Dec 31, 2009

How Facebook Dominated in 2009


December 30th, 2009 | by Ben Parr
To most observers, 2009 marked the yearTwitter conquered the world. Yet it wasn’t the only social media company that grew like wildfire. There’s another that greweven more rapidly, adding over 200 million new users and raising $200 million dollars— double that of Twitter’s most recent round.
2009 was a breakout year for FacebookFacebook, even if some of its successes were overshadowed by its emerging rival. In fact, the two have been locked in a new battle for the soul of the web, and the right to be the platform where the world converses. To that end, Facebook’s 2009 has partly been about fighting back through the opening up of its data and profiles, a process we sometimes call Twitterification.
While this year has been its biggest year yet, it has endured multiple controversies, attacked multiple threats, and become even more engrained in world culture. It has even helped spark several multi-million dollar industries. As we take a look at Facebook’s one-of-a-kind 2009, we get an even better picture of what to expect from the world’s largest social network in 2010.


Facebook’s Astronomical Growth


At the beginning of this year, Facebook was the #2 social network in the world, second to “the place for friends,” MySpaceMySpace. In December 2008, MySpace and Facebook were neck-and-neck with 59 million U.S. visitors each. Yet we already knew back then that this social networking hierarchy was about to change. By many estimates, Facebook was already bigger than MySpace internationally.





Facebook broke the big barrier in January, surpassing MySpace in U.S. traffic. Facebook grew to 68.5 million U.S. visitors, while MySpace actually lost 1 million people. As you can tell from the Compete graph above, this trend has only continued.
This isn’t even the most astounding aspect of Facebook’s growth. Its acquisition of new users has been unprecedented. On January 7th, 2009, Facebook announced that it had 150 million users, an impressive number to be sure. But this was the year Facebook went mainstream. No longer was it just college students joining the social network, but older users joined in droves.
It only took four months and a day for Facebook to reach 200 million users. Three months later, it suddenly boasted 250 million users. On September 15th, 2009, it broke the 300 million barrier, doubling its January user count.
At last count (December 2nd, 2009), there were 350 million users on Facebook, and it’s certain that the number’s only grown. With those 350 million users making over 45 million status updates every day and rising, Facebook has become a towering worldwide presence.

Facebook’s Twitterification


With this kind of unparalleled growth, Facebook should have been the social media story of 2009, right? But as we all know, that honor belongs to TwitterTwitter, whose quadruple-digit growthsurge of celebrity tweeters, and pivotal role in the #IranElection crisis all contributed to it becoming the focus of the world.
There’s no other conclusion we can come up with: Twitter’s quick ascention scared the hell out of Facebook. Its open platform and rapid user adoption threatened Facebook’s social media supremecy. It not only stole the company’s thunder, but in Facebook’s estimation, if it sat around and did nothing, Twitter would quickly become the central plexus for online communication — something it could not allow.
Thus the company implemented a shift in strategy. It began to adopt some of Twitter’s features while pushing for its users to be more public with their status updates and information. The first signs of twitterification surfaced when Facebook launched a new homepage design. It focused on the Facebook Publisher tool (to encourage more status updates and content creation) and a real-time homepage with the most recent activities of your friends.
When Facebook launched its Open Stream API though, we knew that it was serious about the Twitter threat. One of Twitter’s greatest strengths was its developer network and wide variety of apps that allowed you to access your Twitter account and its data in countless ways. The Open Stream API gave developers access to Facebook’s activity streams, opening up a new platform for the likes ofTweetDeckTweetDeck and SeesmicSeesmic.


Real-time search, launched in August 2009



The twitterification trend continued with a range of other new features in 2009: public content sharingand Facebook usernames launched in June, while real-time search and Facebook Lite emerged in August.
The company’s blockbuster move of 2009 though had to be its acquisition of FriendFeed, the social activity aggregator co-founded by Gmail creator Paul Buchheit. While the true fruits of that acquisition have yet to bear, Twitter was clearly part of the equation and part of why it took that talented team in-house.

Controversies


Facebook has had a history of attracting controversy. Early Facebook users likely remember the News Feed Revolt in 2006, where 10% of its users rebelled against the sudden implementation of the now-essential social networking feature (I remember it well). That streak continued into 2008 with Facebook Beacon and the Facebook redesign.
In 2009, the controversies didn’t let up. The first major incident of 2009 was the Facebook Terms of Service controversy. It changed the TOS without informing its users to language that gave Facebook the ability to use your content in any way it chose, even if you quit Facebook. Learning from its past mistakes,Facebook quickly responded, but it didn’t offer any resolution or apology, which only increased the firestorm of anger. A day later, Facebook relented: it reverted to its previous terms of service, admitting fault in an attempt to wipe the egg off of its face.
This controversy, while now just a memory, did initiate a major change within the Facebook system. It gave rise to the Facebook Democracy. Now when Facebook makes major changes to its governing documents, it gives users a chance to comment and vote on them before they take effect.
In July, the problems continued. A Canadian privacy commission declared that Facebook was breaching its privacy laws and the network was given 30 days to implement changes or be banned in Canada. In October, those changes were made.





Privacy concerns have only grown, though. This month, Facebook asked its users to update their privacy settings. While Facebook spun it as a simplification of its privacy protection features, others saw it as the company’s attempt to slyly make profile information public. Many experts have spoken out against Facebook’s tactics and privacy groups are calling for a federal investigation.
Growth seems to have its price. How these controversies play out, and what new ones will appear in 2010, is anybody’s guess.

What Will Facebook Do in 2010?


As we close the book on 2009, it’s time to look at Facebook’s potential plans for 2010. And let us say: they’re almost certainly going to be BIG.
With the market recovering and Facebook on the upswing, signs have been emerging that Facebook could file for IPO in 2010. It’s well-known that the company founded by Zuckerberg has been interested in an initial public offering for some time, and with Facebook’s 2010 revenueestimated to surpass $700 million, this may be the year.
To keep it on track for that big day though, Facebook will continue to fire off new features and leverage its best assets. Facebook Connect recently surpassed 60 million users, but we’re sure Facebook would love that number to grow. It also has had an interest in virtual currency, though it’s tough to say whether 2010 is the year Facebook makes that a priority.
Even with Twitter bursting onto the scene, 2009 was Facebook’s best year yet. And with no signs of slowing down, 2010 could shape up to be a milestone year for the world’s largest social network. Only time will tell.

Dec 29, 2009

What social media can do for your business?


There are still a number of business people, executives, owners and more, that have doubts about social media as a business driver. Part of that skepticism has to do with the fact the medium is quite new and participating in it requires a different approach from traditional marketing efforts. Part of it has to do with the fact that social media thinkers and advocates have never been very good at illustrating a definitive tie to business success through their medium of choice.
Business.com’s Social Media Best Practices: Question & Answer Forums report released two weeks ago talked about statistics around forums like LinkedIn Answers, Yahoo Answers and Business.com’s own Business.com Answers. The report had a hidden gem in it: The chart below which listed Social Media Success Metrics:

This might be the first quantified list of what social media can do for your business. It was taken from survey of over 1,400 individuals, 69 percent of whom work at business currently using social media and 59 percent of whom are business owners or C-Level executives.
If you run into someone who doubts what social media can do for business from now on, share this information with them. People just like them say it does the above.

How Dominos is Using Customer Feedback and Social Media Outreach to Reinvent Its Brand


Despite Dominos' negative experience with social media earlier this year, which involved the explosion of a YouTube video showing two employees doing repulsive things with Dominos ingredients, the brand is now embracing the channel to promote its brand with its new Pizza Turnaround campaign.
For a brand, one advantage of social media involvement is the opportunity to generate instant customer feedback.  Dominos' new strategy is a great example of a company using social media to listen to and react to its customers in order to solve a problem.
Let's take a look at what they're doing.



The Problem

Dominos has had the same pizza recipe since they launched 50 years ago, and while it finished first in pizza delivery and value according to a 2009 Brand Keys survey of national restaurant chains, it also finished dead last in consumers' taste preference.  With pizza deliveries down 6% compared to last year according to USA Today, Dominos knew it needed to make a change.

The Solution

Dominos' New PizzaDominos decided to completely change its pizza recipe, hoping to reinvent its brand and change its reputation for taste.  Based on two years of research involving customer taste tests of 50 blends of seasonings, 15 sauces and dozens of cheeses, Dominos launched its new recipe to customers yesterday, featuring a sweeter sauce, a newly seasoned crust and a different blend of cheeses.

The Strategy

To launch its "turnaround," Dominos has created a new website,www.pizzaturnaround.com, which features a new video documentary on YouTube (see above) that uses real Dominos employees to tell the story of how Dominos listened to its critics and is changing its pizza recipe for the better.  The site also includes a Twitter stream showing people's reactions to the new recipe (via the hashtag #newpizza).
Dominos is encouraging consumers to try the new pizza and offer feedback via social media like Twitter, Facebook and YouTube.  Perhaps an even bolder approach, the brand is also reaching out to food bloggers who have previously made negative comments about the pizza's taste, asking them to publicly review the new recipe.

What Dominos is Doing Right 

We can respect Dominos' campaign for a number of reasons.  For one thing, they're doing a great job of taking advantage of multiple social media channels (e.g. YouTube, Twitter, Facebook) to accomplish their goal.  Secondly, they're actually listening to what their customers are saying in order to improve their brand and their customers' experiences.  They're also being extremely transparent in their approach by asking their customers and critics to offer their feedback, whether positive or negative.
While it's too soon to tell if the company is benefiting financially from its new reinvention, Dominos' marketing approach is definitely admirable and unique.  In the very least, it's certainly generating some initial buzz and curiosity.
What do you think of Dominos' new campaign?  Has it tempted you to try the new recipe?

Dec 28, 2009

Internet Users Spend 13 Hours/Week Online



Adult internet users in the US are now spending an average of 13 hours a week online, and half of adult internet users have purchased something online in the last month, according tothe results from a recent poll from Harris Interactive.
Online Time Increases Over Years
The Harris Poll found that over the years the average number of hours spent online has increased from seven hours in 1999, 2000, 2001 and 2002, to between eight and nine hours in 2003, 2004, 2005 and 2006.
In 2007, weekly time online increased to 11 hours. Last year (in October after the financial crisis broke and before the presidential election) internet users were online for 14 hours per week, double the amount of time spent 1999 to 2002, the poll found.
harris-interactive-online-home-work-other-location-trends-1995-2009.jpg
Online Time a Factor of Age
Despite these high overall usage numbers, people’s usage still varies greatly, said Harris Interactive. The poll revealed that one in five (20%) adult internet users are online for only two hours or less a week while one in seven (14%) are spending 24 or more hours a week online.
Not surprisingly, the tendency to be online varies by age. The age groups that spend the most time online are those ages 30-39 (18 hours) and those aged 25-29 (17 hours) and 40-49 (17 hours):
harris-interactive-hours-spent-each-week-by-age-december-2009.jpg
Half Purchase Online

Half (50%) of all those online bought something on the internet in the last month. This includes 62% of those ages 30-39 and 56% of those ages 40-49.
harris-interactive-purchased-online-last-month-by-age-december-2009.jpg
184 Million Online
The number of adults online, now 184 million (80%), has not changed significantly since 2008 and 2007, noted Harris Interactive.  This includes those online at work, at home, at school or any other locations. However, the number of adults who are online at home has increased to 76% this year, and 75% last year, compared with 70% in 2006, and 66% in 2005.
harris-interactive-estimated-numbers-adults-online-us-millions-december-2009.jpg
Harris Interactive noted that the increase in the number of hours spent online in the last two years compared with all previous years is striking and likely reflects a growing ability to use the internet, an increase in sites and applications, increased TV watching online and increased purchasing online. Hours online also may have increased because of the recession, since going online is, in many cases, more economical than going out.
About the poll: This Harris Poll was conducted by telephone within the US July 7-12 and October 13-18, 2009 among 2,029 adults (ages 18+). Figures for age, sex, race/ethnicity, education, region, number of adults in the household, number of phone lines in the household were weighted where necessary to bring them into line with their actual proportions in the population.

400% Rise in Social Media Traffic due to Search Engines


Posted by Marshall Sponder on December 26, 2009


It’s Google that’s driving Social Media searches way, way, up – see my last post on 400% Rise in Social Media Searches in 2009 Y2Y – what does it mean?


Note: Just want to point out this “hunch” of mine about Google driving Social Media searches and traffic needs a more “deep dive” analysis to confirm.   My “hunch” is, I’m right – and if you look at the entire history of what’s happened this year with Social Media, Google, Bing and Yahoo! have their hands all over it …. especially the latter part of this year  – that confirms my “hunch”.
Still, as a Web Analyst – I feel a responsibility to confirm my hunch with real data beyond what I’ve shown.  Had I access to Comscore – I might have an easier time of it – the real data I need is not that easy to get a hold of …. I suspect, if I had it …. it would more or less, confirm what I believe, which is  … it’s the deals that Twitter and Facebook have done with Google that are driving up Social Media and will continue to accelerate in 2010.


I think it’s about Google and Real Time Search – the inclusion of updates from Twitter and Facebook are the main drivers – but the overall direction is for a full integration between Search Engines and Social Media next year.





Very interesting recap of developments in Social Media this year from WebProNews which tie into the 400% increase in searches and activity on Social Media in the second half of 2009.
Google’s  inclusion of real time data from Twitter and now Facebook – is beginning to deliver the “promised land” and  made Social Media the “mecca” the “goldmine” that it is … it’s Google, as I predicted long ago – would bring Social Media, via Search, into it’s own – it’s Google and the Search Engines that will make 2010 the year of Social Media ROI and the beginning of the Convergence.
While the buildup has been gradual, according th the Google Insights for Search chart – the real action started happening in July 09 and has been building up momentum ever since.

Google Insights for Search
Gadgets powered by Google


Here’s what happened according to WebProNews – What’s Happened in Social Media Over the Year and I’ll bold the parts I think are the most significant.
July
In July, Google launched its Facebook page, MySpace launched its email service, and LinkedIn introduced custom profiles for companies. YouTube launched its 3D experimentdoubled the size limit of uploads, and gave users the ability to share YouTube Insights stats.
A Twitter documentary was announced, and Twitter itself gave businesses a new resource and started making hashtags link. Facebook addressed privacy and photo use for ads, gave businesses a way to increase their Facebook fans, and added the ability to create events from the publisher.
August
In August, Facebook was readying a new ads manager, made subtle changes to its design, announced plans for privacy improvement, started integrating directly with Twitter, launched its own real-time search, implemented restrictions on sponsored status updates, updated open stream APIsacquired FriendFeed, and began letting developers sell physical merchandise for virtual currency.
Twitter quietly took a step toward security, and announced plans to launch a feature that makes the service location-aware. Izea launched “Sponsored Tweets,” andTweetmeme brought analytics to retweeting.
Google reader got more social features, YouTube placed more emphasis on search and launched its own AdSense-like promoted videosDelicious showed off new features forsharingsearch, and its homepage. StumbleUpon made some big changes to its toolbar.
September
In September, Google turned the whole web into an exclusive social network with SideWiki. Yahoo launched a new contacts API, Yahoo profiles became social media profiles, and the company launched the Twitter-like Yahoo Meme in English. Microsoft added MySpace activity updates to Windows Live, and Bing announced it was readying sharing features for search results.
sick poll was discovered on and removed from Facebook, and Facebook announced its translation plans, and that it had roughly the same amount of people as the entire U.S. population. Facebook also added tagging from status updates, and launched Facebook Lite in the U.S. and India.
MySpace Music launched in Australia, and Myspace users started being able to sync updates with Twitter. LinkedIn made profile organization easier, a record label was launched for YouTube stars, and YouTube began readying a friend-finder feature.
Pizza Hut and other brands used Twitter to help feed the hungry, Digg made changes to its nofollow policy, the Washington Post’s leaked social media policy faced criticism, and real-time search engines Collecta and OneRiot launched APIs.
October
In October, Bing scored deals with Twitter and Facebook, while Google scored one with Twitter. Mozilla shared its plans for integrating social media and email into one inbox, and Twitter partnered with its first charity. LinkedIn announced that it surpassed 50 million users.
MySpace introduced new music features, StumbleUpon launched a new design with more of a search focus, YouTube got real-time search for comments, and the only known video footage of Anne Frank appeared on YouTube.
Facebook confirmed testing of a new design, made share buttons more usefulgave groups walls, tried harder to get page owners to verify, and presented new obstacles for application developers. They also launched the Create Application API.
November
In November, Google eased the retrieval of SideWiki entries for entire sites, Google Wave got a feature for following, and Google launched some new features for Google Friend Connect.
Facebook tested new design changes, and continued work on privacychanges. Facebook and Twitter both made their way into dictionariesand onto video game consoles.  Twitter made geotagging tweets possible, and talked about plans which would make its suggested usres list more like Twellow’s. Twitter also changed launched Twitter Lists, gave apps access to people search, rolled out the controversial retweet feature, and changed “What are you doing?” to“What’s Happening?”.
LinkedIn opened up its platform to developers, Yahoo began showing tweets for news results, MySpace launched new music charts, Salesforce announced its “Facebook for the enterprise,” YouTube connected news outlets with citizen reporters, PayPal launched new APIs to take over mobile and social apps, Microsoft launched a big redesign of MSN, Opera launched Opera UniteDigg launched Digg Trends.

December

In December, Google, Facebook, and YouTube all got new URL shorteners. Twitter continued expansion into new languages, and announced plans for business features. Google launched real-time search in the search results.
LinkedIn began testing a new design, and launched faceted search, Facebook began giving translators awards, adjusted privacy controls, and formed a board for online safety, MySpace launched new APIsupgraded users’ mobile experience, and acquired iMeem, Bing launchednew maps with apps, and Yahoo deepened its integration with Facebook. Digg released a new version of its API. Also, the new FTC guidelines went into effect.
It’s mostly Google – Google has been merging the Social Web with Organic Search and now….



Compete.com Destination Traffic from Google.com, November 09

…. Social Media goes mainstream in 2010 – it’s said to be the year of Social Media ROI, so many say ….. I think if we’re not there by years end 2010, we’ll be much closer to it  – you can see the acceleration.
I’m developing a deck around this – but felt I didn’t want to wait to share the news – and perhaps, get insight from my readers that I can use  (I don’t get the whole picture – but I don’t know anyone who does – but, maybe, together – we can make sense of all of this).


Read more: http://www.webmetricsguru.com/archives/2009/12/400-rise-in-social-media-traffic-due-to-search-engines-google/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+WebMetricsGuru+%28WebMetricsGuru%29&utm_content=Google+Reader#ixzz0ax7XFekV
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