What made Facebook a crazy success was that college kids had
a place to hang out virtually, free of adult supervision. It played right into
endless connectivity, a trend that began with Gen Y using e-mail, instant
messaging and Napster. Shared experiences, 24/7. Eventually, their parents,
little brothers and sisters and even grandma and grandpa joined the party.
Now, Mark Zuckerberg has gone and spoiled all the fun by
taking his billion-member social network public on the NASDAQ stock exchange.
The reportedly greedy guru may have cashed out, because now he’s taken his cool
idea corporate.
Ironically, when Zuckerberg and his partners first launched
Facebook, while at Harvard University, he adamantly opposed the idea of selling
advertising to monetize the burgeoning social media experiment. He didn’t want to
prostitute the “coolness” of the concept until it became more viable. It was an
online global village that belonged exclusively to college students.
But as the number of Facebook members grew to astronomical
proportions, comparable to half the population of China, the urge to
cannibalize it became too great. Now, you get to see ads next to photos of your
friends and what they’re eating for lunch. Zuckerberg had built a village
square for people and groups to gather for free. Now he sells electronic billboards
around the perimeter and fills the air above with blimps and skywriters.
General Motors announced this week that it’s dropping Facebook
ads, because the carmaker believes they’re ineffective. This went down as
Facebook launched its IPO and later kicked off trading. But GM still says
brands can build relationships through social media. It’s just that the ads
don’t measure up. They’ve tasted the milk for free and don’t think it’s worth
paying for.
I wonder if Zuckerberg’s future plans for generating profits
will include a premium paid model. We’ll call it Facebook 3D. It could offer
special features like chat rooms with celebrities and virtual backstage passes
to concerts or events. Don’t laugh. LinkedIn and IMDb both have professional
grade versions that you can access only if you buy a monthly subscription.
My sense is, people desire a commercial-free environment for
the social lives. We always tolerated ads with free TV and radio. It was a
small price to pay for all that programming. But the more we pay for cable and
Internet access, the less it seems we should have to endure an endless stream
of marketing.
Don’t get me wrong. Ads are very appropriate on the Web. For
example, Google provides an amazing service free of charge. Type in a word or
phrase and miraculously you receive hundreds and even thousands of related links,
articles, images, videos and news stories. You name it. Anyone who is old
enough to have done library research the old fashioned way and cranked through
miles of microfilm should shed a tear every time Google spits out a list of links in seconds. The ads
are a small price to pay for all that free knowledge. In fact, the ads are
often exactly what we want to discover.
But there’s something particularly eerie about targeted ads
showing up next to a photo of your little nephew’s birthday party. Or a
snapshot at your brother’s wedding. We’ve reached the point where reality TV has
become viewers broadcasting themselves and corporations selling that content
without sharing the profits with the creators. Sounds kind of like what pimps do,
doesn’t it?
Enter Dish Network and The Hopper. The satellite TV provider
now offers a digital video recorder (DVR) that will automatically zap the
commercials so you don't have to watch them during playback. Only seems
appropriate since we all pony up so much for cable and satellite and still have
to buy Web access. The networks are screaming about the editing technology.
Zuckerberg and his team will be under intense pressure
to show a profit right away, since he’s got lots of investors now. Facebook may be
tempted to snoop your posts and pics and offer ads that connect to your life.
You post a photo of your new Chevy Camaro and Facebook ads for State Farm and
Shell gasoline pop up. Maybe even a promo for a local detail shop and Auto
Zone. How’s that sound?
The quickest way for Zuckergberg to raise profits is to sell
a portion of his mammoth membership a subscription to Facebook on steroids.
Let’s say, only 10% of current members buy in at 50 cents a month or five
dollars a year for premium access. That would be 500 million bucks without
selling a single ad. Ten bucks a year or about three cents a day is a billion
dollars, and so on.
And the paid, premium version of Facebook could offer an ad-free
environment, just like when the social network started.
Then Zuckerberg could charge corporations like GM big bucks
to join as members and post their status. That’s what Facebook should sell, not your private life.
While Facebook may be "selling out" to the Corporatocracy, as you put it, I feel Dish is moving in the opposite direction. In what may be considered an absolute affront to corporate Advertising authority, the Auto-hop skips the Ads altogether. It doesn't block or delete them, but hides them for those who have weird commercial needs and want to view all their ads later (really?). It also isn't that big of a deal (directed at you, Ad execs), as it is only offered on certain RECORDED programs watched the DAY AFTER they are recorded. And, as we live in an instant-gratification, constantly-updated world, isn't the "day after" WAY outdated? LOL!! A Dish coworker got me interested in the Hopper, and the Auto-hop makes it possible to watch all my recorded shows in half the time. Plus, I don't have to constantly fast forward through the commercials, as I was doing before. See that, FOX, NBC etc.? I was already fast forwarding through your ads in the first place. Well done Dish, keep it coming!
ReplyDeleteHi, erock- Great comments. Dish is giving its customers what they deserve for their money ... freedom to choose what they want. As much as viewers pay for cable/satellite and Web access, why should we have to put up with advertising? The media is going to be forced to think of ads in a new way soon. Tell me something I don't know or entertain me in a way that I'll be happy to watch your commercial, listen to your message or read your ad.
DeleteGreat article Chris, I am going to try and publish this in our Sunday paper.
ReplyDeleteThanks, Austen! Glad you enjoyed the piece. My neighbor just handed me my blog in print in the Dearborn P&G. We were chatting at the fence in the backyard. Does that qualify as sharing via a social network? : )
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