So facebook just announced a new way to create marketing revenues. The basic jist is that consumers, based on their profiles, will be contacted by branded companies and asked to promote the brand among their friends. It sounds like most marketers are pretty excited about this and are comparing the ingenuity of it to that of adwords, when it was first released.
My own gut tells me that this may work initially and that some people will feel honoured Americans take note of the correct way to spell this word) to have been selected as a 'social networking hub/leader/influencer' and will probably start encouraging their friends as designed. However, as soon as people start to feel like branding tools, they will rail against what's going on. Additionally, formerly 'cool' friends may quickly turn into 'spammer buds' that are to be avoided at all costs. Then people will see facebook as not being a safe online environment anymore and will feel tracked and monitored too much. What will they do? They'll leave and go wherever is next.
If you want to read more about this, there's a decent enough article on adsense
1 comment:
Is it possible that social networking is a platform that will never support a revenue model consistent with the high prices being paid by the Googles and the Microsofts?
The "decline of facebook" is spot on phrasing. The vast majority of people do not want to show up to a party and be asked for donations. However, many people will provide a donation in acceptance of an invitation to the same party.
For a short time, entrepreneurs can still make a lot of money by creating a website that gets a lot of attention. That time may very well be dependent upon how quickly Microsoft destroys facebook.
Post a Comment