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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.

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.

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.

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.

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

New research by the Press Complaints Commission has revealed that nine out of ten people in the UK think there should be tighter regulation of information on social networking sites.

The vast majority of participants said they would like sites such as Facebook, Bebo and MySpace to follow specific rules and regulations to help prevent the abuse of personal information such as private photos, instead of them each having their own set of t’s & c’s.

For many, the potential for abuse of private information is an increasing concern, not just because of the threat of criminal activity, but also because information is increasingly being used by the media. Many media companies were criticised last year for the “digital doorstepping” of victims of the Virginia Tech shooting spree.

Of course, the other side to this argument is that people shouldn’t really be uploading any personal information or photos that they wouldn’t want others to have access to in the first place. As Charlie Beckett, the Director of Polis (a journalism thinktank at the London School of Economics) says “If you take pictures and put them on Facebook, you’ve deliberately surrendered your privacy.”

Sir Christopher Meyer, the chairman of the PCC, said that there is an “unprecedented scale” of information being put on to social networks, and suggested that “there is a need for public awareness about what can happen to information once it is voluntarily put into the public domain.”

For more info on this research, visit http://www.guardian.co.uk/technology/2008/jun/05/privacy.socialnetworking