Weekly Digest of the Social Networking Space: Nov 6, 2008

I’m respecting your limited time by publishing this weekly digest on the Social Networking space, which I cover as an industry analyst. By creating this digest (I started this over a year ago) it really helps me to stay on top of the space I cover.

I’ve created a new category called Digest (view archives). Start with the Web Strategy Summary, then quickly scan the succinct and categorized headlines, read text for my take, and click link to dive in for more.

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Web Strategy Summary
Data shows that one third of brands have a presence on social networks sites, Ill bet if I applied my scorecard, most are doing it wrong. Despite this increase in marketer adoption, ad rates have dropped in third quarter. Watch how some startups are received large amounts of funding, like LinkedIn last week, to RockYou this week, a great time to grow the business is when other boats are leaking.

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Data: 1/3rd of Brands have a presence on Social Sites
Although Facebook needs to step up how they interact with brands, 1/3 of them have a presence on the popular social network according to eMarketer. MySpace and YouTube quickly follow suit. Adam Cohen of Rosetta was quoted –I met him last week.

Data: Ad Rates drop in Social Networks
This chart (Rubison), which shows more than social networks, indicates that the cost of CPMs for social networks has gone down 3% quarter per quarter. Other niche segments hit worse, yet tv, technology, and particularly news go up.

Funding: RockYou aims for Asia, raises $17mm
Using Asian investors, Widget maker Rockyou plans to expands to Asia by raising funds then growing into Asian markets –great for mobile.

Policy: Management should have process for employees on social networks
Seems more like a brain dead ‘duh’ but management should have policy for how people communicate in this world where life and work collide both at the office –and at home.

Growth: Facebook growth spurt may require more finance
Excellent analysis from Techcrunch on the growth of Facebook, showing some of the costs and indicators of revenue not meeting expenses. As a result, it’s suggesting financing may be needed for further it along.

Study: Social Networking may help in workplace
This 90+ page document suggests that social networking in the workplace may give some cultures an edge up from others.

Open: Facebook Connect to gain adoption
RWW discusses how FB Connect to gain adoption in coming time, we know Barack Obama’s site is already compliant.

Advertising: MySpace + MTV partner in contextual ads
Perhaps more than just contextual, these ads are aware and trigger information about the show on MySpace, extending the shows effort to cross medium: “For example: an “attribution ad” for Comedy Central talk show The Colbert Report could include information about when the program is broadcast on-air.”

Best Practices: How to get the most out of LinkedIn
This guide gives some practical advice how to get the most out of growing business social network, LinkedIn.

RIF: LinkedIn cuts 10%
In order to stay in the black, LinkedIn (like many other Sequoia backed companies) cuts back expenses, odd considering they’ve raised so much recent capital.

If you’re a social network, or widget company, I want to know of your news, send me an email, or leave a comment below. Help me stay up to date.