparing those nights to ones own.

To people familiar with Facebook, this behaviour, of course, is not unexpected. But what there can be found most interesting about it was that, for this group, social browsing had largely replaced all other forms of web browsing.

What’s most important about this behaviour, from a brand marketing perspective at least, is that when many of these women needed to look something up—information on a venue, or a band, or a consumer brand—they were more likely to look first for information on the site where they were already spending all their time: Facebook.

What does this kind of behavior mean for online marketers? Well, for starters, brands primarily interested in targeting a younger, female demographic should focus on building brand Facebook pages at least as comprehensive as their brand websites [Source].

US$250 Million sFund

Companies developing social-media applications for Facebook have a new place to look to for funding: one of Silicon Valley’s most powerful venture-capital firms: Kleiner Perkins is teaming with social and traditional media companies to back a $250 million fund aimed at fostering social-technology innovation.

The firm, Kleiner Perkins Caufield & Byers, announced it was creating an “sFund” devoted to putting money on the table for companies developing social-media applications—particularly those that could be integrated with Facebook and the social network’s 500 million users [Source 1] [Source 2] [Source 3].

“Think of it as a quarter-billion-dollar party,” said John Doerr, a partner at Kleiner Perkins. He called social media the next great wave of disruptive technology to come from Silicon Valley, after the development of personal computing and then the Web browser. Doerr, one of the most important venture capitalists and thinkers on the Silicon Valley scene.

Facebook Unveils a Location-Based Service

2010 is the year of location–at least in blogs focused on social networking, which is a Montana-sized “at least”–and Facebook’s entry into the increasingly crowded field has long been expected. Today, the company officially announced its plans, by the name of Facebook Places.

Facebook’s Places borrows heavily from location-based social networks like Foursquare and Gowalla, which allow users to check in at places and broadcast their location to friends. But those companies, as well as others like Yelp, said they saw Facebook’s Places as a complement to their own services and as an opportunity to gain additional distribution.

Facebook is Pushing a Platform Strategy

Facebook is going to go beyond rolling out standalone applications for iPhones, Google Android devices or feature phones and start considering itself a platform for developers to distribute mobile apps with.

“Where we’re going from here is a platform strategy. We’re going away from a one-off app strategy,” said Erick Tseng in his first public appearance since joining Facebook as head of mobile products. Speaking at VentureBeat’s MobileBeat conference today, he said the company will start building out this effort over the next several months [Source].

Best Young Tech Entrepreneurs 2010

Software upstarts such as Playdom, Posterous, and Foursquare capitalize on Web users’ desire to make social networks more useful and fun.

Bloomberg BusinessWeek’s have surveyed the tech sector to identify a fresh crop of the most promising technology startups and the young people, age 30 and under, who are steering them. Seven of the 13 startups on this year’s list are building Web and mobile-device software that extend the capabilities of social networks, including Facebook and Twitter.

It’s not surprising that many startups want to ride the coattails of popular social networks. The rapid ascent of traffic to social networking sites can draw lots of attention for startups that offer new tools or diversions to their members. “Facebook and Twitter have become platforms in the same way Microsoft’s Windows became a platform 20 years ago. The complete special report can be found here.