Updates! Updates! Read all about 'em!

Here’s a quick recap on recent topic discussions…

1.    Google Enters Race for Mobile Payment Systems

Way back when Starbucks announced they were going to allow consumers to make purchases with their Smartphone devices, Google apparently thought this would be a good idea for them to do as well. Stated in a recent article, Google has decided that they too want to join in on the mobile payment bandwagon. Google is planning on installing near-field-communication readers in thousands of merchant locations that will allow consumers to tap their mobile device against a register to make payments. In addition to this, Google is also strategizing to combine all of our financial account information on our mobile device to allow for us to have gift cards, store loyalty cards, and coupons all at our fingertips. This quick and convenient strategy will definitely catch consumer’s attention when it comes to their purchasing decision preferences. And with a big name like “Google”, they are sure to have a successful outcome on this.

2.    Myspace

Well, we all are aware of Myspace current ranking spot when comparing it to the other big players in social media world, like Facebook, Twitter, YouTube, Flickr, etc., - they are at the very bottom of that list. So we asked, “What could Myspace do in order to get back up there?” Turns out that Myspace decided to turn to music. They integrated with SXSW, a music and film interactive site to try and help their traffic. Although teaming with the music industry might help increase their traffic, reports say that the site’s decline is accelerating. So will music change consumers perception of Myspace tune? We shall see…

3.    Facebook New Search Protocol

Recently, Facebook has just been granted a new search patent that prioritizes search results based on the preferences of our personal network. Basically this means that when consumers are on Facebook and want to ask one of our friends their opinion on something, like ratings on specific restaurants, bars, events, purchases, etc. Facebook will automatically replace asking your friends, but rather than “friends of friends” or even “friends of friends of friends”. This kind of word-of-mouth, will limit online searches, for Google (as an example), and increase the activity on Facebook. Like everything, this replacement strategy of searching for results has its pros and cons. For the consumer, asking a question to someone who fits your profile standings is great because you will have someone who in a sense is “like” you answering a question, but on the other hand this may limit your choice options. Asking a friend of a friend for their personal opinion may be great, but they may also be telling you something they know you want to hear.

How Much is Groupon Really Worth?

Last November, coupon firm, Groupon made big headlines when it was reported that they turned down a $6 billion offer from Google. Many were shocked that Groupon didn’t take the cash and make a run for it, after all it was Google and it was 6 Billion dollars! They apparently believed they were worth much more, and good thing they did. In just a short four months Bloomberg reported that Groupon is talking with banks about an IPO of potentially $25 billion. Talk about four times the profit! 

But the question of the hour stands – Is Groupon really worth $25 Billion? With everything pertaining to the social media world, perception is key. If enough people believe Groupon is worth $25 billion, then it will be. The more money that is spent towards Groupon by consumers, the more valuable the company will become. Realistically speaking, this coupon firm has the potential to grow even more if they wanted to. If they were to segment themselves out to various geographic markets, they will give their company that competitive edge over the other smaller companies with similar business models. Although some may believe that small businesses wont be competition, you would be surprised by the amount of damage they can possibly do. Smaller businesses are more capable of offering what Groupon offers at half the price to local retailers, potentially obtaining a vast amount of the market share. 

Alternatively, Groupon can also get affected if leading competitors like Google, Facebook, or Amazon decide to take on Groupon and offer the same kinds of services through their company. If any of these big players decided to take on Groupon, they will most likely dominate the scene. It is all about the name in this kind of industry, and these players have already established themselves.

So whether it’s a small business taking Groupon on for their money, or a larger one like Google completely wiping their presence off the scene, Groupon has a lot to consider. But first, I believe they should consider whether or not they would want to take Google up on their $25 billion offer. 

Privacy is Key

I always thought that the saying “With fame, comes fortune” to hold true, until I realized that fame or even recognition is not always that fortunate. Until now, I had believed that celebrities were the only ones that had a lack of privacy, but now a days are they really the only ones that fall victim to this?

Social media has drastically changed the way people collect information. Almost anything can be found online by a simple click of the mouse. Normally when we search for the latest news trends, we are used to seeing celebrities' life being exposed by paparazzi with having their pictures all over the internet, but now it’s not only celebrities who are being invaded. Facial recognition has tapped into the online world, considerably. Anyone who is anyone can easily snap a picture of you these days and link this image to any social media site that you are currently connected to. And this can have a hazardous effect on all of us if abused negatively. Think about it? Let’s say one day you get yourself into a little fender-bender and the person you hit is having a not-so-good day. After apologizing a million times and offering yourself to pay for the little damage that you have caused, it’s still not enough. On impulse, this person grabs their smart phone and starts snapping pictures of the damage, your license plate, and even you. This tiny gesture can take a turn for the worse if the “victim” decided to upload your picture on a facial recognition site like Google Goggles and start an online frenzy on you. This can potentially worsen if your attacker even starts stalking you. It is a scary thought when people can easily invade your privacy. Facial recognition is something that we have seen and heard of only in movies (or for government official use, of course) but now it is becoming so common and easy for just about anyone to do. Unfortunately there’s really no way to protect ourselves from facial recognition programs. Once we are linked to social media sites and upload pictures of ourselves, there’s really no way to avoid someone from invading your privacy. All we can do is share as little information as possible and protect your privacy as much as possible. 

As for when you are offline, well...be cautious of your surroundings, because you just never know.

Privacy is key,

Natasha Martinez 

Let's Connect...

Now-a-days if you want to connect with someone, you just don’t obtain that person’s telephone number or email address, you ask if they have a Facebook or Twitter account. Social networking has become one of the largest, most effective ways to communicate or get information from these days, but is it really a good way to connect with someone?

Whether you’re looking to promote your business, a product/brand or even yourself – you can do that via Facebook, Twitter, and YouTube but is it really that affective? Society believes that if you have x amount of “likes” on Facebook or “followers” on Twitter, that is all that you need in order to become or feel successful. If you look at this recent study, Twitter is Not a Very Social Network, of how effective connecting on Twitter really is, you will see Twitter is all very one sided. Out of over 41 million profiles and 1.47 billion follower/following relationships, the researchers concluded that only 22% of all connections on Twitter are reciprocal. The only way connections on Twitter are effective is when both parties follow each other.

Coming from a marketing perspective, we marketers know that if you really want awareness, you need to reach the right people, in the right way. If you are a company trying to promote your business to bring brand awareness to the social media world, you need to connect with the appropriate people that can help accomplish your goal effectively. Perfect example; the company I currently work for has just launched their new Facebook page, and being that I work in the marketing department and who is considered to be a part of the Gen Y generation, they saw me as the perfect candidate to help promote and suggest people to “like” our page. Although it is without any effort that I can select my entire net generation group of Facebook friends and suggest that they should like this page, what is that really going to do for the company? If you ask me, it would do absolutely nothing - not unless one of my fellow youthful friends would be interested in building some high-end resort and/or residential property…any takers?

If you really think about it, I mean how easy is it for someone to just press “accept”. Although, they have accepted you, does that honestly mean there is a loyal connection/commitment between the two? Frankly, when someone has to recommend something that they think you should like, that’s not connecting – that’s just allowing them to show up on your news feed. It is when you target the right person and a relationship forms – is when a real connection has transpired.

So remember my fellow social networking peeps, it shouldn’t matter how large your group of friends are, but more importantly how connected your group is, whether it be big or small.  

Let's Connect,

Natasha 

Study: Twitter Is Not a Very Social Network

http://www.readwriteweb.com/archives/study_twitter_isnt_very_social.php

Starbucks' New Smartphone App

For all you techies and coffee lovers out there, today is your lucky day. Starbucks has just announced that they are now accepting payment plans via Starbucks mobile app. This works just like a regular Starbucks gift card that has been transferred to your phone, would work. You have a choice of either setting up the account via credit card or PayPal. When it comes time to pay, you take your Smartphone and hold the app-generated picture of a barcode to the scanner at the register.

According to Starbucks, this new method of payment is the fastest, and most convenient yet, allowing customers to be in and out - which is always when a plus when your in a hurry and in desperate need of a caffeine rush.  Starbucks has fully leveraged its role in mobile app all across the country – over 6800 stores in the U.S to be exact. They strongly believe that this strategy is extremely beneficial to them. When a customer has an app dedicated to a single coffee shop, they are more prone to going back there when they need a cup of coffee. Not only is this a brilliant approach to gain customer loyalty, but this will also reduce credit card transaction costs for the company. Less credit card transactions means less fees the company has to pay.

If this new method of payment turns out to be a success for the company, they will definitely have to deal with other competitors launching this payment strategy as well. This revolutionizing concept is great for all you tech savvy, cant live, cant breathe without your phone - people out there, but for those who are not, its probably about time you jump on the bandwagon. Sooner than later, we are going to no longer need to carry around credit cards, money, or any other method of payment out there. All we will need is a palm-size, electronic device that will do just about everything for us. 

Sources:


http://singularityhub.com/2011/01/27/paying-for-starbucks-with-your-iphone-or-blackberry-now-in-6800-locations/