Tag Archives: SNS

No surprise: Facebook wants to make money off advertising!

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The current economic engine for much of the Internet is advertising. This includes Facebook:

Facebook’s first experiment with paid ads was a flop. In 2007 it rolled out Beacon, which broadcast information on Facebook about users’ activities and purchases elsewhere on the Web without their permission. Facebook pulled the program after settling a lawsuit brought on behalf of Facebook users.

This time around, company officials appear to be proceeding more cautiously. David Fischer, Facebook’s vice president of advertising and global operations, says Facebook delivers ads that are relevant to users’ lives.

“This is an opportunity for brands to connect with you,” Fischer said. “When someone likes a brand, they are building a two-way conversation, creating an ongoing relationship.”

A lot is riding on getting it right. Last year, online advertising in the U.S. grew 15% to $26 billion, according to the Internet Advertising Bureau.

People familiar with Facebook say its ad revenue doubled to $2 billion in 2010, and is expected to double again this year as more major advertisers including American Express, Coca Cola and Starbucks climb aboard.

In February, more than a third of all online display ads in the U.S. appeared on Facebook, more than three times as many as appeared on its closest competitor, Yahoo, according to research firm ComScore Inc. Facebook’s moneymaking potential has wowed investors. Its market value is estimated at $55 billion on the private exchange SharesPost.

This should really be no surprise to anyone. As others have noted, the real magic of Facebook is not in the personal connections people can maintain but rather is in the information that users willingly provide. Moving forward, the trick will be for Facebook to do this in such a way that a majority of users don’t become upset.

I find the language here to be particularly interesting: users are entering a “two-way conversation” and an “ongoing relationship” with corporations. This is what corporations want but if users/consumers really thought about it, is this what they desire as well? While the user pays for particular products (and perhaps is willing to advertise a product for free), the corporation provides functionality but perhaps even more importantly, status and prestige.

I’m also struck by another thought: this article suggests that Facebook still has a lot of financial potential due to advertising. At what point does Facebook hit a wall or lose its momentum? In a short amount of time, Facebook has become a daily feature in the lives of hundreds of millions but there is little to suggest that their growth is unlimited.

Students suffer withdrawal in a one day media blackout

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Professors and teachers can often provide anecdotal evidence of how students react when told that smartphones (and other devices like laptops) are not to be used in the classroom. A new study suggests that the problem isn’t really the classroom: simply not having these devices at all could the issue.

Researchers found that 79 per cent of students subjected to a complete media blackout for just one day reported adverse reactions ranging from distress to confusion and isolation.

In vivid accounts, they told of overwhelming cravings, with one saying they were ‘itching like a crackhead [crack cocaine addict]’.

The study focused on people aged between 17 and 23 in ten countries, including the UK, where about 150 students at Bournemouth University spent 24 hours banned from using phones, social networking sites, the internet and TV.

They were allowed to use landline phones or read books and were asked to keep a diary.

One in five reported feelings of withdrawal akin to an addiction while 11 per cent said they were confused or felt like a failure.

Nearly one in five (19 per cent) reported feelings of distress and 11 per cent felt isolated. Just 21 per cent said they could feel the benefits of being unplugged.

Some students took their mobile phone with them just to touch them.

While some of these symptoms don’t seem as bad as others, it is interesting that only 21% “could feel the benefits” of being “unplugged.” These devices and SNS tools really have become necessities in a short amount of time.

In reactions to this study, it would be interesting to see whether people advocate a complete move away from such technology because of these possible dangerous side effects or if people suggest more moderate usage. But if usage is really is an addiction, then moderate usage could still be an issue. I would like to see a follow-up to this study that examines a longer-term media blackout – how long does it take for students to readjust to life without all this media and then what would be their thoughts about what they might be missing (or gaining)?

Can Google incentivize being social?

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There is no question that Google would like to be more prominent in the social networking (SNS) phenomenon. Apparently, Google has tied an incentive for employees, a yearly bonus, to how well the employees help the company move forward in this area:

“[Your bonus] can range from 0.75 to 1.25 depending on how well we perform against our strategy to integrate relationships, sharing and identity across our products.” Social.

And yes, you read that correctly, the bonus can go up or down based upon Google’s performance in the social realm. The critics are already jumping all over this one, noting that it looks like all Google employees will be losing bonus money this year. And given the decided lack of success from products like Wave, Buzz, and to a broader extent, Orkut, who can blame them?

But on a higher level, it’s the strategy itself that may be the most interesting thing here. Mathew Ingram notes that you can’t threaten people into being social. While Mike Elgan calls this Larry Page’s first blunder (as CEO). I actually have a slightly different take on this. I think that on paper, this is actually a good idea and strategy. But in practice, I think it will ultimately be looked upon as a bad thing and may even directly backfire.

I’m not sure that I really think the headline on this story captures what is going on (“I’m Having A Party. Here’s $50. Bring Cool People — Or You Owe Me $100.”): being social online is different than incentivizing employees to walk up to people they don’t know on the street and push products. In order to be social online, one needs only to make links between people (“friends” in Facebook terms) and then provide some content (which the user gets to pick and choose). Since I would guess that many Google employees are already operating privately in these SNS realms, how hard would it be to transfer some of that activity into a Google product? While this activity is still personal and requires effort from individuals, it doesn’t seem like it would take much to be social online with a new product.

Now it is a more interesting question to ponder whether such a strategy would actually help a fledgling SNS product get off the ground. This writer suggests other SNS launches were “organic” and a push from Google’s employees would only work if the product was really good. This might be the case – but the argument here is that we know for sure how SNS products take off. Could Google do something new with this kind of incentive and with its large number of employees (and their contacts), could they get a new program/app/platform up and running? If Google employees started even a decent online party, wouldn’t some other people want to get involved?

(On a side note, it would be interesting to think more about this incentive. What do Google employees think of this? By virtue of possibly losing some of their bonus, will workers operate as homo economicus and help make something happen?)

Sociologist suggests Twitter offers more immediacy than broadcast news on war

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A sociologist challenges the idea that Twitter is a space for “slacktivists” by arguing that it offers space for emotions and humanity in a way that traditional broadcast news does not.

The predictive power of sociology and learning from the past

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In recent  years, the predictive element of social science has been discussed by a few people: how much can we use data from the past to predict the future? In an interview with Scientific American, a mathematical sociologist who works at Yahoo! Labs talks about our predictive abilities:

A big part of your book deals with the problem of ignoring failures—a selective reading of the past to draw erroneous conclusions, which reminds me of the old story about the skeptic who hears about sailors who survived a shipwreck supposedly because they’d prayed to the gods. The skeptic asked, “What about the people who prayed and perished?”
Right—if you look at successful companies or shipwrecked people, you don’t see the ones who didn’t make it. It’s what sociologists call “selection on the dependent variable,” or what in finance is called survivorship bias. If we collected all the data instead of just some of it, we could learn more from the past than we do. It’s also like Isaiah Berlin’s distinction between hedgehogs and foxes. The famous people in history were hedgehogs, because when those people win they win big, but there are lots of failed hedgehogs out there.

Other scholars have pointed out that ignoring this hidden history of failures can lead us to take bigger risks than we might had we seen the full distribution of past outcomes. What other problems do you see with our excessive focus on the successful end of the distribution?
It causes us to misattribute the causes of success and failure: by ignoring all the nonevents and focusing only on the things that succeed, we don’t just convince ourselves that things are more predictable than they are; we also conclude that these people deserved to succeed—they had to do something right, otherwise why were they successful? The answer is random chance, but that would cause us to look at them in a different light, and changes the nature of reward and punishment.

Interesting material and Watts’ just published book (Everything Is Obvious: *Once You Know the Answer)  sounds worthwhile. There are also some interesting thoughts later in the interview about how information in digital social networks doesn’t really get passed along through influential people.

I haven’t seen too much discussion within sociology about predictive abilities: how much do we suffer from these blind spots that Watts and others point out?

(As a reminder, Nassim Taleb, in his book Black Swan, has also written well on this subject.)

Quick Review: Catfish

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Perhaps we could consider the movie Catfish a companion to the more publicized film The Social Network (reviews from Brian here, Joel Sage here): both films consider the effects that Facebook and other digital technologies have on our world. But while The Social Network was a stylized retelling of the founding of Facebook, Catfish covers the lives of more ordinary people as they use these technologies to search for love. Here are a few thoughts about this film:

1. The story revolves a guy, Nev, from New York and a girl from Michigan, Megan, who build a relationship built around a Facebook friendship, IM chats, text messages, and phone calls. Both parties are looking for love though why they are doing this ends up being the plot twist of the film.

1a. I think what makes this film work is that Nev is an appealing character. Even though he hasn’t met Megan in the early stages of the film, he falls hard and ends up giggling and swooning like a teenager. But when things turn out to be more complicated than this, he still finds a way to make sense of it all.

2. More broadly, the film presents a question that many people wonder about: can two people really build a lasting relationship through Facebook?  While this is an interesting question, research on Facebook and SNS (social networking site) use suggests most younger people are not looking to meet new people online. Rather, they are reinforcing existing relationships or reestablishing past relationships. And this film deserves some credit: whereas a film like You’ve Got Mail suggests that email and other electronic communication work the same way as traditional dating (and the typical romantic comedy happy ending), this film introduces some complications.

3. The Social Network seems to suggest that technology helps keep us apart. (A side note: this seems to be an argument from the older generation talking about younger generations. One thing I wonder about The Social Network: was it so critically acclaimed because it fed stereotypes that older people have about younger people? How much did the characters in this film resonate with the lives of younger film-goers?) In that film, Zuckerberg founds Facebook in order to join the in-crowd, is being sued by two people after arguments related to developing community-building websites,  and at the end, he is shown still searching for a connection with a girl he lost years ago. Catfish seems to make an opposite argument: despite the imperfect people who try to connect online, the film suggests there is still some value in getting to know new people. When Nev’s love becomes complicated, he doesn’t just withdraw or call it quits – he tries to move forward while still getting to know Megan.

4. This film claims to be a documentary though there is disagreement about whether this is actually the case. Regardless of whether the film captures reality or is scripted, it is engaging. (The presentation seems similar in tone to Exit Through the Gift Shop, reviewed here.) Have we reached the point in films where the line between what is real and what is written doesn’t matter? And should we care or do we just want a good story?

Overall, this film seems more hopeful about the prospects of Facebook and other digital technology. With a documentary style and an engaging storyline, Catfish helps us to think again about whether people can truly get to know each other online.

(This film was generally liked by critics: it has a 81% fresh rating, 109 fresh out of 134 total reviews, at RottenTomatoes.com.)

An emerging portrait of emerging adults in the news, part 1

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In recent weeks, a number of studies have been reported on that discuss the beliefs and behaviors of the younger generation, those who are now between high school and age 30 (an age group that could also be labeled “emerging adults”). In a three-part series, I want to highlight three of these studies because they not only suggest what this group is doing but also hints at the consequences.

Almost a week ago, a story ran along the wires about a new study linking “hyper-texting” and excessive usage of social networking sites with risky behaviors:

Teens who text 120 times a day or more — and there seems to be a lot of them — are more likely to have had sex or used alcohol and drugs than kids who don’t send as many messages, according to provocative new research.

The study’s authors aren’t suggesting that “hyper-texting” leads to sex, drinking or drugs, but say it’s startling to see an apparent link between excessive messaging and that kind of risky behavior.

The study concludes that a significant number of teens are very susceptible to peer pressure and also have permissive or absent parents, said Dr. Scott Frank, the study’s lead author…

The study was done at 20 public high schools in the Cleveland area last year, and is based on confidential paper surveys of more than 4,200 students.

It found that about one in five students were hyper-texters and about one in nine are hyper-networkers — those who spend three or more hours a day on Facebook and other social networking websites.

About one in 25 fall into both categories.

Hyper-texting and hyper-networking were more common among girls, minorities, kids whose parents have less education and students from a single-mother household, the study found.

Several interesting things to note in this study:

1. It did not look at what exactly is being said/communicated in these texts or in social networking use. This study examines the volume of use – and there are plenty of high school students who are heavily involved with these technologies.

2. One of the best parts of this story is that the second paragraph is careful to suggest that finding an association between these behaviors does not mean that they cause each other. In other words, there is not a direct link between excessive testing and drug use. Based on this dataset, these variables are related. (This is a great example of “correlation without causation.”)

3. What this study calls for is regression analysis where we can control for other possible factors. It would then give us the ability to compare two students with the same family background and same educational performance and isolate whether texting was really the factor that led to the risky behaviors. If I had to guess, factors like family life and performance in school are more important in predicting these risky behaviors. Then, excessive texting for SNS use is an intervening variable. Why this study did not do this sort of analysis is unclear – perhaps they already have a paper in the works.

Overall, we need more research on these associated variables. While it is interesting in itself that there are large numbers of emerging adults who text a lot and use SNS a lot, we ultimately want to know the consequences. Part two and three of this series will look at a few studies that offer some possible consequences.