As I have discussed on this blog before (here and here), a better understanding of graph theory, specifically with regards to edge values will be critical for developing better solutions for advertisers to disseminate information to users on SNS. While it is still a limited function, it gives people the first look of the future of advertising that will extend well beyond Facebook and to all web properties. By leveraging a user's connections, advertisers can start to create "social micro-sponsorships" - meaning that an advertiser can use their regular, everyday supporters (i.e. you and me, my apologies if you're not "regular" like me and are actually a big deal) as advocates of their products and services when advertising to these user's social connections. In the future, Icy Hot won't be limited to paying Shaq large sums of money to promote their product - rather, people who are Shaq fans and particularly are interested in his opinion with regards to analgesic heat rubs will will see Icy Hot referred them by the Diesel, but most of us will begin seeing Icy Hot referred to us Unlce Jim with the bad back who swears by it over BENGAY. Social micro-sponsorships can begin to transform ads towards becoming a form of word of mouth referral from people you actually know and have participated in some form with the product or service being promoted. What is yet to be accomplished is a way for this ad form to be produced through genuine social referral rather than sneaky tactics on behalf of different advertising systems to promote said sponsorship without user validation (cough, beacon). So far, the new option on Facebook's ads seem to be relatively harmless, and if users begin to feel comfortable with this concept it will allow Facebook to dive much deeper in leveraging the power of user's connections for the promotion of paid information. But trust will be key, which hasn't been a particular strength for Facebook in the past, though my guess is they will be learning from their mistakes as they move forward.
Over the next few months, I will be working on developing some concrete definitions for some of the concepts and theories discussed on this blog with regards to social network behavior and analysis. If you are interested in collaborating on some of these ideas I would greatly like feedback and input from you - feel free to email me at chase at pinyadda dot com.
