Birthday greetings as a proxy for how communication is becoming more public 3.0 September 29, 2009
Posted by jeremyliew in communication, email, facebook, social networks, twitter.2 comments
This is the third year that I’ve tracked my birthday greetings as they have moved from private channels to public channels, primarily facebook. As I noted previously, in 2007 and 2008;
Social networks have changed the dynamic – it isn’t enough to wish someone a happy birthday, but it is also important to be SEEN to wish someone a happy birthday. Equally, it is important to be SEEN to have a lot of people wish you a happy birthday too!
This year the shift continued but was much less pronounced, as the graph below shows:

It’s somewhat notable that despite the huge increase of Twitter usage there were no happy birthday tweets. The use case is off. The tweeter would be sending a birthday greeting to the wrong audience – to their followers, not to mine.
The other notable point is that there is an overall increase in the number of birthday greetings over 2007. This is consistent with the obvervation in a recent edition of the Economist’s Intelligent Life magazine, that we are all writers now:
Go back 20, 30 years and you will find all of us doing more talking than writing. We rued literacy levels and worried over whether all this phone-yakking and television-watching spelled the end of writing.
Few make that claim today. I would hazard that, with more than 200m people on Facebook and even more with home internet access, we are all writing more than we would have ten years ago. Those who would never write letters (too slow and anachronistic) or postcards (too twee) now send missives with abandon, from long thoughtful memos to brief and clever quips about evening plans. And if we subscribe to the theory that the most effective way to improve one’s writing is by practicing—by writing more, and ideally for an audience—then our writing skills must be getting better…
True, much of what is written online is quotidian, informational, ephemeral. But writing has always been so: traditional newspapers line bird-cages a day later; lab reports describe methodology in tedious detail; the founding fathers wrote what they ate for lunch. And the quality of many blogs is high, indistinguishable in eloquence and intellect from many traditionally published works.
Our new forms of writing—blogs, Facebook, Twitter—all have precedents, analogue analogues: a notebook, a postcard, a jotting on the back of an envelope. They are exceedingly accessible. That it is easier to cultivate a wide audience for tossed off thoughts has meant a superfluity of mundane musings, to be sure. But it has also generated a democracy of ideas and quite a few rising stars, whose work we might never have been exposed to were we limited to conventional publishing channels.
So thanks for the birthday wishes, and be thankful that we’re all writing more!
People under the age of 30 use Myspace more than Facebook July 30, 2009
Posted by jeremyliew in facebook, myspace, social networks, twitter.6 comments
Interesting research noted at Inside Facebook on how different generations use social networks. Most interesting chart to me shows that Gen Y (15-29) and Gen Z (13-14) use Myspace more than Facebook.

Performance advertising success stories in social media April 24, 2009
Posted by jeremyliew in advertising, facebook, performance, social media, social networks.7 comments
On Wednesday I moderated a panel at ad:space (an ad:tech satellite conference centered on performance advertising) focused on how performance advertisers can be successful in social networks. The discussion from panelists Ro Choy (Chief Revenue Officer at Rock You, a Lightspeed portfolio company), Seth Goldstein (CEO of Social Media) and Tim Kendall (Director of Monetization at Facebook) was very enlightening.
Comscore recently noted that performance advertising adopts online media faster than brand advertising because it is easier to measure results over short time periods. The knock on social media ad inventory has been that CTRs are low. This is less relevant for performance advertisers who only pay on the click or the action anyway. We heard about some terrific success stories for performance advertisers in social media on the panel who are seeing ROI on their ad spend comparable to Google.
The panelists called out two particular examples of advertisers seeing real scale results. Seth highlighted mobile services as a category that has seen terrific success in customer acquisition in social networks (if you’ve seen the “crush” or “IQ test” ads on Facebook or Myspace you’ll know what he is referring to) and is generating hundred of millions in incremental revenue from this channel. Ro mentioned that Rockyou generated 1.5m new users for an online game advertiser in just one month. Although not represented on the panel, MySpace is selling hundred of millions of dollars worth of performance advertising per year. These are impressive numbers.
The panelists highlighted one key difference between social media performance advertising and Google AdSense style performance advertising. AdSense uses contextual targeting to improve performance. Social media uses demographic, behavioral and social targeting to improve performance.
In the open web much demographic targeting is inferred from behavior. For example a user who visits ESPN.com, Nascar.com and NFL.com might be inferred to be male. This is often, but not always, correct. Social networks take a different approach. On their profile pages, users declare many key aspects of their demographics, including age, gender and location, the three key elements for targeting. Targeting based on these self declared demographic elements can be very effective for performance advertisers within social media. Ro related the example of Rachel’s yoghurt, an advertiser that targeted coupons to women living within 5 miles of Whole Foods in 10 cities through Rock You. The campaign delivered 0.20% CTRs to the Rachel’s Yoghurt site, with a 35% coupon download rate. These are impressive numbers, and led the advertiser to renew the campaign for an additional 12 weeks. Doing such a high level of targeting can result in relatively small numbers of impressions, but this is one area in which social media excels. Because of the high reach and high number of pageviews, social media sites can still deliver sizable campaigns to even highly targeted campaigns.
Behavioral targeting also benefits from the scale of social networks as even tightly targeted campaigns can still deliver meaningful reach. Retargeting works well, as it does for the open web, but once again this can be combined with declared interests on user profile pages. Tim described a very detailed campaign that a politician, Patrick Mara, ran on Facebook to defeat a 16-year incumbent in a DC city council primary last year. Mara was in favor of allowing gay marriage, so he pushed information about his stance out to DC Facebook users who’d listed their sexual orientation as gay. If Facebookers had kids, he targeted them with ads about the school system, and if they were Republicans, he hit them with information about taxes, school vouchers and similar conservative favorites. Very clever! And apparently quite cheap for the results — Patrick found Facebook advertising to be a great way to recruit volunteers. Future local campaigns, take notice.
Social targeting is one area that is unique to social networks. Integrating knowledge of social ties into the creative of the ad can really lift response rates. Seth described one campaign that Social Media ran for Live Nation, the concert promoter. Seth himself saw an ad with the name and picture of a friend of his saying “Dan is going to see Cold Play at Shoreline this summer. Do you want to go with him?”. This is a great example of an ad that takes advantage of knowledge of behavior (Dan is going to see Coldplay), location (the concert is near where Seth is) and friendship ties (Dan is a friend of Seths) to build a very compelling piece of creative.
The theme of customizing ad creative for social media came up repeatedly during the panel. While good results could come from running standard web creative and using the targeting that social media provides, the best results came from building campaigns that appeal to behaviors that are native to social networks. Often this had to do with identifying friends (names and pictures) in the creative, as well as integrating a compelling social call to action. Ro described a campaign that Rockyou ran for Pentel Pens that asked users to enter “their smoothest (pickup) line” into a sweepstake. The rich media with video campaign led to real engagement with a 22.5% engagement rate (2x av performance for the category), a 0.6% CTR and 60% of users watching at least half of the video. The campaign drive over a million entries into the contest and worked well to drive high engagement with an “unsexy” CPG brand because it was well crafted for a social environment.
It is clear that social networks provide a real opportunity for performance advertisers. Smart targeting allows the first level of performance lift, and custom campaigns and creative that are “native” to social media can deliver even further lift. I think we’ll see much more adoption of this channel by performance advertisers over the coming months
Best practices in contextual and performance advertising in social networks. April 15, 2009
Posted by jeremyliew in advertising, performance, social media, social networks.add a comment
I’m moderating a panel at AdSpace 2009 next Wednesday. The conference is focused on contextual advertising and is in partnership with ad:tech at Mosconne in San Francisco.
My panel is at 5pm on social media strategies for contextual and performance advertisers;
Social Media Strategies
Social media sites are garnering billions of page views a month, yet many advertisers have yet to dip their toes into social media advertising. Find out how advertising on social media sites differs from contextual advertising and whether social media advertising will drive ROI for your business.MODERATOR:
Jeremy Liew, Managing Director, US, Lightspeed VPPANELISTS:
Ro Choy, Chief Revenue Officer, RockYouSeth Goldstein, CEO, SocialMedia
Tim Kendall, Director of Monetization, Facebook
If you’d like to come, use the code 25ADSPACE to get a 25% discount at registration.
Google’s three new patents to improve targeting in social media December 15, 2008
Posted by jeremyliew in advertising, google, social media, social networks.5 comments
IEEE Spectrum notes three new patent applications from Google that suggest how Google hopes to improve targeting for social media advertising:
The patents—Open Profile Content Identification, Custodian Based Content Identification, and Related Entity Content Identification—and the algorithms behind them would let Google find patterns in users’ profiles, pages, and friend lists in order to better target ads to them. Ideally, they would make the users more likely to click through.
Google’s Related Entity patent, for one, involves prying information from a user’s list of friends or user groups. But Google is not alone in this field. In June the social ad firm SocialMedia Networks said it had invented an algorithm called FriendRank that also scours a user’s friendship lists for friends whose names might be dropped in a targeted ad.
The Open Profile and Custodian patents would mine data from, say, a MySpace user’s profile and the profile of the MySpace page the user is visiting. The Open Profile patent, for instance, would consider a user profile like “I really enjoy hiking, especially long hikes when you can camp out for a few days. Indoor activities don’t interest me at all, and I really don’t like boring outdoor activities like gardening.”
Using smart language-processing algorithms to detect the user’s sentiments (“enjoy” or “don’t like” near “hiking” or “gardening”) and other linguistic cues, the system would then potentially serve up active outdoor sports-related ads to this user but avoid ads about more hobbyist-oriented activities.
Google is continuing to apply the adsense paradigm of contextual targeting, but expanding the definition of “context” to include the friend networks and the declarations of interests that are common to social network profile pages. MySpace’s hypertargeting is a similar approach.
Facebook’s engagement ads are a markedly different approach, charging for actions rather than using targeting to lift CPMs within display advertising. I think engagement ads could be a very interesting approach that takes advantage of the native behavior of “user affiliation” withing social networks.
I’m indifferent to which standard wins, but I do want a standard to emerge. We need a standard in social media advertising to unlock further scalable growth in this industry.
Facebook’s engagement ads could be the standard we need for social media advertising November 11, 2008
Posted by jeremyliew in advertising, engagement, social media, social networks.3 comments
The WSJ today notes that Facebook lags Myspace substantially in ad sales, despite having surpassed MySpace in usage:
[Facebook] … says 70 of the U.S.’s 100 largest advertisers have advertised on its site since 2007. But its share of total number of U.S. online display ad views was just 1.1%, according to market research firm comScore Inc., in its most recent report in June.
News Corp.’s Fox Interactive Media Unit, which includes rival MySpace.com, is the market leader with 15.9% of display-ad spending, according to comScore.
I believe that this is because most of the ads the Facebook sells are not standard units, unlike most of the ads that MySpace sells. As I’ve mentioned before, new forms of advertising are hard.
However, I am excited about the new engagement ads that Facebook is now selling:
The Palo Alto, Calif., company is rolling out a new ad format called “engagement ads” that further blurs the line between marketing and social networking.
The new ads appear on the main screen when a person first logs in to Facebook. They prompt a user to do something within the ad, such as comment on a movie trailer or RSVP for the season finale of a TV show.
This could be the first move towards a new standard for social media advertising. As I said previously:
The thing that differentiates social media sites from other forms of online media is not just user generated content, it is also that users are willing to affiliate themselves with brands. This takes many forms, from friending Scion on Myspace to putting a Natasha Bedingfield style on your Rockyou photo slideshow, to buying one of your Top Friends a Vitamin Water. These willing user affiliations/endorsements of brands are clearly valuable to marketers of those brands. Right now though, these deals are being negotiated on a one off basis; they look more like business development deals than selling ads off of a rate card. It will take a while for the social media industry to establish standards for selling this incredibly valuable inventory to brands, but I suspect that this will happen over the next 12-36 months.
Facebook’s engagement ads are potentially the first step towards defining what the ad unit will be (prompting a user to take an action that affiliates themselves with a brand). Flixster has had good success with this concept in many of its campaigns with movie studios. I think this concept could well be the basis for a new standard unit for social media, and I hope that the rest of the industry gets behind it.
Birthday greetings as a proxy for how communication is becoming more public September 23, 2008
Posted by jeremyliew in communication, email, social networks.3 comments
Last year I noted how the “performance” aspects of social networks was moving more birthday wishes from private communication channels (e.g. email) to public ones (e.g. Facebook wall posts). This year, the trend is even more pronounced if my own experience is any indication.
The number of wall posts went up dramatically. FB private messages also went up. Email as a mode of communication fell in absolute terms, and far more as a % of communications. The chart below summarizes the differences between 2007 (blue) and 2008 (purple). (Note that the free gift and Facebook gift were both attached to FB wall posts)
The proportion of “private” birthday wishes (email, FB messages, calls, cards and in person) fell from 52% to 41%. “Public” birthday wishes increased from 47% to 59%.
Social networks have changed the dynamic – it isn’t enough to wish someone a happy birthday, but it is also important to be SEEN to wish someone a happy birthday. Equally, it is important to be SEEN to have a lot of people wish you a happy birthday too!
If you don’t “get” Facebook and Twitter, read this NY Times article September 8, 2008
Posted by jeremyliew in facebook, microblogging, social media, social networks, status, twitter.28 comments
The NY Times is often considered the US newspaper of record, and it lives up to its reputation with an excellent article in today’s Sunday NY Times Magazine about the ambient awareness enabled by Facebook status updates, Twitter and other microblogging tools.
Even readers familiar with both popular microblogging tools and their history should read this article. High points:
Microblogging enables ambient awareness of your broad friendship group:
In essence, Facebook users didn’t think they wanted constant, up-to-the-minute updates on what other people are doing. Yet when they experienced this sort of omnipresent knowledge, they found it intriguing and addictive. Why?
Social scientists have a name for this sort of incessant online contact. They call it “ambient awareness.” It is, they say, very much like being physically near someone and picking up on his mood through the little things he does — body language, sighs, stray comments — out of the corner of your eye.
Ambient awareness comes not from any single tweet or status update, but from the aggregation of the data.
Haley discovered that he was beginning to sense the rhythms of his friends’ lives in a way he never had before. When one friend got sick with a virulent fever, he could tell by her Twitter updates when she was getting worse and the instant she finally turned the corner. He could see when friends were heading into hellish days at work or when they’d scored a big success. Even the daily catalog of sandwiches became oddly mesmerizing, a sort of metronomic click that he grew accustomed to seeing pop up in the middle of each day.
This is the paradox of ambient awareness. Each little update — each individual bit of social information — is insignificant on its own, even supremely mundane. But taken together, over time, the little snippets coalesce into a surprisingly sophisticated portrait of your friends’ and family members’ lives, like thousands of dots making a pointillist painting. This was never before possible, because in the real world, no friend would bother to call you up and detail the sandwiches she was eating. The ambient information becomes like “a type of E.S.P.,” as Haley described it to me, an invisible dimension floating over everyday life.
“It’s like I can distantly read everyone’s mind,” Haley went on to say. “I love that. I feel like I’m getting to something raw about my friends. It’s like I’ve got this heads-up display for them.” … And when they do socialize face to face, it feels oddly as if they’ve never actually been apart. They don’t need to ask, “So, what have you been up to?” because they already know. Instead, they’ll begin discussing something that one of the friends Twittered that afternoon, as if picking up a conversation in the middle.
“It’s an aggregate phenomenon,” Marc Davis, a chief scientist at Yahoo and former professor of information science at the University of California at Berkeley, told me. “No message is the single-most-important message. It’s sort of like when you’re sitting with someone and you look over and they smile at you. You’re sitting here reading the paper, and you’re doing your side-by-side thing, and you just sort of let people know you’re aware of them.” Yet it is also why it can be extremely hard to understand the phenomenon until you’ve experienced it. Merely looking at a stranger’s Twitter or Facebook feed isn’t interesting, because it seems like blather. Follow it for a day, though, and it begins to feel like a short story; follow it for a month, and it’s a novel.
Ambient awareness helps maintain “weak ties”. Sociological research has shown that a large network of weak ties is more likely to be helpful than a small network of strong ties when trying to do things like get a job, find a mate, and other socially tinged objectives
Many maintained that their circle of true intimates, their very close friends and family, had not become bigger. Constant online contact had made those ties immeasurably richer, but it hadn’t actually increased the number of them; deep relationships are still predicated on face time, and there are only so many hours in the day for that.
But where their sociality had truly exploded was in their “weak ties” — loose acquaintances, people they knew less well. It might be someone they met at a conference, or someone from high school who recently “friended” them on Facebook, or somebody from last year’s holiday party. In their pre-Internet lives, these sorts of acquaintances would have quickly faded from their attention. But when one of these far-flung people suddenly posts a personal note to your feed, it is essentially a reminder that they exist.
Microblogging, ambient awareness and maintaining weak ties has the sideeffect of making it impossible to move away and “reinvent yourself” as your past will always be with you.
This is the ultimate effect of the new awareness: It brings back the dynamics of small-town life, where everybody knows your business…
“It’s just like living in a village, where it’s actually hard to lie because everybody knows the truth already,” Tufekci said. “The current generation is never unconnected. They’re never losing touch with their friends. So we’re going back to a more normal place, historically. If you look at human history, the idea that you would drift through life, going from new relation to new relation, that’s very new. It’s just the 20th century.”…
“If anything, it’s identity-constraining now,” Tufekci told me. “You can’t play with your identity if your audience is always checking up on you. I had a student who posted that she was downloading some Pearl Jam, and someone wrote on her wall, ‘Oh, right, ha-ha — I know you, and you’re not into that.’ ” She laughed. “You know that old cartoon? ‘On the Internet, nobody knows you’re a dog’? On the Internet today, everybody knows you’re a dog! If you don’t want people to know you’re a dog, you’d better stay away from a keyboard.”
Again, read the whole thing.
Ad standards starting to work for online video; social media next? August 19, 2008
Posted by jeremyliew in advertising, social media, social networks, video.3 comments
For a long time I’ve been calling for standards in social media advertising. Today if an advertiser wants to make a social media buy across multiple social sites, they will need to build different creative for each of the different social media advertising products on each of the major companies, Facebook, MySpace, Bebo, Rockyou, Slide etc.
Until recently, online video has faced the same problem. But in May the IAB approved new online video advertising standards.
Two studies have shown a positive impact from the establishment of the standards. Reports Wired:
Riddled with inconsistencies, video advertising has been a difficult marketplace to tap into. Advertisers are often forced to tailor creative for each video ad purchase, which is a big turnoff to advertisers looking to make big buys. Meanwhile, long, poorly formatted ads lead to a high rate of attrition by alienating viewers.
In May, the Interactive Advertising Bureau implemented standards to help streamline video advertising. Today, Break Media, an entertainment community for men, and Panache, a video advertising delivery-platform, released a study showing high rates of success with video ads since the standards went into effect.
Over an 11-week period, the study tested the success of the four standard formats for in-stream video advertising established by the Interactive Advertising Bureau: pre-roll, interactive pre-roll, non-overlay ads and overlay ads. Tracking advertisements for three large corporations — Honda, T-Mobile, and truTV — the study found that viewers had a high tolerance for pre-roll and overlay ads.
All of the four formats had extremely high click through rates. Completion rates for 15-second pre-roll ads were 87 percent, and 77 percent viewed videos with overlay ads for at least 15 seconds.
“Getting major advertisers major advertisers to move and turn into video advertising is going to take time,” says Panache CEO Steve Robinson. But he is enthusiastic about the new standards: “now you can just do the creative and know that it works.”
NewTeeVee notes another positive study:
Meanwhile, in a study of 100 campaigns and nearly 65 million impressions, Tremor Media measured 80 percent completion rates for both 15- and 30-second pre-roll ads. While the study’s size makes it more significant, Tremor did not look at click-through rates. Tremor said it actually saw slightly higher completion rates for 30-second ads than 15-second ones, attributing viewer willingness to watch longer ads to their placement next to high-quality content.
For Social Media to be a business we’ll need to see similar standards for social media advertising. This is why I think AOL buying Bebo is good for the industry. With AOL joining Fox as major media companies with a “dog in the fight”, hopefully we’ll move more quickly towards standards for social media advertising.
Is Social Media a business? July 29, 2008
Posted by jeremyliew in advertising, business models, social media, social networks.10 comments
I am a fan and subscriber to the paper version of Technology Review, but was disappointed in their cover story in the current edition, where Bryant Urstadt looks at the current state of the social network sector and concludes that social networking is not a business (free registration required). The article essentially looks at CPMs in the current business (which are low), concludes that revenues are low relative to traffic, and it might all just be a fad.
I have to admit to being biased about social media, but I think that the author’s lack of knowledge in this area (he typically writes for Rolling Stone and Harper’s) really shows. As examples of how poorly social networking sites are doing he proffers four pieces of evidence:
1. MySpace will fall $100m short of its revenue predictions this year. This means that it will only do $650m in revenue and only grow revenue by 100% according to Goldman Sachs.
2. Facebook will only do $50m in EBITDA this year.
3. Ning won’t tell him their revenue
4. CPMs for social media sites are lower than that of Technology Review
Maybe I’m a glass half full kind of guy, but I’d call the first two pieces of evidence pretty promising! The third is hardly surprising as very few private companies want their revenues to be publicly disclosed. And the fourth is a completely specious argument; I’m sure that the Technology Review’s website’s traffic is tiny and that its ads are bundled with that of the print publication, so any sort of comparison is meaningless.
That being said, MySpace and Facebook are far and away the two most successful social media sites at monetizing so far. It is fair to say that click through rates and CPMs are low relative to other forms of online media. The author thinks that targeting is the answer to raise CPMs. I think that is part of the answer, but I don’t think it is the whole answer. It is certainly the answer for social media apps like Flixster (a Lightspeed portfolio company) and Dogster, both of which offer a very targeted audience to endemic advertisers. In these cases, CPMs are not in the sub $1 range, but are comparable to other internet media sites with similarly targeted traffic, often in the single digit or low double digit range.
For the social games category of apps, likely the answer is free to play games with virtual goods models. This is the direction that the rest of the gaming industry appears to be moving towards, and social games are a subset of that trend.
For the vast majority of broad reach social media sites though, I think that the answer lies in a new ad standard for social media. The thing that differentiates social media sites from other forms of online media is not just user generated content, it is also that users are willing to affiliate themselves with brands. This takes many forms, from friending Scion on Myspace to putting a Natasha Bedingfield style on your Rockyou photo slideshow, to buying one of your Top Friends a Vitamin Water. These willing user affiliations/endorsements of brands are clearly valuable to marketers of those brands. Right now though, these deals are being negotiated on a one off basis; they look more like business development deals than selling ads off of a rate card. It will take a while for the social media industry to establish standards for selling this incredibly valuable inventory to brands, but I suspect that this will happen over the next 12-36 months.
There is an interesting parallel to search advertising here. In 2000, search inventory was monetized like every other form of online inventory, through banner ads. It wasn’t until Overture, and later Google, adopted the text ad-CPC standard that the distinctive thing about search inventory, user intent, was appropriately monetized. This created a new category of advertising that is now larger than banner advertising. Although some might disagree, I believe that a similar opportunity will eventually be unlocked by social media once the right ad unit standards emerge
In the interim though, targeting and scale go a long way. As Myspace has shown, $650m here, $650m there, and pretty soon, you’re talking about real money!



