Is microsoft about to revive the rumours and constant wondering about Facebook buyouts?  After every billionaire tycoon and his dog were linked with buying the social media phenomenon it has all been quiet for a while.  Now apparently it has come out that Microsoft has put the feelers out about a purchase of the social network.  Full article from search engine watch below:

About Face(book): Microsoft Feels Out Social Network Acquisition

Though Bill Gates was out there telling people Microsoft is not interested in making non-Yahoo acquisitions right now (at least in the search/social world), word comes that Microsoft bankers have sent “feelers” to Facebook about a full acquisition.

Here’s why this is a solid move:

1. Microsoft already owns 1.6% stake in Facebook, worth $240 million
2. Microsoft formed a data portability partnership with Facebook and 4 other networks
3. At least two Google execs have jumped ship to Facebook in recent months

While Facebook has yet to “overtake” MySpace in the social media market, it is a viable competitor. And I’m sure Ballmer would love for Microsoft to own a social network that even Apple has used as a marketing ploy as of late. Recent commercials for the iPhone entice potential customers through the ability to access Facebook on the popular mobile device.

Additionally, internet users are turning to their social networks during their search process. Consumers want answers and reviews and social networks help them get opinions from trusted sources.

The Facebook move would likely be seen by many as a better fit than Yahoo. But expect just as many to see it as a negotiating ploy in their bid for Yahoo. Though Microsoft has officially withdrawn its bid for Yahoo, many analysts expect Ballmer and the team to return to the table for another stab at a grab for the search engine.

Neilsen/Netrankings has released some figures which show a monthly decline in Facebook users for the first time since its launch, before it has even managed to fully leverage its traffic volumes into advertising sales.  Its unique audience dropped 5% from December to January prompting many people predicting the demise and claiming Facebook is a fad which will go away as quickly as it arrived.  Have people really already become Facebored?  Or is it simply inevitable that sooner or later there would be a dip in audience as the users who created an account “just to see what all the fuss is about” disappear back to their own world grumbling that it was a load of rubbish anyway?

Mark Ritson, in his article for Marketing, blames the decline on Facebook’s open door policy.  Since September 2006 Facebook has allowed anybody with a valid email address access to their network which was previously exclusive to US students (and before that just Harvard students).  This is where the influx began and over the last 18 months its user base has just grown and grown, until now!  Ritson uses the analogy of being in a hyper trendy bar with his friend, surrounded by beautiful people, drinking beautiful cocktails, listening to great music, before realising the only thing which spoilt the bar, was them!  Two middle aged blokes with expanding waistlines stood out like a sore thumb and somehow made the place less cool.  By opening its doors to anybody in the world, he argues, Facebook has made itself less cool and exclusive, and the seriously cool people, aren’t going to want to be sent a friend request from their mum or an old school teacher!  They want to hang out in a cool environment which similarly cool people, doing cool things and just generally being cool.

So has Facebook’s open door policy caused this dip and is it to be the demise of the worlds largest social networking site?  I don’t know, but I can say that my usage habits have changed slightly since I added my mum and dad as friends!  I am now a lot more careful about what I post and where I post it, although that doesn’t really change the experience too much.  Personally I would blame the 5% drop on the part time users departing, there had to be a dip at some point and I’m sure that’s how the guys at Facebook will see it. 

What it does say to me is that Facebook need to get their act in gear and make this thing profitable, they have an advertising model in place now should start to reap the rewards but it is still not the finished article.  I feel for them in that they are trying to be innovative and make their ads as unintrusive a possible and this is difficult to do but they must find a way.  They have already been chastised for their beacon system and they probably cant afford another mistake like that.  I just hope for their sake, that they don’t rue missing out on a  slice of their $15 Billion valuation which could start to decline a lot faster than their user base if next months figures aren’t more positive.

An application has been developed which allows you to view your Myspace page through Facebook.  The application, developed by Fuser, allows you to check your messages, bulletins and comments without ever leaving the Facebook site.  for the social hardcore this could be a god send and could also be a big dent to Myspace as it will enable users of both to monitor them through one single website, hence less visitors going to the Myspace site.  If users are beginning to migrate from Myspace to Facebook then this could be the final act which prompts a complete switch as they will be able to keep an eye on their lesser used Myspace page without having to visit it.

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Mars this week launched a Facebook application which allows users to send their friends the gift of a real life Mars bar.  The “gift” will be in the form of a message which, once opened, asks the recipient to enter their mobile number and from this they will be send an SMS voucher which can be redeemed in a participating store.  Twix, Galaxy, Malteser’s and Mars will all be able to be sent with the sender paying via a Paypal account.  This is a bold venture by the guys at Mars but I cant help but think it is a desperate attempt to get involved in social media by a brand which doesn’t necessarily fit.  I am seeing all to often recently companies who know of the buzz around social networking and decide that “we need to be part of that!”  No thought given to whether their brand or product fits or whether the audience they are trying to engage with is part of the social environment they are considering.

To me, social media, social marketing, social networking or however else you want to term it is about engaging with your audience on a personal level, listening to what they are saying and bringing those learnings back into the business.  Too many people are deciding they want to be part of the social phenomenon without thinking whether it suits them, their audience and their product.  The first questions they should be asking are, what am I looking to achieve? Who am I trying to engage? where are these people interacting? Mars is a border line case and they have probably just about pulled it off but in many cases people are missing the mark by a long way just to be involved in the current craze.

It is the social networking phenomenon which has taken 2007 by storm but I have started getting a little bored with Facebook of late.  Now that the thrill of connecting with old friends has passed and the days of logging in to a potful of notifications is behind me I’m struggling to get excited by it all.  All I seem to get these days or invitations to join the latest application doing the rounds and numerous postings of those annoying chain letter style messages (for the last time, nothing bad is going to happen if you don’t pass it on, no-one is going to delete your profile and you aren’t going to come into any money!).  There are a few friends who I contact through it which make the process of logging in worth while but aside from that its all a little dull for me now.  Maybe I am alone in this feeling? I know for a fact many of my close friends are still wildly addicted to it and if they go a day without logging on they start breaking into cold sweats and having panic attacks.  But I just don’t get that feeling of anticipation when logging in anymore.  Sure, I still use it, but more out of habit than enjoyment and also the fact I use the internet all day everyday at work so have access all the time.  I certainly wouldn’t be too worried if I had to go with access for a period of time though and can’t see Id miss it at all.  Maybe this is the start of the great Facebook decline, where the casual user drifts away and only the hardcore remain, leaving thousands of redundant accounts.  This is how I see Myspace’s current existence, I haven’t seen their take up figures recently but I would imagine they are in sharp decline, part due to the rise of Facebook but also because they are no longer the flavour of the month and only the hardcore survive.  Facebook is a long way from this status as they are still in the stage of sign up growth but they need to keep one eye on the future and think about how to avoid the decline, either that or get out while the going is good.  As they say, timing is everything, but I doubt they will ever be valued at more than the current $15 billion so it may be time to cash in.

In last weeks media week Microsofts’s UK head of marketing, Alex Marks, discussed microsofts marketing strategy and attempted to justify the money they had pumped into Facebook.  Denying it was a simple land grab and a chance to hold of a Yahoo or Google purchase Mark’s validated the purchase by speaking about how Facebook satisfies a basic human need to communicate and engage with fellow human beings.  He also goes on to say how internet behaviour is becomingly increasingly commnuity based seemingly suggesting that the future of the internet lay in propoerties such as Facebook.  Apparently we are no longer talking about social networking sites but social utility sites much more than quirky communication tool and are becoming a tool for managin offline relathionships online.  With the sum totoal of its wares so far the exclusivitiy of banner advertising on Facebook Microsoft has a long way to go before they convince anybody that they got a bargain for their £118M stake.

Tags: facebook, microsoft, aquisition

Its finally happened after a long period of speculation. Facebook have removed the “is” from the status option. I speculated a while ago about what they may replace it with and I have to say I’m disappointed they went for the easy option and just removed it all together. I would have liked to have seen some imagination used into what it could be replaced with they have gone for the safe option and simply removed it.

It was reported on the social networking weblog today that Facebook is finally bowing to user pressure and using the “is” from the Facebook status function.

I have been wondering how long this would take to occur since the massively popular pressure group was set up within Facebook’s own network campaigning for it to be removed.  It has not happened yet and there is no indication of when it will happen but it will be interesting to see what it will be replaced with. 

An obvious option would be to remove the verb all together and allow the user to write whatever they want after their name.  But another option could be to have a drop down list of verbs to choose from when setting your status so that there is one for every occasion.  This way the Facebook traditionalists (if there are any!) can continue to use the “is” yet those wanting more flexibility should be able to construct whatevere status they wish.

Tags: facebook, social networking

It was reported today on the New Media Age website that Kylie Minogue is to launch her own social network KylieKonnect.com alowing her fans to interact with one another.

One KylieKonnect fans will be able to create personal profiles, make new friends and hold conversations with one another. They will also be able to download Kylie tracks via 7digital and mobile ringtones of their favourite Kylie tunes. And on upon joining the site Kylie will be their first friend!

The article claimed Kylie is going head-to-head with Facebook and MySpace which is a little creative license from the author but it is an interesting development. I would be intrigued to find out about the additional functionality of the site above and beyond what can be found in message boards on other fan sites and it will be interesting to see how it is adopted by her fan base. It is certainly something which could be picked up on by other artists if it takes off could be the first of an influx of people trying to ride the social media wave. Im not sure I will be rushing off to sign up just yet though!

Social media and networking is the new buzz word in online marketing and everyone wants a slice of the action.  It could be through blogging, customer discussion or other means businesses are sitting up and taking note of the power of the social internet community.  But does it work for everybody?

This is a question I asked myself in the face of a company who were very keen to enter this sector and asking for guidance.  The problem is that people take this buzz word, hear the hype around it and decide, “we need to be doing social”, without thinking about what that means to them as a company.  I imagine what they think it means relates to myspace, facebook and bebo, but how do you engage these audiences when you are selling something which doesn’t fit, pensions maybe, of life insurance.  That’s not to say that some of the audience would not be interested but the vast majority aren’t going to be. 

The first question a company should ask itself is, “does my product fit with social media? What am I going to achieve by getting involved?”  If the answer to the first question is no, then stop, look for other ways to achieve your goals.

This example relates directly to the common perception of what social media involves, i.e. social networking sites.  When looking at the broader scope of social it may be you can find a small element which will work for you, customer discussion boards, integrated blogging, community engagement, they are all forms of social media and all have a use.  Social media has a much broader reach than the websites people automatically quote when the phrase is uttered.  So look further afield, engage an social media expert and take their advice on board.  And at the end of the day, if social media isn’t for you, walk away.  Just because something is the flavour of the moment, doesn’t mean its going to taste sweet to everybody.