Commentary

Putting Your Best Face Forward

"Nothing influences a person more than a recommendation from a trusted friend."

Sound familiar? No, it's not from 1999's "Cluetrain Manifesto." It's one of many comments recently made by Facebook CEO Mark Zuckerberg regarding the influential power of social connections online.

Of course, given the recent turn of events, Zuckerberg's comment may not have resonated as well as he would have hoped. Facebook's Beacon--a controversial feature that follows its users as they make online purchases and updates their friends on those purchases--has been blasted by Facebook members and privacy advocates alike.

Despite reports that 100,000 advertiser pages went up the night after the system was unveiled, Facebook issued its mea culpa to members, apologizing for not responding to their outcry sooner, and promising an easier way to disable the feature.

It is widely believed that social networks like Facebook and rival MySpace represent a silver bullet for marketers--and at first glance, this all makes sense. In one captive spot, you have millions of consumers providing an unprecedented level of transparency into their hearts and minds, all woven together by personal connections.

But will social networks truly prove to be a marketer's paradise?

Advertisers, in particular, are desperate for new inventory and business models to deliver the ultimate performance. Yet, whether you're looking to advertise within a traditional media or an edgy Web 2.0 context, two primary considerations remain. You must understand (1) where and how online media (new, old, social or otherwise) influence the purchasing behavior of today's Web surfers, and (2) the relevance of ads within a specific environment.

Let's consider the Facebook effect as it relates to these considerations. Now, it's absolutely correct to say that recommendations from friends influence our buying behavior. Yet, this is not the case for every product or service. I might take a friend's recommendation on which new sushi place to try, but do I send an alert to my Facebook friends to elicit opinions on the battery life of the iPhone versus the BlackBerry? Maybe not. What I'm getting at here is credibility and expertise--two key elements that contribute to influencing someone's purchase decision.

Consider Oprah Winfrey's credibility and perceived expertise when it comes to recommending books. One mention from Oprah will take a book from complete obscurity to the bestseller list. But how many people can actually count Oprah as a "friend," virtual or otherwise?

Of course, regardless of how credible the source is, a person can only be influenced if he or she is ready and willing. And the question remains: Is consumers' intent on Facebook inherently at odds with their willingness to be influenced by an ad? At the heart of the issue is the intent and psychology of social network users, and the simple fact that their priorities may be diametrically opposed to those of marketers.

Therein lie the vulnerabilities in the social graph paradigm. The assumption that a person is ready to be influenced by a marketing message--by a Facebook "friend" or otherwise--in a social networking context has yet to be fully demonstrated. And even if a social networker is open to an ad, the assumption that a person's profile preferences can dictate an ad-targeting strategy is also unproven. People create profiles for many reasons: to make new personal connections, scare up new business, for pure entertainment purposes--not to offer advertisers a road map of their buying behavior.

So, where does this leave marketers?

First, remember that influence is multi-dimensional. Sure, personal relationships are one component. However, when assessing new advertising opportunities within social networks, blogs and other forms of user-generated content, marketers must also consider relevance, credibility, existing consumer behavior and other issues, including consumer privacy concerns.

Second, popularity does not equal influence. Social networks are popular, but does having a lot of Facebook friends make me influential? With 3.5 billion brand-related conversations happening across the Web every day, it remains unclear whether the most influential conversations are happening within the walls of social networks--or elsewhere. Millions and millions of Americans consume blogs, and according to a 2007 Synovate survey, 65% are doing so explicitly to get someone else's opinion. This audience is largely untapped--and they are ready for the right message, at the right time.

So, before jumping the gun with a social networking ad strategy, think long and hard about how and where your target customers are influenced online. Social networks no doubt offer exciting promise, and the market is still young. Still, for marketers looking to navigate the tricky social media waters, understanding influence is the key to putting your best face forward.

Rob Crumpler is co-founder, president, and CEO of BuzzLogic.

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