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Being on the frontline of a digital marketing agency means I’m often the first person a client asks when they have a digital-related question. There seems to be a theme lately, as clients ask me to pinpoint the day that Facebook is going to die and what is going to come next. The opinion I’ve held for the last 18 months is quite simple… Facebook is going to be around for a long time and there is nothing coming to replace it any time soon.

For the foreseeable future, Facebook is only going to increase in size, strength and exposure. A few people have been distracted by how fast Facebook caught up with MySpace and presumed (logically?) that the same was going to quickly happen to Facebook. People were touting the same thing back in the early 00’s when that upstart company called Google surged over Microsoft and Yahoo! search. Many people subscribed to “it won’t last”, “there will be another one soon”, etc. Seven years later (Google was technically set up in ‘98 but it took a few years to really take over) and Google is a powerhouse online. Yahoo! and Microsoft fight over a measly 10% (depending on sources) slice of the Search Marketing pie. The reason is simple. Google took the lead, invested, acquired, innovated and never sat still. As long as Facebook maintain the same ethos there is no reason why in 3-4 years time, they will not be the de facto ‘address & social network’ of nearly all adults. I’ve already seen the little ‘F’ logo appearing on biz cards of ‘new media’ folk.

The problem is that as Facebook growth is a double-edged sword. It is great for me as a user as more of my contacts get a Facebook account because it enables me to stay in touch with more people. The down side is that I have been selective when accepting Facebook friends and already have 300+ (I know someone with 1,300+). In real life it is impossible to maintain meaningful relationships with 100+ people. Why should ‘virtual’ life be any different? It’s not. People are fooling themselves if they think they can be a real ‘friend’ to this many people.

The power of Facebook is realising this and using it as a social tool to empower your ‘real’ life. This is where brands can really enrich user experiences and connect with their audience. Facebook applications (games/ functionality/ etc) are more numerous than friend requests. I stopped deleting them a few months back and currently have about 900+. Just like my Facebook friends, I do not have the time to engage with everyone. I cherry pick. Often this is based on my existing relationship outside of Facebook. Do I know the brand? does it tie-in with an existing ATL (TV, radio, etc) campaign? Is the application productive to my real life beyond Facebook? These are a few of the questions that identify if an application is likely to gain traction with users. A big successful brand and ad campaign is no guarantee that the application will be a success but it means there is likely to be a higher install rate than a total unknown - check out the Indy campaign. Obviously, there are always exceptions to the rule (see a recent blog post about big brand/ big bucks applications that sit around with only 4 daily users).

So, the conclusion for Brand/ Marketing/ Account Directors and Managers looking at Facebook is that for the next 18 months, it is a safe bet to invest in to reach a mainstream adult audience. However, Facebook (like MySpace, Bebo and the other networks) campaigns are most effective when they are not the entirety of the campaign. It is rare that you see an application succeed and deliver campaign goals without any additional support outside of Facebook.

New data published by ComScore shows that Facebook has overtaken MySpace in terms of global unique users.

In May 2008, Facebook had 123.9m unique users, compared to MySpace’s 114.6m. Over the past year, Facebook’s unique users grew by 162%, whereas MySpace only grew by 5% during the same period.

The latest research compiled by IAB Europe and analyzed by Pricewaterhouse Coopers has shown that European online ad spend has grown by 40% over the past year, reaching €11.2bn/£8.9bn (from €7.2bn/£5.7bn)

Predictably, the UK, Germany and France were the key markets - accounting for two-thirds of the spend. However, other markets are growing significantly - Greece grew by 91%, Spain by 55% and Slovenia by 49%.

The IAB forecasts that 10 of the 16 European countries studied will spend over 10% of total advertising budgets online by 2010 - currently 7 nations have reached this.

If these current trends continue, it is predicted that the online ad spend in Europe will overtake that of the US by 2010, which only grew by 26% to €14.5bn over the past year.

New research by the Advertising Association and the World Advertising Research Centre (WARC) has shown that the total online ad spend in the UK reached a record high of £3bn for the first time over the last year.

Online now accounts for 16% of the total UK advertising market, growing 39.5% last year and remaining the UK’s fastest growing sector.

Ad spend across all media in the UK over the last year grew 4.2% to £19.4bn. The UK cinema advertising sector saw great growth, rising by 10.1% - although, at £207m, this is only worth 1.1% of the UK’s total advertising market. Outdoor advertising also grew by 4.6%, to £1.05bn, which gives it a 5.5% share of the UK advertising market.

Press is still the largest single sector in the UK, accounting for £7.7bn, which is around 40% of the UK advertising market. However, there was some bad news for press advertising as it saw a decline of 1.6%. Direct mail advertising also saw a decline, but a much greater one, at 6.5% taking its total spend to £2.17bn.

Many analysts have long predicted that online would soon be stealing market share from newspapers, magazines and direct mail - and these figures seem to prove them right.

The Yahoo! and Microsoft acquisition talks have finally come to an end  - and Google seem to have come out of it as the clear winner.

After a long-running discussion, Yahoo! have decided to partner with Google, building on their recent ad partnership. Yahoo! will now display Google ads next to its search results in the US and Canada from September. Google and Yahoo! also plan to make their instant messaging tools compatible. In total, Yahoo! are expected to gain $800m in additional annual revenues from the deal.

YouTube is about to get clever with the addition of video annotations. These are a new way to add interactive elements to your videos. Add background information, create stories with multiple possible endings or link to related content. You control what they say, where they appear, when and for how long.

The possibilities are endless, and could open up a whole new set of opportunities for viral marketing. Check out the instructional video, or check out the example below:

Facebook has been forced to shut down two of it’s top applications this week after ‘privacy violations’.

Top Friends (which I’m sure most of you have heard of) was created by Slide and lets you to rank your friends in order of how much you like them. It was Facebook’s forth biggest application, but had to be removed after a hacker published users’ private details.

Hi Social was around the 25th most popular application on Facebook, with over 280,000 daily active users. The app lets uses find out what their friends really think of them, but has also had to be removed.

Facebook has said they are looking into each case and the Information Commissioner’s Office are meeting with Facebook this week to discuss the privacy issues on the site.

New research by the IPA has shown that almost a third of people between the age of 15 to 25 have watched TV via the internet. And around 18% of people aged between 25 and 64 (a very broad ‘old people’ category or what?!) had too.

The IPA Touchpoints report surveyed over 5,000 people and also looked at mobile behaviour. It was found that 30% of 15 to 24 year olds watch video clips on their phones, with 13% of all mobile users doing so.

Jim Marshall, chairman of the IPA Media Futures Group, said, ” the young are still driving the take-up and use of digital media and new technology, however, the older age groups are also moving steadily towards greater adoption.” Personally, I would have thought that more than a third of 15 to 25 year olds would have watched TV online, but I suppose if this statistic was expressed as a number than a percentage it would seem greater.

Just as an extra update - overall broadband penetration now stands at 73% of all UK adults, with internet usage at an average of 45 minutes on weekdays and just over an hour at weekends.

After only one week of airtime, Heinz have pulled the plug on their latest TV advert in an apparent move to appease the sensibilities of a vocal homophobic minority. When I first watched the ad I couldn’t quite believe that people could feel so strongly about a short peck on the lips. I was truly expecting tongues and all sorts.

The ad, by London-based agency AMV BBDO (now there’s a catchy name), revolves around the central concept that Heinz Deli Mayo tastes so good “it’s as if you have your own New York deli man in your kitchen”. At the end of the ad, as the father prepares to leave the house with his sandwiches, the two men share a brief kiss.

According to the Guardian, viewers have complained that it is “offensive” and “inappropriate to see two men kissing”. What exactly is inappropriate about this, in an age where same-sex relationships are perfectly accepted and same-sex marriages legal? Other parents complained that the ads would require parents to discuss the issue of same-sex relationships with their children. I can’t see how this can possibly be justified.

As reported in the Independent, Ben Summerskill, the chief executive of the gay rights group Stonewall, has urged its supporters to stop buying Heinz products. Whether this will be carried out to the point where it actually harms Heinz remains to be seen.

I personally don’t feel as angry with Heinz as I do with the idiot viewers who took it upon themselves to complain. As someone in the office pointed out, the Heinz brand is centered around the idea of the family, and a protracted fight over this issue may go against the overall interest of the brand.

As the debate spreads across the Internet it seems that despite being withdrawn, the ad will find an audience on YouTube and other video sharing sites.

I think that Sarah Britten, a blogger from the South African newspaper The Times, sums it up well:

“Heinz showed even less spine than Thabo Mbeki on Zimbabwe.”

“Never underestimate the wilful stupidity of the viewing public”

This Thursday, the internet’s regulators will vote and ultimately decide whether the strict rules on top level domain names, such as .com or .uk, can finally be relaxed.

If the plans are agreed, it will have a huge impact on the address system, as companies will be allowed to turn their brands into domain names. The Internet Corporation for Assigned Names and Numbers (Icann) oversees the domain name system and has been working towards opening up net addresses for the last three years. They have said that any string of letters will be allowed to be registered as a domain, but there will be an independent arbitration process for people with grounds for objection (who hopefully won’t treat every possibility with rejection as they did .xxx - although I’m guessing they are going to). However, hundreds of new domain names are expected to be created by the end of the year, rising to thousands in the future.

While there are clear reasons as to why these plans have come about:  a) the Internet has changed so much since the original address system was established that this system is dated; and b) existing domains are running out; I can’t really see many existing brands and companies actually using them. Maybe in the future once a few others have tried and tested the new domains they will start to catch on, but to start with I think most brands will stick with what they’ve got. After all, brands know that consumers are familiar with their current addresses and that their consumers know exactly where to find them. For example, if I want to visit a site for a brand, say Nokia, the chances are I’ll type in nokia.com and that’s where the site will be. I don’t want to have to start guessing at nokia.nok, mobile.nokia or nokia.nokia (which looks stupid anyway!). Also, changing domain names to turn your brand into a domain will have implications for your SEO. Well established and search engine friendly sites are not going to benefit from starting from scratch - especially taking into account Google’s 6 month sandbox period.

However for some sites, I think the .brand domain will work really well - .ebay is a domain that it’s suggested will be introduced and this make a lot of sense for them. Individual store owners/sellers could then have their own address at .ebay, so for example, my clothes range could be on sale at laurawear.ebay. This system would also work well for other huge sites that have individual pages or subdomains - Facebook members could each have their own address at .facebook.

Another interested point is that the plan would also allow for the new domain names to be internationalised, and so could be written in scripts for Asian and Arabic languages. And again, like most things these days, it will all come down to money in the end. Icann are still working through how much the application fee to register a domain name will be, but it is expected to be at least several thousand dollars. And, in cases where there is a dispute over a domain, there will be an auction and it will go to the highest bidder.

I guess we’ll just have to await the outcome on Thursday to find out whether the rules are relaxed, but hopefully they will be because it will be interesting to see how brands react to the new possibilities.