The Praized Blog

In business blogs everywhere, it’s that time of the year again, when we start looking back at the year that was and we start to forecast what 2008 will look like. In this post, I look back at 2007 and discuss the most significant local and social media news of the year.

1) Facebook

Clearly, Facebook was the number one news of 2007. By allowing anyone to open up an account in the Fall of 2006 (at about the same time they introduced their newsfeed function), Facebook paved the way for the arrival of tech enthusiasts and early adopters/influencers. Silicon Valley got very excited in the Spring and the launch of the F8 platform in May, allowing third-party developers to build applications, brought more excitement. I believe early adopters’ interest in Facebook has peaked (and has even started to decline) but the job is done. More than 55M active users of all ages access the site every month. The social network had a couple of setbacks around the end of the year with the beacon fracas and the launch of OpenSocial by Google but I believe it does not tarnish their luster. Facebook retaliated by opening up their infrastructure. The biggest benefit to the Web in general: Facebook is introducing people to the social web (micro-blogging, blogging, pictures uploading, “friending”), people who will eventually graduate to more complex social applications.

2) The opening up of the social web

Symbolized by the publication of the OpenSocial standard, the web is becoming more social and more open. Additionnally, the announcement by Six Apart that Movable Type, their leading blogging software, is going open source and the launch of the DiSo initiative to create open source implementations of distributed social networking are also important projects. Social will be part of the fabric of the web.

3) The launch of the iPhone and the unveiling of Android

Apple created quite a stir in June by launching the iPhone, a beautiful device that changes the way we see mobile web access. It’s not a perfect machine by any mean (still very closed) but it’s a game changer. The Android mobile platform by Google is also potentially very disruptive and paves the way to an interesting 2008 in that field. Local mobile search, the famous holy grail of local search, is on the verge of becoming reality.

4) The acquisition of Ingenio by AT&T/YellowPages.com

This purchase is a critical move for YellowPages.com and it clearly signals to the rest of the directory industry that call-tracking/pay-per-call will be the unifying standard in local product bundling, allowing a single sales force to sell multiple media formats. In the same vein, Marchex acquired Voicestar earlier this year.

5) The Radiohead “pay what you want” experiment

Even though it wasn’t as radical as industry watchers wanted it to be (Radiohead is still going to release a CD version of InRainbows), this trial by one of the most preeminent alt-rock group generated a lot of discussions in the blogosphere. Consumers were allowed to pay whatever they wanted to pay for the download including not paying at all. ComScore released some disheartening information about the percentage of people who paid for the album but that was quickly shot down by Radiohead’s management. In any case, the music industry needs more bleeding edge experiments like this one to find their future business model(s).

6) Reality check in the local search industry

The last two Kelsey conferences offered a sobering and realistic look at the realities of local search. Local is tough, hasn’t been cracked yet but offers tremendous opportunities. Stakeholders are realizing that partnerships will be needed to succeed. Two senior executives from the print directory industry talked openly about the opportunities and challenges of being a traditional media publisher and it was the first time that we heard that kind of discourse publicly. Google, Yahoo and Microsoft are all courting traditional local media companies that possess large sales forces to help them increase local revenues. I think we’re getting close to the “acceptance” stage of the Internet grief cycle and we should see a lot of action next year on the local search front.

I’d love to get your feedback on 2007 events. Anything important I forgot?

Following this blog post yesterday about my speculation that Google is building a mobile development platform, the whole blogosphere announced this morning that Google is leading an initiative called OpenSocial that will see the launch an open social web API. This new API will allow social networks and application developers to work together using a set of standardized instructions. Partners currently include Google’s Orkut, LinkedIn, Hi5, Friendster, Salesforce.com, Oracle, iLike, Flixster, RockYou, and Slide.

Flickr photo by magerleagues.

As Marc Andreessen said this morning on his blog,

This is the exact same concept as the Facebook platform, with two huge differences:

• With the Facebook platform, only Facebook itself can be a “container” — “apps” can only run within Facebook itself. In contrast, with Open Social, any social network can be an Open Social container and allow Open Social apps to run within it.
• With the Facebook platform, app developers build to Facebook-proprietary languages and APIs such as FBML (Facebook Markup Language) and FQL (Facebook Query Language) — those languages and APIs don’t work anywhere other than Facebook — and then the apps can only run within Facebook. In contrast, with Open Social, app developers can build to standard HTML and Javascript, and their apps can then run in any Open Social container.

TechCrunch explains in more details:

OpenSocial is a set of three common APIs, defined by Google with input from partners, that allow developers to access core functions and information at social networks:

• Profile Information (user data)
• Friends Information (social graph)
• Activities (things that happen, News Feed type stuff)

Hosts agree to accept the API calls and return appropriate data. Google won’t try to provide universal API coverage for special use cases, instead focusing on the most common uses. Specialized functions/data can be accessed from the hosts directly via their own APIs.

What it means: this is a major announcement, maybe the biggest announcement of the year. Standardizing the social web will go a long way towards the explosion of social as a key element of the Web operating system and one more step towards the web becoming a gigantic word of mouth machine. You’ll want to embrace these standards.

Update: According to AlleyInsider, MySpace will announce today that they join the OpenSocial “alliance”

Update2: Techcrunch reports that blog software publisher SixApart is also joining. Bebo also.

TechCrunch reports on a secret meeting that happened at Google in the last few days. It looks like Google is about to “out open” Facebook by allowing developers to leverage Google’s social graph information.

The short version: Google will announce a new set of APIs on November 5 that will allow developers to leverage Google’s social graph data. They’ll start with Orkut and iGoogle (Google’s personalized home page), and expand from there to include Gmail, Google Talk and other Google services over time.

On November 5 we’ll likely see third party iGoogle gadgets that leverage Orkut’s social graph information - the most basic implementation of what Google is planning. From there we may see a lot more - such as the ability to pull Orkut data outside of Google and into third party applications via the APIs. And Google is also considering allowing third parties to join the party at the other end of the platform - meaning other social networks (think Bebo, Friendster, Twitter, Digg and thousands of others) to give access to their user data to developers through those same APIs.

And that is a potentially killer strategy. Facebook has a platform to allow third parties to build applications on Facebook itself. But what Google may be planning is significantly more open - allowing third parties to both push and pull data, into and out of Google and non-Google applications.

That big rumor comes on the heels of another big announcement from Six Apart about open sourcing the Web’s social graph (a la OpenID). If you thought the Web was fragmented, wait until you can start building application on top of Google, Yahoo or MSN’s social graphs…