welcome back to segment two of show
eight now we’re going to shift gears and
talk about Google’s I guess arch enemy
so to speak facebook facebook apparently
is making oh sorry facebook now is
generating the fastest growing area of
its revenue from facebook credits right
so they still make a lot more from
advertising I think eleven percent of
their revenues currently our credits
which is small but that is growing like
you know tripling almost anyone from
four to seven to eleven over the last
two years pretty much okay so my
question to you is what are you talking
about percentage growth each other
revenue central Revenue okay cool is
facebook credit facebook’s adsense in
other words a new sort of thing for
facebook that is not reinventing the
wheel credits that existed but that is
going to be the differentiator and down
the road going to be there lion’s share
of revenue or is it something that is
going to plateau and facebook will still
have to make constants money from
advertising um well you know it’s still
early so it’s still hard to say a lot of
people still don’t use credits I think
growth can be deceiving if you just look
at Groupon case in point just because
you grow fast doesn’t mean it’s it’s
going and groupon has gone from the
darling to like the poster child for
everything that’s wrong about a big-time
pariah um but I don’t man he is cheering
right now the biggest maxim group on
side I I wouldn’t see credits though as
their version of Adsense or adwords I
would see it more as their version of
PayPal when ebay bought paypal you know
they’re like we need to really kind of
take online commerce and make it
mainstream I think what Facebook’s move
with credits what’s interesting here is
how they could close more of the web
right now they’re actually already on
Facebook pages big companies can sell
their merch through their actual pages
now they can handle the payment side of
it as well they can keep everything
really inside Facebook I find that
interesting and in terms of their ads
the way marketers you know can target
you through so many different things
either through banner ads based on your
demographic targeting or just keeping
their crap updates in your in your feed
through sponsored stories now those ads
can do so much more than asks you to
click or ask you’ll like it they can
prompt you to buy right then and there
and I find that interesting whether or
not it catches on we’ll probably see
over the next year but if anything if I
was going to draw a parallel draw a
parallel between ebay and paypal rather
than Google and adsense ok so now the
follow-up question is now that Facebook
has this credits let’s call it currency
or product or whatever you want to call
it does where do you see them going like
does it make sense for them eventually
because they make a lot of money I think
the credit sort of spawned out of Zynga
making so much money within the facebook
community where people were basically
using initially Zynga credits i guess
and then facebook woke up and said wait
a second zinc is making more revenue
than we are leveraging our audience so
wait a second we’re going to start you
know charging these credits and Zynga
has to use our credits if they want to
make money off of our audience so that
was for virtual gaming where else do you
see Facebook going and where do they
draw the line right i mean they can get
into gambling at some point i mean i
know gambling in online gambling in the
states is not legal right but I mean
around the world that’s a butt but
forget the extreme buy stuff but where
do you see naturally them going does it
make sense for me to go into banking
does it make sense for them to go into
like telco business well you know I can
try banking isn’t something I know a lot
of so I don’t know if if banking should
be their next move I do want to draw the
paypal analogy because they’re still
offering like an e-commerce financial
service right then but I think their
next step is actually just straight up
ecommerce like i said before i could
shop your products through facebook and
i can click on them and then buy them
through your site now i can do it all
through Facebook and Facebook can get a
cut I think that it can be advantageous
for the retailer even though they have
to fork over a cut they’re reaching an
audience that they otherwise wouldn’t
have had because it’s it’s a big leap
for a user to go from your Facebook page
to your ecommerce store to your check
out if they can go from a Facebook ad
straight to check out you can really
increase conversion sir you always sure
about the importance of focus
specialization now like Craigslist still
I think is known for what I mean okay
they got things like the missed
connections which are cute but I mean
Facebook sorry craigslist boils down
still too you’re looking for stuff like
apartments or whatever is there a risk
that if Facebook starts to sort of get
its tentacles into everything to justify
the 70 billion dollar market value that
it’s being given is there a risk that it
might actually dilute it and then users
don’t sort of use Facebook for as much
as if they just focused on one thing
whether it’s virtual gaming or well I
think Facebook is
been very good at taking additional
features and plugging them in without
kind of getting distracted from their
core product when they bought friendfeed
they pretty much bought it for the
technology and they changed the user
interface everyone bitched but everyone
got used to it and in that move they
kind of you know relegated Twitter to I
guess purgatory for the for all intents
and purposes like yeah it’s still there
it’s still a big player but no one knows
where it’s going so I wouldn’t be too
worried about them getting away from
their course thing at the end of the day
you know you log on the facebook it’s
you’re still there to socialize but
there are these ads there are these
brands trying to reach out to you and a
lot of people do choose to interact with
them but whether or not they make that
move they still stay there to interact
with their immediate social network so
if they can plug in that e-commerce
element and they I think they can do it
successfully I don’t think it would
compromise the core product what do you
think of Facebook’s new sort of products
that they launched recently the feed the
you know all the bells and whistles that
they’ve I think that’s getting a little
bit loud maybe that’s just me I’m old
I’m set in my ways I’m kind of lowes to
change my user behavior why I in the
world I would want to subscribe to
Scarlett Johansson’s feed is beyond me
but that’s just me so I one thing that I
find interesting we subscribe to other
aspects and parts of college when I was
so magical um maybe your panty drawer Oh
focus focus focus focus all right um I
think Facebook has also been good at
turning the switch on things and then
rolling them back they did it with
places when they rolled out places I
thought Foursquare was dead in the water
and recently they kind of just places is
still there you can still check into
places but it’s not a main thing anymore
it’s not as per dub not as featured as
prominent okay so I run a company and so
that means you know I have my hands in
seven eight different functions you know
finance strategy sales marketing blah
blah blah production you have all these
clients and you’re like the guy they
turn to for marketing right so our
vantage points are very different like
when I look at facebook aside from
obviously as a user then let’s say as an
executive so I still see that ok
Facebook is this massive company we have
to embrace it and leverage it blah blah
blah and then there’s always twitter
which i think is actually very useful
foursquare we don’t do much although i
see a lot of it’s been
it’s for commerce and I’ve always told
the facebook at Foursquare guys I’m like
you guys need to engage with content
companies more because you know when i’m
basically traveling or waiting you know
when i have my phone with me i’m
consuming a lot of content i’m not
really doing e-commerce right so so i
think that’s something that foursquare
needs to pay more attention to but but I
still use Twitter and I see Twitter’s
value though Facebook let’s say remains
king of the hill you let’s say you have
the CEO of a company or the VP of
Marketing of a company and he comes to
you with all of this that’s going on
what is like you’re you know
140-character tweet answer to what do i
do and i know it depends but overarching
is there one that facebook is best for
this twitter is best for this foursquare
is best for this or is that impossible
you can’t just give everybody like it’s
completely impossible it depends so much
on your industry your business model and
what your goals are you know okay let me
put you on the spot then watchmojo we’re
a Content company video producer blah
blah blah let’s use that or pick
anything you want pick a shoemaker just
pick one let’s stick with watchmojo um
what would you use it for well yeah just
like and forget what we use it for I
just want like your opinion on the spot
um well at the end of the day you guys
are content producers to what you want
is audience what you want is reach and
in that case Facebook does work for you
you can promote your content effectively
you can keep it featured in sponsored
stories and ads whatever but the point
is is you can get more likes you can get
more followers and these people would
get updates about your content more
frequently you increase your traffic I
don’t know how much it depends on how
strong your community is but yeah it
would work for you because which you
guys want his eyeballs and Facebook can
give you that and Twitter and Foursquare
Twitter can also give you eyeballs um I
don’t know what you’ve done on Twitter
or how successful has been I would
actually I would suspect though for for
watchmojo stuff Facebook would offer a
bit more potential it might be ten
percent more might be fifty percent more
it’s hard to say until you try
foursquare there a geolocation check and
thing you don’t really have people
checking into your your studios that
often so I wouldn’t see so much okay the
only way I see foursquare happening is
let’s say we have a lot of travel videos
we have a lot of history videos so let’s
say if you check in you know the
pyramids in Egypt if we have related
video content on history or travel that
could load up you know or I’m not saying
that
the way to go or if you’re like let’s
say I’m at new york fashion week will
guess what we have like seven hundred
videos in fashion of which two hundred
or from Fashion Week in New York etc etc
that’s I think the kind of thing that
foursquare could do not just with us but
with like every content company where it
loads up because again I think ecommerce
early on everybody was like oh I walked
by starbucks to get an offer and then
people said hold on let’s press pause on
the insanity button I don’t want that
that’s not ecommerce mobile that’s like
horrible spam and now people are like
trying to find clever ways and this and
that but I say you know what again you
guys are all focused on e-commerce
ecommerce e-commerce I think Mobile’s
the bigger opportunities in content
consumption you’re sitting there waiting
time what are you doing well you know I
I don’t think you’re killing time for
foursquare I think they have a better
opportunity to do kind of a Groupon
style thing is they have a huge
marketing machine that if you check into
a place they can hit you it deals for
that place ordeals of nearby places you
know you don’t like the service over the
drink you just ordered you move three
doors down you’ll get two-for-one
martinis I think there’s more potential
there with the content side is when I’m
checking into places I’m either checking
in to meet people or sitting down to a
meal the chances that I’m going to sit
there and consume a lot of content while
I’m out in public especially on my phone
especially if I’m traveling where I’m
paying out the but for data it seems a
lot less likely to be this show has all
been a ruse to get you to just give me
free advice so we could just turn off
the lights all right we won’t take a
short break come back for lightning
round we’re going to cover a bunch of
topics
eight now we’re going to shift gears and
talk about Google’s I guess arch enemy
so to speak facebook facebook apparently
is making oh sorry facebook now is
generating the fastest growing area of
its revenue from facebook credits right
so they still make a lot more from
advertising I think eleven percent of
their revenues currently our credits
which is small but that is growing like
you know tripling almost anyone from
four to seven to eleven over the last
two years pretty much okay so my
question to you is what are you talking
about percentage growth each other
revenue central Revenue okay cool is
facebook credit facebook’s adsense in
other words a new sort of thing for
facebook that is not reinventing the
wheel credits that existed but that is
going to be the differentiator and down
the road going to be there lion’s share
of revenue or is it something that is
going to plateau and facebook will still
have to make constants money from
advertising um well you know it’s still
early so it’s still hard to say a lot of
people still don’t use credits I think
growth can be deceiving if you just look
at Groupon case in point just because
you grow fast doesn’t mean it’s it’s
going and groupon has gone from the
darling to like the poster child for
everything that’s wrong about a big-time
pariah um but I don’t man he is cheering
right now the biggest maxim group on
side I I wouldn’t see credits though as
their version of Adsense or adwords I
would see it more as their version of
PayPal when ebay bought paypal you know
they’re like we need to really kind of
take online commerce and make it
mainstream I think what Facebook’s move
with credits what’s interesting here is
how they could close more of the web
right now they’re actually already on
Facebook pages big companies can sell
their merch through their actual pages
now they can handle the payment side of
it as well they can keep everything
really inside Facebook I find that
interesting and in terms of their ads
the way marketers you know can target
you through so many different things
either through banner ads based on your
demographic targeting or just keeping
their crap updates in your in your feed
through sponsored stories now those ads
can do so much more than asks you to
click or ask you’ll like it they can
prompt you to buy right then and there
and I find that interesting whether or
not it catches on we’ll probably see
over the next year but if anything if I
was going to draw a parallel draw a
parallel between ebay and paypal rather
than Google and adsense ok so now the
follow-up question is now that Facebook
has this credits let’s call it currency
or product or whatever you want to call
it does where do you see them going like
does it make sense for them eventually
because they make a lot of money I think
the credit sort of spawned out of Zynga
making so much money within the facebook
community where people were basically
using initially Zynga credits i guess
and then facebook woke up and said wait
a second zinc is making more revenue
than we are leveraging our audience so
wait a second we’re going to start you
know charging these credits and Zynga
has to use our credits if they want to
make money off of our audience so that
was for virtual gaming where else do you
see Facebook going and where do they
draw the line right i mean they can get
into gambling at some point i mean i
know gambling in online gambling in the
states is not legal right but I mean
around the world that’s a butt but
forget the extreme buy stuff but where
do you see naturally them going does it
make sense for me to go into banking
does it make sense for them to go into
like telco business well you know I can
try banking isn’t something I know a lot
of so I don’t know if if banking should
be their next move I do want to draw the
paypal analogy because they’re still
offering like an e-commerce financial
service right then but I think their
next step is actually just straight up
ecommerce like i said before i could
shop your products through facebook and
i can click on them and then buy them
through your site now i can do it all
through Facebook and Facebook can get a
cut I think that it can be advantageous
for the retailer even though they have
to fork over a cut they’re reaching an
audience that they otherwise wouldn’t
have had because it’s it’s a big leap
for a user to go from your Facebook page
to your ecommerce store to your check
out if they can go from a Facebook ad
straight to check out you can really
increase conversion sir you always sure
about the importance of focus
specialization now like Craigslist still
I think is known for what I mean okay
they got things like the missed
connections which are cute but I mean
Facebook sorry craigslist boils down
still too you’re looking for stuff like
apartments or whatever is there a risk
that if Facebook starts to sort of get
its tentacles into everything to justify
the 70 billion dollar market value that
it’s being given is there a risk that it
might actually dilute it and then users
don’t sort of use Facebook for as much
as if they just focused on one thing
whether it’s virtual gaming or well I
think Facebook is
been very good at taking additional
features and plugging them in without
kind of getting distracted from their
core product when they bought friendfeed
they pretty much bought it for the
technology and they changed the user
interface everyone bitched but everyone
got used to it and in that move they
kind of you know relegated Twitter to I
guess purgatory for the for all intents
and purposes like yeah it’s still there
it’s still a big player but no one knows
where it’s going so I wouldn’t be too
worried about them getting away from
their course thing at the end of the day
you know you log on the facebook it’s
you’re still there to socialize but
there are these ads there are these
brands trying to reach out to you and a
lot of people do choose to interact with
them but whether or not they make that
move they still stay there to interact
with their immediate social network so
if they can plug in that e-commerce
element and they I think they can do it
successfully I don’t think it would
compromise the core product what do you
think of Facebook’s new sort of products
that they launched recently the feed the
you know all the bells and whistles that
they’ve I think that’s getting a little
bit loud maybe that’s just me I’m old
I’m set in my ways I’m kind of lowes to
change my user behavior why I in the
world I would want to subscribe to
Scarlett Johansson’s feed is beyond me
but that’s just me so I one thing that I
find interesting we subscribe to other
aspects and parts of college when I was
so magical um maybe your panty drawer Oh
focus focus focus focus all right um I
think Facebook has also been good at
turning the switch on things and then
rolling them back they did it with
places when they rolled out places I
thought Foursquare was dead in the water
and recently they kind of just places is
still there you can still check into
places but it’s not a main thing anymore
it’s not as per dub not as featured as
prominent okay so I run a company and so
that means you know I have my hands in
seven eight different functions you know
finance strategy sales marketing blah
blah blah production you have all these
clients and you’re like the guy they
turn to for marketing right so our
vantage points are very different like
when I look at facebook aside from
obviously as a user then let’s say as an
executive so I still see that ok
Facebook is this massive company we have
to embrace it and leverage it blah blah
blah and then there’s always twitter
which i think is actually very useful
foursquare we don’t do much although i
see a lot of it’s been
it’s for commerce and I’ve always told
the facebook at Foursquare guys I’m like
you guys need to engage with content
companies more because you know when i’m
basically traveling or waiting you know
when i have my phone with me i’m
consuming a lot of content i’m not
really doing e-commerce right so so i
think that’s something that foursquare
needs to pay more attention to but but I
still use Twitter and I see Twitter’s
value though Facebook let’s say remains
king of the hill you let’s say you have
the CEO of a company or the VP of
Marketing of a company and he comes to
you with all of this that’s going on
what is like you’re you know
140-character tweet answer to what do i
do and i know it depends but overarching
is there one that facebook is best for
this twitter is best for this foursquare
is best for this or is that impossible
you can’t just give everybody like it’s
completely impossible it depends so much
on your industry your business model and
what your goals are you know okay let me
put you on the spot then watchmojo we’re
a Content company video producer blah
blah blah let’s use that or pick
anything you want pick a shoemaker just
pick one let’s stick with watchmojo um
what would you use it for well yeah just
like and forget what we use it for I
just want like your opinion on the spot
um well at the end of the day you guys
are content producers to what you want
is audience what you want is reach and
in that case Facebook does work for you
you can promote your content effectively
you can keep it featured in sponsored
stories and ads whatever but the point
is is you can get more likes you can get
more followers and these people would
get updates about your content more
frequently you increase your traffic I
don’t know how much it depends on how
strong your community is but yeah it
would work for you because which you
guys want his eyeballs and Facebook can
give you that and Twitter and Foursquare
Twitter can also give you eyeballs um I
don’t know what you’ve done on Twitter
or how successful has been I would
actually I would suspect though for for
watchmojo stuff Facebook would offer a
bit more potential it might be ten
percent more might be fifty percent more
it’s hard to say until you try
foursquare there a geolocation check and
thing you don’t really have people
checking into your your studios that
often so I wouldn’t see so much okay the
only way I see foursquare happening is
let’s say we have a lot of travel videos
we have a lot of history videos so let’s
say if you check in you know the
pyramids in Egypt if we have related
video content on history or travel that
could load up you know or I’m not saying
that
the way to go or if you’re like let’s
say I’m at new york fashion week will
guess what we have like seven hundred
videos in fashion of which two hundred
or from Fashion Week in New York etc etc
that’s I think the kind of thing that
foursquare could do not just with us but
with like every content company where it
loads up because again I think ecommerce
early on everybody was like oh I walked
by starbucks to get an offer and then
people said hold on let’s press pause on
the insanity button I don’t want that
that’s not ecommerce mobile that’s like
horrible spam and now people are like
trying to find clever ways and this and
that but I say you know what again you
guys are all focused on e-commerce
ecommerce e-commerce I think Mobile’s
the bigger opportunities in content
consumption you’re sitting there waiting
time what are you doing well you know I
I don’t think you’re killing time for
foursquare I think they have a better
opportunity to do kind of a Groupon
style thing is they have a huge
marketing machine that if you check into
a place they can hit you it deals for
that place ordeals of nearby places you
know you don’t like the service over the
drink you just ordered you move three
doors down you’ll get two-for-one
martinis I think there’s more potential
there with the content side is when I’m
checking into places I’m either checking
in to meet people or sitting down to a
meal the chances that I’m going to sit
there and consume a lot of content while
I’m out in public especially on my phone
especially if I’m traveling where I’m
paying out the but for data it seems a
lot less likely to be this show has all
been a ruse to get you to just give me
free advice so we could just turn off
the lights all right we won’t take a
short break come back for lightning
round we’re going to cover a bunch of
topics
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