SF App Startup Cola Creates ‘Slack For The Rest Of Us’


message thread 1

From my Forbes blog:

There’s no end of messaging apps that let you exchange texts, photos and videos with friends–Whatsapp, Snapchat, Instagram, Facebook Messenger and so on. There are also a lot of business-oriented apps such as Slack, HipChat, and Yammer.

But what about a messaging app that lets you address the space in between entertainment and work, which is to say coordinating and planning activities with a few friends or coworkers? That’s what Cola aims to do.

Today the San Francisco-based startup is launching a limited, private beta test of an app that uses messaging as the basis for a wide variety of common things people want to get done, from figuring out where and when to meet with friends and creating joint to-do lists to tracking expenses at work and even engaging in multi-player games. The idea, says cofounder and CEO David Temkin, is that messaging has emerged as the most important function of a smartphone and even the foundation of many apps on the smartphone, from Uber to DoorDash to Venmo. “We are entering an era when messaging is the central app, like the browser was for the Web,” says Temkin.

Indeed, Temkin hopes to make Cola the first “messaging OS,” a platform on which activities that need to be coordinated among a small number of people can get done using messaging as the essential delivery mechanism. …

Read the rest of the story.

Sorry, But Twitter Will Never Be Facebook

From my Forbes blog:

Twitter’s shares look to stage another swan dive Wednesday morning as investors continue to focus on the only disappointing piece of data in its first-quarter earnings report: continued anemic user growth.

Higher growth would be better, of course. But the clear implication of an after-hours selloff of 11%, to a little under $38 a share, is that Twitter needs to be more like Facebook: Only by growing like crazy, the thinking goesFacebook-crazy, that is–can Twitter build the next great online media business.

On that point, investors are utterly wrong. If anything, Twitter needs to make sure it doesn’t try to be more like Facebook.

Now, that could well mean that Twitter will never grow to Facebook’s size. That would indeed be disappointing to many. When investors bought into Twitter’s initial public offering last year and ultimately drove shares to a closing high of $73.31 the day after Christmas, that potential is clearly what they were buying.


But that’s their mistake. It’s no knock on Twitter as a potentially very successful advertising medium. After all, ad sales more than doubled in the quarter. And with a number of still-nascent ad products waiting in the wings, there’s little reason to think that growth–you know, revenue growth–won’t continue or even accelerate.

The problem is that most investors and advertisers alike still don’t understand that Twitter isn’t Facebook and never will be–and that that may very well be a good thing. Craig Elimeliah, a VP and director of creative technology at the ad agency RAPP, said in an interview that most people don’t understand the true reach of Twitter, which extends well beyond  the Twitter app and website to television, news sites, blogs, and even our culture at large.

“The engagement of a person on Facebook is worth so much less than on Twitter,” he says, because Twitter offers in-the-moment context that Facebook can’t. “I don’t think Twitter is meant to have a billion [actively tweeting] users. It’s meant for a highly vocal, highly engaged but smaller group.” …

Read the rest of the commentary.

What’s Next For Google+ Now That Its Leader Has Suddenly Left?

From my Forbes blog:

Google+ has never gotten the respect its creator hoped, let alone gained much ground on its supposed target, Facebook. Now, Google’s attempt at a social network has lost its leader and chief evangelist, Vic Gundotra, who announced today that he’s leaving Google after almost eight years at the company.

Gundotra, a former Microsoft executive, gave no clue to his next steps. His own post, musing on the death of his wife’s uncle and her father’s attitude toward life, implied that he was simply ready for a new challenge after a career at Google that you’d have to consider a success. Google+ failed to make a dent in Facebook, but it’s a solid service with a loyal following and, probably most of all, a powerful source of data for Google’s advertising machine. And Gundotra’s previous work courting developers for Android obviously paid off bigtime, as the mobile software remains the only credible rival to Apple’s iOS.

Still, Gundotra’s departure, effective immediately, is rather abrupt, despite recent rumors that he was interviewing for other jobs. There is speculation that he didn’t get along with CEO Larry Page’s “L Team” of top execs and with some employees who called him the “Victator,” though Page himself provided a quick bit of praise for Gundotra today. Other sources at Google have told me that Gundotra, known for his very public profile and more charm than many Google executives, was resented by some inside Google for self-promotion and a tendency to run over other execs in his drive to get things done.

What matters more going forward is what will happen to Google+, which has suffered most of all from a confusing vision of its core purpose. Gundotra and his lieutenant, Bradley Horowitz (who mysteriously was not chosen as his successor), have taken pains to define Google+ as not a social network, but some sort of social glue for all of Google’s services. But their insistence, coupled with iffy numbers of people supposedly using it, always rang a bit hollow, so Google+ continues to be compared to Facebook. And as a place to share your life with friends as people do on Facebook, it’s clearly a failure. …

Here’s the thing: This could actually be an ideal time for Google to forge a completely new vision of social networking and communications, rather than keep trying to explain what Google+ isn’t. Indeed, at a time when even Facebook CEO Mark Zuckerberg is talking up the virtues of private communications, Google+ could position itself as already well on the way to this new world of more nuanced online communications. …

Gundotra’s departure may be a blow to Google’s social ambitions for now. But it also could be an opportunity to start anew. And it’s an opportunity Google can’t afford to waste this time.

Read the rest of the analysis.

With Graph Search, Can Facebook Kill LinkedIn, Yelp–Even Google?


Facebook CEO Mark Zuckerberg introduces Graph Search (Photo: Robert Hof)

From my Forbes.com blog The New Persuaders:

Facebook took pains today to tell the world that its new social search serviceGraph Search, is only a very limited tool that it will roll out very slowly over a period of months and years.

But CEO Mark Zuckerberg and his search staff couldn’t help but reveal their enthusiasm for the vast possibilities. For all their professed modesty, what struck me at the company’s press event introducing the service was how specific and broad-ranging Zuckerberg and his Graph Search leaders were about what it could provide: just about everything, potentially, that every company from LinkedIn to Yelp to Foursquare to Match.com to … yes, even Google provides today.

That’s an exaggeration, of course, that even Facebook folks surely didn’t intend. All of those companies have distinct, well-developed services with extensive user bases that are unlikely to shrivel up no matter how good Graph Search turns out to be. In most cases, they will probably retain a durable advantage for years to come. And as Zuckerberg said, it’s very, very early for Facebook search, and search is a devilishly complex discipline to do well.

Still, to hear it from Facebook itself, Graph Search will offers ways to provide similar services, sometimes in potentially easier and more effective ways:

* Recruiting: One of the first examples Facebook provided today was that Graph Search could help in finding qualified candidates for jobs. For instance, Lars Rasmussen, the Facebook director of engineering who heads the Graph Search team, mentioned that he could find people from NASA Ames Research Center who are friends of Facebook employees.

As investors, who bid up LinkedIn’s share a fraction today, no doubt recognize, that company has a pretty good if not exclusive hold on recruiters. And given that finding friends who worked somewhere is a rather specific subset of qualified candidates for a position, there’s not much chance recruiters will abandon LinkedIn for Facebook anytime soon. But Facebook, already used in various ways by recruiters, could siphon off activities that might otherwise have gone to LinkedIn. … Read more at The New Persuaders. But to conclude …

No, Facebook won’t kill any of these companies, certainly not anytime soon. They’re too strong, Facebook has too much still to build and then to prove, and rarely does a company kill another healthy company no matter how good its products are.

Investors may be thinking as much, as they sold Facebook shares to the tune of a 2.7% drop in price today. But if anyone doubted Facebook’s ability to keep disrupting the status quo, they surely shouldn’t doubt it anymore. Even with its baby steps into the search business, Facebook has again set new terms of engagement in the battle for the soul, or at least the cash register, of the Internet.

13 Questions For 2013 In The World Of Online Advertising

questionsCross-posted at my Forbes.com blog The New Persuaders:

For the past few years, I’ve offered predictions here and on The New Persuaders for what’s likely to come in the next year. This year, I’m going to shake it up and throw out a few questions instead. I think I know the answers to some of them, but if many won’t be answered definitively by year-end, they remain top of mind for me and probably for many others in online media and advertising.

So in this, the first full week of the new year, here are some questions to which I hope to start finding answers:

* Will image advertising finally take off online? I have to believe that as people spend more and more time online instead of reading print publications and watching TV, brand marketers will want and need to reach them there with ads that are aimed at creating consideration for later purchases, not just eliciting an immediate sale like Google’s search ads and too many banner ads. We’re already starting to see signs of such advertising with the early success of Facebook’s Sponsored StoriesTwitter’s Promoted Tweets, and YouTube’s TrueView ads–not to mention the explosion of tablets, which provide a lean-back experience more compatible with image advertising. This won’t be a sudden change, since brand marketers and agencies don’t move quickly, but you can’t tell me there aren’t going to be increasingly compelling ways for brands to influence people online.

* Can advertisers and publishers make ads more personal without scaring people? That’s the $64 billion question, and it likely won’t get answered in full this year. It’s easy for headline-hungry politicians to make a big deal out of Facebook’s latest privacy gaffe or the Wall Street Journal’s or the New York Times’ latest scare story about an ad that followed somebody all over the Web. That’s especially so since Facebook really does push the privacy envelope too far at times, and too many advertisers idiotically chase one more sales conversion at the cost of scaring off hundreds of others or inviting onerous legislation. But making ads more useful to each individual person is not only crucial to online commerce, it’s potentially better for most consumers as well–seriously, I don’t need to see another ad for a fitness center or a new credit card, but that ad for Camper van Beethoven’s new CD had me in a split-second. The answer lies in these two words, everyone: transparency and choice.

* Will mobile advertising work? Well, some of it already does, to hear Google and Facebook tell it. And while those already devalued digital dimes so far turn to pennies when it comes to ads on smartphones and tablets, this still feels more like growing pains than a crisis in online advertising. Sure, the screens are small and people don’t like to be interrupted in their mobile cocoons. So a different kind of advertising is probably needed–clearly, banners don’t cut it on a four-inch screen. But the value to advertisers of knowing your location and maybe the apps you’re using, coupled with knowledge of what your friends like–all with permission, of course–is huge. That permission may be really tough to earn. But if advertisers can offer tangible value, perhaps in the form of useful services related to what you’re doing or looking for or shopping for–and isn’t that the ultimate native ad?–people may loosen their hold on that information.

I have a lot more questions, but I’ve got to stop before too much of 2013 is gone.

Check out more questions at the full post.

Why Do Obama Supporters Appear In Facebook Ads As Romney Fans?

From my Forbes.com blog The New Persuaders:

Recently, I’ve been seeing a Sponsored Story ad on Facebook pages indicating that several friends “like” Republican presidential candidate Mitt Romney. No surprise there. Sponsored Stories are those personalized ads the social network allows advertisers to run that show friends have “liked” a brand, and they’re increasingly common as Facebook doubles down on social advertising.

But what on Earth was the name of a friend, who I know is a vocal Obama supporter, doing on a Romney ad? The answer raises questions about how effective, or at least how accurate, these ads are–not necessarily due to a particular fault by Facebook but thanks to the byzantine rules and privacy features that have developed over years of user outrage and resulting Facebook accommodations.

Anyway, I asked my friend if he knew he was shilling for Romney. His response:

“Lol…..I liked him so I could see his FB feed. You should read my comments.” [Hint: They’re not complimentary.]

To be clear, you can see Romney’s posts on his page without “liking” him, but to see them in your own news feed, you need to “like” him. And once you do, like it or not, you become potential fodder for an ad that will appear to your friends.

Another friend of a friend who’s an Obama supporter also was surprised to see his name on a Romney ad. He told his friend:

“I never liked his page. I commented on one of their crazy lies.. gave them a serious piece of my mind ya know!!!!! All kinds of people have been telling me why do u like Mitt???? I’m pissed!!!” …

Read the complete post at The New Persuaders.

Facebook’s Mobile App Install Ads Get Moving

From my Forbes.com blog The New Persuaders:

Exhortations to install apps are likely a significant chunk of Facebook’s advertising revenues, and now they’re poised to become an even bigger factor in the social network’s future. Today, two months after offering app install ads for mobile devices to a select group of app developers and their marketing partners, Facebook opened up the ads to anyone.

These ads appear right in people’s mobile news feeds, providing prime placement for games and other apps in Apple’s App Store for iPhones and iPads and Google’s Play store for Android devices. Not surprisingly, Facebook says in a blog post that mobile app install ads are already working:

In early results, beta partners like Kabam, Fab, TinyCo and Big Fish were able to reach a more relevant audience and efficiently drive installs. For example, TinyCo saw 50% higher CTRs and significantly higher conversion rates compared to their current mobile channels, as well as a significant increase in player engagement.

A select subset of Preferred Marketing Developers (PMDs) has been testing mobile app install ads and saw similarly positive results. For example, Nanigans’ clients efficiently achieved 8-10x the reach compared to other mobile ad buys. Ad Parlor saw consistent CTR’s from news feed of 1-2% from engaged users looking for iPhone and Android games that their friends were playing.

No doubt those numbers will come down as the novelty factor in any new ad or feature wears off. Still, even a fraction of those results would still be valuable to advertisers.

That’s assuming–and this is a fair assumption given Facebook’s wariness about ad overload–that the company doesn’t go over the top and overload people’s mobile news feeds with the ads. Avoiding overload is especially important for these ads because unlike many of Facebook’s marquee ads, they don’t have a social component, meaning they appear strictly in response to developers paying for them, not because a friend liked an app.

Too many of these ads that don’t have the appeal of a friend’s connection, and the dreaded banner blindness is likely to set in.

There also more coming to improve these ads, according to Facebook engineer Vijaye Raji:

In coming months, we’ll continue to make updates that improve the user experience and the performance of mobile app install ads. For example, you may be able to customize your ad unit based on your audience, ensure that your ads are only shown to people who have not installed your app on iOS or Android devices, and allow people to start installing your app without leaving Facebook.