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Archive for May, 2009

digest3

I’m respecting your limited time by publishing this weekly digest on the Social Networking space, which I cover as an industry analyst. By creating this digest (I started this over a year ago) it really helps me to stay on top of the space I cover.

I’ve created a new category called Digest (view archives). Start with the Web Strategy Summary, then quickly scan the succinct and categorized headlines, read text for my take, and click link to dive in for more.

Subscribe to this blog in your feedreader, or use the email subscription box in the right column. Or you can subscribe to this digest tag only and not receive my other posts.

Web Strategy Summary
The era of social colonization continues to power forward with Google pushing OpenID –this will extend connections to Google’s massive empire to startups and others. The era of social functionality will see some media impacts as media companies seek to provide new experiences for communities, the Watchman movie to be provided to the Facebook community. Facebook seeks to ‘buy out’ shares from impatient employees.

Identity: Google encourages socialization with OpenID interface
Google announces the OpenID User Interface Extension Specification which is intended to streamline the logins and adoption of commonly agreed upon identity systems. This login requests authentication with Google accounts, but also promotes the use of OpenID. Expect more announcements like this from other platforms to occur as we slowly mature into the era of social colonization.

Finance: Facebook raises money to liquidate employees
In Silicon Valley, where I hail from, working at a company with the hopes of an exit strategy is the dream. Workers at hot startups, like Facebook, may have a below market rate salary in hopes of someday cashing in. The challenge, during a recession is that an IPO is unlikely to happen for a few years, and so Facebook raises funds to buy back equity from employees –giving them some cash in hand.

Video: Watchman Movie to be available on Facebook
This is what we call the era of social functionality, when communities can do something useful with each other. In this case, they can watch a movie together, this one being Watchman, comment and explore the scenes as a group. Expect other traditional media content to appear on Facebook making all media, social media.

Strategy: SixApart offers features for WordPress Rival
Letting go to reach communities where they exist –espicially if they are your competitors is a smart strategy to reach new users. Why limit your reach to your ‘install’ base only, but instead, let your most popular features spread to competitive users. Six Apart has intended to do just that, and has announced they will make plugins available for wordpress users –expect WordPress to follow suit.

Policy: WSJ enacts social media rules for journalists
This one is perplexing, yet I understand the intent. Journalists have a specific code of ethics to follow when it comes to protecting sources, and keeping subjects at arms length. The challenge, according to this piece, suggests that the policy is out of date to human behavior, and suggests that the new policies are out of touch.

Research: Social Network Advertising to diminish
eMarketer reports that: “Total U.S. advertising expenditures on social networks are expected to fall 3% to $1.14 billion this year, down from the $1.18 billion spent in 2008, according to Internet market research company eMarketer.” Do note that the research appeared to be based on spend within MySpace.

Culture: Social networks a harbor for hatred and sex
We’re at an intersection where social networks must decide if they are going to allow free speech, or clean up hate speech to improve the community experience. We’re seeing uprisings within Facebook’s holocaust denial movement (which they have now made some changes) and even Craigslist under fire for policy changes around adult services. The open web has both benefits of a global conversation, but with it comes the unwanted discussions that each culture may embrace or abhor.

Personal: Amsterdam to Paris
Although I’m on international travel in the Netherlands and about to go to vacation, I continue to do this digest to stay on top of my ever changing industry –it’s my weekly mental workout. I’ll be taking the week off after my client engagement on Monday, but will still be active online –just don’t expect me to answer emails. I’m also wrapping up my first report for the quarter “How to organize your company for social media” which includes survey result data, and interviews from companies.


Submit: I’m listening. If you’re a social network, or widget company, I want to know of your news, send me an email, or leave a comment below. Help me stay up to date but first, read how to score your announcements.

Hungry For Social Networking Stats? Then you should see my collection of Social Networks Stats for 2008 and 2009. Bookmark them, then share it with others as I continue to update it.

Cambrian Era: Culling and Evolution of Social Media Startups

Categories: UncategorizedPosted on May 17th, 2009

I continue to think it’s interesting to draw parallels from natural sciences and what’s happening to the social industry, and also how communities behave and grow. From the five eras of the social web (my inspiration was the stratification of this beach cliff), and watching the enterprise software players (my inspiration was spending a day at a tropical aquarium), there’s yet a third metaphor to explore.

The Cambrian explosion is still hotly debated between creationists and evolutionists, a period of time when millions of species proliferated in a relatively short period of time. This explosion, in theory, gave a tremendous amount of deviation of species that paved a way for the creatures who developed the right features to quickly adapt to the changing environment. Despite the millions of species created, only a few survived and evolved to the modern species we now know.

There’s a lot of similar things happening within the startup space, we saw an explosion of startups appear in this second wave of the web, yet this graphic shows that many are going extinct, and a few were acquired by other organisms. What caused this explosion? At least two factors: Injection of VC money into the developer community, and the low barriers to entry for startups to get going. Opensource development software is virtually free, there are many platforms people are building on top of (Facebook platforms is like an operating system, with instant users), and the need for a large data center can be ‘offshored’ to the cloud.

As the industry matures, we should expect some of the few startups to mature, take the lead and become the dominant species, same as what we saw in the first web wave with weather.com, ebay, craigstlist, google, yahoo, and others. There were thousands of companies that didn’t make it (I saw this first hand as I worked at the massive web host Exodus in Santa Clara). Going with this metaphor, it’ll be interesting to see which companies develop the features of long term monetization –something we haven’t fully seen across the industry –that will foster an increased chance of survival.

Back to you: Aside from generating revenue, what are the key features these young species/companies need to develop?

Video: The Five Eras on Social Web TV

Categories: UncategorizedPosted on May 16th, 2009

Above Video: John McCrea and long term friend Joseph Smarr (He knew me way back when I was Hitachi’s community manager) and I…ahem yes, Mr Spock too, chat on Social Web TV at Plaxo, one of the companies I interviewed for the report.

The Viddler player is social in itself, you can leave comments, tags, or hyperlinks in the segment itself, yup, I’m Viddler’s evangelist Colin Devroe’s baby daddy, you won’t be surprised to find out that is one ugly baby.

The blog post covering the recent release of the report The Future of the Social Web continue to radiate across the web –with interesting discussions, questions, and comments.

Also, I was asked do I keep track of the accuracy of my predictions? The answer is yes, we self-graded our predictions from 2008, and are keeping ourselves accountable in this transparent world. It’s important to note that no one can predict the future, so that’s why we did research and interviewed the top minds at the top companies, what we compiled is the most accurate lens to what’s going to happen that anyone’s been able to package into a report. I’ve also started a running list of examples in the five eras of the social web, so we can watch how it unfolds.

I write to you from Amsterdam, as I trek the globe sharing the five eras of the social web research, I look forward to coming to your conference or company to present.

Dutch Fond Of Social Technologies, But Why?

Categories: UncategorizedPosted on May 15th, 2009


Above: Social Technographics of Netherlands, see other global data for free at Forrester’s Technographics Profile Tool, for our clients we can cut this data in a variety of ways by role, region, and sometimes affinity.

Social Technographics Reveal Dutch Adopt More Than Neighbors
I’m an American social computing analyst in the Netherlands –which gives me a unique perspective to peer into the adoption and culture of social networks.

I’m here in the center of Amsterdam, overlooking a canal. Yesterday, I presented the above social technographics of the Netherlands at the Corporate Social Networking Conference, and talked about the future of the social web, MarketingFacts live blogged it in Dutch, but you can try the Google Translator (although I’m told the translation gives some comedic interpretations). Although the Netherlands are a smaller country compared to many, their adoption of social technologies is significantly higher than their neighbors –and many other cultures across the web.


[Social Technographics reveal that 39% of Dutch adopt social network technologies (joiner behavior) which is more than twice that of the European average of 18%]

Last night, I met Patrick, the founder of a European social media blog The Next Web, (smaller, but similar to Techcrunch), and Raymond, the founder of Hyves, the most popular Dutch social network. We discussed why the Dutch have an affinity towards social technologies on the local news (called BNR) listen in to this 23 minute clip of social networking in Netherlands. Apparently, I was the first to bring this program to be spoken in English rather than Dutch, I wonder how the loyal listeners will react.

Test Driving Hyves, A Dutch Social Network
For my research, I interviewed Raymond last night, one of the Hyves founders, I learned this SNS was founded in 2004, and was inspired by Google’s Orkut, he mentioned Cyworld a few times, also a regional SNS from South Korea. I learned that up 50% of the Dutch population could be on Hyves (although some may have double accounts) for a total of 8 million accounts of a total population of 16 million, and 60% of the Dutch population visits the site at least monthly. Brands are waking up to this, and there have been marketing efforts from Unilever, KPN, Vodafone, and Bacardi.

I’ve created a Hyves account (Hyves, like in bee “Hyve”) to learn more about how these tools are being used, if you’re already on, you can add me as a friend and I’ll add you back. A few key features that are interesting: There’s a way to enter your license plate number, and search for others. Secondly, a premium feature you can pay for is to have some abilities to have analytics, and see who’s looking at your profile. This network appears to be geared towards a younger generation that wants to socialize and connect, although the numbers suggest it’s gone mainstream across many age groups.

Potential Factors to Social Technology Adoption
With the Dutch population being so active with social technologies, I have to ask why, and make some comparisons to cultures like Japan, South Korea, and US where adoption continues to grow. Not being an expert at Dutch culture, I have to wonder if the following factors come into play to any culture:

  • Strong web based infrastructure, availability of high speed networks and access to wireless.
  • Mobile based culture where most citizens have smart phone devices with web surfing ability.
  • A culture and government that encourages independent thought and freedom of expression.
  • Social acceptance of sharing, learning and collaboration.
  • It would be rude for me to assert any cultural observations, so if you’re Dutch, I’d like to hear your opinion. What else would you add to these proposed criteria, or does each culture have a unique set of factors that governs its social technology adoption?

    What Companies Should Know About Digital Natives

    Categories: UncategorizedPosted on May 14th, 2009

    Left: Dr. Urs Gasser of Harvard’s Berkman Center, who focuses on Digital Natives.

    I’m live blogging from Corporate Social Networking Conference in Amsterdam, and listening to Dr. Urs Gasser of Harvard’s Berkman Center, his website and twitter account (works with friend Doc Searls) who coined the term “Digital Natives”. In my opinion, the Berkman Center is the leading think tank in academia focused on the internet and impacts to culture.


    [By age 20, kids will have spent 20,000 hours online –the same amount of time a professional piano player would have spent practicing --Dr. Urs Gasser]

    The kids born after 1980 are often thought of as Digital Natives but age doesn’t always matter as the generation is defined on: access to digital technologies since birth, age, and have the skills to use the digital technologies. Those who come before these digital natives are referred to as digital immigrants. For what it’s worth, I’m right in between both, giving me a perspective of both worlds.

    Key Characteristics of Digital Natives:

    They interact with the peers across the globe: This impacts employers, brands, teachers, parents, as this first generation enters the workforce.

    Always online: By age 20, kids will have spent 20,000 hours online –the same amount of time a professional piano player would have spent practicing Urs Gasser, paraphrased
    Multiple identities, personal and social, shared online and offline (blurring): Online representation is the same as physical representation: what your clothes, friends, vehicles say about you.

    Extensive disclosure of personal data: 35% of girls in US are writing a blog vs 20% boys. Opportunity for HR departments to learn more about their employees, but guess what? They Google you too.

    Culture of sharing: The default behavior is information sharing, not only do they have the right to speak, but to be heard. Risk: breach of confidentiality is hip, digital natives are fans of wikileaks.

    Creators, no longer passive users: This generation creates their own content and shares their opinion online, see the Forrester’s social Technographics to learn about the data.

    Information processing habits: Pointed out that the second most popular social network was YouTube. They often ‘graze’ the headlines and don’t often read the full article. (I guess few natives will read this far? Prove me wrong in the comments). Opportunities: companies should allow natives to increase creativity to rip, mix, burn content to encourage interaction.

    Peer collaboration, online activism: They often experience work with community builders, and are responsive to intrinsic motizations.

    Learning through browsing: Yes wrestles with amount & quality of information, generational “multitakers”. They may not be able to identify qualified and expert sources. “If it’s online, it must be true!”

    On a related note, this month, I’m starting a research paper on Social Behaviors of Generation X, which is a bit older than Generation Y, if you’re a brand or agency that has case studies of how you’ve reached Gen X using social technologies, I want to know. Email me at jowyang at Forrester.com

    Pics from the event, at a converted industrial complex westergasfabriek “Western Gas Factory”, extremely hip venue.

    Urs Krem Krem Krem 05142009169 05/14/2009 05/14/2009 05/14/2009 05/14/2009

    This by no means represents all brands, but just some brands, perhaps those that are a bit more sophisticated.

    Last Friday I had a conversation with a manufacturing firm that had some relativily sophisticated questions about how they will prepare their plan around Twitter. This was a nice break from the “why does Twitter matter” questions I usually get, as they were thinking through a plan.

    Here’s some of the excellent questions this organization, and a handful of others brands are starting to ask:

    1. Should we create multiple accounts for different divisions? How should we name them?  How should the content be different?
    2. Is it ok to just tweet out news on our main corporate account? Or should we be conversational?
    3. How do we get our corporate reps (sales, product teams) to use this tool, and be conversational?
    4. Should we follow folks? If so, what’s the protocol? Should we only follow folks that follow us? We don’t want to appear like ‘big brother’
    5. What are the tools to use to manage multiple authors/tweeters?
    6. How can we find other examples of B2B twitter examples?
    7. How should we brand our Twitter backgrounds images?

    Ok, that was more than 8, but I grouped them into related questions.  It was refreshing to hear this much thought being put into their conversational efforts, this was actually a manufacturing firm, not a high tech company and certainly not a young startup out of southpark in SF.  In general, the level of interest has gone up about Twitter since late Q4 2008 from my clients, and recently, we’ve been getting more questions about the topic.  

    What questions are you hearing from brands that are approacing Twitter?  I gauge the level of sophitication of a brand by which of these five questions they’re trying to answer, just change out ‘social media’ to ‘twitter’ to gauge.

    Are you at an agency or at a brand? What questions are you hearing about Twitter?

    Update: Antonio has answered, as has Jess, and so has Dirk who heads social media marketing at Vignette.

    Gotta have some fun, hope you had a good laugh at this ever relevant Twitter video. It’s rather on point, as I recently listed out what happens to Twitter as it gets mainstream attention (although it doesn’t have mainstream adoption). Here’s the first twitter video from the supernews folks –they’re having a lot of fun.


    Video: see Get Glue’s demo reel, embedded above.

    Summary: Young startup Get Glue is the early steps of how every product and website will be social –impacting recommendations and marketing. It ushers us into the early steps of the Era of Social Colonization, the third era of five in the evolution of the social web.


    [Get Glue is an early example of the Era of Social Colonization –a state when every product, services, and object can have social reviews by people you know]


    Last week I spent time with small Get Glue team on a briefing, they were recommended to me from former colleague Charlene Li, so if she suggests something, I’m going to quickly follow up. It’s rare that I would dedicate a blog post to a company from a briefing, but this one is significant.

    Get Glue is meta social network, meaning it aggregates the explicit and implicit behaviors of other social networks. Example: If you leave ratings about products on different websites, it will start to aggregate it to one page. What does this mean? It means that Get Glue can aggregate the opinions of your friends about nearly any product.

    Early example shows significant impacts to brands

    • Early example, yet not maturity: Although this is focused on media, movie, music, gadgets and more, expect it to grow it’s scope to include services, restaurants, and even enterprise products.
    • Barriers to mainstream adoption It requires users to use a Firefox plugin to enable, so it’s only reaching a limited number of people –and they have to be active in social networks.
    • Recommendations will be aggregated: Soon, every product, webpage, and service will be rated by your friends, and the information will easily be aggregated into one location. Silos break down, as Get Glue is pilfering the reviews from thousands of sites to create a unique database with all the social data.
    • Significant impacts to marketers: You cannot stop this, and marketing as we know it will have to switch to a focus on social recommendations.

     

    digest3 

    I’m respecting your limited time by publishing this weekly digest on the Social Networking space, which I cover as an industry analyst. By creating this digest (I started this over a year ago) it really helps me to stay on top of the space I cover.

    I’ve created a new category called Digest (view archives). Start with the Web Strategy Summary, then quickly scan the succinct and categorized headlines, read text for my take, and click link to dive in for more.

    Subscribe to this blog in your feedreader, or use the email subscription box in the right column. Or you can subscribe to this digest tag only and not receive my other posts.

    Web Strategy Summary
    Been a light week as far as significant news goes. Facebook and Digg start to connect their social identities. Ning launches an application gallery, and MySpace trims staff.


    Social Colonization: Digg adopts Facebook Connect
    In an ongoing effort to spread its network, Facebook allowed third party sites to connect to it’s user and member base, now Digg users can use this to access their account info and social graph. The challenge is you can’t register FB with Digg if you’re using the same email address in Digg –the social profiles don’t yet merge.

    Apps: Ning provides application gallery
    Previously, Ning applications had to be installed by individuals, but now they can be replicated across networks, with what appears to be a widget gallery type feature.

    Downsizing: MySpace trims workforce
    While other social networks have also had layoffs (Hi5 in particular) MySpace trims 45 members of it’s staff, and is undergoing a major executive change out.

    Findings: Wrapup from Inbound Marketing Summit
    What was learned at the Inbound Marketing Summit? This excellent wrap up summarizes the key findings.

    Ads: blogs come into their own
    A few months ago, GigaOm’s network left Federated Media, and now Techcrunch sprouts it’s own advertising capabilities. Blogs are maturing now where they can reduce third party dependency on advertising revenue, demonstrating they’re their own media outlets.

    Interview: Thor, of Get Satisfaction
    Interesting audio interview from the founder of Get Satisfaction, a third party support site, that’s quite disruptive to corporate websites. Thor, the former CEO is now the CTO, having recently hired Wendy Lea. The chatter is casual at first, but gets focused as it progresses.

    To watch: Cisco Eos puts stake in ground for media
    Cisco’s Dan Scheinman is a general manager at the Eos, a community platform aimed at reaching media industry. While still early to market, I’m carefully watching this vendor as they have large backing from Cisco, that has a large enterprise footprint. Dan’s post suggests that Eos is intended to help Hollywood make money online, leveraging the disruption that new technologies have brought them.

    Google: Analysis on Ad Behavior to improve TV ads
    Google is doing some interesting and hopefully interesting analysis that will improve the context of ads, see their lengthy explanation and charts.

    Accolades: Neighborhood America gets second award
    Neighborhood America announces today that it has won its second consecutive CODiE Award for ‘Best Social Networking Solution’ for enterprises. See the many other categories and finalists.

    Personal: Happy Mother’s Day Mom
    Thanks for all you’ve done for me, supporting me when I was a young snot, and still supporting me as I’m an older snot. Love you mom. Now, I’m off to Amsterdam to help clients and speak at conferences, then going to Paris the week after.

    Hungry For Social Networking Stats? Then you should see my collection of Social Networks Stats for 2008 and 2009. Bookmark them, then share it with others as I continue to update it.

    Why Physical Media Is Archaic

    Categories: Rich MediaPosted on May 10th, 2009

    Most people consume media in a disposable method, despite the fact they want to own it.

    Interesting conversation on Twitter this weekend with my new friend HarryAllen, as I’m discussing how I consume my media, in this particular case I’m watching the final season of Battlestar Galactica, season 4.  Some in Twitter say they’d prefer to buy the DVD set, where I prefer to have it on demand, and not own or have to manage any plastic.  

    A few reasons why I think owning physical media (DVDs, CDs) is antiquated:  

    • 1) I’m impatient, I want it, when I want it.  
    • 2) Owning media takes up space 
    • 3) It reminds me of the 80s and 90s when my friends would buy shelves and shelves of VHS tapes –DVDs will be antiquated, as new formats are already coming around beyond Blu-Ray.  
    • 4) Owning media is a liability: It depreciates over time, can be a challenge and a headache to sell 
    • 5) It’s bad for the environment: If there’s anything the world needs less of it’s forged plastic disks and equally bad for the environment containers. 

    Friends and family of mine like to own media libraries, but I question exactly how many times they watch it after buying it.  Perhaps it’s a Western mentality, the desire to ‘own’ and have collections of content.  

    So what’s the future?  I prefer to buy via iTunes, or Amazon music (DRM free), or stream the shows live from the web, even Netflix offers on demand via the web –you don’t have to open the mailbox.  Once I buy it, I can always download it again in the future, and at some point, most media becomes free in order to give it a second life.

    This isn’t just about TV or movies, but applies to my CD collection too –I will never willingfuly buy a CD again if I can get it on demand.  Could this apply to books with the new Amazon Kindle?  Maybe, yet I think it’s one of the few types of media that will still retain it’s original form –sometimes it’s nice to unplug.

    Take my kid sister, who’s visiting at my house for our Mother’s day dinner, she streams content online, downloads it from the internet, and has an iPod.  I think looking at Generation Y is a clue to what is to come, media will represent the culture it’s providing for:  portable, mobile, interconnected, interactive and on-demand.

    To me, owning physical is the old way, the new way is relying on the network.  

    Would love to hear what you think.

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