DRM - Daniel’s Random Mutterings

It appears that XING (formerly openBC), a German business-oriented social networking site has just started running ads on their site. Only, they’re going about it the wrong way (or perhaps are just being too greedy).
According to a discussion thread on the site, the logic is that ‘premium’ (i.e. paying) members don’t get to see ads. Only non-paying members see the ads. That’s quiet a sensible approach in principle. But the non-paying members are also shown ads on the paying members’ personal profile pages.

These profile pages are what XING members use to list their business contact information, their interests, their business focus, etc. Many of these profile pages are also found via Google when searching for a person, they are added to email signatures, etc. In essence, your XING-based business calling card.

And now XING is embedding ads (of the animated, Flash, annoying type) into the individuals’ profile pages.

This is just plainly a dumb idea! XING is effectively fleecing paying members (of which I am one) twice. Not only do these users pay to use the ‘premium’ services of the platform, now they also generate income for XING from their profile page. And to add insult to injury, the model of not showing ads to premium members ensures that premium members have no way of actually checking which kind of ads are shown on their individual profile page. XING members are using the forum to express their anger at their discovery (aided by other, non-premium, users) that their business profile pages are adorned with images of underwear-clad models advertising DSL services, etc. One XING member, working for a large environmental organization, has expressed her upset at her personal profile page being used as a billboard for cheap airplane tickets.

I’m not sure whether these ads are context-sensitive yet, i.e. served based on content keywords in the user’s XING profile. That would be even more embarrassing. Imagine your profile page being used — based on your entry of business keywords — as an advertising billboard for your competition. And not only that, you also have no straightforward way of finding out about this, since you — as a premium member — don’t see the ads.

This is so clearly and patently a stupid idea that I’m surprised the XING people actually implemented it. Surely somewhere, somehow, deep within the collective mind of the XINGers there should be a last modicum of common sense? Along with the ability to anticipate how upset people would be about this? Apparently not.

What’s even more amusing is that there is a very simple way XING could have used this feature to benefit both them AND their customers. How? Easy… Revenue sharing! You agree (opt-in) to let us run ads on your profile page and in return we give you the premium membership at 50% discount.

But I guess greed and a because-we-can attitude are a powerful combination.

Technorati Tags: xing, openbc, advertising, greed

Update, Jan.4th: As soon as things started heating up in the Xing forums, the blogosphere took notice of this problem and began to cover the issue. xing is taking quite a beating — also in mainstream media. Here’s a selection of the blog reactions:
XING und die (versteckte) Werbung
Werbung auf Xing - sensibles Marketing?
Xing beginnt das Neue Jahr mit einem kräftigen Kurssturz
Xing: Opt-Out für Werbung ist vernünftig
myWhitelist
Xing vergrätzt Premium-Kunden mit Werbung

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This entry was posted on Tuesday, January 1st, 2008 and is filed under Industry. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.