“The Selling Power of Friendship”
Very interesting article in the Wall Street Journal yesterday about the “Selling Power of Friendship.” The article outlines how Facebook intends to boost revenue by selling targeted and personalized ads based upon the voluminous data it has collected on the likes and Facebook activity of its users. It’s called “Social Context Advertising.”
For example, when Facebook users “like” an ad, Facebook could feature the names of your friends who have indicated they “like” the ad/brand somewhere in the design of the ad.
Shiv Singh, notable social media researcher/practitioner, says, “The social ads are interesting, because you feel that you are connecting to a brand through an endorsement from someone.”
It’s clear from Sheryl Sandberg’s quote that Facebook understands the power word-of-mouth has in improving the effectiveness of marketing.
However, Augie Ray from Forrester brings up a good point about the value of a Facebook fan. Augie says “there is no intrinsic value to a Facebook fan” that is “… until the brand does something to create value with Facebook fans.”
Marketers must not confuse “liking” a brand with “championing” and “advocating” a brand. It’s simple and quick for a person to click a button indicating they “like” a brand. But is it truly meaningful?
Word of mouth takes on a whole different meaning when a person goes out of their way to share their appreciation for a brand by talking about it over happy hour drinks with co-workers, during a dinner get-together with neighbors, and on the phone with a good friend. That’s the true selling power of friendship!
John,
I have already seen this in my Facebook profile, noticing adds that my friends like. It does bring up a bit of a privacy and permission question in my mind. Shouldn’t Facebook get explicit permission from users before using them to endorse advertisements? Makes me wonder if my name is showing up on ads.
Jay … Facebook seems to think just by “liking” a brand, it gives them permission to do social context advertising. I don’t know the ins/outs of the Facebook privacy settings but I’m with you … this gives me the heebie jeebies. (Okay. You didn’t say heebie jeebies, I did.)
Personally, I am extremely selective in what I share and the brands/things I “like” on Facebook because I have the heebie jeebies for getting the heebie jeebies. DIg?
Great observation that “Like” does not mean “Endorse” or “Champion”. If I “Like” something, that doesn’t mean I think all or any of my friends should like it too.