Galt Global Review

QFS 360

January 16, 2008
Social networking: trends and traps

Infotech Feature

by Tatiana Andronache


Social computing; social utility; social networking; social publishing; social collaboration. "Social" is the one common denominator for what is known as Web 2.0. The web has outgrown the stage of personal websites and crude file swapping, as well as the age of "pure" electronic commerce.

The web of today is based upon social networking.

The new webscape
Crowd-gathering web mechanisms, each centered on the idea of getting as many people as possible to interact, broadcast and share who they are and what they do, have matured in the last few years. Each uses different approaches for "bait:"

• Profiles and communication (Facebook, Myspace);
• Photos (Flickr);
• Videos (Youtube);
• Information (Wikipedia);
• Opinions (blogs);
• Web preferences (Del-ici.ous);
• Music, games, or even reporting one’s minute-to-minute mundane activities (Twitter).

While the success of these sites is due to their usefulness, their "cool factor" and addictiveness, their social aspect is largely backed by commercial interests. Where crowds gather, retailers follow.

People are enticed not only to consume information and goods on the web, but also to create value (ratings, opinions, tags, content, etc.) for others. In the process, they also build the fabric of society beyond traditional boundaries and taboos.

New contenders spring up all the time. Shelfari, for example, gathers people around their interest for books (a medium the Internet was expected to eliminate!), and Rateyourmd allows users to comment on and rate their physicians.

Trends and Traps
The way "web citizens" interact within social networks is proving to have a significant influence on private and professional lives. What one says or does on the Internet has staying power. It is as easy to post something on the web as it is difficult to undo it. Reputation management is becoming part of life on the web, and tools and strategies are being developed to address the need to upkeep one’s image on the net.

Another remarkable trend is how sites developed primarily for individual use and leisure are makeing their way into the public arena and the corporate world. Sites like Facebook and Secondlife are now used not only by individuals without an agenda, but also by high-profile artists, political figures, publications, associations and companies well established in the "brick and mortar" world. This exposes the need for a user to be able to separately manage business and leisure contacts within the same site, which can be a difficult thing to do.

The balance between freedom and control is another major issue confronting the social networking phenomenon. Some people are adamant that expecting have privacy on the Internet is un realistic. How private are emails on Google, when the "free" search engine uses them to come up with targeted ads and links? Nothing is free and everything is interconnected.

Moreover, the collection of personal data through social networking sites is also cause of concern. As the recent incident involving Facebook's advertising system Beacon shows, users are having their privacy breached by having their actions on other websites exposed to their web "friends."

Trust-based networks are another trend. While building communities of interests across boundaries is intrinsic to the Internet, there is a growing need for quality networks, especially in professional circles (see LinkedIn) where people are admitted based on referrals from a community member. The quality of the contacts one member has in such a network is more important than the sheer number of them.

But large counts of "friends" are good for marketing and retailing. Retailers turning social are another recent trend. Interesting philosophies and business models are tried in the retail space. Fanista, which opened in November 2007, blends elements of electronic commerce (Amazon), social networking (Myspace), entertainment (think Hollywood) and the pyramid scheme (Amway) to sell DVDs and CDs to users and friends in their network.

Anticipated: More trends and traps
Some analysts predict virtual worlds will become common place within five years. But others are not so sure. A year ago, expectations were very high for Second Life, the 3D virtual world created by its users, to become a mass marketing tool. Recent opinions suggest that membership numbers and their growth were overstated. Most people do not have the time, skills and dedication such a site requires.

Another business model is contemplated by Ebay, the e-auction giant, who, after having acquired Skype, the popular Voice-over-IP company in 2005, is now looking at synergies with Facebook to boost sales figures.

Yet another possibility is turning email platforms social. This again raises important privacy concerns and has the potential to alter the competitive landscape of the web ad market: Will Google embark on this route? Will then Microsoft team up with Facebook to compete against Google? What will Yahoo do?

And how will the individual user react to the inescapable grip of social networks on one's private and professional life? Psychologists have a fertile field of research here and so do information technology specialists who already talking about the unique electronic ID.

 

 

Do you have a comment or feedback on this article? Email us and let us know what you think.