The Future Of Social Networks
Charlene Li Altimeter Group March 13, 2009 Backchannel Meebo: tinyurl.com/ca2936 Twitter: #sxswfsn

Tim Berners-Lee On March 13,
1989, he published a paper that laid out the WWW. “ The Web is more a social creation than a technical one. I designed it for a social effect – to help people work together – and not as a technical toy.” - “Weaving The Web” by Tim Berners-Lee

Think of a social site

Social networks will be like
air

Reviews from people I know
Source: Razorfish Note: This is a mock-up, not an actual product

Advice from people you trust
Source: Razorfish Note: This is a mock-up, not an actual product

Rethinking events

Mobile apps become social too
Source: Razorfish Note: This is a mock-up, not an actual product

Even TV is getting social
Current TV integrates Twitter feeds But I just want to see my friends’ tweets

Invite your friends to chat
on TV Integra5 inserts chats via set top boxes

Networks move into the enterprise
LinkedIn plug-in for IBM Lotus Notes integrates profiles directly into email Salesforce.com pulls Facebook profiles into its CRM tool

Three things are needed to
make social networks like air <ul><li>Identity – who you are </li></ul><ul><li>Contacts - who you know </li></ul><ul><li>Activities – what you do </li></ul>And it’s still very early, so patience is needed

Two sets of rules/standards exist
Facebook Connect includes protocols for sharing identity, contacts, and content <ul><li>Consortium of players including Google, MySpace, Plaxo, and Yahoo! are following standards, for example: </li></ul><ul><li>MySpace ID and Data Availability </li></ul><ul><li>Google Friend Connect </li></ul><ul><li>LinkedIn Applications </li></ul>Standards are still being developed – and they have a long way to go

My identity, in context Author,
researcher, strategist Chauffeur, cook, play date organizer

My many, myriad identities

Friend management is tough today
Filters on make friends and news feeds more manageable and valuable But it’s still laborious!

Implicit social data fills in
the gaps

Google/portals provide social data Who
I email the most Who I meet with Who I call What I read and share What sites I visit

A “social algorithm” will make
privacy and permissions easier to manage <ul><li>Context makes content privacy easier </li></ul><ul><ul><li>Social signals provide a shorthand for our mental map of relationships </li></ul></ul><ul><ul><li>Suggests who might want to see it, e.g. photo sharing </li></ul></ul><ul><li>Community based privacy </li></ul><ul><ul><li>Suggests people like you have this type of privacy </li></ul></ul>

What will get everyone to
open? Most digital activity resides OUTSIDE of the top social networks and portals

Facebook Connect taps into offsite
activities TheInsider.com allows users to bring in their Facebook friends Users can share/post items back into Facebook The Insider gets better targeting data for ads

Who has gone on an
Earthwatch trip?

Leverage social relationships to target
ads and offers Map explicit relationships Identify “Influencers” who are connected AND share Source: 33Across

Most social ads require explicit
action Facebook virtual gift, social, and engagement ads BuddyMedia social app-vertisement SocialVibe profile sponsorships

Why social ads don’t work
Being a Fan does not imply endorsement

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

The rise of the personal
CPM <ul><li>Augment page CPM with social data like </li></ul><ul><li>- Influence </li></ul><ul><li>Number of friends </li></ul><ul><li>Influence amoung friends </li></ul><ul><li>Number of influential friends </li></ul>

How things will develop 2009
2011 2010

1) Evaluate where social makes
sense <ul><li>Identify where social network data and content can/should be integrated in the experience </li></ul><ul><li>Leverage existing identity and social graphs where your audience already is, e.g. Facebook Connect </li></ul><ul><li>Get your privacy and permission policies and processes aligned with an open strategy </li></ul><ul><li>Find your trust agents </li></ul><ul><ul><li>“ In Google I trust”, or will it be Facebook? </li></ul></ul>

2) Get your backend data
in order Remove multiple sign-ins, registration, and profiles for people Have a single identity for customers and prospects

3) Prepare to integrate social
networks into your organization Social networks will disrupt traditional information flows

Where are customers in the
org? Page

Summary <ul><li>Social networks will be
like air </li></ul><ul><li>The technologies are still being put in place to make this a reality, but it is inevitable </li></ul><ul><li>Open networks will be the new norm, so consider how you will open your business </li></ul>

Charlene Li Altimeter Group [email_address]
blog.altimetergroup.com Twitter: @charleneli Slides available at slideshare.net/charleneli Join me for a book signing at 5pm in the SXSW Bookstore on the Trade Show Floor Copyright © 2009 Altimeter Group