adtech

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crysalisIn The Adpocalypse: What it MeansVlogbrother Hank Green issues a humorous lament on the impending demise of online advertising. Please devote the next 3:54 of your life to watching that video, so you catch all his points and I don’t need to repeat them here.

Got them? Good.

All of Hank’s points are well-argued and make complete sense. They are also valid mostly inside the bowels of the Google beast where his video work has thrived for the duration, as well as inside the broadcast model that Google sort-of emulates. (That’s the one where “content creators” and “brands” live in some kind of partly-real and partly-imagined symbiosis.)

While I like and respect what the brothers are trying to do commercially inside Google’s belly, I also expect them, and countless other “content creators” will get partly or completely expelled after Google finishes digesting that market, and obeys its appetite for lucrative new markets that obsolesce its current one.

We can see that appetite at work now that Google Contributor screams agreement with ad blockers (which Google is also joining) and their half-billion human operators that advertising has negative value. This is at odds with the business model that has long sustained both YouTube and “content creators” who make money there.

So it now appears that being a B2B creature that sells eyeballs to advertisers is Google’s larval stage, and that Google intends to emerge from its chrysalis as a B2C creature that sells content directly to human customers. (And stays hedged with search advertising, which is really more about query-based notifications than advertising, and doesn’t require unwelcome surveillance that will get whacked by the GDPR anyway a year from now.) 

Google will do this two ways: 1) through Contributor (an “ad removal pass” you buy) and 2) through subscriptions to YouTube TV (a $35/month cable TV replacement) and/or YouTube Red ($9.99/month for “uninterrupted music, ad-free videos, and more”).

Contributor is a way for Google to raise its share of the adtech duopoly it comprises with Facebook. The two paid video offerings are ways for Google to maximize its wedge of a subscription pie also sliced up by Apple, Amazon, Netflix, HBO, ShowTime, all the ISPs and every publication you can name—and to do that before we all hit Peak Subscription. (Which I’m sure most of us can see coming. I haven’t written about it yet, but I have touched hard on it here and here.)

I hope the Vlogbrothers make money from YouTube Red once they’re behind that paywall. Or that they can sell their inventory outside all the silos, like some other creators do. Maybe they’ll luck out if EmanciPay or some other new and open customer-based way of paying for creative goods works out. Whether or not that happens, one or more of the new blockchain/distributed ledger/token systems will provide countless new ways that stuff will get offered and paid for in the world’s markets. Brave Payments is already pioneering in that space. (Get the Brave browser and give it a try.)

It helps to recognize that the larger context (in fact the largest one) is the Internet, not the Web (which sits on top of the Net), and not apps (which are all basically on loan from their makers and the distribution systems of Apple and Google). The Internet cannot be contained in, or reduced to, the feudal castles of Facebook and Google, which mostly live on the Web. Those are all provisional and temporary. Money made by and within them is an evanescent grace.

All the Net does is connect end points and pass data between them through any available path. This locates us on a second world alongside the physical one, where the distance between everything it connects rounds to zero. This is new to human experience and at least as transformative as language, writing, printing and electricity—and no less essential than any of those, meaning it isn’t going to go away, no matter how well the ISPs, governments and corporate giants succeed in gobbling up and spinctering business and populations inside their digestive tracts.

The Net is any-to-any, by any means, by design of its base protocols. This opens countless possibilities we have barely begun to explore, much less build out. It is also an experience for humanity that is not going to get un-experienced if some other base protocols replace the ones we have now.

I am convinced that we will find new ways in our connected environment to pay for goods and services, and to signal each other much more securely, efficiently and effectively than we do now. I am also convinced we will do all that in a two-party way rather than in the three-party ways that require platforms and bureaucracies. If this sounds like anarchy, well, maybe: yeah. I dunno. We already have something like that in many disrupted industries. (Some wise stuff got written about this by David Graeber in The Utopia of Rules.)

Not a day goes by that my mind isn’t blown by the new things happening that have not yet cohered into an ecosystem but still look like they can create and sustain many forms of economic and social life, new and old. I haven’t seen anything like this in tech since the late ’90s. And if that sounds like another bubble starting to form, yes it is. You see it clearly in the ICO market right now. (Look at what’s lined up so far. Wholly shit.)

But this one is bigger. It’s also going to bring down everybody whose business is guesswork filled with fraud and malware.

If you’re betting on which giants survive, hold Amazon and Apple. Short those other two.

allthenewsthatfitsintabs

#Publishing

When I heard that Backchannel would be moving to Wired while Google’s Contributor service (“buy an ad removal pass for the web”) was not only rolling out, but already deployed by some publishers (e.g. by Business Insider UK)—and while Wired (with the rest of Condé Nast) was still mistaking tracking protection for ad blocking (and hitting readers with the same lame interruptive shakedown popover I wrote about over a year ago)— I copied and pasted this section of the Daily Tab into Medium and expanded it into a piece titled How To Plug the Publishing Revenue Drain. I also wanted to get it up in advance of the Gillmor Gang webcast/podcast I’d be on that afternoon.

The (not so great) state of UK print advertising in 4 charts (Lucinda Southern @Lucy28Southern in DigiDay) Here they are:

uknewspaperevenue

Publishers can reverse that. Here’s how:

  1. Follow their customers’ lead. That means they should—
  2. Fire adtech (tracking-based advertising), which is full of fraud and malware, clogs data pipes, spies on people (which will soon be illegal in the EU thanks to the GDPR), and carries enormous operational and cognitive overhead for everybody. This will—
  3. Save journalism from drowning in a sea of content. (The problem with content is that it’s not editorial. It’s eyeball bait.) To do this publishers should—
  4. Agree to readers’ terms and conditions. These will live at Customer Commons (much as individuals’ copyright terms live at Creative Commons) and can be expressed in one line of code in the reader’s browser. The first and simplest term is called #NoStalking and says “just give me ads not based on tracking me.” These ads—simple brand ads—are far more valuable, and brand-supporting, than anything adtech has ever done, or ever can do. They also sponsor the publisher, which adtech also can’t do, because its actual business is chasing eyeballs. With #NoStalking, publishers will—
  5. Get cleaner, better and more supportive sponsorship from advertisers than they ever got from adtech. Agreeing not to stalk readers will also pave a way off the cattle ranches of Facebook and Google while also getting out of adtech’s bubble before it bursts. It will also respect The Castle Doctrine—for everybody involved, including readers, publishers, advertisers and intermediaries.

Bonus link: After Peak Marketing. And everything by Bob Hoffman (@adcontrarian), Don Marti (@dmarti), Augustine Fou, aka Ad Fraud Researcher (@acfou), WhiteOps (@WhiteOps), Dave Carroll (@profcarroll) and @MikkoKotila.

#Advertising vs. #Adtech

As Apple and Google take aim at ads, publishers tremble (Lucia Moses @lmoses in DigiDay)

De-blurring Lines Between ‘Ad Tech’ and Advertising (Daniel Meehan @MeehanDaniel in Martech Series). I’m kindly sourced: “…Doc Searls dug into what on earth brands are doing — and have been doing for years. He’s just as confused by this shift of advertisers effectively offloading their jobs to algorithms. Searls also calls for an end to ad tech, in favor of a return to “traditional” advertising approaches. The state of ad tech’s been killing media, too. And he wants to save it before we venture too far.”

Also by Daniel, this time in Martech TodayStop Calling ‘Ad Tech’ Advertising. Bonus link: Separating Advertising’s Wheat and Chaff.

Not listening to either Daniel or me:

#Random

Saturn is amazing. (Time)

Introducing FilterBubbler: A WebExtension built using React/Redux. Based on this idea by @dmarti. (Ean Schuessler in Mozilla Hacks) “The idea was to turn the tables on the kinds of sophisticated analysis that advertisers do with the everyday browsing activities we take for granted.”

 

 

away2remember2manytabsFor today’s entries, I’m noting which linked pieces require you to turn off tracking protection, meaning tracking is required by those publishers. I’m also annotating entries with hashtags and organizing sections into bulleted lists.


#AdBlocking and #Advertising

#Apple

#Photography

#Other

fireadtech

Brands are bailing from adtech, and news about it is coming fast and hard.

The New York Times said AT&T and Johnson & Johnson were pulling their ads from YouTube, concerned that “Google is not doing enough to prevent brands from appearing next to offensive material, like hate speech.” Business Insider said “more than 250” advertisers were bailing as well. Both reports came on the heels of one Guardian story that said Audi, HSBC, Lloyds, McDonald’s, L’Oréal, Sainsbury’s, Argos, the BBC and Sky were doing the same in the UK. Another Guardian story that said O2, Royal Mail and Vodaphone were joining the boycott as well. Wired and AdAge have weighed in too.

Agencies placing those ads on YouTube were shocked, shocked! that ads for these fine brands were showing up next to “extremist material,” and therefore sponsoring it. They blame Google, and so does most of the press coverage as well.

And Google admits guilt. Business Insider:

Google’s executives were summoned to appear in front of the UK government last week after ads for taxpayer-funded services were found next to extremist videos, following an investigation by The Times newspaper. Google must return later this week with a timetable for the work it is doing to prevent the issue from occurring again.

On Monday, at a breakfast briefing with journalists before he took to the stage at Advertising Week Europe — Brittin said the annual ad industry event gave Google a “good opportunity to say first and foremost, sorry, this should not happen, and we need to do better.”

Brittin added: “There are brands who have reached out to us and are talking to our teams about whether they are affected or concerned by this. I have spoken personally to a number of advertisers over the last few days as well. Those that I have spoken to, by the way, we have been talking about a handful of impressions and pennies not pounds of spend — that’s in the case of the ones I’ve spoken to at least. However small or big the issue, it’s an important issue that we address.”

Google also isn’t alone at this. They’re just the biggest player in an icky business. That business is adtech: tracking-based advertising.

Let’s be clear about all the differences between adtech and real advertising. It’s adtech that spies on people and violates their privacy. It’s adtech that’s full of fraud and a vector for malware. It’s adtech that incentivizes publications to prioritize “content generation” over journalism. It’s adtech that gives fake news a business model, because fake news is easier to produce than the real kind, and adtech will pay anybody a bounty for hauling in eyeballs.

Real advertising doesn’t do any of those things, because it’s not personal. It is aimed at populations selected by the media they choose to watch, listen to or read. To reach those people with real ads, you buy space or time on those media. You sponsor those media because those media also have brand value.

With real advertising, you have brands supporting brands.

Brands can’t sponsor media through adtech because adtech isn’t built for that. On the contrary, adtech is built to undermine the brand value of all the media it uses, because it cares about eyeballs more than media.

Adtech is magic in this literal sense: it’s all about misdirection. You think you’re getting one thing while you’re really getting another. It’s why brands think they’re placing ads in media, while the systems they hire chase eyeballs. Since adtech systems are automated and biased toward finding the cheapest ways to hit sought-after eyeballs with ads, some ads show up on unsavory sites. And, let’s face it, even good eyeballs go to bad places.

This is why the media, the UK government, the brands, and even Google are all shocked. They all think adtech is advertising. Which makes sense: it lookslike advertising and gets called advertising. But it is profoundly different in almost every other respect. I explain those differences in Separating Advertising’s Wheat and Chaff:

…advertising today is also digital. That fact makes advertising much more data-driven, tracking-based and personal. Nearly all the buzz and science in advertising today flies around the data-driven, tracking-based stuff generally called adtech. This form of digital advertising has turned into a massive industry, driven by an assumption that the best advertising is also the most targeted, the most real-time, the most data-driven, the most personal — and that old-fashioned brand advertising is hopelessly retro.

In terms of actual value to the marketplace, however, the old-fashioned stuff is wheat and the new-fashioned stuff is chaff. In fact, the chaff was only grafted on recently.

See, adtech did not spring from the loins of Madison Avenue. Instead its direct ancestor is what’s called direct response marketing. Before that, it was called direct mail, or junk mail. In metrics, methods and manners, it is little different from its closest relative, spam.

Direct response marketing has always wanted to get personal, has always been data-driven, has never attracted the creative talent for which Madison Avenue has been rightly famous. Look up best ads of all time and you’ll find nothing but wheat. No direct response or adtech postings, mailings or ad placements on phones or websites.

Yes, brand advertising has always been data-driven too, but the data that mattered was how many people were exposed to an ad, not how many clicked on one — or whether you, personally, did anything.

And yes, a lot of brand advertising is annoying. But at least we know it pays for the TV programs we watch and the publications we read. Wheat-producing advertisers are called “sponsors” for a reason.

So how did direct response marketing get to be called advertising ? By looking the same. Online it’s hard to tell the difference between a wheat ad and a chaff one.

Remember the movie “Invasion of the Body Snatchers?” (Or the remake by the same name?) Same thing here. Madison Avenue fell asleep, direct response marketing ate its brain, and it woke up as an alien replica of itself.

This whole problem wouldn’t exist if the alien replica wasn’t chasing spied-on eyeballs, and if advertisers still sponsored desirable media the old-fashioned way.

Fixing it won’t be easy, because the alien replica has been drunk on digital for so long that very little humanity remains. This is true not just for Madison Avenue, but for both the client and the media stages of the advertising supply chain. On the client side, old-school sales & marketing VPs have been replaced by data-obsessed CMOs who would rather hire an IBM to paint a portrait of a fiction called “the chief executive customer” than actually talk to a real one. On the media side, publishers and broadcasters have long since fired their human sales people and outsourced income production to dozens of third party adtech systems.

But at least we’re seeing brands start to wake up, even if they’re still fooled by adtech’s magic tricks. And consciousness is surely happening a level or two above the CMO. Those senior executives, whose brains have not been snatched by adtech, will still recognize the obvious: that brands are best made and served by sponsoring media they know, like and trust.

After all, sponsoring trusted media is what produced brands in the first place. It’s also what still what makes brands familiar to whole populations, and what still sponsors worthy publications and the journalism they contain.

If brands still want to do “interest-based” or “interactive” advertising (adtech’s euphemisms for what it actually does) they should realize five things:

  1. Adtech sucks at branding. Hundreds of $billions have been spent on adtech so far, and not one brand known to the world has come out of it.
  2. Yes, it works, about .0x% of the time, on average. The other 99.9x% of the time it produces nothing but negative externalities, including lots of tendentious math by agencies and platforms to justify the expense.Among those externalities are subtracted value from brands themselves.
  3. Yes, direct response marketing does work, and it works best when target customers have already opted in, consciously and deliberately. (Note that there is a great deal of ambiguity about how much being a Google or Facebook member amounts to deliberate and conscious agreement to being followed and targeted, privacy controls withstanding. The choices in those controls should be much more binary and clear than they are.) So if L’Oreal wants to get a conversation going with customers of Lancôme, Giorgio Armani or The Body Shop, they should do it by those customers’ grace, not because the robots they’ve hired guess those customers might be interested, based on surveillance-gathered personal data.
  4. Adtech starts with spying on people. This isn’t the elephant in the middle of adtech’s room. It’s the volcano about to erupt from under adtech’s floor. In that volcano are pissed off people who will soon get their own ways to kill off adtech. The rumbling under the floor right now is ad blocking. The lava that will pave over adtech is full tracking protection.
  5. Adtech’s rationalizations are all around putting the “right message in front of the right people at the right time,” and aiming those messages with spyware-harvested Big Data. Both of those are direct marketing purposes, not those of brand advertising. The difference is stark, absolute, and essential for everyone to understand.
  6. The only reason publishers go along with adtech is that they don’t know any other way to make money from advertising online — and no developers have provided them one. (But that will happen soon. Trust me on this. I know things I can’t yet talk about.)
  7. What Shoshana Zuboff calls “surveillance capitalism” is going to be illegal a year from now in the EU anyway, thanks to the General Data Protection Regulation, aka GDPR. Mark your calendars: on 25 May 2018 will come an extinction event for adtech, because here are the fines the GDPR will impose for unpermitted harvesting of personal data: 1) “a fine up to 10,000,000 EUR or up to 2% of the annual worldwide turnover of the preceding financial year in case of an enterprise, whichever is greater (Article 83, Paragraph 4)”‘; and 2) “a fine up to 20,000,000 EUR or up to 4% of the annual worldwide turnover of the preceding financial year in case of an enterprise, whichever is greater (Article 83, Paragraph 5 & 6).”

Ad choices won’t do the job. That’s adtech’s way to “give you control” over “how information about your interests is used for relevant advertising.” The link into that system is this little symbol you see in the corner of many ads:

While clicking on it does provide a way for you to opt out of surveillance, you have to do it over and over again for every ad you see with the damn thing, like playing a slo-mo game of whack-a-mole, and it still relies on the adtech industry keeping cookies in your browsers.

If there is a market on the receiving end for “interest based advertising,” let’s have a standard system that puts full control in the hands of individuals, and speaks through open code and protocols to any and all publishers and broadcasters. Anything less will just be another top-down adtech industry paint-job on the same old shit.

An open question is if agencies can be programmatic online without spying on people. I think they can, if they start by admitting that spying is where the problem lies.

It should be clear that spying is why Do Not Track became a thing, and whyad blocking hockey-sticked when the adtech industry and publishers together gave the middle finger to people’s polite request not to be tracked. (Which is all Do Not Track provides.) It should also be clear that ad blocking and tracking protection are not “threats” and “costs” to publishers and agencies. They are clear and legitimate market responses by human beings to having adtech’s digital hands up their skirts.

It also won’t be easy for the big platforms to fix their adtech systems. Consider, for example, the egg that was splattered on Mark Zuckerberg’s face by Facebook’s own adtech when he posted his insistence that “99% of what people see is authentic” and “only a very small amount is fake news and hoaxes,” and fraudulent ads ran right next to his post:

zuckegg

These ads are fraudulent in at least three ways: 1) the headlines are lies; 2) espn.com is not the advertiser; 3) if you click on them, you find they’re bait for switches to something else. (One I clicked on was for a diet supplement.)

And this is no isolated case. Medium’s Ev Williams also reported the same kind of adtech-aimed fakery.

Facebook is going to have a hard time fixing this, because it is entirely in the chaff business. With Google, even though it’s hard to tell whether any given ad placed in a Google property is wheat or chaff, at least some of it really is wheat. (I would guess most search ads are, for example.) It should be just as easy for Google to disclose those ads’ nature as wheat as it is for the company to use Ad Choices to disclose adn ad’s nature as chaff. (I suggest one possible approach to this in A way to peace in the adblock war.)

But fixing the mess needs to start with advertisers. They can do it by firing adtech and its agents and going back to sponsoring reputable broadcasters and publishers. Simple as that.

adtech-content-journalism

Journalism is in a world of hurt because it has been marginalized by a new business model that requires maximizing “content” instead. That model is called adtech.

We can see adtech’s effects in The New York TimesIn New Jersey, Only a Few Media Watchdogs Are Left, by David Chen. His prime example is the Newark Star-Ledger, “which almost halved its newsroom eight years ago,” and “has mutated into a digital media company requiring most reporters to reach an ever-increasing quota of page views as part of their compensation.”

That quota is to attract adtech placements.

While adtech is called advertising and looks like advertising, it’s actually a breed of direct marketing, which is a cousin of spam and descended from what we still call junk mail.

Like junk mail, adtech is driven by data, intrusively personal, looking for success in tiny-percentage responses, and oblivious to harms it causes, which include wanton and unwelcome surveillance, annoying the shit out of people and filling the world with crap.

But adtech is far worse, because it also funds hyper-partisan news flows, including vast rivers of fake news, much of it from pop-up publishers that are as fake as the clickbait they maxiize. Without adtech, fake news would be marginalized to the digital equivalent of supermarket tabloids.

Here’s one way to tell the difference between real advertising and adtech:

  • Real advertising wants to be in a publication because it values the publication’s journalism and readership.
  • Adtech wants to push ads at readers anywhere it can find them.

Here’s one way to tell the difference between journalism and content:

  • Journalism has ethics.
  • Content has volume.

Another:

  • Journalism is supported by advertising and subscriptions.
  • Content is supported by adtech.

Companies advertising in the old publishing world were flattered to appear in publications like the Star-Ledger. They were also considered sponsors of those publications.

Companies advertising in the new publishing world are drunk on digital and want to maximize the “big data” they acquire. And there are thousands of bartenders to help with that.

As I wrote in Separating Advertising’s Wheat and Chaff, in the new publishing world “Madison Avenue fell asleep, direct response marketing ate its brain, and it woke up as an alien replica of itself.”

That’s also why, to operate in publishing’s new alien-built economy, journalists need to meet that “ever-increasing quota of page views.” Better to “generate content” than to do the best journalism we can, the proposition goes. It’s still a losing one.

See, adtech doesn’t care about journalism, because its economy incentives maximizing the sum of content in the world, so it has as many places as possible to chase followed eyeballs with ads. Case in point, from @WaltMossberg:

About a week after our launch, I was seated at a dinner next to a major advertising executive. He complimented me on our new site’s quality and on that of a predecessor site we had created and run, AllThingsD.com. I asked him if that meant he’d be placing ads on our fledgling site. He said yes, he’d do that for a little while. And then, after the cookies he placed on Recode helped him to track our desirable audience around the web, his agency would begin removing the ads and placing them on cheaper sites our readers also happened to visit. In other words, our quality journalism was, to him, nothing more than a lead generator for target-rich readers, and would ultimately benefit sites that might care less about quality.

If Recode insisted on real ads, rather than coming to depend on surveillance-based adtech, its advertisers would have valued the publication, and not just the eyeballs of its readers, wherever it could find them.

Walt concludes,

It’s no easy task to either make money online as a publisher or to advertise your product in a world where attention is so fleeting and divided. But the current system of ad-supported web content isn’t working for readers and viewers. It needs to be reset.

The ad business is too brain-snatched to do that reset alone. It needs help from readers and brave publishers willing to stop participating in the adtech game.

As I explain in How customers can debug business with one line of code (hashtag: #NoStalking), each of us can come to publishers with a simple term that says “Just show me ads not based on tracking me.” In other words, “Give us real advertising. We can live with that.”

#NoStalking is not only in the works at Customer Commons, but saying yes to it will be an ideal move by companies wishing to obey the General Data Protection Regulation (aka GDPR), which will start punishing stalking severely, starting in 2018.

While the GDPR will blow up adtech as we’ve known it, #NoStalking will save real advertising, and the best of ad-supported publishing along with it, because it will bring economic incentives back into alignment with journalism. We had that in the old ad-and-subscription supported world of offline journalism, and we can get it back in the new world of online journalism. As I explain in Why #NoStalking is a good deal for publishers,

Individuals issuing the offer get guilt-free use of the goods they come to the publisher for, and the publisher gets to stay in business — and improve that business by running advertising that is actually valued by its recipients.

So, if you want to save journalism, the best of publishing and civil discourse that depends on both, bring back real advertising and cure the cancer of adtech.

For more help with that, go back and read Don Marti’s Targeting failure: legit sites lose, intermediaries win. You might also visit the Adblock War Series at my blog.

Two bonus links:

  1. Don Marti‘s What The Verge can do to help save web advertising
  2. Ethan Zuckerman’s It’s Journalism’s Job to Save Civics.

The original version of this post was published in Medium on 23 January 2017. This is an experiment in publishing first in Medium and second here. We’ll see how it goes.

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amsterdam-streetImagine you’re on a busy city street where everybody who disagrees with you disappears.

We have that city now. It’s called media—especially the social kind.

You can see how this works on Wall Street Journal‘s Blue Feed, Red Feed page. Here’s a screen shot of the feed for “Hillary Clinton” (one among eight polarized topics):

blue-red-wsj

Both invisible to the other.

We didn’t have that in the old print and broadcast worlds, and still don’t, where they persist. (For example, on news stands, or when you hit SCAN on a car radio.)

But we have it in digital media.

Here’s another difference: a lot of the stuff that gets shared is outright fake. There’s a lot of concern about that right now:

fakenews

Why? Well, there’s a business in it. More eyeballs, more advertising, more money, for more eyeballs for more advertising. And so on.

Those ads are aimed by tracking beacons planted in your phones and browsers, feeding data about your interests, likes and dislikes to robot brains that work as hard as they can to know you and keep feeding you more stuff that stokes your prejudices. Fake or not, what you’ll see is stuff you are likely to share with others who do the same. This business that pays for this is called “adtech,” also known as “interest based” or “interactive” advertising. But those are euphemisms. Its science is all about stalking. They can plausibly deny it’s personal. But it is.

The “social” idea is “markets as conversations” (a personal nightmare for me, gotta say). The business idea is to drag as many eyeballs as possible across ads that are aimed by the same kinds of creepy systems. The latter funds the former.

Rather than unpack that, I’ll leave that up to the rest of ya’ll, with a few links:

 

I want all the help I can get unpacking this, because I’m writing about it in a longer form than I’m indulging in here. Thanks.

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Nearly all the ads I see on Facebook are fake news items like these two, next to Mark Zuckerberg’s latest post, which is, ironically, about fake news:

screen-shot-2016-11-12-at-7-57-34-pmBesides being false and misleading clickbait, these ads are not from espn.com. They’re from http://espn.com-magazines.online. They are also bait for a topic switch, since they’re actually about a diet supplement I won’t flatter by naming. So they’re two kinds of fraud at once: outright lies from a forged source.

It can’t be that hard for Facebook not to run this kind of obviously dishonest and misleading advertising, especially since this story itself is old news. (See here.) Why hasn’t it been stopped?

I’m guessing the answer is a technical one: that Facebook’s advertising system is too easy a hack for dishonest advertisers to resist, and too hard to change.

Either that, or the money they make from ad fraud more than offsets the cost of egg on their CEO’s face.

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Ingeyes Google Has Quietly Dropped Ban on Personally Identifiable Web Tracking, @JuliaAngwin and @ProPublica unpack what the subhead says well already: “Google is the latest tech company to drop the longstanding wall between anonymous online ad tracking and user’s names.”

So here’s a message from humanity to Google and all the other spy organizations in the surveillance economy: Tracking is no less an invasion of privacy in apps and browsers than it is in homes, cars, purses, pants and wallets.

That’s because our apps and browsers, like the devices on which we use them, are personal and private. Simple as that. (HT to @Apple for digging that fact.)

To help the online advertising business understand what ought to be obvious (but isn’t yet), let’s clear up some misconceptions:

  1. Tracking people without their clear and conscious permission is wrong. (Meaning The Castle Doctrine should apply online no less than it does in the physical world.)
  2. Assuming that using a browser or an app constitutes some kind of “deal” to allow tracking is wrong. (Meaning implied consent is not the real thing. See The Tradeoff Fallacy: How Marketers Are Misrepresenting American Consumers and Opening Them Up to Exploitation, by Joseph Turow, Ph.D. and the Annenberg School for Communication at the University of Pennsylvania.)
  3. Claiming that advertising funds the “free” Internet is wrong. (The Net has been free for the duration. Had it been left up to the billing companies of the world, we never would have had it, and they never would have made their $trillions on it. More at New Clues.)

What’s right is civilization, which relies on manners. Advertisers, their agencies and publishers haven’t learned manners yet.

But they will.

At the very least, regulations will force companies harvesting personal data to obey those they harvest it from, with fines for not obeying. Toward that end, Europe’s General Data Protection Regulation already has compliance offices at large corporations shaking in their boots, for good reason: “a fine up to 20,000,000 EUR, or in the case of an undertaking, up to 4% of the total worldwide annual turnover of the preceding financial year, whichever is higher (Article 83, Paragraph 5 & 6).” Those come into force in 2018. Stay tuned.

Companies harvesting personal data also shouldn’t be surprised to find themselves re-classified as fiduciaries, no less responsible than accountants, brokers and doctors for confidentiality on behalf of the people they collect data from. (Thank you, professors Balkin and Zittrain, for that legal and rhetorical hack. Brilliant, and well done. Or begun.)

The only way to fully fix publishing, advertising and surveillance-corrupted business in general is to equip individuals with terms they can assert in dealing with others online — and to do it at scale. Meaning we need terms that work the same way across all the companies we deal with. That’s why Customer Commons and Kantara are working on exactly those terms. For starters. And these will be our terms — not separate and different ones that live at each company we deal with. Those aren’t working now, and never will work, because they can’t. And they can’t because when you have to deal with as many different terms as there are parties supplying them, the problem becomes unmanageable, and you get screwed. That’s why —

There’s a new sheriff on the Net, and it’s the individual. Who isn’t a “user,” by the way. Or a “consumer.” With new terms of our own, we’re the first party. The companies we deal with are second parties. Meaning that they are the users, and the consumers, of our legal “content.” And they’ll like it too, because we actually want to do good business with good companies, and are glad to make deals that work for both parties. Those include expressions of true loyalty, rather than the coerced kind we get from every “loyalty” card we carry in our purses and wallets.

When we are the first parties, we also get scale. Imagine changing your terms, your contact info, or your last name, for every company you deal with — and doing that in one move. That can only happen when you are the first party.

So here’s a call to action.

If you want to help blow up the surveillance economy by helping develop much better ways for demand and supply to deal with each other, show up next week at the Computer History Museum for VRM Day and the Internet Identity Workshop, where there are plenty of people already on the case.

Then follow the work that comes out of both — as if your life depends on it. Because it does.

And so does the economy that will grow atop true privacy online and the freedoms it supports. Both are a helluva lot more leveraged than the ill-gotten data gains harvested by the Lumascape doing unwelcome surveillance.

Bonus links:

  1. All the great research Julia Angwin & Pro Publica have been doing on a problem that data harvesting companies have been causing and can’t fix alone, even with government help. That’s why we’re doing the work I just described.
  2. What Facebook Knows About You Can Matter Offline, an OnPoint podcast featuring Julia, Cathy O’Neill and Ashkan Soltani.
  3. Everything by Shoshana Zuboff. From her home page: “’I’ve dedicated this part of my life to understanding and conceptualizing the transition to an information civilization. Will we be the masters of information, or will we be its slaves? There’s a lot of work to be done, if we are to build bridges to the kind of future that we can call “home.” My new book on this subject, Master or Slave? The Fight for the Soul of Our Information Civilization, will be published by Public Affairs in the U.S. and Eichborn in Germany in 2017.” Can’t wait.
  4. Don Marti’s good thinking and work with Aloodo and other fine hacks.

coins

Here’s the handy thing about cash: it gives customers scale. It does that by working the same way for everybody, everywhere it’s accepted. Cash has also been doing that for thousands of years. But we almost never talk about our “experience” with cash, because we don’t need to.

Marketers, however, love to talk about “the customer experience.” Search for customer+experience and you’ll get 35+ million results, nearly all pointing to stuff written by marketers and their suppliers. Even the Wikipedia entry for customer experience reads like an ad for a commercial “CX” supplier. That’s why a big warning box at the top of the article says it has “multiple issues” (four, to be exact), the oldest of which has persisted, uncorrected, since 2012. Try to read this, if you can:

In commerce, customer experience (CX) is the product of an interaction between an organization and a customer over the duration of their relationship.[1] This interaction includes a customer’s attraction, awareness, discovery, cultivation, advocacy and purchase and use of a service.[2][not in citation given] It is measured[by whom?] by the individual’s experience during all points of contact against the individual’s expectations. Gartner asserts the importance of managing the customer’s experience.[3]

Customer experience implies customer involvement at different levels – such as rational, emotional, sensorial, physical, and spiritual.[4][need quotation to verify] Customers respond diversely to direct and indirect contact with a company.[5] Direct contact usually occurs when the purchase or use is initiated by the customer. Indirect contact often involves advertising, news reports, unplanned encounters with sales representatives, word-of-mouth recommendations or criticisms.[6]

Customer experience can be defined[by whom?] as the internal and personal responses of the customers that might be line[clarification needed] with the company either directly or indirectly. Creating direct relationships in the place where customers buy, use and receive services by a business intended for customers such as instore or face to face contact with the customer which could be seen through interacting with the customer through the retail staff.[7][clarification needed] We then have indirect relationships which can take the form of unexpected interactions through a company’s product representative, certain services or brands and positive recommendations – or it could even take the form of “criticism, advertising, news, reports” [7] and many more along that line.[7]

Wholly shit. Do you—or anybody—have any idea what the fuck they’re talking about? Did you even try to read more than a few words of it?

Why would an industry big enough to put 35 million documents on the Web not have one comprehensible document in the only place where it would make full sense?

Here’s why: the industry is talking to itself. It’s one big all-BS echo chamber.

But let’s dig into it a bit, because (bear with me) we actually can fix this thing.

Basically, we have two problems with CX: complexity and perspective.

First, complexity.

Company promotions tend to be complex, because they’re gimmicks. Meaning they are a come-on to customers and not a persistent and predictable part of doing business.

Because promotional gimmicks are temporary and provisional, they also tend to have a bunch of moving parts. Even coupons, the simplest of promotional gimmicks, require that the company mint its own currency, for conditional uses, for limited periods of time, with restrictions on eligibility and lots of other forms of cognitive and operational overhead for everybody: the company, the customer, and whatever other partners that might be involved.

Here’s a good example.

This morning I got a promotional email from T-Mobile with a promo that looked interesting to me: an hour of free Wi-Fi from GoGo In-Flight, the next time I get on a plane. When I went to T-Mobile link for the promo, I found these instructions:

Before you board

  • Have a valid E911 address on file and a T-Mobile phone number.
  • To get your hour of FREE Wi-Fi and unlimited texting, make one Wi-Fi call before you board.
  • If you don’t have Wi-Fi calling, you can still get FREE Wi-Fi for one hour and use iMessage, Google Hangouts, WhatsApp, and Viber all flight long.”

Each of those bullet points contained deal-killing conditions:

  • I don’t know if I have a “valid E911 address.” In fact, I didn’t know what one was until I looked it up in Wikipedia, 30 seconds ago.
  • I think I know what they mean by a “Wi-Fi call,” but my experience of that (or what I think it is) with T-Mobile is with making normal calls on my T-Mobile phone over Wi-Fi where there is no T-Mobile cellular coverage. Would I have to look for a place at an airport where there’s no cell coverage but there is Wi-Fi? Am I making a Wi-Fi call when my phone says “T-Mobile Wi-Fi,” but I’m also getting a signal reading on my phone? I don’t know, and I don’t want to take the time to find out.
  • I have no interest in getting a free hour of Wi-Fi that limits me to four services I don’t use.

So I went on Twitter, tweeted what I hoped would be some good feedback to @T-Mobile and @GoGo. Here’s that tweet, with responses from both companies:

dsearls-tmobile-gogo-thread

Before we go forward with the lessons from this example, I want to make clear that I do appreciate what *NikosP, *RudyG and ^Joe are trying to do here. I am also clear that there are buildings full of other good people, all doing “social CRM,” or whatever its called this week, to care about customers and give them the best possible experience.

The problem for me, as a customer, is that getting this free hour of Wi-Fi on a plane isn’t worth the trouble. The problem for T-Mobile and GoGo In-Flight is that it’s probably not worth the trouble for them either.

Many years ago the great Jamie Zawinski uttered the best (and perhaps only worthy) critique, ever, of Linux. He said, “Linux is only free if your time has no value.” You can swap any promotion you like for “Linux” in that sentence. For example, “An hour of Wi-Fi on a GoGo equipped plane is only free if your time has no value.”

As Don Marti often puts it, customers are much better at applied behavioral economics than any of the companies trying to make customers fall for promotional come-ons.

So I’m wearing my applied behavioral economist hat when I decide that my time is worth more to me than whatever sum of it I might spend getting one hour of free wi-fi on a plane some day, even with all the help being tweeted to me.

I am also noticing that my time would be spent on this thing, and not invested. Worse, it would all be gone in one hour. Worse than that, it would be gone on a plane, where the working conditions are not ideal.

I have no idea how much time and money T-Mobile and GoGo In-Flight are spending on this promo, but I wouldn’t be surprised if the internal and external costs of it turn out to be far higher than whatever they would get out of investing the same amount of money and effort on simply making their services better.

So that’s complexity. Now lets look at perspective.

All of the CX perspective—100% of it—is anchored on the corporate side. Not the customer side. Worse, in every CX case the perspective is of one company, or a small collection of companies (e.g. T-Mobile and GoGo Inflight, or both plus the four other companies in the third of the first set of bullet points above).

See, each company is doing its own kind of CX to “deliver” an “experience” that is exclusive to them. In fact, that’s one way they compete. With this promo, T-Mobile is trying to do something Verizon, AT&T and Sprint aren’t doing.

The problem with this perspective is that it makes the customer’s experience different for every company she deals with. Worse, she has to spend non-recoverable time and effort trying to figure out what’s going on with each of the different companies imposing cognitive burdens along with promotional bargains. As the promos add up, the diminished returns are compounded, and the bargains add up to far less than $0.

If we take away the complexity, and take the customer’s perspective, you see  only two ways a company can “deliver” the best possible “experience” to customers:

  1. By making it as simple as possible to deal with the company; and
  2. By offering better products and services than competitors. That’s it.

For example, my wife and I have T-Mobile phones because we travel a lot outside the U.S. T-Mobile, alone among U.S. mobile phone carriers, provides free data and texting in something like 200 other countries, plus just 20¢/minute for phone calls. We also like not worrying about data usage, because T-Mobile has relatively high data allowances for that. So we don’t worry about going over. To obtain those simple graces, we put up with T-Mobile’s inferior coverage outside metro areas in the U.S. (though, to its credit, is catching up fast).

Our 19-year-old son, on the other hand, doesn’t travel much outside the country, so his phone is on Ting, which has outstanding customer service and the simplest possible usage pricing, with no promotional gimmicks. So both company and customer have low cognitive and cost overhead to deal with.

Which gets me back to cash.

Cash comes from the customer’s perspective. She can use the same cash with every company she deals with. She isn’t busy thinking, “Gee, I need to use Walmart’s money at Walmart and Burger King’s money at Burger King.” The cash in her purse gives her scale across every company that accepts it. Cash also gives her the same leverage across all her credit cards and other instruments of intermediation. It’s a great CX model.

So, is there hope we can wind down the BS in CX, and bring something with cash-like scale into the portfolio of tools customers have for dealing with many different companies?

Yes, there is.

A number of VRM developers are now working on CX, mostly by helping companies welcome help from customers, and learning from it. There are also some CRM companies starting to look toward VRM as a way of giving customers cash-like scale across many different companies as well. (The jlinc protocol, for example, has a lot of promise in that direction.)

That work, and other developments like it, give me hope that “Markets are conversations” will actually mean something—in less than two decades after marketers were first inspired to talk about it.

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shackles

Who Owns the Mobile Experience? is a report by Unlockd on mobile advertising in the U.K. To clarify the way toward an answer, the report adds, “mobile operators or advertisers?”

The correct answer is neither. Nobody’s experience is “owned” by somebody else.

True, somebody else may cause a person’s experience to happen. But causing isn’t the same as owning.

We own our selves. That includes our experiences.

This is an essential distinction. For lack of it, both mobile operators and advertisers are delusional about their customers and consumers. (That’s an important distinction too. Operators have customers. Advertisers have consumers. Customers pay, consumers may or may not. That the former also qualifies as the latter does not mean the distinction should not be made. Sellers are far more accountable to customers than advertisers are to consumers.)

It’s interesting that Unlockd’s survey shows almost identically high levels of delusion by advertisers and operators…

  • 85% of advertisers and 82% of operators “think the mobile ad experience is positive for end users”
  • 3% of advertisers and 1% of operators admit “it could be negative”
  • Of the 85% of advertisers who think the experience is positive, 50% “believe it’s because products advertised are relevant to the end user”
  • “the reasons for this opinion is driven from the belief that users are served detail around products that are relevant to them.”

… while:

  • 47% of consumers think “the mobile phone ad experience (for them) is positive”
  • 39% of consumers “think ads are irrelevant
  • 36% blame “poor or irritating format”
  • 40% “believe the volume of ads served to them are a main reason for the negative experience”

It’s amazing but not surprising to me that mobile operators apparently consider their business to be advertising more than connectivity. This mindset is also betrayed by AT&T charging a premium for privacy and Comcast wanting to do the same. (Advertising today, especially online, does not come with privacy. Quite the opposite, in fact. A great deal of it is based on tracking people. Shoshana Zuboff calls this surveillance capitalism.)

Years ago, when I consulted BT, JP Rangaswami (@jobsworth), then BT’s Chief Scientist, told me phone companies’ core competency was billing, not communications. Since those operators clearly wish to be in the “content” business now, and to make money the same way print and broadcast did for more than a century, it makes sense that they imagine themselves now to be one-way conduits for ad-fortified content, and not just a way people and things (including the ones called products and companies) can connect to each other.

The FCC and other regulators need to bear this in mind as they look at what operators are doing to the Internet. I mean, it’s good and necessary for regulators to care about neutrality and privacy of Internet services, but a category error is being made if regulators fail to recognize that the operators want to be “content distributors” on the models of commercial broadcasting (funded by advertising) and the post office (funded by junk mail, which is the legacy model of today’s personalized direct response advertising  online).

I also have to question how consumers were asked by this survey about their mobile ad experiences. Let me see a show of hands: how many here consider their mobile phone ad experience “positive?” Keep your hands down if you are associated in any way with advertising, phone companies or publishing. When I ask this question, or one like it (e.g. “Who here wants to see ads on their phone?”) in talks I give, the number of raised hands is usually zero. If it’s not, the few parties with raised hands offer qualified responses, such as, “I’d like to see coupons when I’m in a store using a shopping app.”

Another delusion of advertisers and operators is that all ads should be relevant. They don’t need to be. In fact, the most valuable ads are not targeted personally, but across populations, so large populations can become familiar with advertised products and services.

It’s a simple fact that branding wouldn’t exist without massive quantities of ads being shown to people for whom the ads are irrelevant. Few of us would know the brands of Procter & Gamble, Unilever, L’Oreal, Coca-Cola, Nestlé, General Motors, Volkswagen, Mars or McDonald’s (the current top ten brand advertisers worldwide) if not for the massive amounts of money those companies spend advertising to people who will never buy their products but will damn sure known those products’ names. (Don Marti explains this well.)

A hard fact that the advertising industry needs to face is that there is very little appetite for ads on the receiving end. People put up with it on TV and radio, and in print, but for the most part they don’t like it. (The notable exceptions are print ads in fashion magazines and other high-quality publications. And classifieds.)

Appetites for ads, and all forms of content, should be consumers’ own. This means consumers need to be able to specify the kind of advertising they’re looking for, if any.

Even then, the far more valuable signal coming from consumers is (or will be) an actual desire for certain products and services. In marketing lingo, these signals are qualified leads. In VRM lingo, these signals  are intentcasts. With intentcasting, the customers do the advertising, and are in full control of the process. And they are no longer mere consumers (which Jerry Michalski calls “gullets with wallets and eyeballs”).

It helps that there are dozens of companies in this business already.

So it would be far more leveraged for operators to work with those companies than with advertising systems so disconnected from reality that they’ve caused hundreds of millions of people to block ads on their mobile devices — and are in such deep denial of the market’s clear messages that they deny the legitimacy of a clear personal choice, misdirecting attention toward the makers of ad blocking tools, and away from what’s actually happening: people asserting power over their own lives and private spaces (e.g. their browsers) online.

If companies actually believe in free markets, they need to believe in free customers. Those are people who, at the very least, are in charge of their own experiences in the networked world.

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