Archive for the ‘Online communities’ Category.

Should anonymous comments be allowed in an online community?

me behind fingers
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Should people be allowed to leave anonymous comments in online communities and forums? It’s a question that has been debated many times and people have different perspectives on it. Some say that “No, if people don’t say who they are then its easy for discussions to get out of hand”, whereas others say “Yes, if you want people to be honest you need to allow them to be anonymous”.

The issue of anonymity when commenting in online communities is actually more complicated than some arguments would suggest. And the answer is both yes and no.

What do we mean by anonymity?

When talking about anonymous comments we need to consider two types of anonymity:

  1. If the commenter should be anonymous to other members of the community
  2. If the commenter should be anonymous to the site owner and community manager

These two aspects of anonymity are often confused. As a general principle of online community management, anybody wanting to add to the discussions and debates in the community should share at least a minimum of information with the site owner and community manager about who they are. This is not just so that they can capture the data, but because the social exchange of an online community works on the basis of openness, transparency and honesty.

This of course works both ways – in a successful online community neither party should be anonymous to each other. The brand, organisation or people behind an online community should be honest about who they are and why they are sponsoring or running the site. And people who want to comment on or add to the discussions on the site should be open and honest about who they are. At least privately to the people running the site. You will also find that asking for a minimum of information about people before they add their thoughts or comments will make them more likely to consider what they are saying. Even if other community members don’t know who they are, the site owner and community managers will and will be able to contact them.

So in this respect, no comments should be allowed from members who are anonymous to the online community manager or site owner.

Should people be allowed to be anonymous to other community members?

So, even if we say that users should not be allowed to add to the discussions in our online community without telling us who they are, should they be able to remain anonymous from other community members?

This question has always intrigued me as there is a whole spectrum of ways in which community members can identify themselves depending on the community and on what the individual member chooses to share. And they offer varying degrees of anonymity that could be offered to me as a user

  • I could have a generic username, ‘Anonymous’ and no further information about myself – this is perhaps the most anonymous I can be to any other user of the online community
  • I could choose a username that reveals nothing about me, ‘Grey2834′ – by allowing users to choose their own username there is an increased risk that they will share information that will allow us to identify them. Perhaps I use the same username on other communities and forums and this will let you understand more about who I might be.
  • I could choose a username and have other information on my profile, perhaps by city (London) and age range (30-39). The more information I share the greater the chance people will start to identify me.
  • I could use my first name (Matt) and some other information – the more I share the less anonymous I become
  • I could share my full name, date of birth, address, email address and mobile telephone number

Different online communities will ask for different levels of information and different users will share different amounts. The only way to allow truly anonymous comments would be to allow users to use a generic username (such as ‘Anonymous’) and share no other information about themselves. Even then they will never be truely anonymous as the subjects they write about, the examples they give or the things they say will share things about who they are and what they do.

As a general principle, the more users share about themselves, the more others in the community will learn about them and identify with them. The more the community will grow. This does not, of course, mean that I need to share with you my name, date of birth and address. You could also identify with me based on my contributions and the things I say without needing to know who I am at all.

However, people do interact better with others if they know something about them. If they have a name to call them, for example, whether or not that’s their real name or a username. If they know where they are or some other things that let us understand more about them and the things they say. For this reason, where possible, community members should be encouraged to share some information about themselves.

Should anonymous comments be allowed in an online community?

So should anonymous comments be allowed in an online community? The simple answer is ‘no’ because the social contract of any successful online community is honesty and at the very least community members should not be anonymous to the community manger or site owner. But does this mean that community members cannot be anonymous to other community members? This question is more complicated. Online communities work best if people share some things about themselves with their fellow community members and it is very difficult to ensure complete anonymity. As part of that same social contract, community members like to know something about the people they are talking to online, even if it is just a username of some description.

Of course, there will always be exceptions to this rule, where the need to encourage contributions and discussions will supersede the benefit of building a community based on members knowing something about each other. Dissidents in China or Iran sharing information and experiences would be one such example. Discussing sexual health issues with teenagers might be another. In these and other cases, anonymous comments are perhaps the only way to encourage honest and open discussions. But in the majority of cases such protection is not needed and completely anonymous comments should not be allowed.

FreshNetworks Blog: Top five posts in February

Five/cinq Dollars
Image by Xavier Lozano via Flickr

At FreshNetworks, we aim to bring you the best posts in social media, online communities and customer engagement online. In case you missed them, find below our top five posts in February.

1.The Economist on Social Networking

At the end of January, the Economist published a special report on on social networking.Their special report on A World of Connections, provided an excellent overview of the current state of social media for those still trying to get to grips with it. You can download a free pdf of the report here. Or check out our summary of key highlights in this post.

2. Vodafone, Twitter and the challenges of managing your brand in social medial

An interesting afternoon at Vodafone in the UK saw a tweet on their official @VodafoneUK account that was clearly not the kind of message the brand intended to share with its customers. You can read about what was actually said elsewhere. But, in addition to some rather questionable grammar, the message was offensive and not appropriate for a brand’s Twitter stream at all. It was clearly the work of either a hack, a case of very bad judgement, a disgruntled employee or an inappropriate sharing of passwords.

Putting aside any short-term issues and negative publicity, there are a couple of things we can learn from what happened to Vodafone. First in how you should manage your use of social media as a brand, and second in how you should respond when things go very wrong.

3. Facebook’s redesign shows how important search is for social networks

In February, Facebook rolled-out a redesigned homepage and navigation to its users. There four main areas where the site had changed: improved use of space n the main panel, made messaging easier, put notifications together in one place, and moved the search box. It is the last of these improvements that is, perhaps, the most significant. Facebook did more than just move the search box, they increased its importance on the site and showed the importance of search for Facebook, and indeed all social networks and online communities.

Facebook is huge, but to many of us feels very small. We mainly access content through feeds, messages and notifications. Training us as users to make search an integral part of our Facebook experience will make it a much bigger and more useful tool for us all.

4. The Matthew Effect – linking and how things become viral in social media

The Matthew Effect dates from the 1960s. It is the theory, first expressed by sociologist Robert K. Merton, that those who possess power and economic or social capital can leverage those resources to gain more power or capital. Put simply: the rich get richer and the poor get poorer. In this post we discuss a great presentation and video from Torsten Henning Hensel that explores the power of linking online and how the Matthew Effect can help us to understand how things become viral and spread online and in social media.

5. Russia: the fourth largest social networking market in Europe

In a post from almost a year ago we look at data showing that Russia was the fourth largest market in Europe for social networking behind the UK, Germany and France.

Social media in not-for-profits and membership organisations: Notes from the FreshNetworks breakfast briefing

FreshNetworks Breakfast briefingSo the first FreshNetworks breakfast briefing has just finished and we had some great insights into how not for profit organisations (NFP’s) can use social media for strengthening their membership offering.

Breast Cancer Care Case Study

First up to speak was Bertie Bosredon, Assistant Director of Services (Information & Multimedia) at Breast Cancer Care. Bertie has been busy changing Breast Cancer Care’s social media strategy to utilise other social media platforms and contribute to overall integrated structure. More importantly changing the way they use social media to start listening and conversing with people online.

There were some key messages that resonated from his presentation, these were:

1. Have an integrated approach

Breast Cancer Care realise that a lot of conversations that were happening online were not necessarily happening in their space but through working with key influencers on other platforms supplying them with packaged information you can increase your presence online and collaborate with a lot more people.

Breast Cancer Care at FreshNetworks2. Involve your members in planning

Bertie has been getting members involved in the planning of the current and future use of social media asking them what they would look for when engaging with Breast Cancer Care and how they could work this into a strategy that would best fit their organisational aims. Although a simple concept many companies forget that members and users usually know more about your brand then you do and can deliver some great insights.

3. Aligning all channels of communication

Breast Cancer Care have made sure that the social media strategy that they have been using is aligned with their offline print material so that it doesn’t matter where members go for the information. This means that they can use the channel that they prefer and the message will be consistent.

A popular point from Bertie: it doesn’t matter about the traffic to your site; care about how many people interact with your content even on other sites.

Social media marketing for not for profits

The next speaker was our very own Charlie Osmond from FreshNetworks. Charlie was speaking about how social media can be used for marketing and with specific reference to NFP organisations. Engaging people online is not about going for that quick win viral campaign but to successfully engage people online you need sustainable engagement.

Charlie Osmond at FreshNetworksSome key points to take away from Charlie’s presentations are:

1. The importance of the community manager

Engaging people online especially for sustainability requires a good community manager. They need to be able to reach out to people and facilitate discussions on a multitude of different platforms.

2. Know your tools but don’t let them drive your strategy

In order to be able to know what channels are available to you, you have to have a grasp of what’s in the vast social media environment. To create a successful strategy you should be looking at the aims of the business and the needs of the people that you want to engage.

3. To drive word of mouth for a certain cause take the ‘believe, belong and bear witness approach’

A great way to get people involved in a cause is to find people that believe in it, help them become involved in it and then help them bear witness to what they believe in this will help spread the message of the organisation through yours, and their own networks.

Steve Bridger on social media in charities

Finally but by no means least was Steve Bridger. Steve is a social media consultant and has some great (and extensive) history in community management for various charities. One of the more prevalent points of Steve’s presentation was the importance of putting people at the heart of your social media strategy

Some great points from Steve:

1. Help your advocates to amplify their voice

A lot of member organisations were using their current strategy to try and control conversations and go against ‘the flow’ of what people were online to do. They had a clear goal that they wanted to achieve and member organisations should be “enabling and empowering” these people to help deliver your message.

Steve Bridger at FreshNetworks2. It’s about relationships not transactions

Member organisations and more specifically charities are currently set-up for transactions and are very ‘me’ focussed, there is greater value for charities if they position themselves for conversations and engagement.

3. You have to be in it to win it

A lot of companies are hoping for a win in social media what ever that may be but they don’t have a social media policy or ban social media access completely. A restrictive approach rather than a guided one causes bottlenecks at many organisations and restricts valuable internal knowledge.

It was great to see the focus on relationships and emphasis on the value rather then how much money can be made. There were lots of interesting perspectives and too many to write all in this blog post. A big thank you to all the people that attended there were some great discussions and insight from lots of different organisations and another big thank you to the speakers involved.

Social media strategy for small businesses

Jelly babies
Image by uncle_fungus via Flickr

This week we have been looking at social media for small businesses. Ways in which they can use the social media tools that exist to build their brand, engage their customers and learn about their brand, market and competitors. It is as important for small businesses as it is for large brands to build a social media strategy. And there are many different ways that you can start to use social media to get these benefits.

And social media strategy should be based on what your brand is looking to achieve. Only when you have established this should you start to experiment with different social media tools and will you be able to measure the success of what you are doing. This need not be an expensive and elaborate implementation, some great tools exist for small businesses to use to help achieve their aims with social media and this week we looked at four of them:

  1. Social media monitoring and buzz tracking: Any social media strategy should start with a thorough process of social media monitoring. Listening to what is being said about your brand, competitors, market and customers. There are a range of free buzz tracking tools available and setting up some simple monitoring tools is something that any small business should do.
  2. Twitter and targeting customers: Twitter is a very flexible tool. Some people think that it is most useful when you are following and being followed by very large numbers of people. But this is not always true and it can be particularly powerful with small groups. You can build a small community of people online who are interested in the same issues and use this to engage customers or potential customers. Better to target and engage a smaller group of people than to try to appeal to everybody.
  3. Blogging and brand building: Blogging is a great tool that any and every brand should consider. For many small businesses, blogs are a tool that can help them punch above their weight. The content, themes and information that they share can lead them to be thought of as much larger or much more established than they really are. Blogging provides an easy way for organisations to share their thoughts and their content. And people will respect you for this.
  4. Foursquare and customer engagement: Foursquare is just one of a number of mobile-enabled and geo-location social media tools that are being developed. They allow people to connect and share information based on where they are. Foursquare in particular offers great and exciting opportunities to brands. You can find out who is visiting your shop, store, cafe or building and then work out ways to engage them and turn them into loyal customers

These are just four ways in which small businesses can use social media tools as part of a social media strategy. They are all free tools to start using and the posts linked to above contain more details about each of them. Using and experimenting with social media tools need not cost money. The important stages are in the thinking and planning about what you are looking to achieve and so which tools are most appropriate, and then in how you manage and grow your activity in any tool you choice.

Small businesses can benefit hugely from a social media strategy. Plan what you are looking to achieve and how you will measure success, and then experiment!

You can read all our posts on social media for small businesses here

Social media for small businesses 4: Using Foursquare to identify and engage customers

foursquare blackboards @ Southside Coffee in B...
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Imagine if you could know who visits your cafe or shop on a regular basis. You will, of course, recognise many of these people. The man with the glasses who comes in most mornings for a flat white (that’s me by the way). The two women who always have lunch on a Thursday. Or the family who bring their children on a Saturday. You will recognise some regulars and you will no doubt speak to them and start to get to know them. Social media can help you do this more, and can, perhaps importantly, help you target people who visit sometimes but not yet regularly. This is where geolocation-based social media tools such as Foursquare come into play.

Foursquare is social media tool that lets users say where they are by ‘checking in’ at locations. You earn points for doing this and can see who else has checked-in here. If the location you are at is not yet on Foursquare then you can add details about it and plot it on a map. You earn points and get badges (status) the more times you check in and the person who visits somewhere more regularly becomes its Mayor.

I have been using Foursquare recently and, for example, might check in to the Fleet River Bakery just round the corner from my office when I get breakfast in the morning. Or I might check into Selfridges on Oxford Street in London when I’m shopping at the weekend. I am not yet Mayor of anywhere, but could become the Mayor of any of these places if I visit it most regularly. This is a small but growing tool, and it being joined by more and more geolocation-based social media tools that can be a real benefit to businesses.

Let’s take the Fleet River Bakery as an example. As a small bakery and cafe in central London they face a lot of competition (there are probably about ten similar venues nearby) but they are very popular with queues round the corner at lunchtime. Some people will be regulars and other will visit from time to time. On Foursquare, Fleet River has a profile, whether they set it up or not, and people who go there can check in – putting their details on this profile. For the guys at Fleet River this could be a powerful data resource. If they can attract people to visit them and check in on Foursquare then they can start to see who is visiting them, how often and when. But it can also be a powerful peer-to-peer marketing tool. On Foursquare your friends are told where you are. So when somebody checks in at the cafe their friends will learn where they are and so learn about Fleet River, where they are and what they do. They will also know that their friends go there and, as we know, peer-to-peer recommendation are much more important than anything a brand can say.

Using new and growing tools like Foursquare can be really powerful for small businesses. And if you work with these tools you will get even more out of them. Perhaps on the boards outside Fleet River they should say who the Mayor currently is, and perhaps even offer him or her a free coffee when they next come in. Or maybe offer exclusive discount, or a free cookie, to anybody on Foursquare who checks in.

There is a lot you can do to help people market your small business for you. Much of it free and just making use of the social media tools that are out there.

You can read all our posts on social media for small businesses here

You teach what you accept: As true in parenting as it is in online community management

fairview blackboard
Image by Audra B via Flickr

As Mumsnet celebrates it’s 10th anniversary an article in yesterday’s Sunday Times titled: The bullies hiding behind Mumsnet’s skirts discussed how some members of the Mumsnet community have become “spiteful and cliquey” along with obscene language that now “peppers the website”.

As any parent knows (I certainly do to my cost) that if a parent allows one perhaps questionable aspect of their child’s behaviour to be acceptable that particular behaviour is soon learnt by that child’s sibling(s). This could not be truer when translated to online communities.

An established support community whether run as a not-for-profit or as in Mumsnet case on a commercial basis play a vital role in bringing together isolated people seeking answers to questions. With the wisdom of crowds phenomenon, communities help individuals with the most complex problems and in the process create a valuable asset for the organisation running the community.

Online communities’ need experienced community management from the start if their community is to grow into a vibrant, healthy and nurturing environment. By following a pre-agreed launch and community growth strategy the tone and etiquette of the resulting community activity also reflects the overall culture of the organisation hosting it.

This isn’t just about moderation. In fact moderation is rarely necessary where an effective community manager runs the community. They can recognise the patterns of behavior indicating potential problems in the future. These patterns are largely predictable in the path they take so that path can be shifted or influenced.

In the absence of proactive online community management, two less desirable outcomes are most likely:

  1. No one will come and because of that no one else wants to come.
  2. The community starts well but then is taken over by a few members selfishly for their own ends. Which if left unchecked can be extremely damaging for the organisation behind the community.

Perhaps some rocky teenage years lie ahead for Mumsnet?

Facebook’s redesign shows how important search is for social networks

Minifig Characters #5: Sherlock Holmes and Dr....
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Many people will have woken up this morning to another change to the Facebook user interface. You can read more about the redesign over on Mashable, but in summary the social network has:

  • Improved its use of the main panel across the site, but especially for displaying photos. These are now displayed larger and more prominently
  • Made messaging easier – taking it from being on a separate page to being a drop-down on any page. Giving the user immediate and convenient access to their inbox
  • Put all notifications in one place in the top navigation – messages, updates and alerts now all show together in the top navigation
  • Made the search box much more prominent

This last change is, perhaps, the most significant. It is much more than just moving and making the search box larger. It shows the importance of search to Facebook, and indeed to all social networks.

Why search is important in social networks

Social networks and online communities generate a lot of content. In online communities, people are there because they share similar interests, experiences or concerns. They are connected by content and so this content tends to be focused on a set of topics, subjects or questions of interest. In social networks, people are there because they are connected to each other because they know each other, have worked at or been to the same place, live near each other or have some other connection other than just the content. In these places, content will be about a range of disparate subjects, discussed by different people at different times and for different reasons.

The approach to findability in these two environments differs. In online communities search is important, but of equal importance is the way you structure the site, and the way you use taxonomies to arrange and sort content. In an online community for people interested in organic food, for example, you might organise your content so that all your recipes are together, and so that you can easily find all content about sweet potatoes. In a social network it is less easy to organise and then find all the content in this way. So it is less about structure and taxonomies and more about very good search.

Facebook is a great example of a social network where good search would make a huge difference to how much use it can make of, and how much value it can get from, all the content added to it every day. The company’s own statistics claim that 3.5 billion pieces of content are added to the social network every day. If I want to find all the content about, for example, one topic or issue it is currently very difficult for me to do so. Search should be the answer to this. If I search for ‘Holborn’, I want to find events in that area of London, public conversations about it, photos with that place in the description, pages talking abotu Holborn and so forth. Maximising the benefit of all this content will make a huge difference in the way people use the site and the way Facebook can use this content.

Facebook’s more prominent search box is much more than just a design change. It reflects the absolute importance of search in social networks. They are different to online communities where structure and taxonomies can help people to find content across the site. Facebook is huge, but to many of us feels very small. We mainly access content through feeds, messages and notifications. Training us as users to make search an integral part of our Facebook experience will make it a much bigger and more useful tool for us all.

Breakfast Briefing: Social media for not-for-profits and member organisations

FreshNetworks_join_me

Both not-for-profit and membership organisations rely on their members.  There’s just no getting away from that fact. And in order to increase their membership base both nfp and membership organisations need to interact with the public to gain support.

Several charities have already turned to social media as a way of engaging people. A  recent article from Third Sector reported that charities are using blogs, forums and other social media tools to highlight their key aims and encourage word-of-mouth . Large charities like Cancer Research, Amnesty International and ActionAid are all using social media, in particular, blogging, to increase their online presence. But are they using social media to actively strengthen their membership base or is it just another communication tool?

And what about membership organisations? Membership organisations are traditionally viewed as a source of specialist information and advice. They also provide an arena for networking with people who have a similar interest, profession or background.  Today, however,  many of these services are offered elsewhere for free. Search engines give people the ability to look up detailed information on the web.  Social networking tools like Facebook, Twitter and LinkedIn, allow people to reach out and communicate with people “like them”, giving them the opportunity to seek advice and to interact with each other without the need of a third party.

So as more and more people use social media tools to interact and connect with like-minded people, membership organisations need to develop a social media strategy to harness and utilise these connections.  Membership organisations need to join the online conversation. They need to use social media to engage with the people who would be interested in joining their group – and often these people are already talking to eachother, so this should be easy to do.

With this in mind, we’re running a free breakfast seminar for nfp and membership organisations on how to strengthen membership strategy with social media.  The event starts at 8.30am on Thursday 18th February and will include useful tips, advice and case studies from the likes of  Bertie Bosredon, Assistant Director of Services at Breast Cancer Care, and Steve Bridger, Social Media Consultant for nfp and membership organisations.

If you’re an nfp or membership organisation and you want to find out how you can strengthen your membership strategy with social media you can register below for the event.

Strengthen your membership strategy with social media

  • Location: FreshNetworks, 229 High Holborn, WC1V 7DA,  London (map)
  • Date and time: Thursday February 18, 2010, 08:30-10:30

FreshNetworks Blog: Top five posts in January

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Image by Nomad Photography via Flickr

We’ve had a new look to the blog at FreshNetworks this month, but our aim is still the same. To bring you the best posts in social media, online communities and customer engagement online. In case you missed them, find below our top five posts in January.

1. Why the retweet is a powerful engagement tool

The retweet on Twitter, and Facebook’s new ‘via’ feature are very powerful tools in these social networks. In any online community or social network, some people are more active than others. In fact, in a natural online community we would expect that out of every 100 users, only one will originate new content. The retweet provides a way for these other users to express their opinion. Say that they agree with something that others have said or just promote content.

Social media is about more than just generating new content, people play many different roles and the retweet is a way to let people do this.

2. Social media as a crisis management tool

When crisis happens, you will typically see a lot of people discussing, debating, and complaining about your brand online. Many of these discussions will be factually inaccurate, and many will be from customers who have had bad experiences. These are the types of discussions that should be responded to, and should be responded to in the right manner.

In this post we looked at a how brands can use social media when a crisis hits, but perhaps more importantly why they should be engaging people in social media before the crisis.

3. The Economist on Social Networking

At the end of January, the Economist published a special report on on social networking.Their special report on A World of Connections, provided an excellent overview of the current state of social media for those still trying to get to grips with it. You can download a free pdf of the report here. Or check out our summary of key highlights in this post.

4. Social Media Case study: Vitamin Water’s newest flavour created by Facebook fans

Vitamin Water’s latest flavour, launching in March this year, was developed and named by the brand’s Facebook fans. The black cherry and lime flavoured drink will be called ‘Connect’ and one Facebook fan, Sarah from Illinois, won $5,000 for her role in developing this new product. In this post we look at what Vitamin Water did and how they used social media to help to test and develop a new flavour.

5. Essential reading for online community managers

There are a whole range of great books out there on how social media is used and the impact this is having on society (anything by Gladwell or Shirky would be a great starting point). In this short post, we look specifically at things that help managing and growing communities online. There are many great books, articles and blogs out there and we’d love you to share your favourites in the comments below the post. But this is a good starting point and we would consider them essential reading for online community managers.

The Economist on Social Networking

The Economist on social networking - world of connections

The Economist on social networking - world of connections

What joy. This week,  The Economist, every Capitalist’s favourite magazine, has published a special report on on social networking.

A World of Connections, provides an excellent overview of the current state of social media for those still trying to get to grips with it. You can download a free pdf of the report here. Or check out my summary of key highlights below.

Introduction: A world of connections

  1. “Online social networks are changing the way people communicate, work and play”
  2. Facebook users post over 55m updates a day. 70% of users live outside the US.
  3. Social networks are superb tools for mass communication [NB the report is a bit light on their strategic use as a driver of 1-to-1 customer-to-company communication]
  4. “the most avid online networkers are in Australia, followed by those in Britain and Italy”
  5. Social Networks have “become important vehicles for news and channels of influence”. Indeed, they “played a starring role in the online campaign strategy that helped sweep Barack Obama”
  6. To sceptics all the “talk of twittering, yammering and chattering smacks of another internet bubble in the making“. Social networks still “need to prove to the world that they are here to stay”

“This special report … will argue that social networks are more robust than their critics think … and that social-networking technologies are creating considerable benefits for the businesses that embrace them, whatever their size. Lastly, it will contend that this is just the beginning of an exciting new era of global interconnectedness that will spread ideas and innovations around the world faster than ever before.”

Facebook’s growth: Why social networks have grown so fast—and how Facebook has become so dominant

  1. How the network-effect can drive lightning fast growth on a relatively modest marketing budget.
  2. An openness to external developers helped create thousands of apps. These apps provide part of the service and additional reasons to spend time on Facebook.
  3. Social networks have been beneficiaries of a fall in the cost of data storage and have also been “able to use free, open-source software to build systems that scale quickly and easily”
  4. In a feat of technical wizardry, Facebook’s engineers “quintupled the performance of an open-source memory system called memcached, which allows frequently used data to be retrieved faster than if stored in a database.
  5. Facebook Connect is one of the firm’s most important innovations as it allows members to take their social graph wherever they go on the web.

Twitter’s transmitters: The magic of 140 characters

  1. A key difference between Facebook and Twitter comes from the nature of relationships that underlie them. “On Facebook, users can communicate directly only if one of them has agreed to be a “friend” of the other. On Twitter, people can sign up to follow any public tweets they like”
  2. The most prolific 10% of Tweeters account for 90% of all tweets
  3. Another big difference between Twitter and Facebook is in the kind of content that gets sent over their networks. Facebook allows people to exchange videos, photos and other material, whereas Twitter is part-blog, part e-mail [I disagree with this. On the surface Twitter looks like a text tool, but many tweets link to videos, photos or other media].

Social Networks making money: Profiting from friendship

  1. When it comes to turning users into profits, social networks face two issues. Firstly, users are taking part to spend time with friends, so they do not pay attention to ads. Secondly, brands are nervous about appearing alongside unregulated comments and other content.
  2. Click-through rates are low, but the amount spent on adverts is increasing despite the recession.
  3. In part this may be because Marketers recognise the value that personal recommendations can have on buying behaviour. And social networks provide an opportunity for viral marketing.
  4. During 2009, Facebook turned cash-flow positive on revenues thought to be in the region of $500m.
  5. Games, virtual gifts, premium services and search rights are becoming an important part of some social networks’ revenue streams

Social Media for Small Business: A peach of an opportunity

  1. They cover the well known Kogi BBQ social media success story and mention that according to Razorfish 44% of people follow brands on Twitter  for deals [NB the methodology used in this research was rightly brought into question by Susan Braton in a recent DishyMix podcast]
  2. Social networks can provide a great launchpad for startups thanks to their reach.
  3. This article then randomly veers off into social gaming. A subject that deserves it’s own dedicated piece. But you can’t have everything.

Internal social networks: Yammering away at the office

  1. Social networks are being used to break down internal barriers in the corporate world.
  2. Informal conversations they allow can be a catalyst for creativity and new ideas.
  3. “The networks are also a great way to capture knowledge and identify experts on different subjects within an organisation”

Recruitment in a social world: Social Contracts: the smart way to hire workers

  1. Social networks, such as Linkedin and Xing help firms cut search costs
  2. Business social networks help improve the efficiency of the labour market
  3. They have also made recruitment more transparent as recruiters go onto social networks to check up on candidates ahead of making an hire

As an aside, if you’re interested in social media for recruitment here are a few relevant posts from our sister company, FreshMinds Talent:

How to use Web2.0 for recruitment
Social Media and the forefront of the job market
How to imporve your Linkedin profile

Privacy in social media: Privacy 2.0

  1. Privacy could be the Achilles heel of social networks. Users could decide to start reducing what they are prepared to share with the world online.
  2. Social networks have been developing privacy controls that give users the ability to edit what can and cannot be seen. However these are often hidden away within sites and social networks are making blatant attempts to encourage more sharing of data not less.

The Future of Social Media Towards a socialised state

  1. Social connectivity could become ubiquitous
  2. Mobile adoption will fuel future growth in social networking
  3. Facebook says that mobile users of the site are almost 50% more active than regular users
  4. Geo-networking apps may be the next big thing [unsurprisingly, the Economist can't resist a fleeting mention of Foursquare, the social network tipped for big things in 2010]

Conclusion

It’s great to see social media and social networking getting reported in such depth by mainstream media. This Economist report is not exactly cutting edge when it comes to social media insight or analysis. However it does provide a great base level for the 99% of the business world who do not spend their days glued to Tweetdeck.

Even if the above is not new to you, I recommend you read the report purely for a lesson in good business writing. As ever, The Economist delivers on elegant prose that neatly and efficiently flows from point to point.

Was there anything in the report that leapt out at you?