memo to trent reznor.

NIN has released a new record online. Ghosts I-IV.

Trent Reznor has done everything right. Free sample, ability to listen, increasing price scale based on how much you are willing to pay, with a physical product thrown in to justify each increasing price point. All of it an excellent deal. All of it profoundly attractive, in a really well designed web package.

But I've been trying to give him my money for 30 minutes, and I can't. I'm actually trying really hard to give him my money, $10, in return for some undoubtedly great music now, and what I expect will be an attractive package later. This will be, to be clear, the first physical CD I buy in about three years. If I can get the page to load. Which I can't.

When it comes down to it, every business model of music is in direct competition with piracy. And now I'm sitting here, actively trying to pay for music, and I can't.

I'm not looking to see if there's a torrent of Ghosts available. Mostly because I actually want the physical product. But I have to admit, I've got my credit card on my lap, and I'm still tempted.

advertising vs. data collection in monetizing social networks.

I promised to follow up on this post around two weeks ago, but I think I can be excused due to the holiday madness that filled that time period.

In the previous post, my general complaint was that the amount of initiative necessary to elevate advertising in social networks from an annoyance to a service is negligible in comparison to the potential returns, both directly and in terms of reputation. The example at hand was Facebook, and the mediocre targeting that let me know a band I like was touring in my country, but didn't bother to take it a step further and actually point me to venues near me, and a place to purchase tickets.

The problem goes deeper than that, and it's pretty simple to explain. Facebook, like most social networks, has made the assumption that having a business model based on advertising revenue means you are a company that works in advertising. Looking into Facebook's brand promotion 'Fans' pages, etc, there is a lot of useful space in which to inject a brand identity. They've also made a point to keep the structure fairly rigid, which I respect - this feature was, at first, the major differentiator from MySpace. I'm not trying to question the advertiser focused initiatives that Facebook has created. I'm just wondering why they were necessary at all.

Facebook is not an advertising company. Facebook, like all social networks, is more accurately a clearing house of user data. Facebook has a lovely, massive community of people, many of whom are highly engaged with the 'social utility'. Most of whom have made vast amounts of personal information available. This is what Facebook is selling, first and foremost - the ability to identify a useful target market for ads, services, etc.

So why are they taking it further than that? You want fan pages for Brands, sure. This makes perfect sense to me. But beyond that? What you have to offer is a community, and your collected information about them. Leave the rest to people why can actually make creative, targeted advertising work. Don't further the spread of the pseudo banner ad by putting them into the News Feed.

Offer the information. Leave strategy to the same guys who handle the creative in other, slightly less closed systems, all the time.

When reading about advertising and the future, the word that is thrown around a lot is authenticity, because us youth of today have finely tuned bullshit detectors, etc etc. My stance is that it's often quality that's more important - you can't make something an ad, and hide that you are trying to sell me something by coating it in a fine layer of authenticity. But you can make me care, and sit through the ad, because the content is good, relevant to me, and entertaining.

Facebook has the information to be astounding at determining the relevance of a product or service to it's users. But honestly, trusting either quality of content, or entertainment value to a company who openly and proudly has been built on unpaid, personal contributions by users seems more than slightly odd.

Hopefully it's clear that Facebook is interchangeable for any other social network or social utility here. The issue is that if the only thing you are actually bringing to the table is information, why are you trying to sell a full service, rather than just taking money for the information at substantially less overhead?

facebook ads and failures of monetization.

Depressingly, I do not have access to the screen shot I took of the specific Facebook ad that so offended me. If I get to it, I'll edit it into this post in the near future.

One of my issues with monetizing social networks is that it's always done in the least logical model possible. Instead of selling information (which, really, is the only product they have to offer other than the easily offended and fickle masses that make the entire engine run) they inevitably attempt to create a full service perfect storm of failure, that ends up making the advertisers look clueless and stupid, and makes the company itself look like they don't value the community in the least.

Looking at you, Facebook.

Here's the short version of my experience with Facebook ads. On my News Feed, I find an ad for Modest Mouse. I like Modest Mouse, and Facebook knows this. Because I told them, in my profile. Facebook also knows I live in Canada, again, due to my profile.

What Facebook doesn't seem to know is WHERE in Canada I live, or which venues are conceivable accessible to me, despite that information being very available to them. So I get an ad that says, more or less, 'Hey Canadian Modest Mouse fan! Modest Mouse is touring Canada. Now click this and dig through a bunch of crap to find out when they are near you! Then go to ticketmaster and go through more crap!'

I can see why they wouldn't want targeted ads that are actually well targeted. More work, more money, and the assumption that the true fans (the kind who label themselves such) are willing to hunt a little. And I guess that's fine. But from my point of view, it's also a waste.

If that ad had popped up with "Hey [NAME], Modest Mouse is playing at [Venue] and [Venue] near you, on [insert dates here]. If you would like tickets or further tour information, click here [link to ticketmaster page with info on the concert / venues]."

This wouldn't bother me, if the ads were calibrated to my stated interests, and my stated location. This is, I would argue, the whole value of social networks. The idea that advertising can be so targeted that it stops being an intrusion, and starts being a service.

A little more effort on the experience, and a fairly meaningless ad could, conceivably, have driven me to buy tickets on the spot, rather than compose a blog post in my mind.

I'll be following this up very shortly (possibly this evening) with another, more general post on my issue with how social networks are monetized, and how they could generate revenue without disrupting the user experience on which they completely rely.