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Social Network Service


     Prepared by Wesley Shu
    Ph.D. University of Arizona

                                  1
Table of Content
   Importance of SNS (Social Network Service)
   Ties
   Swarm Intelligence
   Facebook
   SNS for Busine...
IMPORTANCE OF SNS


                    3
Importance of SNS
   Problem of Marketing
   Gatekeeper




                          4
Importance of Social Networking
   Microsoft invests $240 million in Facebook
   The software maker wins in bidding war wi...
Marketing
   John Wanamaker, father of modern advertising,
   “Half the money I spend on advertising is wasted;
   the tro...
Marketing Problems in China
   King of the Bidders at CCTV (央視標王):
   2010 Chinese New Year Eve: Mengniu,
   RMB340M (US$5...
Marketing Problems in China
   To cover first-tier cities, advertisement
   expense > US$6M
   To cover second-tier cities...
Marketing Problems in China
   Marketing companies may not be
   professional enough
   Public data are not reliable.

 亂槍...
Marketing
   Viral marketing
   “Facebook” Marketing




                          10
Gatekeeper
   See Gatekeeper file – Small World
   Its operation relies on Six Degree of
   Separation




               ...
Six Degree of Separation
Experiment by Microsoft
   By studying billions of electronic messages, they
   worked out that a...
Six Degree of Separation
Experiment by Microsoft
   The database covered all the Microsoft Messenger
   instant-messaging ...
Six Degree of Separation
Experiment by Microsoft
   Eric Horvitz and fellow researcher Jure Leskovec
   considered two peo...
Six Degree of Separation
Experiment by Microsoft
   They found that the average length was 6.6 hops.
   That may reduce to...
Six Degree of Separation




                           Return


                                16
The strength of a tie is a
       combination of the amount of
TIES   time, the emotional intensity, the
       intimacy (...
Strong Tie and Weak Tie
   SNS: Integrate and
   connect PEOPLE.
   But Facebook and
   MySpace or
   LinkedIn are
   diff...
Strong Tie and Weak Tie
   People‟s relationships are ripple-style – from
   strong ties to absent ties.
   Strong tie – t...
Strong Tie and Weak Tie
 Problem of Strong Ties
   Redundant information
   Overlapping relationships
   Homogeneity
   No...
Strong Tie and Weak Tie
   Weak Ties are the circles where people and I are
   related but do not have deep relationships....
Strong Tie and Weak Tie
   Potential Ties are the circles where people and I
   are barely related.
   Quantitatively spea...
23
Ties as Bridges


  or potential ties




                      24
Ties as Bridges




 or potential ties

                     25
Ties as Bridges
   A                                   D
                              C
          B
                   ?
...
Strong Tie and Weak Tie
     In 1973, Granovetter from Johns Hopkins found:
     Among those who found a new job through
 ...
Strong Tie and Weak Tie
   “Often when I asked respondents whether a friend
   had told them about their current job, they...
Wikitude World Browser
         Local File




Return

                         29
SWARM INTELLIGENCE


                     30
Swarm Intelligence
Why ants can always
find the shortest
routes to find food?

Eric Bonabeau and Christopher Meyer,
“Swarm...
Swarm Intelligence
   Pheromone – repeat more on a shorter route
   More pheromone attracts more ants; and
   more pheromo...
Swarm Intelligence
   In the ubiquitous Internet, such self-
   adaptability and self-organization should be
   the market...
Return


     34
FACEBOOK MARKETING
PRINCIPLES
                     35
Marketing in Strong And Weak Ties
   The effect of a marketing campaign on a
   strong tie cannot spur.
   The effect of a...
37
Marketing in Strong And Weak Ties
  Affiliate marketing
  either is not
  contextual (targeted)
  marketing, or is seller-...
Marketing in Strong And Weak Ties
  Affiliate marketing
  does not construct a
  network
  Facebook marketing
  couples wi...
Marketing in Strong And Weak Ties
   Affiliate marketing
   does not create or
   collect information
   Facebook marketin...
Marketing in Strong And Weak Ties
 Information from Facebook
   The strength of ties between two people.
   The category, ...
Marketing in Strong And Weak Ties
Information from Facebook
  In the Facebook era, you are the
  center of the (your) worl...
People help you collect data



There is a limit to our life, but to knowledge there is
no limit. With what is limited to ...
Marketing in Strong And Weak Ties
  Orderlessly orderly –
  survival kit in a jungle
  Architecture of
  participation
  W...
Facebook As “Gatekeeper”
   Facebook can be an organization‟s
   gatekeeper.
   Through Facebook, you are forming
   gatek...
Gatekeeping and Guanxi
Gatekeeping        Guanxi
 Open business      Closed circle
 Spur innovation    Innovation makes gu...
Facebook As Weak Tie
   Facebook build better weak tie
   Weak tie is the missing piece of marketing
     Most advertiseme...
Facebook Company Case
 Serena Software
   Serena Software uses Facebook as their Intranet
   and allows employees to use F...
Facebook Company Case
 I will NOT be participating in any Recession
   Affinity Group
   MIT Initiative on Technology and ...
50
51
HOMEWORK


           52
Homework
 Tim Brown’s Speech




                      53
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07 social network service as marketing of the future

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07 social network service as marketing of the future

  1. 1. Social Network Service Prepared by Wesley Shu Ph.D. University of Arizona 1
  2. 2. Table of Content Importance of SNS (Social Network Service) Ties Swarm Intelligence Facebook SNS for Business – Groundswell iPod Web2 2
  3. 3. IMPORTANCE OF SNS 3
  4. 4. Importance of SNS Problem of Marketing Gatekeeper 4
  5. 5. Importance of Social Networking Microsoft invests $240 million in Facebook The software maker wins in bidding war with Google, buys 1.6 percent share Company value $15 Billion! 5
  6. 6. Marketing John Wanamaker, father of modern advertising, “Half the money I spend on advertising is wasted; the trouble is I don't know which half.” Over-delivery, no distinct audience 6
  7. 7. Marketing Problems in China King of the Bidders at CCTV (央視標王): 2010 Chinese New Year Eve: Mengniu, RMB340M (US$50M) (2009.11.19) CCTV income in a day: RMB10.9B (US$2.8B), Last year, RMB9.2B (US$1.35B) 7
  8. 8. Marketing Problems in China To cover first-tier cities, advertisement expense > US$6M To cover second-tier cities, another US$3M To cover 30 cities, at least US$12M 8
  9. 9. Marketing Problems in China Marketing companies may not be professional enough Public data are not reliable. 亂槍打鳥,浪擲千金 9
  10. 10. Marketing Viral marketing “Facebook” Marketing 10
  11. 11. Gatekeeper See Gatekeeper file – Small World Its operation relies on Six Degree of Separation 11
  12. 12. Six Degree of Separation Experiment by Microsoft By studying billions of electronic messages, they worked out that any two strangers are, on average, distanced by precisely 6.6 degrees of separation. Researchers at Microsoft studied records of 30 billion electronic conversations among 180 million people in various countries, according to the Washington Post. 12
  13. 13. Six Degree of Separation Experiment by Microsoft The database covered all the Microsoft Messenger instant-messaging network in June 2006, equivalent to roughly half the world's instant- messaging traffic at that time. 13
  14. 14. Six Degree of Separation Experiment by Microsoft Eric Horvitz and fellow researcher Jure Leskovec considered two people to be acquaintances if they had sent one another a message. They looked at the minimum chain lengths it would take to connect 180 million different pairs of users in the database. 14
  15. 15. Six Degree of Separation Experiment by Microsoft They found that the average length was 6.6 hops. That may reduce to degree of one: Barack Obama already has well over a million Facebook friends. 15
  16. 16. Six Degree of Separation Return 16
  17. 17. The strength of a tie is a combination of the amount of TIES time, the emotional intensity, the intimacy (mutual confiding), and the reciprocal services which characterize the tie. 17
  18. 18. Strong Tie and Weak Tie SNS: Integrate and connect PEOPLE. But Facebook and MySpace or LinkedIn are different. 18
  19. 19. Strong Tie and Weak Tie People‟s relationships are ripple-style – from strong ties to absent ties. Strong tie – the circle where people and I have regular and essential exchange of information, ideas, thoughts, personal items, etc., usually once a week. 19
  20. 20. Strong Tie and Weak Tie Problem of Strong Ties Redundant information Overlapping relationships Homogeneity No “Neurite,” no gatekeeper 20
  21. 21. Strong Tie and Weak Tie Weak Ties are the circles where people and I are related but do not have deep relationships. Quantitatively speaking, people in a weak tie with me contact me at most once every other week, but at least once a year. 21
  22. 22. Strong Tie and Weak Tie Potential Ties are the circles where people and I are barely related. Quantitatively speaking, people in a potential tie with me contact me at most once a year. 22
  23. 23. 23
  24. 24. Ties as Bridges or potential ties 24
  25. 25. Ties as Bridges or potential ties 25
  26. 26. Ties as Bridges A D C B ? Without the weak tie, AB and CD are disconnected With the weak tie BC, AB, AC, AC, and BD are all connected AB and CD are two heterogonous groups! If B and C has strong tie, they all are in a homogeneous group. 26
  27. 27. Strong Tie and Weak Tie In 1973, Granovetter from Johns Hopkins found: Among those who found a new job through contacts, 16.7% reported that they saw their contact often at the time, 55.6% said occasionally, and 27.8% rarely (N = 54). Mark S. Granovetter, “The Strength of Weak Ties,” American Journal of Sociology, Volume 78, Issue 6 (May, 1973), 1360-1380. 27
  28. 28. Strong Tie and Weak Tie “Often when I asked respondents whether a friend had told them about their current job, they said, „Not a friend, an acquaintance.‟” The effectiveness of viral marketing relies on „weak ties.‟ 28
  29. 29. Wikitude World Browser Local File Return 29
  30. 30. SWARM INTELLIGENCE 30
  31. 31. Swarm Intelligence Why ants can always find the shortest routes to find food? Eric Bonabeau and Christopher Meyer, “Swarm Intelligence,” Harvard Business Review, May 2001. 31
  32. 32. Swarm Intelligence Pheromone – repeat more on a shorter route More pheromone attracts more ants; and more pheromone When food is consumed up, fewer ants returned, and pheromone evaporates faster, so fewer ants take that route. 32
  33. 33. Swarm Intelligence In the ubiquitous Internet, such self- adaptability and self-organization should be the market feature: Invisible hand Ambient awareness (周覺) in this complex system (e.g., News Feed) 33
  34. 34. Return 34
  35. 35. FACEBOOK MARKETING PRINCIPLES 35
  36. 36. Marketing in Strong And Weak Ties The effect of a marketing campaign on a strong tie cannot spur. The effect of a marketing campaign without considering „ties‟ can be wasteful. Marketing with ties! – more aggressive than affiliate marketing 36
  37. 37. 37
  38. 38. Marketing in Strong And Weak Ties Affiliate marketing either is not contextual (targeted) marketing, or is seller- based contextual. Facebook marketing is customer-based contextual. 38
  39. 39. Marketing in Strong And Weak Ties Affiliate marketing does not construct a network Facebook marketing couples with social networks from strong ties to absent ties. 39
  40. 40. Marketing in Strong And Weak Ties Affiliate marketing does not create or collect information Facebook marketing creates your own information systems, databases, and networks. 40
  41. 41. Marketing in Strong And Weak Ties Information from Facebook The strength of ties between two people. The category, attributes, interests… of a person Vast database 41
  42. 42. Marketing in Strong And Weak Ties Information from Facebook In the Facebook era, you are the center of the (your) world. 42
  43. 43. People help you collect data There is a limit to our life, but to knowledge there is no limit. With what is limited to pursue after what is unlimited is a perilous thing. 43
  44. 44. Marketing in Strong And Weak Ties Orderlessly orderly – survival kit in a jungle Architecture of participation What‟s more – Platform as a Service! 44
  45. 45. Facebook As “Gatekeeper” Facebook can be an organization‟s gatekeeper. Through Facebook, you are forming gatekeepers, not „guanxi.‟ 45
  46. 46. Gatekeeping and Guanxi Gatekeeping Guanxi Open business Closed circle Spur innovation Innovation makes guanxi Transparent less useful Better hide everything from outsiders 46
  47. 47. Facebook As Weak Tie Facebook build better weak tie Weak tie is the missing piece of marketing Most advertisements either focused on strong ties or potential ties Multi-level marketing on weak tie 47
  48. 48. Facebook Company Case Serena Software Serena Software uses Facebook as their Intranet and allows employees to use Facebook freely on Friday afternoon. Saving money, since the vast majority of its 800 employees work outside of its headquarters. Serving as neurites/gatekeepers – one-to-one marketing 48
  49. 49. Facebook Company Case I will NOT be participating in any Recession Affinity Group MIT Initiative on Technology and Self 49
  50. 50. 50
  51. 51. 51
  52. 52. HOMEWORK 52
  53. 53. Homework Tim Brown’s Speech 53

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