Recent Facebook deals -- most notably with Microsoft, but also with BlackBerry -- indicate that the social network is taking its professional users more seriously than ever. Facebook is actively serving and recruiting non-Millennials. In looking beyond its initial, college-aged audience, Facebook is bridging a divide that no other social network seems to have successfully bridged to date: personal and business. In serving both interests, Facebook may be poised to win the social network race.
The Oct. 24 announcement that Microsoft paid $240 million for a 1.6 percent stake in the company not only reflects on the business community's assessment of Facebook's worth (the much quoted $15 billion), but it also indicates that Facebook is ready to partner, and perhaps learn from, an older, more established company.
Ovum's principal analyst, David Brashaw, commented, "Our longer-term concerns about Facebook are that it clearly has a way to go in its development, and this is one area that Microsoft may be able to both teach it and learn from it."
On the same day that Facebook announced the Microsoft sale, Dustin Moskovitz, Facebook's co-founder, said to a packed room at CTIA, "It's so exciting to see so many members of the business community coming on Facebook."
There is no question at this point in Facebook's strategic evolution that it is actively pursuing this demographic. The Facebook-BlackBerry partnership distinguishes Facebook from MySpace, as it demonstrates Facebook's interest in serving the adult, business (and high net-worth) community. At the same time, this expansion of reach and utility gives Facebook an edge over the business networking tool LinkedIn, which may be surprised to discover that Facebook has become a competitor.
LinkedIn used to be the network for professionals, but now those same professionals are "friending" each other on Facebook. Facebook offers many more ways for business people to stay in touch and up-to-date. On Facebook, they can track each other's conversations, see each other's photos and join likeminded interest groups.
If networking is about building connections -- not just making contact -- Facebook has a significant edge over LinkedIn, and now that edge includes access anywhere, anytime with the BlackBerry mobile device.
Noah Elkin, a frequent iMedia contributor, and the VP of corporate strategy for iCrossing, elaborated on the implications.
"The kinds of deals that Facebook has been making over the past six to nine months -- especially since opening its platform -- have been designed to appeal to a wider demographic," Elkin said. "Facebook is developing features and functionality to make it a site for social networking in all senses of the word, both personal and business.
"Relatively out of nowhere Facebook has become LinkedIn's biggest competitor, because let's face it, everyone likes widgets. LinkedIn is now looking to add a wider array of features, but it is playing catch-up to Facebook. This speaks to Facebook's ability to appeal to people's different activities and different need-states. MySpace is too messy and chaotic. And LinkedIn is too buttoned-down for many people and doesn't offer enough features to allow them to express their personalities. BlackBerry is an additional distribution channel. People want to be able to access their profiles on the go, and to the extent that you can be everywhere where your audience is, that gives you the advantage."
Moskovitz explained that the partnership with RIM (BlackBerry's parent company) was a natural fit.
"We could use two open platforms and really start intimately linking them together," he said.
In so doing, Facebook is letting users get further away from the desktop. With this new partnership, BlackBerry users can take a photo with their BlackBerry, and with the press of a button, send it to their Facebook page, without even opening the application.
Facebook is pioneering new ground; Facebook is forging new relationships; Facebook is securing financing that values the company at unprecedented levels, and many analysts think the vision and speed demonstrated by its leadership bodes well for the company and for marketers eager to reach a high net-worth demographic on this social networking site.
Emma Brownell is a managing editor for iMedia Connection. Read full bio.
