I’m following the Facebook and Microsoft deal closely, this really hammers home a few ideas
It’s for real people, finally, Microsoft is putting some skin in the game for the new web, other than the corporate only social computing programs they’ve put together (like Channel 8,9,10) as marketing tools this is the first deployment for the social media tool set. Secondly, this triggers confidence in the social media space as the future of communications, this is for real people.
Why this deal makes sense
I have the pleasure of sitting next to Charlene and we’re bouncing ideas of each other, her predictions (from Sept 24) on why this make sense were spot on 1) The experience and ability to execute online advertising is Microsoft’s strength and 2) For MS, a platform company, this is a key play to bring their slew of developers to now build on the new platform, the web platform. A concept I’ve been discussing for some time.
Why else does this deal make sense? 3) The application development can go both ways, utility widgets (not food fights) that glean information or bubble up network data will be prime suspect to be reused on existing internal apps for Microsoft. Such as desktop widgets on MS Vista, or widgets embedded nicely into sharepoint.
4) Identity: Next, imagine fluidity between enterprise collaboration tools. We already know that many Microsoft employees are using Facebook, and this is becoming an identity tool that Microsoft has always wanted (remember Passport?). Microsoft will experiment with connecting Facebook, looking for alignments to daily work and personal lifestyles, and combine where appropriate.
What the VP of Sales and Microsoft’s Advertising group is thinking
Ok, back to the primary reason why this deal works, it’s because of the advertising. I’m going to do the VP a favor and kick start her (or him) new sales book, here’s how I see the new additions:
Intelligence: User and Network Data from 42million opt-in members. Sure about one third of the profile information may be incorrect, but what we can learn from what they do is invaluable. Google doesn’t have this level of granularity, that’s why we’re more accurate. Your marketing and advertising dollars will be better spent with us
Demographics: If you’re trying to reach the educated, white collar, engaged, interactive, and growing segment of North America, Middle East, part of Europe and Asia then you’ll go with us. We can also segment by band or market to isolate and make your marketing spend effective. Need to reach a male in detroit that is conservative and single, yeah we got that.
Community in a box: Tired of trying to kick start your own community? Building those engaging social communities on your own web domain is a challenge, who wants to deal with IT or go through the motions of getting users to come? We’ve got an instant community you can interact with and engage with.
Brand Experiences: Advertising not enough? want to build true interaction around your brand and get customer and user feedback? We’ve got that too, you can purchase a sponsored group in Facebook for 100k, which is just a drop for most advertising spends at the Fortune 1000 level. You’ll get your own branded community, and we will cross promote from other areas in Facebook. Users will be engaged, self-identify, and get closer to your brand, and yes, you can deploy an eCommerce application in the group.
Flexibility: With the smallest flyer, to a branded sponsored group, we can custom tailor any marketing initiative to correctly fit your needs, and those of the Facebook community.
Data and Reporting: By far the most important thing for you is to prove the value of your advertising and marketing dollars, by using our platform we’ll tell you who you are resonating with, when, and by how much. You’ll be able to course correct any campaigns in real time. Google doesn’t give you the personal and network data. Numbers are safe, and we know your boss is risk averse.
Holistic Strategy: Already deployed advertising campaigns on the web (maybe with us) we’ll help from a strategic media partner sense and take a look at your entire holistic strategy. Work with us to deploy on Microsoft properties, our search engine, affiliate partners, and Facebook.
But what are the risks?
With any shiny object the cool kids get on it first, play with it and the adoption process starts (read the theory on the personas of early adopters), over marketing and too many branded invasions (MySpace may be suffering from this) causes the cool kids to move away –with the platform provider unaware or not caring while cashing in– taking their groups with them. Over advertise and destroy the experience results in a ghost town of billboards, popups and targeted ads.
Although I’ve been quoted by the press before, today is a milestone as this was my first quote as an analyst in this Bloomberg piece answering why this deal makes sense, and nicely positioned at the top of the article.
Do you need to learn more?
Thinking of deploying in Facebook? then first read What the Web Strategist should know about Facebook. Also, I publish a weekly digest of the Social Networking industry (I add my insight as well), stay up to date and read these every Wednesday. Also, I’ll be keynoting this upcoming Facebook conference in December in Seattle, hope to see you then.