Mele’s Musings

Why Facebook Pwns Social (And You, And the Future of Advertising)

I know, I know. There is more to social media than Facebook. I get it. But really, what is bigger than Facebook? What is more popular than Facebook?

I am growing tired of the commentary that “there is more to social than Facebook.” True. But that’s like saying there is more to search engines than Google. Yes, there are other search engines. But you cannot ignore Google, or pretend it’s not the biggest player in the search space. To have a fully rounded search program, you must consider the other search engines. But it is absolutely paramount that you get Google right.

And it’s the same with Facebook. It can sound smart to say that there is more to social than Facebook, but you better not move away from it until you get Facebook right.

A few weeks ago, we had a confab with Facebook, and I was very impressed with their view of themselves and their focus. What Facebook gets is that they are more than a popular social site. They are becoming the nexus of social conversation - the link or glue that connects everyone to everyone in some way.

That is powerful. And Facebook is SMART to understand they are more than a website.

The universal like button, which seems relatively innocuous, and highly convenient, is a master stroke. A master stroke because Facebook understands that their value is not in the site they created, but in the connections they help to create and the data that lies beneath it. And it makes Facebook all that more central to social connections.

This matters for media and advertising great deal. The future of advertising is based in part on two things: access to customers, and accurate data to target them. It has always been this way, to be true, but now, rather than the estimates of audiences and audience targeting that have so long ruled the media world (GRPs and TRPs which are best guesses at best), we have the ability to actually know who and when we are targeting customers. In addition, with media fragmentation at an all time high, one system is forming that can connect advertisers to a huge number of consumers at once.  In fact, it’s become the largest audience of users ever assembled.  And that changes things. With the universal like button, Facebook has access to an amazing amount of data to go along with their tremendous reach.

Let’s not kid ourselves about how huge this is. While a lot of companies have access to data, the depth of information that users willingly expose about themselves online in social networks is both embarrassing and profound. I bet Facebook knows more about you than your parents. Or your partner.

This takes targeting one HUGE step beyond standard behavioral targeting, which has always seemed to me to be a bit too presumptive about users and their wants and needs. Presumptive because it is based on actions only. Which doesn’t give the whole picture.

I have blogged about this before, but the perfect example of why targeting just based on actions is limited is found in Amazon recommendations. I bought a gift for a family member a year ago, and I STILL get recommendations based on that purchase, even though it had nothing to do with me or my interests. Amazon, however, assumes it knows enough about me based only on actions.

But what Facebook has now is information on not only what I do, but what I actually LIKE, what I say, who my friends are, etc. That is fabulously powerful. It is game changing. And if they can figure out how to really harness it and make it usable for advertisers, they will really be able to shape the future of advertising.

Imagine advertising tailored to the things you actually care about, to the things you actually like. It might must make you like advertising. Maybe.

You don’t have to believe me. Just read this article from Ad Age and you’ll get the picture.

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