All Things Digital

We’re posting all the interviews from the sixth D: All Things Digital conference that took place in late May.

But–as many readers have requested–they will all be available in their entirety in this column.

Here’s Part 2 of 4 of an interview I did with Facebook Founder and CEO Mark Zuckerberg and COO Sheryl Sandberg. (I will post one video part of the discussion with Zuckerberg and Sandberg every day this week, starting yesterday and concluding Thursday.)

The social-networking site has had quite a year as the hottest and most hyped on the Web 2.0 landscape. With fast growth and still-questionable monetization power, where Facebook is going will be a journey plenty will be paying attention to.

In this video, Zuckerberg talks even more about sharing information, explains why he wants to stay CEO, discusses mistakes like Beacon and successes like Facebook’s open platform, and defends widgets.

Meanwhile, Sandberg talks about why she came to Facebook from Google, compares widget popularity to Elvis fans and talks about where advertising spending is going online (think virtual ice cream cones).

When Apple releases its third-quarter earnings after the close today, Wall Street will be looking hard for a solid performance from the company to help buoy a tech sector smacked silly by weak reports from industry leaders Microsoft and Google last week.

It’s a lot of weight to put on the slim shoulders of Apple (AAPL), even though the company has shifted in recent years–largely due to the iPod and now iPhone phenomena–from a maker of devices for the elite to a mass consumer icon and a major influencer of key technology trends.

And, as has been much written about, Apple’s iPhone has brought the vision of a touchscreen minicomputer-on-the-go to the kind of reality that seemed impossible only a few years ago.

But more important to me is what is happening with the plethora of third-party apps now available from the iTunes App Store–both free and paid (picture below)–for use on the iPhone platform.

That’s because Apple has built a platform for adults.

Read more »

We’re posting all the interviews from the sixth D: All Things Digital conference that took place in late May.

But–as many readers have requested–they will all be available in their entirety over the next few weeks in this column.

Here’s Part 6 of 6 of our discussion with Microsoft (MSFT) Co-Founder Bill Gates and CEO Steve Ballmer, who were interviewed together by Walt Mossberg and me on the conference’s opening night.

(I posted one video part of the Gates/Ballmer interview every day this week, starting Monday.)

In this video, Gates and Ballmer answer questions from the audience about the Yahoo (YHOO) deal, widgets, Facebook and healthcare.

Today, Mike Homer, as well as many others suffering from incurable degenerative brain disease and dementias, will get a new video-sharing channel on YouTube (GOOG), along with a Web site and an interactive widget.

Last year, BoomTown wrote about the struggle of Homer, the longtime Silicon Valley entrepreneur (pictured here; I met him in the mid-1990s, when he was an exec at Netscape).

Unfortunately, Homer continues to suffer from Creutzfeldt-Jakob Disease (CJD), for which he is under treatment at the University of California at San Francisco.

“The Fight for Mike” has raised $7 million for CJD at UCSF, where Dr. Stanley B. Prusiner–who was awarded the Nobel Prize in 1997 for discovering the prion protein that causes CJD–is working on a major project aimed at defeating neurodegenerative diseases.

Now comes a unique collaboration between YouTube and the UCSF Memory and Aging Center, organized by two well-known Silicon Valley entrepreneurs, Ron Conway and Bill Campbell, with the help of YouTube Co-Founder Chad Hurley.

Conway and Campbell, along with the Homer family, have led the efforts to help find a cure for Homer.

Naturally, given Homer’s background, a digital initiative was inevitable.

Thus, the new project is the kick-off of the Memory and Aging Center’s “Defeat Dementia” campaign at UCSF, which is trying to use the Web and other digital technologies to help find new ways to get information out about public health issues.

Along with CJD, the YouTube effort will also focus on Frontotemporal Dementia (FTD), Parkinson’s, ALS and Alzheimer’s and try to engage the public and the medical community in a search for the causes and cures of these debilitating neurodegenerative conditions.

On the channel: videos of clinical-researchers and physicians discussing characteristics of the diseases; personal stories of patients and family members; and videos featuring advice and coping strategies from health-care professionals.

There is also now a Defeat Dementia Facebook group on the topic, and UCSF also has a partnership with Veodia.

Here is a video I did with Conway this week about the effort:

Here is the single favorite quote I read from EconAds in New York yesterday, from NeoAtOgilvy COO Greg Smith.

“No one wants a relationship with their mustard.”

Well, exactly. (Unless, it is Col. Mustard, of course, who is endlessly fascinating!)

This odd but spot-on observation was about why big packaged-goods advertisers–who are the really big spenders of the ad business–might be less than interested in leveraging social-media advertising and its promise of deep engagement with consumers.

No one wants to interact over mustard or mayo or ketchup or most products that pay the rent up and down Madison Avenue.

That has not stopped all sorts of social-media companies, from the big ones like Facebook to smaller apps makers, from touting a new and seemingly miraculous kind of advertising attached to their various widgets and interactive products.

To be fair, I do get it on a macro level and also can see the possibilities of the medium, as the idea of truly engaging with consumers has been the holy grail of many marketers.

The problem is, to my mind, that most of the solutions I have seen so far are much more gimmicky and lightweight than innovative and deep.

Whether it be giving out virtual products as gifts or letting users throw them at each other or getting folks to participate in some poll or silly game, none of it feels new and a whole lot of it feels faddish and eventually tiresome.

What is required–because ad agencies and marketers don’t seem to be doing it or, more precisely, doing it well–is for these social-networking companies to come up with either a dead-effective ad solution (as Google (GOOG) has done with its essentially direct-marketing nuclear weapon) or one that leads to an actual purchase or, most of all, one that truly is groundbreaking.

Now, I am not smart enough to think these things up, but it is clear someone has to, as the impact of social ads is still minimal.

Consider the stats from an article (also see the graph below) in The Wall Street Journal today: “In 2007, U.S. marketers spent $600 million advertising on social media, a sliver of the $18 billion spent on interactive advertising that year, according to Forrester Research. The number is forecast to spike to $6.9 billion by 2012.”

This small market is simply not as impressive as the super-sized valuations many of these social-media companies enjoy.

Looking back at a post I did almost a year ago, it feels as if little has changed in a significant enough way.

As I wrote, mocking the notion raised by one widgetmaker that consumers wanted to become “brand ambassadors”:

It seems, though, that the old canard about getting audiences to carry water for brands and loving it has found new life, as social networks and the widgets that live off them search for business models…

But to insist that audiences like to do this, for example, since they seem to enjoy wearing and showing off brands in their clothing and consumer lives, is a story that only a marketer could spin to big-product companies in need of a little love.”

I was debating this very notion of how social-media ads become successful with one social-media entrepreneur by email late last night–yes, this is what passes for fun in my life–who noted correctly that his hugely popular apps “might have enough cultural footprint now to have some staying power, assuming I manage to add depth to it fast enough.”

Now, it seems, we’re on the right track.

Speaking of how to get consumers to have a relationship with their mustard, here is a video of the classic Grey Poupon commercial that could teach Web 2.0 a thing or two or three about marketing:

In its ongoing bid to prove there is a robust and sustainable advertising business in the social-networking space, widget-maker Slide opened a New York City office and hired a big-deal online ad exec.

Of course, because it has to be hip, the office is in the always trendy West Village, instead of uptown in Manhattan on Madison Avenue.

The new director of ad sales is Jason Bitensky, who comes to Slide from his post as director of national sales at AOL (TWX) Media Networks/Platform-A. Previous to that, he worked at Comcast (CMCSA).

Until this hire, Slide had only four salespeople, all located at its San Francisco HQ, who sold campaigns and sponsorships for its third-party apps that are hugely popular on sites like Facebook and MySpace (NWS).

Advertisers are most definitely intrigued, experimenting all over the place and interested in different ways of engaging with consumers.

Nonetheless, they are still using tiny “innovation” budgets to test the space and have still not unlocked the treasure chests of big bucks that go to television.

In fact, here is an interesting story on the ad issues apps-makers face in The Wall Street Journal tomorrow.

The not-so-much-money quote: “The push by application companies means more players are competing over what is a relatively small pie. In 2007, U.S. marketers spent $600 million advertising on social media, a sliver of the $18 billion spent on interactive advertising that year, according to Forrester Research. The number is forecast to spike to $6.9 billion by 2012.”

Still, said Max Levchin, CEO of Slide, about the move in a statement: “The success of campaigns on our popular products, such as SuperPoke!, Top Friends and FunWall, has attracted the attention of not only top brands, but also top talent like Jason.”

BoomTown shall agree to disagree with our favorite widget king about SuperPoke’s potential as an ad vehicle.

But it is entirely true that Slide and other apps-makers have to convince big brands that the social-networking phenomenon is here to stay and is effective, well beyond its viral popularity and huge valuations given to companies in the space.

Earlier this year, Slide–founded in 2005–got a $50 million round of funding that valued the company at $550 million.

And here’s a disturbing, but very funny, spoof video about where all this SuperPoking eventually ends up: