Smaller Is Better When Developing For The Web

May 11, 2009

We may have reached a bottom to the recession, if CEOs at bellwethers Intel and Cisco Systems are to be believed. But times are far from good.

Sharpen the focus on less ambitious efforts, says Gartner

Sharpen the focus on less ambitious efforts, says Gartner

Unemployment continues to slide, corporate spending is cautious and consumers remain tight fisted.

In this environment, cutting costs is the surest path to survival. Which is why an observation from Gartner struck me as on target – and not just in today’s rough times but good ones as well.

Gartner on Monday released several guidelines for watching the bottom line as companies continue to push e-commerce initiatives. Some perfunctory suggestions were included: use off-the-shelf tools, negotiate hard with software vendors.

The most significant insight was one that smart companies already follow: Rather than randomly building online communities around a corporate Web site, target existing communities, and stay focused on converting these smaller efforts. Here is the way Gartner states it:

“Leverage established community Web sites rather than building communities in your organization’s site.” And with Web 2.0 sales tools, “scale back their development efforts to only those tools that will lead to higher conversion rates. Gartner estimates that this strategy will save around 10 percent for large enterprises and about 5 percent for small enterprises in 2009, and 5 percent in future years.”


Advice For The Next CEO Of MySpace

April 23, 2009

There are many reasons to explain why MySpace lost ground to Facebook over the past year.

The social networking site that is owned by News Corp. is more commercial than its rival, more infused with advertising and less focused on the desires of users.

Chris DeWolfe steps down at MySpace

Chris DeWolfe steps down at MySpace

There is a perception as well that it is for teenagers, while Facebook has set itself up as mature enough for any age (read: adults).

So it comes as no surprise that CEO Chris DeWolfe left the company on Thursday. But here is an occasionally surprising list of business suggestions for the person tapped to fill DeWolfe’s shoes. It comes from Jason Calacanis, founder of Mahalo:

1) Buy a search engine. They are a great advertising platform;
2) Focus on mobile after admitting that Facebook won on the web;
3) Increase international efforts;
4) Build an entirely new platform while maintaining the existing site;
5) Build a social and casual gaming business;
6) Create a MySpace virtual currency; and
7) Launch an e-mail service.

Excellent advice.


Facebook Is Not Just A US Phenomenon; Site Leads In 10 European Countries

April 15, 2009

For several decades, popular American culture has been an homogenizing force in the world. Russians wear American blue jeans, Europeans grow up listening to Jimi Hendrix, and Filipinos watch American Idol.

Social networking is the latest manifestation of that trend – and by extension a global phenomenon helping to bring the world closer together.

Already the popular U.S. site, Facebook, is the top social network in 10 European countries, as well as .U. member Turkey.

It comes in second place in three more. The only significant holdout is Germany, where it comes in fourth.

According to comScore, the site is the sixth most popular Web property worldwide with 275 million visitors in February, up 175 percent.

In Europe, 100 million people visited, a 314 percent increase. The site accounts for 4 percent of all time spent online, up from 1 percent a year ago.

Here are the countries where Facebook leads: the United Kingdom, France, Italy, Spain, Belgium, Sweden, Denmark, Switzerland, Norway and Finland.

It is second in the Netherlands, Austria and Ireland.


Consolidation Coming To The Social Software Market

April 2, 2009

Several dozen companies compete to bring social software to the businesses. There may be fewer by this time next year.

Social software is an established business category, says Ross Mayfield

Social software is an established business category, says Ross Mayfield

Social software is becoming the latest craze in enterprise software. Corporations large and small are giving hard thought to how they integrate social networks, wikis, collaborative tools and Twitter-like microblogging to their computing systems.

“By now, it’s grown to be an established category of enterprise software,” says Ross Mayfield, chairman and president of Socialtext, one of the competitors in the space. “It’s established in the minds of CIOs.”

But there also are too many niche players and small companies in need of heft. That should lead to at least some consolidation over the next year, Mayfield said at the Web 2.0 Expo in San Francisco.

Consolidation might not be a bad thing. A Gartner analysis of the market show more than two dozen companies competing in narrow slices of the market with far fewer firms providing a broader, or visionary, approach to the market.

Of course, larger players, including Microsoft and IBM, also have this market in their sites and an ability to mesh social offerings with their other products.

Mayfield says Socialtext is one company broadening its offerings. “We’ve woven (Socialtext’s offerings) into a business platform,” he says. That’s because businesses are trying to make “platform decisions.”


UserVoice Sees Changes In the Business Use Of Web 2.0 Technology

April 1, 2009

Companies have been wading slowly into the Web 2.0 waters.

Blogs have finally become mainstream in America’s corporate suites. But the adoption of wikis remains low and social networks are still virtually none existent.

I still think were very early in this transition, says Richard White

"I still think we're very early in this transition," says Richard White

Twitter-like microblogging? Still the experimental edge.

Nevertheless, there are small signs of change, according to UserVoice, the maker of an interactive online suggestion box for Web sites.

The Web-based service, which lets users vote on products and services, is typically used by small businesses and departments of larger corporations. But in the past 60 days a greater variety of organizations have begun installing the suggestion box, including NASA, the University of Wisconsin and the University of San Diego.

“I’m actually surprised,” says CEO Richard White. “I would have never thought NASA would show up.”

As to Web 2.0 more broadly in the enterprise? “I still think we’re very early in this transition,” says White.


Travel Industry Could Find Real Value In Social Networks

March 23, 2009

Social networks have leapt from a technology to a social phenomenon.

Hotel referrals from social networks growing rapdily

Hotel referrals from social networks growing rapdily

Traffic to these sites – including the popular Facebook – is up 60 percent in the past year, with 2.5 billion visits logged in February 2009 alone.

Helping to drive the growth are older age groups, whose imaginations have been captured by the ease of connecting to friends online. In the past year, baby boomers (45 years and older) have flocked to Facebook and other sites faster than their younger peers.

With all this attention, it makes sense that companies will eventually find ways to benefit from social networks through the placement of advertising and marketing.

It is not surprising to me that the travel industry might be the first. The business is certainly in the right spot to try. According to Compete, referrals from social networks to hotel websites are up 151 percent since February 2008.

And why not? What better way to get a hotel suggestion than ask a friend?

The challenge is figuring out how to capitalize. Traditional ads flogging an inn or resort might be easily overlooked. Creativity will be needed, such as offering coupons for future travel to site members who describe trips (and accommodations) they enjoyed.

The benefits might be considerable. According to Compete, the conversion rate for hotel referrals from social networking sites is growing rapidly as well: up 98 percent since last year.


Older Americans Embrace Technology Faster Than Younger Ones

March 22, 2009

The assumption has been that younger American use technology more readily than their older, more technophobic peers. This seems to be changing.

Baby boomers (45 years and older) are rushing to catch up to generations X and Y at an accelerating pace. In doing so, they are bring the digital age to the broad swath of the American population like never before.

According to a survey from Accenture, baby boomers sharply accelerated their adoption of digital technologies over the past year while members of Gen Y (18 to 24) went into something of a holding pattern.

The study found boomers embraced new technologies 20 times faster than their younger country mates, with special cravings for social sites, podcasts and blogs.

For example, boomers showed a 59 percent increase in their willingness to connect on social networks, compared with only a 2 percent increase for Gen Y. They demonstrated a 67 percent jump in reading blogs and listening to podcasts compared with essentially no increase for Gen Y.

This same trend held true over the past year for posting online video, playing video games and listening to iPods.

In other words, the technology gap between the young and old is closing.

The finding from the November and December survey of 3,000 online consumers caught Accenture executives by surprise “The acceleration by baby boomers struck us,” says Kumu Puri, Accenture’s senior executive of its consumer technology practice. “It was the rate of growth I found surprising.”

So what is the explanation for the shift? Perhaps older consumers want to stay relevant to the workplace with the assumption they will have to work until later in life, says Puri. They also might want to stay up to date with the nation’s changing social fabric.

On the other hand, the features in some of these technologies might not be changing fast enough to keep the interest of the young, adds Puri. As if to prove this point, Gen Y’s interest in the rapidly changing arena of mobile data technologies was greater than that of the boomers.

As well, saturation likely played a role. Gen Y’s adoption of social networks has slowed, but then 82 percent of them already belong. Their interest in game consoles is down, but then 70 percent already own a console.

Perhaps the survey’s most important message is to technology companies. “We think it’s going to require them to think differently about their businesses,” says Puri.


Recession Aside, Advertisers Ready To Increase Spending On Social Networks

March 16, 2009

It’s cheap and advertising campaigns can spread by word of mouth.

What better way to weather a recession?

More than half of marketers are ready to increase their spending

More than half of marketers are ready to increase their spending

According to research from Forrester Research, 53 percent of marketers are ready to increase their spending on social-media campaigns, while 42 percent expect to hold their budgets as is.

With advertisers hacking ad allocations in general due to the global recession, the willingness to continue experimenting with social networking and other Web 2.0 sites is worth noting.

Social media budgets are still small, relatively to overall ad spending. But 95 percent of advertisers surveyed are bullish on social-media marketing, says Forrester.

What does this mean to revenue lines at companies such Facebook? Not a lot just yet.

Three-quarters of marketers still have budgets of $100,000 or less, says Forrester.


Facebook Passes MySpace In January Audience

February 9, 2009

Facebook surged past MySpace to become the top social networking site in January, according to compete.

A year ago, MySpace had 2.3 times more visitors than its rival. Now growth has stalled at the property, owned by Rupert Murdoch’s News Corp.

Meanwhile, the time users spend on it has fallen sharply since July while time on Facebook has recently edged up. Users now spend as much time on MySpace as they do Twitter.

In January, Facebook had 68.6 million unique visitors compared with MySpace’s 58.6 million. Monthly visits to Facebook were 1.19 billion compared with 810 million to MySpace, compete said.

Twitter had 54 million monthly visits in the month to rank as the third largest social networking site.

The top 11 social networks from competes list

The top 11 social networks from compete's list


Facebook Now Has 150 Million Active Users In 170 Countries

January 7, 2009

Facebook founder Mark Zuckerberg said Wednesday that 150 million people are now active users of Facebook with about half of them going to the social networking site every day.

Webs potential is to make the world more open, says Mark Zuckerberg

Web's potential is to make the world more open, says Mark Zuckerberg

“If Facebook were a country, it would be the eighth most populated in the world, just ahead of Japan, Russia and Nigeria,” Zuckerberg said on the company’s blog.

While it is not a principality, it does have members in 170 countries and territories who use more than 35 languages, according to the blog entry.

And they are not limited in age to college students, among whom Facebook got its start.

The company’s social strategy: “The full potential of the web is to make the world more open, so everyone has a voice and can share what is important to them.”


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