Andy, You raised some important questions in this blog. I noticed, however, the main thrust of the article was about individuals. As you are aware, many businesses also use Facebook and it's almost like many of them can't do without the site. Will they be able to do without Facebook? Yes. They did without Facebook once. But how about the investments that's gone into establishing a Facebook presence and will it be as easy to find a replacement; is a replacement needed?
Thanks for the comment and question, Bolaji. Its an important--perhaps one of THE most important questions there is. People bring business. Business brings advertising. Advertising brings money to stay in operation. Business involvement on Facebook is a slippery slope. One of the reasons why MySpace is only talked about as a memory is the proliferation of ads that ruined user experience and forced members to seek more open pastures. Someday maybe the same will happen on Facebook. Only time will tell.
As for the investment of the business, I view dollars and time spent creating a presence and engaging with fans as a necessary part of a company's branding budget. Obviously, the question of 'is it worth it?' had been answered or they would not have moved forward. We face that decision with every new network and opportunity--the same as if we were designing ads for a magazine or a billboard. The only thing that changes is the medium.
@Andy, thanks for the post. I am not so optimistic about the future of Facebook. More and more people are using smartphones to access the Internet. And I am not sure how will social networking sites raise their revenues because the ad-space is so small on the smartphones.
I think the future of Facebook depends on how long it can remain to be free without having annoyingly high number of adverts. This of course depends on Facebook's appetite for more cash.
Increasing the volume of adverts on a website definitely has an adverse effect on user experience to the extent that users start to drop out. Once the users start to leave a website for good, this has an avalanche effect and often many others follow. Once other hungry application developers notice that Facebook is losing ground, they will come up with alternatives very quickly and the users will find a new 'book' for themselves to share, exchange and to enjoy. That will mark the end of the Facebook era.
Facebook has highlighted a strong social need and trend with its huge success. It has unveiled the presence of a massive market. There is no guarantee for Facebook to remain the leader in that market but the market's existence is almost certainly guaranteed, which ensures that Facebook or not, we will remain connected via a book or two in the future.
Andy, I think the survey reflects in right proportion. Facebook and other social medias are the places we are hang around, but gadgets are a part of our life and without gadgets we can't access anything. So far I hadn't a Facebook or LinkedIn or Google + account, but am using almost all new gadgets (Tablets, Smartphone, Laptops etc) as a part of routine work and accessing internet.
Recently one my friends sent an artcile which says that a bank relies soles on its Facebook "likes" to fix the interest rate for that period.
"The Fidor Bank is the first bank in the world where you can help shape the interest of FidorPay. The rule is simple: The more Facebook Likes, the higher the interest rate. The minimum interest rate of your FidorPay account is 0.5% pa. By the 25th of each month, if the bank achieves a certain number of Likes, then a higher interest is paid and calculated, starting in the month at the rate achieved in each case. From 22,000 Likes FidorPay will offer 1.5% interest per annum for the remainder of the year. At the end of 2012, the interest rate resets again to 0.5% pa."
If such trends continue in the businesses then sure Facebook will have a very bright future
Well put Jacob. What's Facebook, LinkedIn and MySpace without the gadget to access the sites or send your message. It's like preferring an airconditioning system to having a house. It's hot right now but a house is the first necessity.
@Prabhakar, I assume the bank is operating on the assumption that the more "likes" it gets, the greater the likelihood some of these people will check out its loan services, take loans, make deposits, etc., and the more money it will make. Many of the people who may "like" this bank may not be creditworthy, which defeats the goal.
The more Facebook Likes, the higher the interest rate.
@Prabhakar_deosthali, I think the logic doesnt work because its so easy to get fake Facebook likes. If you check any freelancing site you will see people trade "Facebook likes". Customers pay some nominal amount for 1k Facebook likes. Differentiating between geniune and fake Facebook likes is a big task.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
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Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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