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Social Network Service
Prepared by Wesley ShuPh.D. University of Arizona
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Table of Content
Importance of SNS (Social Network Service)TiesSwarm IntelligenceFacebookSNS for Business – GroundswelliPodWeb2
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IMPORTANCE OF SNS
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Importance of SNS
Problem of MarketingGatekeeper
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Importance of Social Networking
Microsoft invests $240 million in FacebookThe software maker wins in bidding war with Google, buys 1.6 percent shareCompany value $15 Billion!
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Marketing
John Wanamaker, father of modern advertising, “Half the money I spend on advertising is wasted; the trouble is I don't know which half.”Over-delivery, no distinct audience
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Marketing Problems in China
King of the Bidders at CCTV ( 央視標王 ): 2010 Chinese New Year Eve: Mengniu, RMB340M (US$50M) (2009.11.19)CCTV income in a day: RMB10.9B (US$2.8B), Last year, RMB9.2B (US$1.35B)
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Marketing Problems in China
To cover first-tier cities, advertisement expense > US$6MTo cover second-tier cities, another US$3MTo cover 30 cities, at least US$12M
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Marketing Problems in China
Marketing companies may not be professional enoughPublic data are not reliable.
亂槍打鳥,浪擲千金
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Marketing
Viral marketing“Facebook” Marketing
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Gatekeeper
See Gatekeeper file – Small WorldIts operation relies on Six Degree of Separation
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Six Degree of SeparationExperiment by Microsoft
By studying billions of electronic messages, they worked out that any two strangers are, on average, distanced by precisely 6.6 degrees of separation.Researchers at Microsoft studied records of 30 billion electronic conversations among 180 million people in various countries, according to the Washington Post.
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Six Degree of SeparationExperiment by Microsoft
The database covered all the Microsoft Messenger instant-messaging network in June 2006, equivalent to roughly half the world's instant-messaging traffic at that time.
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Six Degree of SeparationExperiment by Microsoft
Eric Horvitz and fellow researcher Jure Leskovec considered two people to be acquaintances if they had sent one another a message. They looked at the minimum chain lengths it would take to connect 180 million different pairs of users in the database.
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Six Degree of SeparationExperiment by Microsoft
They found that the average length was 6.6 hops.That may reduce to degree of one: Barack Obama already has well over a million Facebook friends.
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Six Degree of Separation
Return
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TIES
The strength of a tie is a combination of the amount of time, the emotional intensity, the intimacy (mutual confiding), and the reciprocal services which characterize the tie.
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Strong Tie and Weak Tie
SNS: Integrate and connect PEOPLE.But Facebook and MySpace or LinkedIn are different.
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Strong Tie and Weak Tie
People’s relationships are ripple-style – from strong ties to absent ties.Strong tie – the circle where people and I have regular and essential exchange of information, ideas, thoughts, personal items, etc., usually once a week.
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Strong Tie and Weak Tie
Problem of Strong TiesRedundant informationOverlapping relationshipsHomogeneityNo “Neurite,” no gatekeeper
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Strong Tie and Weak Tie
Weak Ties are the circles where people and I are related but do not have deep relationships. Quantitatively speaking, people in a weak tie with me contact me at most once every other week, but at least once a year.
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Strong Tie and Weak Tie
Potential Ties are the circles where people and I are barely related. Quantitatively speaking, people in a potential tie with me contact me at most once a year.
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Ties as Bridges
or potential ties
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Ties as Bridges
or potential ties
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Ties as Bridges
Without the weak tie, AB and CD are disconnectedWith the weak tie BC, AB, AC, AC, and BD are all connectedAB and CD are two heterogonous groups! If B and C has strong tie, they all are in a homogeneous group.
A
BC
D
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Strong Tie and Weak Tie
In 1973, Granovetter from Johns Hopkins found:Among those who found a new job through contacts, 16.7% reported that they saw their contact often at the time, 55.6% said occasionally, and 27.8% rarely (N = 54).
Mark S. Granovetter, “The Strength of Weak Ties,” American Journal of Sociology, Volume 78, Issue 6 (May, 1973), 1360-1380.
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Strong Tie and Weak Tie
“Often when I asked respondents whether a friend had told them about their current job, they said, ‘Not a friend, an acquaintance.’”The effectiveness of viral marketing relies on ‘weak ties.’
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SWARM INTELLIGENCE
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Swarm IntelligenceWhy ants can always find the shortest routes to find food?
Eric Bonabeau and Christopher Meyer, “Swarm Intelligence,” Harvard Business Review, May 2001.
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Swarm Intelligence
Pheromone – repeat more on a shorter routeMore pheromone attracts more ants; and more pheromoneWhen food is consumed up, fewer ants returned, and pheromone evaporates faster, so fewer ants take that route.
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Swarm Intelligence
In the ubiquitous Internet, such self-adaptability and self-organization should be the market feature:Invisible handAmbient awareness (周覺 ) in this complex system (e.g., News Feed)
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Return
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FACEBOOK MARKETING PRINCIPLES
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Marketing in Strong And Weak Ties
The effect of a marketing campaign on a strong tie cannot spur. The effect of a marketing campaign without considering ‘ties’ can be wasteful.Marketing with ties! – more aggressive than affiliate marketing
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Marketing in Strong And Weak Ties
Affiliate marketing either is not contextual (targeted) marketing, or is seller-based contextual.Facebook marketing is customer-based contextual.
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Marketing in Strong And Weak Ties
Affiliate marketing does not construct a networkFacebook marketing couples with social networks from strong ties to absent ties.
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Marketing in Strong And Weak Ties
Affiliate marketing does not create or collect informationFacebook marketing creates your own information systems, databases, and networks.
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Marketing in Strong And Weak Ties
Information from FacebookThe strength of ties between two people.The category, attributes, interests… of a personVast database
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Marketing in Strong And Weak TiesInformation from Facebook
In the Facebook era, you are the center of the (your) world.
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People help you collect data
吾生也有涯,而知也無涯。以有涯隨無涯,殆已There is a limit to our life, but to knowledge there is no limit. With what is limited to pursue after what is unlimited is a perilous thing.
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Marketing in Strong And Weak Ties
Orderlessly orderly – survival kit in a jungleArchitecture of participationWhat’s more – Platform as a Service!
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Facebook As “Gatekeeper”
Facebook can be an organization’s gatekeeper.Through Facebook, you are forming gatekeepers, not ‘guanxi.’
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Gatekeeping and GuanxiGatekeeping
Open businessSpur innovationTransparent
GuanxiClosed circleInnovation makes guanxi less usefulBetter hide everything from outsiders
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Facebook As Weak Tie
Facebook build better weak tieWeak tie is the missing piece of marketing
Most advertisements either focused on strong ties or potential tiesMulti-level marketing on weak tie
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Facebook Company Case
Serena SoftwareSerena Software uses Facebook as their Intranet and allows employees to use Facebook freely on Friday afternoon.Saving money, since the vast majority of its 800 employees work outside of its headquarters.Serving as neurites/gatekeepers – one-to-one marketing
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Facebook Company Case
I will NOT be participating in any Recession
Affinity GroupMIT Initiative on Technology and Self
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HOMEWORK