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Benn will be at WOM UK’s next Espresso Briefing on Wednesday 30th July from 8.30am until 10.00am. This session will look at how to use social networks and online communities to amplify Word of Mouth, and will be held at One Alfred Place, London, WC1E 7EB.

As a member of WOM UK, Neoco client’s can get in for free with us, and our friends can get discounted rates - so make sure you let Benn know if you would like to come along by posting a comment or emailing him directly.

The briefing will look at one of the hottest issues in marketing at the moment - how brands take part in social networks and online communities. Using examples from the US and Europe, the session will help to identify when it’s right to join in social networks and when a brand should build its own community. The briefing will show the benefits different organisations have had from engaging through social networks and online communities, how they can help engage customers and, critically, who they build advocacy and amplify word of mouth.

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.

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.

TokBox, the web-based video chat tool is bringing video chat to Facebook via their TokBox Facebook application. TokBox’s current app is just like any other chat facility, but their new functionality takes them into a new league - enabling users to have a video chat within their Facebook chat.

TokBox’s web-based platform is a Flash-enabled browser plugin. It makes the video chat process really easy to use - there are not downloads or any difficult setups - as long as you have a working webcam or computer microphone, you are ready to go…

You just need to install the TokBox plugin for Facebook (which is only supported for Firefox at the moment). Underneath each of your friends’ names there will be a link which will give you the option to start a video chat with them. Then you just need to tell the app that you allow access to the webcam, and you’re off. As with all TokBox video chat conversations, you’ll see your screen on the left, and the screen of your friend on the right (so it will look like below…)

TokBox also allows you hold multiple video chats at once, with each chat in its own window (like standards chats).

Once arguably the best-known “social networking” site in the UK, even before the term social-network was widely used, Friends Reunited recently been redesigned to give it a new “contemporary” feel. According to Airlock, the London-based agency responsible for the facelift, there has been a “dramatic” improvement in activity since the launch. But is it all too little too late?

It is interesting reading the history of Friends Reunited to see just how dramatic the rise of the school-friend catch-up site was. Launched officially in July 2000, by the end of the year it had 3,000 members, a number that had increased to 2.5 million a year later. By 2005, Friends Reunited had been the centre of a TV show (The curse of Friends Reunited), resulted in libel payouts and attracted 15 million of us to the site. Looking back, it seems crazy how a site that demanded payment to actually contact anyone could become so popular.

When ITV bought the site at the end of 2005, there was every reason to believe that the site would continue to grow in popularity. Facebook was, at the time, a high school network, only opening up to key companies in 2006. However many of the features which have come to define modern social networking sites, including the ability to make friends and communicate with these friends for free, were not a part of Friends Reunited. It seems that over the next year or two social networks moved on whilst Friends Reunited stood very much still.

My experience of the new Friends Reunited site was generally positive, albeit this was when I recently deleted my profile (having not been able to unsubscribe from emails without logging into my profile, I thought that having gone to the effort of figuring out my username and password that I may as well just go the whole hog and delete my entire profile). The new design is very much in the “web 2.0” mould; stripes, gradient-background titles, uncluttered.

The new features also go some of the way towards replicating the key features of modern social networks. It seems that it is now possible to join up with friends, and all monetary barriers have been removed (it’s free!). From the new-look homepage it looks like there’s a news feed feature and more of a focus on sharing pictures.

But do people need another social network? I personally don’t know a single person who uses Friends Reunited regularly, and this is going to be a huge barrier to wanting to use the site. Whereas most people I know do use Facebook. Now I don’t even like Facebook (I’ll save that for another day) but I think the key thing here is that if I do want to contact one of my friends, Facebook is currently the place to do it – simply because of the number of people who do use it.

I think another problem with Friends Reunited is that it’s lost much of the original purpose and focus. The original idea was simple – log in and find out what your friends are doing. Right now I’ve been there and done that. I don’t actually care anymore what everyone from school is up to; and the people I am vaguely interested in are all on Facebook.

In place of the focus of the original site, Friends Reunited now offers an expanded set of features, including Genealogy (Genes Reunited of course!) and dating.

So has the horse already bolted? Alexa traffic graphs seem to suggest that interest in Friends Reunited did increase markedly after the new launch (June 2008), although shown over a ten month period traffic is still definitely decreasing.

Compare this traffic with Facebook and Bebo and you start to get the impression that the founders of Friends Reunited got a good deal, and maybe ITV should have kept their money in their pocket! (Hint: Friends Reunited is the blue line that runs at a parallel to, and infinitesimal above, the x axis).

It will be interesting to see if the redesign can have a long term impact on Friends Reunited, or if the horse really has well and truly bolted.

Nokia has bought Plazes for an undisclosed amount. Plazes is a German location-aware social network site,  which basically lets users know where their friends are.

As discussed at mashup*’s Being Digital last week, location is a really hot topic right now, with everyone in the industry having a go at creating a location/mobile/social network mashup (although most do seem to be getting it all wrong!) and this will no doubt increase even further with the iPhone 3G. Predictions can easily be made that whoever is able to master this and create a useful service with an easy to use interface - and most importantly, of course, monetises this - is going to reap in the rewards. Nokia’s acquisition shows that they too are on the path to creating a location-aware service.

While many users are looking forward to use location based services, it appears that many aren’t keen to expose their location and trade in their privacy, and this will inevitably raise concerns for the success of these services. Apparently, Plazes’ CEO Felix Petersen was caught somewhere else than he was supposed to be - and I’m sure many of us wouldn’t like to be put in the situation where our partner/friends/family/colleagues can see where we are all the time. Think about that sneaky ’sick’ day at work when you have tickets to an event that you can’t just can’t miss! Or when you want a quiet, relaxing night in at home, so you tell your friend that you can’t babysit because you are going out. Or when you tell your partner you have to work late, but you go out with your friends instead. (By the way, I don’t do any of these things…they are just examples…)

Whatever users think about location-aware services, they are definitely something that we are going to be hearing a lot more about over the rest of 08.

LinkedIn, the social network for business and professional networking has just raised $53m of new funding from investors, taking its total funding raised to over $80m.  Bain Capital Ventures led their latest round of funding giving investors a 5% stake.

Venture capitalists now value LinkedIn at $1bn, which following on from Facebook’s recent $15bn valuation, once again shows the confidence that VC’s have in social networking sites.

LinkedIn now has 23 million members worldwide with around 1.2 million new members joining every month. They plan to use their new funds to add features to the site and expand their service in other languages.

Part of the big overhaul coming to Facebook is going to see a wealth of new functionality. Some of this is already trickling through - you may have noticed the very basic chat function on there.

Now you can also have your music added to your message signatures so everyone can see what you are listening too - and even click through to listen themselves. It’s a nice interaction with FoxyTunes - which is one of the best Firefox extensions ever. Not tested if it ties in with Last FM. I love it when technology starts to ‘connect the dots’ like this as it enriches dialog between consumers and makes a richer environment for digital marketing at large.

- Loving the tune? Facebook message with song signature

While on the subject of Firefox, why not help them set a new world record for most software downloads in a day. At the time of writing this, there are still 11 hours to go and currently the UK is third in the world, just behind Canada and way off the US (of course). Interestingly, the UK has delivered more downloads than Russia, Brazil and China!

- Firefox download day world record attempt

Firefox’s true aim is to step up from number two to number one in the browser market, but their current 10-15% of market share is dwarfed by Microsoft’s Internet Explorer at 80-85%. Slowly people are seeing the light and making the switch but Microsoft’s monopoly deal with PC manufacturers means that a huge percentage of users still us the browser that came with their PC. Which sucks for us digital marketing people as Internet Explorer, particularly IE7 is a pile of horse sh*t and requires additional resources to deliver the same display as Firefox.

On Tuesday I spent the day at the Being Digital Mashup conference. It was a really interesting and insightful day - although there were way too many pitches crammed into the programme.

For those of you that didn’t attend, I’ve put together a summary of the key predictions from the event, outlining what is going to happen within digital marketing over the next 5 years:

• Media fragmentation and the decline of mass audiences will continue as there will be constant shifts in the way consumers live their lives, but this should be seen as a positive instead of a negative. After all, ad spend can be reduced through advertising to smaller fragmented audiences, as there is less money wasted on irrelevant audiences. Advertisers will need to create innovative and targeted ‘marketing pieces’ for their consumers, reaching them via their niche channels.
• Although it is often thought that young people watch less TV than they used to, research shows that there has been a 10% increase in the time that 16-24 year olds spend watching TV each day (since 1997 their daily viewing has increased from 1.61 hours to 1.77) and this is likely to remain constant.
• The penetration of mobile internet is currently at 30%, but with continued promotion from the iPhone and other key players in the mobile industry, this is going to see huge growth.
• Most sites will have an element of social networking or online community in the near future, as consumers continue to want this functionality.
• Online shopping is not going to take over or replace offline retail. Research has proven that consumers like being able to use a combination of online, store and call centre when shopping, and when given this option to shop across multiple channels, consumers exhibit a higher degree of loyalty – their average relationship ‘lifetime’ with the brand is 2 ½ times greater which is very valuable. As a result, the future will see online and retail work hand-in-hand.

However, the two areas that I think are going to have the greatest significance over the next five years are branded content and location. Predictions for these topics are:

• Branded content is going to be huge over the next five years and brands are likely to benefit hugely from being associated with entertaining or relevant content, as indicated by Nigel Conway from Nestle. Their annual advertising budget currently stands at around £5bn, of which £3.5bn is spent on TV advertising. However, Nigel believes that in 7 years time, this £3.5bn will be spent on branded content. Research has shown that branded content is the most popular of all advertising formats, with 67% of all consumers finding it acceptable or valuable.
• Location is going to play a major part over the next few years, as GPS and mobile internet become more widespread. We all know how to find things on a map if we have the postcode, and with GPS we will all know where people are located - but the key question is how do marketers use this data to add real value to consumers? Many companies are trying to create 3D search interfaces and immersive environments for consumers but at the moment they are too expensive and very difficult to develop, and despite all efforts the interfaces are really hard to use.

My prediction is that whoever can create a user friendly, and ultimately useful and valuable location mashup for consumers will be much much richer in the next five years.

The top 5 social networks in the UK (Facebook, Bebo, MySpace, Flickr and Hi5) had a combined total of 38.84 million monthly unique users in April, according to research firm comScore. Yet they have struggled to turn their user popularity into pounds, and recent research by eMarketer has revealed that advertisers will only spend £115m on social networks this year - which is a tiny figure when compared to the overall ad spend online.

However, although they are not reaching their full potential, there has been a healthy 77% growth in ad spend on social networks in the UK since last year, which saw it reach £65m. Advertisers forecast that the growth in ad spend will remain high over the next couple of years at around 52%, but they estimate that this growth rate will slow to 28.6% in 2010, 15.6% in 2011 and 9.6% by 2012.

The main reason suggested for the low ad spend numbers is due to the companies behind the social networks being so young that they have not had time to work out a business model to monetise users.  Looks like they better get a move on…

For more info on the research, visit: http://www.guardian.co.uk/media/2008/jun/05/advertising.digitalmedia