Reading List: Klout Hurts its Own Score

Klout on the Defensive: Social media-influence metrics company Klout has to be one of the more divisive startups in the digital media industry. Some see it as a Holy Grail of sorts, providing the kind of repeatable influencer marketing programs to do word-of-mouth campaigns at any sort of scale. Others see smoke and mirrors. Klout was recently dinged for its practice of opting in people to its scoring service. This ensnared some minors accidentally. It was just the spark needed for Klout doubters to come out of the woodwork. CEO Joe Fernandez responded in a tightly controlled Q&A. The crux of his argument is familiar: Klout made some minor errors, not many people were affected. The larger question is whether Klout can be more transparent about how its algorithms determine influence. It’s tempting to say Google doesn’t publish its ranking criteria, but Google’s search algorithm began as a peer-reviewed computer science project. Nobody really knows what’s behind Klout’s. Social Media Today — Brian Morrissey  @bmorrisseyBrands Need to Stay Social on Facebook: Brands that ignore the basics about social media end up paying the price offline, according to CNN Money. A recent study by London-based Conversocial, an analytics firm, showed that many major brands are completely ignoring complaints from consumers online, never responding to repeated posts about product problems or customer service issues. That can make a social media fan page a lethal weapon against brands, when consumers begin to feel slighted, in a very public way. Perhaps in the massive hype surrounding social, brands have forgotten that social media branding is about being in the midst of the conversation, not just likes.  CNN Money — Carla Rover @carlarover

B2B is Hot Again Among VCs: Over the past few years, B2B Internet companies have seen significant interest from investors, with social networking, gaming and mobile-focused firms receiving millions in funding. Now, though, investor interest is turning to B2B startups, and funding directed at those businesses is on the rise. Recent investments in mobile and advertising technology companies are evidence of that trend, for example, as is Groupon’s successful IPO earlier this month. WSJ — Jack Marshall @JackMarshall