Part II: Facebook and Open Graph API

I’ve had a few insightful conversations over the past week on the Open Graph topic (I did a post on the changes, you can find it here.  I also recommend checking out this ReadWriteWeb article by Alex Iskold on the topic).  I’ve had a little more time to explore the subject, so the purpose of this post is to continue the conversation.

The stickiest topic has been about why Facebook would encourage an increase in off-platform activity by pushing to get  Like buttons on non-Facebook sites.  At first glance, it seems that an increase in these semantic bookmarks across the web might discourage marketers from establishing brand pages, applications and custom tabs on the Facebook Platform.  If brands can push content into Facebook users’ streams without having to develop extensive branded experiences inside Facebook, then they will be less likely to buy media from Facebook.  Yes, the value of community will still be important and Facebook Pages will still have value. But invariably brands want to be in users streams and they can easily accomplish this without a Page if Like button use is adopted.

So, there will be less need to buy Facebook media, unless Facebook starts serving ads outside of the platform, which it can easily do with the information it’s collecting:

If Facebook continues to collect user preference data from across the web, it’s ability to target you anywhere (as long as you are logged into Facebook) with relevant information on products and services that you will “Like” becomes a fairly simple process.  This presents a fairly elegant solution for Facebook, which is struggling (I believe) with the challenge of serving users advertisements when they’re ready to buy.  Right now, Facebook serves ads inside Facebook; and users typically aren’t interested in clicking out to make purchases elsewhere on the web (while click-through rates from the stream may be higher,  Facebook media historically doesn’t perform this function well).  If Facebook starts negotiating for inventory outside of its platform, the game changes significantly.

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