February 5, 2008 30 Comments

Facebook and the Social Graph- Who Benefits

Sometimes it takes a while for something to sink in. Today, one of those things finally hit me. Facebook asks me for all kinds of information on how I know the people I accept as friends, but I realized that I get nothing out of the exchange, and that Facebook and potential advertisers get tons of gain.

Populating the social graph for Facebook is essentially modeling even more data for advertisers to absorb into their information. This isn’t 100% bad. For instance, if advertisers looked at every friend I had and noticed that only 11 of them EVER clicked a Facebook ad, wouldn’t that tell them something? If my friends and their friends by extension all seem to spend time very actively on facebook apps, that might tell me the value of building an application versus buying a more passive ad.

And who owns that data? For instance, a “friend” on their own page links to me and now we’re linked as “friends” in Facebook. I can see her data, read her updates, etc. But can I extrapolate that data out of the environment? I would hope not. Because it’s one thing if it’s real friends, but what if it’s someone who maliciously just wants to slurp my data, add it to some kind of spammy marketing project, and move on?

So, I ask YOU: who benefits from Facebook’s Social Graph data?

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  • http://www.tonystewardblog.com Tony Steward

    At this point Facebook and it’s advertisers are benefiting tremendously more than the users. Simply because the information they gather is helping them to take action and the information I see doesn’t really “help” me do “much of anything.” Yes it is tremendous to have a low level of effort tool to stay connected to people I wouldn’t have otherwise – but I don’t know that it is making my life any better. Though it does bring value to the “offline” relationships I already have.

  • http://www.tonystewardblog.com Tony Steward

    At this point Facebook and it’s advertisers are benefiting tremendously more than the users. Simply because the information they gather is helping them to take action and the information I see doesn’t really “help” me do “much of anything.” Yes it is tremendous to have a low level of effort tool to stay connected to people I wouldn’t have otherwise – but I don’t know that it is making my life any better. Though it does bring value to the “offline” relationships I already have.

  • http://www.tonystewardblog.com Tony Steward

    At this point Facebook and it’s advertisers are benefiting tremendously more than the users. Simply because the information they gather is helping them to take action and the information I see doesn’t really “help” me do “much of anything.” Yes it is tremendous to have a low level of effort tool to stay connected to people I wouldn’t have otherwise – but I don’t know that it is making my life any better. Though it does bring value to the “offline” relationships I already have.

  • http://www.jonathanmulholland.com Jonathan Mulholland

    Bingo! That is the REALLY big question, one I think points the way towards how social networks can be used by business and brands…

    I’ve been thinking for a while now that Facebook’s advertising platform attempt has missed something really big – you’ve just highlighted what this is.

    Social network relationships are like any other, they’re based on value for the parties involved. e.g. Chris and I are friends because we value each other’s opinions/knowledge/company etc.

    As you point out in your post, the value proposition for Facebook advertisers is clear, but I’ve always struggled to understand what it is for Facebook members. What do I get by becoming a ‘fan’ of KFC or Firefox? So far I’ve yet to see a convincing explanation.

    So can advertisers build meaningful, co-beneficial relationships with consumers? I think so, but they will have to be based on fair (or at least perceived to be fair) quid pro quo. I think that social networks that provide platforms for doing this will find success. That’s why the service I’m keeping an eye on at the moment isn’t Facebook – it’s Ning.

  • http://www.jonathanmulholland.com Jonathan Mulholland

    Bingo! That is the REALLY big question, one I think points the way towards how social networks can be used by business and brands…

    I’ve been thinking for a while now that Facebook’s advertising platform attempt has missed something really big – you’ve just highlighted what this is.

    Social network relationships are like any other, they’re based on value for the parties involved. e.g. Chris and I are friends because we value each other’s opinions/knowledge/company etc.

    As you point out in your post, the value proposition for Facebook advertisers is clear, but I’ve always struggled to understand what it is for Facebook members. What do I get by becoming a ‘fan’ of KFC or Firefox? So far I’ve yet to see a convincing explanation.

    So can advertisers build meaningful, co-beneficial relationships with consumers? I think so, but they will have to be based on fair (or at least perceived to be fair) quid pro quo. I think that social networks that provide platforms for doing this will find success. That’s why the service I’m keeping an eye on at the moment isn’t Facebook – it’s Ning.

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  • http://net-savvy.com/executive/ Nathan Gilliatt

    “Skip this step” is your friend.

  • http://net-savvy.com/executive/ Nathan Gilliatt

    “Skip this step” is your friend.

  • http://net-savvy.com/executive/ Nathan Gilliatt

    “Skip this step” is your friend.

  • http://remarkablogger.com Michael Martine

    I deactivated my facebook account. That should tell you something. WordPress has been using XFN data in its blogroll for years. Plugin developers are working like mad to create ever more socialized plugins for WordPress. I’d love to see WordPress become more social over the next coupla years. That would be situation in which we all benefit.

  • http://remarkablogger.com Michael Martine

    I deactivated my facebook account. That should tell you something. WordPress has been using XFN data in its blogroll for years. Plugin developers are working like mad to create ever more socialized plugins for WordPress. I’d love to see WordPress become more social over the next coupla years. That would be situation in which we all benefit.

  • http://remarkablogger.com Michael Martine

    I deactivated my facebook account. That should tell you something. WordPress has been using XFN data in its blogroll for years. Plugin developers are working like mad to create ever more socialized plugins for WordPress. I’d love to see WordPress become more social over the next coupla years. That would be situation in which we all benefit.

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  • http://Mechanixloop.com Mathew Sweezey

    I agree the ability to seal information is to easily
    transformed into a black hat operation. IF people can go on and take information off of my Facebook page then it would deter me from using facebook like a currently do. I think the whole Scoble debate is valid but i think for the sake of Facebook users being protected that information has to remain the property of Facebook, and should not be allowed to be farmed, because it is very personal info given under the pretext that it is safe on their site.

  • http://Mechanixloop.com Mathew Sweezey

    I agree the ability to seal information is to easily
    transformed into a black hat operation. IF people can go on and take information off of my Facebook page then it would deter me from using facebook like a currently do. I think the whole Scoble debate is valid but i think for the sake of Facebook users being protected that information has to remain the property of Facebook, and should not be allowed to be farmed, because it is very personal info given under the pretext that it is safe on their site.

  • http://Mechanixloop.com Mathew Sweezey

    I agree the ability to seal information is to easily
    transformed into a black hat operation. IF people can go on and take information off of my Facebook page then it would deter me from using facebook like a currently do. I think the whole Scoble debate is valid but i think for the sake of Facebook users being protected that information has to remain the property of Facebook, and should not be allowed to be farmed, because it is very personal info given under the pretext that it is safe on their site.

  • http://www.chrisbrogan.com chrisbrogan

    I guess I’m not as worried that the information I put up there can be taken, I just wish we’d build some tools that would be better used for more interesting information.

    I’d rather know what my friends are interested in instead of sharing with advertisers WHO my friends are. The news feed isn’t that. Sorry, but it’s not.

  • http://www.chrisbrogan.com chrisbrogan

    I guess I’m not as worried that the information I put up there can be taken, I just wish we’d build some tools that would be better used for more interesting information.

    I’d rather know what my friends are interested in instead of sharing with advertisers WHO my friends are. The news feed isn’t that. Sorry, but it’s not.

  • http://www.chrisbrogan.com chrisbrogan

    I guess I’m not as worried that the information I put up there can be taken, I just wish we’d build some tools that would be better used for more interesting information.

    I’d rather know what my friends are interested in instead of sharing with advertisers WHO my friends are. The news feed isn’t that. Sorry, but it’s not.

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  • http://marshalsandler.com/ mARSHAL SANDLER

    Dear Chris, I have felt since using Facebook, that it could be the next Edsel! I don’t want anything to fail but it is a ship without a rudder ! I spent time building a page, I in ,no way benefit from my efforts !
    My stats show ,even when I post from my blog I get no activity !
    I feel like Michael Martine, Worpress gives back ! Facebook needs less Teche and more belly to belly marketing ! The way it present’s itself today I see no Value as a advertising vehicle ! I don’t need Facebook to send you an E Mail !

  • http://marshalsandler.com/ mARSHAL SANDLER

    Dear Chris, I have felt since using Facebook, that it could be the next Edsel! I don’t want anything to fail but it is a ship without a rudder ! I spent time building a page, I in ,no way benefit from my efforts !
    My stats show ,even when I post from my blog I get no activity !
    I feel like Michael Martine, Worpress gives back ! Facebook needs less Teche and more belly to belly marketing ! The way it present’s itself today I see no Value as a advertising vehicle ! I don’t need Facebook to send you an E Mail !

  • http://marshalsandler.com/ mARSHAL SANDLER

    Dear Chris, I have felt since using Facebook, that it could be the next Edsel! I don’t want anything to fail but it is a ship without a rudder ! I spent time building a page, I in ,no way benefit from my efforts !
    My stats show ,even when I post from my blog I get no activity !
    I feel like Michael Martine, Worpress gives back ! Facebook needs less Teche and more belly to belly marketing ! The way it present’s itself today I see no Value as a advertising vehicle ! I don’t need Facebook to send you an E Mail !

  • http://www.3cinteractive.com Ainsworth Boyle

    Facebook benefits 100%. The problem is, they will continue to win because the margin of people who actually realize this is only so big. The rest of the primary users have no idea how or why Facebook is as gigantic as it is.

  • http://www.3cinteractive.com Ainsworth Boyle

    Facebook benefits 100%. The problem is, they will continue to win because the margin of people who actually realize this is only so big. The rest of the primary users have no idea how or why Facebook is as gigantic as it is.

  • http://www.3cinteractive.com Ainsworth Boyle

    Facebook benefits 100%. The problem is, they will continue to win because the margin of people who actually realize this is only so big. The rest of the primary users have no idea how or why Facebook is as gigantic as it is.

  • http://lainaukset.wordpress.com/ Daniel Schildt

    I have felt for long time that there is more possible problems with privacy of people in Facebook than what amount of features it can provide. It’s not that FB wouldn’t have quite nice things like forums but mainly that for most people sharing of social graph isn’t good thing (atleast in long timeframe).

    I’m optimistic about increased communication social networks can provide but quite pessimistic of service providers ability to protect privacy of people. Or don’t people see any problems with sharing details of their private relationships? Has privacy lost it’s meaning in todays world? What could be done to improve situation?

  • http://lainaukset.wordpress.com/ Daniel Schildt

    I have felt for long time that there is more possible problems with privacy of people in Facebook than what amount of features it can provide. It’s not that FB wouldn’t have quite nice things like forums but mainly that for most people sharing of social graph isn’t good thing (atleast in long timeframe).

    I’m optimistic about increased communication social networks can provide but quite pessimistic of service providers ability to protect privacy of people. Or don’t people see any problems with sharing details of their private relationships? Has privacy lost it’s meaning in todays world? What could be done to improve situation?

  • http://lainaukset.wordpress.com/ Daniel Schildt

    I have felt for long time that there is more possible problems with privacy of people in Facebook than what amount of features it can provide. It’s not that FB wouldn’t have quite nice things like forums but mainly that for most people sharing of social graph isn’t good thing (atleast in long timeframe).

    I’m optimistic about increased communication social networks can provide but quite pessimistic of service providers ability to protect privacy of people. Or don’t people see any problems with sharing details of their private relationships? Has privacy lost it’s meaning in todays world? What could be done to improve situation?

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