Socialnomics – Social Media Blog

Entries tagged as ‘Erik Qualman’

Everyone is Tweeting, but is anyone listening?

March 27, 2009 · 4 Comments

I just returned from Search Engine Strategies New York and the major topic was Twitter.  Now, this was helped by the fact that the week was kicked off by an energetic opening keynote speech  by Twitter guru, or addict, depending on how you look at it, Guy Kawasaki.  Guy had over 100,000 followers prior to his keynote and now has 94,850, which is very interesting.  You would think the opposite effect would occur.  However, perhaps some thought Guy may have been pushing the line of spamming just a bit.  My sense is that he is not, because, if you don’t like it you can always un-follow Guy.  Unlike e-mail where anyone can spam you, in Twitter you need to be following someone in order to receive messages.

Britney Spears is popular on Twitter

Britney Spears is popular on Twitter

Whether Guy or Brittney Spears or Lance Armstrong  have 94,000 or 550,000 followers, they are A-Listers and people want to hear what they have to say.  It’s not because it’s Twitter, it’s because most of these celebrities previously had a platform.  Now, there will be a few new “A Listers” that result simply from Twitter, these will be few and far between however.  Guy Kawasaki is being helped greatly by Twitter, because he is being aggressively smart.

But, what about the rest of us?  If we have 1,500 followers are any of them really listening?  I’d argue that most are likely not.  However, it is still a huge marketing tool and the nobodies are now the new somebody for the following reason.  Twitter is free.  Hence, if you have 1,500 followers and are a local plumber, most likely most aren’t listening.  However, as long as at least one person is that is all that matters, because of the simple fact that it’s free.  If that one person has a plumbing issue, you as the Plumber now have a shot, especially if you acquired these followers simply by limited your search.twitter.com query to people within a 25 mile radius.

The biggest use right now is 1) big businesses following what is being said about their company – see Zappos, JetBlue, Comcast, etc. 2) Celebrities catering to their following by giving realtime updates – see Lance Armstrong Twitter’s about collarbone 3) Individuals attempt to promote themselves, generate a following and make money

And it’s the last point that may eventually cause Twitter to become Tiresome.  Just like on Facebook you X out the person that is constantly talking about their turtle, bad hair day, etc. on Facebook, the same holds true here.   Is Dale Carnegie rolling over in his grave, because everyone on Twitter is trying to be heard, when the key to winning friends and influencing people is actually listening?

Part of the reason that Twitter is so popular is that some of it’s effectiveness and cool factor is aided by the fact that not everyone is on it.  What could I possibly mean by this?  In January we sent over 6,000 students (via Smithsonian Student Travel) on educational tours to Washington DC for the historic inauguration.  In the past it would have been difficult to get major media outlets attention.  However, it was easy to do with Twitter.  NPR, MSNBC and PBS immediately replied to our tweet, expressing interest in hearing from our middle school student travelers and their teachers.   Now, only two months later.  I’ve #JetBlue about my concern that their TVs may not work for my flight this afternoon and this is crucially important as I booked on JetBlue soley for the reason that I could watch MarchMadness on DirectTV.  My concern was that the TV’s only worked about 50% of the time on this route and could they try to take steps to ensure they would be functioning…instead of hearing tweet, tweet, I heard cricket, cricket.  It was cool when companies and even CEO’s could respond real time, and some still do, but as more and more people join on Twitter that one-to-one will become less and less until the companies can ramp up.  And unfortunately instead of getting a witty and salient reply from a CEO or well-informed employee that took Twittering up with consumers because it was cool, you will most likely get a reply from a call center in New Dehli (should we call them Tweet Centers?).

Now, before I get tons of hate mail, there is a need for micro-blogging tools like Twitter, but it’s somewhere in-between poor e-mail (Google’s Eric Schmidt’s words) and the Greatest Thing ever.  I still tweet, because the upside is still greater than the downside, and oh, by the way please follow me @equalman.

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4 Ideas For Facebook to Make Money

February 23, 2009 · 4 Comments

Facebook celebrated its fifth birthday last week with 150 million of its closest friends. Today, I give my gift to Facebook: four ways to make some big money this year.

1. Be a Better Google

Google owns close to 100-percent market share in the search engine wars because it’s the best at helping us find what we’re looking for. While it’s the best, it still isn’t very good.

If you search for someone famous or something factual, a Wikipedia page is likely the top result. That’s why more people go straight to Wikipedia or use tools such as Powerset.

After performing a Google search for a product or service, you’re bombarded with advertisements all touting the same thing in 35 characters or less — cheapest fares! best value! lowest price guaranteed! buy now! — with the top advertising placements going to those that generate the most revenue over the long term for Google rather than the most relevant result for you.

Everyone receiving the same search results is analogous to going to Nordstrom to buy a dress and the sales clerk offering you selections without determining what size you are.

Let’s say that we’re in the market to purchase a baby seat for our newborn. Do we care more about what our friends recommend, or what Google recommends? If you have good friends, I’m sure you respect your friends’ opinions much more.

This means there’s plenty of opportunity for Facebook. They already have the technology (Facebook Beacon) to track user purchases on Web sites outside of Facebook (Beacon can track books I purchase on Amazon.com, for example).

As a user, it’s much more helpful for me to see a list of results of what baby seats my friends purchased, how much they paid, and what their reviews are, combined with supplier ads (think Google sponsored ad listings) than the Google results today — results that don’t have anything about what my friends think.

Google recognizes this deficiency and has released Google Suggest, which enables users with Google accounts (mainly Gmail) to rate and comment on the search results. If Facebook can cobble the good technology they already have (Connect, Beacon, etc.), then they could literally steal billions of dollars in revenue from Google.

2. Let Facebookers Take Ownership of Brands

Long before the advent of social media, people have defined themselves by the brands they associate with, whether it’s a designer clothing label or car make and model. Facebook enables more transparency into this as the social graph can easily see when their friends join a Prada group or Land Rover fan page.

Generation X through Z take ownership of brands like never before. Facebook should recognize this and make it part of users’ profile data: What 5 brands do you associate with? This helps fellow Facebookers have a better understanding of that person while opening the revenue door for Facebook. A person who lists Apple, Zappos, Audi, Lacoste, and Guinness is much different than someone who lists Honda, Applebee’s, Dunkin’ Donuts, Wrangler, and AOL.

For the revenue piece, Facebook could simply include, “Would you like to be alerted of specials for any of these brands?” It’s much less intrusive to receive a notification within Facebook than e-mail spam to your inbox. Besides, Gen Y and Gen Z don’t use e-mail as a primary form of communication.

3. Enhanced Facebook Gifts

One of the savviest business decisions Facebook made was charging $1 for little icons that range from cupcakes to hearts. The user pays $1 for these “gifts” and sends them to their friend. This is 100 percent profit for Facebook.

They’ve even allowed business, including Skittles and Coors Light, to sponsor icons. Along these business lines, Facebook could take this a little further by supplying something of material value to the user and to the product sponsor. This could be as simple as sending a downloadable iTunes song or Verizon ringtone that the gifter pays for.

Imagine how many of these would occur last minute on Valentine’s Day alone (trust me, men don’t plan): “I just wanted to tell you this song reminds me of you.” Or you could send your buddy a quick icon of a six-pack of Corona that has a redeemable coupon code. The user benefits because they can give a gift of substance, and Facebook benefits by increasing the amount of gifts given while they take a percentage of the revenue.

Lastly, the supplier/advertiser benefits by selling more products and increasing their brand awareness. The advertiser would pay Facebook a percentage every time a “gift” is purchased. Since this would result in revenue for the advertiser, it’s more of a CPA buy, which mitigates risk from them while putting money into Facebook’s pockets.

4. Small Business Functionality

Facebook should add e-commerce functionality to their fan pages by creating a new offering: merchant pages. They can set up credit card transactions and other fulfillment items/hooks.

Even though we’re almost a decade removed from the ’90s, small businesses still struggle to figure out how to inexpensively sell and fulfill their products and services online. Facebook merchant pages could complement existing small business Web sites or be their exclusive presence. Facebook would generate revenue by taking a micro-payment portion of the transactions.

Merchants would welcome an easy and cost-effective offering like this from Facebook. It would also network well with item number one listed above. Isn’t that what being social is all about?

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Categories: Facebook
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