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Facebook Beacon Is Dead. Long Live Amazon Grapevine.

Amazon has just come out with two new Facebook apps, as reported by Erick Schonfeld on TechCrunch. One is Amazon Giver, which lets friends share wish lists. The other is Amazon Grapevine, which lets you broadcast your activities on Amazon back to the Facebook newsfeed.

Pardon me…but isn’t that the basis of Facebook Beacon? Well, sort of. There are a few differences.

Amazon made this completely opt-in, which differs from the opt-out philosophy of Beacon. Also, product purchases are not included in Grapevine, but they were an important part of Beacon.

Personally, Beacon doesn’t bother me that much. I did not experience the early versions of Beacon with the too-fast notice that popped up on e-tailers’ sites. No accidentally revealing an engagement ring purchase. But there are times a purchase says something about you.

In fact, I think the idea of sharing your purchases with your friends has a lot of interesting potential. I can think of three different reasons people would share purchase information with friends and check out what their friends have purchased:

  1. Self-expression
  2. Product discovery
  3. Friends’ reviews

I’ve mapped those reasons to several different retail sectors.

  • Apparel = self-expression
  • Computer Hardware/Software = friends’ reviews
  • Consumer Electronics = friends’ reviews, self-expression
  • Home & Garden = self-expression, friends’ reviews
  • Sporting Goods = self-expression, friends’ reviews
  • Baby Products = product discovery, friends’ reviews

For instance, I think broadcasting your Apparel purchases is more a form of self-expression. People’s fashion tastes are an extension of themselves. Participation in some sort of Beacon-like program for Consumer Electronics, on the other hand, would be a chance to provide reviews to friends and read the reviews of your friends. And Baby Products would have a lot of discovery and reviews. See what your friends have purchased for their infants. Anyone who is a first-time parent knows the challenges of figuring out what to buy.

But, Beacon is still controversial, and Amazon doesn’t go as far as broadcasting purchases. So for now, we broadcast our ratings and reviews. This is pretty good. I can learn a lot from that.

The only problem is, the opportunities to share this way are still quite limited. Not too many e-tailers are doing this yet. However, Amazon has a rich history of driving innovation in e-tail. It was the early leader in e-tail. It was among the first to set up an affiliate program (Amazon Associates). It pioneered product recommendations.

So now it’s experimenting with the sharing of product-related information on social networks. Probably won’t be long before other e-tailers get on board.

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Facebook Fatigue: Ten Reasons

TechCrunch has a post up, “Facebook Fatigue? Visitors Level Off in the U.S.” It appears the number of visitors to Facebook has stopped its inexorable growth, and even declined in January. This is newsworthy because that’s a real change in the trendline. Facebook has been on a tear the past couple years.

I personally enjoy Facebook very much. I check it a couple times a day, and I have activities and apps I like there. But I see some of the issues that afflict the site. Below are ten reasons for Facebook fatigue.

1. Friend activity junk mail: I love seeing all the things my friends do. I hate seeing all the things my friends do.

2. App invite spam: Yeah, too much of this. There are apps you really like, and apps that force invites. More of the former, less of the latter.

3. Lame apps: I got an email from “Compare Friends” detailing my “highest rated friends”. Inane.

4. Non-friend friends: LinkedIn is great for professional networks. Facebook is really best for friends. Adding non-friend friends reduces your interest in “keepin’ it real”. [UPDATE: Robert Scoble, with 5,000 “friends”, expresses his lost interest in Facebook]

5. Is that all there is? Tons of apps. But the killer activity on Facebook hasn’t yet emerged. Amend that…the killer activity for the new joiners (> 30 y.o.) of the past year hasn’t emerged.

6. Backlash by the under-25 set: For the younger crowd, maybe the growth of the over-30 crowd has killed the cool vibe. MySpace making a comeback? Bebo growing?

7. Backlash on the under-25 management conceit: It’s true that Facebook came from college kids. But too much blah-blah about how they really “get it” sours the older folks.

8. Stop the presses: Is it possible for there to be too much media coverage? Facebook, and its ecosystem get a lot (e.g. Slide’s $500mm valuation). Too much talk about how members are making these companies rich.

9. Inevitable bumps: Beacon. Scoble raising hell over lack of contact portability. Inability to delete your account. Competitors’ responses (LinkedIn changes, MySpace API, etc.)

10. Heat always dissipates: Hard to stay hot forever. Google’s been the closest thing to that.

Let’s remember that Facebook still draws massive numbers of users, and continues to drive a lot of discussion and innovation. They’ve got money and smart folks there. Looking at the list above, several are within the control of the company.

As Mark Twain said, “The report of my death is an exaggeration”.