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The Buzzword Facebook Effect

August 18, 2010 Leave a comment

It’s amazing how the right buzzword can galvanise interest even in the dullest of topics. Think seamy tabloid headline meets uber-cool geek speak, and you’ll get the picture. This post is about a particular buzzword, and the effect its having on your life right now (even as you read this post), and that word is Facebook!

Given there’s already a couple of books and a recent movie, plus a brand new Location Based Service for Facebook, (ps. “location-based-anything” is itself a major buzz-phrase), it can be taken as read that the Facebook buzzword is having an effect like there is no tomorrow.

recently reviewed an eponymously titled “The Facebook Effect”, a book that chronicles the creation of this huge social networking phenomenon which probably plays too much of a role in your life, and that of half a billion other users worldwide. One thing that stuck in my mind was the vivid description of Facebook’s early growth across US university campuses. The strategy involved waiting until there was near hysterical demand for Facebook in each university, which invariably led to a geometric uptake once it was launched in that institution, and in turn, this created even more demand from other schools that were not yet on Facebook. This pattern of pent-up demand leading to rapid and explosive take-up of a new service or product, (also seen in the aftermath of Apple’s product launches), is something I like to think of as the “popcorn effect” for obvious reasons.

Other buzzwords that have an associated effect include the well known Network effect (as exemplified by Metcalfe’s law, i.e. the value of a network increases exponentially with each new user); also the equally potent Oprah effect, with her multi-billion dollar impact on businesses (mainly based on her core audience of women with a spending power of several trillion dollars per annum), it’s no wonder why companies and individuals will do almost anything to be a guest on Oprah’s show.

In light of these, it seems you can forget about the usual trappings of wealth like: mansions, private planes or even your own Island, because you’ve only truly arrived when you have an “effect” appended to your name, your product or to your company!

The Business of Facebook

June 23, 2010 Leave a comment

Facebook is undeniably a phenomenal success given it’s ever expanding membership and mindshare of all the social networks, but even that has not provided it with the same money making prowess as Internet rivals like Google. So how and when can Facebook hope to start making some real money, or has that boat sailed already?

This and other similar hot topics were discussed by the panel at a Digital Breakfast NYC event which I attended off the back of my participation at the recent Copyright and Technology 2010 conference in New York (more on that here). The highlight of this event for me was the presence, on the panel, of David Kirkpatrick, Author of “The Facebook Effect”, a book which provides a fascinating insight into just how Mark Zuckerberg and co. formed Facebook, and the subsequent rapid journey it underwent to become the behemoth of social networks. The ensuing discussions between audience, panel, and chair touched on the many challenges confronting Facebook in its quest to become a ubiquitous platform. It also explored sore topics like privacy (“which means different things to different people and different generations”, according to panelist, Elend ), as well as Facebook’s difficulty getting into China and its huge user base of potential Facebookers.

My Verdict: Excellent event, great panel, stimulating conversation and a pleasant location (at the Madison Avenue office of the event host and sponsor), plus breakfast and an autographed copy of the book! Now that’s what I call an excellent start to the day.