The Future Of Social Networks Charlene Li Vice President & Principal Analyst Co-author of  Groundswell Forrester Research March 4, 2008
 
They are online with their social networks
 
Theme Social networks  will be like air.
Components of social networks Profile Relationships Activities Business model Universal identity A single social graph  Social context for activities Social influence defines marketing value
My multiple identities
Universal identity [email_address] [email_address] Mobile number
Universal identity foundations Federation (OpenID approach) A few major players will serve as major federation focal points Yahoo!, Microsoft, Google, Plaxo, etc.  All players must realize that they can grow the market faster/better by working together Data Portability Group is the beginning
Bill of Rights for Users of the Social Web “ We publicly assert that all users of the social web are entitled to certain fundamental rights, specifically: Ownership of their own personal information, including:  their own profile data the list of people they are connected to the activity stream of content they create; Control of whether and how such personal information is shared with others; and Freedom to grant persistent access to their personal information to trusted external sites.” - Authored by Joseph Smarr, Marc Canter, Robert Scoble, and Michael Arrington http://blog.broadbandmechanics.com/2007/09/a-bill-of-rights-for-users-of-the-social-web
My Facebook social graph Missing Colleagues Parents Extended family School parents Neighbors Babysitter Walking group
My real social graph is much more complex
Let’s end the insanity
Relationships today are explicit – and a pain Twitter Facebook LinkedIn Plaxo
New “entrants” will challenge the incumbents Millions of regular users Search & deep content Ad and content networks Relationship maps
Relationship mapping will be automatic and permission-based
What people do today on social networks
Dave has a nice book review on Facebook
But it would be more helpful on Amazon “ See friends’ reviews”
How Yahoo! could incorporate social networks Search based on what my friends finds relevant See which of my friends owns a Focus – and what they think of it Compare daily portfolio performance to friends’ Elevate stories tagged by  friends – anywhere
The under-rated value of networks
Endorsement value depends on your network Your authority on the specific topic  Your network’s interest and authority on the topic The trust level among your network on the topic
The future business model for social networks Marketers will pay to reach and influence valuable  Each person will have their own “personal CPM”* Social networks will compete to have the best experience for high-influence individuals * From Marian Salzman, JWT
Evolution of open platforms Walled garden services Portal aggregators 1993 1999 2003 2008-9 2013 Search freedom Data portability Ubiquitous social networks
Recommendations Create linkages between services based on individually-controlled identity federation Compete on creating the most compelling social experience, not social graph lock-in Develop social applications that have meaning Integrate social networks into existing activities Design business models that reflect the value created by people’s social networks
Thank you Charlene Li +1 650.581.3833 [email_address] www.forrester.com groundswell.forrester.com

The Future Of Social Networks

  • 1.
    The Future OfSocial Networks Charlene Li Vice President & Principal Analyst Co-author of Groundswell Forrester Research March 4, 2008
  • 2.
  • 3.
    They are onlinewith their social networks
  • 4.
  • 5.
    Theme Social networks will be like air.
  • 6.
    Components of socialnetworks Profile Relationships Activities Business model Universal identity A single social graph Social context for activities Social influence defines marketing value
  • 7.
  • 8.
    Universal identity [email_address][email_address] Mobile number
  • 9.
    Universal identity foundationsFederation (OpenID approach) A few major players will serve as major federation focal points Yahoo!, Microsoft, Google, Plaxo, etc. All players must realize that they can grow the market faster/better by working together Data Portability Group is the beginning
  • 10.
    Bill of Rightsfor Users of the Social Web “ We publicly assert that all users of the social web are entitled to certain fundamental rights, specifically: Ownership of their own personal information, including: their own profile data the list of people they are connected to the activity stream of content they create; Control of whether and how such personal information is shared with others; and Freedom to grant persistent access to their personal information to trusted external sites.” - Authored by Joseph Smarr, Marc Canter, Robert Scoble, and Michael Arrington http://blog.broadbandmechanics.com/2007/09/a-bill-of-rights-for-users-of-the-social-web
  • 11.
    My Facebook socialgraph Missing Colleagues Parents Extended family School parents Neighbors Babysitter Walking group
  • 12.
    My real socialgraph is much more complex
  • 13.
  • 14.
    Relationships today areexplicit – and a pain Twitter Facebook LinkedIn Plaxo
  • 15.
    New “entrants” willchallenge the incumbents Millions of regular users Search & deep content Ad and content networks Relationship maps
  • 16.
    Relationship mapping willbe automatic and permission-based
  • 17.
    What people dotoday on social networks
  • 18.
    Dave has anice book review on Facebook
  • 19.
    But it wouldbe more helpful on Amazon “ See friends’ reviews”
  • 20.
    How Yahoo! couldincorporate social networks Search based on what my friends finds relevant See which of my friends owns a Focus – and what they think of it Compare daily portfolio performance to friends’ Elevate stories tagged by friends – anywhere
  • 21.
  • 22.
    Endorsement value dependson your network Your authority on the specific topic Your network’s interest and authority on the topic The trust level among your network on the topic
  • 23.
    The future businessmodel for social networks Marketers will pay to reach and influence valuable Each person will have their own “personal CPM”* Social networks will compete to have the best experience for high-influence individuals * From Marian Salzman, JWT
  • 24.
    Evolution of openplatforms Walled garden services Portal aggregators 1993 1999 2003 2008-9 2013 Search freedom Data portability Ubiquitous social networks
  • 25.
    Recommendations Create linkagesbetween services based on individually-controlled identity federation Compete on creating the most compelling social experience, not social graph lock-in Develop social applications that have meaning Integrate social networks into existing activities Design business models that reflect the value created by people’s social networks
  • 26.
    Thank you CharleneLi +1 650.581.3833 [email_address] www.forrester.com groundswell.forrester.com