iPhone app iPad app Android phone app Android tablet app More

Featuring fresh takes and real-time analysis from HuffPost's signature lineup of contributors
Bianca Bosker

GET UPDATES FROM Bianca Bosker
 

Is Facebook About to Crash Its Own Party?

Posted: 05/25/2012 3:23 pm

You're invited to a party. The host tells you all of your close friends are coming. You'll also meet his friends, and friends of their friends -- fascinating people, mostly extroverts, who have incredible stories to share about their work, their travels, the music that moves them and the books that make them rethink the world.

So you go to the party and begin to mingle. You flirt, trade anecdotes, and toast the other guests. You stumble upon two friends kissing, and you run into people you haven't seen since grade school.

And then Joe Biden appears on the top of the stairway as a surprise guest and the host announces the party is actually a -- what???!! -- fundraiser. Biden kicks off a slideshow -- there are photos of Biden with Mrs. Biden, Biden holding a child, Biden giving a speech -- and he asks you to donate to the Obama campaign. He suggests you ask your friends to do the same.

You sneak onto the patio for some fresh air, only to find it jammed with stalls of vendors passing out fliers. WalMart, McDonald's, Ben and Jerry's, Coca-Cola. Representatives stop you to ask you to comment on their new product, or watch a video about the people who manage their restaurants. You learn the host has blabbed about your psoriasis, and a dermatologist corners you to discuss a discount on skin treatments.

These guests aren't really here to socialize, you realize with dread. They're here to sell.

****


This is precisely the delicate "bait and switch" that Facebook is challenged with executing. Having attracted 900 million users to the biggest party in history, Facebook now has to sell them stuff -- without being a buzz kill.

The stakes are high: Bounce the merchants, and the company will fail, disappointing its investors, falling short of its profit promises, and putting its future in peril. Transform the cocktail party into a mall, and risk alienating millions of users who have no tolerance for an infomercial network. Post IPO, there's more pressure than ever to pony up profits.

Facebook, like so many other startups, put faith in the belief that if the users came, so, eventually, would the money. It earned $3.7 billion last year, hardly small change, and is now carefully experimenting with ways to infuse its site with more ads (see: "Sponsored Stories," which places companies' status updates side-by-side friends' updates in the News Feed) and shopping opportunities (Facebook's "Highlight" tool lets users pay to promote their posts, and the executives said they're interested in selling music and movies on the site).

Facebook's greatest asset -- us -- is also its Achilles' heel. We're a fickle bunch, and what attracted us to Facebook in the first place wasn't ads, or companies disguised as friends. It was each other.

Facebook sucked us in because it felt like such a personal place next to anonymous, one-size-fits-all web pages we encountered elsewhere. But there's no assurance Facebook can keep it that way. We didn't think "briends," brands masquerading as friends, were part of our social contract with Facebook, but slowly Facebook has allowed that kind of corporate intimacy to be part of the experience. This dissonance may be a problem for Facebook. We came for the people at the party. Will we stay for a brief word from its sponsor? How much will we be willing to hear from these "briends," and when, if ever, will we take our time elsewhere? (Perhaps we'll just hop to another, newer social network that hasn't yet put its mind to profits.) Will we choose to shop where we socialize, even though our parents taught us money doesn't mix with polite conversation?

In the years ahead, shareholders and advertisers will have the loudest voices in pushing for more marketing and selling on the social network. There's no way users can match their volume, so the question will be how closely Facebook can, and will, listen to what we want.

This tension between people and products underscores yet another challenge that uniquely afflicts Facebook given its social nature: Its users are horrible at handling change. When Apple updates the iPhone, it tweaks a tool and makes our lives a little easier. When Facebook introduces a new feature, there's the sense that Mark Zuckerberg has stormed into someone's dinner party, changed the music, dumped over a few cups of beer, and brought a few strangers into the mix. It feels like our personal space has been invaded. Who ever heard of someone threatening to ditch all Apple products over an iOS update? For Facebook, revolt (even if no one actually goes anywhere) is routine.

Google is also different. It never promised all of these emotional experiences. It has been there to provide a service, not social gratification. We tolerate the advertisements because we are getting something from Google: the luxury of powerful, free searches that make us more productive, educated and in the know. We go looking for information, and Google delivers information, in the form of blue links and ads. On Facebook, we go looking for relationships.

Several ex-users have penned manifestos outlining why they've decided to quit Facebook, and all include a similar refrain: It's my data and I don't want you delivering it to your advertisers. I don't trust you, I don't like how much you know about me, and I want out.

These privacy issues merit concern. Facebook has been "stingy" with giving brands data about users, analysts say, but it seems likely that the company will dole out more data as time goes on.

But there's also the atmosphere to worry about. Facebook closely monitors how users respond to the ads and marketing it serves up. But what if our clicks, minute to minute and hour to hour, fail to communicate to Facebook our general impression, which is that the party has become polluted? We always knew our friends were often "selling" us on particularly glamorous versions of their lives and whereabouts. Being pitched by a company is something else entirely.

 
 
 

Follow Bianca Bosker on Twitter: www.twitter.com/bbosker

FOLLOW TECH
You're invited to a party. The host tells you all of your close friends are coming. You'll also meet his friends, and friends of their friends -- fascinating people, mostly extroverts, who have incred...
You're invited to a party. The host tells you all of your close friends are coming. You'll also meet his friends, and friends of their friends -- fascinating people, mostly extroverts, who have incred...
 
 
  • Comments
  • 281
  • Pending Comments
  • 0
  • View FAQ
Comments are closed for this entry
View All
Favorites
Bloggers
Recency  | 
Popularity
Page: 1 2 3 4 5  Next ›  Last »  (10 total)
12:04 PM on 06/02/2012
Data mining no matter how you cut it is an intrusive and offensive advertisement or advertising solution. Facebook needs to be careful what it implements to help it increase ad revenue or millions of users will move on to another social media platform.

FYI:.
Just about all social media including Facebook eventually is published on Yahoo. In fact, Facebook is receiving multiple advertising listings in unique search categories courtesy of Yahoo! You will see the proof soon with a Yahoo search for the following keywords:

Brand New Facebook and Yahoo Multiple Advertising Platform
03:27 AM on 06/02/2012
Web Inventa provides manually overwhelming photo retouching services in an artistic way with the world famous graphic designers in the globe. Confidential photo retouching perfection on several kinds of images is done in fully perfection by our professionals in daily new other days. We work on photo retouching including the airbrushing, color correction, re-sizing, muffin tops, bags, background cloning & cleaning, restoration & sharpening of color. Retouching for simple, compound and complex images composition & manipulation at foremost level is our main concern.

http://www.webinventa.com/photo-retouching.html
photo
matthewmk2
Won't say that I'm better, just that I'm less wors
07:02 PM on 06/01/2012
"Is Facebook About to Crash Its Own Party?" Of course it is. Now that they've gone public the pressure from shareholders to make money will drive them to make decisions and implement features that as a private start-up they never would have imagined doing. Only Mark Zuckerberg's greater than 50% share of voting stock stand between Facebook as we know it and soulless money grabbing hell.
08:40 PM on 05/30/2012
Great article! I thought I was alone in thinking alll these things about FB. If the company wants to weather the inevitable storm, they need to stop bullying users and start building a brand. Yeah they're well known, but are they well understood or well liked? I'd say 'no'.
photo
HUFFPOST SUPER USER
GregCoyote
12:57 PM on 05/29/2012
The day they charge $1 is the day that 90% of their subscribers will walk.
HUFFPOST SUPER USER
j main
Reality is just a collective hunch, anyways.
03:01 AM on 05/29/2012
I really have to challenge this notion that data mining leads to more targeted ads. Retailers have had access to data warehouses for decades and there has been such little progress in terms of product offerings, sales increases per location and all that other good stuff. I look at what people are posting online and I have to wonder what extra information is gleaned from someone's vacation shots in Florida, etc. The effectiveness of data mining has been oversold for decades. For a large number of reasons, it is ineffective. The main reason is that the mountain of data that needs to be reviewed is just too large and even with the most advanced algorithms of mathematicians, computer scientists, artificial Intelligence developers just don't cut it. The hardware is not there yet and chances are it will not be effective in our lifetime.
photo
ponyloco
citizen @ large
01:21 PM on 05/28/2012
I nuked my FB profile about 3 months ago. I feels so liberating - which I know sounds silly...

but FB is a virus - brings out the worst in people...even mature adults talk about it in a fashion that reminds me of high school, "Should I unfriend...I can't believe he commented this...I can't believe she friended her ex, blah, blah"...

Facebook should be like Logan's run...But instead of 21 as the cut off age, after 30 you're automatically eliminated...

it's a wretched way to socialize...thumbs down.
photo
Anonymous Conservative
Cynical atheist.
01:46 PM on 05/29/2012
It really sucks. I don't use it to socialize. I use it as a communications thing, just to talk to my friends and such. I also use it so I can laugh at some of my idiot friends without offending them.

I also use it for arguing. I post frequently on Independent Journal Review, and some people don't agree with me, so we argue for a bit.
photo
ponyloco
citizen @ large
02:51 PM on 05/29/2012
whatever works, really...
it just really sends me for a loop when people let it become a force of happiness/sadness in their lives...
it's a glorified message board at that end of the day...,
HUFFPOST SUPER USER
leorangerie
12:59 PM on 05/28/2012
This is nothing but anecdotal, but I'm seeing that the teens in my household are moving away from Facebook. It's become too mainstream for them. They're moving on. They liked Instagram as a replacement, but now that Facebook is buying Instagram, they're disappointed and looking for something else. Once the adults and parents took over Facebook, the kids lost interest.
This user has chosen to opt out of the Badges program
photo
12:17 PM on 05/28/2012
I opened a FB page early on - and soon got bored with the minute-by-minute reports of what my friends/nieces were doing. 'Having ** for lunch' -- "going to the mall' -- blah blah blah.

I have noticed that THEY post less and less now-- they are also getting bored with it? I don't know, but when you lose the 15 to 25 yrs old, you're probably DONE.
10:59 AM on 05/28/2012
Ahhh, just deactivated my FB account, feels good. To delete account takes 14 days, I wasn't willing to wait that long for this feeling of freedom. The people I cared to hear from, never post and the ones I could care least about, post the most. Plus the timeline layout is a joke. Heading out to enjoy the day!!
photo
HUFFPOST SUPER USER
lendmeanear
08:57 AM on 05/28/2012
Got off FB years ago and haven't looked back.
This user has chosen to opt out of the Badges program
photo
JavaManiac
...with liberty and justice for all
02:15 AM on 05/28/2012
Actually, it is the advertisers that have to learn how to advertise to the FB users.
photo
HUFFPOST SUPER USER
derekw007
is farting
01:00 AM on 05/28/2012
A company that's never made a profit built on a stolen idea that doesn't offer anyone anything of tangible value, whose only revenue stream is ad revenue generated from drilling down into the private information of it's customers to sell them 10% off an appetizer coupons from Chili's? And you say there's something wrong with that? What are you, a communist?
12:56 AM on 05/28/2012
I believe in Facebook and its creators/authors/team. I am confident that things will work out favorably. It seems that many would like Facebook to fail. This is common fare for successful ventures, especially on the level that Mark Zuckerberg, et al have accomplished.
This user has chosen to opt out of the Badges program
06:35 PM on 05/27/2012
I have only a phone and an email account. I can reach you and you can reach me. I'll be going public soon!