Lawrence Gee | Marketing, Internet, Creativity, Strategy

A Look at Facebook Apps

I’m on Facebook much like many of my peers and former colleagues.  It offers all the benefits of a social network - the ability to post pictures, comment on each other’s profiles, and see who knows who.  It attracts plenty of traffic due to the interactive nature of the content.  As a marketer, I am instantly interested in it due to its captive audience, high level of interaction, frequency of user visits, and ability to potentially target specific segments. 

One element I don’t truly understand is if Facebook Applications or Widgets really hold any value for marketers.  For Fortune 500 companies, I see some obvious benefits including branding, increased touch points, and creating deeper interaction with consumers.  However, the challenge is creating applications that fit with your brand and are interesting enough for people to want to add the application.  A good example of this is TripAdvisor’s “Cities I’ve Visited” Application.  It fits well with the branding of TripAdvisor.com (that being offering travel advice, reviews, and forums) and it is interesting enough that people would add the application (always interesting to see where people have traveled to).  However the application has a bit under 54,000 daily active users as of today, which is only 1% of the Facebook population.

Most popular applications are not done by Fortune 500 companies but rather by small start-ups or individuals.  Some popular ones include SuperWall, Flixster, Slide, Scrabulous to name a few.  I can see a couple of potential revenue streams that many are utilizing today - online advertising (banner and text ads) and affiliate referral commissions.  I’ve also seen merchandise being sold based off application characters like (Fluff)Friends and can see the potential for using an application as a lead generation tool to other games/programs/services a developer might sell outside of Facebook. 

In my opinion, the problem with these applications are the stickiness and loyalty of its user base.  I feel that popular applications one month quickly fizzle out to the next application the next month.  It’s almost like what’s the current flavor of the month?  Amongst my friends alone, I’ve seen mass interest jump from Scrabulous to (Fluff )Friends to Who Has The Biggest Brain? over the past 2-3 months alone.  Looking at applications from the business side, I question how much money should be invested in creating these applications.  There’s definitely alot of buzz surrounding applications and widgets but I’m not totally convinced that the buzz is actionable.