The Social Network: The Sequel

At Sunday’s Oscar’s the much-favored to win film “The Social Network” grabbed only three of the eight Academy Awards it was nominated for—a surprise to some, who speculated the film was, well, over-socialized in the press and with the Academy.  In other words, they may have lobbied a bit too hard for a Best Picture win, and it cost them.  None of which changes the fact that the Social Network is a fascinating inside look at the origins of the phenomenon now known as Facebook.  (That said,it should be noted that Facebook founder and CEO Mark Zuckerburg contends the only thing the filmmakers got right was his wardrobe.) But what struck me most while watching the film was how nostalgic it all felt.  The excitement around the idea that you could “connect with friends” and share things about your life in real time through the internet was utterly groundbreaking way back in 2004, yet we barely give it a second thought now. Thankfully, the exhilaration of inventing a new technology comes across clearly in the film through well-cast characters rather than through boring images of computer screens, as is often the case in movies about the internet.

I also had a sense of déjà vu as I watched The Social Network, because two years before Facebook was even an idea, Xbox launched the first connected social network on television: Xbox LIVE.  While Xbox LIVE was initially positioned as a “multiplayer” gaming service, its core premise was simple: people like to do stuff with their friends while online.  Like Facebook, Xbox LIVE filled an unmet social need among gamers and grew rapidly; the service garnered over one million subscribers in the first two years. 

Nine years later, there are 30 million active Xbox LIVE members around the globe.  We’ve added new social experiences, including Facebook and Twitter—in fact almost 1 million friend requests take place per day on Xbox LIVE.  Not only is Xbox LIVE a TV-based social network in its own right, it’s also connected to the largest social network in the world—“the” Facebook.  While the story behind the launch of Xbox LIVE may not pack the same dramatic punch as the on-screen emotional fisticuffs of The Social Network, it is a notable entry on the social networking evolutionary timeline.  

I wrote recently about how social networking is changing gaming and how 2011 will usher in an expanded era of “social-ism” that will spread across all of our personal and professional networks.  A recent study seems to indicate these trends will also have impacts on our off-line interactions with others.  Today, I believe we are entering the second generation of social networking—call it Social 2.0.  More than anything, Social 2.0 will be defined by how marketers use social platforms to connect with consumers.  While the first generation has been about audience to audience interactions, this next phase will include advertisers in the mix—and the dynamic will expand to become audience to audience to advertiser. In short, in social 2.0, “likes” will become “buys.”  And “shares” will lead to increased market share.  Certainly,  brands are still figuring out how to connect the power of social media to purchase decisions, but it’s clear that social technologies are fueling this dynamic in some exciting new ways. Just think about it, the Kinect sensor enables you to socially interact with your TV with a simple voice command or gesture.  As an enabling technology, it holds great promise for the future of interactive advertising.  As social media evolves to include well-behaved advertisers on the Friends list, the connection – or should I say Kinection – between advertiser and audience may rise to a whole new level. 

Thank you,

Mark Kroese, GM for Advertising in our Entertainment & Devices Division

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