Archive for November, 2008
Twitter turned them down. $ 500 million in stock was the price tag. $ 15 billion was the valuation on Twitter. Twitter has 6,000,000 registrations and did not want to sell on the first offer. Marc Zuckerberg (Facebook’s founder) said Twitter was an ‘elegant model’. Now I am on both Facebook and Twitter (don’t have a huge amount of Facebook ‘friends’ nor do I have any real following on Twitter).
I still have trouble understanding how either Facebook or Twitter will make money. And maybe because I am an older guy I have difficulty understanding why people would want to know what I am doing ‘right now’. I admit I probably just don’t get it. Folks it is not all that exciting most of the time – I mean it’s fine for me but why would anyone care about some of the posts I read on both? I realize I am far from being any kind of fascinating person but I also feel that most of the posts I read are self-aggrandizing and frivolous.
As I have noted before unless companies like Facebook and Twitter (and LinkedIn etc.) figure out a revenue model I have my doubts about their long term viability. Will we look back in five years at all this moment to moment posting of life events as extraneous and TMI? My guess is yes to a certain degree but what also is likely to happen is that these social networking sites will mature and morph into something we (or maybe it’s just me) cannot quite see at the moment.
I’m off to NYC for meetings a lunch. Yes I know you don’t care. Why should you?
Ok these people are SUPER engaged. Some might term it fanatical and others might call it more than that. WOW players collaborate on line in the world’s most popular MMORPG (if you have to ask then you won’t understand) that has 11 million members (that pay a monthly fee to access servers around the planet). The players can talk and share in real time, the content is truly genuine and the engagement motives are simple to understand – they just want to play the game.
It can be addictive for sure and there are even support groups for those that cannot control themselves since they can play for 16 hours per day or more. It would be easy to pass off this group as a bunch of computer geeks with no life if there were not so many of them. But their sheer numbers and committment level make them a formidable force.
Let’s see 11,000,000 people who actually PAY something to network with one another both verbally and in writing sharing a real-time experience with participants worldwide. Facebook and MySpace may have more members but neither has figured out any kind of sustainable revenue model.
WOW proves that true user engagement combined with revenue can coexist after all! It’s just a different kind of social network.
Have you noticed what’s in your mailbox since the election last week? Or more properly what’s not? There was a fair amount of candidate promotional mail up until Tuesday the 4th but aside from the few stragglers who came in with vote pleas AFTER Election Day the lack of volume of mail in our mailbox is noticeable.
It was never good to see three Victoria’s Secret catalogs in the same week (well at least not from a business perspective) but now we get none. Holiday catalog mailings are way fewer and page counts are down down down. We all understand the desire to send less and drive the customer (or citizen you would like to be a customer) to the web catalog. But people really do look at the catalog to do shopping. Of course there are the e-commerce dedicated folks who proudly disdain any received mail however they do not make up the majority of the population. And while sending a postcard to drive web traffic is a good strategy it is a dangerous thing indeed to make it the ONLY tactic.
It’s obvious that dollar value spend will be down on individual gifts this holiday season. But people will buy gifts and I also am feeling a general backlash against gift cards. A couple of weekends I tried to use a gift card I received earlier this year and found that it had expired. ARRGH! So that really ticked me off and I have vowed not to buy one single gift card for anyone this season. Sure it’s easier, less thought involved. But it is also less caring and if I am going to spend less money on someone the least I could do is invest myself in really thinking about what would be the appropriate gift. For the same reason that handing over cash seems inappropriate in lieu of a gift card.
Fewer catalogs, mail promotions this season will only exacerbate the drop in sales that retailers and catalog companies will feel and to add to it then the pipeline will be drier than ever come the end of the holiday season. And keep in mind with the mailbox being less cluttered than in recent memory marketing messages and offers will better penetrate and resonate!
Mailing less and mailing smarter are options that must be considered. But not mailing at all will have companies struggling Q1 2009 to answer the question of where all the top line revenue has disappeared to? They are blowing it big time.