PDA

View Full Version : Chatter Why is it advantageous for companies to channel their business through Facebook?



ElectricAye
02-11-2012, 09:25 PM
Quoting this: http://seattletimes.nwsource.com/html/opinion/2017469501_harrop10.html

...Stock analysts are valuing Facebook as high as $100 billion. That would make your social media company worth more than Caterpillar, Ford or Kraft Foods. The interesting part is that you have absolutely nothing to sell except information about your members....


Okay, so I can understand why individuals might be dumb enough to get sucked into the Facebook frenzy. It's fun, it's sorta new, and it's the herd effect in full force. The average person has no idea how all their activities are being tracked by Facebook even when they are not logged onto Facebook. And some people don't really care that they are being branded and toe-tagged as they move through this friendly-looking cattle chute of social media. But I'm really baffled that companies, corporations, institutions of all kinds are allowing big chunks of their business to be channeled through Facebook, thus in effect allowing Facebook to observe their customers, analyze their business activities, amass tons of data on their business practices that could easily be sold to competitors, financial predators, even foreign governments, etc. So I can't understand what these companies are thinking.

Can somebody please explain to me why businesses would so blissfully allow another company (Facebook) to amass so much valuable information about their business?



http://cezl.files.wordpress.com/2011/06/facebook-big-brother.jpg

Oldbitcollector (Jeff)
02-11-2012, 09:29 PM
I avoided Facebook like the plague for the first couple years.. then I realized something.. If you have a product that you want folks to know about, you need to "go where the people are." It's really no complex than that IMHO.

OBC

ratronic
02-11-2012, 09:45 PM
I have a Facebook account mainly to see what everybody is up too (My son, his wife, friends etc.) but I don't play any of their games and only post a Happybirthday or Merry christmas once inawhile. Maybe I'm from the old school but it seems people are having conversations that would have been private in the past are now doing it publicly.

GordonMcComb
02-11-2012, 10:22 PM
You don't channel your business through "FriendFace," you just use as it as yet another marketing tool. Hopefully you have more than one way to reach customers.


http://www.youtube.com/watch?v=nlV5_4L6WNs

Obviously, if FriendFace abused the information it collected, some of that $100 billion is going to the lawyers who are sure to seize on such a great opportunity to plunder Mark's riches. Since there are always plenty of lawyers, you can bet that once the IPO completes, Facebook (oops, FriendFace) will modify their privacy provisions. That will also make them a bit less attractive as a marketing vehicle.

-- Gordon

Loopy Byteloose
02-12-2012, 09:50 AM
Frankly, I have a stock summary that anticipates the new 'social networking' IPOs are likey to NOT do well.

But, Facebook will go public regardless - after all, it makes Zuckerwhatsit a very rich man. Buyer beware, this is not another leap forward as Google brought to the internet - it is closer to an endgame.

Advertisers love the face that Facebook users offer up so much information about themselves - thus it is getting 20% of the internet advertizing buys at this point. But the real question is whether this is sustainable and growable.

Heater.
02-12-2012, 10:17 AM
Facebook is already old hat.

Yes. I was discussing this issue with the director of the company I work for recently. He told how his teenage children and friends DO NOT USE FaceBook. They have already moved on to something else. When he asked them what that was they would not say.

What's all that about?

Well, young kids are not so dumb, they don't want all their information "out there". As an example those teenagers said "we have face book so that granny can be happy that we are OK. But for doing our own stuff we need a lower profile".

So there you go. Another bubble about to burst:)

ratronic
02-12-2012, 01:54 PM
Loopy Facebook has only my name (which I was suprised how many names like mine there are on Facebook!). That is it - no other info like hometown, school, and all that other jazz. Even my picture is the same as my avatar here.

Loopy Byteloose
02-12-2012, 03:09 PM
@Ratronic What's the purpose of that?

Personally, there are so many channels through which people can try to reach you these days that I have limited mine to the two or three that really serve me well.

The primary point here is whether Facebook is hyping its IPO so that the insiders can liquidate with a tidy profit or whether there is a real potential for the price to march off into the stars. With a difficult global economy, an aging of the world's wealth economies, and all the other factors - it seems that the advertising revenue for such has limitations. Facebook is already reported to lead the pack with 20% of the advertiser dollars on the internet, beyond Google at 15% share.

But, you can expect the IPO buzz to deny such realities as we move toward the actual event and maybe even beyond.

T Chap
02-12-2012, 03:10 PM
Once when I was experimenting with my own SEO, I started posting my website link to facebook, myspace, twitter, youtube. I then started using free sites like craigslist and backpage offering the product and/or service. Included on all the pages were the company name, tag words, etc associated with the produce and company. Immediately it was a night and day difference in google placement. The point being, who cares if someone runs across you on those sites, I never expected a sale from any one of those sites, but due to the fact that they are rated so highly with google, your link automatically gets high link associations and it will affect your placement in google. You must be listed on all of the main sites, never mind if you get any direct benefit from them, your site needs to have the association for search engine reason.

ElectricAye
02-12-2012, 03:47 PM
.... If you have a product that you want folks to know about, you need to "go where the people are." ....



...it will affect your placement in google..... your site needs to have the association for search engine reason.

Of course I see nothing wrong with having a Facebook page for your business as being "just another billboard" standing out there by the information highway, but what puzzles me most, for example, is how so many companies are showing ads on TV and then, rather than displaying their own website dot com, they display the address for their Facebook page, as though their Facebook page matters more than their own direct link to the public via the internet. By actively channeling chumps through Facebook, it seems to me that companies are handing over important private business information to a third party (Facebook) which can do with that information anything it well pleases.

I've heard people are finally getting a sense that their "friends" on social media really don't give that much of a darn about the minutiae of their lives, etc. and so the latest big challenge for Facebook, etc. is trying to "automate caring," something that turns out to be a very big technical challenge and something into which Facebook, etc. is pouring a lot of research money. Facebook, etc. are afraid that once people wake up to the fact nobody really cares about what music they're listening to or what diet plan they're on, then the general public will stop eagerly volunteering that information, which means less advertising dollars, which is the only single thing the Wall Street wizards really care about.

Quoting from this article: http://www.technologyreview.com/web/39321/
Facebook's impending problem is that even if the company enables future pacemakers to share our every heartbeat, the company cannot automate caring - the most important part of the feedback loop that has driven the social Web's ascent....No matter how cleverly our friends' social output is summarized and highlighted for us, there are only so many hours in the day for us to express that we care.



...He told how his teenage children and friends DO NOT USE FaceBook. They have already moved on to something else. When he asked them what that was they would not say.

What's all that about?....

I'm going to guess the kids have discovered this new thing called "email" or perhaps even "the internet", which is rumored to be a trillion-lane information highway that isn't a cattle chute owned by one or two companies - yet.

ratronic
02-12-2012, 03:49 PM
Privacy is what I meant by that Loopy, in other words I mainly use Facebook to spy on my friends and kids, if I want to talk to them I use a phone.

T Chap
02-12-2012, 04:08 PM
There is a mental lens that Facebook users 'put on' when they are in Facebook mode. Advertisers know this and direct users to Facebook so that the user has entered into a vortex of sorts when and if they actually visit the FB page being promoted on TV or radio or magazines etc. Most people that are not Facebook fans will simply look up the real website of the product and skip the psyop tool that advertisers are trying to use. Advertisers also know that bringing a product into the Facebook vortex ads a certain modern cool factor, or presumed 'ahead of the curve' factor. They have spent a lot of money exploring the benefits of pointing to Facebook and deemed it a positive. Facebook is very 'familiar' to tons of people... the colors of the site, the logo, the methods of navigating, etc, are all engrained into the user. So by the advertisers are using this 'tool' of familiarity to gain a deeper connection to the user. If the user goes to the site directly, there is some slight learning curve, it is unfamiliar new territory, with colors and fonts and graphics that may not capture the viewers attention. It is sort of like being introduced to someone by a mutual friend, you don't apply the same filters to the meeting process as if you had of just met the person cold on the street. The premise is, introduce the viewer to your product via a mutual friend.

ElectricAye
02-12-2012, 04:30 PM
... The premise is, introduce the viewer to your product via a mutual friend.

Ah, very interesting! Being a non-Facebook user, I was not aware of that lens you speak of, but I can see your point: businesses are trying to capitalize on the perceived intimacy of the situation. So I suppose another possible failure mode for Facebook might be that this lens gets more and more oily thanks to advertising. Could it be like the Thanksgiving dinner with friends that gets transformed into a Tupperware party? Will people keep coming to the family reunion if it starts to feel like an Amway convention?

Heater.
02-12-2012, 04:39 PM
Electric Aye,


I'm going to guess the kids have discovered this new thing called "email" ...

Possibly but I doubt it. But what about this. Youngsters whilst being very sociable among themselves have always had "closed groups", sub-cultures, in the extreme gangs. Since the dawn of time they have had a way of getting on with their own thing in some semblance of secrecy. Think about the way raves were/are organized in such a way that everyone who needs to know knows but the police and authorities do not know in time to do anything about it.

They are not stupid either. Perhaps they already have their own social network servers responding to some Android, iPhone apps in a slick and convenient manner. It need not be a huge global facebook size operation if your subculture is local.

As for me, I don't know how the world has time to dick with all that stuff, I have a hard time keeping up with all the interesting things people are doing on this forum alone:)

ElectricAye
02-12-2012, 04:53 PM
...Perhaps they already have their own social network servers responding to some Android, iPhone apps in a slick and convenient manner. ...

I'm sure you're right about that. I've heard lots of parents tell me that they don't mind if their kids are on Faceborg, etc. so long as they can watch what their kids are doing there, so of course the kids are setting up other channels that their parents are not monitoring and probably can not monitor. I tell my kids that, in the future, privacy will be like a commodity, and the more of it you have, the more it will be worth to you. I know a business recruiter who routinely gives talks to high school students and one of the first things she tells them is to get their lives off of the social media: nobody wants to hire somebody who has posted pictures of themselves at a wet T-shirt contest. And nobody wants to hire somebody who has friends who have posted pictures of themselves at a wet T-shirt contest.

User Name
02-12-2012, 11:32 PM
Like you, ElectricAye, I despise the co-opting of Facebook by commercial interests. Didn't like FB to start with. Now I despise it.

Tracking software is really stupid, anyway. My interests are so far removed from the norm that the results are comical. For example I use laboratory furnaces that employ molybdenum disilicide heating elements and thorium oxide refractories to fuse ceramic eutectics at thousands of degrees. So I get barraged by HVAC ads. It's maddening.

Dr_Acula
02-13-2012, 12:15 AM
Facebook hasn't worked out what my interests are yet. (Google has though, and now the ads are 'targeted').

@ElectricAye, this is how you handle your kids and facebook http://www.smh.com.au/technology/technology-news/father-shoots-daughters-laptop-after-facebook-chores-complaint-20120213-1t0c6.html

[somewhat ironic that I got that link from a friend on facebook]

ElectricAye
02-13-2012, 12:35 AM
...

@ElectricAye, this is how you handle your kids and facebook http://www.smh.com.au/technology/technology-news/father-shoots-daughters-laptop-after-facebook-chores-complaint-20120213-1t0c6.html


...

That's so funny. I pity the poor kid who dates his daughter.