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THE FACEBOOK
FALLACY:
OPEN GRAPH = GOOGLE KILLER



877.568.7477
OneUpWeb.com



Provided by Oneupweb®
©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
the Shot heard ‘Round The Web.
Is Google Really
Under Attack?
In 1775 the Brits fired on the rebels in Concord, Massachusetts,
setting off the Revolutionary War. It was the shot heard ‘round
the world. And in the summer of 2010, Facebook, announced
the Open Graph search feature. According to the company,
“all Open Graph-enabled web pages will show up in search
when a user likes them.” A shot blasted across the internet and
resounding shockwaves rippled throughout the blogosphere. If
you missed it, this is how the headlines sounded off:

“Facebook Unleashes Open Graph Search Engine Declares War On Google”
- AllFacebook.com, June 24, 2010



“Facebook Open Graph Search Brings the Fight to Google”
- Fast Company, June 25, 2010



“Facebook Lights a Fire Under Google – Open Graph Search Engine”
- Search Engine Journal, June 25, 2010




01                                       877.568.7477 • OneUpWeb.com   ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
In the last year, Facebook has edged closer and closer to the
number one most trafficked web property—a position The Next Arms Race: Online Traffic
                                                                                                                                                                                    Google
that Google had battled with Yahoo and Microsoft over         200,00                                                                                                                Yahoo
until finally securing the top seat in 2008 (Figure 1).                                                                                                                             Facebook
And now Facebook, a search outsider, has stepped into the                                                                                                                           MySpace
ring. For the second week of March 2010, HitWise reported                                                                    Google overtakes Yahoo
that Facebook had surpassed Google in traffic. But does                              150,000
sheer traffic mean that Facebook’s Open Graph search




                                                                   Unique Visitors
engine can topple Google’s stronghold on the search




                                                                     (millions)
marketing industry?
Facebook is first and foremost a social networking site and                          100,000
the search functions, up until recently, have been used
primarily to reconnect with long lost friends. But Facebook
isn’t going it alone. There is an entangled history between
Facebook and the search industry. In 2004 and 2007 Google                             50,000
attempted—and failed—to acquire the burgeoning social                                                                                                 May 2008, Facebook surpasses
networking platform. Microsoft tried too, but Facebook                                                                                                Myspace in Unique visits
wouldn’t budge. So Microsoft took another approach
and in 2007, Microsoft invested $240 million dollars in the
company (Figure 2, next page). The relationship continues to
                                                                                            0
be leveraged as a strategic force against Google. Remember,                                              2007                     2008                    2009                 2010
Facebook is a social networking platform, not a search engine.      Figure 1. The numbers continue to climb—and Facebook is edging closer to overtaking search engines, like Google, as the most
                                                                    trafficked web property. [source: data compiled from Compete.com and ComScore].
But Mircosoft has Bing—the most likely contender that has
emerged so far that could challenge Google’s dominance in
search. And Microsoft’s Bing is powering Facebook’s Open            Search is well, clicking away. The fact is the war isn’t being                the rapidly expanding social networking site has the potential
Graph Search Engine.                                                waged over who will own the semantic web. For one, semantic                   to build something out of the user base that, for businesses
Bing provides the capabilities to search the Open Graph             search is not a new concept—in fact, semantic search engines                  and marketers, could potentially be a huge game changer.
and Facebook provides the demographic data. Many are                already exist, and what’s more, Google has been working                       And why should Google care? Search is the red herring. That
touting this relationship as a new frontier of social search.       with personalized results based on user’s search history and                  next digital revolution is raging on a different frontier. The plot
FastCompany framed it this way: “in short, Facebook can             geo-targeting for some time now.                                              thickens—and Oneupweb is set on unraveling the headlines.
start searching the Web at will, rather than merely its                                                                                           What’s at stake, who stands to benefit, and what does this
                                                                    The tantalizing factor, the number that should pique your
own site. Social semantic search, here we come.”1 Is                interest, is that in just a few years, Facebook has grown to 500
                                                                                                                                                  mean for your online marketing strategy?
Facebook maneuvering to take hold of the semantic web               million users. And if the growth rate holds, the Facebook
and ultimately topple Google?                                       population could nearly triple by 2012 (Figure 1). That’s huge.
The short answer is “Yes.” But all is not what it seems. The Red    That’s a lot of profiles. That’s a lot of user data. And from this,
Coats aren’t coming, there was no gunshot and the State of




02                                877.568.7477 • OneUpWeb.com      ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
FACEBOOK GROWTH
             1400                                                                                                                                      Number of Facebook Users
                                                                                                                                                       Projected Growth




             1200




             1000




              800
(millions)
  Users




              600




              400




              200




                0
                         2004                   2005                  2006                  2007                  2008                   2009                     2010                    2 011                2012
                         FEBRUARY               AUGUST               DECEMBER               OCTOBER               FEBRUARY               DECEMBER                 JUNE                    PREDICTED GROWTH     FEBRUARY
                         “The Facebook” is      Name officially      Facebook adds share    Microsoft takes a     Facebook joins         Over 350 million users   Facebook unveils Open   Facebook will        Projected growth edges
                         founded in a Harvard   changes to Facebook feature                 $240 million equity   OpenID,                are on facebook by       Graph search &          presumably put off   up to 1400 million,
                         dorm room.             from thefacebook.com                        stake in Facebook     feature goes public    years end                partnership with        its IPO until 2012   more than 3x the users
                                                                                            NOVEMBER              DECEMBER                                        Microsoft’s Bing                             in February 2010
                                                                                            Facebook launches     Facebook Connect
                                                                                            Facebook Ads          becomes available

Figure 2. Charting the growth and milestones of Facebook. Extrapolating the growth rate into the future, the Facebook population forecasted could nearly triple in two years (R2 value=0.9983) [source Facebook.com].




 03                                    877.568.7477 • OneUpWeb.com          ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
Getting to Know:
Open Graph
It’s complicated. But most relationships are. And making IT’S COMPLICATED
sense of Facebook’s Open Graph is going to be no less
difficult than explaining to a friend a convoluted film plot.
It begins with the intrigue and deception surrounding two
unlikely lovers—but rationalizing the details of a movie
romance is not necessarily the point. It’s the drama we
love—Ben’s affair with Mrs. Robinson pre-determines
his fate with the young Elaine Robinson. And it’s the
intangible intricacies that make movies—and social
media marketing—so very interesting; where with
movies, at least, there’s a narrative arc to help make sense
of it all. And that’s what makes Facebook’s Open Graph so
very compelling for online marketers.
Charting the behavior, preferences and connections
across a user’s social network and the web, according to               Relationships are the heart—and nodes—of the Open
many industry pundits, is a gateway to the semantic web                Graph. And it’s more than just mapping a user’s network;
experience. It is like providing a plot for a set of characters—       the Open Graph charts interests and habits across the
now their actions and behaviors make sense. Ultimately,                web. But will it change search as we know it?
they say, data-rich Facebook profiles will bridge the gap
between search and social. The idea is that, by tracking
                                                                    and “shared” on their graph. Therein lies a new level of
personal preferences on and off Facebook, it will become
                                                                    demographic targeting organized around consumer social
possible to build out demographic data across the web.
                                                                    graphs. Because successful search engine marketing begins
A more complete picture of a user’s interests and habits,
                                                                    with this simple premise: consumers aren’t searching for
many believe, will lead to richer and more meaningful
                                                                    keywords, they are searching for things they need or want.
search results for the user.
                                                                    And keywords are the tool du jour for accomplishing this. But
And for business? Rather than pushing a message across a            rather than using keywords, “semantic search” is a tool that
broad channel, consumers will be pulled in based on the             leads consumers to discover products and brands through
interests they themselves have selected, or rather, “liked”         their social connections.




04                                877.568.7477 • OneUpWeb.com      ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
Searching for Meaning…
And What The Heck Does Semantic
Search Have to Do With Facebook?
With an ironic twist, the phrases “semantic web” and The Open Graph is a platform that enables the                                                                 What this means: This ain’t Vegas. Facebook shares profile
“semantic search” have been stripped of any concrete “semantic web,” simply meaning that it establishes                                                            information with partnering sites, like Yelp (Figure 3).

meaning. But these are the words bloggers and industry links and relationships across the web that can all be traced
                                                                                                                                                                   And then Yelp completes the circle and sends back users
                                                               back to a user’s profile.                                                                           preferences to Facebook. It’s sharing across websites—
analysts are using to explain what the Open Graph does.                                                                                                            and that’s monumental news when it comes to filling out
                                                               The system is designed to connect the dots, namely between
If you said “it’s cold in here” and your friend got up and people and the things they like:                                                                        user profiles with more meaningful and robust data.
closed the window—that’s a semantic leap. In other words,                                                                                                          Take Moe, for example. Moe navigates to Yelp.com, Yelp
                                                               1.	 One login, one profile. Since 2006, Facebook users have
they decoded the meaning of your statement and extended            had the option to use their Facebook username and pass-
                                                                                                                                                                   recognizes Moe’s Facebook ID. Moe can share restaurant
your words into a sensible and pertinent action. Don’t hold        word to log in to third party sites. Open Graph has just
                                                                                                                                                                   reviews and recommendations with his Facebook friends
                                                                                                                                                                   straight from the Yelp website. And Moe can also see what
your breath waiting for Facebook to fetch you a blanket. But       made it easier for web developers with the implementa-
                                                                                                                                                                   his Facebook friends are doing on Yelp.
consider this angle: it may not be a blanket; rather, Facebook     tion of OAuth 2.0, a protocol that provides a simple and
                                                                   standard method to connect to web applications:
brings to you an ad targeted to a very specific and niche
interest of yours. Say, for a gardener, an upcoming flower
                                                                     “OAuth 2.0 is the next evolution of the OAuth
show in the area. But instead of searching for “flowers,” the
                                                                     protocol which was originally created in late 2006.
ad is displayed when the user logs in because Facebook               OAuth 2.0 focuses on client developer simplicity
knows the user.                                                      while providing specific authorization flows for web
                                                                                    applications, desktop applications, mobile phones,
                                                                                    and living room devices. “


     THE PERSONALIZED WEB




     Figure 3. Yelp allows users to connect with their Facebook profiles. Users can share recommendations or reviews with their Facebook network directly from the Yelp website.

05                                      877.568.7477 • OneUpWeb.com         ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
2.	 Real objects, real connections. The Open Graph protocol
    goes beyond “Liking” a webpage. Equipped with the right
    plugins and tags, a webpage becomes an “object” that
    can be shared on Facebook. Liking a pair of Levi jeans, for
    instance, is an example of connecting to an “object” on
    the Open Graph (Figure 4).

     What this means: A user’s activity outside of Facebook
     is fed into their news stream and network feeds—so
     their friends can see that they like a certain product or a
     particular restaurant. And when a user “likes” or shares an
     object, they are creating a link to that object that is stored
     on their profile.



     What businesses can do:          Whether your company is
     looking to get started with social media marketing, or
     just ready to take it further, Facebook Open Graph offers a
     variety of new functions that can help enhance consumer
     engagement. The first steps are to make sure your website
     is an object on the Open Graph—talk to your social media
     marketing partner or web development team to get the              Figure 4. Consumers can share products that they like with their friends on Facebook. Plugins can be
                                                                       modified so that users can also post comments directly to their profile.
     ball rolling. Second, consider what social plugins are right
     for your website (Figure 5). The “Like button” is the most
     prevalent, but other features, like “recommendations” may
     be particularly useful for e-commerce or travel websites.




                                                                       Figure 5. The tools to connect. A variety of social plugins are available that make it possible for businesses to integrate Facebook
                                                                       sharing right on their website [Source Facebook.com].



06                                  877.568.7477 • OneUpWeb.com       ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
The Emperor’s New Clothes:
Facebook Search Undressed
There are a number of reasons why Facebook is getting                   WEB IDENTITY
eyed as tomorrow’s Google. Users spend a lot of time on
Facebook, culminating in a months time 13 billion minutes
collectively.2 But comparing time on Google to time on
Facebook is apples and oranges. Google states clearly that                                                                                             WEB PERSONAS
“we may be the only people in the world who can say our
goal is to have people leave our homepage as quickly as
possible.”
                                                                                                                                                                          AOL        LinkedIn
And it’s not how quickly consumers get served, but why.
The most compelling reason to marketers why Facebook
                                                                                                                                                                       1% 2%                       MySpace
is tomorrow’s search leader is that, unlike Google’s search                                                                                                                                        7%
advertising business, Facebook is not constrained by keyword
searches. In other words, users have to be looking for something
to get served an ad on Google. Bindu Reddy, a former Google             Figure 6. On Mashable.com, readers can share content with their
                                                                                                                                                                   Facebook                   Yahoo
                                                                        social networks by signing in with their social networking user ID.
                                                                                                                                                                                           13%
AdWords project manager writes, “Facebook, on the other
hand, becomes the world’s identity gatekeeper—your age, sex,                                                                                                       46%
location, where you went to school, where you work, who your                                                                                                                                Twitter
friends are—all of this personal data is used to serve you tidbits                                                                                                                        14%
                                                                                                                                                                                 Google
of information that you are likely to be interested in.”
                                                                                                                                                                              17%
But are we getting duped to think that Facebook can dress
as both a social networking platform and a practical search
engine? For one, searching on Facebook is fundamentally
different than Google. People search for “objects”—that is,
other people, brands, or things—that they want to connect
with on Facebook’s platform. On Google, the purpose is to
find information to consume—news, product reviews, facts,
opinions, etc. Yet, news spreads like wildfire over the social
network. Consumers are connecting with and sharing content
                                                                                                                                                       Figure 7. Online Identities. Users are now logging into websites us-
across the web using their Facebook ID (Figure 6). And as the line                                                                                     ing existing social ids. Even before the Open Graph API was released,
between consuming and connecting blurs, so will the division                                                                                           almost half of social networking users were choosing Facebook Con-
                                                                                                                                                       nect over Google Buzz and Twitter to login into third-party websites,
separating search engines and social networking platforms.                                                                                             according to a study by Gigya.



07                                 877.568.7477 • OneUpWeb.com       ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
Underneath the Cloak:
The Facebook Profile
Facebook is not known for its search functions. So how are              SEARCH QUERIES, JUNE 2010
consumers using Facebook—and what does their behavior tell                                         12,000

us about the future of search and social? These are the facts:




                                                                        Number of Search Queries
                                                                                                   10,000




                                                                      Number of SearchQueries
1.	 Forty-six percent of social networking users
    are connecting through Facebook. Sharing has                                                    8,000




                                                                                                                  Google
                                                                             (millions)
                                                                              (Millions)
    never been easier. Social networking usernames and




                                                                                                                                                                                                                                                                     Fox Interactive Media
    passwords can be used to authenticate identity on                                               6,000




                                                                                                                                                                                                        MapQuest/All Other
                                                                                                                                              Yahoo
    third-party websites (Figure 7). This is an important




                                                                                                                                                                                                                                   Facebook.com
                                                                                                                                                              Craigslist, Inc.




                                                                                                                                                                                                                                                                                                                    Amazon Sites
    feature for building out trackable relationships on                                             4,000
    the semantic web. And Facebook IDs dominate social




                                                                                                                                   Bing




                                                                                                                                                                                                                                                                                                   Myspace
                                                                                                                                                                                        AOL LLC
    sharing online.




                                                                                                                                                                                                                                                        eBay
                                                                                                    2,000
2.	 436 million search queries, on par with eBay.
    The Volume of search queries on Facebook jumped                                   0
    10 percent in February 2010—after the search box                    Figure 8. Google owns the lion share of search queries. But will Facebook’s partnership with third-party sites change the way we
                                                                        search for and navigate the internet? [source: comScore expanded search query report February 2010 vs. January 2010].
    was move to a more prominent location on top of
    the page. Still, Facebook only handles a fraction of
                                                                       WORDS PER SEARCH - US
    searches compared to Google. To put that number in                                                3.5
    perspective, there are just as many searches on eBay as
    there are on Facebook (Figure 8). Will consumers think                                             3
    to use Facebook for search—or will the Open Graph
    partnerships with other sites, like Yelp, change how and                                          2.5

    where consumers search online?
                                                                      (millions)




                                                                                                       2
                                                                        Users




3.	 Two words: Moe Friendly. People search for people
                                                                                                      1.5
    on Facebook. The average Facebook search is two
    words (Figure 9). And most searches for people                                                                                                                                                                                                                                                 Sum of top entries
                                                                                                       1                                                                                                                                                                                           Sum of Facebook
    consist of—you guessed it, a first and last name
    query. Although, there has been a recent uptick in                                                0.5
    branded searches, like iPad; but this is likely the upshot
    of people looking to connect with brands they are                                                  0
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    already loyal to rather than searching to discover new
    products. In other venues, longer “keyword phrases” are                                                                  2008                                                                                            2009                                                                            2010
    more effective (and therefore valuable) for targeting               Figure 9. Facebook searches largely consist of a first and last name. Search queries on engines like Google have grown in length.
    precise information.


08                               877.568.7477 • OneUpWeb.com     ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
Spinning the Threads:
A little child suddenly gasped out,
“But he hasn’t got anything on.”
The weavers came to town telling the emperor that they could produce the finest cloth in the kingdom, but only sophisticated and intelligent people would actually be able to see and
appreciate the fabric. So when they dress the emperor in the new suit, he is too ashamed to admit that he can not see the fine clothes, so the tale goes. And with the announcement of
Facebook’s Open Graph search, the weavers set to work spinning:



               The Open Graph is searchable. Semantic                                                               “Facebook can search the web at will.”
               search is really just about more relevant search results derived from                                Really? No, not really. As one blogger put it, “Unlike Google
               contextual meanings and not just keywords and linking factors.                                       which sends out “Google Bots” to “crawl” the web, Facebook
               In the case of Facebook, the idea is that search results that are                                    makes websites come to them.” And this is an important point
               influenced by a user’s social graph will have more real-life relevancy                               to chew on—whereas Google indexes any web page, Facebook
               to users and therefore be more valuable. But going back to Fact #3,                                  will only pick up on web pages that have the proper Open
               people searches are more common on Facebook than service or                                          Graph (OG) meta-tags.
               product inquiries.




                                          from                                                                                                         to
                                          this                                                                                                        this
               Webpages on the graph will be treated                                                                Social Marketing Optimization (SMO)
               like any other Facebook page. Before, Facebook                                                       is the New SEO. In Facebook’s announcement, it was
               would only include Facebook pages in search results. With this
                                                                                                                    stated that only “Open Graph-enabled web pages” would appear
               new platform, external websites have the potential to show up
                                                                                                                    in the search results. What many people heard was this: “you
               in search results alongside regular Facebook pages. Third-party
                                                                                                                    can optimize for Facebook.” Or, worse yet, this came across to
               websites equipped with Open Graph protocol, like TripAdvisor.com
                                                                                                                    many as a signal that they could manipulate results with “Like”
               or OneUpWeb.com, will appear side by side in the search results with
                                                                                                                    baiting—all too reminiscent of the Cowboy SEO days.
               other Facebook page.




09                               877.568.7477 • OneUpWeb.com     ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
The Playing Field:
The Search Market Industry
Is Facebook really looking to get in on Google’s turf? Search is a The Secret Weapon: What if a                                                on profile information. “Cake” doesn’t always mean just one
competitive industry. And for good reason. The search engine with Search Engine Could Read Your                                                thing. For the techie, cake is a PHP development platform;
the most traffic can get top dollar for running ads—the more Mind?                                                                             to the hipster, it is a band that was popular in the late 1990’s.
                                                                                                                                               And for the consumer searching on a term, marketers have a
traffic, the greater the potential reach.                          What if a search engine knew your likes, dislikes, hobbies
                                                                                                                                               better chance at grabbing their attention if the ad resonates
                                                                and interests. Would users be more inclined to click on
In the mid 1990’s, Excite, Lycos and Yahoo! were the big                                                                                       with the consumer’s interests. The problem is this: how can
                                                                sponsored listings if ads were more nuanced and personal?
players. But something better came along. It was called                                                                                        a search engine acquire that kind of consumer data? The
                                                                So rather than always delivering the same Pillsbury ad to
PageRank. Google launched in September 1998 and in the                                                                                         Open Graph, many think, may be the answer.
                                                                any one searching for “cake,” the search engine would draw
first month of operation, the search engine answered only
10,000 queries.3 Over a decade later, Google receives that
many queries in a second. Google’s investment in search         Market Share and Search Traffic
has paid off. Garnering as much as two thirds of the search
                                                                             80%
market (Figure 10), the company has built a sound business
model on advertising. And to the searches goes the ad
                                                                             70%
revenue—Google’s search advertising business is a $25
million industry.4
                                                                             60%
And the software company, Microsoft, wants a piece of the
search pie. After unsuccessful attempts to grab hold with
                                                                             50%                                                                                                             Google Sites
                                                               (millions)




MSN.com, Microsoft recovered lost ground after launching                                                             Bing, Microsoft’s search
                                                                                                                                                                                             Yahoo! Sites
                                                                 Users




Bing in 2009. Bing’s growth has been slow and steady.                                                                engine, lauches May 2009.
                                                                             40%                                                                                                             Microsoft Sites
                                                                                                                     Microsoft sites were up 4.3
Strategically partnering with Yahoo and Facebook will help
                                                                                                                     points within a year.
Bing expand its reach.
                                                                             30%

                                                                             20%

                                                                             10%


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                                                                                                            2008                                         2009                                2010
                                                                Figure 10. Percent of search market share. Yahoo slipped 2.3 percentage points in the year after Bing came onto the scene.




10                              877.568.7477 • OneUpWeb.com    ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
Facebook’s Not-So-Secret
Weapon: Demographic Data
500 million profiles strong, the question is this: With this
data, will Facebook be better at knowing what individual
                                                                WHATWHAT WOULD HAVE THE GREATEST POSITIVE IMPACT
                                                                    WOULD HAVE THE THE GREATEST POSITIVE IMPACT
                                                                    WHAT WOULD HAVE GREATEST IMPACT ON SOCIAL
consumers want than Google? Facebook serves targeted                      IN SOCIAL MARKETING THE FUTURE?
                                                                MARKETING ONSOCIAL MARKETING IN THE FUTURE?
                                                                         ON THE FUTURE?
ads without the user even running a search—they simply
have to be logged in. And when asked what the number              Better demographic targeting on social
                                                                   Better demographic targeting on social
                                                                     networking sites or community sites                                                                               27%
                                                                                                                                                                                      27%
one “greatest positive impact will be on social media                 networking sites or community sites
marketing,” the answer was better demographic targeting                          Improved quality of content
                                                                                  Improved quality of content
(Figure 11). Imagine the possibilities: more relevant ads                               on social media sites
                                                                                         on social media sites                                                                      25%
                                                                                                                                                                                   25%
will translate into higher conversion rates. And that’s just
the tip of the iceberg.                                                              Better ways of measuring
                                                                                    Better ways of measuring
                                                                                          return on investment
                                                                                         return on investment
                                                                                                                                                                                   25%
                                                                                                                                                                                    25%

                                                                                        Better creative options
                                                                                      Better creative options
                                                                                     on social networking sites                                                             22%
                                                                                                                                                                             22%
                                                                                    on social networking sites
                                                                                 Better targeting of influential
                                                                                Better targeting of influential
                                                                                                    consumers                                                         19%
                                                                                                                                                                       19%
                                                                                                   consumers
                                                                        Better contextual targeting withing
                                                                       Better contextual targeting withing
                                                                                 customer-created content                                                             19%
                                                                                                                                                                       19%
                                                                                customer-created content
                                                                   Better measurement of brand metrics
                                                                  Better measurement of brand metrics
                                                                     (e.g. brand awareness, brand affinity)                                                         18%
                                                                                                                                                                     18%
                                                                   (e.g. brand awareness, brand affinity)
                                                                      Better measurement of the reach or
                                                                     Better measurement of the reach or
                                                                 word-of-mouth effect of viral campaigns                                                           17%
                                                                                                                                                                    17%
                                                                word-of-mouth effect of viral campaigns
                                                                       Better behavior targeting on socail
                                                                      networking sites targeting on socail
                                                                      Better behavior or community sites                                                        16%
                                                                    networking sites or community sites                                                         16%
                                                                       More consistent measurement and
                                                                      More consistent measurement sites
                                                                                      reporting across and                                                    15%
                                                                                    reporting across sites                                                    15%
                                                                   Better ways of achieving simultaneous
                                                                 Better wayslike achieving simultaneous
                                                                        reach of on television advertising                                                   14%
                                                                      reach like on television advertising                                                   14%
                                                                             More participation from other
                                                                            More participation from other
                                                                         departments within my company                                                  11%
                                                                       departments within my company
                                                                    (customer service, web development,                                                 11%
                                                                  (customer service, web development,
                                                                                   offline marketing, etc.)
                                                                                  offline marketing, etc.)

                                                                Figure 11. Better demographic targeting is believed to have a positive impact on social media marketing [Source: JupiterResearch/
                                                                ClickZ Social and Mobile Marketing Executive Survey].



11                              877.568.7477 • OneUpWeb.com    ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
Let them Eat Cake! Google                                       Read Between the Lines:
Wants to Give Marketers What                                    It’s Not About Sharing, And It’s
They Want                                                       Not About Search
And Google’s eyes are on the social transformation of the       Ad revenue is admittedly Google’s sweet spot (Figure                          When it comes down to it, for both Facebook and Google,
web. After a successful year in 2009, Google’s CEO Eric         12). Currently, marketers are willing to pay top dollar                       it is not about just giving their users the best search results
Schmidt acknowledged that 2010’s strategy was very much         for a Google sponsored listings or pay-per-click ad.                          or the most engaging experience—that’s only one side of
about ‘reinventing search; because as colleague Jonathan        Simply, Google has the traffic and can deliver the most                       the coin. Ad revenue on social networking sites is expected
Rosensweig reasoned, “you will trust a restaurant review        impressions. But Facebook has a stake in the ad game, too.                    to pick up dramatically in the next few years. Both Google
more from a friend, so maybe it should have a higher            Mark Zuckerberg, founder and CEO of Facebook, was clear                       and Facebook will be competing for a bigger share of
ranking, but only for you.”5 In the wake of the social boom,    about the business model: “we are working on building an                      advertising budgets—and that means giving marketers
Google is hedging their bets that the ground underneath         ad business, and that’s a big part of what we do.”8                           what they want: better demographic targeting.
the search empire is moving:
1.	 Consumer participation is at an all time high.              Net US Ad Revenue
    It is the age of discovery and recommendations. Mobile                  $12,000
    phones make it possible for virtual networks to travel
                                                                                                                                                                                      Google
    wherever the consumer goes. 175 million people will
                                                                                                                                                                                      Yahoo!
    connect to Facebook on any given day, and more                          $10,000                                                                                                   Microsoft
    than 65 million do so from their phones. When they
                                                                                                                                                                                      Facebook*
    connect. They share. Over 1.5 million pieces of content,
    including reviews and recommendations, are passed                        $8,000
    across the Facebook platform.6
                                                               (billions)
                                                                Dollars




2.	 Social media marketing is no longer a fad.
    Online social networks do not exist within a vacuum.                     $6,000
    Consumer habits and social behaviors are in fact
    deeply intertwined—sponsored results, display ads,
    recommendations, and social influences play a role in                    $4,000
    every decision, every click. ClickZ reported early this
    year on a survey that found 81 percent of respondents
    received product recommendations from friends and                        $2,000
    followers—and as many as three-quarters of that
    consumer group, cited that the online advice influenced
    purchasing decisions.7 And display advertising and                            0
    interactive polls grab consumer’s attention even when                                      2008                     2009                     2010                  2011
    they aren’t searching for a product.                        Figure 12. Net revenues after companies pay Traffic Acquisition Costs (TAC) to partner sites. Facebook’s ad model is a relative new-
                                                                comer. [Source: Google, Yahoo and Microsoft revenue from eMarketer, 2010].
                                                                *Reuters reported that Facebook generated revenue of $700 million to $800 million in 2009.




12                              877.568.7477 • OneUpWeb.com    ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
Prepare For Change,
And Follow the Money
The Open Graph is an enabling platform, simply meaning Get in on the ground floor                                                                   •	 Measure, refine and maximize ad spend. You wouldn’t use
that it facilitates sharing across the web—and it also creates There will likely be a redistribution of online ad revenue                              the same ad copy on a billboard as you would in a maga-
a universal protocol for tracking, aggregating and storing as social advertising grows, and social channels are sure                                   zine. And advertising across social channels requires simi-
                                                               to steal some of the share from Google PPC budgets. The                                 lar consideration. Test ad copy and creative to see what
user data. And by categorizing demographics, browsing digital shift is also transforming how businesses market
                                                                                                                                                       performs best for that particular outlet. Rich media and
behavior and consumption habits of Facebook users, will to consumers. Here’s what you can do to absorb the                                             interactive ads may also require a different strategy to en-
Open Graph offer what the dreams of a Googlezon and aftershock:                                                                                        gage the consumers.
Amazoogle promised?                                            •	 Plug-in to the Open Graph. The tools are there. And it                            •	 Don’t put all your eggs in one basket. There’s more than
At the early stages of development, it is difficult to predict           is easier than ever before for consumers to recommend                         one way to connect online (see page 8) and a key demo-
with any certainty what kind of ROI advertisers can expect               products and brands to their entire network with just a                       graphic may be using a different service. Be available to
in the future. One thing is for certain, and that is that the            simple mouse click—but they can’t share it if you’re web-                     your audience across social channels. Advertising is avail-
internet industry is volatile—what’s here today may be                   site isn’t integrated with the Open Graph API (see page 7                     able on many online networks including LinkedIn and
gone tomorrow. MySpace, Facebook, Google, Yahoo or                       for information on Open Graph plug-ins).                                      YouTube. Twitter is also in the process of fine-tuning their
Bing may leave the scene as quickly as they emerged. What             •	 Don’t jump head first into a shallow pool. In other words,                    advertising model.
will remain, however, is a rich and interactive advertising              there isn’t the same depth of knowledge when it comes                      •	 Call Oneupweb. The possibilities are monumental and the
space. Consider these facts:                                             to advertising on social networks as there is for more tra-                   details are dizzying—but Oneupweb is here and ready to
•	 In 2009, $4 billion was spent advertising on social                   ditional pay-per-click channels, like Google. And it’s ex-                    distill the noise and make sure business is poised for prof-
   networks.                                                             tremely important to monitor the success of campaigns                         it—no matter how the digital landscape evolve.
                                                                         early on. A history of poorly performing ads can damage
•	 Spending is expected to increase 68 percent this year                                                                                            Relationships don’t have to be complicated. Simply, by
                                                                         the future cost per action (CPA) of campaigns in the fu-
   with $7.5 billion going to advertising on social networks                                                                                        understanding each others needs and wants, businesses and
                                                                         ture. And for many companies, the added challenge is
   in 2010, according to a recent report from Borrell.                                                                                              consumers can build meaningful and valuable connections
                                                                         finding reliable analytics for measuring the effectiveness
                                                                                                                                                    online. So go ahead, introduce yourself.
•	 By 2015 the report projects ad spending to be upwards                 of social advertising channels. As the adage goes, you
   of $38 billion.                                                       can’t improve what you can’t measure.
The ground is shifting, and we are on the cusp of a new digital       •	 Keep an eye on the mark & collect your own data. Not
marketing revolution. This isn’t about Facebook or Google                all industries can expect to see the same kind of results
anymore—Mrs. Robinson is out of the picture—now it’s                     from social media marketing tactics. You don’t become a
about getting personal. And that’s the next level of online              sharpshooter just by painting on a target after the fact—
advertising. It’s direct. It’s social. And most importantly, it is       precision-targeting ad requires knowledge of the online
where your online advertising strategy needs to go in order              community. Placing an ad on Facebook of a woman in
to keep up with today’s on-the-go social consumer.                       a bikini may get a lot of clicks, but that doesn’t always
                                                                         translate into sales or qualified leads if what your selling
                                                                         is gardening supplies.


13                                 877.568.7477 • OneUpWeb.com       ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
ENDNOTES:
     1.	   Addy Dugdale’s speculations on the effects of Facebook’s Open
           Graph appeared in the artile Facebook Open Graph Search
           Brings the Fight to Google, (FastCompany, June 25, 2010).

     2.	   Nielsen, Top 10 Social Networking and Blog Sites Ranked by
           Total Minutes for April 2009 and Their Year-over-Year Percent
           Growth (U.S., Home and Work).

     3.	   Search Engines: a timeline. MarketWatch.com.

     4.	   Google 2009 Q4 Earnings.

     5.	   Erick Schonfeld (TechCrunch Jan 21, 2010).

     6.	   In an interview with TechCrunch, Facebook’s COO Sheryl
           Sandberg said that 175 million people log into Facebook each
           day.

     7.	   In a study conducted by social networking site myYearbook, 81
           percent of respondents said they’d received advice from friends
           and followers relating to a product purchase through a social
           site; 74 percent of those who received such advice found it to be
           influential in their decision. (Click Z, January 2010).

     8.	   From the privacy press conference, May 26, 2010, Facebook
           headquarters in Palo Alto, CA.




14                              877.568.7477 • OneUpWeb.com   ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
CONTACT US
ABOUT ONEUPWEB               |   Oneupweb has been an innovator in
digital marketing for more than a decade, creating integrated online
                                                                                     OUR SOCIAL SITES
                                                                                            twitter.com/Oneupweb
marketing plans that incorporate natural search engine optimization (SEO),
paid search marketing (PPC), social media marketing, digital pr, display                    facebook.com/Oneupweb
advertising, analytics, creative services, mobile marketing, website
                                                                                            youtube.com/Oneupweb
design, web 2.0 technology, audio/video/podcasting, and research,
training and consultation. An award-winning company, Oneupweb is
                                                                                            flickr.com/Oneupweb
privately held and located in Traverse City, Michigan. For more
information    on    Oneupweb,        please     call    231.922.9977,     visit            myspace.com/Oneupweb
OneUpWeb.com or follow them on Twitter@Oneupweb and @LisaWehr.
                                                                                            delicious.com/Oneupweb


                                                                                            linkedin.com/Oneupweb


                                                                                            vimeo.com/Oneupweb


                                                                                            friendfeed.com/Oneupweb




                                                                                                                                                              877.568.7477
                                                                                                                                                              ONEUPWEB.COM

                                                                                                                                                              13561 S. West Bayshore Drive
                                                                                                                                                              Suite 3000 Traverse City, MI 49684


15                               877.568.7477 • OneUpWeb.com    ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®

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Oneupweb facebook fallacy

  • 1. THE FACEBOOK FALLACY: OPEN GRAPH = GOOGLE KILLER 877.568.7477 OneUpWeb.com Provided by Oneupweb® ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 2. the Shot heard ‘Round The Web. Is Google Really Under Attack? In 1775 the Brits fired on the rebels in Concord, Massachusetts, setting off the Revolutionary War. It was the shot heard ‘round the world. And in the summer of 2010, Facebook, announced the Open Graph search feature. According to the company, “all Open Graph-enabled web pages will show up in search when a user likes them.” A shot blasted across the internet and resounding shockwaves rippled throughout the blogosphere. If you missed it, this is how the headlines sounded off: “Facebook Unleashes Open Graph Search Engine Declares War On Google” - AllFacebook.com, June 24, 2010 “Facebook Open Graph Search Brings the Fight to Google” - Fast Company, June 25, 2010 “Facebook Lights a Fire Under Google – Open Graph Search Engine” - Search Engine Journal, June 25, 2010 01 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 3. In the last year, Facebook has edged closer and closer to the number one most trafficked web property—a position The Next Arms Race: Online Traffic Google that Google had battled with Yahoo and Microsoft over 200,00 Yahoo until finally securing the top seat in 2008 (Figure 1). Facebook And now Facebook, a search outsider, has stepped into the MySpace ring. For the second week of March 2010, HitWise reported Google overtakes Yahoo that Facebook had surpassed Google in traffic. But does 150,000 sheer traffic mean that Facebook’s Open Graph search Unique Visitors engine can topple Google’s stronghold on the search (millions) marketing industry? Facebook is first and foremost a social networking site and 100,000 the search functions, up until recently, have been used primarily to reconnect with long lost friends. But Facebook isn’t going it alone. There is an entangled history between Facebook and the search industry. In 2004 and 2007 Google 50,000 attempted—and failed—to acquire the burgeoning social May 2008, Facebook surpasses networking platform. Microsoft tried too, but Facebook Myspace in Unique visits wouldn’t budge. So Microsoft took another approach and in 2007, Microsoft invested $240 million dollars in the company (Figure 2, next page). The relationship continues to 0 be leveraged as a strategic force against Google. Remember, 2007 2008 2009 2010 Facebook is a social networking platform, not a search engine. Figure 1. The numbers continue to climb—and Facebook is edging closer to overtaking search engines, like Google, as the most trafficked web property. [source: data compiled from Compete.com and ComScore]. But Mircosoft has Bing—the most likely contender that has emerged so far that could challenge Google’s dominance in search. And Microsoft’s Bing is powering Facebook’s Open Search is well, clicking away. The fact is the war isn’t being the rapidly expanding social networking site has the potential Graph Search Engine. waged over who will own the semantic web. For one, semantic to build something out of the user base that, for businesses Bing provides the capabilities to search the Open Graph search is not a new concept—in fact, semantic search engines and marketers, could potentially be a huge game changer. and Facebook provides the demographic data. Many are already exist, and what’s more, Google has been working And why should Google care? Search is the red herring. That touting this relationship as a new frontier of social search. with personalized results based on user’s search history and next digital revolution is raging on a different frontier. The plot FastCompany framed it this way: “in short, Facebook can geo-targeting for some time now. thickens—and Oneupweb is set on unraveling the headlines. start searching the Web at will, rather than merely its What’s at stake, who stands to benefit, and what does this The tantalizing factor, the number that should pique your own site. Social semantic search, here we come.”1 Is interest, is that in just a few years, Facebook has grown to 500 mean for your online marketing strategy? Facebook maneuvering to take hold of the semantic web million users. And if the growth rate holds, the Facebook and ultimately topple Google? population could nearly triple by 2012 (Figure 1). That’s huge. The short answer is “Yes.” But all is not what it seems. The Red That’s a lot of profiles. That’s a lot of user data. And from this, Coats aren’t coming, there was no gunshot and the State of 02 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 4. FACEBOOK GROWTH 1400 Number of Facebook Users Projected Growth 1200 1000 800 (millions) Users 600 400 200 0 2004 2005 2006 2007 2008 2009 2010 2 011 2012 FEBRUARY AUGUST DECEMBER OCTOBER FEBRUARY DECEMBER JUNE PREDICTED GROWTH FEBRUARY “The Facebook” is Name officially Facebook adds share Microsoft takes a Facebook joins Over 350 million users Facebook unveils Open Facebook will Projected growth edges founded in a Harvard changes to Facebook feature $240 million equity OpenID, are on facebook by Graph search & presumably put off up to 1400 million, dorm room. from thefacebook.com stake in Facebook feature goes public years end partnership with its IPO until 2012 more than 3x the users NOVEMBER DECEMBER Microsoft’s Bing in February 2010 Facebook launches Facebook Connect Facebook Ads becomes available Figure 2. Charting the growth and milestones of Facebook. Extrapolating the growth rate into the future, the Facebook population forecasted could nearly triple in two years (R2 value=0.9983) [source Facebook.com]. 03 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 5. Getting to Know: Open Graph It’s complicated. But most relationships are. And making IT’S COMPLICATED sense of Facebook’s Open Graph is going to be no less difficult than explaining to a friend a convoluted film plot. It begins with the intrigue and deception surrounding two unlikely lovers—but rationalizing the details of a movie romance is not necessarily the point. It’s the drama we love—Ben’s affair with Mrs. Robinson pre-determines his fate with the young Elaine Robinson. And it’s the intangible intricacies that make movies—and social media marketing—so very interesting; where with movies, at least, there’s a narrative arc to help make sense of it all. And that’s what makes Facebook’s Open Graph so very compelling for online marketers. Charting the behavior, preferences and connections across a user’s social network and the web, according to Relationships are the heart—and nodes—of the Open many industry pundits, is a gateway to the semantic web Graph. And it’s more than just mapping a user’s network; experience. It is like providing a plot for a set of characters— the Open Graph charts interests and habits across the now their actions and behaviors make sense. Ultimately, web. But will it change search as we know it? they say, data-rich Facebook profiles will bridge the gap between search and social. The idea is that, by tracking and “shared” on their graph. Therein lies a new level of personal preferences on and off Facebook, it will become demographic targeting organized around consumer social possible to build out demographic data across the web. graphs. Because successful search engine marketing begins A more complete picture of a user’s interests and habits, with this simple premise: consumers aren’t searching for many believe, will lead to richer and more meaningful keywords, they are searching for things they need or want. search results for the user. And keywords are the tool du jour for accomplishing this. But And for business? Rather than pushing a message across a rather than using keywords, “semantic search” is a tool that broad channel, consumers will be pulled in based on the leads consumers to discover products and brands through interests they themselves have selected, or rather, “liked” their social connections. 04 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 6. Searching for Meaning… And What The Heck Does Semantic Search Have to Do With Facebook? With an ironic twist, the phrases “semantic web” and The Open Graph is a platform that enables the What this means: This ain’t Vegas. Facebook shares profile “semantic search” have been stripped of any concrete “semantic web,” simply meaning that it establishes information with partnering sites, like Yelp (Figure 3). meaning. But these are the words bloggers and industry links and relationships across the web that can all be traced And then Yelp completes the circle and sends back users back to a user’s profile. preferences to Facebook. It’s sharing across websites— analysts are using to explain what the Open Graph does. and that’s monumental news when it comes to filling out The system is designed to connect the dots, namely between If you said “it’s cold in here” and your friend got up and people and the things they like: user profiles with more meaningful and robust data. closed the window—that’s a semantic leap. In other words, Take Moe, for example. Moe navigates to Yelp.com, Yelp 1. One login, one profile. Since 2006, Facebook users have they decoded the meaning of your statement and extended had the option to use their Facebook username and pass- recognizes Moe’s Facebook ID. Moe can share restaurant your words into a sensible and pertinent action. Don’t hold word to log in to third party sites. Open Graph has just reviews and recommendations with his Facebook friends straight from the Yelp website. And Moe can also see what your breath waiting for Facebook to fetch you a blanket. But made it easier for web developers with the implementa- his Facebook friends are doing on Yelp. consider this angle: it may not be a blanket; rather, Facebook tion of OAuth 2.0, a protocol that provides a simple and standard method to connect to web applications: brings to you an ad targeted to a very specific and niche interest of yours. Say, for a gardener, an upcoming flower “OAuth 2.0 is the next evolution of the OAuth show in the area. But instead of searching for “flowers,” the protocol which was originally created in late 2006. ad is displayed when the user logs in because Facebook OAuth 2.0 focuses on client developer simplicity knows the user. while providing specific authorization flows for web applications, desktop applications, mobile phones, and living room devices. “ THE PERSONALIZED WEB Figure 3. Yelp allows users to connect with their Facebook profiles. Users can share recommendations or reviews with their Facebook network directly from the Yelp website. 05 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 7. 2. Real objects, real connections. The Open Graph protocol goes beyond “Liking” a webpage. Equipped with the right plugins and tags, a webpage becomes an “object” that can be shared on Facebook. Liking a pair of Levi jeans, for instance, is an example of connecting to an “object” on the Open Graph (Figure 4). What this means: A user’s activity outside of Facebook is fed into their news stream and network feeds—so their friends can see that they like a certain product or a particular restaurant. And when a user “likes” or shares an object, they are creating a link to that object that is stored on their profile. What businesses can do: Whether your company is looking to get started with social media marketing, or just ready to take it further, Facebook Open Graph offers a variety of new functions that can help enhance consumer engagement. The first steps are to make sure your website is an object on the Open Graph—talk to your social media marketing partner or web development team to get the Figure 4. Consumers can share products that they like with their friends on Facebook. Plugins can be modified so that users can also post comments directly to their profile. ball rolling. Second, consider what social plugins are right for your website (Figure 5). The “Like button” is the most prevalent, but other features, like “recommendations” may be particularly useful for e-commerce or travel websites. Figure 5. The tools to connect. A variety of social plugins are available that make it possible for businesses to integrate Facebook sharing right on their website [Source Facebook.com]. 06 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 8. The Emperor’s New Clothes: Facebook Search Undressed There are a number of reasons why Facebook is getting WEB IDENTITY eyed as tomorrow’s Google. Users spend a lot of time on Facebook, culminating in a months time 13 billion minutes collectively.2 But comparing time on Google to time on Facebook is apples and oranges. Google states clearly that WEB PERSONAS “we may be the only people in the world who can say our goal is to have people leave our homepage as quickly as possible.” AOL LinkedIn And it’s not how quickly consumers get served, but why. The most compelling reason to marketers why Facebook 1% 2% MySpace is tomorrow’s search leader is that, unlike Google’s search 7% advertising business, Facebook is not constrained by keyword searches. In other words, users have to be looking for something to get served an ad on Google. Bindu Reddy, a former Google Figure 6. On Mashable.com, readers can share content with their Facebook Yahoo social networks by signing in with their social networking user ID. 13% AdWords project manager writes, “Facebook, on the other hand, becomes the world’s identity gatekeeper—your age, sex, 46% location, where you went to school, where you work, who your Twitter friends are—all of this personal data is used to serve you tidbits 14% Google of information that you are likely to be interested in.” 17% But are we getting duped to think that Facebook can dress as both a social networking platform and a practical search engine? For one, searching on Facebook is fundamentally different than Google. People search for “objects”—that is, other people, brands, or things—that they want to connect with on Facebook’s platform. On Google, the purpose is to find information to consume—news, product reviews, facts, opinions, etc. Yet, news spreads like wildfire over the social network. Consumers are connecting with and sharing content Figure 7. Online Identities. Users are now logging into websites us- across the web using their Facebook ID (Figure 6). And as the line ing existing social ids. Even before the Open Graph API was released, between consuming and connecting blurs, so will the division almost half of social networking users were choosing Facebook Con- nect over Google Buzz and Twitter to login into third-party websites, separating search engines and social networking platforms. according to a study by Gigya. 07 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 9. Underneath the Cloak: The Facebook Profile Facebook is not known for its search functions. So how are SEARCH QUERIES, JUNE 2010 consumers using Facebook—and what does their behavior tell 12,000 us about the future of search and social? These are the facts: Number of Search Queries 10,000 Number of SearchQueries 1. Forty-six percent of social networking users are connecting through Facebook. Sharing has 8,000 Google (millions) (Millions) never been easier. Social networking usernames and Fox Interactive Media passwords can be used to authenticate identity on 6,000 MapQuest/All Other Yahoo third-party websites (Figure 7). This is an important Facebook.com Craigslist, Inc. Amazon Sites feature for building out trackable relationships on 4,000 the semantic web. And Facebook IDs dominate social Bing Myspace AOL LLC sharing online. eBay 2,000 2. 436 million search queries, on par with eBay. The Volume of search queries on Facebook jumped 0 10 percent in February 2010—after the search box Figure 8. Google owns the lion share of search queries. But will Facebook’s partnership with third-party sites change the way we search for and navigate the internet? [source: comScore expanded search query report February 2010 vs. January 2010]. was move to a more prominent location on top of the page. Still, Facebook only handles a fraction of WORDS PER SEARCH - US searches compared to Google. To put that number in 3.5 perspective, there are just as many searches on eBay as there are on Facebook (Figure 8). Will consumers think 3 to use Facebook for search—or will the Open Graph partnerships with other sites, like Yelp, change how and 2.5 where consumers search online? (millions) 2 Users 3. Two words: Moe Friendly. People search for people 1.5 on Facebook. The average Facebook search is two words (Figure 9). And most searches for people Sum of top entries 1 Sum of Facebook consist of—you guessed it, a first and last name query. Although, there has been a recent uptick in 0.5 branded searches, like iPad; but this is likely the upshot of people looking to connect with brands they are 0 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR already loyal to rather than searching to discover new products. In other venues, longer “keyword phrases” are 2008 2009 2010 more effective (and therefore valuable) for targeting Figure 9. Facebook searches largely consist of a first and last name. Search queries on engines like Google have grown in length. precise information. 08 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 10. Spinning the Threads: A little child suddenly gasped out, “But he hasn’t got anything on.” The weavers came to town telling the emperor that they could produce the finest cloth in the kingdom, but only sophisticated and intelligent people would actually be able to see and appreciate the fabric. So when they dress the emperor in the new suit, he is too ashamed to admit that he can not see the fine clothes, so the tale goes. And with the announcement of Facebook’s Open Graph search, the weavers set to work spinning: The Open Graph is searchable. Semantic “Facebook can search the web at will.” search is really just about more relevant search results derived from Really? No, not really. As one blogger put it, “Unlike Google contextual meanings and not just keywords and linking factors. which sends out “Google Bots” to “crawl” the web, Facebook In the case of Facebook, the idea is that search results that are makes websites come to them.” And this is an important point influenced by a user’s social graph will have more real-life relevancy to chew on—whereas Google indexes any web page, Facebook to users and therefore be more valuable. But going back to Fact #3, will only pick up on web pages that have the proper Open people searches are more common on Facebook than service or Graph (OG) meta-tags. product inquiries. from to this this Webpages on the graph will be treated Social Marketing Optimization (SMO) like any other Facebook page. Before, Facebook is the New SEO. In Facebook’s announcement, it was would only include Facebook pages in search results. With this stated that only “Open Graph-enabled web pages” would appear new platform, external websites have the potential to show up in the search results. What many people heard was this: “you in search results alongside regular Facebook pages. Third-party can optimize for Facebook.” Or, worse yet, this came across to websites equipped with Open Graph protocol, like TripAdvisor.com many as a signal that they could manipulate results with “Like” or OneUpWeb.com, will appear side by side in the search results with baiting—all too reminiscent of the Cowboy SEO days. other Facebook page. 09 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 11. The Playing Field: The Search Market Industry Is Facebook really looking to get in on Google’s turf? Search is a The Secret Weapon: What if a on profile information. “Cake” doesn’t always mean just one competitive industry. And for good reason. The search engine with Search Engine Could Read Your thing. For the techie, cake is a PHP development platform; the most traffic can get top dollar for running ads—the more Mind? to the hipster, it is a band that was popular in the late 1990’s. And for the consumer searching on a term, marketers have a traffic, the greater the potential reach. What if a search engine knew your likes, dislikes, hobbies better chance at grabbing their attention if the ad resonates and interests. Would users be more inclined to click on In the mid 1990’s, Excite, Lycos and Yahoo! were the big with the consumer’s interests. The problem is this: how can sponsored listings if ads were more nuanced and personal? players. But something better came along. It was called a search engine acquire that kind of consumer data? The So rather than always delivering the same Pillsbury ad to PageRank. Google launched in September 1998 and in the Open Graph, many think, may be the answer. any one searching for “cake,” the search engine would draw first month of operation, the search engine answered only 10,000 queries.3 Over a decade later, Google receives that many queries in a second. Google’s investment in search Market Share and Search Traffic has paid off. Garnering as much as two thirds of the search 80% market (Figure 10), the company has built a sound business model on advertising. And to the searches goes the ad 70% revenue—Google’s search advertising business is a $25 million industry.4 60% And the software company, Microsoft, wants a piece of the search pie. After unsuccessful attempts to grab hold with 50% Google Sites (millions) MSN.com, Microsoft recovered lost ground after launching Bing, Microsoft’s search Yahoo! Sites Users Bing in 2009. Bing’s growth has been slow and steady. engine, lauches May 2009. 40% Microsoft Sites Microsoft sites were up 4.3 Strategically partnering with Yahoo and Facebook will help points within a year. Bing expand its reach. 30% 20% 10% 0 FEB APR JUN AUG DEC FEB APR JUN AUG DEC FEB APR JUN 2008 2009 2010 Figure 10. Percent of search market share. Yahoo slipped 2.3 percentage points in the year after Bing came onto the scene. 10 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 12. Facebook’s Not-So-Secret Weapon: Demographic Data 500 million profiles strong, the question is this: With this data, will Facebook be better at knowing what individual WHATWHAT WOULD HAVE THE GREATEST POSITIVE IMPACT WOULD HAVE THE THE GREATEST POSITIVE IMPACT WHAT WOULD HAVE GREATEST IMPACT ON SOCIAL consumers want than Google? Facebook serves targeted IN SOCIAL MARKETING THE FUTURE? MARKETING ONSOCIAL MARKETING IN THE FUTURE? ON THE FUTURE? ads without the user even running a search—they simply have to be logged in. And when asked what the number Better demographic targeting on social Better demographic targeting on social networking sites or community sites 27% 27% one “greatest positive impact will be on social media networking sites or community sites marketing,” the answer was better demographic targeting Improved quality of content Improved quality of content (Figure 11). Imagine the possibilities: more relevant ads on social media sites on social media sites 25% 25% will translate into higher conversion rates. And that’s just the tip of the iceberg. Better ways of measuring Better ways of measuring return on investment return on investment 25% 25% Better creative options Better creative options on social networking sites 22% 22% on social networking sites Better targeting of influential Better targeting of influential consumers 19% 19% consumers Better contextual targeting withing Better contextual targeting withing customer-created content 19% 19% customer-created content Better measurement of brand metrics Better measurement of brand metrics (e.g. brand awareness, brand affinity) 18% 18% (e.g. brand awareness, brand affinity) Better measurement of the reach or Better measurement of the reach or word-of-mouth effect of viral campaigns 17% 17% word-of-mouth effect of viral campaigns Better behavior targeting on socail networking sites targeting on socail Better behavior or community sites 16% networking sites or community sites 16% More consistent measurement and More consistent measurement sites reporting across and 15% reporting across sites 15% Better ways of achieving simultaneous Better wayslike achieving simultaneous reach of on television advertising 14% reach like on television advertising 14% More participation from other More participation from other departments within my company 11% departments within my company (customer service, web development, 11% (customer service, web development, offline marketing, etc.) offline marketing, etc.) Figure 11. Better demographic targeting is believed to have a positive impact on social media marketing [Source: JupiterResearch/ ClickZ Social and Mobile Marketing Executive Survey]. 11 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 13. Let them Eat Cake! Google Read Between the Lines: Wants to Give Marketers What It’s Not About Sharing, And It’s They Want Not About Search And Google’s eyes are on the social transformation of the Ad revenue is admittedly Google’s sweet spot (Figure When it comes down to it, for both Facebook and Google, web. After a successful year in 2009, Google’s CEO Eric 12). Currently, marketers are willing to pay top dollar it is not about just giving their users the best search results Schmidt acknowledged that 2010’s strategy was very much for a Google sponsored listings or pay-per-click ad. or the most engaging experience—that’s only one side of about ‘reinventing search; because as colleague Jonathan Simply, Google has the traffic and can deliver the most the coin. Ad revenue on social networking sites is expected Rosensweig reasoned, “you will trust a restaurant review impressions. But Facebook has a stake in the ad game, too. to pick up dramatically in the next few years. Both Google more from a friend, so maybe it should have a higher Mark Zuckerberg, founder and CEO of Facebook, was clear and Facebook will be competing for a bigger share of ranking, but only for you.”5 In the wake of the social boom, about the business model: “we are working on building an advertising budgets—and that means giving marketers Google is hedging their bets that the ground underneath ad business, and that’s a big part of what we do.”8 what they want: better demographic targeting. the search empire is moving: 1. Consumer participation is at an all time high. Net US Ad Revenue It is the age of discovery and recommendations. Mobile $12,000 phones make it possible for virtual networks to travel Google wherever the consumer goes. 175 million people will Yahoo! connect to Facebook on any given day, and more $10,000 Microsoft than 65 million do so from their phones. When they Facebook* connect. They share. Over 1.5 million pieces of content, including reviews and recommendations, are passed $8,000 across the Facebook platform.6 (billions) Dollars 2. Social media marketing is no longer a fad. Online social networks do not exist within a vacuum. $6,000 Consumer habits and social behaviors are in fact deeply intertwined—sponsored results, display ads, recommendations, and social influences play a role in $4,000 every decision, every click. ClickZ reported early this year on a survey that found 81 percent of respondents received product recommendations from friends and $2,000 followers—and as many as three-quarters of that consumer group, cited that the online advice influenced purchasing decisions.7 And display advertising and 0 interactive polls grab consumer’s attention even when 2008 2009 2010 2011 they aren’t searching for a product. Figure 12. Net revenues after companies pay Traffic Acquisition Costs (TAC) to partner sites. Facebook’s ad model is a relative new- comer. [Source: Google, Yahoo and Microsoft revenue from eMarketer, 2010]. *Reuters reported that Facebook generated revenue of $700 million to $800 million in 2009. 12 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 14. Prepare For Change, And Follow the Money The Open Graph is an enabling platform, simply meaning Get in on the ground floor • Measure, refine and maximize ad spend. You wouldn’t use that it facilitates sharing across the web—and it also creates There will likely be a redistribution of online ad revenue the same ad copy on a billboard as you would in a maga- a universal protocol for tracking, aggregating and storing as social advertising grows, and social channels are sure zine. And advertising across social channels requires simi- to steal some of the share from Google PPC budgets. The lar consideration. Test ad copy and creative to see what user data. And by categorizing demographics, browsing digital shift is also transforming how businesses market performs best for that particular outlet. Rich media and behavior and consumption habits of Facebook users, will to consumers. Here’s what you can do to absorb the interactive ads may also require a different strategy to en- Open Graph offer what the dreams of a Googlezon and aftershock: gage the consumers. Amazoogle promised? • Plug-in to the Open Graph. The tools are there. And it • Don’t put all your eggs in one basket. There’s more than At the early stages of development, it is difficult to predict is easier than ever before for consumers to recommend one way to connect online (see page 8) and a key demo- with any certainty what kind of ROI advertisers can expect products and brands to their entire network with just a graphic may be using a different service. Be available to in the future. One thing is for certain, and that is that the simple mouse click—but they can’t share it if you’re web- your audience across social channels. Advertising is avail- internet industry is volatile—what’s here today may be site isn’t integrated with the Open Graph API (see page 7 able on many online networks including LinkedIn and gone tomorrow. MySpace, Facebook, Google, Yahoo or for information on Open Graph plug-ins). YouTube. Twitter is also in the process of fine-tuning their Bing may leave the scene as quickly as they emerged. What • Don’t jump head first into a shallow pool. In other words, advertising model. will remain, however, is a rich and interactive advertising there isn’t the same depth of knowledge when it comes • Call Oneupweb. The possibilities are monumental and the space. Consider these facts: to advertising on social networks as there is for more tra- details are dizzying—but Oneupweb is here and ready to • In 2009, $4 billion was spent advertising on social ditional pay-per-click channels, like Google. And it’s ex- distill the noise and make sure business is poised for prof- networks. tremely important to monitor the success of campaigns it—no matter how the digital landscape evolve. early on. A history of poorly performing ads can damage • Spending is expected to increase 68 percent this year Relationships don’t have to be complicated. Simply, by the future cost per action (CPA) of campaigns in the fu- with $7.5 billion going to advertising on social networks understanding each others needs and wants, businesses and ture. And for many companies, the added challenge is in 2010, according to a recent report from Borrell. consumers can build meaningful and valuable connections finding reliable analytics for measuring the effectiveness online. So go ahead, introduce yourself. • By 2015 the report projects ad spending to be upwards of social advertising channels. As the adage goes, you of $38 billion. can’t improve what you can’t measure. The ground is shifting, and we are on the cusp of a new digital • Keep an eye on the mark & collect your own data. Not marketing revolution. This isn’t about Facebook or Google all industries can expect to see the same kind of results anymore—Mrs. Robinson is out of the picture—now it’s from social media marketing tactics. You don’t become a about getting personal. And that’s the next level of online sharpshooter just by painting on a target after the fact— advertising. It’s direct. It’s social. And most importantly, it is precision-targeting ad requires knowledge of the online where your online advertising strategy needs to go in order community. Placing an ad on Facebook of a woman in to keep up with today’s on-the-go social consumer. a bikini may get a lot of clicks, but that doesn’t always translate into sales or qualified leads if what your selling is gardening supplies. 13 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 15. ENDNOTES: 1. Addy Dugdale’s speculations on the effects of Facebook’s Open Graph appeared in the artile Facebook Open Graph Search Brings the Fight to Google, (FastCompany, June 25, 2010). 2. Nielsen, Top 10 Social Networking and Blog Sites Ranked by Total Minutes for April 2009 and Their Year-over-Year Percent Growth (U.S., Home and Work). 3. Search Engines: a timeline. MarketWatch.com. 4. Google 2009 Q4 Earnings. 5. Erick Schonfeld (TechCrunch Jan 21, 2010). 6. In an interview with TechCrunch, Facebook’s COO Sheryl Sandberg said that 175 million people log into Facebook each day. 7. In a study conducted by social networking site myYearbook, 81 percent of respondents said they’d received advice from friends and followers relating to a product purchase through a social site; 74 percent of those who received such advice found it to be influential in their decision. (Click Z, January 2010). 8. From the privacy press conference, May 26, 2010, Facebook headquarters in Palo Alto, CA. 14 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®
  • 16. CONTACT US ABOUT ONEUPWEB | Oneupweb has been an innovator in digital marketing for more than a decade, creating integrated online OUR SOCIAL SITES twitter.com/Oneupweb marketing plans that incorporate natural search engine optimization (SEO), paid search marketing (PPC), social media marketing, digital pr, display facebook.com/Oneupweb advertising, analytics, creative services, mobile marketing, website youtube.com/Oneupweb design, web 2.0 technology, audio/video/podcasting, and research, training and consultation. An award-winning company, Oneupweb is flickr.com/Oneupweb privately held and located in Traverse City, Michigan. For more information on Oneupweb, please call 231.922.9977, visit myspace.com/Oneupweb OneUpWeb.com or follow them on Twitter@Oneupweb and @LisaWehr. delicious.com/Oneupweb linkedin.com/Oneupweb vimeo.com/Oneupweb friendfeed.com/Oneupweb 877.568.7477 ONEUPWEB.COM 13561 S. West Bayshore Drive Suite 3000 Traverse City, MI 49684 15 877.568.7477 • OneUpWeb.com ©2010—All Information in This Document is Copyright Protected and the Property of Oneupweb®