Facebook is a relational environment. Consumers want to interact. Not transact.
Facebook is oriented around the web in a single channel space. Hence, consumers expect the experience to be free. Apple and Google now own the mobile2web.
Consumer interactivity in Facebook is based around community. The consumers will protect that space from invading brands at all cost.
A community based model of value creation is the yang of a transaction based corporate sales model.
Often people use Google as an example to justify the future potential revenue success of Facebook. What we need to be reminded of is that Googles revenues and services are a contribution of many of its community of users. In many ways Google ‘clips the ticket’ in very small amounts.
Google is also based around the community. However, it is my view Google creates an understanding of the community from the underlying analysis of the actual behavioral data. They then leverage that knowledge to create value for consumers and businesses: this is converted into sales revenue. For Facebook the behavioural data is owned by the consumers and community. If Facebook tries to monetize this then there will be a significant ‘yang’ in response.
Dr. Robert Davis has a PhD from the University of Auckland Business School in Marketing. He is a Fellow of the Chartered Institute of Marketing (UK).