Facebook: the “social media” revolutionA studyand analysisof the phenomenonParis, October3rd –Facebookstudy
,visit –Facebookstudy
SummaryFacebook:keyfactsandfiguresFacebookrevenuemodelMeasuringsocialmedia:2businesscasesUniversitystudents: exchange and collaborateBloggers: communicateand –Facebookstudy
SummaryFacebook:keyfactsandfiguresFacebookrevenuemodelMeasuringsocialmedia:2businesscasesUniversitystudents: exchange and collaborateBloggers: communicateand –Facebookstudy
HistoryInFebruary2004,FacebookwascreatedbyMarkZuckerberg(withDustinMoskovitz,ChrisHughesand2otherHarvardstudents)Initially,themembershipwasrestrictedtostudentsofHarvardUniversity,andsubsequentlyexpandedtootherUSandCanadiancollegesthentoEuropeanandAsiancolleges()SinceSeptember11,2006,ithasbeenavailableforanyemailaddressglobally,buttheinterfaceisinEnglishonlyOnMay24,2007,FacebooklaunchedtheFacebookPlatform(f8)whichprovidesaframeworkfordevelopers(anyone),with42millionactiveusers,FaceBookisthesecondlargestsocialnetworkingsitegloballyafterMySpaceSource: –Facebookstudy
Things you can do on FacebookKeepin touchwithyouroldfriendsand meetnew ones•Privateand public messaging options•Keeptabson whatyourfriendsdo via theirNews feed•Findformer schoolmatesusingthe searchfeature•User groups let youdiscusswithotherswhoshareyourinterestsKeeptheminformedabout whatyoudo•Update yourstatus•Shareyourpictures, blog messages and videos•Promoteeventsyouare organizingor planning to attendAccess a wealthof applications made for all purposes•Fun, interactive applications•Applications thatlet youpublishcontent (photos, videos, notes,…)•Applications linkedto otherplatforms(Flickr, Pownce, Twitter,…)Retainyourprivacy•Control whatstrangersand friendsmayseeand readabout –Facebookstudy
Explosive growth that accelerated in :thesecondlargestnetworkingsiteGrowth:270% sixth-mosttraffickedsite in the USWorldwide Growth of Selected Social Networking Sites Age : 15+Social Total Unique Visitors (000)Networking Jun-06Jun-07% ChangeSiteMyspace66,401114,147172%Facebook14,08352,167270%Hi518,09828,17456%Friendster14,91724,67565%Orkut13,58824,12078%6,69418,200172%Bebo1,50613,167774%TaggedSources: Facebook, ComScoreMedia Metrix, faberNovel –Facebookstudy
The evolution of the user base has been synonymous with an expanded range of usesAfavoriteamongstudents(85%marketshareof4-yearUSuniversities),buthalfofFacebookusersarenowoutsideofcollegeFastestgrowingdemographic:25-34yearsold(+181%betweenMay2006andMay2007)SincethelaunchoftheFacebookplatforminMay,almost4000applicationshavebeencreatedbythird-partydevelopersAge slice12-1718-2425-34May 35+2007Sources: Facebook, comScoreMedia Metrix, , –Facebookstudy
A feature of its users’ daily life•More thanhalfof active usersreturn daily•People spendan averageof 20 minutes on the site daily•More than6 million active user groups on the site•Over 55,000 regional, work-related, collegiateand highschoolnetworksActivityand loyaltyare twokeycharacteristicsof the FacebookcommunitySources: Facebook, comScoreMedia Metrix, –Facebookstudy
International growth at a frantic paceFacebookhasdevelopedastrongfollowinginEnglish-speakingcountriesA thirdof the Canadian population has joinedFacebookas of June2007, a growthof more than3,000% in a yearThe United Kingdomisthe thirdlargestcountry withmore than5 million active users, Londonbeingthe largestnetwork on Facebook(1,105,515 membersas of Sept. 11 2007)ThereisfarlessgrowthinEuropeandAsiaasthewebsiteisonlyavailableinEnglishToactagainstknock-offswhotookadvantageofFacebook’slackofinternationalcompatibility,amajorlocalizationinitiativewillbelaunchedsoon:thewebsitewillbetranslatedandthereforeaccessibletousersfromothercountriesTop to bottom: Facebook, Vkontakte(RU), Xiaonei(CHN)Sources: Facebook, comScoreMedia Metrix, –Facebookstudy
A closer look at the European situationFacebook’sgrowthinEuropemainlystemsfromtheUK’sdynamismFacebookhasnothadmuchsuccessinGermanytodateFacebookhasonlysecuredafootholdinFrancerecentlybuttheresultsareshowing42,000 membersin the France LeadingSocial Networking sites rankedby Europeanunique network in June2007, and visitorsmore than127,000 now(Sept. Total unique visitors (000)20th): a 300% growth!PropertyThis figure doesnot takeinto% OrigiJan 2007July 2007accountthe people thatdo not Changenjoinnetworks, or onlyjoinTotal Internet audience218,063224,7593%EUschoolor business ones: the ,34125,17624%USsite hadalmost260,000 unique visitorsin August 2007Skyrock Network11,32713,78522%FRObservations by media ,46112,10162%UKKR Media France show ,06610,795422%USthe numberof visitorskeptincreasingin the ,9799,55437%USsummermonths, hintingatan ,5578,0356%USexplosive growthwiththe ,1407,450-8%BELof the schoolyearSources: Facebook, comScoreMedia Metrix, faberNovelanalyses, KR Media France –Facebookstudy
A winning strategy : opening the platform to third-party developers Lessthanamonthafteritslaunch,theFacebookPlatformhadalreadyattractedmorethan40,000developers,andproducedmorethan1,,thetop44applicationsrepresentedalmost200millioninstallationsandhadatotalofmorethan16milliondailyactiveusers3,,2007,whileFacebookitselfonlyoffers13A‘longtaileffectappliestoapplications:thetoponesattractmillionsofusersbutthenumbersquicklydropforothersdownthelistAstrategywhichcompetitorswillhaveahardtimeimitatingbecauseofstructuraldifferences:afterthef8launch,LinkedInannounceditwouldopenitselftooutsidedevelopersbutthenecessaryadjusmentswouldtakeSources: Facebook, comscoreMedia Metrix, Adonomics, ninemonthsInsideFacebook, –Facebookstudy
Facebook applications are quickly replacing specialized websitesFacebookisthen°1photosharingapplicationontheWeb().ThePhotoapplicationdrawsmorethantwiceasmuchtrafficasthenextthreesitescombined(Photobucket,Yahoo!Photos,WebshotsCommunity…),displaythemontheirprofileandsendvideomessagesFacebook effectively provides a one-stop shop solution to its usersSources: Facebook, comscoreMedia Metrix, faberNovel –Facebookstudy
SummaryFacebook:keyfactsandfiguresFacebookrevenuemodelMeasuringsocialmedia:2businesscasesUniversitystudents: exchange and collaborateBloggers: communicateand –Facebookstudy
Key financialsFunding:Fall2004: $500,000 fromPeter Thiel(a co-founderof Paypal)May 2005: $13 million fromAccelPartnersApril 2006: $25 million fromGreylockPartners, AccelPartners, MeritechCapital Partnersand Peter ThielAccordingtotheWSJ(),Facebookisontrackfor$30millioninprofitthisyearon$150millioninrevenueRevenuemodel:Display ads: accountsfor mostof itscurrentrevenue throughan advertisingoutsourcing deal withMicrosoft (CPM 0,30 €)Sponsorship: the sponsorshipof groups seemsto bethe major potentialsource of future revenue ($300,000 for a 3 monthpresence, up 200% in June2007 vs. February2007), more than150 companiesare alreadypresentsuchas Nike, Victoria’sSecret, … Gifts: limitededitiongifts for sale ata lowprice($1)Valuation:Facebookturneddown a $1 billion purchaseofferfromYahoo! In 2006Microsoft isin talksto buya stakeof up to 5% in Facebookfor $300 million to $500 million: the companycouldthenbevaluedatmore than$10 billion (Sept. 25th 2007)Sources: Facebook, Wall Street Journal, , KR Media France, faberNovel –Facebookstudy
Advertising deal with Microsoft offers Facebook guaranteed (justbeforeFacebookbecameavailabletoallusers)ItaimsatcreatinganattractivecombinationforadvertisersFacebookletsMicrosoftprovidesearchandadvertisinglistingstoitsusersMicrosoft isable to post advertisingbannersand sponsoredlinks thatappearon the leftor the bottomof FacebookpagesFacebookcanbenefitfromthe Microsoft adCentersystem, whichallowsadvertisersto filtertheirtargetssothattheiradsare relevantClickthroughratesarelow:%onaverage(%)Apotentialproblemisthelackofrelevance:conflictsofimagearosewhenadsfromprominentBritishcompaniesappearedonthepagesoftheBritishNationalPartyAlocalizedsaleshousewouldmakeitfareasierforFrenchandEuropeanbrandstotuneintoFacebookadvertisingSources: Microsoft, Reachstudents, BBC, KR Media France, faberNovel –Facebookstudy
Facebook is offering new advertising productsFacebookFlyersHomepageSponsoredStoriesSponsoredGroupsAdvertisingsolutions tailoredfor all kindsof –Facebookstudy
A low-cost and direct advertising solution for users: Facebook flyersFlyersletusersmaketheirownadsonFacebookatlowpricesThepriceisbasedonhowmanytimestheFlyerisviewedFlyersaredisplayedontheleftsideofFacebookpages,withthepossibilityto:Choosetargetsby bothgenderand ageTarget specificcolleges, and go furtherby specifyingthe educationstatusdesired(undergrad, gradstudent, alumni)Select regionalnetworks youwantyourad to bedisplayedonFlyersPro,,offermoremoreoptions:Selectionmore precise(by location, sex, age, keywords, polticalviews, relationshipstatusand workplace)Specifyhow muchyouare willingto spendto advertise, by setting a maximum priceper click : the higherthe price, the higherthe chances yourad willbeshownPricingisnowCPC as opposedto CPMFacebook’slackofcontrolhasgivenrisetodeceptiveFlyers,launchingfakesecuritywarningsandpromptinguserstodownloadvarioussoftwaresSources: Facebook, The Register, –Facebookstudy
New advertising solutions: homepage sponsored storiesFirmscantargetwhateveryoneispayingattentiontoonFacebook:theusers’NewsFeed,whereastoryaboutyourproductwillbedisplayedOnlyonesponsoredstoryisdisplayedatatime,meaningadvertiserswillnotbevyingforattentionagainstotheradsAcreativewayofadvertising:ClickthroughRates10to20timeshigherthansimplebanneradsCompanieshavethepossibilitytochoosealeveloffiltering:Untargeted(Standard offer)By genderor location ($2 premium)By theirfavorite interests, activitiesor movies(5$ premium)Sources: , faberNovel –Facebookstudy
A recentsource of revenue: ,186sponsoredgroupsexistonFacebook:thecostforasponsoredgroupis$300,000for3months(aftera200%priceincrease!)Thegroupcreatesabranded,personalenvironmentwhereuserscangatherandinteractFromanadvertisingperspective,thebrandbecomesaparticipantOffersincludepackagesandpromotionstohelpspreadthewordonthegroupMostpopulargroups(10/09/07):Apple Students: 424,135 membersPINK Victoria’sSecret: 345,728 membersNBA Finals Bracket-ball& TriviaChallenge: 122,854 membersSources: Facebook, , –Facebookstudy
Towards a Facebook economy: Facebook applications developmentWiththelaunchoftheFacebookplatform,FacebookhasbeentoutedasanonlineSocialOperatingSystemFacebook’s first acquisition in July 2007, Parakey, was a web OS companyFacebookallowsdeveloperstobuildtheirownapplications,andletsthemkeepalltherevenuesgeneratedfromitsexploitationThesuccessofanapplicationishighlydependentontheapplication’sviralityanditsuserbaseDifferentwaysofmakingmoneywithanapplication:Promoting third-party applicationsSelling advertising spaceAttracting sponsorsSelling online servicesSelling productsDevelopmentofarealFacebookeco-systemFacebookappfactories:Rockyou(superstarwiththeappsHoroscopes,X-MeandSuperWall),Slide,AppFactoryprogrammelaunchedbyVCBayPartners,SocialMedia,30boxes,AF83,…Internal(inthirdpartyapplications)adnetworkshavesprouted:Lookery,FBExchange,RockYou,EggNetwork,Cubics,Appsaholic,…,the$10millionfbFundwascreatedbyFacebook,offeringgrantsrangingfrom$50,000to$250,000toaspiringapplicationsdevelopersSources: Facebook, , Rockyou, –Facebookstudy
Applications obey to certain rules specific to FacebookMoreandmorerenownedcompaniesaredevelopingtheirownFacebookapplication,inordertoreachanewaudienceDesigningandspreadinganapplicationonFacebookrequiresaparticularexpertisethatmediacompaniesseemtolack,Theirapplications failto drawmassive amountof dailyactive users(26/09/07)EvenYahoo!, a companythatknowshow to distributemedia on the Web, hadto turnto application giantRockYouto redesignitsapplication and attractusersEvolution of the Yahoo! Music Videos applicationWhether the problem comes from design issues, the application’s content or a lack of understanding on how to drive traffic to an application (viral spreading, advertising), it seems that companies do not understand the Facebook platform yetSources: Facebook, InsideFacebook, Rockyou, –FacebookstudyfaberNovelanalyses
SummaryFacebook:keyfactsandfiguresFacebookrevenuemodelMeasuringsocialmedia:2businesscasesUniversitystudents: exchange and collaborateBloggers: communicateand –Facebookstudy
Online communities navigate between media and social sitesMediasites,whereusersmostlyproducecontentThe objective for usersisto increasetheirvisibilityas a brand, individualor companyThe actorsare specializedaccordingto theirroleon the site: producers, consumers,…A “portal” historywitha commonhomepagefor users, withlittlecustomizationEvenwhenthe sites are collaborative, the 1% ruleapplies(statingthatonlyaround1% of usersactivelycontributevs 9% comment and 90% onlyconsume content : Flickr, Youtube, Wikipedia)Socialsitesallowabetter-balancedcommunication,whereusersproduceandreceivecontentUsersseekto keepin touchwithpeople theycare aboutAll actorspublishcontent to an extent, but differenttypes of influentialpeople canbeidentified“Connectors” whohave widesocial networks and actas hubs, “mavens” whoare knowledgeablepeople, and “salesmen” withhighnegotiationskills“Hubs”,“gatekeepers” and “pulse takers”Social sites offera customizeablehomepageand a wayto keeptrackof yourfriends(feed, pulse,…)One has accessto a varietyof media and platformsMajor online communities seem to converge on the social media scaleYahooMyspaceLinkedInMedia orientedportalsSocial orientednetworksYoutubeFacebookSources: faberNovelanalyses, Ben McConnell (2006), Hitwise, Malcolm Gladwell, Dr Karen –FacebookstudyStephenson
The evolution of social networking sites show they develop new functionalitiesSecond generationThirdgenerationFirst generationsites canbeseenas sites couldrepresentsites onlylet usersthe first social the first social manage friends’ networksmedia siteslistsThere are mainly flat, They are centered around Theyallowmulti-single entry lists by an individual and his dimensionalconnections, schools or classes you friends, and friends of real conversations attendedfriends : they follow the 6 betweenusers, in degrees rulecompliancewiththe social Examples: Copainsdavant graph theory*(FR), Examples: LinkedIn (US), (US)Viadeo (FR), Xing (G) Examples: Myspace(US), Facebook(US), Bebo(UK)*as exposedby Mark ZuckerbergSources: faberNovelanalyses, Stanley Milgram(1967), –Facebookstudy
The nature of the conversation on Facebookshows whyitisthe perfectexampleof the latestgenerationof social networkingsitesThe nature of conversations on Facebookcanbebrokendown:In twotypes of messages: thoseBy the format, media or application goingin (receivedby the user) or type usedto sendthe message goingout (emitted)* *the ratio betweenthe twoformingthe conversation indexAnalysis of a selection of students’ Analysis of a selection of 30+ years old bloggers’ conversation*conversation*9%3%Wall posts in Wall posts inTagged photos in 11%34%Tagged photos inGifts in39%Gifts inGraffitis in33%Questions outPokes inVideos outWall posts out20%Photos outPosted items outTagged photos outNotes out1%7%6%Status out19%1%1%Status out1%15%* Figures usedfor thesechartsare for illustrative purposes. Theyare real, but are not : faberNovelanalyses, panel of studentsand bloggers, data collectedduring4 weeks, Aug/Sept –Facebookstudy
Facebook provides the means for a real conversationTheconversationismulti-media,withtheuseofwords,drawings,pictures,videos,…Theconversationisbothverbalandnon-verbal,throughdedications(songs),gestures(pokes),andemotions(gifts,feelings)Itcanbeeitherinstantaneous(withchatapplicationsandpresenceindicators)orasynchronous(withwallposts,messages)Exchange Theconversationtakesplacemessages usingbetweenrealpersonas(fewcommonweb toolshiddenidentitieswithavatarsornicknames)andwithoutoutsideintervention(nomoderationorcensorship)FacebookletsManage Shareusershave and Itrespectstheusers’privacyifphotos and promotemulti-videoswiththeysodesire:only1in10upcomingdimensionalfriendseventsconversationsuserschangeshis/herprivacysettingsInteractusingapplicationsSource: faberNovel –Facebookstudy
Measuring social media The emergenceof social media highlightsthe needfor new metricsTraditional metrics are limitedNew metrics could beActivitymetricsstillapplyinsomeway:Activation:#applicationsinstalled(FB),#votes(Digglike),…# unique usersEngagement:thisisthe1%rule,ortheratio#visits/#Visit frequencycontentpiecesposted,%ofactiveusers/totalAverage time spent«Conversationindex»:theratiobetweenpush/pull# registered / active usersactions,informationemission/reception% of returning usersVirality:%growthofgroupsorapplications,timeelapsedtoreachmaximumdiffusion(inatypicalGaussdiffusionBounce ratecurve)Aswellasgeo-socio-demographicmetrics:Influence:#incominglinkstoaprofile,ratio(#links+comments)/#friends,ratio#connectioninvitessent/GenderreceivedAgeLoyalty:%ofsurfingtime,%postedcontentofacertainHousehold revenuetype()Geographical dataConnections:average#friends,average#groups,#broken(unfriended)orlooseconnections(nonactive)Andofcoursecontentmetrics:Relevance:%voiceofaparticular‘advertiser’inthedaily# photos / videos uploadedfeed/pulse# posted articles / commentsAndmore…:theconversationthattakesplacebetweenindividualsTypical mediaapproaches (based on ad impressions) are less and less pertinentCRMapproaches (eg. measuring LifeTimeValue) become more adaptedSource: faberNovel –Facebookstudy
FaceBook users can be segmented by the usage they doCore users have a More recently professional personal useuses appearedSocialization and entertainment Multi-media publication and applicationsfeedback applications#1:GoogleReader#6:Upcoming#1:iLike#6:FlickrPhotosSharedItemsCalendar#2:Graffiti#7:HonestyBox#2:Twitter#7:BlogFriends#3:WhereI’ve#8: faberNovelanalyses, Techcrunch, Robert –Facebookstudy
SummaryFacebook:keyfactsandfiguresFacebookrevenuemodelMeasuringsocialmedia:2businesscasesUniversitystudents: exchange and collaborateBloggers: communicateand –Facebookstudy
Analysis of French students’ behavior on FacebookFrench studentscanbeseenas earlyTheymainlyuse the site to adopters(in comparisonto the restof socialize, keepin touchwithreal life the French population)of Facebook, as friendsor renewoldconnections. Onlymore than50% of themhave been on 13% believetheyare more active thanthe site for more than3 few keyfactsabout French studentsTheydo not display anyreal interestin Theyare not reallyinvolvedin user applications: 78% addthemon groups, as 91% visitlessthan5 invitation, but theydo not browsefor groups on a regularbasis, and 81% do them. Theyuse applications mostlynot post messages, photos or videosfor fun. Sources: faberNovelanalyses, faberNovelsurveyconductedon a restrictedsampleof French studentsaged20-25, Sept. 2007 –Facebookstudy
Students see Facebook as a walled gardenEarlysignsshow thattheyare Studentsare apparentlyoutspokenand becomingcautiousabout possible carefreeon FacebookprivacyissuesTheykeeppersonalTheyoftenuse the Wall for short conversations private: 61% use messages thancanbelikenedto theirpersonalmessage box more pokesWall messages•Greetings•Enquiringabout whathas happenedlately58% are concernedabout what•Wisheson specialoccasionsothersmayseeon FacebookTheykeepto theirreal life connections•More than75% have not added60% have not changedtheirstrangersand do not plan on doingprivacysettings to restrictaccesssoto theirprofile•Theytrimtheircontact listto makesure onlypeople theyknow wellare insideSources: faberNovelanalyses, faberNovelsurveyconductedon a restrictedsampleof French studentsaged20-25, Sept. 2007 –Facebookstudy
Facebook in a work environment: threat or opportunity?Somecompanieshavetakenstepstowardsrestrictingtheiremployees’accesstoFacebookStudentsare“digitalnatives”,usedtomoderntechnologiesandnewmeansofcommunication,andassuchtheywouldadaptquicklytotheuseofFacebookasaworkingtoolThoughstudentsdonotseeFacebookasanusefulworktoolyet(54%oftherespondents),itshouldnotbeoverlooked,astheylackperspectiveGiventherightincentiveandTurnevolutionoftheplatform,theyFacebookintoa couldadaptquicklyandturnMakeproductive Facebookintoaproductivetool:advantageoustooluse of theirNurturing connections that familiaritywithcould be useful to their the websiteUnderstandcompanystudents’ Organizing themselves and behavioron Facebookcreating work groups dedicated to a specific project3 steps to turn Facebook into an opportunitySources: faberNovelanalyses, faberNovelsurveyconductedon a restrictedsampleof French studentsaged20-25, Sept. 2007 –Facebookstudy
Advertising and targeting students on FacebookThebasicadsdonothavemuchsuccessLowClickThroughRates (% on average, one of the worstperformingsites)Studentsmaybetoobusyinteractingand neglectthe adsdisplayedAwaytoattracttheirattentioncouldbetohavetheminteractaboutthebrand71% have statedthattheywouldnot mindjoininga sponsoredgroup shouldthe content group centeredaroundusersand theirinterestsseemsa good approachTarget letsstudentstalk about theirdormroomThe mostpopulargroup, «Apple students», offersthemdiscounts on Apple productsHavingthemcommunicateon the brandLaunchseveraldiscussion threads and topicsto let usersreactIf needbe, use an evangelistthatwilladdresscoreissues, help buildthe communityand providea humanface for the brandDevelopa real interaction thatwillhelp the companygrowand evolveSources: faberNovelanalyses, faberNovelsurveyconductedon a restrictedsampleof French studentsaged20-25, Sept. 2007, –Facebookstudy
SummaryFacebook:keyfactsandfiguresFacebookrevenuemodelMeasuringsocialmedia:2businesscasesUniversitystudents: exchange and collaborateBloggers: communicateand –Facebookstudy
Bloggers and Facebook : a love affair?Most of the Top 100 mostinfluentialbloggersare alreadyon FacebookTheyare migratingTheymust learntheircoreaudience how to navigatethe to FacebookFacebookgraphDifferentrulesapply:Theirprofile pages and feeds-The conversation isnot limitedto offera centralizedviewof all the commentsmade on a blog postcontent theyproduce: blog -Attractingattention ismore of an posts, podcasts, Twitter“tweets”,issue: theirfeedismergedwithMagnolia/ tags,…othersin theiraudience -Theirvisibilitydiminisheswhentheiraudience doesnot interactwiththem(social graph algorithm)Someuse itextensively, providingexclusive content on Facebook(R. Scoble) or engagingusersin the creationof an event(L. Le Meur’sWeb3)Theirfavorite toolsare not all availableyeton Facebook: -Theyrelyon the keyonessuchTheyare facedwithan internalas: RSS blog limitof 5,000 “friends” (not an feeds, Twitter, videosand photosissue yetin France as the -New oneshave appearedthatphenomenonstartedonlyin requirelearningand finetuning: June2007)BlogFriend, Posteditems, …Sources: faberNovel analyses, –Facebookstudy
Analysis of 2 «heavy users» in France and in the US provides some interesting user profiles to analyzeRobert Scoble (US) Natacha Quester-Séméon (FR)•The former Microsoft bloggingevangelist•Former journalist for newspapers(Channel 9,…)•Currently chief editor of the •CurrentlyVP of media blog, web content , chiefeditor , authorproducer (i-Marginal), personal blog : of the blog and •291 friends on Facebook, an average of •5,000 friends(the maximum limit), an 34 blog posts a month (perso and pro) and averageof 70 blog postsa monthand 7 20 tweets a week, more than 120 video tweetsa week, more than325 videopodcasts recordedpodcastsrecordedin 2007 to date (Sept. 20th)•Main social applications used (outside of Facebook): Twitter, Scoopeo, Fuzz, •Main social applications used(outsideof , Humanews, FlickrFacebook): Powncer, Jaiku, Twitter, Upcoming, Google Reader SharedItemsBeyond a certain reach, the audience/traffic of a typical blog is often linked to the number of posts so it is crucial that bloggers find a more engaging way to interact with their audience to create value and escape their natural production limitSource: faberNovel –Facebookstudy
These examples show two different approaches for bloggers to monetize their audienceTwomodelsCommunicator: Robert ScoblemakesverystrongActivist: Natacha Quester-Séméonengages in use of video, clogsusers’ feedswithcontent and discussions in the group shecreated, as wellas on onlyinteractsin a “traditional” waywithaudience otherpeople’swalls(respondingto comments) The objective is to develop a community and The objective is to drive traffic to advertising have some influenceon the socio-political supported areas (KyteTV, Scoble Show, …)debateAnalysisof Robert Scoble’sconversationAnalysisof Natacha Quester-Séméon’sconversationWall in5%Photo in2%5%6%3%1%Video in2%15%1%12%Gift inNote inWall out1%Photo out22%Video out26%Note out20%11%Event outStatus outTwitter outBlog post out4%Link outDiscussion out1%3%20%14%14%10%2%Sources: faberNovelanalyses, data –Facebookstudycollectedduring4 weeks, Aug/.Sept. 2007
SummaryFacebook:keyfactsandfiguresFacebookrevenuemodelMeasuringsocialmedia:2businesscasesUniversitystudents: exchange and collaborateBloggers: communicateand –Facebookstudy
A few points as a conclusionThephenomenonisonlystartingandwillbestronglyinfluencedbythenewapplicationsavailablePrivacyisanissue:The concentration of information freelyavailablethroughthe platformand the free-for-all mentalitythatenabledthe creationof somanyapplications canbea threatto FaceBook’ssuccessFaceBookprovidesthe best privacymanagement toolsavailablein the social media universeBut ithas yetto beproperlyunderstoodand usedby new users, especiallyas business and personallives“collide” on FaceBookmore thanon othersocial networkingsitesBrandsandcompaniesshouldlearnhowFaceBook:Enablesa new communication withtheirconsumers:Via sponsoredgroups for a real conversation ‘a la’ cleveradvertising(feed, flyers‘a la’ AdWords…)Offersnew collaboration and knowledgesharing opportunities:Quicklyspreadsuccessfulideasand recruitfor projectsor causesLet usersmanage whattheydo not wantto shareinsteadof askingthemto makean effort to shareSource: faberNovel –Facebookstudy
Special thanks to …BrunoKaufmann,Manager,newmediaandstrategicplanningKRMediaFrance(amedia-planningand-buyingagencypartofWPP'sGroupM),forhisinsightsanddataNatachaQuester-Séméon()andRobertScoble(fromScobleizer)fortheirinsightsandauthorizationto«expose»theirpublicconversationonFacebookRenaudTherry(juniorconsultantatfaberNovelConsulting)forhisextensivemasteryofonlineworldsandnetworkofstudentfriendsAndtoallFacebookexpertsworldwidewhomaintainblogsandwebsites,sharinginformationandinsightsonFaceBookandsocialmedia:Michael ArringtonatTechCrunchUS and OurielOhayonatTechCrunchFRRichard MacManusand the team atRead/WriteWebJeremiah Thomas and the team Farmerand the team Smith and the team O’Neill and the team Amiel Haddad –Facebookstudy
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faberNovel’s activities are split into 3 unitsConsultingXPVenturiStrategy and organization for Experimentation and project Interal project development growth and innovationmanagementand investmentAssistinglargegroupsonStrategicexperimentationVenturecapital,«excubation»methodology,analysisandReduction of innovation risksInvestment and development decisionmakingof internal projectsFast acquisition of key know-how and skillsCompany creation assistanceCapital shares offering Innovationconsulting:Conceptionanddevelopmentadditional action leverageofinnovativeproductsandInnovation StrategyservicesOrganization and innovationFunctional specificationChange ManagementOutsourced project Knowledge ManagementmanagementR&D portfolio managementConception and business validationEvaluation and identification of partnersPiloting and feedbackGalvanize innovative genesCarry out quicklyRemain –Facebookstudy
faberNovel oversees innovation projects from their positioning to their realization –Facebookstudy
faberNovel Consulting heads all of faberNovel’s consulting activitiesfaberNovel Consulting’s mission: galvanize firms’ innovative genesProspectiveintelligenceStrategyImplementationTechnologiesGrowth strategyCompetitive benchmarkMarketsInnovation platformFunctional specificationsUsesProject portfolio managementPartnerships / MonetizationInnovation managementOrganizationChangemanagementParticipative innovation (Idea Sharing best practicesManagement System)Communities animationCollaborative innovation (Customer Knowledge designRelationship Innovation ®)Technology transferIntrapreneurship –Facebookstudy
If you want to know more on this subject, do not hesitate to contact us…42, boulevard de Sébastopol I 75003 Paris I FranceTel.: +33 1 42 72 2004 I Fax: + 33 1 42 72 2003 Web: -mail: @@@ –Facebookstudy
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