Facebook game changer - Should FB pay more than social capital?

Why does it suck?  For the reason that Social Media should pay more than what it does in social capital.

I've had a love hate relationship with Facebook for several months.  The biggest reason I've been leaning away form it is the fact that they are generating an income on watching what I like.  I feel like its big brother scrutinizing what I and those I know decide to click on.

In the past, this market research was a tedious and time consuming task with exit poll like workers watching in stores what we bought, analyzing sales numbers, and doing focus groups - just to get a glimpse of what ad on TV "might" of worked or which packaging customers picked up most often.

"Is it product package A or product package B?"

"Sales went up 10% when we ran the National Ad"

Since Facebook (and now Twitter) came about - the great social phenomenon of announcing our "Like" for something has replaced, in part, the past measure of consumer consumption becoming something of a gold mine.

How much of a gold mine?  Well, Facebook is said to of made 1.2 to 2 Billion dollars in 2010 (Definitely hit the "Like" button on that one).  And, besides offering a free service for you to post pictures of your cat or you're passed out frat brothers, how does that revenue make it back into your pocket?  Simple, it doesn't.

Sure it's a great tool; you can talk to friends, find a new boy/girl friend, announce your marital status, and passively associate with people whom you might never really interact with in real life.  All the while, your "Social Network" is hard at work data mining you, your friends, and your friends of friends, all for the purpose of honing the advertising you see on their site.

Hit the "Like" button on the new Snickers commercial; we'll let's show you this similar ad.  Like this organization/group - we'll show you sponsored ads from those looking to sell products and services to that community.

Don't get me wrong, its a genius idea.  Come to me, tell me what you "Like" to look at and then I'll show you paid content that serves that community.  On the flip side, we'll sell your data off to data mining companies and build demographic pictures of what socially you like or dislike so they can determine what to better sell you - because, after all, you've already told them what appeals to you.  Its like designer advertising, tailor made to what you already said you "Like".

It reminds me of a premise in Branding which is to market a product in a way that consumers will buy a licensed product for an aspirational relationship.

You buy and wear a Mickey Mouse T-shirt because you like Mickey Mouse.  You buy and wear a NASCAR T because you want show your interest and support to the sport.  The reality is that you're buying the right to advertise that product.  You're paying to advertise that brand.

Let me say that again, you're paying your money to advertise that brands message.

Sure, you get the affinity benefit.  Other brand aficionados will recognize your interest and you become a part of a social group, but you pay for it, and in the consumer marketplace were used to that.  But that idea is bleeding over now into Social Media.

So back to Facebook, rather than giving them total access to our "Likes" and that bit of valuable data, they give back to us more ads.  Sure, they give us access to a free service to post photos and make social plans, but isn't that the way of Social Media sites today?

Google, in their marketing genius at least allows web developers the ability to receive revenue for advertising on web sites with their Adwords program.  How much you make is based on your page ranking, which is a measure of sorts of search "Liking".  If someone visits your website you can earn some money from the visit if the visitor clicks an ad, Google can analyze that data and then use it to sell more ads.  It seems like a win win all the way around.

Not so on Facebook.

FB has no such value add for the ads it puts next to your post about your day at work or your kids music recital.  You don't earn anything besides social capital amongst your peers for hitting "Like" button - except for the right to be advertised to with laser targeted ads.

Essentially, you're buying a licensed T-shirt to sell your affinity to a product.  Maybe you like being marketed to that way.  Maybe you like some faceless marketing house knowing that you like posts of political messages from the right (or left), or that the majority of profiles you look at are of single women (or men).  Every time you use the Social Network, you communicate your preferences which cultivate a profile of YOU so they can market product and services better.

You like political messages and single women, well lets serve you an ad that exploits those things about you.  Its the same marketing as before, just laser targeted now to your profile.

What do I suggest?  Well, I'm glad you asked.

Why not give back some of that 1.2 Billion dollar revenue by way of commissions for your social expenditure.  Reward the Facebook user with some form of compensation for all the market research its mining out from our usage.

Or, maybe that's a business model for Google.  A new Social Network that pays you for telling industry what you "Like".  Now that would be a Facebook game changer.