DealBook Blog: MySpace and the Facebook Factor
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The price tag for Facebook, the second-largest social-networking Web site, just keeps rising. But what does that mean for MySpace, which is the No. 1? Microsoft and others are said to be considering a minority investment in Facebook that would value the three-year-old company at more than $10 billion. At least one analyst, Vijay Jayant of [...].
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NEW YORK -- A Web site that enables its users to store photos and video for inclusion in MySpace profiles will become a part of the popular online hangout.
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Belatedly recognizing the importance of social networking as an online service and advertising vehicle, Google this week will unleash its strongest response yet to the rising threat and skyrocketing popularity of MySpace and Facebook.On Thursday, Google will announce OpenSocial, an initiative with a set of APIs (application programming interfaces) at its core that is designed &quot;to spread social applications across the Web,&quot; the company said.These common APIs have been designed to let developers create social networking applications that will run on multiple Web sites, simplifying the making and distribution of these programs.Partners supporting OpenSocial include various well-known software developers and social networking sites: Oracle, Salesforce.com, Hi5, iLike, LinkedIn, Slide, Ning, Friendster, and Plaxo. Neither Facebook nor MySpace is on the list of partners at press time.The move is also no doubt intended to dilute the massive&#160;success Facebook has had in attracting external developers&#160;since it opened up its Web site platform to third-party applications in May.About 7,000 such applications have been built for Facebook so far, helping to make the social networking site more attractive to people and thus boosting its usage.&#160;MySpace recently announced it would follow Facebook&#39;s example.By allowing developers to write an application once and have it work in multiple social networking sites, the OpenSocial initiative could, in theory, water down the appeal of Facebook&#39;s ballooning applications catalogue.Once considered a fad of interest mostly to teens and young adults, social networks have significantly broadened their demographic appeal, attracting many people in their 30s, 40s, 50s and beyond.Along the way, social networking sites have been created for other purposes beyond entertainment and staying in touch with friends. For example, there are social networks tailored for specific occupations, such as doctors, and interests, such as sports.Google has had a social networking site named Orkut for several years, but it doesn&#39;t seem to have merited much attention from the company until recently, and only after the popularity and potential of this type of site became evident.Google was reportedly locked in a battle with Microsoft&#160;over which one would be chosen by Facebook to buy a stake in the social networking company and earn a deal to provide advertising to it.Microsoft eventually won, buying a 1.6 percent stake that values Facebook at an eye-popping $15 billion, although the social networking company reportedly will have revenue of just $150 million this year.With about 300 employees now, Facebook expects to have about 700 a year from now, its CEO and co-founder Mark Zuckerberg recently said. About 250,000 new users register every day at Facebook, which was founded in 2004.In June, MySpace had 114.1 million unique visitors worldwide, ranking first among social networking sites, followed by Facebook with 52.2 million, according to comScore. Hi5 ranked third with 28.2 million, while Friendster was fourth with 24.7 million. Orkut rounded out the top 5 with 24.1 million.More information about OpenSocial and resources for developers will be available in this Web site later this week. There will also be a developer sandbox.
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Today's announcement from Facebook is the reason why Google announced OpenSocial last week. They must have gotten a leak from one of the companies that stood with Facebook, so they knew what was coming. They weren't scared of Facebook's technology, because they didn't respond with technology. They were scared because Facebook has a better advertising story than Google does. They are getting ready to offer some very premium web real estate that (pay attention now) Google can't compete with. And advertising is Google's bread and butter, advertising is to Google as operating systems are to Microsoft. They can't let somebody appear to be better than they are in advertising. Yet that's what Facebook is, better than Google in advertising. Here's what Facebook can do.  Let's say I bought a Wii and I like it. They can tell all my friends "Dave bought a Wii and he likes it." That's a lot more likely to result in a sale  than an intrusive ad like this one, that was displayed next to an email I sent to some friends about their New Networked Living Room. Google thinks I might want to buy Moroccan Lamps, or something called a Unique Shabby Chic (huh?) or Crate & Barrell bedroom furniture. Of course I tune that shit out, I don't even see it. It has zero impact.   Anyway, I was talking with Doc Searls a few minutes ago and he mentioned OpenSocial and I told him it was just a lot of noise meant to distract people from what Facebook was doing in advertising. He hadn't heard anything about it even though he was at a tech conference in Denver today and yesterday. I said there you go, Google's strategy worked. But to no effect, longterm, because Facebook has the momentum and Google, try as hard as they want to stop it, will not be able to, any more than Alta Vista or Infoseek were able to stop Google once they figured out that their lunch was eaten. Google will be around for a long time, I'm not saying they will go away, but Facebook will be around too. And Google will have a hard time catching up to them.  Long-term, however they both have problems because advertising is on its way to being obsolete. Facebook is just another step along the path. Advertising will get more and more targeted until it disappears, because perfectly targeted advertising is just information. And that's good!  8/3/06: "Information is welcome, advertising is offensive."
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Seeking new subscribers, Match.com is testing a Facebook app, considering a hookup with MySpace.
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(InfoWorld) - Microsoft has approached FacebookÂ in recent weeks proposing an investment that would give Microsoft a stake of up to 5 percent in the popular social-networking company, The Wall Street Journal reported Monday. With Microsoft willing to invest between $300 million and $500 million, the deal would value Facebook at $10 billion or more, the Journal reported, quoting anonymous sources. Google has also expressed an interest in acquiring a Facebook stake recently, according to the Journal. Thus, Microsoft could find itself competing for Facebook's attention with Google. However, Facebook's discussions with Google and Microsoft are in the early stages and could end up with no agreement with either suitor, according to the Journal. IDG News Service's requests for comment from Facebook, Microsoft, and Google weren't immediately answered. Founded in February 2004, Facebook is one of the world's most popular social-networking sites with about 42 million active users. Facebook has been growing strongly in the past 12 months. In December, it had about 12 million active users. The site initially only admitted students, but last September it lifted that restriction. In May of this year, itÂ opened up to third-party developersÂ to create applications for the site, which has also added to its popularity with users. Along the way, it has caught the attention of big Internet playersÂ such asÂ Microsoft, Google, and Yahoo. The latter reportedly tried to buy Facebook last year for $1 billion. Facebook's attractiveness is that it builds very strong and deep relationships with its users.Â More thanÂ half of its active members return to the site daily, and Facebook knows a lot about them, thanks to all the personal information people disclose on their site profiles and interactions with other members. This, in turn, offers a desirable audience to advertisers and to ad sellers and distributorsÂ such asÂ Google, Microsoft, and Yahoo. A little more than a year ago,Â Facebook chose Microsoft to display banner adsÂ on the site. Facebook would be interested in using the cash raised from selling a stake for buying other companies, increasing its staff of about 300, and beefing up its technical infrastructure, the Journal reported. Facebook is also weighing the option of raising funds from financial investors, the Journal said.
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Blog: As rumored, the two companies have been acquired--not by MySpace, but by the social network
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Investor's Business Daily - Three years ago, some dismissed social networking Web sites as a fad, a place where the geek-minded could fluff their personality on a Web page.
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Investor's Business Daily - Recent data suggest the game is over in the Web-based social networking field, but that isn&#39;t stopping new new players from joining in.
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In March 2002, I made a bet with Martin Nisenholtz about the relative importance of weblogs and the New York Times. I was and am a blogger, and Martin worked then, as he does now, for the Times. For the actual terms of the bet, read the piece on the LongNow site, and a story I wrote to announce the bet. A few comments.  1. It seems now is the time to decide who won the bet, if either of us did. 2. The world that I hoped would come about did not. While blogs have broken many stories, they have not, in general, turned into the authoritative sources I hoped they would in 2002. When the blogosphere resembles journalism it's often the tabloid kind.  3. I wouldn't mind losing the bet. That is, I wouldn't mind if the Times fully embraced the web, and I suspect Martin wouldn't mind if blogs rose to the quality of the Times. 4. If the bet had been held a year later, it seems there would be a pretty good chance that Martin would have won the bet because they recently took down the firewall at the Times, allowing search engines to index the full content. In the past, articles would remain visible for a couple of weeks then you'd have to pay money to access them. I believe they have a special deal with Google and other crawlers that allow them to get past the membership wall. For most of 2007 the Times articles were behind the firewall, and were less likely to be pointed to (which is how they rise in rank at Google). 5. It certainly is fun to speculate, but the decision about who won belongs exclusively to the Long Now Foundation. They have to decide who determines what the top stories of 2007 are, and imho they should consult with search experts to determine how to do the queries. Apparently it makes a difference how you do it.  But ultimately it's their decision. 6. Whether Wikipedia has more or less results seems to be a sidebar to the bet, which only talks about blogs and the Times. 7. Another interesting sidebar is rich media. In 2002, before podcasting had taken hold, before YouTube existed, it would have been hard to forsee the story of the South Carolina beauty queen, or the Don't Tase Me Bro guy. Questions about the future are always framed in the context of the past. Did the question Martin and I asked have any value in 2007, or did it just say something about the world of 2002?   Update: Paul Boutin who arranged the bet, apparently in conjunction with Google (I didn't know this) in 2002, weighs in.
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TechMeme really likes Friday evening's Monkey piece, it's been #1 for almost 24 hours. Even if people still use the Social Graph term, it may have done some good by asking the question -- what's the difference between a network and a graph? In math there is no difference, a network is a graph and vice versa.  I got one thing wrong, apparently the term came from Facebook, presumably as a way of separating what they do from their predecessors.  Dan Farber reported in May. "Zuckerberg describes the Facebook core function that the new third-party applications can tap into as a 'social graph,' the network of connections and relationships between people on the service." Google Trends comparison of "social network" vs "social graph." Fred Wilson posted a comment pointing to a post where he wondered what the graph thing was all about. His post was one that inspired me to write my piece. Buzzwords and phrases are useful if they describe something new. For example, I remember when platform was new, but I didn&#185;t object to it, because it explained a concept that we needed a word for. Today it's still much in use, and there's little or no confusion about what it means. I was doing audio blog posts before we had the term podcast, and I totally got behind it because we needed a word for what we were doing. But social graph is not needed, it makes something simple sound complicated, and we totally need it to sound simple if the problems are going to get solved. They&#185;re not trivial problems, they&#185;ve been there since the Internet outgrew academia and started being used for commercial purposes. Another problem with new names for old things is that it tends to push aside the pioneers and makes it sound like newcomers are not also-rans. Fred had a reasonable gripe as a backer of Wasabe when Mint started getting credit for being a first mover. At least they didn&#185;t have the chutzpah to try to make it a trend and give it a buzzword.  Someone is being pushed aside with the term &#179;social graph&#178; likely some competitors of Facebook like MySpace and LinkedIn, and some pioneers are going to lose credit for their innovation if it takes root. It may still take root, but I felt I had to say something. BTW, the title of the post contains a grammatic error because I changed the title to monkey from something else and didn't look carefully at the resulting title.
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By ANICK JESDANUN, THE ASSOCIATED PRESS  NEW YORK  The operators of the online hangout Facebook wanted to help users save time by highlighting changes their friends make to their personal profile pages.
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MySpace takes personal profile-advertising matchmaking program for a walk.
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By THE WASHINGTON POST  Does the name evoke MySpace.com? That's a calculated strategy, right down to the instant messaging, user profile data and thumbnail photos.
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Need a contact to score a big deal? Social-networking firms say their software can find a corporate friend
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MySpace.com will soon enable members of the popular online social networking hub to sell downloads of their original music directly through MySpace Web pages, company executives said Friday.
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With Facebook slowly creeping up on MySpace, is there room for two social networking sites?