Earlier this week, Facebook found itself embroiled in yet another privacy "breach". And on cue, the media, politicians, and lawyers (yes, those lawyers) were ready to pounce.
At issue: the fact that Facebook user IDs were being shared with advertising and analytics companies through Facebook applications.
Facebook has sat by and watched as prominent application developers
have made millions upon millions of dollars on its platform, primarily
through virtual currency. Not surprisingly, Facebook wants a piece of
the action and is moving to take a piece of the action.
But that may not be so easy if the results of early deal making efforts
are any indication. Application developer Zynga, which operates some of
the most popular social gaming apps on Facebook, including Farmville
and Mafia Wars, may leave Facebook and set up its own gaming social
network after negotiations with Facebook over the use of Facebook's
upcoming universal payments and credits system reportedly fell apart.
A big chunk of the 'Facebook economy' doesn't belong to Facebook: it belongs to individuals and companies who have built Facebook applications.
By some accounts, the revenue generated from these apps will surpass Facebook's own revenue this year. So it's no surprise that Facebook is looking to do more to take direct advantage of the ecosystem it's built.
Companies like Nokia were in the mobile phone business long before Apple but with the iPhone and App Store, Apple has been able to eclipse larger rivals in the innovation department.
Today, Nokia fired back at the App Store with an app store of its own: Ovi Store.
Brands can get a generous lift when affiliated with high quality products such as the iPhone. But what about the applications in the App Store? Let's look at why Apple should build a sustainable eco-system for technology-based mobile applications, which is the key to product quality and research into the potential of mobile applications that brand marketers can harness.
With the rise of 'open platforms' on the web, particularly on popular
consumer-oriented services like Facebook and Twitter, it's never been
easier for individuals and small upstarts to get their applications in
front of millions of consumers quickly and efficiently.
The appeal of open platforms is easy to understand: instead of having
to deal with the dreaded chicken and egg challenge most new consumer
internet upstarts have to contend with, you can leverage the existing
userbases of popular services.