social network

Telefónica buys majority at booming Spanish social networking platform Tuenti

The leading Spanish telecommunications company Telefonica S.A. has bought  a majority stake at the Spanish social network Tuenti. Continue reading

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Friends for a fee

Step right up, buy a few friends or fans at the low low price of 20 cents. Or buy in bulk and get 5000 buds for only 13 cents apiece. This is the offer of uSocial.net of Brisbane, Australia.

Leon Hill, its founder, came up with the idea after getting booted out of Digg for an appalling venture. On Digg.com USocial was asking just under $100 to vote 100 times for a client’s chosen story. If a client wanted 1000 votes they paid $700. Though Hill’s claim for dropping out of Digg “site” a few months later was more clients than he could handle, the more likely scenario is as Digg claimed: They ordered him to stop.

Now USocial faces the same restraint from Facebook executives. While Hill told Associated Press that the USocial practice of manually logging in to a client’s profile or creating one,  and seeking out people who are a good fit for the client’s products or services without saying it’s not the client is not violating any Facebook terms of service, Facebook spokesperson Barry Schnitt disagreed.  ”Buying and selling of actions that are supposed to be taken by a user are certainly, we would argue, not authentic,” he told AP.  Now Facebook is saying that anyone caught sharing her or his password with a third party could have her account shut down.

While USocial’s Digg practice of selling votes was unethical, we’re not sure who is acting the least appropriately in this “Friends and Fans Fiasco” – Facebook or USocial. This could simply be seen as hiring a contractor to handle your profile, just as book have ghostwriters, for example. Do OnStar’s outsourcers answer the phone “OnStar” or “Sitel, outsourcer for OnStar?” And do we care?

Facebook has little right to say with whom you can share your password. Just as with the recent high-handed LinkedIn “limit your connections to 30,000″ decision, one must wonder if Facebook is considering its profilers or its wallet.

 

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EMarketer predictions for 2009: not all bad

Analysts from eMarketer weigh in on how the next year in online marketing, e-commerce, social networking and more will unfold. Here’s a quick overview.

Online ad spending

Analyst David Hallerman predicts online video ad spending will run counter to overall economic developments, and rise by 45 percent in 2009 to reach $850 million. Even though advertisers are increasingly budget conscious, they agree that the best way to woo online audiences to open their shrinking wallets is through “messages that reach their hearts and minds – hence more video.”

Search marketing

Hallerman also says that search marketing spending will grow by 14.9 percent in 2009, to $12.3 billion. He calls search marketing “recession-resistant” as it is highly measurable and advertisers will increasingly look “secure and effective methods to combat fear in an economic meltdown.”

Total ad spend

Finally, Hallerman comments that total U.S. Internet ad spending will increase to $25.7 billion in 2009, an 8.9 percent growth rate. While that will be the lowest year-over-year increase for online advertising ever, it will still be more than nearly all other media.

Demographics: multicultural ads ascend

Lisa E. Phillips says that multicultural marketing will be on the upswing in 2009 with more African-Americans and Hispanics going online. More language and culture specific messages will be required.

Retail e-commerce: big declines

Jeffrey Grau has gloomy news: online retail sales (excluding travel) will grow by only 4 percent in 2009, although he notes that online sales growth was already on a downward slope as the number of online buyers approaches saturation. Most retail e-commerce sales growth in the future will come from increased spending by consumers who have long been online buyers, he says.

E-commerce for social networking

EMarketer’s Debra Aho Williamson believes that e-commerce will be a growing revenue stream for social networking sites. She expects both MySpace and Facebook will enhance their self-serve advertising systems to sell real world goods and services.

But at the same time, she also predicts tough sailing for smaller and niche social networks, many of which may need to shut down or be acquired by larger players. Marketers that have built their own social network platforms will need to migrate them to existing services.

Since Facebook is already a de facto business networking site (because of the number of businesspeople who use it), Williamson says the company will develop ad programs aimed at B2B companies and that will directly affect existing business-focused networks like LinkedIn.

Twitter may have turned down Facebook’s all-stock offering in late 2008, but it will still end up being acquired, Williamson predicts. And the company that buys it will use the Twitter infrastructure to offer targeted marketing and analytics to advertisers.

Traditional media will continue to hurt

Carol Krol weighs in on newspaper advertising which, not surprisingly, will continue to decline in the new year more than any other medium. Industry-wide cutbacks will continue, and there will be more consolidation. “The industry was limping before the recession; expect more newspaper companies to become casualties,” she writes. Also look for more newspapers to reduce their publishing frequency similar to the Christian Science Monitor, The Detroit Free Press and The Detroit News, she adds.

As for TV ad spending, it will decline 4.2 percent to $66.9 billion in 2009. And YouTube will start to carry full-length television programs supported by ads, in keeping with the company’s Q4 2008 announcement. Other online streamers will follow suit.

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Sneakerplay ties its last shoestring

How niche can a social network go? Sneakerplay is an online community targeted at people who love their sneakers so much they need a place to talk about them and share pictures about their favorite shoes.

Well, guess what? Sneakerplay is shutting down. Big surprise. Even though the site managed to nab sponsorship from Adidas, Nike, EA Sports and Microsoft, we guess people don’t love their shoes as much as the founders thought.

Or maybe the founders weren’t so serious about the whole endeavor in the first place. The company’s blog says that “over time, we’ve realized that we weren’t committing the same amount of energy as we did in the beginning. Our focus has been diverted by other projects that we’re currently working on.”

Like what? Maybe purses? Belts? Tiaras?

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StudiVZ boss Riecke resigns unexpectedly

Marcus Riecke, CEO of Germany’s leading social network StudiVZ, has resigned. StudiVZ belongs to media house Georg von Holtzbrinck. No reasons were given for Riecke’s sudden departure. A company spokesman said it was an impromptu decision. His temporary stand-in will be Dr. Clemens Riedl, who will take on the responsibilities of CEO in addition to those of vice president of sales.

StudiVZ was sued recently by U.S.-based social network Facebook on the allegation that StudiVZ had illegally copied Facebook’s “look and feel,” with similar graphics and features. It was later reported that Facebook and StudiVZ had been in protracted negotiations in the months preceding the legal action, for Facebook to buy StudiVZ. The negotiations were later broken off without making a deal.  

Jochen Gutbrod, deputy chairman and CFO of Georg von Holtzbrinck, thanked Riecke for his “successful activities.” A few weeks ago Gutbrod announced the extension of the senior management team with the appointment of Jens Schwanewedel as CFO from 1 January 2009, to enable Gutbrod to focus all his attention on growing the division Holtzbrinck Digital. Schwanewedel was deputy CFO. 

 

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Twitterific

I’ll admit that when I first heard about Twitter, I thought it was the most ridiculous thing in the world. As a journalist and a long time blogger, I take pride in crafting a well thought out story, with a beginning, middle and end, and a common theme running throughout.

So the idea of “micro-blogging” in bursts of no more than 140 characters at a time, as you do on Twitter, seemed to me to be entirely untenable. How could a serious writer work under such artificially composed constraints? Who would read such hastily shot off drivel?

Well, apparently a lot of people. Including me now.

Against all my better instincts, I’ve become a Twitter addict. In the age of Web 2.0, the new definition of addiction has become “someone who presses the refresh button on his or her browser more than 20 times an hour.” Guilty as charged. Twitter now has 2 million users. That’s an audience that new online media properties need to take note of – and get twittering themselves.

Twitter is part of an overall trend towards providing Web users with a constant stream of updated information. A blog – the rage of the last 5 years – seems positively passé today. When you post a “tweet,” as they’re called, you’re likely to receive a comment in return not in hours (as on an “old fashioned website or email list) but in minutes, sometimes even seconds.

In the U.S., you can set Twitter to send a whole stream of discussion to your cell phone as SMS messages. I tried that for awhile; the service is free. At first, the tens of messages I received a day made me feel important. “Look how many SMS’s I’m getting. I must be popular!” Eventually all the checking, reading and deleting got to be too much and I shut if off.

Whether via SMS or on the Web, this instant gratification is like a drug. You want more so you post more. There are Twitterphiles who update their status every hour…or less. One person I follow got stuck in the airport while returning home; he tweeted his status in real time. “Plane delayed 30 minutes.” “Visiting the bookstore now.” “Finally pre-boarding business class.”

There’s even a category called the “Twitter novel” where a few new media pioneers are writing a book in real time, posting in 140 character snippets and receiving fast feedback.

Twitter seems to be divided into two classes. Users who post every little detail about their lives (“3:00 AM, finally going to sleep,” “Which flavor of ice cream should I buy?”), and serious users who upload valuable insights and links to Web pages of serious interest (TechCrunch, GigaOm). Media properties fall into the second category where there are ample opportunties for writers, bloggers and columnists to join the conversation.

My Twitter posts have included both types of communication. I have asked questions and received feedback that have helped me think through themes for these blog posts. On the other hand, I have also tweeted about my enthusiasm for the new season of Heroes (the latter resulted in a flame by a disappointed fan) and who has the best ice coffee (hint: it’s not Starbucks).

It’s not just Twitter, of course, that’s changing the face of Web interaction. Social networking services of all kinds allow you to update your status and broadcast it to your friends. I can track my daughter’s moods from what she posts on Facebook. One time she wrote “I hate her!” I instant messaged her. “Who do you hate?” “Don’t ask me,” she quickly replied, “or I’ll ‘de-friend’ you.”

Facebook is also a godsend for finding old friends. I have re-connected with people I knew from high school, college and various projects I’ve been involved with over the years. LinkedIn, a business-focused social network, is even better for finding out what old colleagues are now up to. Other services include Dopplr (for reporting where you’re traveling) and Tumblr (for quickly tossing online a stream of the pictures, videos or Web sites you’re looking at). On both Facebook and LinkedIn, there are “groups” that allow you to mass message other participants.

With all this information flowing this way and that, you’d think that the noise pollution on the Web would have reached unbearable heights. At what point do you have to ask “Who really cares what I’m doing at every hours of the day?”

An article last month by Clive Thompson in the New York Times suggests otherwise.

Thompson says that social scientists have given the sort of incessant online contact that Twitter and Facebook engender a name: “ambient awareness.” It is, Thomson writes, “very much like being physically near someone and picking up on his mood through the little things he does — body language, sighs, stray comments — out of the corner of your eye.”

Thompson goes on. Each little update is insignificant on its own. “But taken together, over time, the little snippets coalesce into a surprisingly sophisticated portrait of your friends’ and family members’ lives, like thousands of dots making a pointillist painting. This was never before possible, because in the real world, no friend would bother to call you up and detail the sandwiches she was eating.”

Twitter can even be seen as a partial solution to social isolation. Robert Putnam, in his book “Bowling Alone” describes a world in which the mobile workforce requires people to travel more frequently for work, leaving friends and family behind. Ambient intimacy becomes a way to “feel less alone.” And the kind of “weak ties” you have on social networks can actually help you solve problems more efficiently. Thompson continues:

“If you’re looking for a job and ask your friends, they won’t be much help; they’re too similar to you, and thus probably won’t have any leads that you don’t already have yourself. Remote acquaintances will be much more useful, because they’re farther afield, yet still socially intimate enough to want to help you out.”

So far, I’m enjoying the new world of ambient intimacy. But I’m always looking for more friends smile If you’d like to join me, my Twitter address is http://twitter.com/brianblum.

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