com.motion » Social Networks

Twitter’s Latest Valuation: $1 Billion

Lynn Eastep — Fri, 25 Sep 2009 14:54:06 +0000

(Image via TechCrunch)

Twitter, the hot microblogging service, is set to close a round of financing of around $100 million that values the three-and-a-half-year-old start-up at $1 billion, according to The New York Times.

Twitter’s last round of financing, raised in February, valued the firm at $250 million, meaning Twitter has quadrupled in value in less than a year.

The news of the new valuation was first reported last week by the blog TechCrunch. This morning, details about some of the new investors and the timing were added by the Web site of The Wall Street Journal.

So, faithful readers, is Twitter worth all of the fuss? No one has quite figured out a business model for Twitter yet, but obviously the company is generating a lot of buzz. It was just a few years ago no one could understand why Twitter was getting so much coverage, but now it’s raising money with a billion dollar valuation. Did the early explosion of coverage make that happen? Or was the early coverage simply serving as a predictor that it would eventually happen?

Facebook Connect Was What Pushed It Past MySpace

Lynn Eastep — Fri, 11 Sep 2009 01:07:00 +0000

Traffic firm Hitwise says Facebook eventually overcame MySpace in terms of U.S. traffic as a result of the launch of its Facebook Connect universal log-in product, according to a post from analyst Heather Dougherty. Facebook Connect is the ability of the user to use a single portable identity–and most importantly, one password, rather than logging into multiple accounts across the network of Web sites.

“The number of Web sites participating in Facebook Connect has grown quickly to over 15,000 Web sites (globally) including CNN.com, NBC.com, ABCNews.com, Hulu, WashingtonPost.com, The Huffington Post, and others,” Dougherty’s post read. “And what is really interesting is to look at the year-over-year growth in the market share of visits to Facebook, because there is a clear uptick in the growth rate following the launch of Facebook Connect.”

And that growth spurt was what made it the biggest site of its kind in the U.S., according to the numbers. The social network officially surpassed MySpace in U.S. traffic during the week of May 30, Hitwise estimated.Facebook’s rapid growth made it pretty much inevitable that it would surpass the News Corp.-owned MySpace, once the clear leader in social networking. But even when Facebook passed MySpace in worldwide traffic, MySpace still had a pretty big edge in the U.S. Ultimately, Facebook passed MySpace in U.S. usage earlier than some thought it would.
If Hitwise’s numbers are accurate, it’s a big testament to the success of Facebook Connect, which launched in full last December.

MySpace has launched its own universal log-in product, MySpaceID, backed by partnerships with Google and Yahoo. But it’s Facebook Connect that has caught on among both the Web-going public and the marketing world.

Participation from Web sites in Facebook Connect also has strong implications to appear more often in the search results executed on Facebook resulting from member postings as search becomes a more prevalent activity within this large audience. Facebook now has more than 250 million active users worldwide.

Woman Loses $4K to Scammer Posing as Friend on Facebook

Lynn Eastep — Tue, 08 Sep 2009 14:23:00 +0000

Jayne Scherrman, of Cape Girardeau, Missouri, was the unfortunate victim of a scam that turned her compassion and trust into a $4,000 profit, the AP reports. A still unknown crook hacked the Facebook account of Jayne’s friend Grace Parry and began to send Jayne messages, purporting to be Grace and claiming that she and her husband had been detained in London and were in need of money.Jayne figured if the couple could reach her only by Facebook, then they were in dire straits, indeed, and quickly wired $600 as per the scammer’s instructions. As is common in these kinds of schemes, subsequent messages were sent requesting additional funds. In this case, the huckster blamed the exchange rate when explaining the discrepancy between the funds needed and the amount initially requested.

All in all, Jayne eventually sent $4,000 via Western Union to the impostor before realizing that she had fallen victim to a scam. On August 26th, she alerted the authorities.

This tactic has been used before, but there ways to avoid a snakey scammers:

First and foremost, never wire any money without speaking directly (on the phone, not via e-mail or Facebook) to any friend who requests your help financially.

If you believe there is a plausible reason this friend cannot reach you by phone, don’t be afraid to ask them to confirm their identity. Ask questions that only they would be able to answer.

Don’t ask about birthdays or hometowns, facts that could be readily ascertainable online, but instead about where the two of you first met, first boyfriends, or high school mascots.

If you know or suspect a friend’s account has been hacked, try to alert that person directly. Then, warn all of your mutual friends, and finally contact the site’s administrators regarding your suspicions. Both your friend and shared pals will be thankful.

Follow these basic guidelines, resist your immediate urge to blindly offer help, and you’ll avoid falling victim to the widespread 419 scams that have taken a more personal twist when crooks ditched their Nigerian princess roots. [From: AP/Yahoo! News]

Facebook To Comply with Canadian Privacy Law

Lynn Eastep — Thu, 27 Aug 2009 19:02:00 +0000

Facebook will enhance its social-networking site’s privacy features over the next 12 months as a result of a set of recommendations from the Canadian government.

Facebook will increase the information it provides to its users about its privacy features, as well as make technical changes to tighten privacy controls, the company said Thursday.

The changes come as a direct result of a review of Facebook’s privacy policies and controls conducted by The Office of the Privacy Commissioner of Canada . Facebook cooperated with the Canadian agency’s study, which lasted more than a year, reports Reuters. Specifically, Facebook will update its privacy policy so that it more clearly explains its privacy practices. Facebook will also reach out to users, prompting them to review their privacy settings. Canada’s privacy commissioner had previously threatened to take Facebook to court if the company did not resolve “serious gaps” in the way it handles users’ personal information and retains data from deactivated accounts.

Facebook announced plans to give users more control over how their information is shared with third party developers, as well as offering a clearer option for users to deactivate or delete their accounts.

“Giving people more control over what information they share and with whom is at the heart of how we think about privacy at Facebook,” the company wrote in its blog. “As people better understand how information is shared and gain more control over it, they become more comfortable and confident in sharing.”

Facebook has about 12 million Canadian users. It has a total of more than 250 million active users worldwide.

OMG! Check UR Facebook Page B4 Big Interview

Lynn Eastep — Fri, 21 Aug 2009 11:37:00 +0000

After months of searching for a new job, you’ve finally scored an interview for a position that doesn’t require you to say “Would you like fries with that?” So, when preparing for that interview, you start making a mental checklist: Resume? Check. Interview suit? Check. Removing “Girls Gone Wild” pics from your Facebook page? Uh oh.

According to a new study conducted by Harris Interactive for CareerBuilder.com, 45 percent of employers questioned are using social networks to screen job candidates — more than double from a year earlier, when a similar survey found that just 22 percent of supervisors were researching potential hires on social networking sites like Facebook, MySpace, Twitter and LinkedIn.

The study, which questioned 2,667 managers and human resource workers, found that 35 percent of employers decided not to offer a job to a candidate based on the content uncovered on a social networking site. (The survey has no margin of sampling error because it was not drawn from a representative nationwide sample but rather from volunteer participants.)

More than half of the employers who participated in the survey said that provocative photos were the biggest factor contributing to a decision not to hire a potential employee, while 44 percent of employers pinpointed references to drinking and drug use as red flags. The top examples cited include:

Candidate posted provocative or inappropriate photographs or information – 53 percent
Candidate posted content about them drinking or using drugs – 44 percent
Candidate bad-mouthed their previous employer, co-workers or clients – 35 percent
Candidate showed poor communication skills – 29 percent
Candidate made discriminatory comments – 26 percent
Candidate lied about qualifications – 24 percent
Candidate shared confidential information from previous employer – 20 percent

Recently, a British woman was publicly fired on Facebook for defaming her employer.

The woman, whose identity was blacked out on internet blog Applicant, reportedly vented her frustrations about her boss and workplace on her Facebook status, according to World News Australia.

After posting “OMG I HATE MY JOB!! My boss is a total pervvy (sic) wanker always making me do sh*t stuff just to piss me off!! WANKER!” she was immediately fired by her boss. Unfortunately, the now-unemployed worker had added her boss as a friend, allowing him, and all other co-workers see her status. The boss then proceeded to identify her day-to-day mistakes while ending the post with a notice of termination: “Don’t bother coming in tomorrow.”

What’s the lesson here? Social networking is a great way to make connections with potential job opportunities and promote your personal brand across the Internet but, if not used appropriately, can hurt your job search and can lead to job loss. Job seekers need to be mindful of the information they post online and how they communicate directly with employers. Just because social media is all about transparency doesn’t mean you have to be transparent in everything you do. Transparency comes with a cost — in some cases, losing a job.

Twitter Has Hollywood Quaking in Its Jimmy Choos

Lynn Eastep — Thu, 20 Aug 2009 16:11:00 +0000

The weekend is almost here, so you decide that you want to go to the movies this Saturday. Do you make your movie pick based on advertising or do you ask a friend for recommendations?

Your friend, of course. And, as we know, the loose definition of “friend” now encapsulates social media peers. With the rise of social networking tools such as Twitter and Facebook, word of mouth now moves at the speed of an iPhone. Think about it – as soon as someone leaves the movie theatre he or she can tweet instant raves — or pans — to hundreds of people just minutes after the credits roll. This phenomena has Hollywood quaking in its Jimmy Choos.

Gone are the days when TV commercials and newspaper ads dominated movie marketing. According to Nielsen’s “Trust in Advertising” study, only 14 percent of people trust advertisements whereas 78 percent of people trust the recommendations of their friends. Empowered consumers now have a greater ability to influence companies, brands, and yes, even movies.

Studios are trying to gauge the impact of an avalanche of tweets and how it affects the staying power of a movie. This summer, movies such as “Brüno” and “G.I. Joe” have had unexpected tumbles at the box office — just within their opening weekends — while “Transformers: Revenge of the Fallen” survived blistering critical reaction to become a blockbuster, reports The Washington Post.

What’s the learning from this? Word of mouth — particularly with turbocharged social media channels – is a real and powerful force that can’t be stopped. Studios now have the opportunity to engage in conversations and directly engage with consumers. People want real-time news, and suddenly a studio can give it to them in a first-person way. Also, this may prompt studios to create quality movies instead of shoving garbage movies down people’s throats through aggressive marketing campaigns.

MySpace “Owning” Music through iLike Aquisition is a Smart Move

Lynn Eastep — Wed, 19 Aug 2009 14:36:00 +0000

MySpace is reportedly set to buy iLike, Facebook’s leading music application — for about $20M USD, reports TechCrunch. That purchase would put the application’s future at Facebook in jeopardy, while solidifying MySpace’s musical pedigree, one of the few domains where MySpace tops Facebook. For Facebook, who was hoping to advance in this realm, the purchase is seen as a huge problem for because iLike is so deeply integrated into the Facebook experience. Nearly 10 million Facebook users use the iLike application every month, and MySpace is now going to own that traffic.

iLike, which launched in late 2006, is a social music recommendation service that now has more than 50 million registered users. It tracks what you listen to and like and gives you recommendations on new music based on that data as well as what your friends are listening to. It’s the top music application on Facebook, Bebo, Hi5 and just about every other social network other than MySpace, which has MySpace Music. iLike also hosts band pages which are second in popularity only to MySpace Music.

From humble origins in 2003, MySpace turned the music industry on its head by changing the way a generation communicates. But even having 200 million friends and Rupert Murdoch as a boss won’t help when your website is no longer flavor of the month. MySpace’s loss of status is reflected in its usage metrics: MySpace had 124 million monthly unique visitors last month, a decline of 2 percent, according to comScore. Facebook, by contrast, had 276 million unique visitors, an increase of 16.6 percent.

By acquiring iLike, MySpace solidifies their already leading position as the most popular online identity for bands and perhaps stop the bleeding as Facebook continues to dominate the social media space.

What’s Facebook’s Newest Status Update? Users file privacy lawsuit against us :(

Lynn Eastep — Tue, 18 Aug 2009 14:21:00 +0000

According to CNET News, a group of Facebook users filed a civil lawsuit Monday that alleges the social-networking site is violating California consumer privacy laws.

The lawsuit, which was filed in California’s Orange County Superior Court on behalf of five users, seeks a jury trial, as well as damages and attorneys’ fees. The five plaintiffs are described as two children younger than 13, a user of the original Facebook, a professional photographer, and an actress and model.

The 40-page complaint accuses the Palo Alto, Calif.-based company of violating California privacy and online privacy laws by disseminating private information to 3rd parties for commercial purposes.

Facebook is no stranger to privacy controversy. In July, an investigation by Canada’s privacy commissioner suggested Facebook is unconcerned with members’ privacy and called on it to do more. Commissioner Jennifer Stoddart expressed concern that while it’s easy for members to deactivate their accounts, it’s less clear on how to actually delete them. Facebook could therefore retain member data from deactivated accounts for an indefinite period of time in violation of Canadian privacy law.

The social network went through a user backlash over the introduction of its News Feed in 2006, and a bigger one over the controversial Beacon advertising program. More recently, a revision to Facebook’s terms of use prompted consumer advocacy blog The Consumerist to highlight language that it said meant that Facebook claimed ownership of user profile data and photos.

Artificially Inflating Twitter Follower Counts

Lynn Eastep — Mon, 17 Aug 2009 16:01:00 +0000

According to Mashable, Twitter has moved to shut down marketers promoting ways to artificially inflate Twitter follower counts.

According a press release issued by uSocial, who markets products like a “$1,000 Twitter followers for $87” package, “Twitter has recently moved to [shut us down], by claiming [we're] ’spamming.’” uSocial takes issue with this claim, saying, “the definition of spam is using electronic messaging to send unsolicited communication and as we don’t use Twitter for this, the claims are false.”

Last week, Mashable received press release from uSocial that not only claimed that the company “sold” Twitter followers, it also highlighted the fact that they ignored a “Cease and Desist” order from social news site Digg for selling votes. Twitter moved swiftly to prevent this company from unethically inflating followers.

While it’s good to know that Twitter is cracking down on shady marketing companies, this also opens up another issue: How far will marketers go to inflate their metrics within the social media space? While those of us who work within social media channels understand that measurement/metrics differ from advertising (e.g., the quality of interactions, engaging with key influencers, sustained conversations over time), many traditional marketers adhere to the antiquated notion that “more is more” when it comes to the number of users. It’s not the number of followers/friends/fans; it’s the meaningful relationships built over time. Social media is a long-term strategy, not a quick fix.

The challenge is to educate traditional marketers to inform them that it’s not quantity that’s important within social media; it’s the quality — that is, communicating with audiences in an authentic, relevant and engaging way over time.

Is Twitter Pointless Babble or A Legitimate Communications Tool?

Lynn Eastep — Mon, 17 Aug 2009 11:01:00 +0000

With Twitter being the shiny new penny of the social media world, many are eager to find out how people are actually using the microblogging platform.

Pear Analytics, a data analytics company, studied the content of tweets to find out how people are really using Twitter. The Pear Analytics group took 2,000 tweets in English from the public timeline over a time span of two weeks, with 200 tweets captured each half-hour from 11am – 5pm CST daily. They then categorized tweets into six different types: news, spam, self-promotion, pointless babble, conversation, and pass-along value.

The winner? Pointless babble tweets, with over one-third of all studied tweets fitting into the “I’m clipping my toenails” category. Conversational tweets came in a very close second with 37.55 percent. Pass-along value — or RTs — captured third-place with only 8.7 percent, but, interesting enough, spam only accounted for 3.75 percent of all tweets studied.

Other key findings:
- News tweets are heaviest at 2:00pm CST on Tuesdays
- Pass-along value tweets are most frequently seen at 11:30am CST on Mondays
- Spam tweets flow consistently all day, everyday
- Conversational tweets are heaviest on Tuesdays

Gizmodo recently published a blog post “If Only 100 People Were on Twitter”, with data visualization by Dave McCandless. What’s significant is that there are“5 loud mouths” per 100, or 5 percent of the folks who contribute 75 precent of the tweets. What does this mean? A handful of narcissistic people are contributing a significant amount of pointess babble to the Twitterverse.

As Twitter continues to develop, not only as a brand but as a communications platform, it’s likely that the usage trends will also evolve. Hopefully, the largest violaters of pointless babble will stick to Twitter’s inherent 140-character philosophy: Less is more.