The biggest complaint I had about the facebook Ad / flyer program was the inability to target specific user attributes beyond their subscribed network.  Metrics were weak and performance was well below industry standard for banner ads.

Enter Social Ads. Launched last month, marketers can now target users very specifically - or on pretty much any attribute found in their profile.  Expect clickthrough rates to improve.

Social Ads are also a bit controversial. Your social actions are now fair game.  Now when you create a facebook beacon on blockbuster for example, facebook could serve an Ad that matches your social action. The Ad is published in your newsfeed and therefore will be visible to your entire social network of friends, family, and vague acquaintances.

What makes this controversial is that you now appear to be an advocate or  spokesperson for the brand, product, or service that appears in your newsfeed.

Call it the celebrity effect.

Just as people are influenced by their favorite sports hero or movie actor, facebook assumes that you have your own celebrity status within your social network. It’s like adding spam to word of mouth marketing. I can’t imagine that tasting very good.  This type of non-endorsed sponsorship is bound to turn some facebook users concerned about privacy into badvocates.   

Now here’s a nifty idea - pay your facebook celebrities.  

Treat users like the celebrities that they are within their social network and pay them a nominal fee each time a social ad is served in their newsfeed. It would be just like adding Google ad sense to your blog or website. Its only made Google a few billion dollars - so that model is already proven.

Here’s another nifty idea - instead of paying cash, reward users with points.

Reward facebook users with points for being advocates and spokespeople and allow them to redeem for merchandise from sponsors…or for invitations to special events… or special applications or status within facebook. Or how about redeeming those points for travel? Who needs Air Miles now! 

If the loyalty program is designed correctly, facebook could have the most powerful loyalty program in the world overnight.

I would be an advocate of that program.

Last week Google threw a big party after launching their own developer social networking platform called OpenSocial which effectively competes with facebook’s own API developer platform.

Being the nice company that they are, they also invited all other platforms (including facebook) to join them. Many of them (i.e. LinkedIn, Bebo, MySpace, Plaxo, Hi5, Flixster, Salesforce.com) have already excepted the invitation.

This is significant news that is bound to make the social networking space much more interesting in the coming months as developers can now create one application (or widget) and have the ability to easily port them across multiple platforms.  

Before declaring the end of facebook, consider the following:  

1) Portability of applications across multiple sites is a super idea - but what about portability of identities? People would be far more likely to check out (or check back in) to LinkedIn, Friendster, Myspace and other sites if they had one login / identify that worked across the network of sites.  Do the 50 million facebook users really care that applications are now cross-site compatible? Ah no…

2) Although it’s neat that multiple social networking sites have signed up, individual site policies may heavily impact a developer’s ability to be creative and make money. Some (like LinkedIn), will require approval of the application first and then charge the developer a toll or % or revenue. Unlike facebook which is totally open and toll free, developers (and marketers) may find that a common API does not necessarily equal common or consistent access to the network of sites.  Free and open will always trump mostly free and mostly open.

3) Building portable applications will not make Google’s Orkut more popular in English speaking countries or make Canadians switch to MySpace.  Applications can add to the social graph, but they can’t build or enhance what isn’t there. People joined facebook because all their friends were joining. They stayed on facebook because the user experience is simple for all to interact with.  Applications enriched the experience, but it’s not the core reason why 64% of Canadians return to their facebook profile at least once a day for an average of 32 minutes at a time. Facebook is about the community - not whether or not the applications are portable to other platforms.

To actually encourage mass migration from facebook to other platforms, OpenSocial needs to enable a true open social platform where a single user profile and its corresponding social graph can be accessed from anywhere. That’s a party I will RSVP to in a second.

The announcement of Google buying Jaiku is making waves in the industry. Imran Ali at Mobile Messaging 2.0 is calling it the most significant acquisition ever by Google. I’m calling it the continuation of a cold war arms race between Nokia and Google for world domination. Well World Mobile domination (the new WMD?) anyway.

From the East (or near-East… or near-near-East) there is Nokia. They are already world leaders in the mobile device space and have a neat mobile social network called MOSH. With their acquisition of Enpocket they now have a best in class mobile ad-delivery platform. With their acquisition of NAVTEQ they now have a best in class GPS-based mapping system to compete in the location based services (LBS) space.  With the Gartner Group forecasting that GPS based handsets will grow to around 40% by 2011 from 13% in 2007, clearly GPS or LBS could become the next killer mobile application. With all these acquisitions in the social networking / content space, Nokia is starting to look a lot like Google… 

From the West we have Google. They own search world wide and have become a massive advertising power with their Google AdWords platform…. a platform that is now being offered for free for mobile for a limited time.  Some have speculated that a mobile AdWords platform could subsidize carrier costs for the eventual release of a Google phone into the marketplace. Imagine a 3G phone loaded with Google widgets that costs little to nothing for the consumer. The g-phone could be an i-phone killer… or anything Nokia killer.

Combine the Google acquisition of Jaiku with the other recent announcement that Google also purchased Zingku - a mobile social utility tool that is web and SMS based and we have the makings of a mobile social networking platform that will rival all others.  Consider that Google already has a great installed base with Orkut (which is more popular than facebook in some parts of the world), it wouldn’t be a stretch to say that they’ll be playing in the mobile social networking space very soon. With all these acquisitions and developments, Google is starting to look a lot like Nokia…

Who will win this cold war…or will one buy the other eventually? One thing is for sure, following the mobile space is going to be very interesting over the next 18 months!

UPDATE 10/11: Nokia is also going into mobile search - check out this article on mobile semantic search!