The Future Of Social Networks: Where We Are Today Charlene Li Altimeter Group January 22, 2008

Social networks will be like air

This more than just about “social networking sites”

Your friends will be where ever you need them Friends’ Reviews

Social media content appears in other channels Current TV added Twitter posts into its coverage of the presidential debates as well as the Inauguration

Universal identity and sign-in

Eliminates “re-friending” TheInsider.com allows users to bring in their Facebook friends Avoids building yet another siloed social network

Profiles where they are useful LinkedIn plug-in for IBM Lotus Notes integrates profiles directly into email

Your friends’ activities in context around “objects” with GetGlue

The same toolbar appears on IMDb

The toolbar shows Chris’s comments from Wikipedia

Two sets of rules/standards exist Facebook Connect includes protocols for sharing identity, contacts, and content Consortium of players including Google, MySpace, Plaxo, and Yahoo! are following standards, for example: MySpace ID Google Friend Connect LinkedIn Applications

Consortium of players including Google, MySpace, Plaxo, and Yahoo! are following standards, for example:

MySpace ID

Google Friend Connect

LinkedIn Applications

But how do you make money?

How marketing and advertising has evolved Content targeting to reach demographics Sports = young men in their 20’s Search marketing to uncover intent Behavioral targeting to build a rich profile across sites You’re a car buyer if you visit multiple car sites So you’ll see more car ads while reading news E.g. Tacoda

Content targeting to reach demographics

Sports = young men in their 20’s

Search marketing to uncover intent

Behavioral targeting to build a rich profile across sites

You’re a car buyer if you visit multiple car sites

So you’ll see more car ads while reading news

E.g. Tacoda

The current state of social networking advertising Traditional ads, standard IAB units

Ads tucked in to push “fanning”

How advertising will innovate New ad formats within social networking sites Rich social profiles identifying “Influencers” Tapping communication patterns to find “network neighbors”

New ad formats within social networking sites

Rich social profiles identifying “Influencers”

Tapping communication patterns to find “network neighbors”

New ad formats within social networking sites Facebook virtual gift, social, and engagement ads BuddyMedia social app-vertisement SocialVibe profile sponsorships

The Perfect (Data) Storm feeds rich profiles Social graphs and interests Explicit friends Culture of sharing Content creation, tagging, and lifestreaming Behavior Location, browsing and search history, purchases, interests Basic communications Email, IM, SMS, Twitter

Social graphs and interests

Explicit friends

Culture of sharing

Content creation, tagging, and lifestreaming

Behavior

Location, browsing and search history, purchases, interests

Basic communications

Email, IM, SMS, Twitter

Extract social graph data - Figure who in a network responds to an offer Create rich profiles, including demos, interests, behavior Find others like them in the network Can also target outside social networks themselves Also identify “Influencers” who connected AND share Vendors include: 33Across Lotame Media6 Degrees Unbound Technologies

- Figure who in a network responds to an offer

Create rich profiles, including demos, interests, behavior

Find others like them in the network

Can also target outside social networks themselves

Also identify “Influencers” who connected AND share

Vendors include:

33Across

Lotame

Media6 Degrees

Unbound Technologies

Communications can also fill in the social graph profile

Google already tracks who you email the most

Media6 identifies who is closest to you – your “network neighbor” “ Lisa” buys on NineWest.com Media6 maps “network neighbors” based on visits to profile sites via browser cookies (no PII involved) 2 1 3 NineWest ads are shown to Lisa’s closest friends, without identifying or involving Lisa

Privacy and permission considerations People will demand greater control over when, where, and how their social profiles, contacts, and content can be used Detailed permissions – sometimes on a friend-by-friend basis – will be required A usability nightmare Need to “retrofit” old friends numbering in the thousands

People will demand greater control over when, where, and how their social profiles, contacts, and content can be used

Detailed permissions – sometimes on a friend-by-friend basis – will be required

A usability nightmare

Need to “retrofit” old friends numbering in the thousands

How things will develop in 2009-10 Experiments in social media advertising, waiting for turnaround Yahoo!, Google, Microsoft/Hotmail will test social media integration with Webmail products Facebook Connect gains traction w/media cos and begins to monetize with an ad network Social shopping experiments start (retailers integrating social network data)

Experiments in social media advertising, waiting for turnaround

Yahoo!, Google, Microsoft/Hotmail will test social media integration with Webmail products

Facebook Connect gains traction w/media cos and begins to monetize with an ad network

Social shopping experiments start (retailers integrating social network data)

How to prepare Identify where social network data and content can/should be integrated on your site Leverage existing identity and social graphs where your audience already is, e.g. Facebook Connect Get your privacy and permission policies and processes aligned with an open strategy Find your trust agents “ In Google I trust”, or will it be Facebook?

Identify where social network data and content can/should be integrated on your site

Leverage existing identity and social graphs where your audience already is, e.g. Facebook Connect

Get your privacy and permission policies and processes aligned with an open strategy

Find your trust agents

“ In Google I trust”, or will it be Facebook?

Summary Social networks will be like air Open networks will be the new norm, so consider how you will open your business

Social networks will be like air

Open networks will be the new norm, so consider how you will open your business

Charlene Li Altimeter Group [email_address] blog.altimetergroup.com Slides available at slideshare.net/charleneli Copyright © 2008 Altimeter Group