Why Facebook will buy Yelp

Robert Scoble had an example at one of the SXSW panels on how the “check-ins” we were all getting from Gowalla and Foursquare (“Jim Wood has just checked in at the Blogger’s Lounge”) could be made useful, instead of annoying.

Suppose he wants a recommendation for a barbecue place in Austin. He’s going to browse among his thousands of contacts for the handful of people who have completed the Gowalla BBQ hunt, requiring them to check in at six different BBQ spots. He can assume they know more about BBQ than 99% of the rest of us, based purely on their activity stream.

Of course, we don’t know if these reviewers have good taste in barbecue, but there are  tools for that as well. It’s what is done on Amazon and Yelp, where reviewers gain authority based on how active they are and how useful their reviews are to others. Combine an authority ranking system with check-ins and you’re getting some pretty good info, all auto-generated.

The biggest user of check-ins will soon be Facebook, the 800 pound gorilla that nobody at SXSW wants to talk about even though they reccently surpassed Google as the #1 Internet destination on the Web in terms of daily visits. Facebook users are already conditioned to share their activity streams with their friends anecdotally, and Gowalla and Twitter are adding links to make those streams geographically meaningful (Gowalla through geolocation, Twitter through its newly added “location” feature). You’ll know how popular your local Starbucks is with your friends and how often your best friends can be found there.

And wouldn’t it be great to add to this a coolness factor, what the smart and savvy kids are recommending? Well, that’s what Yelp is for. How about adding a Yelp tab at the top of your Facebook page where, after you visit a place, you can Yelp it? How about assigning reward points for the frequency of Yelp reviews; wouldn’t that be at least as satisfying as feeding the animals in Farmville?

Facebook also gains a bunch of new users (plus many already on Facebook who will become much more active) and a sales force trained in micro-targeting local businesses. It’s just too good a fit not to happen.

Facebook as silent majority

Here’s a good strategy for working a conference as unpredictable as South by Southwest Interactive. Give yourself an assignment, e.g. a resource you need to find or a topic you learn about, then refer back to it whenever there’s a choice to be made in your activity flow.

The Silent Majority: Facebook developers at SXSWi
The Silent Majority: Facebook developers at SXSWi

Here are my two. First, I wanted to find out about Facebook and SXSW. Specifically, I wanted to follow up on my hypothesis that while it is a vast online community, people in the geek world don’t want to talk about Facebook because it runs on a proprietary platform. I started by putting up a #Facebook #sxsw hashtag search in TweetDeck and watching the traffic. Yep, not a lot of it. I did run across the Facebook Developer Garage off site event and spent a couple of hours there yesterday. Show of hands requested from the audience: how many of you are Facebook developers? (almost everybody) How many actually use Facebook? (quite a lot fewer.)

We all love Twitter because it’s an erector set, but meanwhile Facebook is Dad’s muscle car (or maybe Mom’s) idling in the driveway. You can’t ignore 400 million users indefinitely. Josh from Gowalla got cheers on the stage and everybody loves Josh/Gowalla and how they now have their Facebook Connect check-in. So what happens in a few months when Facebook introduces its own check-in feature?

Meanwhile, my second assignment was related to the fact that several folks have recently asked me about being a social media consultant for them. I’m not sure it’s a good fit because social media marketing requires constant attention (similar to good P.R.) and as a freelance copywriter I sometimes need to hole up for a couple of days at a time. So I wanted to find folks who actually are social media consultants and are good at it. Through the #facebook #sxsw tag I ran across the the folks at The KBuzz. I went to their mixer to meet them and talked to some of their clients and was impressed. Mallorie Rosenbluth is their Director of Small Business which is what most of my inquires would be; for $1000 they will design a Facebook page for you and do a detailed analysis of your business and your social media opportunities, then provide recommendations which you can execute on your own or through a monthly contract with them.

Check them out. UPDATE: Mallorie contacted me to say that if you use the code OTIS10 they’ll give you 10% off above pricing.