Third Wave of Social Networking

Third Wave of Social Networking

social networks wave has not crested yet
Marshall Sponder September 3, 2007 

Riding the social networks wave in mentioned the Social  Network Wave has not created yet, and I believe that’s true.

"….some of us learned at Fortune’s recent iMeme conference in San Francisco, Yahoo (Charts, Fortune 500) and Microsoft (Charts, Fortune 500)
cannot be ignored. Yahoo executives there were saying that Yahoo Mail
and Hotmail both have the rudiments of a profound social network. Each
has hundreds of millions of members, and each company has access to
information that could be used to construct the kindof "social graph"
of friend relationships which is at the heart of MySpace or Facebook.
That key data is in each e-mail user’s sent mail records. The people
you send e-mail to are pretty much the people you know. That’s one
reason why both MySpace and Facebook allow you to mine your e-mail
contact lists to create additional friends in their services. But the
sent mail information is even richer with friendship insight than any
contact list. "

So the next stage of Social
Networking may be transforming services like web mail into Social
Networks.  In fact, Gary Stein wrote about Advertising on Social Networks: The Third Wave earlier
this summer about how advertising on Social Networks will triple over
the next few years (I think it will more than triple):

spending on social networking is a boom industry. It’s set to grow, in
the U.S. alone, from $900 million this year to $2.5 billion
by 2011. That’s pretty steep growth. Clearly, the explosion of all
these sites creates a whole new crop of inventory for us advertisers to
fill up with banners, buttons, and blinking lights."

The article on ClickZ talks about two new ad models, for developers and for placement:

"…one new ad model and one new ad opportunity."

The new applications built on the social networks can have regular,
everyday ad space built into them. This may be the way a developer
decides to make money from her photo application. Clearly, though, it’s
just new inventory."

"….This third wave will have more to do
with building functionality on top of the network, as opposed to
placing ads inside it. The opportunity to more deeply integrate the
brand with the experience has always been a drive for online
advertisers. Since the early days of the Web, we’ve tried to get away
from the notion of placing ads. In fact, all that language ("insertion
order," for example) are holdovers from offline."

It’s also a good time for me to be director of the Social Media Committee of the Web Analytics Association, where we are working on defining what to measure and how it could be measured in Social Media and Social Networks.

Scenic Napa

And, BTW, if anyone is going to be in Napa Valley for the XChange Conference ,
come by and say hello to me or sign up (because you’ll hear all about
Social Network Measurement and growth plus Second Life Metrics and Web
Analytics from me).


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