Showing posts with label rubicon. Show all posts
Showing posts with label rubicon. Show all posts

Saturday, 13 December 2008

Proposition 8 and community review sites: Everyone loses

What happens to a community review site when members of the community use it as a weapon against people they don't approve of? Sites like Yelp and Citysearch are finding out, as users target businesses that supported California's Proposition 8 (the state's recently-enacted gay marriage ban). The results so far are not pretty. They illustrate some of the weaknesses of online reviews, and the complexities of managing a community site.

It's a learning opportunity for any company that relies on online reviews or runs a website that allows user comments. I wrote about it over on the Rubicon site (link).

Thursday, 23 October 2008

Everything you always wanted to know about web community, and then some

It's been a long time since I posted, and I apologize. In addition to doing a bunch of work for clients at Rubicon, I have been preoccupied with a big strategy project we just finished, on online community. We released the results today, and I think you might find them interesting, so here's a summary.

In our strategy work with tech companies, we're frequently asked about web communities -- how they operate, what they can and can't do, and how a company should work with them. The companies we deal with generally fall into three camps when it comes to community:

--Many companies are still learning about online community and don't know what to do or what to expect.

--Some companies have already tried some online community activity, but were disappointed -- often because they attracted only a few enthusiasts rather than the masses of end users they expected.

--And of course some companies run successful web communities, either as a sideline or as their core business. They're very hungry for information on how other communities operate, and insights on what they could do better.

To help deal with all of those questions, we conducted a study of online community in the US. We surveyed more than 3,000 US web users on their overall internet usage, and then dived deep on their use of online communities and what impact those communities have on their lives. I know some of you will be disappointed that the survey is US-only; we'd be delighted to repeat the research in other parts of the world if anyone wants to sponsor it ;-)

Meanwhile, here are some of the key things we learned:

--Small groups of enthusiasts dominate most online conversations, but that doesn't mean online communities matter only to a narrow segment of people. Most web users read community content rather than contributing to it, and are strongly influenced by the things they see there, especially product reviews and recommendations. Those reviews are now second only to word of mouth as a purchase influencer for web users.

--Because most web users are voyeurs more than contributors, if you're running an online discussion, you should think of it as theatre -- it's a performance in which the community leader(s) interact with a small group of contributors for the education and amusement of the rest of us. All the web's a stage, but we're not all players in it. At least not equal players.

--This means companies that turn away from web communities because they're populated mostly by enthusiasts are missing the point. They've mistaken their fellow actors for the audience. If you're running a community, you need to take care of the active participants in a community so that the rest of the audience will watch and learn.

--If a company needs more incentive to work with the Internet, it turns out that the web has also become the number two source of product support information for web users. After checking the manual, web users are more likely to check a company's website for information or search the web than they are to take traditional steps like calling the manufacturer or asking a dealer. That will be comforting to many companies that want to reduce their support costs, since phone support is very expensive. But how many of those companies have bothered to put detailed support information online, and make sure it's well indexed by the search engines?

--There are an enormous number of tidbits in the study regarding web use. A few items that stood out to me include:
  • -About a quarter of US web users say they have dated someone they first met online.
  • -Although Twitter and SecondLife get a lot of press, their audiences are very narrow when you compare them to major social sites like MySpace, Facebook, and even LinkedIn.
  • -Yahoo is the second most valued website in the minds of US web users, after Google. It's ahead of major web properties like YouTube and Facebook. All of the negative press about Yahoo sometimes makes people forget how strong its user base is.
  • -The major social networks are much more satisfying and useful to teens than they are to adults. In fact, satisfaction with the social sites declines steadily after age 14.
  • -Since we're coming up on an election in the US, it's interesting to look at political ties on the Internet. Democrats are more active online than Republicans, and say the web has a greater influence on their behavior, including voting.
  • -Young people dominate online conversations, with people 22 and under producing about half of all user-generated content and comments. So if you sometimes feel like you're dealing with kids online, it may be because you are.

A full report on the findings is available in PDF format here (link). I know many people don't like to read PDFs online, and besides you can't easily comment on them or link to sections in them. So we've also posted the report online, cut into several sections for easy reading:

Part one summarizes the report, and gives detailed information on the use of community online, and what that means for business (link). This is the section that gives information on community usage rates and the "most frequent contributors" who dominate online conversations.

Part two discusses the leading web destinations in the US, measured in several ways, and discusses the role of community in them (link). This is where you'll find learn about the remarkable membership rate of Classmates.com, the #3 social community site in the US when measured by profiles. We also answer questions like: "Is Facebook more popular than MySpace?" "What do web users value more, Wikipedia or NYTimes.com?" and "What are the top five most-visited types of website?"

Part three talks about the role of community sites in the social lives of Americans (link). This is where we compare Republicans and Democrats online, and look at how different age groups use the social networking sites. We answer questions like: "How many young people lie about their age to get access to websites?" and "How many web users create fake identities online?"


What does it mean to mobile?

I always get that question when I post something that's not directly related to the mobile industry. In part, my answer is that I think this information's useful to anyone who's interested in technology. You're soaking in the internet, and it's good to understand how it works.

But community users don't limit themselves to only PC access, so online community will have a big effect on the mobile industry. It's important to understand what's really happening in the wired internet so you can sort out which mobile web opportunities have the best prospects. For example, I saw a presentation by someone senior at a mobile company the other day, and he was touting the importance of Twitter as a driver for the mobile web. I almost laughed out loud, because I had just been working on our report, and I knew how tiny the Twitter audience is. It's a classic case of people in the tech industry assuming something they use a lot is also being adopted by the masses.

That's not to beat up on Twitter specifically; they have a great base of users. But mainstream they ain't.

The other thing mobile people should think about a lot is the huge role that young people play in the generation of online content. As a group they are vastly more active online than older people. We aren't sure exactly what the cause is. Some of it may be that high school and college students just have a lot more time on their hands, and they spend some of it posting to the web. But probably also some of it is generational. Whatever the cause, it's likely that young users will be some of the heaviest drivers of use of the mobile web, especially the uploading of content and comments.

Not that Apple needs another advantage, but that probably plays to the strengths of the iPhone, because Apple has such a good franchise with young people in the US. It also helps to explain why RIM is trying to reach out to young people. In Europe, I think Nokia and SonyEricsson have a better chance at those users, because their brands are strong with young people. But they'll need the right products as well, which is a subject for other posts...

Thursday, 1 May 2008

Adobe frees mobile flash: It's about time

Today Adobe announced a series of changes to its emerging web applications platform. The changes include:

--The next version of the mobile Flash runtime will be free of license fees. Adobe also confirmed that the mobile version of the Air runtime will be free.

--Adobe changed its licensing terms and released additional technical information that will make it easier for companies to create their own Flash-compatible products.

--The company announced a new consortium called Open Screen supporting the more open versions of Flash and Air. Members of the new group include the five leading handset companies, three mobile operators (including NTT DoCoMo and Verizon), technology vendors (including Intel, Cisco, and Qualcomm), and content companies (BBC, MTV, and NBC Universal). Google, Apple, and Microsoft are not members. It's not clear to me what the consortium members have actually agreed to do. My guess is it's mostly a political group.

Adobe said that the idea behind the announcements is to create a single consistent platform that lets developers create an application or piece of content once and run it across various types of devices and operating systems. That idea is very appealing to developers and content companies today. It was equally appealing two years ago, when then-CEO of Adobe Bruce Chizen made the exact same promise (link):

If we execute appropriately we will be the engagement platform, or the layer, on top of anything that has an LCD display, any computing device -- everything from a refrigerator to an automobile to a video game to a computer to a mobile phone.

If Adobe had made the Open Screen announcement two years ago, I think it could have caught Microsoft completely flat-footed, and Adobe might have been in a very powerful position by now. But by waiting two years, Adobe gave Microsoft advance warning and plenty of runway room to react -- so much so that ArsTechnica today called Adobe's announcement a reaction to Microsoft Silverlight (link).

Also, the most important changes appear to apply to the next version of mobile Flash and the upcoming mobile version of Air -- meaning this was in part a vaporware announcement. Even when the new runtime software ships, it will take a long time to get it integrated into mobile phones. So once again, Microsoft has a long runway to maneuver on.

Still, the changes Adobe made are very useful. There's no way Flash could have become ubiquitous in the mobile world while Adobe was still charging fees for it. The changes to the Flash license terms remove one of the biggest objections I've seen to Flash from open source advocates (link). The Flash community seems excited (link, link). And the list of supporters is impressive. Looking through the obligatory quotes attached to the Adobe release, two things stand out:

--Adobe got direct mentions of Air from ARM, Intel, SonyEricsson, Verizon, and Nokia (although Nokia promised only to explore Air, while it's on the record promising to bundle Silverlight mobile).

--The inclusion of NBC Universal in the announcement will have Adobe people chuckling because Microsoft signed up NBC to stream the Olympics online using Silverlight. So NBC is warning Microsoft not to take it for granted, and Adobe gets to stick its tongue out.


What does it all mean?

Nothing much in the short term. As I mentioned earlier, this is mostly a vaporware announcement (other than the license changes). Some people are speculating that this will put pressure on Apple to make Flash available on the iPhone (link). That's possible, if Apple's real concern was that they didn't like Flash Lite. Now they can port full Flash, or someone else can do it. But if Apple is in reality unwilling to let anyone else's platform run on the iPhone then we'll see other objections to Flash emerge.

The marketing competition to control the future of web apps is continuing to heat up. Microsoft is trying to take the whole thing proprietary by creating a comprehensive architecture, Adobe is trying to drive its own platform, Sun is trying to re-energize Java, Google is making its own moves, and so on (link). Plus, of course, most web app developers today are happy with what they're using now and have little interest in switching to any of the new architectures (check out the dandy commentary by Joel Spolsky here).

It's an enormously complex situation, and it's going to take months, if not years, before we can start to see who's winning and who is losing. Rubicon is working on a white paper that will try to clarify the situation a bit. I'll let you know when it's published.

In the meantime, enjoy the marketing fireworks. The intense competition is forcing companies to innovate faster and open up their products, as Adobe did today. I think that process is good for just about everyone in the industry.

Tuesday, 1 April 2008

Some other things you didn't know about iPhone users

Earlier today I told you about the survey of US iPhone users that Rubicon Consulting just conducted (link). When you publish a big study like this, there are always a few secondary data points that don't fit into the whitepaper -- kind of like outtakes in a movie.

I thought you might be interested in seeing the outtakes. So, here are some other interesting factoids about iPhone users...


How do you carry your iPhone?

To me, one of the most interesting findings of the study was that half of iPhone users are under age 30. I had expected them to be older, because PDA and smartphone users have traditionally been in their 30s and 40s.

With the younger age of iPhone users comes some other differences, including how they choose to carry their iPhones...

"How do you carry your iPhone?"



What was your primary motivation for buying an iPhone?

People usually have multiple reasons for buying a product, some of which they won't even admit to themselves. But when we asked iPhone users why they bought the product, I found their answers to be refreshingly candid...

"When you obtained your iPhone, what was your number one motivation?"



The iPhone is a babe (or guy) magnet

One of the benefits of a popular new technology product is its ability to attract members of the opposite sex when displayed at a party or bar. We assumed that the iPhone would have such an effect, and more almost 70% of iPhone users agreed.

"Does the iPhone help you meet members of the opposite sex?"



Which websites do iPhone users visit?

In our whitepaper on the survey, we reported that most iPhone users say they browse on the iPhone a lot more than they did on their previous mobile device. But we didn't have enough space to report which websites they visit on the iPhone most often...

"Which websites do you visit on your iPhone, and how often?"


I was very surprised that the new social communication service Spitr (link) didn't make the list.


What other devices did the iPhone replace?

About a quarter of iPhone users said it is replacing use of a notebook computer. But given the enthusiasm of iPhone users, it's not surprising that they are also using it to replace some other technology products:

"What else did the iPhone replace?"



What other features do you want in the iPhone?

In the whitepaper, we listed some of the most desired iPhone features. We didn't have room to list other features that people also asked for. Here they are...

"What other features would you like to see added to the iPhone?"

Eight point scale: Strongly interested = 7 or 8, mildly interested = 5 or 6,
mildly disinterested = 3 or 4, strongly disinterested = 1 or 2.


Personally, I was disappointed that Strategic Conquest (link) wasn't listed higher.


When and where do you use the iPhone?

An advantage of a mobile device is that it can go with you anywhere. This leads to some unusual usage patterns that the industry doesn't like to acknowledge. I think it's important to report them.

"When and where do you use your iPhone?"



So now you have the full picture of iPhone users. As you can imagine, these usage patterns are having a profound effect on the thinking and behavior of companies in the mobile industry. I think they probably had a lot to do with Google's decision to buy Sprint (link).

I should add one other piece of information -- as I said in my earlier post on the iPhone user study, the study is definitely not an April Fools joke. However, I can't make that same assurance about the post you're reading now.

Here Comes the Hammer: The Tech Industry's Three Crises

The next few years are going to be extremely uncomfortable, and maybe disastrous, for the tech industry. Political opposition to the big tec...