Back to few weeks ago, Facebook has launched several new policies and features which has resulted in a large backlash from media around user privacy. And there’s been plenty of coverage about user privacy concerns, attention on Facebook’s changes on brands hasn’t been adequately covered.
In his latest article – Matrix: How Facebook’s Community Pages and Privacy Changes Impact Brands, Jeremary Wong has did a study and analysis towards unravel what’s at stake –and what brands should do.
Here are some excerpt from the article:
Motives: Facebook Must Go Open To Increase Monetization Inventory
Facebook continues to leap ahead of their competitors in terms of innovation, however that often comes with risks to their community. Here’s why they are making these moves:
* At Facebook, Innovation Means Asking For Forgiveness Later. This is a pattern. Facebook believes in their vision and launches innovative products (by innovation, I mean features others have not dared to do first) and then asks for forgiveness later. They often move faster than their community is ready, from going for .edu to public, exposing wall posts features, to Beacon, they push forward in the name of innovation.
* Aggregation is a Cheap and Effective Way of Creating New Content. It’s a brilliant model to repurpose existing content from other sites, as it’s low-cost for Facebook. However, the downside is that content aggregated from Facebook members wall pages may not have been intended to be created as public.
* Resulting in More Content Inventory for Advertising Opportunities. Facebook knows LINK that in order to compete with massive Google, they need more content to be public. As a default, most features and content types are now being published in public, and you’re seeing why they’re aggregating existing Wikipedia content to drive up SEO and advertising revenue. They must be open to win the end game of monetization.
Facebook has Diminished Relationship with Brands
For the last few years, Facebook has told brands to invest in their relationship through advertising, Facebook Pages, and connecting with brands –yet recent moves erode the relationship.
* The Trend Continues: Power Shifts Away From Brands. Nothing new, more of the same: power continues to shift away from brands, read how some colleges are ‘freaking out’ by the lack of control. However what’s different is that in the past the ‘Groundswell’ as an unstoppable force from customers, brands weren’t expecting their power to be eroded from their media partner, Facebook.
* Brands Frustrated As Community Pages Outnumber Official Page. Facebook must become more open, and expect community pages to continue to be created. (see Tweet testimonial) I’m told that Facebook will migrate community pages to your official Facebook page, but more community pages are continuing to be created.
* Burning The Bridge To Revenue Island Will Take Considerable Repairs. Because these Community Pages were launched without the consent or preview from brands, skepticism has emerged on trust of these new features. If the long term strategy of Facebook is to generate revenues from brands (I know of a 7 figure deal in the works that could be re-evaluated) due to these changes. It’s important that Facebook go back to the core values that communication foster trust, which fosters relationships, which fosters partnerships, which fosters revenues moving.
Continuing read the entire article here