Why all the hype around social networks? Facebook’s astronomical valuation and Microsoft’s investment in it; Google’s acquisition of Youtube and their OpenSocial concept; The popularity of MySpace and their plans to offer targeted advertising… Why the hype? Because it is finally recognized that word of mouth is in fact much more powerful than all brand advertising schemes put together! As a matter of fact, in most cases, word of mouth accounts for over 70% of marketing pull!
But where is the word of mouth most powerful? In the various internet communities or in real life? Will you turn to your so-called “friends” on Facebook if you need advise on buying a new car? Maybe. At least for the fun of it. But, most likely, it is the people that you know well and trust, your “real” friends, whose advice you will follow. When I look at the list of my friends on Facebook – how many of them are my “real” friends? 10% at the most!
