The year 2006 will be remembered, among other things, for being a time when 'social networking' fuelled a second web mania.
But if last year saw another honeymoon period for internet start-ups, 2007 could bear witness to second wave of e-business casualties if too many jump in gung ho again. For example, Ecademy, one of the world’s first online social networks, predicts some nasty libel cases if sites don’t set rules and values from the outset.
Last year saw an unprecedented hunger for social networking websites, with YouTube being snapped up for £1bn, and MySpace forging links with Google. This trend looks likely to grow in 2007, although success could be short-lived for businesses that think it's as simple as mimicking the social network phenomenon, Ecademy.com warns.
Ecademy.com, mooted as the MySpace for business people and entrepreneurs, was set up nine years ago, braved the dot.com crash of 2000, and now attracts more than 6,000 new members a month to its social network.
One of Ecademy's founders, Penny Power, believes the key to building a successful social network is building emotional connections and a real sense of community. A website that just wows you with flashy tools will lose its appeal fast.
"Tools are just fads; communities and friendships evolve. Social networks have to become communities, and in order to do that they require a culture and values," Power says. "What people want is intimacy and friendship, not just contacts. Being a name on a contact list is no different from being a business card in a rolodex.
"Knowing who you can learn from is what matters and what social networks should be about." Penny Power’s comments are backed up by reports in newspapers such as The Wall Street Journal that urge companies to exploit the web to make customers feel involved.
Ecademy.com even extends this policy to its banner advertising. For example, members of Zubka, a recruitment agency, can earn commission from placing friends in jobs. Another company, MWB Business Exchange, offers discounted office space.
This reflects the growing importance to brands of social networks and their increasing awareness that they can’t purely use them as advertising space, but must engage with the community.
Predictions for the future
Founders Penny and Thomas Power have put together the following predictions for the social networking boom over the next 12 months:
Jumping in: Tool-based sites such as LinkedIN and Xing will move towards building online communities with the introduction of facilities such as blogging.
Getting in on the act: The appeal of social networks will become so irresistible that most major business will try and buy into it in some way. Brands from all sectors will want to integrate into a pool of primed customers. Television companies are already encouraging viewers to post comments on plotlines in soap opera (ITV’s Emmerdale) and Kleenex has just launched a campaign with TV adverts encouraging online interaction from customers.
Choosing a platform: Social networks will become a sought-after method of tapping into niche markets. Companies will want to buy into them either for selling to, or recruiting its users. Facebook already has channels seeking staff for Microsoft and Ernst and Young, while Ecademy has just made links with Zubka.
Stamping out antisocial networks: The role of the social network is to act as a facilitator of relationships, which includes ensuring that message boards, blogs and postings are courteous and professional. Unmonitored social networks can sadly be used for antisocial behaviour.
Penny predicts that as brands race to launch social networks, online libel cases will surge, with message boards, blogs, and postings providing web users with the opportunity to degrade the reputation of people and companies. Ecademy advises websites to not overlook this and urges tight safeguards such as a clear code of practice.
Social responsibility is key in this marketplace. The repercussions of ignoring this fact are enormous for the individual taking part and the network owners.
In the interest of keeping members on Ecademy safe from antisocial behaviour of any kind Ecademy has a clear set of rules that all members are asked to adhere to called the Best Practice Guide.
Small groups mean big business: ‘Small groups’ and ‘clubs’ will be the web buzzwords of 2007. A chance to be part of a big network, but within the intimacy of a club or chat room, will drive web users to return to the same site more often by building an emotional connection.
Users will form strong allegiances to these clubs, just as they do with football clubs. More websites will offer users a chance to form clubs, as a way of building intimacy. Ecademy has operated a free club-building function for four years.
Grown up networking: The social networking Web 2.0 revolution has been led so far by the kids, but 2007 will see the over 35s getting on board. The BBC is rumoured to be introducing social networking sites for its most popular brands, such as Top Gear, Radio Times and BBC Good Food.
An indication of the growing importance of social networks to adults is Ecademy’s membership profile. Ecademists (Ecademy members) tend to be 35+, self-employed and have a family. Through this profile members support each other with their home, social and business life, meaning Ecademy’s purpose – to increase members’ emotional and financial wealth – is being fulfilled.
