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highmountainI’ve long thought that the most consequential thing I’ve ever done was write a newspaper editorial that helped stop development atop the highest wooded hilltop overlooking the New York metro. The hill is called High Mountain, and it is now home to the High Mountain Park Preserve in Wayne, New Jersey. That’s it above, highlighted by a rectangle on a shot I took from a passenger plane on approach to LaGuardia in 2008.

The year was 1970, and I was a 23-year-old reporter for a suburban daily called Wayne Today (which may still exist). One day, while at the police station picking up copies of the previous day’s reports, I found a detailed plan to develop the top of High Mountain, and decided to pay the place a visit. So I took a fun hike through thick woods and a din of screaming cicadas (Brood X, I gather—the same one that inspired Bob Dylan’s “Day of the Locust”) to a rocky clearing at the crest, and immediately decided the mountain was a much better place for a park than for the office building specified in the plan.

As it happened there was also a need for an editorial soon after that, and Jerry Fuchs, who usually wrote our editorials, wasn’t available. So I came off the bench and wrote this:

wayne-today-editorial

That was a draft proof of the piece.* I ran across it today while cleaning old papers from a file cabinet in my garage. I doubt anybody has the final printed piece, and I’m amazed that the proof exists.

I left for another paper after that, and didn’t keep up with Wayne news, beyond hearing that my editorial derailed the development plan. No doubt activists of various kinds were behind the eventual preservation of the mountain. But it’s nice to know that there is some small proof that I had something to do with that.

*Additional history: Wayne Today published in those days using old-fashioned letterpress techniques. Type was set in lead by skilled operators on Linotype machines. Each line was a “slug,” and every written piece was a pile of slugs arranged in a frame, inked with a roller and then proofed by another roller that printed on blank paper. That’s what we marked up (as you see above) for the Linotype operators, who would create replacement slugs, give them to the page composers in layout, who could read upside down and backwards as they arranged everything in what was called a forme. The layout guys (they were all guys) then embossed each page into a damp papier-mâché sheet, which would serve as a mold for the half-cylinder of hot lead that would eventually do the printing. So the whole process went like this: reporter->Linotype operator->editor->Linotype operator->page composer->stereotype operator->printer. Ancestors of robotics eventually replaced all of it. And now in the U.S., exemplars of big-J journalism (New York Times, Washington Post) are tarred by the President as “fake news,” and millions believe it. My, how times change.

More High Mountain links:

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esb-antenae

Before we start, let me explain that ATSC 1.0 is the HDTV standard, and defines what you get from HDTV stations over the air and cable. It dates from the last millennium. Resolution currently maxes out at 1080i, which fails to take advantage even the lowest-end HDTVs sold today, which are 1080p (better than 1080i).

Your new 4K TV or computer screen has 4x the resolution and “upscales” the ATSC picture it gets over the air or from cable. But actual 4k video looks better. Sources for that include satellite TV providers (DirectTV and Dish) and streaming services (Netflix, Amazon, YouTube, etc.).

In other words, the TV broadcast industry is to 4K video what AM radio is to FM. (Or what both are to streaming.)

This is why our new FCC chairman is stepping up for broadcasters. In FCC’s Pai Proposes ATSC 3.0 Rollout, John Eggerton (@eggerton) of B&C (Broadcasting & Cable) begins,

New FCC chairman Ajit Pai signaled Thursday that he wants broadcasters to be able to start working on tomorrow’s TV today.

Pai, who has only been in the job since Jan. 20, wasted no time prioritizing that goal. He has already circulated a Notice of Proposed Rulemaking to the other commissioners that would allow TV stations to start rolling out the ATSC 3.0 advanced TV transmission standard on a voluntary basis. He hopes to issue final authorization for the new standard by the end of the year, he said in an op ed in B&C explaining the importance of the initiative.

“Next Gen TV matters because it will let broadcasters offer much better services in a variety of ways,” Pai wrote. “Picture quality will improve with 4K transmissions. Accurate sound localization and customizable sound mixes will produce an immersive audio experience. Broadcasters will be able to provide advanced emergency alerts with more information, more tailored to a viewer’s particular location. Enhanced personalization and interactivity will enable better audience measurement, which in turn will make for higher-quality advertising—ads relevant to you and that you actually might want to see. Perhaps most significantly, consumers will easily be able to watch over-the-air programming on mobile devices.”

Three questions here.

  1. Re: personalization, will broadcasters and advertisers agree to our terms rather than vice versa? Term #1: #NoStalking. So far, I doubt it. (Not that the streamers are ready either, but they’re more likely to listen.)
  2. How does this square with the Incentive Auction, which—if it succeeds—will get rid of most over the air TV?
  3. What will this do for (or against) cable, which is having a helluva time wedging too many channels into its available capacities already, and do it by compressing the crap out of everything, filling the screen with artifacts (those sections of skin or ball fields that look plaid or pixelated).

Personally, I think both over the air and cable TV are dead horses walking, and ATSC 3.0 won’t save them. We’ll still have cable, but will use it mostly to watch and interact with streams, most of which will come from producers and distributors that were Net-native in the first place.

But I could be wrong about any or all of this. Either way (or however), tell me how.

 

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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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thIn The American Dream, Quantified at Last, David Leonhardt in The New York Times makes a despairing case for a perfect Onion headline: American Dream Ends When Nation Wakes Up.

Like so much else the Times correctly tries to do, the piece issues a wake-up call. It is also typical of the Times’ tendency to look at every big social issue through the lenses of industrial age norms, giving us lots of stats and opinions from Serious Sources, and offering policy-based remedies (e.g. “help more middle- and low-income children acquire the skills that lead to good-paying jobs”).

It should help to remember that the ancestors who gave us surnames like Tanner, Smith, Farmer and Cooper didn’t have “jobs.” As a word, “jobs” acquired its current meaning after industry won the industrial revolution—and began to wane in usage after personal computing and the Internet showed up, giving us countless new ways to work on our own and with each other. You can see that in the rate at which the word “jobs” showed up in books:

jobsI’m not even sure “work” was all the Tanners and Smiths of the world did. Maybe it was what we now call “a living,” in an almost literal sense.

Whatever it was, it involved technologies: tools they shaped, and which also shaped them. (Source.) Yet for all the ways those ancestors were confined and defined by the kind of work they did, they were also very ingenious in coping with and plying those same technologies. Anyone who has spent much time on a farm, or in any kind of hardscrabble existence, knows how inventive people can be with the few means they have to operate in the world.

This is one reason why I have trouble with all the predictions of, for example, robot and AI take-overs of most or all work. For all the degrees to which humans are defined and limited by the tools that make them, humans are also highly ingenious. They find new ways to make new work for themselves and others. This is why I’d like to see more thought given to how ingenuity shows up and plays out. And not just more hand-wringing over awful futures that seem to be linear progressions out of industrial age (or dawn-of-digital age) framings and norms.

Note: the spear point above is one I found in a tilled field north of Chapel Hill, NC. It is now at the Alamance County Historical Museum.

 

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Turing wins again

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Chevrolet asks, at FindNewRoads.com.

It continues, “Choose your account and IBM Watson will analyze your latest posts to find out and give you a glimpse into your social personality.”

I chose Twitter.

After looking at my tweets, which now number 11,100, it concluded,

You are shrewd and somewhat inconsiderate.

You are solemn: you are generally serious and do not joke much. You are philosophical: you are open to and intrigued by new ideas and love to explore them. And you are authority-challenging: you prefer to challenge authority and traditional values to help bring about positive changes.

You are motivated to seek out experiences that provide a strong feeling of efficiency.

You are relatively unconcerned with both tradition and helping others. You care more about making your own path than following what others have done. And you think people can handle their own business without interference.

Then it adds,

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And goes on…

screen-shot-2016-09-14-at-7-53-38-pm

Below that is a Yes/No question. I said No. Inconsiderate of me, I guess.

Anyway, it gets a few things right, but a lot very wrong.

But hell, it’s just a machine. Good at chess and Go, but not at being human.

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applebutton1The headline above came to me this morning after reading Walt Mossberg’s latest, titled The post-Jobs Apple has soared financially, but lacks a breakthrough product.

Because the main things Apple makes are extensions of ourselves. That’s what our phones and laptops have become. They are things we almost wear, like our clothing.

Is it just coincidental that Apple Stores inhabit shopping districts also populated by upscale clothing retailers? Or that Angela Ahrendts, who runs those stores, came to the company from Burberry? Or that its Watch, sold as what the fashion business calls an accessory, clearly matters far more to the company than what we used to call “peripherals” (screens, printers, drives, etc.) and that Apple hardly seems to care at all about the latter?

And is it coincidental that Apple has lately clarified how it differs from nearly every other tech company by caring almost absolutely about personal privacy?

Apple’s Jobsian obsession with design (and, one might say, fashion), while interesting, also misdirects attention away from the company’s deeper focus on enlarging its customers’ capacities in the world.

Dig this: Apple cares so much about the bodies using its products that Tim Cook recently said this to Rick Tetzeli of FastCompany: “When you look at most of the solutions, whether it’s devices, or things coming up out of Big Pharma, first and foremost, they are done to get the reimbursement [from an insurance provider]. Not thinking about what helps the patient. So if you don’t care about reimbursement, which we have the privilege of doing, that may even make the smartphone market look small.”

With all that in mind, it’s easy to understand why Apple’s product lineup looks stale. Shirts, skirts and hats are stale too. They’ve also been around for thousands of years, and we’ll never stop wearing them.

It took me a long time to come to this realization. Here’s what I wrote in Apple Rot, a post here in January 2013, and repeated in Proof that Steve Jobs is dead, posted May 2014:

…look at what Apple’s got:

  • The iPhone 5 is a stretched iPhone 4s, which is an iPhone 4 with sprinkles. The 4 came out almost 3 years ago. No Androids are as slick as the iPhone, but dozens of them have appealing features the iPhone lacks. And they come from lots of different companies, rather than just one.

  • The only things new about the iPad are the retina screen (amazing, but no longer unique) and the Mini, which should have come out years earlier and lacks a retina screen.

  • Apple’s computer line is a study in incrementalism. There is little new to the laptops or desktops other than looks — and subtracted features. (And models, such as the 17″ Macbook Pro.) That goes for the OS as well.

  • There is nothing exciting on the horizon other than the hazy mirage of a new Apple TV. And even if that arrives, nothing says “old” more than those two letters: TV.

Since then Apple has come out with the Watch (points for originality with that one), introduced the hardly-seen (but cool-looking) Mac Pro (now also very stale), killed its Thunderbolt display, held its Time Capsule to a paltry (and damn near useless) 3Tb, done little to improve its AirPort Wi-Fi base stations — and has iterated its desktops and laptops so minimally that you can get along for years without a new one. Kinda like a good pair of jeans.

So maybe all that matters for Apple is that it accessorizes its customers better than everybody else.

You can hear a hint toward that from Tim Cook in this recent FastCompany report: “Our strategy is to help you in every part of your life that we can…whether you’re sitting in the living room, on your desktop, on your phone, or in your car.”

Here’s betting Apple’s announcement on Wednesday will be all about stuff meant to be a part of you. And not much that sounds like the rest of the personal computer business. (Which, we might remember, Steve Jobs pretty much invented.)

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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doc036cThe NYTimes says the Mandarins of language are demoting the Internet to a common noun. It is to be just “internet” from now on. Reasons:

Thomas Kent, The A.P.’s standards editor, said the change mirrored the way the word was used in dictionaries, newspapers, tech publications and everyday life.

In our view, it’s become wholly generic, like ‘electricity or the ‘telephone,’ ” he said. “It was never trademarked. It’s not based on any proper noun. The best reason for capitalizing it in the past may have been that the word was new. But at one point, I’ve heard, ‘phonograph’ was capitalized.”

But we never called electricity “the Electricity.” And “the telephone” referred to a single thing of which there billions of individual examples.

What was it about “the Internet” that made us want to capitalize it in the first place? Is usage alone reason enough to stop respecting that?

Some of my tech friends say the “Internet” we’ve had for all these years is just one prototype: the first and best-known of many other possible ones.

All due respect, but: bah.

There is only one Internet just like there is only one Universe. There are other examples of neither.

Formalizing the lower-case “internet,” for whatever reason, dismisses what’s transcendent and singular about the Internet we have: a whole that is more, and other, than a sum of parts.

I know it looks like the Net is devolving into many separate systems, isolated and silo’d to some degree. We see that with messaging, for example. Hundreds of different ones, most of them incompatible, on purpose. We have specialized mobile systems that provide variously open vs. sphinctered access (such as T-Mobile’s “binge” allowance for some content sources but not others), zero-rated not-quite-internets (such as Facebook’s Free Basics) and countries such as China, where many domains and uses are locked out.

Some questions…

Would we enjoy a common network by any name today if the Internet had been lower-case from the start?

Would makers or operators of any of the parts that comprise the Internet’s whole feel any fealty to what at least ought to be the common properties of that whole? Or would they have made sure that their parts only got along, at most, with partners’ parts? Would the first considerations by those operators not have been billing and tariffs agreed to by national regulators?

Hell, would the four of us have written The Cluetrain Manifesto? Would David Weinberger and I have written World of Ends or New Clues if the Internet had lacked upper-case qualities?

Would the world experience absent distance and cost across a The Giant Zero in its midst were it not for the Internet’s founding design, which left out billing proprietary routing on purpose?

Would we have anything resembling the Internet of today if designing and building it had been left up to phone and cable companies? Or to governments (even respecting the roles government activities did play in creating the Net we do have)?

I think the answer to all of those would be no.

In The Compuserve of Things, Phil Windley begins, “On the Net today we face a choice between freedom and captivity, independence and dependence. How we build the Internet of Things has far-reaching consequences for the humans who will use—or be used by—it. Will we push forward, connecting things using forests of silos that are reminiscent the online services of the 1980’s, or will we learn the lessons of the Internet and build a true Internet of Things?”

Would he, or anybody, ask such questions, or aspire to such purposes, were it not for the respect many of us pay to the upper-cased-ness of “the Internet?”

How does demoting Internet from proper to common noun not risk (or perhaps even assure) its continued devolution to a collection of closed and isolated parts that lack properties (e.g. openness and commonality) possessed only by the whole?

I don’t know. But I think these kinds of questions are important to ask, now that the keepers of usage standards have demoted what the Net’s creators made — and ignore why they made it.

If you care at all about this, please dig Archive.org‘s Locking the Web open: a Call for a Distributed Web, Brewster Kahle’s post by the same title, covering more ground, and the Decentralized Web Summit, taking place on June 8-9. (I’ll be there in spirit. Alas, I have other commitments on the East Coast.)

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I started calling online advertising a bubble in 2008.

I made “The Advertising Bubble” a chapter in The Intention Economy in 2012.

I’ve been unpacking what I figure ought to be obvious (but isn’t) in 52 posts and articles (so far) in the Adblock War Series. This will be the 53rd.

And it ain’t happened yet.

But, now comes this, from Kalkis Research:

kalkis-on-google

Some charts:

googlecpc

adblocking

change-in-advertising-vs-sales

costofadspace

And here is their downbeat conclusion:

We are living through the latest stages of the online advertising bubble, as available high-quality ad space is shrinking, leading to a decline ad space quality, and a decline of ad efficiency. Awareness for fraud is growing, and soon, clients will cut their online ad spending, and demand higher accountability. This will destroy the high-margin market of automated reselling worthless ad space, and will force advertisers to focus only on prime publishers, with expensive ad space.

This is a re-run of the online advertising crash of the early 2000s, when the proliferation of banners and pop- ups destroyed any value these ads had (and led people to install pop-up killers, just like with ad blockers today)…

We estimate that the online advertising market has been artificially inflated since the end of 2013, and is much more mature than its pundits are claiming. 90% of Google’s revenues come from advertising. We expect Alphabet’s share price to go down by 75%…

A larger number of companies will be impacted, as a growing number of third-party tech giants are involved in the advertising play (Oracle, Amazon, Salesforce), and we expect the whole tech sector to be hard hit by the unwinding of the bubble…

Currently, January 2018 Alphabet puts with a strike of $400 are trading at around $8, for a 20x return should our scenario materialize.

There are other signs. For example, a falling ping-pong table index:

pingpongtable

GroupM, the “world’s largest media investment group,” also just published Interaction 2016, which is also bearish on adtech:

Advertisers and the entities that place their ads have always sought relevance and engagement; the consumer has chosen to set a higher bar. Advertisers and the buyers of media have a further responsibility.

Until now, we have assumed almost all data are worth having. But however much he gathers, no advertiser commands complete, continuous data. This creates a risk that the advertiser’s left hand may not know what his right hand is doing. A customer who has already made a purchase may be bombarded with redundant repeat ads wherever he roams: what we might call the phenomenon of “repetitive irrelevance.” Even worse, several advertisers may be sharing the same data and using performance-oriented media, multiplying the “repetitive irrelevance.” Tracking and targeting intended to make advertising welcome makes it a nuisance. It is dysfunctional. The advertiser damages his reputation and pays to do so.

This brief analysis suggests that a partial solution to adblocking is a combination of design, technology, common sense and the ability to establish the point, across channels and vendors, at which the application of a particular data point becomes the poison of marketing rather than the antidote to ineffectiveness.

The emphasis is mine. (Hey, I know boldface tends to get read and blockquotes don’t.)

There are other signs. Last May Business Insider said The ad tech sector looks an awful lot like a bubble that just popped. In June, The Wall Street Journal said adtech investment dollars are running dry. “These companies are struggling to even get meetings,” they said. In December Ad Exchanger called 2015 a “reality check” year for adtech.

Clearly the end isn’t near for Facebook or Google. Tony Haile, founding CEO of Chartbeat — and to me the reigning king of adtech moneyball — compares Facebook to the Sun, and everybody else to planets and other debris orbiting around it. One pull-quote: “It is Facebook that curates and distributes. It owns the relationship with the user, and decides what content the user sees and how many see it.” Meanwhile Google, which places a huge percentage of online ads (for itself and countless others), is said by Digiday to be exploring an “acceptable ads” policy obviously modeled on the one launched by Adblock Plus. And while ad fraud has been bad, AdAge reports that it’s down, dramatically: “analytics firm Integral Ad Science found a 20.9% decrease in both overall and programmatic ad fraud last quarter compared to the fourth quarter of 2015.”

Still, I’ve been told by one (big) adtech exec that his business is “a walking zombie” and that he’s looking toward “the next paradigm.” One of the biggest online advertisers told me late last year that they yanked $100 million/year out of adtech and put it into traditional advertising for one simple reason: “It didn’t work.” I have a sense that they are not alone.

Got any more examples? I want us to get as clear a picture as we can of the adtech edifice as it starts crumbling to the ground. Or not. Yet.

(Later…) Okay we have some:

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