Digg Setback Calls 'Wisdom of Crowds' Into Question

Journalism junkies have been closely watching the example of Digg.com to see if the wisdom of crowds really is better than the judgment of editors. According to David Chen, it isn’t. Writing on Mashable, Chen offers a detailed deconstruction of Digg’s recent decision to jettison some of its top users, apparently for trying to manipulate the system.  The weeding-out process was positioned as a routine cleanup intended to eliminate abusers of the community adjudication process, but it was actually an acknowledgment that decision-making by the masses has serious flaws, Chen concludes.

It’s been common knowledge for a couple of years that the Digg model lent itself to manipulation by a small number of people. In fact, there’s evidence that up to half the stories on Digg’s enormously influential home page were contributed by just 100 users.  By taking draconian action to ban members who had, in some cases, contributed hundreds of hours of effort to building the site, Digg is admitting that it has been unable to figure out an algorithmic solution to the abuse.

The problem isn’t in programs, but in people.  Individuals can attain fame within the community by contributing stories that are ranked highly by other users.  Active members discovered early on that by forming “friend” relationships with many others, they could enhance their performance and popularity.  In other words, the more you voted for another member’s contributions, the more the other member voted for yours.  As time went on, an elite corps grew more powerful, to the point that their contributions can achieve high visibility regardless of merit.

“In the years following its creation, Digg became less a democracy and more a republic, with a select few users responsible for the majority of front page stories,” Chen writes. Digg has tinkered with its settings to try to mitigate this factor, but some members responded by writing scripts that routed around the problem.  It became a giant cat and mouse game that eventually forced Digg to insert human editors at some levels to arbitrate the process.  So much for the wisdom of crowds.

Chen contends that the blockade may irreparably damage Digg’s reputation, although the site will continue to be a huge source of traffic for publishers who are lucky enough to be listed there.  At the very least, the conundrum points out the limits of a purely democratic model of news judgment.  Even successful sites like Wikipedia rely up a small cadre of elite editors to make most of the important decisions. People with significant experience in online communities agree that a very tiny percentage of members contribute the vast majority of content.  It appears that editors, whether bubbled up from the community or appointed by management, are inevitably needed to maintain order

Should this be taken as a condemnation of the community journalism model and validation for the rule of editors?  Absolutely not.  As Wikipedia has demonstrated, armies of ordinary people can create a phenomenal information resource.  However, leaving all decision-making to a group without providing rules or oversight invariably results in the ascendance of an elite.  in the case of Wikipedia, that elite is self-regulating.  In the case of Digg’s more juvenile crown, it’s a frat party.

Social Network Adoption Races Ahead

Awareness, Inc., which has been in the social media software market for several years, has just come out with a new research report on enterprise adoption of Web 2.0. There are some interesting findings that I wanted to share with you. You can download the entire report after filling out a short registration form.

My basic take-away is that social media tools are ripping through the enterprise with amazing speed. Whether used internally, externally with open enrollment or externally with invitation-only enrollment, social networks are proliferating as business tools. Some highlights:

  • The number of organizations that allow employees to use social networks for business purposes has increased dramatically to 69% in 2008 from 37% last year;
  • More than six in 10 companies are using social media to build and promote their brands, improve communication and increase consumer engagement;
  • There has been a fivefold increase in the percentage of employees who use popular social networking sites like Facebook and LinkedIn for business purposes, from 15% in 2007 to 75% this year;
  • While only a tiny percentage of organizations are currently using internal communities, one in three plans to use them in the future;
  • A quarter of respondents say their companies are planning to deploy external-facing communities, which is double last year’s total;
  • Some 37% of organizations plan to focus communities on specialty areas where they can provide focused business value;
  • More than 40% of respondents report using one or more of the following tools: user groups, tags, communities, blogs, social networking and videos;
  • The most popular internal tools are social networks, blogs and wikis, with adoption rates of between 50% and 55%;
  • Seven in 10 respondents say their companies plan to deploy external blogs.
One of the most notable trends this research reveals is the rapid acceptance of social networking not only for marketing and customer support, but also for employee communications. When you consider that Facebook was barely known outside of the academic realm just two years ago, the acceptance of this technology for internal knowledge management is remarkable.

I’m also intrigued by the findings that seven in 10 businesses allow employees to use social media during business hours. This is a big change in corporate attitude. In the first couple of years of social media, businesses moved slowly to permit employees to speak outside the company walls. There were fears about people revealing company secrets or saying inappropriate things in public forums. Those fears appear to have largely melted away.

The lack of horror stories combined with the powerful utility of features likeLinkedIn’s Answers forum are clearly overwhelming these reservations. It turns out that when you give people the freedom to speak on behalf of the company and combine that freedom with clear guidelines about what’s appropriate to say, the vast majority do the right thing. This is inspiring and affirming. It may be an unanticipated benefit of social media acceptance, but it is a very welcome one.

Caveats: Any research conducted over the Internet needs to be taken with a grain of salt. The Awareness survey accumulated responses from 160 people, of whom 27.5% were from large companies and 40% were at a management level. Awareness says statistical accuracy is +/- 7%. Awareness also has a vested interest in promoting acceptance of social networks. However, the company used an independent research partner, Equation Research, to conduct the survey and I don’t think it has any incentive to fudge the results.

Study Finds Rapid Enterprise Adoption of Social Networks

New research funded by Awareness finds that Web 2.0 technologies are gaining rapid acceptance in enterprises and being combined with internal systems. I haven’t had a chance to read the full report yet, but you can download it here after filling out a short registration form (note, you may get a call from a sales rep later).

Here are highlights from a press release distributed today:

  • Employers are starting to allow social media participation more freely in their organizations: The number of organizations that allow social networking for business purposes has increased dramatically to 69 percent in 2008, up from 37 percent last year;
  • Employers are finding the benefits of using social media: 63 percent are using social media to build and promote their brand, 61 percent are using it to improve communication and collaboration, and 58 percent re using it to increase consumer engagement;
  • 75 percent of employees are already using social networking sites such as Facebook, MySpace and LinkedIn for business purposes, up 15 percent from 2007;
  • Use of internal-facing communities is on the rise with 6 percent of organization already reporting they deployed internal-facing communities, while 33 percent indicate their organization plans to implement internal-facing social media initiatives;
  • External-facing communities are increasing: 27 percent of respondents said their companies are planning to deploy external-facing communities while only 13 percent indicated their organizations already have external-facing communities;
  • Online communities directed at specific interests and groups of people allow for more targeted marketing techniques and better results so for this reason 37 percent of organizations have specific areas of focus for their communities;

While I Talked, People Twittered

Have you ever had an audience comment loudly on what you were speaking about while you were actually speaking? I did this week, and I found the experience to be weird, invigorating and a little bit 
The scene was the New Marketing Boot Camp, a seminar I conducted with Chris Brogan and CrossTech Media. The group was the most tech-savvy I have addressed in some time. About a half-dozen of the members were using Twitter, the short-message microblogging service that inspires a fanatical following.

Sitting down after my presentation, I was able to call up search.twitter.com and read what people had been saying while I talked. Most of them simply summarized points I made, but a few added their opinions, and not all of those opinions were complimentary.

I can tell you that the act of presenting to a group that is actively talking about you requires new skills. Simply knowing that thoughts are being exchanged can be flustering; the tendency is to speak to the people in the room who you know are documenting your talk, hoping to get an inkling of what they’ll say. There’s also a certain ego-drive voyeurism that comes from this kind of instant feedback. I found myself wanting to hustle back to my computer to get the online evaluations of what I had just said!

There was a famous story at the South by Southwest Conference last March in which a keynote session was disrupted by negative Twitter messages from some members of the audience. In that case, the speakers were in the difficult position of having those comments actually scroll across a public screen while they were on stage. That was an extreme case, but an increasing number of events are incorporating Twitter conversations into the experience by encouraging attendees to share messages with each other using specific tags or keywords.

Like most new technology developments, there are both good and bad sides to this new form of instant feedback. On the positive side, speakers and conference organizers need as much audience reaction as they can get, and the sooner the better. Having recently waited six months to get audience evaluations from one presentation, I can tell you that the immediacy of the tweeted feedback was wonderful. I was able to use it to get a read quickly on the tech-saviness of the audience and adjust accordingly for the rest of the day. Hopefully, that was a good thing for everyone.

The major downside of this trend that I see is that real-time feedback from a small number of people can force a speaker to unintentionally focus on trying to please that vocal few. This is dangerous if the small but loud group isn’t representative of the majority of listeners. It’s human nature to fixate on criticism, and focusing on the comments of a few audience members can throw a presenter off track. The feedback is great, but keep it in perspective.

I’m telling you this because many of you work in the technology industry. You will soon find (if you haven’t already) that attendees to your meetings and events will use tools like Twitter to share their observations. Encourage this. Ask attendees to use Twitter’s hash function (#) to label their messages for your event. Use search.twitter.com to filter their comments and save the search query as an RSS feed so you can collect all this feedback in one stream or even display it on a public screen.

However, Twitter feeds aren’t a replacement for the tried-and-true tactics of feedback forms and post-conference surveys. Real-time impressions can be incomplete and misleading, so take them with a grain of salt. But seek all the feedback you can. Your presentation or event will only be better for it.

Update: on Twitter told me about RateMyTalk.com, a “service that allows conference attendees to provide immediate feedback on a conference via Twitter or through our web site.” I haven’t tried it yet, but it’s a very timely idea.

Be Careful About Pinning Your Hope on "Communities"

I was a guest on a webcast about social software this week (you can watch it here; it’s free) and the question came up about what publications can do to build community. I responded that they can’t do much and they shouldn’t even try because, with few exceptions, readers aren’t a community.

Then I checked my RSS reader the next morning and noticed this item from Content Ninja that makes the very same point: “You cannot build a community around content.”

“Community” is a poorly understood term (just look at the variety of definitions in online reference sources) and, like many buzzwords, it is being overused right now. Mainstream publishers trying to escape their sinking businesses are clinging to the community life raft, hoping that it offers hope for a future. For some it does, but for many general-interest publications, it’s a waste of time.

Newspapers, for example, have historically defined their communities geographically because that’s the business model that worked. While people who share a common space on the planet are technically a community, they’re the least cohesive kind of community. Outside of a shared interest in certain issues like public safety or schools, residents of a city or town have little in common. They may occasionally form strong communities around common interests like a school bond or tax increase, but those groups invariably dissolve as the issue goes away.

There are readership communities that work. Subscribers to a special interest magazine about needlepoint or scuba diving are a type of community. Those people have intense shared interests and they are much more likely to bond together in an online forum that serves those interests. Publishers of special-interest magazines have the best chance of turning their readership into self-sustaining online communities.

General-interest publishers serving broad audiences don’t. Their strength is creating content and their best chance of building community involves giving people a chance to discuss, comment upon and contribute to their content. USA Today does about the best of any major newspaper at encouraging this kind of reader participation. It encourages readers to comment upon and discuss its stories within the the limited confines of non-threaded discussion, but the readers themselves have no means to create groups, initiate their own discussions or contact each other. There’s nothing wrong with that. USA Today doesn’t have the illusion that two million readers are a community. It’s comfortable with its place in the world.

Social Network Wars are Over; Now the Fun Begins

If you’re sitting on the sidelines waiting for the market to pick winners in the social network race, you can stand up now. Hitwise data for 2007 shows that MySpace and Facebook together accounted for 88% of all visits to social network sites. The next closest competitor, Bebo , got a little more than 1% of the traffic.

There simply is no more competition in the general-purpose social network market. Other social media winners include LinkedIn (which wasn’t included in the Hitwise data), YouTube and Flickr. If you’re a big brand pursuing a broad strategy, you can safely place your bets on these services. For the next year or two, the also-rans will be busy finding buyers and merger partners.

Now is when it really gets interesting, because now the action shifts to vertical market sites. For many marketers, this is where the more interesting opportunity lies. For example, in the area of health, there’s CarePages.com, Wellsphere, Patientslikeme, RevolutionHealth.com and iMedix. Seniors can choose from Elder Wisdom Circle, Grandparents.com, Eons, TeeBeeDee and Multiply. Mothers can sign up for Cafemom, MothersGroups.com, MomJunction and MothersClick, among others.

And the action isn’t limited to consumer markets. Sermo is a social network for physicians, which now boasts more than 50,000 members. Doctors exchange information about serious medical issues and review cases in real time. Pairup connects business travelers for peer advice, networking and assistance. There’s a list of more than 350 social networks here.

Don’t let small membership numbers fool you. Many of these sites may be attractive marketing venues. Scan the groups, discussion topics and participants and look for content profiles that match your market. Prices are generally lower than those of the big social networks and the audience is far more targeted.

Marketing to vertical communities is very different from mass marketing, of course. If you’re interested in building a campaign on Facebook, have a look at what Southwest Airlines and Victoria’s Secret are doing, or the group started by Starbucks fans that has over 60,000 members. There’s nothing particularly high tech about their presence. They mainly provide a place where customers can keep in touch with the brand and have access to special offers and downloads.

When marketing to vertical communities, you need to dig deeply into the expertise in your organization. Members of a health-oriented network, for example, want to speak to people who have lots of expertise in nutrition and treatment. Discounts and promotions won’t work nearly as well in narrow markets as they do in broad ones. If you have articulate, interesting domain experts in your organization, now’s the time to pull them out of the shadows and engage them with knowledgeable communities. Live chats, webcasts and Q&A forums are particularly effective.

Much of the media attention in the last year has focused on the battle for social network supremacy. With that competition now over, the market will subdivide itself in interesting ways. This process will continue for years, presenting an ever-shifting landscape of new marketing opportunities.

Tech PR War Stories podcast offers new social media advice

Over at the Tech PR War Stories podcast, David Strom and I have been busy interviewing some fascinating people about social media marketing. Here’s a roundup of recent activity. You can subscribe to the podcast feed on the site or by clicking here.

Tamar Weinberg44: Internet Marketing Superlist Author Shares Secrets
At the end of 2007, Tamar Weinberg assembled an amazing assortment of blog entries about everything from headline writing to linkbaiting to becoming a Digg.com power user. Tamar will give you a twentysomething’s perspective on social media. If you’re trying to really understand this phenomenon, listen to what she has to say.

Four great trade show tips

Evan Schuman (TPRWS 39) of StorefrontBacktalk.com has spent a lot of time at trade shows lately and he sent us these four tips for getting the most out of media contacts.

45: The social media skeptic

Jennifer Mattern calls herself the “social media Grinch.” But that doesn’t mean she’s down on social media. It’s just that she thinks the focus on social media can distract PR people from their real work, In this interview, she outlines her cautionary advice about social media and stresses the fundamentals that PR people still need to employ.

46: How to find influencers

I’m writing a how-to book about social media marketing and one chapter is devoted to hands-on techniques for finding influencers online. It isn’t as simple as it sounds. In this episode, I talk about what I learned conducting influencer searches on behalf of a mythical Quebec resort. Step one: master advanced search.

47: Twitter magic

Many people’s first reaction to Twitter.com is that they just don’t get it. It looks like barely controlled chaos. But Twitter has inspired a passionate following. Laura Fitton is a poster child for a service that is revolutionizing the way people interact with their social networks. In this interview, she describes what’s unique about Twitter and how it can be useful even to people who don’t use it that often.

Nothing ivy-covered about these students

This morning, I had the chance to speak to a group of students in Susan Dobscha’s class at Bentley College. All I can say is: marketers, you’d better get ready for some big changes.

These students don’t have to be taught concepts like conversation marketing, customer engagement and the value of social media. They live it every day. They throw around words like “transparency” as easily as their predecessors used “CPM.” They understand intuitively that marketing is about relationships and what they termed “deep branding.” That means embedding a brand on a customer’s mind through a long-term series of interactions that stress value for both parties.

The topic turned to Facebook for a while, and it’s clear that the students regard it as a tool to facilitate relationships. They maintain very large networks of casual acquaintances — one student described them as the people you say “hi” to in the hallway but don’t stop to talk to — and social networks are a means to accomplish this. I asked a class of about 25 students if any of them had formed meaningful relationships online and only one hand went up. Despite what the older generation may think, these kids value personal relationships as much as anybody else, it’s just that they expect to maintain friends networks that are five or six times as large as those of their parents. Imagine how business will be done differently when millions of these people hit the workforce.

One innovative project that this class is pursuing is maintaining a blog. Each student is required to follow a single blogger and to comment upon his or her writings during the course of the semester. These real-time observations are incorporated into the curriculum, making the classroom conversation about as current as any I have ever seen. The instructor told me that this is Bentley’s first social media marketing course and that enrollment filled up in 20 minutes. You can see why: these kids understand where the future lies and they’re not weighted down by assumptions about how marketing should be done. Beginning next year, some of them will be working for you. I would advise you to listen carefully to what they have to say. And Bentley should take those enrollment numbers as a message.

I had lunch with a small group of Bentley marketing faculty, several of whom specialize in marketing analytics. One professor asked me, somewhat ruefully, if marketers have wasted the last 20 years perfecting their analytical skills. I’m afraid I only gave half an answer. I said that the focus on analytics was a function of the limitations of media at the time. In other words, it was impossible to have meaningful conversations with customers until a few years ago, so marketers focused on measuring the limited contact they had.

What I should have said was that analytics will be even more important in the coming era. The Internet is the most measurable medium ever invented, and the challenge for marketers will be to develop useful metrics from a vast menu of options. The marketing analytics discipline should only grow in importance as people sort through all the choices. While it’s true that relationship marketing demands different skills that analytical marketing, that doesn’t make analytical skills any less important. Quite the contrary.

Daily reading 01/27/2008

Conversation Agent: Forget Influentials: in Viral Marketing, Context Matters – Conversation Agent, Jan. 18, 2008

Valeria Maltoni analyzes recent work by Edelman to understand the dynamics of viral marketing. Conclusions: It’s the Network, Stupid. In other words, influence has less to do with individuals than with the patterns by which information is spread. Figuring that out will get you farther than understanding who are the top bloggers. Interesting stuff.

Web Ink Now: The New Rules of Viral Marketing – free ebook!

David Meerman Scott has another winner with this short e-book about viral marketing. It’s already been downloaded 20,000 times and once you read it, you’ll know why. No obligation, no registration, just get it.

Secret Websites, Coded Messages: The New World of Immersive Games – Wired, Dec. 20, 2007

This Wired story details Nine Inch Nails’ elaborate viral marketing campaign and a new kind of role-playing-based market. What’s interesting about the approaches outlined here is that they assume that the community will work together to solve the puzzle. Clues may be placed anywhere, and a person who finds a clue may not be the person who figures out how to decipher it. Rather than a player vs. player contest, it’s a group project.