Social Networks, The New Walled Gardens

by Don Thorson on June 13, 2012 · 9 comments

Walled Garden” is a term that’s been used to describe how tech companies tightly control the ways third party devices, software and systems can interact with their platforms, and there are both PROs and CONs to this business model:

PRO: Products “just work” for consumers, and the tight guidelines in place reduce the myriad of headaches seen in similar, less controlled, environments.

CON: Users become “locked” to that company’s products and services, and outsiders (third-party hardware, services or software developers) wanting to participate in the ecosystem can be forced to pay an arbitrary premium simply to be there.

There is another form of the Walled Garden that has gotten less attention – the one around user contributed data. Be it Facebook, Twitter, Amazon, or Yelp – they all benefit from user contributed data, and they all put it to work for themselves. Some vendors have nameless analysts in secret bunkers analyzing your data and offering up new ads or related content based on what you are sharing. Some use that data and turn you into the advertiser by promoting a product or event you’ve liked to the rest of your community. Ultimately, the data that helps and nourishes the business is trapped on their servers and properties. It is locked up inside their walled garden. And who ”owns” it is pretty clear (hint: it’s not the users).

We here at Swipp think something feels broken in that model. We have Google and Facebook, representing two of the most prolific data gatherers in human history, and it’s not  particularly clear how the user or community benefit from that data. There is no question we benefit from using their services, but what about the DATA we all contribute via those services?

“Metcalfe’s Law”, which has evolved over time to keep pace with technological innovations, began as an expression around the value of a network being directly related to the number of users on it. As applied to social networks, the more data we put in, the more value it should represent to all of us – and the smarter we all (should) become. As we watch Facebook go from 250 million users to 500 million users to 900 million users, we’re pretty sure Facebook is getting a LOT smarter – however, we are not sure they are doing much to help the network or the users become smarter.

Time has shown society has gotten smarter the more liberated the information is. The Gutenberg Press brought printable books and an explosion of knowledge in 1436. The telegraph did the same in 1832. Then radio in 1895, television in 1936, PCs in 1981, the World Wide Web (the Mosaic browser in particular) in 1993, and the mobile web a few years later. With each of these technologies, knowledge was democratized, more accessible, more immediate, and easier to create – and we all got smarter. By some estimates, 2.7 zettabytes of data will be created in 2012 (that’s 10 with 21 zeros after it), which is 50% more than 2011. And yet, for some reason, we don’t feel 50% smarter than last year.

Aside from the hurdles of sifting, sorting and summarizing that massive set of data, we also see a new propensity to lock up this data, ration it out, and to force you to destinations to see the drips and drabs that you’re permitted to see.  The destination model is how you are fed ads, how more information is siphoned from you, and how the destination host gets smarter. Given our history of more data, spreading wider, dispersing faster, and being ever-more democratized, doesn’t it feel like we are moving in reverse?

The current model is broken.

We, as users of these networks, need to demand more. We need to make it clear that while we appreciate the services we get and respect the need for a business to make a profit, we also want to see information freed up for the better good of all. At Swipp, we have a vision for how this could happen, and with your help we look forward to making it a reality.

What do you think?  Do you have a sense that you’re giving more than you take from today’s social networks? Should we be demanding more? Do you feel uneasy with what they might be doing with your data? Or, have you gotten comfortable with it and just see it as the cost of partaking in services you appreciate?

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vniven 7 pts

How do you feel about Facebook's recent Graph Search product?  This leverages the data they collect about us to provide value back to the community.  Interested to see the beta when it's ready!

ccarfi 5 pts

 vniven Hi Vernon, we're definitely tracking the conversation around graph search. It will be interesting to see the uptake and what use cases are most common.

kristiewells 7 pts

Kara, I agree that some consumer based networks are meant to simply foster connections, and Facebook is a great example of that, whereas when I want to 'learn' about something I will usually 'Google it' or check out Wikipedia.

 

Some people will add content to Facebook and Twitter without worrying about how many people actually saw the item, who engages with it or even wondering what happens to the data once you hit 'send'. Some simply want to post things to the web and walk away. That is totally cool. In fact, I actually do this a lot as I use several of these networks as a digital archive of my life. 

 

With that said, we think you can still use the networks as you do and at the same time, there is a way to give people a better understanding of the impact the data added has to the social web, that will in fact, make you smarter about your surroundings, your social network and the world. 

 

It does take effort to get smarter *today*, but we envision a world where it will naturally happen each time you add another post. This excites both the consumer, and the marketer, that lives within me. 

 

 

 

Kara Hoisington 5 pts

Great post! Although, I don't necessarily agree with your assumption that we are suppose to be getting smarter due to the social networking sphere as it is working today, I don't think it was set up with that in mind (at least on the consumer-facing side). Facebook is about connections, so am I learning more about what my friends are doing everyday? Probably. Is that information making me smarter? Definitely not. My behavior has also changed as the level of information increases, from a sharer to a consumer of information. Also think that we cannot just sit back and tell the internet "Make me smarter!". Instead, we have to take it upon ourselves to do the investigating. There is TONS of data out there, you just have to dig a little. When books were printed, people didn't get smarter just by osmosis, they had to do something with that opportunity. Similarly, we have to take the opportunity to connect with people that will make us smarter through social channels and also mine for information that is important to us. 

PaulSweeney 7 pts

#VRM all the way :)

 

I really like the point about The Destination Host gets smarter but do you? I certainly get some new "socially filtered" news and reports through Twitter for instance, but FB does not make me any smarter, actually, that feels a bit like an oxymoran. I like what Nike are doing, and Sleep Cycle, and apps that help us find our own patterns. I've felt that Google et al have been vulnerable to a very simple cookie-monster-Tor for about 7 years or so now.  

donthorson 5 pts

 PaulSweeney 

 

Agreed Paul.  It feels like the users of social networks are a little numb to the imbalance of data entered vs value received.  You'd think it'd be triggering rebellion more than just  discomfort.  Facebook and others seem to be taking in our data, use it for their own purposes without returning overt ROI to the community, other than connecting us.  It feels out of balance - it feels a little as if the canvas maker also gets to own the painting.

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