Monthly Archives: October 2012

Klout: Validation or Vanity?

The surge of Social Media has led to an oft-joked-about side-effect. In addition to aggravating Nomophobia (the fear of being without one’s cellphone) and a general fear of being disconnected, Social Media has led to a rise in an unhealthy obsession with seeking validation. Sure, in theory, it’s great to have constructive feedback and it’s great to know your opinions matter, and that you do influence people around you. But aren’t we taking ourselves a little too seriously when we decide to keep measuring how much “influence” we have, just so our need for attention and self-importance is fulfilled? This is my primary pet peeve about Klout, and the narcissistic ‘Klout score’ metric.

I do get the relevance of such a metric and the need to measure social media influence for Brands and people whose livelihood depends on promoting themselves on social media. And I have to admit, as a marketer, Klout did pique my curiosity and I set about exploring its in’s and out’s with a lot of gusto. But I was quite disappointed when I realized there wasn’t too much science (or logic!) behind the metric, and that Klout can’t really be classified as a legit Validation metric. It’s really only a Vanity metric and an inaccurate one at that.

Klout has always relied on hazy parameters to measure influence, and their definition of Influence is, well, debatable, to say the least. They have a profound-ish explanation of what they mean by Influence on the site, and this little graphic below they’ve featured there is supposed to cover what Influence entails.

Klout “Influence” components
(Image source:

As is obvious, this implied scope is completely partial to Twitter as Followers, Retweets etc are relevant to only Twitter. Question is, what happens then, to the content we share on other social media platforms? Shouldn’t there ideally be a way to take into account influence and interactions across all social platforms (including Pinterest) accurately? Also, going back to the image alongside, how do ‘Lists’ play a role in one’s Social Media Influence?? ‘Lists’ are just a convenient way for Twitter users to sort their feed. If I have 1,000 Lists on Twitter, how does it indicate my social influence? If anything, it indicates a degree of OCD in me, but I fail to see how having more Lists makes me more influential. Am I missing something here? If anyone knows of an actual relevance of ‘Lists’ to one’s Klout score, please feel free to leave a comment! (UPDATE: Vielen Dank to my fellow-blogger ladyfromhamburg for sharing some great information on this: The ‘Lists’ component of Klout’s definition of Influence shows the number of Lists one is a part of on Twitter. That sure makes more sense, and puts my Lists-related confusion to rest! Now if only Klout would take some inspiration and start decoding all these parameters and more on their site. :))

What further blurs the already fuzzy scheme of things, is the relative weightages assigned to the parameters used to define ‘Influence’. Shouldn’t Klout be a little more transparent about this, especially since it claims to be the “Standard of Influence” that is supposedly meant to empower people who share content online? Does the Klout score include sharing and amplification of content only? Then what is the relative importance of those respectively? For instance, basis what I noticed on my own Klout dashboard – Retweets and Replies seem to have a higher weightage than Mentions. Let me attempt decoding what that effectively means: Only if what you’re saying is being passed on, do you have influence. Okay, this could be partly true – but what about the other part of it where you also need to be listened to, to consider yourself as having some influence? What about all the new followers/subscribers/visits you add with every new piece of content you share? And what about the followers/subscribers you have retained over a period of time? Those people have chosen to stay connected with you as they see some value in it, and find your content interesting. Shouldn’t that account for something?

And what about all the metrics that tell you how many people actually click on the links you share to read your content? Shouldn’t those influence your Klout score as well? As an apparent disclaimer, Klout says in its FAQs: “The Klout score is a reflection of Influence, not activity.” Err, this doesn’t help their case, does it?

Nevertheless, all the anti-Klout sentiment aside – there are a couple of things about Klout that I do find pretty interesting. First, their Brand Squad feature. This basically helps brands identify their influencers and evangelists. This has SO much potential; and if they are able to throw in Sentiment Analysis and Blog-searching capabilities in here, this could potentially be a great one-stop shop social media measurement tool for Brands – one that Klout can actually hope to make some revenues off of.

The second feature that shows promise is – the Perks tool. Of course, in its current form and with its current targeting algorithm (or maybe the lack thereof), it’s fairly useless. But think about the tremendous potential Klout’s ‘Perks’ has: It could serve as Klouts’s very own advertising model to serve targeted offers based on content, influencers and influential topics; as well as retargeted promotions/offers from Brands.

Even so, all the potential genius behind these tools notwithstanding, the fact that remains is – Klout still has a long way to go. Sure, a handful of Social Media mavens may already be judging us on the basis of our Klout score, but it’s going to take Klout a lot many enhancements before it can be taken seriously as an accurate social media metric and a reliable measure of actual social CLOUT, or it won’t be soon before long that Klout has to bow out! (Just couldn’t resist that cheesy rhyme!)

We wouldn’t shop where we socialize. Or would we?

You’ve heard it before, and chances are; you’ve said it yourself: “Why don’t they just stop running all those ads on Facebook?- nobody clicks on them anyway.” You are, of course well-justified in asking this question, since you for one, have never clicked on Ads on Facebook yourself, right? And you also don’t know anyone who clicks on them; either since those Ads are really not relevant, or purely because they’re just an annoying disturbance. So, the big question that remains is: Why DO they advertise on Facebook despite all the apparent ineffectiveness? Why do they still believe there is merit in allocating Advertising dollars to Social Media in general and Facebook in particular?

The fact most of us are in agreement about is, social media works at several levels. It works because it brings together Paid, Owned, Earned and Shared media all under roof. It works because at its very core; it’s a contemporary form of two of the most ancient forms of marketing: Word-of-mouth publicity and Two-way conversation. It works because at the end of the day, all businesses consist of people working with other people – and Social Media helps make your business more appealing to those other people by adding a voice and human quality to your business and brand.

Now comes the debatable aspect of the story. Does Paid-for Social Media marketing give you bang for your buck? Well, if you choose to focus on the right parameters, and remind yourself that this is just the tip of a huge, uncharted iceberg – the amazing potential Facebook holds as a marketing platform shines through all the cynicism.

TBG Digital’s Quarterly Facebook Advertising report (Q1 – 2012) has brought to attention how the engagement rates of Ads on Facebook have dropped by 8% since the end of last year, while Impressions (CPMs) and Clicks (CPCs) have become more expensive for Marketers and have risen by 41% and 23% respectively. However, it’s not that startling a development when you consider the fact that the number of Ads per page on Facebook have increased from 4 to 7. Banner Blindness is a well-acknowledged, universally present online phenomenon – not exclusive to Facebook. Facebook’s problem has more to do with Contextual relevance and Ad placement than mere Banner blindness. As a testimony to that, the same report also brings forth the remarkable success news partners have had on Facebook (Aka the Social Readers) – Click-through Rates for them have increased by a whopping 196% during a three-month period.

In effect, this is what all these statistics point to:

1. Contextual relevance: Don’t show me Ads that are not relevant to me.

An example of a Retargeted Ad via Facebook Exchange
(Image Source:

Retargeted Ads are based on Search and buying history that is recorded via cookies. There is an inherent similarity Facebook shares with Yahoo Mail w.r.t to the way its users interact with the site: Users usually stay logged onto the site on another tab/window while they continue with their other online activities. Key opportunities?: Cookies, and more cookies and therefore a golden opportunity to use Ad inventory for showing Ads that are relevant what the user’s actually been looking for! This strategy has served Yahoo very well, as it most likely will Facebook.

2. Placement: If you show me an Ad where I expect to see it, chances are I won’t click on it (or even notice it, for that matter).

The tremendous success rate of Facebook’s News partners proves that there may be a better way to make users sit up and take notice. Smart, non-intrusive integration of content in users’ news feeds would generate more interest and serve as an Ad in itself. If people see interesting content suggestions in their News Feed they’d actually appreciate checking out basis what they know they have enjoyed in the past; they likely wouldn’t dismiss those off as instantly as the Ads they are inclined to. Assuming of course, they don’t foresee clicking on them to be a cause of potential social embarrassment. 🙂

Which brings us to answering the question brought up at the beginning of this post. The reason marketers still continue to believe it makes sense and cents to include Facebook in their media plans is that Facebook has not only understood the challenges of contextual relevance and Ad placement – but has also taken 3 very promising measures to address them:

A. The Open Graph – which lets users share select activities on Facebook and presents marketers with branding opportunities at those milestones

B. The Facebook Ad Exchange – which makes Facebook’s Ad inventory available to real-time bidding (RTB) and retargeting

C. The ‘Want’ Button – which lets users create their own product wishlists on Facebook

Imagine the plethora of opportunities with being able to target people not just on the basis of WHO they are and WHERE they are, but on the basis of WHAT they DO on a daily basis, and WHAT they WANT. Pure marketing gold.

There is a catch to this, of course. All these functionalities are in varying degrees of nascency currently and Facebook has arrived pretty late to the Retargeting/ Ad optimization party. So whether or not Facebook succeeds in leveraging its true potential and optimizing its revenue stream – is something we will know in due time. If Facebook does drop the ball though, it will be quite a shame, since it is their battle to lose.

Facebook and its Chairy faux pas

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