“Social Media: Fad or Investment Opportunity?” caught my attention this morning. I am on the look out for hard hitting ideas for maximizing the return on investment (ROI) from an organization’s social media activities.

The article asserted:

Paying a sky-high price for something in popular demand can often be a recipe for disappointment. However, the long-term rewards for the winners in this exciting area could be monumental if companies can capitalize on the opportunities through advertising.

Okay. The angle syncs with my view, but I am not sure I have a “hook” or “handle” to grab. I prefer social opportunity insights to have hard facts or a turn of phrase that adds heft or a sticky grip to an opportunity.

What do I mean?

We read an interview with Robert Peck, Quasar CA (the CA stands for “capital advisors). In 2005, Bob, as he is known to his colleagues, flashed on our radar for his early interest in social content, social media, and social networking. A lengthy interview appeared in HighGainBlog.com as “Exclusive Interview: Robert Peck, Quasar Capital Advisors.” We were surprised at the interest one of his insights triggered. Specifically, he talked about a “confluent space.” The example he used was:

HighGainBlog: So what’s the focus of Quasar?

I kept close watch on some of the new business opportunities that were becoming evident where the Wild West of the Internet was intersecting with more traditional businesses. The burgeoning growth of the iPhone and android mobile ecosystems were tremendous for the Internet, as web sites became more accessible for people on the go. Apps only amplified the robustness of Web offerings and expanded the reach of Internet companies”

HighGainBlog: Can you give me an example?

Sure. You have one example in your hand. The Apple iPad is an exemplary product, and it has made clear that the Internet, consumers, and retail can be combined in what seems to be a category killer. I wanted to work in that type of confluent opportunity space. I needed a new vehicle to explore the intersection points that were being created by companies like Apple and other firms.

Here’s the point for the social space, which we will cover more aggressively in Strategic Social Networking in August 2011.

First, the notion of a confluent space is a good one. The stroke of genius was the insertion of “opportunity” in the phrase. So, what we noted is “confluent opportunity space.” Unlike other terms which are mostly without impact in communicating what makes social network centric options so interesting is the packaging of “confluent” and “space”. Opportunity just drives home the upside. In fact, we think the phrase speaks loudly about what types of investment focus Quasar CA has.

Second, in an unrelated sector such as text mining and text analytics, the phrase explains where important companies like Digital Reasoning will be moving. The phrase makes clear that intersections are more important than narrow vectors of expertise. I would go so far as positing this idea:

A narrow vector company limits itself because without confluence–that is, a social and narrow vector combination–breaking into the niches where revenue is obtainable may be impossible.

Third, high value terminillogy connotes sharp thinking. We have to give Bob Peck an “A” in this department. Last week we spoke with two firms. The sparkle scale was tallying a two or three. Mr. Peck was hitting the high nines. That’s Google scale thinking in my book.

Net net: the value of the social shift in online, business functions, and content is a result of confluence. Mr. Peck’s phrase is more suggestive than George Gilder’s “convergence”. See TELECOSM: How Infinite Bandwidth will Revolutionize Our World [

For more information about Robert Peck, visit his Web site at www.quasarca.com.

Stephen E Arnold, July 12, 2011

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