As Facebook hits its fifth birthday on Wednesday, it’s nearly impossible to find a recent news story that doesn’t refer to its growth with terms like “lightning-fast,” “exponential,” “skyrocketing,” or some other expression that would be quite at home in a space-age comic book from the 1950s.
That might be true now. And with an executive lineup sourced from Bay Area elite (including a handful of former Google leaders), high-profile conferences and parties, not to mention developer “hackathons” all over the world, it has all the makings of a landmark Silicon Valley craze. But don’t let that fool you: Facebook owes its early growth, and hence the foundations for its wildfire expansion of late, to its roots in a more buttoned-up tradition of the East Coast elite. The site’s conservative, calculated debut and blueblood allure were what sowed the seeds for Valley success.
Facebook’s origins at Harvard University, created over many dorm room all-nighters on the part of founder Mark Zuckerberg and his friends, are tech press canon by now. They have surfaced in dozens of magazine and newspaper articles, the occasional courtroom spat, and now apparently a book penned by Bringing Down The House author Ben Mezrich. What’s not talked about as often is that when Facebook, then called TheFacebook, made its quiet debut early in February 2004, it was just another entrant in a pack.
That was the same academic year that some colleges and universities launched online “facebooks” of their own as supplements to the paper directories that were then a staple in dorm rooms across the country. Plus, entrepreneurially minded students at a number of colleges, including several at Harvard in addition to Zuckerberg, were trying to best their alma maters by doing the same thing.
“When Facebook launched, the first week at Harvard was incredible because the adoption was through the roof,” said Sam Lessin, founder of start-up Drop.io, who was a classmate of Zuckerberg at the time, “and this was in the context of a lot of stuff other people had been doing online, including quote-unquote social-networking sites. The beauty of the product was that it was super simple and super easy to use.”
In keeping with its roots at one of the world’s most selective universities, Facebook’s initial allure was not that everyone had a profile, but that not everyone could have a profile.
When Zuckerberg and his team first launched the site, it was restricted to their fellow students at Harvard University. Then it began to roll out to the rest of the Ivy League and other prestigious universities: Stanford, Yale, and Columbia were the first three, in March 2004. A valid e-mail address from a participating school was required to sign up.
From a technical standpoint, this was smart because it allowed Facebook to manage its growth, avoiding overloaded servers and skyrocketing bandwidth bills. On the PR side, however, exclusivity fueled Facebook’s early buzz. MySpace, at the top of the social-networking heap at the time, was the massive nightclub where you might spot celebrities from afar. Facebook was the quiet cocktail lounge a few blocks away that required a password, but where you could be sure to see all your closest friends.
“There was a cachet to it. Everyone wanted in, and wanted to see what it was and how it worked,” Lessin said. When the site launched at a new school, he added, “you’d have this incredible initial bump of people who had heard about it and seen clippings or articles about it, and were excited to jump on board.”
With the exception of a short-lived file-sharing side project called Wirehog, Facebook’s team kept the site a purely networking-focused tool at the start. Although you’ve been able to “poke” your friends from day 1, the original Facebook had none of its current media- and information-sharing features; initially, you couldn’t even add friends from other participating schools, just your own.
But Facebook grew, both in accessibility and in flashiness. Members could start registering with e-mail addresses from corporations rather than just universities. It launched a photo album application that now hosts more than 10 billion pictures.
The “news feed” feature launched in September 2006, shortly before Facebook announced that it would let anyone join the site, setting off a brief wave of privacy-conscious member panic before becoming one of the site’s defining functions.
Then there was the developer platform, which hit the scene in May 2007 with the first of Facebook’s now-ubiquitous “hackathons.” Even after relocating from Boston to Palo Alto, Calif., and in spite of a billion-dollar buyout offer from Yahoo, Facebook hadn’t enjoyed much real “tech cred.” The platform changed that.
Creating a Facebook application soared to the top of Web companies’ priority lists, and even though Facebook’s traffic had started to take off when open registration launched the previous fall, this was when it really escalated.
With Facebook now five years old and reaching more than 150 million members worldwide, it comes into question whether it has abandoned those austere New England roots and that strategy of calculated growth in favor of Silicon Valley’s get-big-now attitude.
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Instead of trying to take down all copyright-protected videos that its members post, MySpace will let certain clips stay – and give the creators of the original content a cut of the revenue from advertising that will be attached to the snippets.
MySpace and online video ad technology company Auditude planned to announce a partnership Monday with Viacom Inc.-owned MTV Networks that will let ads be placed in clips of the network’s shows that users upload to MySpace. These include Comedy Central’s “The Colbert Report” and MTV’s reality show “The Hills.”
MySpace generally tries to keep such clips off its social network along with other copyright-protected content that users post. The News Corp.-owned site removes clips at the request of the videos’ copyright owners. Google Inc.’s YouTube has a similar policy, although Viacom is suing YouTube for allegedly profiting from clips of Viacom shows posted online.
Now MySpace will take a different approach with videos produced by partners it makes in its new ad deal.
Under this first partnership, MySpace users will be allowed to upload videos of MTV Networks shows. Technology from Auditude will detect and identify the clip, and overlay an ad on it. Revenue generated from the ads will be shared by MySpace, Auditude and the content copyright holders.
Auditude’s chief executive, Adam Cahan, said the system will tag videos with a so-called “attribution overlay” — a semitransparent bar across the bottom of a video that give viewers information like the episode’s original air date and a link to buy the episode.
One of these will appear for about 10 to 15 seconds near the start of a video, and be followed by an ad.
The overlays and ads are expected to start showing up on MySpace in the coming weeks, and MySpace and Auditude predicted that new ad formats and ad partners will soon follow.
But will users be bothered by having ads tacked to videos they post to their MySpace pages?
Jeff Berman, MySpace’s president of marketing and sales, thinks people will prefer that to having copyright-protected content filtered out entirely.
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It’s been roughly 18 months since the last major change to the entry to AOL.com. Now, after revamping its verticals and launching new products like women’s site Lemondrop, AOL is trying a new approach to its portal entry: creating an info hub for third-party email services and social nets while integrating RSS, local news and pop-out “engagement modules.”
The first phase went live tonight with an e-mail module allowing users to check on AOL, Yahoo, and Gmail accounts from the top right-hand of AOL.com and expanded left-hand navigation to various points within AOL. Over the next few weeks, AOL will add an innovative global status update for major social services—write your status once and it shows up on Facebook, Bebo, MySpace, Twitter at the same time—and the ability to follow multiple social net activity through one module from AOL’s front page. Bill Wilson, AOL’s EVP of programming, walked me through the new front page.
The changes don’t stop with e-mail and social nets. Some are skin deep as AOL introduces new color schemes and a more stylish approach, swapping muted pastels for options that include black backgrounds. (Screenshot here.) It may sound purely cosmetic but it gives the portal a new look and feel even tough the basic structure remains the same. On the top left, people can add their own links. AOL Radio will get a top spot. AOL.com also will incorporate “engagement modules” or pop-up players for video, photo galleries, polls and the like that can be moved to other locations on the page to watch video while reading email or the like.
It is an insanely long page but Wilson insists that their click maps show users scroll “if you provide value in the middle of the page as well as the bottom.” Much more detail after the jump.
More on e-mail
Hovering over an e-mail service after login shows the latest messages; composing messages or viewing all mail in an account takes the user off the page. Microsoft’s Hotmail poses a problem though; it can’t be accessed or previewed through AOL.com so AOL is providing a link that can be inserted in one of the module email slots—and a link to Microsoft feedback so people can ask for the feature. In addition to being more open, AOL hopes the e-mail aggregation will help recapture some of the user attention it lost before people leaving the ISP were allowed to keep their AOL addresses. Make it possible for Yahoo e-mail users to scan their inbox from AOL.com and they may stick around.
Leveraging acquisitions
Some of the new content on the front page comes from integrating AOL’s acquisitions. For instance, local news, something AOL hasn’t highlighted before, will be powered by Relegence, the financial news and info technology firm acquired by AOL in late 2006. Relegence, which pulls news and info from more than 3,000 sources, is already powering AOL’s finance, sports and entertainment coverage. Wilson says the portal avoided local news until now because news from nearby big cities tended to overwhelm the result. AOL will use Relegence to provide real-time news pegged to zip codes: “We’re really going to lean into local here.”
– An RSS reader in a module at the bottom will start default categories but can be supplemented by user choices. Recent acquisition Sphere will provide related content from the web; it was integrated quietly into AOL News last week and will be launched across AOL’s network.
Personalization not the goal
Wilson: “We’re not trying to create a replacement for myAOL or iGoogle or My Yahoo. … Based on our experience, personalized sites range usually to under 20 percent of the mainstream. If you look at My Yahoo, it does 20 million where My Yahoo does 90 millions; myAOL is roughly 8 million where our portal is about 48 million. Here, we’re trying to create an experience of great scale for the masses.” Beginning in Q109, though, the front page will start to respond to use. “If you as a user never click on finance news, we would swap that module out and provide you a different module based on things you do click on.” For instance, someone who clicks on style but not finance might get a style feed.
– The e-mail aggregator, social net module and other new features will be available eventually for myAOL.
Advertising
AOL is keeping the 300×600 display ad introduced for the Olympics and is testing placement for sponsored link ads from another acquisition, Quigo. The ads currently are integrated in various modules but the new look has them bundled together on the bottom left. “We’re constantly working with Quigo to determine the best placement for monetization but also leveraging that with the consumer experience.” The engagement modules “are all going to be highly customized from a sponsorship standpoint with rich media. We’ve been sharing that with TV networks and movie studios and some of the CPG as well as retailers.” That’s new advertising in the middle of the screen that doesn’t exist today. Will it pay off in revenue? The inventory being added should provide a boost.
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