TechCrunch today reported on a new monetization model that Facebook is testing that may lead to the social network losing all credibility around the incentivized sharing debate. The company is apparently testing a new program that allows private Facebook users to pay to have their Status Updates circulated to more of their friends and subscribers. Currently the average status update is only seen by about 12% of your friends and subscribers due to Facebook’s relevancy filter algorithm. A huge debate quickly ensued on TechCrunch about whether this new feature was a spam machine or not. Although many are arguing that this represents a huge breach in Facebook’s anti-spam policy, which is also the guiding principal in the incentivized sharing debate, personally I don’t believe a judgement on that can be made on this without more details.

If this is simply a feature to turn off the filter algorithm so that more of your friends can see your posts, then although it may be a bit of an strange way for Facebook to make money (first limiting your reach and then asking you to pay to undo that limitation), I would not consider this spam because the people who will see your post are your friends or subscribers who have all opted-in to see your posts. In fact when they chose to accept you as a friend, they positively expect to see your updates.  However if this system makes your posts visible to friends who have explicitly opted out of seeing your posts by selecting the ‘Unsubscribe’ feature, then it would definitely fall under the spam category and Facebook’s position on incentivized sharing would become untenable. The details are really important here, and at this point I don’t believe enough is known to be able to make a conclusive argument either way. We’ll follow up on this as soon as more information becomes available.

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Amazing Wunderkind!

by alexsavic on 11/05/2012

This is one of the most amazing interviews I have ever seen. This young man was 16 years old when he raised his first venture capital round. Truly exceptional.

Congratulations Nick!

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Facebook Extends News Feed Offers Program To E-Commerce Retailers

May 11, 2012

We recently blogged about how the News Feed was far and away the most effective channel for non-paid marketing on Facebook, greatly more effective than Fanpage based widgets. Last week Facebook validated that conclusion by making its own discount/coupon code promotion system available to all brick-and-mortar businesses in the US. Pushing coupon code promotions within [...]

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IKEA Launches Display Banner Containing 2800 Products

April 25, 2012

I was really excited today when I was sent a link to a new shopping banner from IKEA titled ‘The Smallest Store in the World‘, which said it contained over 2800 products inside the banner. Immediately I thought it was going to be a shop in banner solution, but unfortunately it was only a standard [...]

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Incentivizing Consumers Is Always Going To Be There

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There was a really interesting discussion at the London Web Summit around mobile location services and how they are being used for marketing. The conversation quickly centred around social marketing and how shopping incentives are used as a marketing tool within mobile. Bonin Bough, VP of Global Digital and Consumer Engagement at Kraft Foods, commented [...]

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April 21, 2012

Krystal Peak at Vator reported recently that a Nielsen study showing that while less than half of consumers today trust paid-for advertising such as TV or magazine commercials, a whopping 92% of consumers trust product recommendations from friends. Vator quotes Randall Beard, global head, advertiser Solutions at Nielsen, as saying: “Although television advertising will remain [...]

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Expandable Banner Ads Massively Outperform Non-expandables

April 17, 2012

We recently came across a report from PointRoll that shows that expandable banners ads significantly outperform non-expandable ads. The full study results were as follows: ” o For driving interest: Brand Search and Category Search – users who entered brand or category search terms in a search engine o For driving brand searches: Expandable ads [...]

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Incentivized Sharing on Facebook

April 12, 2012

A couple of things to mention at the beginning of this post: The first is that officially incentivized sharing is not allowed by the Facebook Platform Policies Terms of Service where in Article IV it says : “You must not incentivize users to use (or gate content behind the use of) Facebook social channels, or [...]

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NextWidgets Tips For Delivering Effective F-Commerce Results

March 12, 2012

It’s never boring in the world of Facebook commerce. One minute vendors are raising multi-million dollar VC deals and every brand worth its salt is pushing for a major F-Commerce strategy, and the next minute the party is over, TechCrunch and Bloomberg are reporting that F-Commerce is dead and Facebook stores are shutting their doors [...]

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