Twitter’s New Role in Business

Despite Warren Buffett’s record of shunning new technology, the Chairman and CEO of Berkshire Hathaway joined the social media trend and created a Twitter account, @WarrenBuffett.  Within 10 minutes, Buffett had 10,000 followers, and 3 hours later he already exceeded 140,000 followers. However, Warren Buffett remains wary of new technology and social media. Michael J. De La Merced of The New York Times reports that at Berkshire Hathaway shareholders conference, Buffett disagreed with the recent US Securities & Exchange Commission decision to allow companies and executives to release material information on social media sites, such as Twitter and Facebook. Not only is this a threat to Berkshire Hathaway’s press release service, Business Wire, but false information can mislead traders and investors.

In the past, most firms on Wall Street shut off all access to social networks on their systems. In April, the SEC decided to allow public companies to disclose corporate information through social media. According to Bloomberg, it is the first financial information platform to incorporate Twitter into their system, allowing traders and analysts to monitor and analyze real-time tweets. Twitter updates by a select group of news services, financial writers, economists, and bloggers are streamed live to Bloomberg terminals, which are used by more than 300,000 employees on Wall Street. The Twitter news flow can be adjusted to light, medium, or heavy, and can also be filtered by company, industry, or market.

There are risks associated with relying upon social media for credible information. The New York Times reports that on April 23, a false tweet from the official Associated Press Twitter reported that an explosion at the White House injured Obama. Following the tweet, the Dow dropped 150 points and the S&P 500 lost $136 billion. The market quickly recovered when traders realized the Tweet was a hoax, and it was later discovered that the tweet was issued by a group of Syrian hackers. This has raised concerns about the combination of social media and electronic trading. Twitter accounts can be hacked, and the spread of false information can have serious consequences for high frequency traders who trade rapidly based on news and information.

Do you agree with the SEC’s decision to allow companies and executives tweet corporate information? What do you think the role of social media should be in finance and business?

– Kara

Are You A Startup Seeking Funds And Support? Try Google Ventures.

Google innately understands the power of a simple idea, a simple idea that will not become anything more unless it is supported intellectually and financially. Google Ventures, founded in 2009, is the venture capitalist investment arm of Google that selects technology startups to invest in. Its purpose is to provide funding for “entrepreneurs with a healthy disregard for the impossible”  and is certainly one of the company’s most promising solutions for new businesses.

Google’s Startup Lab uniquely blends expertise in the field of startup technology companies and provides an opportunity for companies to learn, work and share ideas. Google presents the platform for entrepreneurs to initiate conversation and attract funding to turn the fruits of these conversations into functioning prototypes.

The services provided through Google Ventures include assistance with marketing strategy, developing an engineering team, working with a functional design team and more. Below is just one of the companies Google Ventures has helped.

Upstart is one Google Ventures company now helping student entrepreneurs with their startups.

It is safe to say that a simple idea fostered through Google Ventures has the potential to become the next must-have consumer product or business solution.

Just one example of Google honoring its history and innately understanding what entrepreneurs need most, Google Ventures is a start up support system unlike any other venture fund in the world.

Do you have an idea they make like?

– Erica Zehnder

Interested in Joining a Mobile Startup?

Last week, I went to Paper Moon Cafe. Twice.

I may or may not enjoy eating there.

Yet, when I called the restaurant to pick up an order for takeout, I heard a recording which explained that Paper Moon only takes orders in person. Well, this was rather unfortunate for me: I love Paper Moon’s food, and I really wanted my Southern Love Burger as soon as possible rather than waiting for the entire fifteen-minute walk plus waiting time once I had reached the restaurant.

Isn’t there a better way?

San Francisco-based startup Tapingo, a mobile app developer, has created an application for ordering from the tip of your fingers via your cellphone. I’ve taken a look at the application, which can also be accessed from a desktop browser, and I must say: I’m impressed. It is an easily used interface that is very simple.

Tapingo is not just for restaurant orders, though. The mobile app is being adopted by campus bookstores and other partnered establishments. Here’s where the fun part comes in: Tapingo needs your help.

The company is looking for 2-4 college students to help with the application’s development. They would be paid $10 an hour with not more than 8 hours per week. For more information, email mickey@tapingo.com

– David

Softbank bets on Sprint, but can it rival Verizon and AT&T?

Recently, the Wall Street Journal reported that the Japanese wireless carrier Softbank will acquire 70% of Sprint for $20.1 billion. Fans of the famous Japanese entrepreneur and CEO of Softbank, Masayoshi Son, celebrate his past success in turning around Japanese companies. Softbank raised Vodafone up from its number 3 spot in the Japanese telecommunications market, and it plans on doing the same for Sprint, which is currently the number 3 wireless provider in the US. The deal may allow Sprint to challenge the current duopoly of Verizon and AT&T in the US by using the cash infusion to develop a 4G network to better compete with these two giants. Sprint also announced that it offered to buy a stake in Clearwire, a struggling broadband company whose wireless spectrum could be used by Sprint to support its network.

Masayoshi Son, Founder and CEO of Softbank

The telecom industry could be headed for more consolidations like this deal, as synergies between Softbank and Sprint may be able to increase their profitability and allow them to negotiate better terms from Apple and other equipment vendors. Also, Sprint offers unlimited data plans to iPhone subscribers, and the deal could amplify this competitive advantage. If the duopoly of Verizon and AT&T is challenged successfully, customers will benefit by enjoying lower prices and more choices of available products and plans.

Yet some remain skeptical that the Softbank-Sprint merger will be effective, as Seeking Alpha reported that Verizon and AT&T hold 80% of the US market share, and many analysts remain convinced that the two giants will stay at the top of the US telecom industry.  According to Reuters, Verizon had 108 million users and AT&T had 103 million users in 2011, while Softbank and Sprint combined only have 96 million users. With Sprint’s weak competitive position and brand value, Sprint and Softbank’s turnaround efforts may not have a great impact. The US telecom market is largely saturated, and it may be difficult for Sprint to steal customers, especially from Verizon and AT&T.

Do you think the Softbank-Sprint deal will change the telecommunications industry in the US? Will Sprint be better able to compete with Verizon and AT&T, or will Sprint remain dwarfed by these two telecom giants? Don’t be afraid to leave your predictions or thoughts in a comment!

– Kara

It’s a Tough Virtual Life: 5 Things You Should Know About Facebook

This summer in addition to interning with Appareline Inc, I also interned for Natty Paint, a contemporary women’s clothing line. As a Social Marketing intern, I developed content and managed social media accounts for the company’s Facebook, Twitter, and Instagram. One of my primary goals was to increase brand awareness through these various social media sites. I aimed to increase the company’s Facebook “likes” by at least 60% while working at Natty Paint. However, to be honest, I struggled to reach 40%.

This being said, I’ve created a list of “5 Things You Know (but probably don’t) about Facebook”

1. You become the SPAM you hate.
   Initially, to gain additional attention for the brand, I reached out to my social network by inviting friends to like the page, talk about it and view the website. Many of my “friends” did not respond in such a “friendly” manner to my posts. Apparently, incessantly promoting a brand on a social media page becomes more of an annoyance than a means of drumming up interest.
2. Your social range has a threshold.
   Unfortunately, one only has so many friends. Despite possessing a well-developed social network, after about a 3-week period, I found that I had saturated my friend base. If by that 3-week period, a friend in the Natty Paint demographic hadn’t responded to my advertising, they probably were never going to.
3. Myth: Facebook is free.
   Facebook limits how many people can view your posts. For your posts to reach more than a small percentage of your fans, you need to pay for a Facebook promotion. I did find that these promotions to be an effective way of increasing views and attracting traffic to the page. However, the expenses began to add quickly, especially for a small-startup company.
4. Question the value of a “like.”
   What does a “like” really mean? As I mentioned earlier, I was able to increase “likes” by 40%. However, despite this and heavily promoting photo albums, website merchandise was still not selling. More people were viewing our page, interacting with content and viewing new collections, yet no one was actually making a purchase.
5. You can’t (and shouldn’t) do it all. Don’t try tackle all social media platforms at once, instead focus on a select few. Trying to reach across too many social media platforms dilutes efforts. Instead, I recommend developing one platform with strong content. Then, work towards expanding onto other platforms after building a strong fan base. I did, however, find that supplementing Facebook promotions with email campaigns is an effective technique to involve fans and get them excited about the brand.

Hopefully you will find these tips helpful on your next Facebook marketing endeavor.

– Jenna

Facebook Reaches 1 Billion Users. Make Your Own! (No Programming Necessary)

In February 2004, months before his 20th birthday, Mark Zuckerberg launched Facebook from a computer in his Harvard dormitory. The social network now has 1 billion users, demonstrating the enormous reach the Internet allows sites such as Facebook to have over the world.

Photo thanks to Flickr user niallkennedy

Now, Zuckerberg is an expert computer programmer, but he’s definitely not the only person out there who can make a successful social network. In fact, you can be on your way to creating your own social network with three easy steps.

1. Find your niche. When Zuckerberg started Facebook, he created it as a student directory for Harvard University. What community do you think needs to be given a home online?

2. Find your software. As mentioned earlier, Zuckerberg knew computer programming backwards and forwards; fortunately, you don’t need to! A helpful Squidoo article about creating social networks includes a list of social networking software that require no programming experience whatsoever to use. Many of these programs have paid and free versions, though the paid versions usually have more customizable and advanced features.

3. Market your creation. A social network is useless unless people are active on it. Spread the word to your friends, run ads on Google, and use other devices at your disposal to get the word out. A comprehensive eHow article explains how to advertise a social network for free, and here are some highlights:

• Use pre-existing social networks such as Twitter and Facebook.
• Create a blog for your network to provide fresh content to users.
• Invite major players in other social networks to be the first users of your new site.

Of course, this is a very simple way of looking at the social networking process. The major take-away, though, is that you can make your own Facebook (just don’t use the words “book” or “face” in the name … that’s a breeding ground for a lawsuit) without any programming experience.

The Effects of Mobile Technology Marketing in Africa

What are the full opportunities with increasing mobile technology use in emerging markets?

Over the past 10 years, the amount of individuals using cell phones has dramatically increased, even in one of the worlds poorest continents: Africa.  The continent has the fastest growing rate of mobile phone usage in the world, lead by Kenya.

Because many African countries are among the poorest in the world, leading to diminished health and education, several entrepreneurs have created an innovation inspired by the increased use of mobile technology.  As a way of getting their message out there, various organizations have utilized SMS (short messaging service) messaging, or text messaging, as a means of distributing information.

One of these companies, FrontlineSMS: Medic, uses the tagline “text messages save lives,” priding themselves on bridging the gap in access to healthcare on a global scale.  And as studies have shown, SMS technology has indeed lead to increases in the general health for many populations.

Mobile technology is opening an entirely new untapped market for marketing and advertising.  While it is clear that many non-governmental organizations in the health-related field have taken advantage of this technology, the possibilities appear to be endless for other corporations and businesses.  Only time will show us what mobile technology can bring for the marketing world… what do you think the possibilities could be?

– Clint