In essence this means you’ll be able to see Recommendations and Like buttons and more, that will enhance your context socially.

In a recent article about Mobile strategies and the three aspects, I elaborated on Location, Relevancy and Immediacy.
When reading the given example by Eric Tseng, Head of Mobile products at Facebook, an interesting application of taking this to the Mobile is of course enhancing geo-centric marketing efforts.

The expansion of Facebook’s Open Graph perfectly fits the “triple play”. By tapping into the opportunities which are provided by location, the large amount of information that is pushed and/or searched by mobile users is contextually enhanced by your network.
How can users differentiate and make choices? Your network can at least help you making that choice.

Facebook is providing the ability to socially augment the users’ experience, instead of augmenting it with extra contents, which only adds more information and no relevant decision-making “mechanisms”.

Facebook’s user base is put on 150 million users, for application developers this could mean a new range of opportunities by the Facebook plugins. Users are already online, are already on Facebook, the extension to third party applications is logical and can fuel the usage of mobile and mobile applications.

What do you think the implications are?

The five game mechanics she refers to, are:
1. Collecting
2. Points
3. Feedback
4. Exchanges
5. Customization
Applying those to the context of social sites is easy to understand, it motivates. Motivation increases usage and usage increases loyalty, traffic, income and so on.

View below the aforementioned presentation:

Yesterday I found a presentation on Youtube of Amy Jo Kim, about the topic of Game Mechanics on Social sites.
Enjoy, it’s interesting.

Her approach to use game words like players instead of users is a start to see sites as games and how you can approach networks with this point of perspective.
Think of Foursquare, Gowalla etc.

What do you think of the gaming approach from a social architectual point of view?

Augmented Reality networks still have to validate their value, but novelty of such networks and the AR technology itself fuel initial interest of users.
A business model for Tagwhat is of course advertising which blends in with other types of tags, creating a less pushy advertising model. Besides this, context/location is key, making advertising more relevant and less disturbing.

Pre-conditions like the following make or break a social network:
*The amount of interaction between people.
*The amount of quality content/interaction between people.
*The amount of people.
*The amount of active people must be big enough, most people are passive, they like to sign up and read, but are not the content/interaction generators.
*The community must be relevant and specific to one or more segments, the more niche, the higher value added, but the fewer people and thus interaction.
*People need to make a choice.

The furthering fragmentation of the social network landscape will create increasing pressure on succession or failure. Augmented Reality has the power to uniquely position a platform in favor of its usage. It’s up to the users to adopt and integrate a network like Tagwhat in their daily lives.

Will such social Augmented Reality networks diffuse or not?
What could business models be for User Generated Content networks like these?

But there’s a paradox when having a closer look at the two terms in relation to the new open business environement.
First let’s decompose ROI and Social Media.

ROI:

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.

Keep in mind that the calculation for return on investment and, therefore the definition, can be modified to suit the situation -it all depends on what you include as returns and costs. The definition of the term in the broadest sense just attempts to measure the profitability of an investment and, as such, there is no one “right” calculation.

For example, a marketer may compare two different products by dividing the revenue that each product has generated by its respective marketing expenses. A financial analyst, however, may compare the same two products using an entirely different ROI calculation, perhaps by dividing the net income of an investment by the total value of all resources that have been employed to make and sell the product.

This flexibility has a downside, as ROI calculations can be easily manipulated to suit the user’s purposes, and the result can be expressed in many different ways. When using this metric, make sure you understand what inputs are being used.

Secondly, let’s have a look at the definition of Social Media:

Social Media is media designed to be disseminated through social interaction, created using highly accessible and scalable publishing techniques. Social media uses Internet and web-based technologies to transform broadcast media monologues (one to many) into social media dialogues (many to many). It supports the democratization of knowledge and information, transforming people from content consumers into content producers. Andreas Kaplan and Michael Haenlein define social media as “a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of user-generated content. Businesses also refer to social media as user-generated content (UGC) or consumer-generated media (CGM). Social media utilization is believed to be a driving factor in the idea that the current period in time will be defined as the Attention Age.

When thinking of both terms and and how they can relate to each other, I conclude that the terms are “forced” in order to create meaning with current understanding and definitions.
The ROI of Social Media is like trying to ascribe ROI to a telephone line.
Part misinterpretation and misunderstanding of both terms and part the necessity to quantify in order to meet business objectives, are reasons why this enigma won’t be solved soon.

Return on Investment is a short term metric, a direct relation between cost and return is calculated, and (short term) objectives don’t have much room for tactics or actions that don’t add direct value to the ROI.
Here’s where the complication is, communication and interaction often do not add direct value to a quantifyable objective (for example sales).
The best example within Social Media is Trust. How can the long term process of gaining and retaining trust be expressed in a ROI?
Surely, when consumers do a purchase (be it a soft or hard conversion), it is the only quantifyable and “visible” action/reaction within a much larger process by the company and other consumers.

The latter is important and the crux within this question.
Social Media is causing a paradigm shift where all conventional wisdoms are becoming obsolete.
One of these wisdoms is the notion of two seperated entities, businesses versus consumers and the interaction between these two, ending up in sales, profit, revenue, ROI and so on.
A revaluation is necessary, in this transparent digital world, the seperation is disolving and consumers are complementing and replacing pieces of business processes.

If consumers become part of the business, how must these external entities be calculated and taken into account?
It’s not only the -direct- cost business cost what counts, but also the indirect and consumer-added related costs which should be taken into account in order to understand the new relationships and impact.

So, what is the real “ROI” of Social Media? I do not have a clear and sustaining answer yet.
A new digital landscape requires as a new way of conducting and quantifying business.
I believe the first step in this paradigm shift is to release the legacy of conventional business rules. Comparison -with old standards- is in this case a devaluation of the real opportunities and power of Social Media.
From there on, known metrics and KPI’s will have new interpretations which explain relations and money flows better than the current ones.

It’s a long learning curve and many challenges won’t be solved within months. Take the business effects of Social Media into long term strategies, set aside budget to research and test this phenomenon. In the mean time, transitions will happen and New and Old ways will meet.

What do you think the ROI of Social Media is?

What I do find more interesting, is the question if this might be or not be, the Gmail killer?
Facebook has one advantage that Google does not have, the social network. Where Google wants to organize the world’s information, Facebook tries to be the global social hub.
70% of the time spent online is attributed to social networking, communication through email is simply an extension of it.
The question is if people would trade Gmail for Facebook email if that simplifies the activity and centralizes these activities on one platform?

What do you think, would people back away from Gmail to Facebook or are the perceived risks too high and has Google diffused so much that it’s not an option for many?

by Richard G. Kastelein

If we all thought the Facebook and Twitter social media growth phenomena were extraordinary, wait until Social TV hits your screens.

And it’s not as far away as you think — not only with the logical IPTV market, but also terrestrial TV. I recently attended the International Broadcast Convention (IBC) in Amsterdam, which bills itself as ’The content creation management delivery experience’. IBC2008 attracted 49,000+ visitors and 1,300+ exhibitors from more than 130 countries. This year is expected to be bigger. Last year, I was part of a team exhibiting at MIPTV in Cannes, and was expecting something a bit similar… but this was almost all about hardware and software and less about the actual formats and programs. However, this was not a disappointment. For embedded in the show there were some jewels… which have profoundly altered my view of Social Media, the future and the implication of reach that will touch billions not millions.

One diamond-in-the-rough was Israeli-based Orca Interactive (link), who was pitching their Social TV product, which was still in Proof of Concept (POC) and this was their first showing to the general public. Orca specializes in IPTV middleware and applications. But they are aggressively moving into social TV. I spoke to CTO Ofer Weintraub (Ph.D.) on their strategy and the nuts and bolts of the technology on offer.

“This is truly social TV — there is nobody on the market with similar offerings,” said Weintraub. He added there is an SDK (Software Development Kit) available now for select partners, but they certainly would not rule out an open API in the future.

And there is tight integration at the database level with website Trustedopinion.com. I discussed the integration with TO founder and CEO Shahar Smirin — whose site topped a million users recently.

“It’s a natural fit,” said Smirin, who then went on to show his web product and how he’s built a viral invite and social ’consolidation’ framework focussed on opinion where one can pile everyone (all your friends, imported/invited) from most major social media sites and really focus on what your friends think about entertainment (mainly movies and theatre for now).

There is synergy between Orca and TO, but let’s now look at Orca. And why this marriage could take social media truly to the masses via IPTV.

One thing to note… Orca Interactive is owned by France Telecom and the 2008 M&A has positioned this duo to take Social TV to a mass global audience. The acquisition last year means that they are well positioned near the ear of one of the world’s leading telecommunications operators and proprietor of the multinational Orange brand. Orange has a base of almost 200 million customers in 30 countries.

There’s nothing overly extraordinary in the makeup of the product — it’s nothing that Internet social media buffs have not seen before. But for TV users, this is going to revolutionize the way they watch TV… from being a passive, solitary, experience into an active, community one.

Here below, you can see recommendations from your friends on a particular movie or program. You can see related VOD products. You can rate it yourself, you can recommend it to a friend, you can see further information and you can send it as a gift to another person (purchased shows are good for 48 hours).

Here you can see your friends’ profiles, chat with them, send them a gift, see their recommends or send them a message.

Here you can send a gift to one or more friends.

And remember, this will all be integrated with your monthly billing. There will be no need for pulling out a credit card and security issues, there will be no need for digging deep to remember your Paypal password. No, the bill arrives like any other or is likely debited from your bank account automatically these days.

One can also set their mood — and then recommendations will be laid out according to complex algorithms and data mining based on your friends and your own data and viewing habits.
As Facebook revolutionized the way advertisers can niche-target their online demographics, Social TV will profoundly change the ad agencies and marketing departments will offer their wares in the television realm. Neilson ratings seem vague, less targetable and will likely become obsolete in TV 2.0.

Equally as interesting, but taking a different tack, is another gem called NDS (link), partially owned by Rupert Murdoch’s News Corporation, which has a reach to over 107 million pay-TV subscribers worldwide. Their latest product, Social TV was also in POC stage and looks a lot more like ’widgetized’ TV rather than a singular network.

Their model is quite different, but also appealing and unique for a number of reasons. One being it lends itself more to an iPhone app store scenario, with plans for an open API, which positions it well for social media developers and long tail monetization of the social TV landscape. But monetization or not will be decided by the operators not NDS. It also has impeccable design with a beautiful interface.

Obtaining details was a bit sketchy due to their PR person being in meetings and there was, understandably, some hesitancy in getting anyone to go on the record.

However, one of the demo managers did talk to me about some interesting API integration potential with Flickr for instance. If you see something interesting on TV you can be simply one click away from viewing images of that place, object or person. Conceivably the same could be done with the Youtube API in the video space or even Lastfm for music for that matter.

Social networking is also alive and well on Verizon’s FiOS TV and new features are being added such as Facebook and Twitter Widgets.  The new Widget Bazaar applications marketplace is located within FiOS TV’s Interactive Media Guide.

Verizon has worked with social media innovators Facebook Connect, Twitter, ESPN, Veoh, blip.tv, and Dailymotion to create a converged Internet-to-television experience that lets FiOS TV subscribers connect with others while watching TV, plus search and view a variety of online, personal PC-based videos on their television screens. Verizon also plans an open development platform (SDK) to permit developers to write interactive FiOS TV applications that will be available through the Widget Bazaar.

Customers are saying they love the new “social TV” Widgets, but they want more.  They want to send Tweets, not just look at them.  They want to create their own unique Facebook status messages.

According to Shawn Strickland, vice president, marketing for Verizon  Telecom, Verizon is working with some popular companies on the Web to create the foundation for a high-quality, engaging Internet-to-TV experience.

A recent report by The Nielsen Company found that there are 87 percent more online social media users now than in 2003, with 883 percent more time devoted to social media sites. Also, the number of American users frequenting online video destinations has also increased by 339 percent since 2003.

Subscribers can Tweet about the TV show they are watching or search and follow their friends’ Tweets. Viewers can also update their Facebook status with their own messages. All of this is simply done via the FiOS TV remote control and an onscreen keyboard.

The Verizon At Home blog for the latest on the Widget Bazaar application marketplace.

A Belgian company called Zappware also launched social networking features for its “iView Core” services suite at IBC09. And they had a demo showing how the add-on allows the viewer to connect with friends and family to:

• see what they are watching on their TVs
• exchange favourite lists of TV programmes and VOD movies
• recommend TV programmes or VOD movies to one another
• send VOD movie gifts to their friends
• lock their TV screens onto one another and watch the same content

Koen Swings, CTO & Managing Partner Zappware:

“Social networking has been a buzz word in the past few years, in particular on the internet. With these extensions to our EPG, VOD and PVR products, we now extend social networking from the PC domain to the TV domain, because we are convinced that there is no better environment for sharing TV experiences than the TV itself. In a world, in which people are continuously seeking to connect and in which consumers are willing to embrace new technologies that allow them to connect better and more often, these social networking features on TV will be highly appreciated by viewers. Operators that include these features in their iDTV offering, will be able to offer their subscribers a cross-platform social networking experience, hence adding value to their triple or quadruple play offer and resulting in increased subscriber loyalty.”

So at the end of the day, this is a win, win, win for all — TV stations get better data on their viewers and offer convergence with web ideas and sites, viewers get interactive community-oriented, social television and can make interesting viewing choices based on mood and network of friends, web-based community and social media sites can make more headway into IPTV and broadcast TV, still the Tour de Force of media, and entrepreneurs and developers find a new medium to develop and monetize via new, open-source-philosophy-driven API and SDK environs.

Richard Kastelein, a social media strategist and publisher, is CEO of new startup, Agora Media Group LLC (link), a new creative and innovation agency based in London, UK. Kastelein has been building online communities for over a decade and is an Open Source evangelist. He’s an adept team player – a publisher, writer, photographer, marketing director, web developer and graphic designer with more than 20 years experience in the development and operation of newspapers, magazines, web media and marketing of multinational, companies in international settings.

Facebook, one of the leading social networks with over 350 million users, got a Serious Game on its platform today. Called EnerCities, it gets serious about the energy issues of our world. It is a casual city builder created by the Dutch game developer Paladin Studios. The project has a €1.4M budget, and is funded by the European Commission’s Energy Agency.

Rock-Paper-Scissors

“The game is about managing a virtual city”, says Dylan Nagel, who is product manager for EnerCities and co-founder of Paladin Studios. We took several elements from other city builders, and brought it down to the bare essentials.”

Players start with a small grid of nine squares and a limited choice of buildings. They then place structures like industrial plots and residential areas. When done well, the city levels up and grows in size. Each level brings more complexity, but also more opportunities for improving one’s score. Nagel explains:

“We tried to model the game after the real world. The triangle of People, Planet, and Profit is a balancing act which is at the heart of the game mechanics. If the player gets this right, it will reflect in the scores. This makes it essentially a rock-paper-scissors dilemma.”

Facebook

While EnerCities was originally designed for a standalone website, the choice for Facebook could be the driving factor for making the game successful. Says Derk de Geus, co-founder
and CEO of Paladin:

“We want to create a thriving community, where players compete for the highest scores and share their experiences with the game. Social Networks have the potential to make this happen.”

While the game does not have a persistent world like most Facebook games, there is a simple scoring system that allows players to compare their scores and rankings with friends. De Geus:

“Players can experiment with different scenarios. One time you play the industrial tycoon, the next an eco-friendly city builder. Either way, the decisions are tough and you will need to compromise. The idea is that you play with the world and experience the outcome.”

European Commission

The game is funded by the Energy Agency of the European Commission, specifically the Intelligent Energy Program of 2007. The €1.4M budget covers not just game development, but several other aspects.

De Geus:

“Roughly 20% of that money goes to the game itself. The other 80% is split between educational material, marketing and impact research, with most of the funds going to the roll-out of the game. It is essential that schools and teachers embed the game in their curriculum, and this requires significant effort. It deserves a big chunk of the project’s budget.”

In fact, Paladin Studios is part of a larger European consortium. The partners include educational institutions from The Netherlands, United Kingdom, Germany, Slovenia and Greece. In addition, there is an energy agency in Granada and an innovation agency in The Netherlands.

“So far it’s working very well, especially considering the international nature of the team,” says De Geus. “The one thing we had to get used to is the pace of the project. We are a small, agile studio, used to working at a fast pace. Working with the E.C. and educational institutions turns weeks into months, and months into years.”

Public Beta

The game is in public beta now on Facebook and on www.enercities.eu. While the current focus of the game lies on electricity, other energy topics will be included soon.

“There are several topics, like peak oil and energy saving, that still need to be added to the game. We are working hard to add these to the next release,” says Nagel. “The official release will be early next year. By then we will have the educational platform in place, and the rollout phase will begin.”

Links

EnerCities Website – www.enercities.eu
EnerCities on Facebook – apps.facebook.com/enercities
Paladin Studios – www.paladinstudios.com
Twitter: www.twitter.com/paladinstudios, www.twitter.com/enercities
Dylan Nagel – www.twitter.com/dylannagel
Derk de Geus – www.twitter.com/derkdegeus

For more information, please contact Paladin Studios at @paladinstudios.com" target="_blank">info@paladinstudios.com