From the category archives:

IPO

On the third day of Facebook’s public trading, Lou Kerner spoke on Bloomberg TV, discussing the outlook for the company’s stock.

{ 0 comments }

Lou Kerner said Facebook’s IPO represents a divide between old guard and the new tech community. “The world’s never seen an IPO with as much global demand outside of Wall Street as there exists for Facebook,” Kerner said. “It can have a highly successful offering even if traditional, institutional investors are tepid.”

Read the full article here: http://nyp.st/IEQUkt

{ 0 comments }

Lou Kerner on Bloomberg TV

{ 0 comments }

This Week In Social Media

by loukerner on April 8, 2011

Click Here For PDF

{ 0 comments }

Guest Post by Liza Hausman Vice President of Marketing, Gigya

In 1999 “Permission Marketing” was the buzzword of the year when Seth Godin wrote a book about “turning strangers into friends and friends into customers.” As Godin told marketers, “By talking only to volunteers, Permission Marketing guarantees that consumers pay more attention to the marketing message. It serves both customers and marketers in a symbiotic exchange.”

 

Today, technologies like Facebook Connect and Twitter for Websites are helping to create a new concept of permission marketing. Using these technologies on their own sites, businesses are able to establish a permission-based relationship with their users and customers that complements their efforts on Facebook, Twitter or other social sites.

 

The Huffington Post is the poster child for this new social-data-based permission marketing approach. Readers raise their hands by using their existing Facebook, Twitter or other social identity to register, giving HuffPo access to data with which the site can socialize the user experience. Readers can see what their friends are reading and sharing on their site, giving them a powerful social filter for relevant content. It also means The Huffington Post can sell advertising on their own site based on everything they know about the user from a social perspective.

 

 

 

 

The Huffington Post’s application of Facebook Connect and similar technologies to create a social news experience has been the key driver of its phenomenal traffic growth over the past year plus. Social advertising is also a key source of its revenue growth.

 

But it is the layers on top of the Social Sign-on foundation that are the most promising for the future of advertising. In addition to basic demographic targeting, sites could offer advertising based on interest data, targeting fans of True Blood or Android.  Sites could also sell against social influence and activity — factors such as the number of friends, their propensity to share and their history of driving new visitors to the site, or even the number of items “Liked” as an indicator of engagement.  Reward programs driven by game mechanics are a key part of the nurturing process in this new model, where a loyal, engaged and most importantly non-anonymous audience is the new currency of marketing.

 

Challenges do remain, but a permission-based approach will be a competitive imperative, and those that are able to embrace and experiment with its possibilities will be able to more effectively increase customer value, command higher CPMs and ensure their social efforts deliver real ROI.

 

{ 0 comments }

Guest Post by Venessa Miemis, The Future of Facebook Project, excerpts from full blog post at EmergentByDesign.com

 

 

 

 

 

Credits as Currency

Facebook Credits are a virtual currency used within Facebook for the purchase of virtual goods related to applications managed on the Facebook platform. They’re like tokens you’d use to play games at Chuck E. Cheese’s — great for casual entertainment, but not particularly threatening to the real world economy. Yet.

 

“Increasingly, as we move later into the decade, physical currency will be harder to differentiate from virtual currencies like Facebook Credits,” said Brett King, author of Bank 2.0. “We’ll start to see a new economy emerging through social media where virtual currencies will be a very real part of the way people trade and sell information, collaborate on ideas and value various products and services.”

 

“We may see a kind of gamification of the real world take place through Facebook Credits, where a variety of outside vendors, businesses, and service providers can give us Facebook Credits, enable us to pay with Facebook Credits, and reward us with Facebook Credits for taking actions that they want us to take,” explained Nova Spivack, a technology entrepreneur and founder of Lucid Ventures.

Identity as Currency

Every time you upload a photo, make a comment, add a friend, click a link, or make a purchase, that data is being harvested to create a map of you.  By analyzing slices of this data, a wealth of information can be extracted and predicted about you. As a related example, Google vice-president Marissa Meyer claimed at this year’s SXSW festival, credit card companies can look at spending habits and predict with 98% accuracy, two years in advance, when a couple is going to divorce.  “[Identity] will become the battleground within which this entire learning will take place, because today all the artifacts of a human being belong to physical and logical governments, and not to social networks. But the ability to move any form of asset between the virtual world and the physical world needs a commonality of understanding of identity,” said JP Rangaswami, Chief Scientist for salesforce.com.

 

Reputation as Currency

Just as a positive score in your eBay account matters if you plan to continue doing business there, we’re on the verge of having robust social scoring metrics that will become increasingly important for businesses and individuals to consider.

 

When the opinions about a brand can be displayed more robustly, we’ll know not only that you “like” a brand, but why. This gives information on both sides — the reputation of the brand, and the values of the individual. As Brett King pointed out, “Social metrics, and the use of platforms like Facebook will have very real feedback in respect to the valuation of a brand economically, and obviously that will have an effect directly on revenues that are possible for providers in that space. So unless you’re playing in the social brand space, unless you’re engaged in the conversation, your social metrics are going to be affected in a negative way, and that will have an effect on revenue, profitability, and the value of your brand.”

 

Conclusion

As technology writer Kevin Kelly said, “What we know from our very short history of living online is that community precedes commerce; there’s no commerce without community. What Facebook is doing is sort of blowing up the community to be 500 million or even a billion very soon. When we have a community of a billion, it means that the potential for commerce is enormous, is immense, and we’ve never seen that before.”

 

Facebook will continue to grow and face new challenges as it threatens the control that traditional institutional structures have had over currency and personal identity. The implications of one entity owning this amount of information is beyond the scope of this article, but it certainly deserves a critical assessment. That huge privacy breach and wake up call hasn’t happened yet, so it’s not too late to ask what’s at stake when your data is contained in someone else’s silo.

 

{ 0 comments }

THIS WEEK IN PRIVATE SHARES TRADING

April 8, 2011

Share Facebook Value Stays Steady at $77.8B   The market for trading private shares is still in its infancy, and while there are hundreds of private companies with shares available for trading, Facebook continues to dominate trading actively, with Twitter, Groupon, Linkedin, Zynga & Yelp also getting investor attention, but with limited trading activity to [...]

Read the full article →

THIS WEEK IN FACEBOOK

April 8, 2011

Share Facebook Dominates Social Networking Landscape, Surpasses 250mm Mobile Users Facebook’s dominance of social networking is on full display in the below chart recently released by Pingdom which shows every social network with over 1 MM daily visitors.   We expect Facebook’s membership to continue to grow, particularly in the less saturated demographics (55+) and [...]

Read the full article →

General Questions & Considerations of a Secondary Market Transaction

April 8, 2011

Share Guest Post by Mitchell C. Littman, Esq.     So, what is a Secondary Market Transaction? A Secondary Market Transaction is a negotiated private sale of restricted securities of an Issuer whose securities are not publicly traded. Some transactions are effected directly from Seller to Buyer and in some instances one or both parties [...]

Read the full article →

THIS WEEK IN TWITTER

April 8, 2011

Share Jack Dorsey Returns to Twitter, Ev Williams Focusing On His Next Big Thing             Six months after turning over the Twitter CEO reigns to Dick Costolo, Ev Williams is becoming a part-time executive at the company that he co-founded five years ago.   Jack Dorsey, who co-founded Twitter with [...]

Read the full article →
 
 
 
© 2010 SecondShares