Things never seem to stay the same in the world of Facebook.  Since December when the social network changed its default settings to share users’ profile information with anyone, unless a specific user opted out, Facebook has received a healthy amount of flak from privacy advocates and regular members eager to keep their profile info to themselves.  Facebook CEO, Mark Zuckerberg, then defiantly declared we were headed to “a web where the default is social” last month when he expanded his definition of “anyone” – now the network was not only opening up profiles to other users, they were beginning to open up profiles to third-party websites.

Quitters Far From Winning

Facebook’s privacy battle has only escalated.  The recent changes prompted a small but fierce group of insurgents to mobilize behind “Quit Facebook Day,” adopting the final day of the month of May as their D-Day, publishing on their site: “If you agree that Facebook doesn’t respect you, your personal data, or the future of the web, you may want to join us.”  As of this blog post, the QuitFacebookDay.com movement is just shy of 12,500 pledges to quit on the 31^st.

Facebook, which was probably hoping to lay low for a little while, also grabbed the cover of Time Magazine, due to hit newsstands (coincidentally) on May 31 with an article on the privacy concerns of the social network, called it the “the Web’s sketchy Big Brother, sucking up our identities into a massive Borg brain to slice, dice and categorize for advertisers.”  For all the doomsday rhetoric, worries over the site have yet to materialize into any concern regarding the overall stability of the network; the Quit movement would need to increase its members by 400 times to equal 1% of the total Facebook userverse.

Shift in Privacy Policy on the Horizon

Naturally looking to avoid Time Magazine’s characterization, Facebook has signaled today that they are reconsidering their privacy settings.  From a series of crisis management meetings of senior staff for the social network, all agreed that the privacy settings were at best confusing and at worst exploitative.  It is unclear at this point whether these changes would include an unlikely abandonment of Zuckerberg’s “open graph” proposal he unveiled last month or will satisfy privacy advocates.  Facebook, nonetheless, stresses its desire to remain “user-friendly,” thus fueling speculation that the default setting may be switched back, meaning only those users who opt-in will be sharing their public information with the vast public of third-party websites.  This would likely satisfy their near 500 million person network, as we only want to have a choice in the matter.  All in all, the flak Facebook faces nor the U-turn Facebook management is about to pull will likely hurt the stability of the massive network.  Sometimes things change while remaining the same.

A recently released report by Marketing Charts titled “State of Inbound Marketing Report” from HubSpot, reveals a growing trend of brands focusing their energy and funding on “inbound” marketing versus “outbound.”  Outbound techniques have long been employed and still constitute the majority of marketing techniques, but that is beginning to change.  Last year’s numbers indicated brands were beginning to rely more on inbound marketing techniques to generate leads; this year the outbound marketing budge­ts contracted further, closing the gap between the two opposing approaches.

What’s the Difference between Inbound and Outbound?

So what exactly constitutes an inbound approach versus an outbound approach?  And what techniques are brands turning to?  Essentially, an outbound approach is that where a marketer pushes his message out to the masses whereas an inbound approach is designed to pull in people who are already looking for your product or service.  HubSpot classified these techniques based on how important they were perceived by the company, and also allowed for multiple responses in order to account for brands that place value in more than one technique.  From their data, we see that popular and time-tested outbound techniques, such as direct mail and telemarketing, contracted 1% and 6% respectively, only generating 10% of leads each.  Trade shows remained flat at 10% importance among respondents, meaning outbound techniques are preferred by less than 1/3 of brands.

Meanwhile, inbound techniques have become increasingly important to brands.  Paid search and AdWords were the only inbound methods that fell in importance, now at 22%.  However, social media, company blogs, and SEO methods have all increased in importance to brands, with social media and SEO methods important to 60% and 59% of companies, respectively.  Company blogs were claimed to be important to 49% of the survey’s respondents.

Follow the Money, Inbound Marketing Budgets on the Rise

But let’s get down to the bottom-line: company budgets.  When asked whether budgets for inbound marketing strategies increased or decreased for the year 2010, 51% of respondents claimed their budget had increased, with an additional 37% claiming it had remained constant.  This means that 88% of American companies have maintained a healthy budget for inbound techniques, such as social media and SEO marketing strategies.  Furthermore, of the companies that claimed to have a lower budget for inbound marketing campaigns, 92% claimed that the economy, not performance, was the reason for the decrease.

Specifically, social media campaigns returned high confidence numbers from brands, with four in 10 companies overall acquiring customers from major social networks.  Businesses are increasingly placing their confidence in inbound marketing strategies, believing social media and SEO to be the two most important channels in gaining leads and bolstering their brand image.

Facebook CEO, Mark Zuckerburg, surprised his almost 500 million man strong user-verse this week by unveiling new features for the social network at the F8 Developer Conference in San Francisco.  Some initial response has been hyperbolic, claiming an end to the Internet as we know it; however, conventional wisdom indicates that major changes to one of the Internet’s most popular Websites will doubtlessly impact our online experience in a dramatic way.  Zuckerburg’s vision is extraordinary and revolutionary; in his keynote, Zuckerburg proposed the Web as a social being, where you, your friends, your brands , and your favorite bands (among other things) are all a part of the experience.  Ultimately, Facebook is attempting to socialize the Web in a much deeper way than any previous vision.

Open Graph to Blur Existing Distinctions between Websites

The main feature of Zuckerburg’s vision includes the “Open Graph.”  The CEO highlighted current issues in connecting Facebook friends to one another through their Yelp or Pandora accounts, leaving many people unconnected precisely when they are sharing informed personal insight.  As a result, Zuckerburg has proposed the Open Graph, blurring the lines of current distinct Websites.

The Open Graph is essentially Facebook’s method for reading tags from other Websites to decipher what information their users are “liking.”  For example, IMDb starting immediately will include “Like” buttons for films, and Facebook will publish your recent favorite film. Likewise, favorite plays on Pandora will be published on your profile. Furthermore, this process will be fluid, allowing for information from a CNN article –  liked on CNN.com and published on Facebook –  to appear when you hover over the News Feed story.  Facebook has paired with major partners – including Microsoft, CNN, and ESPN – ensuring that there will be enough Websites from which users can begin to test these features.

A lot to “Like” about the Changes to Fan Pages

For brands and businesses, it just got a lot easier to gain fans.  Zuckerburg announced that a single line of code will integrate a “Like” option onto Websites, so that one click can ensure an interested customer has connected to the brand via Facebook. Just like the major partners, brands that include this code will make their website, a fan’s News Feed, and their fan page separated by less than three clicks.

There are skeptics who question whether the public desires to be so steeply invested in Facebook, or social networking for that matter, that are unsure of whether these changes to Facebook will indeed succeed.  It is important to keep in mind that Facebook’s 500 million person strong network can certainly find a sizeable group of test subjects.  The future of social networking and the Internet is uncertain; however, it seems there’s consensus to the claim that major changes are in the pipeline.

Long the subject of speculation and prediction, the world’s most active micro blog, Twitter, announced major changes to their social network in an attempt to position their network as a profitable enterprise.  Twitter Feeds will no longer be free of the influence of the almighty dollar as Twitter unveiled its new Promoted Tweets function, which is basically Adwords for Twitter, and TweetUp, the latest development out of Idealab which is a search engine and bidding marketplace that works in collusion with Twitter.

Twitter offers advertising partners top post

On the Twitter blog, the company enumerated specific expectations of the advent of Promoted Tweets.  Advertising partners can bid for keywords to ensure their tweets reach the top of the pile once a certain keyword is searched for, much akin to the Google Adwords model.  Twitter lined up commercial partners to start using Promoted Tweets that include Starbucks, Virgin America, Best Buy, Red Bull and Bravo, and offers as example that Starbucks Tweets will always turn up first for a Twitter search for the term “coffee,” provided Starbucks continues to bid on the term.

Twitter emphasizes that they are only in the first phase of their Promoted Tweets program and insists that the promotional aspect of the tweet placement does not mean a decay of quality.  Promoted Tweets, according to Twitter, must meet a higher standard than your average tweet, resonating with users and garnering retweets to maintain its placement as a top tweet.

TweetUp seeks to establish bidding marketplace

TweetUp is a bit more complicated than Twitter’s Promoted Tweets as it utilizes an algorithm taking into account a tweet’s author, number of followers, influence score, number of retweets, along with the user’s bid for their tweet.  Keywords will cost 1 cent per impression; however, if a tweet does not meet the aforementioned qualifications, there is no bid high enough to launch it to the top of the feed (like an Adwords quality score).

All in all, major changes lie ahead for the social network taking its first steps toward monetization; however, Twitter promises the integrity of its network will be maintained, if not emboldened, as the white noise of real time updates won’t hide relevant tweets in the shuffle.

You may know how many friends, followers, and connections you have on your various social networking sites. But do you know how many are actually agents from the FBI, looking to comb through your profile and pictures for criminal leads? Maxi Sopo, a fugitive living abroad in Mexico, sure didn’t when he began posting Facebook status updates saying he was “loving it” and “living in paradise.” While Sopo had been careful to stay private on his social networks, unfortunately for him, his list of friends was not. And so — with the click of a button – a friend request was made, accepted, and the Secret Service was able to track down Sopo’s location and arrest him.

Kind of makes you re-think the last friend request you accepted.

But this is how U.S. law enforcement agents are updating their tactics in a world that’s become increasingly more connected through social media. What’s most surprising, though, is the lack of boundaries for federal authorities within these spaces. Previously, the stories revolving around investigators catching crooks online involved a lot of criminal stupidity: Thief caught after stopping to check Facebook. Bank robber arrested after boasting of crime on MySpace. However, today’s federal authorities are proactively seeking evidence using social networking sites. Some of these investigative techniques include verifying alibis though Twitter messages, uncovering illegal activity through Facebook photos, and using Google Street View to investigate taxpayers. Even more, because of unclear regulation online, agents are currently able to impersonate a suspect’s family member or friend under the guise of a social networking account.

So how concerned should I be?

Assuming you’re a perfect citizen and have absolutely nothing to hide, keep on tweeting and posting to your heart’s desire. For the rest of us though, use some common sense about online privacy. Be sure you understand who you’re accepting as a friend and why you’re accepting it now. Sift through and remove any incriminating pictures from your profile. And be discreet about not only what you’re posting but who can see it (there’s some great privacy filters in Facebook you should be aware of). Until there’s more regulation on what the Feds are able to do online, your best bet is to be cautious.

Or, at the very least, not accept that friend request from the Secret Service.

So we know the postman always knocks twice, and that the USPS will deliver your mail through rain, sleet, or snow, just not on Sundays.  But as snail mail has been replaced by email, email has been increasingly replaced by its cooler cousin: Facebook messages.  As the number of users has exploded, so too have the number of transmissions through Facebook messages.  Which leads to the latest hiccup in the world’s most popular social network.

Last week an undisclosed number of private messages were misdirected by Facebook’s servers to unintended recipients, originally reported by a Wall Street Journal writer who fell victim to the server snafu.  While spreading general confusion, these messages also offered snapshots into the lives of other Facebook members. Messages ranged from teenagers lamenting their sweetheart not asking them to the prom to even death threats.

A Selection of mis-delivered messages:

1.“Until I start hearing some thank yous from you, I will be unable to give you rides home after dance.”

This raises great questions over modern parenthood.  Are today’s adolescents so plugged in their parents need to Facebook them in order to garner a thank you?

2. “The jealousy, the vibes, and what I hold dear to me made this whole weekend hard. The cuddling, truth or dare game, the texting back and forth for long periods of time, and the whispering back and forth for a long time got to me.”

Unrequited love and intrigue has never seemed quite so titillating as when it’s delivered through a Facebook message, where you can simultaneously poke the object of your affection.

And finally,

3. “I took my stuff off don’t want to ruin your life for you. So you can continue to cheat on facebook I don’t care anymore. I have asked you please not to do things but you keep on and on. So you are listed as married but that is because my status is gone. Too bad everything had to end over a f*****’ website. Wow that was worth it to you I guess.”

The age of question of who gets to keep the circle of friends has only gotten messier in the digital age, wherein, it appears, all record of a relationship must be cleansed from that “f*****’ website.” The question remains whether a post-marriage restraining order will mandate these two be defriended.

How About We…

Go gallery hopping in Chelsea this Thursday.  Attack the crossword in a quiet café.  Take a walk across the Brooklyn Bridge.  Go skin-diving in the Maldives.

Finally, an online dating site dedicated to, in the words of UrbanDaddy, finding “like-minded hedonists.”  Flipping the online dating scene on its head, new matchmaker “How About We…” lets you first propose a date, then find someone to ask out who is mutually interested in that activity.

Previous online dating platforms have matched users by interests or “chemistry;” this new model aims to find people who enjoy doing the same things when out and about in New York City.  To get a sense of your style, the site presents you with a series of sample dates, to which you can respond with interest or skip over.  Based on your reaction to these samples, the site will try and show you dates proposed by other users that may be of interest, as well as allow you to post your own dates.

Even if you don’t find a love connection, you can at least find someone with which to enjoy even the quirkiest of habits…from weekend-long Chinese checkers tournaments to blindfolded knife-throwing lessons.

The site will officially launch in mid-March, but if you sign up now during the beta phase they’ll give you 3 months of free dating.  Check it out at www.howaboutwe.com

Luxury Brands and Social Media: an Oxymoron?

Luxury brands are moving away from small targeted social networks, according to Mashable columnist Samir Balwani.  Balwani lays out the three main obstacles for luxury brands in social media:

1. Luxury = exclusive.  Social media = inclusive. The loyalties of each lie in almost polar opposite ideologies.

2. Luxury brands uphold a hesitancy toward all things experimental.  They are classic and timeless, not fans of following new fads.

3. New ventures = expensive invoices. Luxury brands put high priority on aesthetics.  Aesthetically pleasing applications or web pages for social media can often rack up the bills.

For these reasons, it has been tough for web users to find an agreeable juxtaposition of social and luxury.  But with Facebook recently reaching the ranking of #2 most popular website in America, along with a slew of other encouraging statistics enumerated in a previous post, it seems that brands can no longer ignore a growing market of online socialites.  Add another attractive element to the mix—a study recently released by Unity Marketing, claiming that nearly 80% of “affluent luxury consumers” belong to a social network—and the social media presence becomes almost essential.

The new frontier for social media networks is at our fingertips.  Literally.  More and more cell phone users are switching to smart phones, giving rise to location-based mobile social networking.  While location-based applications have long been available on the shelves of the iTunes App Store, they’ve largely collected dust, lacking the bells and whistles to keep people from “checking-in” on a regular basis.

Loopt leaves much to be desired

Such was the case with Loopt, the seasoned veteran in the battle for smart phone networking app supremacy.  Introduced in 2005, Loopt relies primarily (if not solely) on the attraction of keeping tabs on your friends’ coordinates at any given time.  Later generations of the application, along with similar competitors, have imported information from Yelp or CitySearch in order to present users with a list of dining or drinking options nearby as well.

Foursquare leads the competition

Other applications have introduced new weapons in response to the primitive GPS-based technology of Loopt.  Most prominently, Foursquare challenges its network to collect points at check-ins and earn badges and mayorships, complete with scoreboards and term limits.  Now available in over 100 metropolitan areas, Foursquare is the leader of the pack in location-based mobile networking, as the application synthesizes information from Yelp and enables friends to meet-up or share tips in absentia.  Furthermore, as the size of the network has grown, so too have the number of offers and coupons up for grabs.  Even some forward-thinking bars offer a free drink to the rightful Foursquare mayor of their location.  The rapid check-in and point scoring system does have its shortcomings as well: as successful as Foursquare is in New York City, don’t hold your breath waiting for its arrival in Branson, Missouri.

New challengers offer innovation to the location-based app

Behind Foursquare stand a few guerilla insurgents aiming to displace the reigning king of location-based networks.  Buzzd is aimed at twenty-somethings, as it seeks to provide its network with the bars and clubs that are trending or popular in real-time.  Gowalla brings a populist approach to the application, allowing for users to design tours through Central Park’s main attractions or Texas BBQ pits, thus encouraging more network members to compete for notoriety and respect, rather than points.

A battle between location-based networks lies ahead, but so too do new competitors and innovations to existing networks.  As this competitor only makes applications better, location-based social networks will continue to innovate and incorporate new strategy—representing the future, portable portal to consumers.

At the start of the new decade, many are questioning what lies ahead for social media networking sites.  Twitter remains the target of skeptics who point to stagnant membership and mock the micro-blogging mecca. Simultaneously, tweeters and commentators have come to the site’s defense, alleging Twitter is here to stay.

Skeptics point to mediocre 2009 in numbers

While the latest social media network reported a small bump in membership in December, its end of the year numbers were a staggering 24% less than June 2009.  Ironically, while Twitter was featured more and more frequently in cable news broadcasts – and stood at the center of the Iran election coverage in June – the network hemorrhaged members.  Twitter’s growth problem has thus become a billion dollar question: how can the social network grow? Some analysts are pointing to the immeasurability of new Twitter members, as an increasing proportion of members are tweeting from mobile devices and via apps, which were not captured in the statistics.  Others claim Twitter has not yet reached a critical mass, like Facebook already has, encouraging potential members to join to keep track of everyone else they know.

Twitter makes sharing information simple

Yet, Twitter remains extremely popular and has been put to great use recently in light of the earthquake in Haiti, as tweeters are sharing thoughts, needs, websites for charity, and prayers through the social network.  New York Times media reporter, David Carr, remains optimistic about the future of Twitter.  In his article titled “Why Twitter Will Endure,” Carr argues that Twitter allows for the consumption of a massive array of information.  Yes, people tweet about their choice of cereal, but they are also sharing news articles, videos, blogs, and discussion boards where responses are not limited to 140 characters or less. As Steven Johnson, another journalist and technology commentator for TIME, observes, “the history of the Internet suggests that there have been cool Web sites that go in and out of fashion and then there have been open standards that become plumbing. Twitter is looking more and more like plumbing, and plumbing is eternal.”

In case you didn’t know, we’re in tough economic times.  These economic conditions have drastically cut budgets across the nation and world, leaving meager allowances for marketing and advertising in its wake.

Nonetheless, expectations for 2010 remain optimistic.  In a new study released yesterday, StrongMail reveals nine out of ten business executives plan to maintain or increase their marketing budgets.  Execs aren’t thinking conventionally for the new decade either, instead the survey’s respondents indicated they were open to marketing strategies that utilize the Internet and maximize their dollar.  Next year, 69 and 59 percent of business executives anticipate increasing their email and social media marketing, respectively. Another 42 percent claimed they expect to spend more on search engine initiatives, such as SEO and PPC.  The survey’s results indicate a migration to internet marketing tactics, as advertising and direct mailing initiatives are expected by less than 30 percent of execs.

Furthermore, the study showed a desire among business executives to combine the tested and proven tactics of emailing potential customers with social media.  Execs did not, however, demonstrate uniform confidence about how they would go about implementing such strategies in the upcoming year.  Instead, one out of five executives claimed they had no idea where to begin.  With more businesses seeking to establish an online presence in hopes of finding cheaper alternatives to conventional advertising, it is certain that social media marketing and search engine initiatives will play integral roles in the year 2010.