Category: publishing

VRM Day: Starting Phase Two

VRM Day is today, 24 October, at the Computer History Museum. IIW follows, over the next three days at the same place. (The original version of this post was October 17.)

We’ve been doing VRM Days since (let’s see…) this one in 2013, and VRM events since this one in 2007. Coming on our tenth anniversary, this is our last in Phase One.

sisyphusTheRolling snowball difference between Phase One and Phase Two is that between rocks and snowballs. In Phase One we played Sisyphus, pushing a rock uphill. In Phase Two we roll snowballs downhill.

Phase One was about getting us to the point where VRM was accepted by many as a thing bound to happen. This has taken ten years, but we are there.

Phase Two is about making it happen, by betting our energies on ideas and work that starts rolling downhill and gaining size and momentum.

Some of that work is already rolling. Some is poised to start. Both kinds will be on the table at VRM Day. Here are ones currently on the agenda:

  • VRM + CRM via JLINC. See At last: a protocol to link VRM and CRM. , and The new frontier for CRM is CDL: customer driven leads. This is a one form of intentcasting that should be enormously appealing to CRM companies and their B2B corporate customers. Speaking of which, we also have—
  • Big companies welcoming VRM.  Leading this is Fing, a French think tank that brings together many of the country’s largest companies, both to welcome VRM and to research (e.g. through Mesinfos) how the future might play out. Sarah Medjek of Fing will present that work, and lead discussion of where it will head next. We will also get a chance to participate in that research by providing her with our own use cases for VRM. (We’ll take out a few minutes to each fill out an online form.)
  • Terms individuals assert in dealings with companies. These are required for countless purposes. Mary Hodder will lead discussion of terms currently being developed at Customer Commons and the CISWG / Kantara User Submitted Terms working group (Consent and Information Sharing Working Group). Among other things, this leads to—
  • 2016_04_25_vrmday_000-1Next steps in tracking protection and ad blocking. At the last VRM Day and IIW, we discussed CHEDDAR on the server side and #NoStalking on the individual’s side. There are now huge opportunities with both, especially if we can normalize #NoStalking terms for all tracking protection and ad blocking tools.  To prep for this, see  Why #NoStalking is a good deal for publishers, where you’ll find the image on the right, copied from the whiteboard on VRM Day.
  • Blockchain, Identity and VRM. Read what Phil Windley has been writing lately distributed ledgers (e.g. blockchain) and what they bring to the identity discussions that have been happening for 22 IIWs, so far. There are many relevancies to VRM.
  • Personal data. This was the main topic at two recent big events in Europe: MyData2016 in Helsinki and PIE (peronal information economy) 2016 in London.  The long-standing anchor for discussions and work on the topic at VRM Day and IIW is PDEC (Personal Data Ecosystem Consortium). Dean Landsman of PDEC will keep that conversational ball rolling. Adrian Gropper will also brief us on recent developments around personal health data as well.
  • Hacks on the financial system. Kevin Cox can’t make it, but wants me to share what he would have presented. Three links: 1) a one minute video that shows why the financial system is so expensive, 2) part of a blog post respecting his local Water Authority and newly elected government., and 3) an explanation of the idea of how we can build low-cost systems of interacting agents. He adds, “Note the progression from location, to address, to identity, to money, to housing.  They are all ‘the same’.” We will also look at how small business and individuals have more in common than either do with big business. With a hint toward that, see what Xero (the very hot small business accounting software company) says here.
  • What ProjectVRM becomes. We’ve been a Berkman-Klein Center project from the start. We’ve already spun off Customer Commons. Inevitably, ProjectVRM will itself be spun off, or evolve in some TBD way. We need to co-think and co-plan how that will go. It will certainly live on in the DNA of VRM and VRooMy work of many kinds. How and where it lives on organizationally is an open question we’ll need to answer.

Here is a straw man context for all of those and more.

  • Top Level: Tools for people. These are ones which, in legal terms, give individuals power as first parties. In mathematical terms, they make us independent variables, rather than dependent ones. Our focus from the start has been independence and engagement.
    • VRM in the literal sense: whatever engages companies’ CRM or equivalent systems.
    • Intentcasting.
    • PIMS—Personal Information Management Systems. Goes by many names: personal clouds, personal data stores, life management platforms and so on. Ctrl-Shift has done a good job of branding PIMS, however. We should all just go with that.
    • Privacy tools. Such as those provided by tracking protection (and tracking-protective ad blocking).
    • Legal tools. Such as the terms Customer Commons and the CISWG are working on.
    • UI elements. Such as the r-button.
    • Transaction & payment systems. Such as EmanciPay.

Those overlap to some degree. For example, a PIMS app and data store can do all that stuff. But we do need to pull the concerns and categories apart as much as we can, just so we can talk about them.

Kaliya will facilitate VRM Day. She and I are still working on the agenda. Let us know what you’d like to add to the list above, and we’ll do what we can. (At IIW, you’ll do it, because it’s an unconference. That’s where all the topics are provided by participants.)

Again, register here. And see you there.

 

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Humanizing the Great Ad Machine

This is a comment I couldn’t publish under this post before my laptop died. (Fortunately I sent it to my wife first, so I’m posting it here, from her machine.)

OMMA’s theme is “Humanizing the Great Ad Machine”  Good one. Unfortunately, the agenda and speaker list suggest that industry players are the only ones in a position to do that. They aren’t..

The human targets of the Great Ad Machine are actually taking the lead—by breaking it.

Starting with ad blocking and tracking protection.

I see no evidence of respect for that fact, however, in the posts and tweets (at #MPOMMA) coming out of the conference so far. Maybe we can change that.

Let’s start by answering the question raised by the headline in Ad Blocking and DVRs: How Similar? I can speak as an operator of both technologies, and as a veteran marketer as well. So look at the rest of this post as the speech I’d give if I was there at OMMA…

Ad blocking and DVRs have four main things in common.

1) They are instruments of personal independence;

2) They answer demand for avoiding advertising. That demand exists because most advertising wastes time and space in people’s lives, and people value those two things more than whatever good advertising does for the “content” economy;

3) Advertising agents fail to grok this message; which is why—

4) Advertising agents and the “interactive” ad industry cry foul and blame the messengers (including the makers of ad blockers and other forms of tracking protection), rather than listening to, or respecting, what the market tells them, loudly and clearly.

Wash, rinse and repeat.

The first wash was VCRs. Those got rinsed out by digital TV. The second wash was DVRs. Those are being rinsed out right now by the Internet. The third wash is ad blocking.

The next rinse will happen after ad blocking succeeds as chemo for the cancer of ads that millions on the receiving end don’t want.

The next wash will be companies spending their marketing money on listening for better signals of demand from the marketplace, and better ways of servicing existing customers after the sale.

This can easily happen because damn near everybody is on the Net now, or headed there. Not trapped on TV or any other closed, one-way, top-down, industry-controlled distribution system.

On the Net, everybody has a platform of their own. There is no limit to what can be built on that platform, including much better instruments for expressing demand, and much better control over private personal spaces and the ways personal data are used by others. Ad blocking is just the first step in that direction.

The adtech industry (including dependent publishers) can come up with all the “solutions” they want to the ad blocking “problem.” All will fail, because ad blocking is actually a solution the market—hundreds of millions of real human beings—demands. Every one of adtech’s “solutions” is a losing game of whack-a-mole where the ones with hammers bang their own heads.

For help looking past that game, consider these:

1) The Interent as we know it is 21 years old. Commercial activity on it has only been possible since April 30, 1995. The history of marketing on the Net since then has been a series of formative moments and provisional systems, not a permanent state. In other words, marketing on the Net isn’t turtles all the way down, it’s scaffolding. Facebook, Google and the rest of the online advertising world exist by the grace of provisional models that have been working for only a few years, and can easily collapse if something better comes along. Which it will. Inevitably. Because…

2) When customers can signal demand better than adtech can manipulate it or guess at it, adtech will collapse like a bad soufflé.

3) Plain old brand advertising, which has always been aimed at populations rather than people, isn’t based on surveillance, and has great brand-building value, will carry on, free of adtech, doing what only it can do. (See the Ad Contrarian for more on that.)

In the long run (which may be short) winners will be customers and the companies that serve them  respectfully. Not more clueless and manipulative surveillance-based marketing schemes.

Winning companies will respect customers’ independence and intentions. Among those intentions will be terms that specify what can be done with shared personal data. Those terms will be supplied primarily by customers, and companies will agree to those terms because they will be friendly, work well for both sides, and easily automated.

Having standard ways for signaling demand and controlling use of personal data will give customers the same kind of scale companies have always had across many customers. On the Net, scale can work in both directions.

Companies that continue to rationalize spying on and abusing people, at high costs to everybody other than those still making hay while the sun shines, will lose. The hay-makers will also lose as soon as the light of personal tolerance for abuse goes out, which will come when ad blocking and tracking protection together approach ubiquity.

But the hay-makers can still win if they start listening to high-value signals coming from customers. It won’t be hard, and it will pay off.

The market is people, folks. Everybody with a computer or a smart mobile device is on the Net now. They are no longer captive “consumers” at the far ends of one-way plumbing systems for “content.” The Net was designed in the first place for everybody, not just for marketers who build scaffolding atop customer dislike and mistake it for solid ground.

It should also help to remember that the only business calling companies “advertisers” is advertising. No company looks in the mirror and sees an advertiser there. That’s because no company goes into business just so they can advertise. They see a car maker, a shoe store, a bank, a brewer, or a grocer. Advertising is just overhead for them. I learned this lesson the hard way as a partner for 20 years in a very successful ad agency. Even if our clients loved us, they could cut their ad budget to nothing in an instant, or on a whim.

There’s a new world of marketing waiting to happen out there in the wide-open customer-driven marketplace. But it won’t grow out of today’s Great Ad Machine. It’ll grow out of new tech built on the customers’ side, with ad blocking and tracking protection as the first examples. Maybe some of that tech is visible at OMMA. Or at least maybe there’s an open door to it. If either is there, let’s see it. Hashtag: #VRM. (For more on that, see https://en.wikipedia.org/wiki/Vendor_relationship_management.)

If not, you can still find developers here .

A reading list for online publishers

I’ll be talking to a pile of publishers today at a Meet the Blockers thing hosted by DCN in New York. Here are a few of the many links I’ve accumulated as a background for the conversation I hope ensues. (These are in addition to my own Adblock War Series, now 53 posts long.)

I’ll report more on my exact advice later.

 

Why #NoStalking is a good deal for publishers

"Just give me ads not based on tracking me.."

That line, scribbled on a whiteboard at VRM Day recently at the Computer History Museum, expresses the unspoken social contract we’ve always had with ad-supported print publications in the physical world. But we never needed to say it in that world, for the same reason we never needed to say “don’t follow me out of your store,” or “don’t use ink that will give me an infection.” Nobody ever would have considered doing anything that ridiculously ill-mannered.

But following us, and infecting our digital bodies (e.g. our browsers) with microbes that spy on us, is pro forma for ad-supported publishers on the Internet. That’s why Do Not Track was created in 2007, and a big reason why since then hundreds of millions of us have installed ad blockers and tracking protection of various kinds in our browsers and mobile devices.

But blocking ads also breaks that old social contract. In that sense it’s also ill-mannered (though not ridiculously so, given the ickyness that typifies so much advertising online).

What if we wanted to restore that social contract, for the good of publishers that are stuck in their own ill-mannered death spiral?

The first and easiest way is by running tracking protection alone. There are many ways of doing that. There are settings you can make in some browsers, plus add-ons or extensions from Aloodo, BaycloudDisconnect, the EFF and others.

The second is requesting refined settings from browser makers. That’s  what @JuliaAnguin does in this tweet about the new Brave browser:

Julia Angwin's request to Brave

But why depend on each browser to provide us with a separate setting, with different rules? How about having our own pro forma rule we could express through all our browsers and apps?

We have the answer, and it’s called the NoStalking rule. In fact, it’s already being worked out and formalized at the Kantara Initiative and will live at Customer Commons, where it will be legible at all three of these levels:

3way

It will work because it’s a good one for both sides. Individuals proffering the #NoStalking term 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.

The offer can be expressed in one line of code in a browser, and accepted by corresponding code on the publisher’s side. The browser code can be run natively (as, for example, a choice in the Brave menu above) or through an extension such as an ad or tracking blocker. In those cases the blocker would open the valve to non-tracking-based advertising.

On the publisher’s side, the agreement can be automatic. Or simply de facto, meaning the publisher only runs non-tracking based ads anyway. (As does, for example, Medium.) In that case, the publisher is compliant with CHEDDAR, which was outlined by Don Marti (of Aloodo, above) and discussed  both at VRM Day and then at  IIW, in May. Here’s an icon-like image for CHEDDAR, drawn by Craig Burton on his phone:

Sketch - 7

To explain CHEDDAR, Don wrote this on the same whiteboard where the NoStalking term above also appeared:

cheddar

For the A in CHEDDAR, if we want the NoStalking agreement to be accountable from both sides, it might help to have a consent receipt. That spec is in the works too.

What matters most is that individuals get full respect as sovereign actors operating with full agency in the marketplace. That means it isn’t good enough just for sites to behave well. Sites also need to respond to friendly signals of intent coming directly from individuals visiting those sites. That’s why the NoStalking agreement is important. It’s the first of many other possible signals as well.

It also matters that the NoStalking agreement may be the first of its kind in the online world: one where the individual is the one extending the offer and the business is the one agreeing to it, rather than the other way around.

At VRM Day and IIW, we had participants affiliated with the EFF, Mozilla, Privacy Badger, Adblock Plus, Consent Receipt, PDEC (Personal Data Ecosystem Consortium),  and the CISWG (Consent & InfoSharing Working Group), among others. Work has continued since then, and includes people from the publishing, advertising and other interested communities. There’s a lot to be encouraged about.

In case anybody wonders if advertising can work as well if it’s not based on tracking, check out Pedro Gardete: The Real Price of Cheap Talk: Do customers benefit from highly targeted online ads?  by Eilene Zimmerman (@eilenez) in Insights by Stanford Business. The gist:

Now a new paper from Stanford Graduate School of Business professor Pedro Gardete and Yakov Bart, a professor at Northeastern University, sheds light on who is likely to benefit from personalized advertising and identifies managerial best practices.

The researchers found that highly targeted and personalized ads may not translate to higher profits for companies because consumers find those ads less persuasive. In fact, in some cases the most effective strategy is for consumers to keep information private and for businesses to track less of it.

You can also mine the oeuvres of Bob Hoffman and Don Marti for lots of other material that makes clear that the best advertising is actual advertising, and not stalking-based direct marketing that only looks like advertising.

Our next step, while we work on all this,  is to put together an FAQ on why the NoStalking deal is a good one for everybody. Look for that at Customer Commons, where terms behind more good deals that customers offer will show up in the coming months.

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How customers can debug business with one line of code

744px-Olive_branch.svg

Four years ago, I posted An olive branch to advertising here. It began,

Online advertising has a couple of big problems that could possibly be turned into opportunities. One is Do Not Track, or DNT. The other is blocking of ads and/or tracking.

Publishers and the advertising business either attacked or ignored Do Not Track, which was too bad, because the ideas we had for making it work might have prevented the problem those businesses now have with ad blocking.

According to the latest PageFair/Adobe study,  the number of people blocking ads passed 200 million last May, with double-digit increases in adoption, worldwide. Tracking protection is also gaining in popularity.

While those solutions provide individuals with agency and scale, they don’t work for publishers. Not yet, anyway.

What we need is a solution that scales for readers and is friendly to publishers and the kind of advertising readers can welcome—or at least tolerate, in appreciation of how ads sponsor the content they want. This is what we have always had with newspapers, magazines, radio and TV in the offline world, none of which ever tracked anybody anywhere.

So now we offer a solution. It’s a simple preference, which readers can express in code, that says this: Just show me ads that aren’t based on tracking me. Equally simple code can sit on the publishers’ side. Digital handshakes can also happen between the two.

This term will live at Customer Commons, which was designed for that purpose, on the model of Creative Commons (which also came out of work done by folks here at the Berkman Center).  This blog post provides some context.

We’ll be working on that term, its wording , and the code that expresses and agrees to it, next week at the Computer History Museum in Silicon Valley. Monday will be VRM Day. Tuesday through Thursday will be IIW—the Internet Identity Workshop (where ProjectVRM was incubated almost ten years ago). VRM Day is mostly for planning the work we’ll do at IIW. VRM Day is free, and IIW is cheap for three days of actually getting stuff done. (It’s by far the most leveraged conference I know, partly because it’s an unconference: no keynotes, panels or sponsor booths. Just breakouts that participants create, choose and lead.)

If you care about aligning publishing and advertising online with what worked for hundreds of years offline — and driving uninvited surveillance out of business itself — come help us out.

This one term is a first step. There will be many more before we customers get the full respect we deserve from ad-funded businesses online. Each step needs to prove to one business category or another that customers aren’t just followers. Sometimes they need to take the lead.

This is one of those times.  So let’s make it happen.

See you next week.

 

 

Helping publishers and advertisers move past the ad blockade

reader-publisher-advertiser

Those are the three market conversations happening in the digital publishing world. Let’s look into what they’re saying, and then what more they can say that’s not being said yet.

A: Publisher-Reader

Publishing has mostly been a push medium from the start. One has always been able to write back to The Editor, and in the digital world one can tweet and post in other places, including one’s own blog. But the flow and power asymmetry is still push-dominated, and the conversation remains mostly a one-way thing, centered on editorial content. (There is also far more blocking of ads than talk about them.)

An important distinction to make here is between subscription-based pubs and free ones. The business model of subscription-supported pubs is (or at least includes) B2C: business-to-customer. The business model of free pubs is B2B: business-to-business. In the free pub case, the consumer (who is not a customer, because she isn’t paying anything) is the product sold to the pub’s customer, the advertiser.

Publishers with paying subscribers have a greater stake — and therefore interest — in opening up conversation with customers. I believe they are also less interested in fighting with customers blocking ads than are the free pubs. (It would be interesting to see research on that.)

B. Publisher-Advertiser

In the offline world, this was an uncomplicated thing. Advertisers or their agencies placed ads in publications, and paid directly for it. In the online world, ads come to publishers through a tangle of intermediaries:

displaylumascape:

Thus publishers may have no idea at any given time what ads get placed in front of what readers, or for what reason. In service to this same complex system, they also serve up far more than the pages of editorial content that attracts readers to the site. Sight unseen, they plant tracking cookies and beacons in readers’ browsers, to follow those readers around and report their doings back to third parties that help advertisers aim ads back at those readers, either on the publisher’s site or elsewhere.

We could explore the four-dimensional shell game that comprises this system, but for our purposes here let’s just say it’s a B2B conversation. That it’s a big one now doesn’t mean it has to be the only one. Many others are possible.

C. Reader-Advertiser

In traditional offline advertising, there was little if any conversation between readers and advertisers, because the main purpose of advertising was to increase awareness. (Or, as Don Marti puts it, to send an economic signal.) If there was a call to action, it usually wasn’t to do something that involved the publisher.

A lot of online advertising is still that way. But much of it is direct response advertising. This kind of advertising (as I explain in Separating Advertising’s Wheat and Chaff) is descended not from Madison Avenue, but from direct mail (aka junk mail). And (as I explain in Debugging adtech’s assumptions) it’s hard to tell the difference.

Today readers are speaking to advertisers a number of ways:

  1. Responding to ads with a click or some other gesture. (This tens to happen at percentages to the right of the decimal point.)
  2. Talking back, one way or another, over social media or their own blogs.
  3. Blocking ads, and the tracking that aims them.

Lately the rate of ad and tracking blocking by readers has gone so high that publishers and advertisers have been freaking out. This is characterized as a “war” between ad-blocking readers and publishers. At the individual level it’s just prophylaxis. At the group level it’s a boycott. Both ways it sends a message to both publishers and advertisers that much of advertising and the methods used for aiming it are not welcome.

This does not mean, however, that making those ads or their methods more welcome is the job only of advertisers and publishers. Nor does it mean that the interactions between all three parties need to be confined to the ones we have now. We’re on the Internet here.

The Internet as we know it today is only twenty years old: dating from the end of the NSFnet (on 30 April 1995) and the opening of the whole Internet to commercial activity. There are sand dunes older than Facebook, Twitter — even Google — and more durable as well. There is no reason to confine the scope of our invention to incremental adaptations of what we have. So let’s get creative here, and start by looking at, then past, the immediate crisis.

People started blocking ads for two reasons: 1) too many got icky (see the Acceptable Ads Manifesto for a list of unwanted types); 2) unwelcome tracking. Both arise from the publisher-advertiser conversation, which to the reader (aka consumer) looks like this:

rotated

Thus the non-conversation between readers blocking ads and both publishers and advertisers (A and C) looks like this:

stophandsignal

So far.

Readers also have an interest in the persistence of the publishers they read. And they have an interest in at least some advertisers’ goods and services, or the marketplace wouldn’t exist.

Thus A and C are conversational frontiers — while B is a mess in desperate need of cleaning up.

VRM is about A and C, and it can help with B. It also goes beyond conversation to include the two other activities that comprise markets: transaction and relationship. You might visualize it as this:

Handshake_icon_GREEN-BLUE.svg

From Turning the customer journey into a virtuous cycle:

One of the reasons we started ProjectVRM is that actual customers are hard to find in the CRM business. We are “leads” for Sales, “cases” in Support, “leads” again in Marketing. At the Orders stage we are destinations to which products and invoices are delivered. That’s it.

Oracle CRM, however, has a nice twist on this (and thanks to @nitinbadjatia of Oracle for sharing it*):

Oracle Twist

Here we see the “customer journey” as a path that loops between buying and owning. The blue part — OWN, on the right — is literally the customer’s own-space. As the text on the OWN loop shows, the company’s job in that space is to support and serve. As we see here…

… the place where that happens is typically the call center.

Now let’s pause to consider the curb weight of “solutions” in the world of interactivity between company and customer today. In the BUY loop of the customer journey, we have:

  1. All of advertising, which Magna Global expects to pass $.5 trillion this year
  2. All of CRM, which Gartner pegs at $18b)
  3. All the rest of marketing, which has too many segments for me to bother looking up

In the OWN loop we have a $0trillion greenfield. This is where VRM started, with personal data lockers, stores, vaults, services and (just in the last few months) clouds.

Now look around your home. What you see is mostly stuff you own. Meaning you’ve bought it already. How about basing your relationships with companies on those things, rather than over on the BUY side of the loop, where you are forced to stand under a Niagara of advertising and sales-pitching, by companies and agencies trying to “target” and “acquire” you. From marketing’s traditional point of view (the headwaters of that Niagara), the OWN loop is where they can “manage” you, “control” you, “own” you and “lock” you in. To see one way this works, check your wallets, purses, glove compartments and kitchen junk drawers for “loyalty” cards that have little if anything to do with genuine loyalty.

But what if the OWN loop actually belonged to the customer, and not to the CRM system? What if you had VRM going there, working together with CRM, at any number of touch points, including the call center?

So here are two questions for the VRM community:

  1. What are we already doing in those areas that can help move forward in A and B?
  2. What can we do that isn’t being done now?

Among things we’re already doing are:

  • Maintaining personal clouds (aka vaults, lockers, personal information management systems, et.al.) from which data we control can be shared on a permitted basis with publishers and companies that want to sell us stuff, or with which we already enjoy relationships.
  • Employing intelligent personal assistants of our own.
  • Intentcasting, in which we advertise our intentions to buy (or seek services of some kind).
  • Terms individuals can assert, to start basing interactions and relationships on equal power, rather than the defaulted one-way take-it-or-leave-it non-agreements we have today.

The main challenge for publishers and advertisers is to look outside the box in which their B2B conversation happens — and the threats to that box they see in ad blocking — and to start looking at new ways of interacting with readers. And look for leadership coming from tool and service providers representing those readers. (For example, Mozilla.)

The main challenge for VRM developers is to provide more of those tools and services.

Bonus links for starters (again, I’ll add more):

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