If you look carefully, I'm in the front row of the running group. 1 hr ago

Archive for the ‘Challenges’ Category

Soon, we should expect devices and appliances of all kinds to emit digital updates.  Will it be signal or noise?  It depends on your perspective. This “Ambient Status” is in which a non-living device or non-human beings compulsively create digital signals and updates.

With technologies at hand that allows anyone to share their opinion and status, the world becomes more connected. Perhaps one of the challenges in our overly connected world is the damage that excessive noise from many who publish causes.   It won’t be limited to just people: expect our cars, refrigerators, servers, pets and plants to start tweeting, blogging, and live streaming.  

For example, we should expect in the near future that:

  • Cars to alert us in SMS, Twitter or email when they need to be serviced, have low air pressure or other service.  In fact, we’re already seeing technology that will allow your car to text on your behalf while you drive.
  • Automated alerts from loved ones will be tweeted or texted to us. We know that Onstar can alert a centralized office if there’s an issue with the car being in an accident or stolen, why not alert loved ones (idea via @rototok)
  • Medical devices like life alert, or wrist bands or watches that measure heart rate and pressure could be used to auto alert loved ones of sick or elderly.
  • Refrigerators, washing machines, coffee machines and other home appliances will alert us when they need service or have completed a task.  If your plant can already Tweet when it’s thirsty (yes this already exists) then why can’t your air conditioning system and lights? 
  • It won’t be just home appliances, expect overloaded servers, web systems, and alerts when your boss is approaching your cubicle to be able to emit signals.
  • In the not-so-far fetched future, we can expect our pets, infants, and even unborn children to emit digital signals that we could aggregate in Twitter, Facebook, Blogs, SMS or email.  Heck even my puppy @goodboyrumba already tweets, (with some aid from his human servants) but we could expect new collars that measure his bio rhythms to emerge and let us know when it’s time to be let out for number 1 or 2.

The real question is, is this ‘ambient intimacy‘ or just adding to the ‘noise’.  While it may help us to be more connected, aware, and easier to manage our lives, it’s also going to make us a little more frantic, over-sensitive, and overwhelmed.

I’ve been watching this space for a few years now, and I’ve started to notice that the people (often those that we think of that are at the upper echelons) are not able to scale, as a result here’s what they’re doing to compensate:

Many social media bloggers don’t even manage their own accounts, they often hire virtual assistants to do their Facebook and Twitter follows and replies.

Quite of few of those top social media bloggers don’t even answer their own emails, they have a virtual assistant that reviews them, sorts them, and sometimes responds on their behalf.

Many of the top social media news blogs are on a race to see who can publish the fastest, why? whoever gets the earliest time stamp often gets the credit and links from other blogs, and will risest fastest on the techmeme tower or google news gauge. As a result, many of these blogs will publish the headline, then adjust, edit, format, punctuate, and add links to the post in real time.

A few authors that have published one of the thousands of social media books outsource their content to ghost writers who create the majority of the content. Although it’s the headlining author’s name that drives book sales, in many cases they don’t actually write the content.

Many of the top celebrities or top social media names don’t even write their own blog posts and tweets, they may outsource it to others.

So what does this mean? It means the social media space is starting to look like just about every other industry that starts to get mainstream. Social media is often the premise built on 1:1 relationships, and even with technology, that clearly doesn’t scale, and I can relate.

What about me? I’m asked every few days “How do you do it all” my answer is “I don’t, the wheels are falling off” Well you’ve probably noticed I’ve not been blogging much, nor tweeting lately, I’ve been under heavy travel and projects (that I’m behind on). Every blog post and tweet that you see is me, including all the errors and typos that come along with them. I will admit that sometimes, I even updated blog posts after they publish, to polish it up. I skim all my emails, read many, but if I answer, I promise you that’s always me. I may not be good at scaling my social efforts, but I assure you, I’m authentic, warts and all.

I can relate to those who don’t scale well. If you’ve ever met me at an event this last year, you may have noticed dark circles under my eyes, and somewhat of a flustered appearance. I recently had a long talk with a good friend yesterday, when I’m tired from traveling nearly every week, you may notice that I actually draw my strength from within or being online, not always from others. So if I’ve ever came across as a bit messy and sapped, I certainly don’t intend to, I’m just stretched to the limit at times. 

So what happened to transparency and authenticity?  Maybe it’s the econony, with less resources, and more pressure, we’re all being stretched to the limits.  Or maybe, this is the evoluation of every industry, music, art, and film started out simple and pure, then became institutionalized. Or maybe, I just never bothered to look  close enough.

Update: Chris Saad, who inspired me to write this, has responsed from his own blog. Paid content highlights the challenges. This post has generated a lot of discussion from my friends as I meet them in person, interesting.

What’s Wrong With Corporate Social Media?

Well, A lot of things. I was invited to join a panel designed by Peter Kim (he used his blog to gather feedback) at the Web 2.0 expo to explore just those topics. We managed to get Charlene Li, and it was like a mini-reunion. Over dinner the preceding night, we decided to focus on four key challenges that we see across the social media marketing industry.

The Four Major Challenges of Social Media Today

1. How to get culture to adopt & get executives to buy in?

2. How to make social media “campaigns” work?

3. How do you measure social media?

4. Does social media even matter?

Folks who blogged the session:
There were a handful of folks who live blogged or reported the sessions (a rarity these days, thank you) and rather than I rehash what we said, I’d rather let you go see what they wrote:

  • Susan Etlinger from the Horn Group
  • Jennifer Leggio, Zdnet
  • Holger Nauheimer
  • Mia Dand
  • Michael G. Cayley
  • Shanee Ben-Zur from Voce
  • The Four Fail Whales of social media, CRM Magazine
  • Audio: Charlene has now posted an MP3 of the session, listen in.
  • For additional information, we made the session interactive and encouraged everyone to write back their thoughts and solutions using the #smfail tag. I’ve looked through the hundreds of tweets, and there weren’t a lot of solutions but mainly retweets and folks tweeting what was said on the panel. It was great to be with my former colleagues, if you get the opportunity to work with them now, I consider you very fortunate.

    I’ve helped dozens of companies define their social media strategy based on research. Often, we conduct custom research efforts to evaluate first if their customers are using these tools (technographics) then we often talk with many stakeholders to find out their thoughts on social media.

    Sadly, in some cases, brands that had active customer bases using social technologies were not ready to participate themselves due to culture. Whether is paralysis, legal, or a cultural influence from management, or even location (I did a tour in Japan to find out how social media is growing there).

    One example that comes to mind is a financial company I worked with, they are one of the ones that have an incredible amount of money –and a lot at risk as their customers were on the verge of self-connecting to each other without their account teams involved. Despite the clear business need to ‘fish where the fish were’ we advised them not to participate as their internal culture was not ready, there were too many roadblocks.

    Recently, after a presentation I gave at the Ominture Summit last week, I was able to meet the marketing manager at Apple who’s responsible for social media. While I’ll respect the privacy of our conversation, I know the impacts of culture on deployment.

    What about big companies? Yes, they are a unique beast, and typically organize in what I call the ‘Tire’, where adoption happens at the edges of the company. Let’s lean on IBM’s Adam Christensen who presented this slideshare of how big blue was able to filter social computing throughout the company.

    What other companies really live and breathe social computing throughout their DNA? Facebook, Google, Microsoft, SUN, and of course any social media vendor.

    Love to hear your thoughts on these questions that many struggle with:

    1) Does culture impact adoption of social technologies within a corporation?
    2) Even if customers are using social technologies, and the culture is not ready, how will you convince the powers that be?
    3) How do you change a top down culture to a bottom up?

    Thank god for the recession, as now the social media gurus are on the way out.

    One of the challenges of the social media industry, oh, and in case you haven’t noticed, there are a lot of challenges, is that self-proclaimed gurus have appeared from everywhere. In fact, the recession is going to cause those who are unemployed to experiment with the tools on a personal basis, giving them ample ammo to update their linkedin profile as a social media expert category.

    But isn’t that the point? Shouldn’t everyone be able to get into the action? Of course, yes. However times are different now, with budgets under scrutiny, layoffs at hands, companies don’t have time for gurus filled with opinion, over-used case studies, and empty books. I was inspired by this charged article: ‘Like pedos in a playground‘ from the Register that exposes some of the weaknesses of the space.

    [The recession will force practitioners within corporations to start to focus on measurable results, as a result, they will seek advice beyond opinion and gut instinct]

    The recession. This is going to cause a purging of the opinion-makers, pontificators, and the gurus to be passed up as companies need to make decisions based off intelligence, information and references of previous success. Why? their very jobs are on the line, as they have to be accountable for their budgets within their corporations, and demonstrate a return on investment to their management beyond ‘awareness, buzz or thought leadership’.

    Aren’t I being a hypocrite myself? Yup. I’m no longer a practitioner as a community manager at a large corporate, nor do I work at a social media vendor helping brands, so in many cases, I too, am looking in the mirror. I write this with a lump in my throat, and it’s a constant reminder that if I’m going to give advice it’s important that I back it up with fact, data, insight, for business people to make business decisions.

    So, expect the real practitioners (you’ve see the list right?) to focus on moving the needle to create actionable programs that generate leads, increase sales, decrease support costs, or make innovation more efficient–their jobs are on the line, and they don’t have time for “Gurus”.

    Some companies are wary of personal brands
    Last week, I spoke to a social media strategist as a very large consumer packaged goods company, he expressed to me over this client call (called an inquiry) that he was concerned about employees getting too popular due to their personal brands and as a result, getting pulled right out of the company.

    [Despite that social technologies can improve customer relationships, the risks may be too great for some companies to bear, as a result, some corporations will shy away from allowing employees to have personal brands]

    Personal brands can bring trust to monolithic corporations
    In the age of transparency and conversation, brands know they need to join customers where they are, and that often means in social sites where real people are having real conversations –it’s about building trust. As a result, social media marketing continues to be adopted by brands; I help them daily.


    Examining the risks of personal brands
    Personal brands are indeed a powerful tool, for one, it’s helped me get my current and previous job, and it will likely be a factor for my next, however there are a few risks to brands:

    Risk 1: The personal brand is a cost to the company: Why let employees build their own brand on the dime of the company or leveraging the brand of the employer?

    Risk 2: The now popular employee is likely to get poached: Perhaps a common concern I hear is that competitors can easily identify the stars, and hire away these folks along with their market reputation and google juice.

    Risk 3: Employee exits leaving a chasm to fill: In the modern workforce, we hear less of lifetime employees seeking pension than we do of job migrants, or career gypsies that move from company to company every few years. As a result, after they’ve built up trust with the market using social tools, they leave the company, and a gap is left that the brand can’t fill.


    How companies respond
    Brands respond to these risks in a number of ways, I’ve categorized them based on level of sophistication.

    First Reaction: Keep marketing faceless: Lean on traditional marketing, avoid human voices to come through.

    Second Reaction: Approach with team or hybrid approach: Rather than encourage personal brands, you may instead see corporate team blogs that have an equal weighting to employees. Another example is with Dell and Oracle employees who fuse their name with their employer –it’s both personal and professional.

    Third Reaction: Let the customers be the product face: Perhaps the most sophisticated way to market a product isn’t to put your employees on the product blog, but instead, your customers. I don’t see too many examples of this currently, but you can expect this to be an approach in the future.

    Fourth Reaction: Allow personal brands to proliferate: Some companies allow for employees to create their own blogs, generate revenue on their blogs, and be who and what they want.

    Portable brands desirable in the age of career gypsies and job migrants
    It’s rare to hear of the life long employee who retires after 40 years of service with a fat pension, in fact many workers today move from job to job –even more frequently in the tech industry. In the end, personal brands within the enterprise are inevitable, just ask Dan Schawbel if anyone wants to track new talent, or hire Generation Y, they’ll have to accept that individuals will have personal brands and they are portable. In fact, recruiters are often seeking on forums, blogs, and social networks to seek out talent.

    Personal brands here to stay, with increase in adoption during recession
    In my recent post, I pointed out that no matter how hard you work, or how smart you are, you can still get layed off. As a result, expect an increase in professionals to be on social networks like Facebook or LinkedIn, and using conversational tools like blogs and twitter to promote their offerings. The savvy career gypsy will build this up before they need a job.

    Now that I’ve put all the options and variations out there, I’d love to hear what you think corporations should do to protect their resources (brand, talent, and time), as well as build trusting relationships with customers?

    A few weeks ago, the Motrin Moms kerfuffle blew up and I tracked it by the numbers just a few days after the explosion. Nearly three weeks later, it’s time to revisit the incident to see what’s happened.


    [Brands that get punk'd by social media have an opportunity to quickly respond and enable the groundswell to pirouette the energy towards a positive direction]

    Running the numbers you can see interest has piqued for Motrin:


    motrin_google
    People are curious: Google insights indicates a spike in searches for the term “Motrin”.

    motrin_insight_compare
    There’s more interest in Motrin than other competitors: comparing terms “Motrin” to “Tylenol” and “Ibprofen” other brands in the space, there’s a peak that outperforms the market.

    motrin_alexa
    Alexa, a third party traffic monitoring tools, shows a lift in traffic to motrin.com

    motrin_compete
    Compete.com, a third party traffic monitoring service, also shows a lift in traffic to Motrin.com

    motrin_homepage
    Despite this interest the Motrin has generated the corporate webpage still has an apology dated from Nov 20th (today is Dec 4th)

    Motrin misses an opportunity by sulking in the corner
    Unfortunately, not much has happened from Motrin’s behalf. The motrin.com corporate homepage is dated with an apology from Kathy Widmer dated Nov 20th and referencing an apology “4 days ago”. Whether or not you think that Motrin did something wrong with their ad or not it really doesn’t matter, as there’s an opportunity being wasted that Motrin should leverage. My job is to help the largest brands in the world understand and benefit from connecting with their customers using web tools, and if motrin were my client, I would advise them with the following:


    [Rather than wallow in sorrow, Motrin should leverage global interest in it's brand. Rather than telling customers what pains them, Motrin should benefit from word of mouth by asking the community "what pains you?"]

    Rather than cower in the shadows, Motrin should:

    1) Stop Reacting and Develop a Strategy To Lead: Learn how to Judo throw by using the weight of the Groundswell to aid you. Before deploying any tactics, first understand that there are many eyeballs now on Motrin and in some PR circles this is good press from bad –leverage it. If you’re listening to a recent podcast episode of For Immediate Release there’s global attention on Motrin within the social media circle that is quite amazing since the product is only sold in US.

    2) Remove the Apology: Suck it up and take that down the mea culpa. In the scheme of things, not every mother was insulted, and the Motrin moms is not indicative of what’s being said by moms that didn’t even see the video ad. Motrin has responded quickly, removed the ad and given a sincere apology in my opinion. Great, now it’s time to move towards the path of recovery.

    3) Listen to the Community by Asking “What Pains You”: At Forrester, we use the term “Listening” as one of the objectives for social computing, suggesting that brands can better understand their customers by gleaning insight to what’s already being said. Here’s the opportunity for Motrin to leverage the Groundswell, since many members have already created their own ads (such as this clever play on big boobs), build off the momentum and develop a program to ask mothers what pains them. Obviously telling them what pained them, and playing the empathy card backfired, so instead, just ask them. Allow them to tag the videos, photos, and blog posts with #whatpainsme.

    4) Allow the Groundswell to Advertise on Your Behalf: Now that this content has been created by the community, aggregate the popular posts, tweets, video and images on your blog, or corporate homepage, and allow the discussion to continue. Fortunately for Motrin, the worst criticism has already occured, so by even including negative submissions shouldn’t be a problem. By doing this, Motrin will be the center of discussion around pain –which can offer a solution with their relief products.

    The above example is advice I would give Motrin if they were my client, but I’m sure there are plenty of other ways to allow both the community and brand to win.

    That’s just my take, if you were reporting to the VP of Marketing at Motrin, what would you recommend they do?

    This post is a response to last night’s event at the Horn Group called Is Social Media Killing PR? Sam Whitmore moderated Kara Swisher (media), and Susan Etlinger (PR) and me (analyst) for a lively debate, which resulted in the crowd chiming into the issues. I don’t think the conversation evolved as far enough as I wanted to see it go, so here’s what I wanted to share.

    For years the Public Relations industry has ironically one of the worst reputations –esp since they are hired to look after the reputations of their own clients. Things only got worse as some brands got punk’d; the introduction of self-publishing tools that allowed anyone to connect to each other using social technologies, causing a shift in power. We’ve already talked to death about the risks and the changes that are happening to this industry, yet I’m hoping to elevate the viewpoint out of the gutter and focus on the larger opportunities –and risks at the industry level.


    Four Business Opportunities for the Evolved PR Agency:

    1) Enhance Existing Functions
    First of all, some things that are already in place need more focus, for example, it was discussed last night that now that influencers (press, media, bloggers, analysts, customers) can directly be reached by clients –PR professionals can be bypassed. In fact, when you look closely, everyone’s doing press, analysis and media.

    A) Be a filter for clients: There’s a tremendous amount of noise now being created, creating an opportunity for PR folks to filter, sort, and prioritize what matters. You’ll need both access and understanding of brand monitoring tools as well as the ability to see patterns in the noise.
    B) Council rather than conduit: Although strategic council has been happening for many years, now that clients and influencers can connect directly, this could result in a business shift resulting in more focus on coaching, less on pitching. Mary Trigiani suggests the same.
    C) Extend Social Strategy: Most firms don’t have a strategic response to social media across the whole firm. While the young digital natives may use these pervasive tools, they lack strategic insight, yet the immigrant executives don’t fully understand how these tools change the communication lines.

    2) Differentiate
    Two potential customers were at the event, and both lamented that they can’t tell the difference between one firm to another –they all offer similar promises and relationships. The opportunity for PR firms to be more vocal in the areas of expertise they provide are at hand. PR firms should become part of the community they serve –regardless of the client they have on the accounts receivable. Instead, be known as the expert firm in your industry, not just pitching, but also serving and helping beyond your clients needs. There’s a business opportunity here for some smart entrepreneur to create a VRM system that allows clients to recommend PR firms to other brands.

    3) Extend to the Entire Customer Lifecycle
    I alluded to this yesterday in the panel, but this is perhaps the single largest opportunity for the evolved PR firm. As we know “Public” relations involves prospects and customers, social technologies mush up the lines between when this starts and stops. As a result, PR firms how learn how to offer value to other areas of the organization beyond corporate communications can find new revenue buckets in product marketing, product management, product support, and beyond.

    4) Fix Your Own Damn Reputation
    I’ll hit this again: it’s very ironic that an industry so focused on keeping the image of their clients reputation pristine is unable to shine their own shingle. Use these social tools to tell your story –and to get your clients to tell your story –on your behalf. Although the HORN group was the only firm to take this challenge head on, the industry as a whole needs to fix this, but it can’t be insular within the PR community, but looking outside the circle of pros.


    Related Resources (I’m updating this list)
    Nov 14th, the next day: There’s really a tremendous amount of different voices, angles and perspectives on Wed’s discussion, read below.

  • Do read the responses from the attendees in twitter (the audience has the control), they tagged it with #prblog.
  • Ravit Lichtenberg Live blog: Is Social Media Killing PR? Live blogging from girls in tech and Horn Group.
  • Kara Swisher was taking video, and posts her thoughts, although she can make execs shake in their boots, she really makes me smile. Find out what the CEO of Yahoo and I have in common.
  • Cece (a marketing stakeholder) said we were taking on baby step topics and missed focusing on how PR should meet the need of marketing –and the business. She’s right.
  • Susan Etlinger, our host and panel mate gives her thoughts
  • Sam Whitmore the moderator poses some additional questions, I think we’ve all concluded last night’s event really just opened up far more discussions, this is all healthy.
  • Jennifer Leggio was covering this for ZDnet, and has published why PR is not dead, but shows it’s weaknesses.
  • There are photos coming in tagged Horn Group, it’s a thrill to see how all this feedback and media comes in real-time.
  • Charles Cooper from Cnet says that PR is killing PR, and that I focus to heavily on Social Media (which is my primary focus, yet he has a point)
  • Charles Cooper from Cnet says that PR is killing PR, and that I focus to heavily on Social Media (which is my primary focus, yet he has a point). Thanks to Chris Kenton for backing me, appreciated, thanks.
  • Kenneth suggests that Marketing and PR still has a core strategy –social should be left to the side
  • Adrian Chan publishes an email he had with a PR pro at Edelman discussing what we did and didn’t get.
  • Leave a comment below if I’ve missed anyone, sometimes trackbacks don’t show up

    Photos from last night’s event:

    111220081063111220081065111220081066111220081067

    I started out my social media career as a community manager, and can see why several community managers have expressed some concerns about our over connected world. It seems that some of them are cursed with the very technology that gets them paid.

    You see, some community managers have a hard time separating their personal and their professional lives. In some cases, I’ve heard that the members of the communities they serve become so comfortable with them as a social contact that they send them friend requests in Facebook, (where some community managers may have personal and family info) follow their tweets, and connect with them in many ways.

    As a result, the work of the community manager is never done, they’re now completely connected to the community they serve. While sure, an effective for way to build trust and really know your community at work, this leaves very little personal space. In some cases, I’m sure that community managers will get requests in Facebook to solve issues, or take feedback, as well as exposing their personal life to their customers.

    Perhaps one of the most scary cases are those of troublemaker community members that become so livid when they are reprimanded or removed from a community that they seek personal revenge against the community manager, and are able to find out way more information than any phone support person would have supplied.

    As a result, expect community managers to create more than one personal identity, withhold personal information, and potentially suffer from burnout or frustration at work and at home. These are the challenges of being connected to the community you serve –even during off hours.

    Love to hear from the community managers out there, what are the other hazards of the job?

    Left Image: I was stunned by the diversity and co-existence of thousands of species at this tropical reef exhibit

    Change is coming, whether you like it or not. Jive software, a company I formerly cover slashed 1/3rd of it’s workforce (see update below), likely in response to it’s own VCs suggestion to slash costs to become cash flow positive in the now famous RIP Good Times preso. Cutting 33% closer to 20% of your body off to make sure you can still float in a few years is cutting very, very deep, no doubt customer service will be impacted, and a slow down in the product roadmap.

    (Update: I spoke to Sam Lawrence of Jive’s marketing last night, and learned that the layoffs were actually closer to 20%, not the 33% that was reported, I’ve since updated the post)

    Coincidently, I’m having a meeting with a VC over at Sequoia (have had this planned for a while) and believe me, the economy is one discussion we’ll be having and how it applies to the social media space. I’ll also discuss how this one is different from the dot com bust.

    On Monday on my “day off” I went to the brand new California Academy of Sciences in SF, and was amazed and stunned by the phillipine tropical reef, one of the largest of that kind. There were thousands of species of fish within this exhibit, that many were co-dependent, co-operative, symbiotic and in some cases –parasitic.

    I see the world through an ‘internet lens’ everything I see or do relates back to my passion, web strategy. I saw a quote that was gilded to the floor that completely resonated with me, and the changes in our reef.


    [It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change -Darwin]

    Expect to see more slashes and cuts, even from strong and intelligent companies who are gearing up for the long haul, In a morbid (but necceary function as an analyst) I’m keeping track of these layoffs, but also feature new hires and jobs.

    Recommended Reading:
    Here’s a few opinions and news that I’m reading that discusses the impacts of an economic downturn and it’s impact on social media, and the web and general. Really take the time to read these.

    O’Reilly Media: Effect of the Depression on Technology

    Video: Tech Players that May Benefit from the Financial Crisis

    Richard MacManus of RWW What’s Next After Web 2.0

    Adage: Even Search Not Immune to Financial Malaise

    SFGate: Venture capital slashed $476 million in quarter

    Fast Forward: In uncertain times, Enterprise 2.0 takes the stage

    Direct Marketing News: To gain market share in a recession, try social marketing

    Dave McClure: Fear is the Mind Killer of the Silicon Valley Entrepreneur (we must be Muad’Dib, not Clark Kent)

    If you have any reactions to any of these articles, or want to submit a related one, please leave a comment below.

    Here comes the humans to mess it all up...Darwin Quote
    Picture 044Picture 053Picture 080

    I’m spending my quiet time thinking about what lays in front of us, in fact, given the market data, there’s troubled times ahead not just for tech, but the US economy which of course impacts globally, as we’re major importers of goods from other nations.

    I was part of the first web bust, at a high flying startup that had 5 splits then came crashing to Chapter 11 –twice. I tell my story about Exodus and remember it vividly, as without recalling history, we’re doomed to repeat it again.

    In this post, I’ll compare and contrast how this was different from the last dot com bust in 2001, but I’ll do my best to provide an objective viewpoint –not one filled with panic.

    Compare and Contrast: Dot Com Bust and Web Two Point Doh

    VC funding
    I don’t have access to a 10 year funding graph, but this article shows a rise in the number of silicon valley companies that were funded during the first web wave. While Techcrunch shows a noticable increase (a doubling from 05-08 in funding dollars from 2006-2008) in funding for the second wave, but shows VC confidence drastically lowering in 2008.

    IPOs
    In the first web wave, the exit strategy was IPO, where private equity was then made available to the free market, selling the ownership of the company to shareholders. In the second round, most companies exit strategy weren’t M&A but instead are acquisitions, or merger activity.

    911 and Credit Crunch
    This tragic day was the start of the collapse in the United States and other global partners. For the second wave, this was triggered by the credit crunch, perhaps very disastrous as well, and appeared to hit us out of nowhere.

    Stock Drops
    In the first dot come bust, many industries were reeling from the impacts of 911, (airlines come to mind) this set off a different kind of panic. We saw stock prices of dot coms bottoming out, then becoming penny stocks and resulting in a few companies collapsing. While some of the big players like Google have seen 60% devaluation of their share prices, most startups, being private, haven’t be hit in this way.

    Market Performance
    I’m not a financial analyst, so I can’t give much insight to this arena, but although the Dow Jones Industrial Average Index is currently at 9387 today, we forget that it was even lower at 7528 in October 2002, this Google Finance map (set to 10 years) shows.

    Revenues
    In the first web wave, while many were able to stand the test of time with actual revenues like Paypal, eBay, Yahoo, Weather, Google, Amazon, Linkedin, for many others it was about getting eyeballs, brand awareness, and pumping stock prices with announcements. Today, we don’t hear of many stories of companies who are now hand over first profitable, in fact, the largest players like Facebook, Twitter, and other social networks still struggle with defining clear revenue model.

    Layoffs
    The first web bust was known for the massive hacking of jobs, I remember many being layed off in silicon valley, and they fled to other tech centers like Seattle, Portland, Texas, and San Diego. I also recall that the number one migration of jobs in the valley was to become a realtor. I shifted to the banking industry (intranet) but would be somewhat hesitant today given all that’s gone on.

    Innovation
    The first web boom was funded by VC and private investors who had to put in a substantial amount of investments to get companies lifted off the ground, as a result, there were just a few players in each space. Today, development technology and open source have enabled companies to get launched from very little funding –sometimes none at all. Of course, this comes with a downside as you soon start to have too many players in one space, my list of community vendors caps out at 90 companies doing the same thing. Update: Jeroen de Miranda, points out in Twitter that today’s web delivery is more software as a service, not on premise software, making adoption faster, cheaper, in many cases.

    Recruiting
    Barbera Ling in the comments below nods to the point that recruiting will suffer now as it has suffered before. One contrast however is that now anyone can build an online reputation, and network with others with little technical skill using social media tools.

    I’d love to hear your compare and contrast of the first web bust and what could happen in the next few years.

    With the financial crises impacting not just US but global markets, as an industry analyst focused on social computing, I’m going to watch how this impacts layoffs in the tech and social media space.

    While I take no joy in seeing jobs get cut, I do feature recent ‘on the moves’ and have links to many job sites related to social media. It’s only fair that I point out the new hires as well as the exits.

    To be clear these layoffs aren’t just hitting the social media space, but will hit other industries. Most recent at the top, in some cases these are hard to confirm as sources from company feed rumor sites, so take them as you will.

    Layoffs in the Social Media Space

  • Oct 14: Jive lays off around 20% of worforce
  • Oct 13: Redfin lays off 20% of workforce leaving 75 (link via TomCummings)
  • Oct 10: Fast Company, which has social network for website and popular videoblogger, lays off 20
  • Oct 10: Seesmic, a video conversation player lays off 7
  • Oct 6: eBay to lay off 10% of workforce to streamline after recession.
  • Oct 3: Gawker blog network lays off 19, and brags about it.
  • Leave a comment below with a submission, or watch these tweets with the tag #techlayoffs, there are three there now

    Techcrunch has a layoff tracker, it’s like we’re seeing f-d company all over again.

    Most of my readers are interactive marketing professionals, they are experimenting, using, or living in the social media world –for some, it’s part of their very being and defines them professionally, and personally.

    Social Media (which has gained popularity in the last few years) has never stared down an economic downturn, My CEO sees at least three to four quarters of reduced technology spending, and Chris Kenton sees even a more dire situation.

    Four Social Media Questions You Must Answer During an Economic Downturn Whether you’re a CEO of a social media company, a professional blogger, or a community manager at a large corporation, you’d better be able to answer the following questions:

    1) Is social media usage going to increase or decrease during a recession by consumers? In the last tech bust, I remember many tech professsionals going back to school, becoming real estate agents, or fleeing silicon valley, will migratory usage patterns evolve in social media? Yet even if usage of these tools increases, yet do these consumers have buying power?

    2) Will brands and marketers increase spending on media that is generally unproven? Blog network Gawker recently laid off staff in anticipation of advertising dollars dried up, the key word here is anticipation, it hasn’t fully hit yet. Anecdotal case studies are available everywhere about social media, but hard ROI measures are hard to find –will marketers lean on the guaranteed 1-5% return on traditional advertising?

    3) Will these be tools to improve communiation and collaboration within the enterprise? Time to think internally here, with travel prices going up, companies reduce travel plans, will these tools increase productivity, or will face to face meetings still prevail? Are these tools effective in communication beyond the ’shiny’ factor?

    4) Will the economic downturn force efficiencies to occur by shedding companies that lack innovation? The dot com bust was considered a market correction, is it now time to get rid of the new wave of dot coms that are missing vowels? or are the operating costs just too inexpensive that they will still thrive –and keeping markets crowded.

    I’ve lightly weighed both sides above, I have my ideas, but would love to hear your thoughts below, I’ll state mine too.

    Update: this post by James Duthie has thorough analysis, a must read.

    The rapture of social media paralyzes some brands
    Recently, I’ve spoken to a few large brands that have been getting the sermon from a few social media consultants about damnation to hell if they don’t convert. These type of scare tactics include suggesting radical change need to occur for brands to join the conversation, as well as handing over all control to the marketplace, should everyone in marketing can pack up and go home early?

    Most brands aren’t firing their marketing group
    In reality, this is rarely the case, (well cept for Dell, and a few others who had trial by fire) most brands slowly adopt these tools and the communication changes that happens, and I’ve never seen a brand completely turn over messaging control to the marketplace completely, have you? While there certainly are changes afoot, as technology impacts progress, there are course corrections happening at many companies, but I’ve yet to meet one CMO who’s fired the MarCom and Communications team in lieu of a team of external bloggers.

    For conservative brands, take a pragmatic approach
    Instead, perhaps the best way for conservative brands to move forward is to focus on three things:

    1) Understand if their marketplace is using these tools, and how. First see if your prospects, decision makers or influencers are using these tools, do a study first, take inventory.
    2) Next, have a goal, or an objective, rather than jumping in rather than being pushed in because someone else lit you on fire. Don’t allow fear to be the sole driver of your decisions, instead, focus on what success will look like.
    3) Experiment internally with these tools where it’s safer, where mistakes can happen without the ridicule of the public looking on.

    Focus on clear business strategy rather than allowing someone to light you on fire
    While there are certainly changes happening in communication and marketing, this doesn’t mean you throw out the playbook, and react. Instead, for conservative or risk averse cultures, focus on understanding the changes in your market build a plan and experiment where it’s safe. When you look at moments of great change, see how history remembers the difference between radicals sand revolutionaries.

    Let’s be objective, there’s a lot of challenges (and opportunities) with the social media industry, I’m cataloging them and tagging them ‘challenges‘.

    Rodney Rumford bluntly points out in this latest post about 33 Brands That Suck on Twitter (be sure to read the comments for more color). Most of them have been “Hijacked” (their corporate name scooped by an individual) and many remain dormant. Having a successful brand in Twitter is few and far in between, and here’s why.

    Why Brands Are Unsuccessful in Twitter:

    Brands are slow to the party
    Who knew that Twitter would become a phenomenon –esp among the social media circles and media? Most brands are too late to come and squat on their names, some savvy individual had the foresight to get the name (either deviously, or out of brand passion) brands like @disney, @marlboro are already reserved by individuals.

    Corporate domain: “out for lunch”
    As Rodney points out, some of the brands have registered their domains, but choose not to participate, they’ve just quietly reserved it, unsure about how to wield this slippery conversational tool.

    Not personal enough
    If a brand is lucky enough to have parked their domain, they’re now ready for the next challenge: producing relevant content that resonates with the audience. What should they tweet about? Obviously there ’s a business driver, so announcements, re-echoing blog posts, and responding to direct (but safe) questions make the best bet. In many cases, there is no individual tied to the account (listed or picture) and no one knows if they’re talking to an intern, or the CMO.

    Too personal for you
    Yet brands have another challenge? Do they get into the minutia of the daily life as many Twitter users do: “updating my brand guidelines to include twitter rules of engagement”, or “attending marcom meeting about next week’s big acquisition”? Brands are at risk to either alienating followers –or just looking well, fake.

    Campy persona wears thin
    Some brands may take their brand too far, acting out the brand persona with pro-brand content that after awhile sounds like a trite recording of “want to feel better @jowyang, buy our product for relief” -soap style messages.

    Big brother is watching
    Some brands have started to ‘follow’ other members, hopefully to increase the rate of them following back. While complete normal protocol in Twitterville, many users get ‘freaked out’ when a brand follows them.

    Hybrid brands of personal and corporate won’t last
    In the case of both Oracle and Dell (and others I’m sure) many of their employees straddle both their personal sharing, as well as representing their brand (rather well actually). They choose names like @OracleJulio or @RichardatDELL, and really add to the conversation, both being personal, and promoting the attributes of the company. Unfortuantly for @OracleJulio’s situation, he moved on to greener pastures, and had to somehow get a name change, he’s now @socialjulio.

    ROI unclear
    What’s the ROI from Twitter? A very difficult question to answer, yet you’ll find the solution if you can also measure: “Whats the ROI of a conversation in real life”. Since many brands have an objective (return profit to shareholders or owners) ensuring this is a high priority task will be difficult for many corporations. (read more on broadstuff)

    No one gives a care
    Some brands, regardless of how they use twitter, their profile pictures, or what they talk about, no one will care. Either their product isn’t known, or not releavnt, or the brand hasn’t done due diligence to first find out if their market is even in Twitter, as a result, tweets go unheard in the forest, yet no one minds. (Update: I’ve added this one a few hours later)

    Despite these many challenges, there are a few brands that are doing it right, take a look at ComcastCares, one who’s received press attention for responding to angry twitter community members. Of course, the real challenge is if they can make real long term changes to company’s products –or are they just a mouthpiece to dampen the social media amplifiers.

    Got other reasons why it’s a challenge? Or have solutions? Leave a comment…

    This post is not about Thomas vs Simon B, but instead about the long term online impacts to personal and corporate brands.

    A focus on online reputation and brands
    I’m hesitant to publish this post, not because I don’t think it’s important, but instead, I don’t want to be caught in the cross fire between Thomas Hawk and Simon B of the SF museum. My focus is on the online impacts, not the specific quarrel these two have around photographers rights, I wasn’t at the museum that day, so I really can’t comment on what happened.


    [Seventy-seven percent of recruiters report using search engines to find background data on candidates. Of that number, 35 percent eliminated a candidate because of what they found online... -StarTribune]

    First of all, please note that Thomas Hawk is a friend of mine for a few years now, he supported me at my first Lunch 2.0 at Hitachi, and a blogger dinner with the CEO of Hitachi Data Systems, and even took the picture I use everywhere (see right), I admire the man’s work, we will continue to be friends for many years.

    A personal brand is damaged
    Yesterday, he published a post outlining a conflict he had with a director at a SF museum regarding photographing in public. The post characterized Simon B (I’m not using his full name as I don’t want to make the situation worse) as an a-hole. Thomas’s blog is well read, his social media prowess strong among his community and in true social media fashion, it spread to Flickr, Zoomr (where Thomas is the CEO), Friendfeed, Twitter and perhaps the biggest driver –it was seen by millions on Digg (including a portrait of Simon).

    Today’s resume is your Google search results
    Today, if you do a search result and examine the first search engine results page (SERP) you’ll notice that as of today 9/10 results are tied to Simon being an “a-hole”. Perhaps most importantly the first two results are of Thomas (we know most clicks start there), the only one that’s not is Simon B’s Facebook profile, which has very little info.


    [Your relevant resume is your Google Search results. You should spend as much time managing your search results as you do your printed resume]

    Simon had very little online footprint to start with, and now it will be dominated online by all of these social media elements. Even if Thomas chose to change the title of his blog and flickr, the Twitter, tailrank, and many other online echos will forever be archived –Simon’s online reputation is forever linked to this incident.

    Essentially, Simon B’s online reputation has been burnt.

    The Long Term Impacts of Online Criticisms on Personal Brands
    For Simon, these online results are a big impact, we know that many recruiters use the web to find candidates, and seeing several results like this could result in a recruiter passing up a candidate. If a recruiter doesn’t care, or doesn’t see this, hiring managers are likely to do Google searches on the individual finding this. Of course, this could swing towards Simon’s advantage, some museums or businesses may seem him as serving as a defender of the property, if he positions himself correctly. Perhaps the biggest damage is to Simon’s personal and family relationships, who will see this incident online for years to come.

    Key takeaways:

  • For those that don’t already participate online, and have a small digital footprint, they don’t have a strong platform to stand from.
  • Anyone is susceptible to brand damage, even if you’re not in this space (Simon is not in a web professional)
  • Bloggers with large social media platforms are incredibly powerful, and must recognize the long term impacts of their actions.
  • Businesses should assume every customer (and employee) is capable of impacting an individual or company’s online reputation
  • Companies should already have a crises plan ready to deal with online criticisms, read this article from CBS on outsourcing brand damage experts
  • Simon B may have to buy search ads to get his printed resume or story correctly positioned
  • Customers and Corporations should first consider the Company Customer Pact
  • Update: To be fair, if Simon or the museum come forward with a statement, I’ll update this post and link to it.

  • Thomas Hawk has left a thoughtful comment below, see comment #28
  • A similar blog post (and discussion on Friendfeed) has started to take place.
  • A post reviewing Thomas’s change and update to the post (it now reads “jerk”)– since the community reaction has been so fiery
  • August 13: The Museum has made an official statement, suggesting we move on –I agree.
  • Dec 3, 2008: It’s a few months later and Thomas Hawk’s blog still shows first for searches on Simon’s name in my SERP, of course, your results could vary.

    Like every industry, the social media industry is plagued with problems that for now, are slowly being solved. It’s important to note the challenges in our industry in order to first identify them and eventually overcome them. There is no indicator from our data that Social Media will go away, in fact the adoption rates of Generation Y, indicate this is a trend, but with that said, let’s first examine the issues in the industry:

    The Many Challenges of the Social Media Industry

    A current lack of profits
    The social media space, a movement where anyone can participate has resulted in low or no revenues for most participants. For example, there are millions of bloggers, and only a few of them can claim serious revenues, and even a smaller subset have built media empires. Aside from the users themselves, many businesses focus on generating hits, visits, or registered users and will figure out how to monetize. Take a look at social networks, some valued at billions, yet we’ve yet to hear success stories of hand over fist revenues. Like the universe, stars and revenues are far and few in between, a majority of creators will not generate revenues.

    Some innovation spurred by funding –not revenues
    Both a problem and an opportunity, investors (VCs) continue to inject money into this space –often funding unproven business models or one-off technology. In more mature industries, it’s unlikely we’d see such an influx of spending, but often because innovation was spurred off the success of actual revenues. With so many companies being funded without actual revenue, the market is exposed to a several variants of the same feature.

    Low barriers to entry make competition cut throat
    Commodity software is always a concern, and when this occurs, there are so many entrants the market is confused –unable to determine who to purchase from, and competiors may eat into each others margins. Take for example the crowded community platform space (aka white label social networking) industry that has over 100 vendors –all offering very similar software.

    Excessive noise drowns out signal
    With everyone able to create content and share the details of their personal lives in detailed minutia, the problem of excessive content becomes an issue. Every 60 seconds, 13 hours of content are uploaded to YouTube (says YouTube employee), and millions of tweets are generated every day. With so much content being created, how will one filter out what’s important?

    Amateurism threatens professionalism
    Nodding to Andrew Keen’s criticism of the dangers of amateurs creating less-than-professional (and sometimes incorrect) content then spreading it prolifically this has caused some concern for those who consume this content. The problem of course, isn’t really the quality of content, but the ability to quickly decipher what’s important –and what’s not.

    Marketers move in without community consideration
    Wherever people move, marketers follow, while some do it smart and savvy, many will approach it from a different style. For example, the concept of pay for post, social media optimization, bacn, spam-like content on blogs and social networks, and other marketing noise is and will continue to be a challenge whenever communities congregate. (updated per Jennifer’s suggestion)

    Corporate and personal brandjacking
    Becoming more and more common, brands –and individuals– can easily be brandjacked as others take their user name, domains, and assert themselves as someone else. Given there are hundreds if not thousands of websites to monitor one’s brand, squatting these names will increasingly become difficult over time.

    Lack of standards causes disparate experiences
    Although better than many industries, the open web still slowly moves towards common standards of logins, social graphs, and content types. Even protocols like Google’s OpenSocial were designed to unite activities and applications across any social network, each container (social network) requires tweaking to customize to each platform, while some –like Facebook– don’t participate at all.

    Cultural changes cause resistance
    Without a doubt, this movement of self-publishing and connecting is a disruption to the marketplace, media, the buying cycle, and the marketing funnel. Generation old barriers are crumbling from a command and control viewpoint to an open and collaborative style of business and personal communications. With these radical changes comes resistance from those who were previously in power (media, management, marketers, governments) who are slow to adopt –and thus resist.

    Identifying true expertise challenging
    In experienced industries, track records are defined by years and sometimes decades, in this burgeoning new industry, it’s often difficult to decipher who is a true expert –and those that have actually performed a social media change to make a difference. Mostly, track records only go back a few years, and few can demonstrate a return on investment.

    Difficulty measuring ROI
    Despite many attempts to measure “engagement” or “ROI” there still is no industry standard to measure the efforts of social media at the personal –and corporate level. While many have developed their own ability to measure on a one-off way, there’s no industry way to quickly –and easily agree pan-industry.

    Conversational Marketing may not scale
    Peter Kim points out that social media marketing may not scale. Primarily due to the 1:1 relationships that are needed to engage in conversations, it’s difficult for one person (despite how large their platform is) to cover all the conversations in a given market. Be sure to read the thoughtful comments. (added August 23)

    Rumors can impact stock prices
    This example of a rumor spreading mis-truths about Steve Jobs health actually cost a dip in Apple stocks. With rumors flying around more easily than the time it write an email, the internet often doesn’t have time to self-correct before bloggers hungry for link bait jump on, adding to the flames. We often see this pile on behavior during blog fights too.

    Hyperconnected can’t scale
    For some hyperconnected folks on blogs, twitter, friendfeed and facebook, they don’t scale as everyone reaches out to them, as a result, they miss deadlines, opportunities during this long battle to stay up to speed. Technology has created this problem when the world flattens out and there are no more gate keepers, I thought it would be fun to be like this, but in reality, it’s a curse too.

    I realize this post could infuriate some social media purists, but I wanted to provide an objective view of what I’m seeing in order to map out danger spots on the map, so we can collectively overcome them. I hope you read my other posts where I list out challenges of social networks, widgets, blogging and others, if you plan to run in this space, first know the hurdles.

    If you can think of other challenges in our industry –feel free to leave a comment, I’m curious to hear your reactions. (Update: On a related note, Jeremy Pepper is holding the experts to task)

    This post has now been translated to Italian, thanks Marco

    I find the colloquialism “You must join the conversation” a tired phrase legacy of 2006. It’s overused, oversold, thrown around and just not accurate.

    Many of the blogging authors are my friends, or I even work with them, so before I offend anyone, let me first preface with some context. When I think of online conversations, I think of real world ones, where people are engaging in dialog to and fro. For example: Typing conversations in messages forums, on twitter, on plurk, writing a blog post, leaving comments on blogs, or even friendfeed.

    Before we get too wrapped up in “joining the conversation” it’s important to first note that not everyone is creating content and leaving comments. In fact, we’ve published public data to prove this. See this profile tool, select a demographic and pay attention to the conversational behaviors we identify as creators (creating blogs, upload video or images), and critics. (rate and rank content or leave comments). Learn more about the different behaviors by reading this 8 slide presentation.

    To prove my point, let’s start with data: In most markets, (even youth) there are no bars that span 100% for creators. In fact, 18-24 year olds in United States only are creators 39% of the time. 45-54 year olds in UK only create online content a paltry 6%, although they are critics 11% of the time.

    So what does this tell us? Not everyone is part of the online dialog exchange. Not everyone will ever be part of the online conversation.

    On the flip side, I can influence my marketplace by not being part of the conversation. How? I can vote for content on Digg, tag content on Delicious, share feeds from Google reader, all of which flows into my Friendfeed where there are almost 2000 influencers reading. For my marketplace of web strategists and interactive marketers, that wouldn’t be the best use of my time, I can get more mileage by being a creator. The point is, I’ve the luxury of making that decision based upon my understanding of my community.

    Now this is not a suggestion that brands shouldn’t do anything, but in fact, they should first look at the social behaviors of their marketplace, and then choose the right activities to engage in. It’s important to note that “Joining the conversation” is but one way to engage.

    Therefore, we should first take into account that people use the web in many different ways (some are non-conversational) and before we anoint our entire communication strategy to be purely conversational, let’s first do some self –and community — analysis. As sometimes, the greatest behavior in a community isn’t conversations, it’s ratings, rankings, gestures, link sharing, profile creation, connecting, or just reading.

    I’m in the unique position as a blogger who interacts with journalists, popular ‘A-list’ blogs, and PR firms who present new stories and I’ve observed a trend that Popular Blogs and Mainstream Media appear the same I first started this discussion on Friendfeed, and now it continues here.

    In 2005-2006 the discussion around blogs was it’s potential threat to ‘kill’ mainstream media, newspapers, and magazines. As a result, mainstream media responded back, sometimes with negative attacks like ‘attack of the blogs‘. Segregation was impossible and eventually groups within mainstream media outlets started to create blogs on their own, often covering the technology sector or political arena, and many were used as a ‘personal column’ or a place to get more millage out of stories that were cut from editorial.

    Taking a closer look at the bloggers themselves, while there is certainly a longer tail of content (specific and niche blogs that will barely get a mention in niche magazines) yet the top blogs (A-listers) resemble the same editorial structure as mainstream medium or an editorial columnist. For example, some of the top tech blogs have a team of journalists/bloggers who cover different areas, there’s often a senior editor who reviews, shapes, or verbally let’s the authors know the direction of the site.

    See for yourself according toTechnorati’s top 100 blogs, you’ll notice that a majority of them are written by teams. Only a few are written by individuals, for example, out of the first 50, I only recognize Seth Godin, Robert Scoble, and Heather Armstrong’s Dooce.

    Godin, Scoble, and Armstrong’s publishing styles really that unique, as for decades, mainstream media has had editorial columns ‘opinions’ from senior editors, to write rambunctious, irreverent articles. Why? Unique opinion drives controversy –or at least new perspective– that attracts eyeballs. In many cases, the top blogs (either by team or individual) reflect that same editorial slant, in this case, we just call it “opinion”.

    Taking a look at the Public Relations industry, who are often asked to help influence coverage of their clients announcements, many times, they build relationships and interact with the top blogs just as they would SF Chronicle, the Mercury, or NYTimes.

    So what’s the difference between today’s mainstream press and a-list blogger ‘teams’? Is it quality? Not always. Is it timeliness? It varies. Is it the ability to leave comments? both styles have comments available. Is it personality? It depends.

    Perhaps the primary difference is the difference in niche (long tail) content written from first hand sources, and secondly, who will respond and leave comments on this post, I’ll be it’ll be primarily bloggers, not mainstream media folks.

    I prescribe to the believe that this evolution is natural, a new medium has been born, and with it comes a shift in power –human traits to organize and band together stem from our earliest tribal instincts. Not much has changed

    Peter Kim connects the dots in the comments, and notes that the blog PaidContent was just purchased by the mainstream media group Guardian for a cool $30MM.

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