Klout: Measuring Your Influence
Klout.com, the San Francisco based social media analytic company has made headlines recently over a changes made to its scoring system. For those who are unaware about what Klout is and does, it evaluates user behaviour on social media sites such as Facebook, Twitter, and LinkedIn to name a few. It then uses an algorithm to compute a score for each individual based on their use and how others interact with them on these social networks. This score represents that individual’s influence on social networks. In other words, Klout measures a user’s ‘power’ in a specific social network.
This past Wednesday, Klout released a tweaked version of their score computing algorithm and was met with some very unhappy responses. This change was the result of a shift in the company as it looks to the future and the potential for monetizing its product. The question now stands about whether or not there is user demand in regards to knowing their ‘influence’ in social networks, and according to investors there seems to be. Klout is rumoured to have raised $30 million for a $200 million valuation according to Business Insider.
What exactly could be driving these investors to put so much money into Klout and social media ‘influence’ algorithms? One need only look to topic of network power in relation to trading and information cascades. Knowing an individual’s ‘power’ in social networks could become a valuable tool for companies looking to hire new employees where the ability to interact socially, especially in social networks, could be an integral part of the business. Hotel companies for example, may utilize their employee’s social networks, or their ability to create and maintain strong social networks, to help advertise their rates and special offerings. Any other company that utilizes social media to generate hype and increase awareness about their products could potentially find knowing Klout scores to be an outstanding resource. Therefore companies may be willing to pay to know as much information as possible about potential candidates in an effort to hire an employee that would fit their needs in this area.
This potential increase in business interest in Klout scores would also lead to a marked increase in individual interest in the product. Any individual looking for a job where having a high Klout score is favourable to you, would then become interested in how to achieve and maintain a high score. In this regard, Klout may offer services to paying customers that help and teach individuals how to do such things.
It will certainly be interesting to see how Klout will fair in the future as it, and the social networks that it utilizes, continue to grow.
http://content.usatoday.com/communities/sciencefair/post/2011/10/klout-clouted-by-twitter-fans-/1
http://vator.tv/news/2011-10-28-klout-reportedly-raising-30m-for-200m-valuation