The Little Button That's Changing the World
In the Wall Street Journal this morning, Andy Kessler explains why Facebook might just be worth the staggering sums now being bandied about. The reason has less to do with the vast, complex network of software and servers the company has assembled than you might suppose. What it really comes down to, Andy argues, is one little button:
As bizarre as this sounds, one of the most valuable innovations in technology over the last several decades is Facebook's "Like" button. That's what has propelled the company to a galaxy-orbit valuation for its forthcoming initial public offering, filed Wednesday.
This is not only because the word "like" is, like, the identifying word of an entire generation. It's because computing has evolved beyond just taking directions from humans—and instead is cozying up to us and sniffing out our emotions and intent....
Facebook doesn't sell phones or tablets, or ship physical products or even do searches. Instead, it has a vibrant, pulsating community of 845 million people willing to share their personal lives with others. Facebook is a giant emotional locker.
That's where the Like button comes in. The adage about advertising is that only half of ads are effective, but no one knows which half. So companies will drop $3.5 million to NBC for a 30-second Super Bowl ad. Or run Keystone Light ads on Comedy Central. They may work, but advertising—ask P&G—is an industry ripe for productive innovation. With the Like button, Facebook is like Bob Eubanks on "The Newlywed Game," who promised contestants "a prize chosen especially for you." Advertising's nirvana is an ad chosen especially for you. Of all the players, Facebook is the closest to delivering.
As Pat Sajak said in his post the other day, welcome to the future.
Oh, and if you enjoyed this post--well, you know what to do.
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Comments:
Jul '11
Re: The Little Button That's Changing the World
Ask not for whom the like button is pressed Peter, it is pressed for thee.
Sep '10
Re: The Little Button That's Changing the World
We need one for Healthcare.
May '10
Re: The Little Button That's Changing the World
Like! I especially like Andy Kessler. Both of his books that I have are very good.
Aug '10
Re: The Little Button That's Changing the World
But, Ricochet posts don't have a like button!
Nov '11
Re: The Little Button That's Changing the World
Am I the only one who thinks that this is just fine?
Re: The Little Button That's Changing the World
Sajak said it all. The future is a lot of people knowing a bunch of private stuff about you. Sounds frightening but it is tempered by the fact that your private information isn't that interesting anymore because we have the private information of everyone else to gawk at, diluting the value of yours.
If your kid has some embarrassing thing posted about him or her, that's the future. It will pass when the next kid's shame is posted tomorrow, and the next. When the Harvard admissions office sees the stuff, they will have to weigh it against all the other stuff from other shamed applicants. It's a wash.
As far as advertising, I've accepted that I'm going to have Legalzoom ads on my screen forever, even though I work for them and get free stuff. I have to pay for those conservative t-shirts though.
Feb '11
Re: The Little Button That's Changing the World
Last night at the dinner table, someone said something that my daughter agreed with. She put on a big grin, stuck out her hand with the thumb up, and her two older brothers shouted out, "Like!"
May '10
Re: The Little Button That's Changing the World
I dread the day when interactive ads in the windows of stores shout out my name as I walk by.
Jan '12
Re: The Little Button That's Changing the World
And Andy Kessler is paid how much?
Aug '10
Re: The Little Button That's Changing the World
I remember a thought experiment from when I was in high school.
"If we assume that surveillance technology will be small enough and cheap enough to become ubiquitous, would you rather that only the state have the ability to monitor you 24/7, or would you prefer that everybody have the ability to monitor you 24/7?"
May '10
Re: The Little Button That's Changing the World
Here at Ricochet we should not be satisfied with the choices everyone else "settles" for:
Feb '11
Re: The Little Button That's Changing the World
EJHill -- when I am giggling to myself all day today, the tadpoles will not understand. Papa Toad will look at me and wonder. But it will all be because of you. "So good you should pay extra."
Aug '10
Re: The Little Button That's Changing the World
EJHill: Here at Ricochet we should not be satisfied with the choices everyone else "settles" for: · 9 minutes ago
You forgot: "Like (except for foreign policy)"
Aug '10
Re: The Little Button That's Changing the World
Not at all. Killed my Facebook account a few years ago, and won't be going back.
Sandy
Am I the only one who thinks that this is just fine? · 2 hours ago
Jul '11
Re: The Little Button That's Changing the World
Bill Waldron: Not at all. Killed my Facebook account a few years ago, and won't be going back.
Sandy
Am I the only one who thinks that this is just fine? · 2 hours ago
22 minutes ago
Never had one.
May '10
Re: The Little Button That's Changing the World
For you Misthiocracy!
Aug '10
Re: The Little Button That's Changing the World
EJHill: For you Misthiocracy! · 1 minute ago
A little "on the nose" don't you think? My suggestion was much more subtle.
May '10
Re: The Little Button That's Changing the World
I get my own button:
Re: The Little Button That's Changing the World
EJHill: Here at Ricochet we should not be satisfied with the choices everyone else "settles" for: · 2 hours ago
Oh, you sweet, sweet genius, you, EJ!
May '10
Re: The Little Button That's Changing the World
LIKE! Now, c'mon! You knew I'd show up with that one eventually.