THE PROMINENCE OF SOCIAL GRAPHING

The term “social graph” is often used to depict people’s relationships and connections. Such data is spread throughout the web and not centralized in one location.

Since many consumers have a desire to instantaneously share opinions and recommendations, companies that analyze online social engagement have the potential to significantly impact the existing market landscape. For instance, e-commerce can be altered by tailoring products to specific audiences based on a social media score.

The startup Klout demonstrates the strides that are being made in social graphing. Klout measures a person’s social media prowess and assigns an individual ranking. This score is determined by how many followers/friends a person has on social networks, how often his or her content is shared, and how visible of a web presence the person has.

Businesses, meanwhile, recognize that their content and customer feedback is being shared through social media with minimal corporate oversight. Recent acquisitions in the social media marketing space, as Berkery Noyes has highlighted in prior posts, show an interest in addressing social performance management concerns. One such transaction was Syncapse’s announced acquisition of Clickable, which uses the social graph to optimize online advertising.

Likewise, the social graph can be thought of as a big data issue in certain instances. 33Across, which acquired Tynt Multimedia earlier this year, is a good example of a company that correlates the social graph with big data. Some other transactions with a social graphing element thus far in 2012 include Facebook’s acquisition of Threadsy, Jobscience’s acquisition of Atomkeep, Betawork’s acquisition of Digg, Klout’s acquisition of Blockboard, and Twitter’s acquisition of Summify.

In addition, we have previously discussed retailers making social graphing acquisitions, such as The Home Depot’s acquisition of Redbeacon and Walmart’s acquisition of Kosmix Corporation.

There is also a distinct term known as the “interest graph.” Rather than identifying associations between people, it connects those with similar hobbies who may not have an existing personal relationship. Along these lines, Science acquired Pinpuff, which analyzes one’s influence on the photo sharing site Pinterest.

Given this level of M&A activity, there should continue to be a strong demand for companies offering analytical solutions and algorithms that help populate the social and interest graphs.