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[Update: 29 June 2016 — Forbes has backed off, but Wired hasn’t yet. So the invitation stands. So does a path forward.]

tracking-forbes

A few days ago, I followed this link at Digg to Forbes, where I was met by the message above.

Problem is, I don’t have an ad blocker installed. I have tracking protection. Three kinds, in fact. (Let me explain: my work requires experimenting with many different privacy protection tools. It just happens that right now I have these three working in Firefox, my default browser.) Here is what Ghostery sees:

ghostery-on-forbes

Here is what Disconnect sees:

disconnect-on-forbes

And here is what Privacy Badger sees:

privacybadger-on-forbes

So I’m guessing what blocked the ad was one of the two red sliders in Privacy Badger. I slid the b.scorecardresearch.com one to yellow and it seemed to load the desired page without a problem, but I don’t know if Forbes would have let me though anyway or not . I dunno how to tell what did what.

Then today I ran into the same thing at Wired, looking for some of my own words there. Here’s the roadblock Wired put in my path:

wired-vs-ad-blockers

Again, I’m not blocking ads. I’m just trying to block tracking. I also just checked, and Disconnect, Ghostery and Privacy Badger are each doing nothing, far as I can tell, to block anything on Wired. They’re all green-lighting everything. That means they’ve already whitelisted it. Yet Wired thinks I’m blocking ads.

As it happens I‘ve been a Wired subscriber for the duration. But, when I log in (by clicking on the link above), it takes me to a billing page. There it wants to charge me $3.99 every four weeks, which comes to about $52 a year, on top of what I’m already paying for the print publication, which (I would hope) ought to give me access to the same thing online. Very confusing.

Thing is, I don’t mind ads. I even like some of them. Back in the last millennium, I was a partner in Hodskins Simone & Searls, one of Silicon Valley’s top advertising agencies.

And, like most readers, I want publishers to make money.

But I also believe publishers don’t need to do that by tracking me in ways I neither like nor approve. They can give me ads on their pages that are perfectly safe, just like the ads that have funded print magazines for the duration. Those were always respectful of people’s privacy, and don’t rely on a herd of third parties following people around while they go about their lives. They were also more valuable, because they sent clear creative and economic signals, both uncompromised by suspicions of surveillance and other forms of bad acting.

Here is what Joshua Bernstein (@JoshuaBernstein), sourcing Wired‘s Mark McClusky (@markmcc), reported in Bloomberg about what the magazine is trying to do here:

More than 1 in 5 people who visit Wired Magazine’s website use ad-blocking software. Starting in the next few weeks, the magazine will give those readers a choice: stop blocking ads, pay to look at a version of the site that is unsullied by advertisements, or go away…

Wired plans to charge $3.99 for four weeks of ad-free access to its website. In many places where ads appear, the site will simply feature more articles, said Mark McClusky, the magazine’s head of product and business development. The portion of his readership that uses ad blockers are likely to be receptive to a discussion about their responsibility to support the businesses they rely on for information online, McClusky said.

There are legitimate reasons that people use ad blockers, according to McClusky, like a desire to speed up web browsing or not wanting to be tracked online. But Wired has bills to pay. “I think people are ready to have that conversation in a straightforward way,” he said.

This post is part of that conversation. So is what I’ve been writing over the last eight years on what we’ve recently come to call the “adblock war.”

The reason this is a “war,” and it’s impossible for publishers on their own to make peace, is that the only solutions that can scale are the individual reader’s. Ad blockers and tracking protection in browsers all work for the individual, giving everybody scale. Roadblocks and tollbooths like Forbes’ and Wired’s piss readers off, drive them away, or both. Worse, every one of them is different, which is kind of an anti-scale way of doing things.

At this early stage, however, none of the solutions that scale for individuals also work in ways that are friendly to publishers. (Nor do what the browser makers are doing on their own—each differently, which is also anti-scale.)

So we need to take another step, again from the individual’s side, this time with an olive branch.

And that’s what we’ll do at VRM Day (25 April) and IIW(26–28 April), both at the Computer History Museum in Silicon Valley. I invite Forbes, Wired, and all publishers, advertisers, agencies, browser makers and other parties interested in peace to come join us there.

On the table is an easy solution: simple publisher-friendly preference a reader can assert and a publisher can agree to. It says, “Just show me ads not based on tracking me” — or words to that effect, which we’ll work out. (Update: we’ve dubbed this the #NoStalking offer.)

This term will be standard and enabled by code on both the client and server side. The standard and code will live at Customer Commons, which is built for that purpose, on the Creative Commons mode, which has worked well for many years. (And, like ProjectVRM, was hatched at the Berkman Center.) Some of the code already exists. We’ll start writing the rest at IIW next week.

Both VRM Day and IIW are unconferences. No keynotes, no panels, no sponsor exhibits. Everything happens at breakouts, all of which are topics chosen and led by participants. VRM Day is for presenting and planning the work we’ll be doing over the next three days at IIW. We do two IIWs per year, and this is our 22nd. I don’t know any gathering that is more leveraged for getting stuff done. Register here.

For more background on the peace we can forge together, see here and here.

 

drunk-driving

Today AdAge gives us Clinton and Sanders Using Addressable Advertising in New York Market: Precision Targeting Is Especially Relevant in NYC, Say Political Media Observers, by @LowBrowKate. Here’s how it works:

In order to aim addressable TV spots to those voters, the campaigns provide a list of the individual voters they want to target to Cablevision or satellite providers DirecTV and Dish. That list is matched against each provider’s customer database and ads are served to the matching households. Because voter data includes actual names and addresses, the same information the TV providers have for billing purposes, they readily can match up the lists.

Speaking as a Dish Network customer—and as a sovereign human being—I don’t want to be an “addressable target” of any advertising—and I already feel betrayed.

I don’t care what measurable results “addressable” or “precision” targeting gets for those who practice it. The result that matters is that I’m pissed to know that my provider has sold me out to advertisers putting crosshairs on me and my family. Same goes for other viewers who get creeped out when they see that an ad on TV is just for them and not for everybody watching the show.

It should be obvious by now that people hate being tracked like animals and shot with digital blow-guns by advertisers. The feedback has been loud and clear.

First the market responded with Do Not Track, which the ad industry mocked and ignored. Then the market installed ad blockers and tracking protection in numbers massive enough to comprise the largest boycott in human history. (More than 200 million doing ad blocking alone, by last June.) Again, the industry didn’t listen, and instead went to war with its own consumers and mocked the their choice as a “fad.”

Here is a fact: people value their privacy, safety and time infinitely more than whatever they might get from commercial messages packed around the content they actually demand.

Here is another: anonymity is a form of privacy. One of the graces of watching TV is being anonymous, as both a private individual and part of a crowd.

Advertising respected both those facts before it got body-snatched by direct marketing. Now is the time to respect the difference again, and separate the wheat of respectful advertising from the chaff of disrespectful “addressable targeting” and other junk mail methods that were alien to Madison Avenue before it got drunk on “digital.”

Make no mistake: addressable targeting is disrespectful to both its targets and the very media respectful advertising has supported for the duration. For a gut-check on that, ask if anybody wants it. Make it opt-in. Don’t just take advantage of whatever data collection has been done, surely without express permission from individual customers.

Here is another fact the industry needs to face: people have tools for safeguarding their privacy now, and they’ll get more, whether the industry likes it or not. In fact, the more precisely advertising invades and violates people’s personal spaces, the faster people will acquire the protections they need.

What’s at stake now for the industry is the survival of whatever remains of advertising’s value as a contribution to business and culture. The only reason the industry can’t see that fact, which ought to be obvious, is that it’s driving drunk on digital kool-aid.

Time to sober up.

Bonus reading: Bob Hoffman, Don Marti, Jason Kint, Dave Carroll, yours truly.

Bonus opportunity to participate in moving from blocking all advertising to welcoming the respectful kind: VRM Day and IIW, the week after next, at the Computer History Museum in Silicon Valley.

The original draft of this post was my comment under the AdAge piece.

It didn't happen in 2010, but it will in 2016.

It didn’t happen in 2010, but it will in 2016.

This Post ran on my blog almost six years ago. I was wrong about the timing, but not about the turning: because it’s about to happen this month at the Computer History Museum in Silicon Valley. More about that below the post.
_________________

The tide turned today. Mark it: 31 July 2010.

That’s when The Wall Street Journal published The Web’s Gold Mine: Your Secrets, subtitled A Journal investigation finds that one of the fastest-growing businesses on the Internet is the business of spying on consumers. First in a series. It has ten links to other sections of today’s report.

It’s pretty freaking amazing — and amazingly freaky, when you dig down to the business assumptions behind it. Here’s the gist:

The Journal conducted a comprehensive study that assesses and analyzes the broad array of cookies and other surveillance technology that companies are deploying on Internet users. It reveals that the tracking of consumers has grown both far more pervasive and far more intrusive than is realized by all but a handful of people in the vanguard of the industry.

It gets worse:

In between the Internet user and the advertiser, the Journal identified more than 100 middlemen — tracking companies, data brokers and advertising networks — competing to meet the growing demand for data on individual behavior and interests.The data on Ms. Hayes-Beaty’s film-watching habits, for instance, is being offered to advertisers on BlueKai Inc., one of the new data exchanges. “It is a sea change in the way the industry works,” says Omar Tawakol, CEO of BlueKai. “Advertisers want to buy access to people, not Web pages.” The Journal examined the 50 most popular U.S. websites, which account for about 40% of the Web pages viewed by Americans. (The Journal also tested its own site, WSJ.com.) It then analyzed the tracking files and programs these sites downloaded onto a test computer. As a group, the top 50 sites placed 3,180 tracking files in total on the Journal’s test computer. Nearly a third of these were innocuous, deployed to remember the password to a favorite site or tally most-popular articles. But over two-thirds — 2,224 — were installed by 131 companies, many of which are in the business of tracking Web users to create rich databases of consumer profiles that can be sold.

Here’s what’s delusional about all this: There is no demand for tracking by individual customers. All the demand comes from advertisers — or from companies selling to advertisers. For now.

Here is the difference between an advertiser and an ordinary company just trying to sell stuff to customers: nothing. If a better way to sell stuff comes along — especially if customers like it better than this crap the Journal is reporting on — advertising is in trouble.

Here is the difference between an active customer who wants to buy stuff and a consumer targeted by secretive tracking bullshit: everything.

Two things are going to happen here. One is that we’ll stop putting up with it. The other is that we’ll find better ways for demand and supply to meet — ways that don’t involve tracking or the guesswork called advertising.

Improving a pain in the ass doesn’t make it a kiss. The frontier here is on the demand side, not the supply side.

Advertising may pay for lots of great stuff (such as search) that we take for granted, but advertising even at its best is guesswork. It flourishes in the absence of more efficient and direct demand-supply interactions.

The idea of making advertising perfectly personal has been a holy grail of the business since Day Alpha. Now that Day Omega is approaching, thanks to creepy shit like this, the advertsing business is going to crash up against a harsh fact: “consumers” are real people, and most real people are creeped out by this stuff.

Rough impersonal guesswork is tolerable. Totally personalized guesswork is not.

Trust me, if I had exposed every possible action in my life this past week, including every word I wrote, every click I made, everything I ate and smelled and heard and looked at, the guesswork engine has not been built that can tell any seller the next thing I’ll actually want. (Even Amazon, widely regarded as the best at this stuff, sucks to some degree.)

Meanwhile I have money ready to spend on about eight things, right now, that I’d be glad to let the right sellers know, provided that information is confined to my relationship with those sellers, and that it doesn’t feed into anybody’s guesswork mill. I’m ready to share that information on exactly those conditions.

Tools to do that will be far more leveraged in the ready-to-spend economy than any guesswork system. (And we’re working on those tools.) Chris Locke put it best in Cluetrain eleven years ago. He said, if you only have time for one clue this year, this is the one to get…

Thanks to the Wall Street Journal, that dealing may finally come in 2010.

[Later…] Jeff Jarvis thinks the Journal is being silly. I love Jeff, and I agree that the Journal may be blurring some concerns, off-base on some of the tech and even a bit breathless; but I also think they’re on to something, and I’m glad they’re on it.

Most people don’t know how much they’re being followed, and I think what the Journal’s doing here really does mark a turning point.

I also think, as I said, that the deeper story is the market for advertising, which is actually threatened by absolute personalization. (The future market for real engagement, however, is enormous. But that’s a different business than advertising — and it’s no less thick with data… just data that’s voluntarily shared with trusted limits to use by others.)

[Later still…] TechCrunch had some fun throwing Eric Clemons and Danny Sullivan together. Steel Cage Debate On The Future Of Online Advertising: Danny Sullivan Vs. Eric Clemons, says the headline. Eric’s original is Why Advertising is Failing on the Internet. Danny’s reply is at that first link. As you might guess, I lean toward Eric on this one. But this post is a kind of corollary to Eric’s case, which is compressed here (at the first link again):

I stand by my earlier points:

  • Users don’t trust ads
  • Users don’t want to view ads
  • Users don’t need ads
  • Ads cannot be the sole source of funding for the internet
  • Ad revenue will diminish because of brutal competition brought on by an oversupply of inventory, and it will be replaced in many instances by micropayments and subscription payments for content.
  • There are numerous other business models that will work on the net, that will be tried, and that will succeed.

The last point, actually, seemed to be the most important. It was really the intent of the article, and the original title was “Business Models for Monetizing the Internet: Surely There Must Be Something Other Than Advertising.” This point got lost in the fury over the title of the article and in rage over the idea that online advertising might lose its importance.

My case is that advertisers themselves will tire of the guesswork business when something better comes along. Whether or not that “something better” funds Web sites and services is beside the points I am making, though it could hardly be a more important topic.

For what it’s worth, I believe that the Googles of the world are well positioned to take advantage of a new economy in which demand drives supply at least as well as supply drives demand. So, in fact, are some of those back-end data companies. (Disclosure: I currently consult one of them.)

Look at it this way…

  • What if all that collected data were yours and not just theirs?
  • What if you could improve that data voluntarily?
  • What if there were standard ways you could get that data back, and use it in your own ways?
  • What if those same companies were in the business of helping you buy stuff, and not just helping sellers target you?

Those questions are all on the table now.

___________________

9 April 2016 — The What They Know series ran in The Wall Street Journal until 2012. Since then the tracking economy has grown into a monster that Shoshana Zuboff calls The Big Other, and Surveillance Capitalism.

The tide against surveillance began to turn with the adoption of ad blockers and tracking blockers. But, while those provide a measure of relief, they don’t fix the problem. For that we need tools that engage the publishers and advertisers of the world, in ways that work for them as well.

They might think it’s working for them today; but it’s clearly not, and this has been apparent for a long time.

In Identity and the Independent Web, published in October 2010, John Battelle said “the fact is, the choices provided to us as we navigate are increasingly driven by algorithms modeled on the service’s understanding of our identity. We know this, and we’re cool with the deal.”

In The Data Bubble II (also in October 2010) I replied,

In fact we don’t know, we’re not cool with it, and it isn’t a deal.

If we knew, The Wall Street Journal wouldn’t have a reason to clue us in at such length.

We’re cool with it only to the degree that we are uncomplaining about it — so far.

And it isn’t a “deal” because nothing was ever negotiated.

To have a deal, both parties need to come to the table with terms the other can understand and accept. For example, we could come with a term that says, Just show me ads that aren’t based on tracking me. (In other words, Just show me the kind of advertising we’ve always had in the offline world — and in the online one before the surveillance-based “interactive” kind gave brain cancer to Madison Avenue.)

And that’s how we turn the tide. This month. We’ll prepare the work on VRM Day (25 April), and then hammer it into code at IIW (26–28 April). By the end of that week we’ll post the term and the code at Customer Commons (which was designed for that purpose, on the Creative Commons model).

Having this term (which needs a name — help us think of one) is a good deal for advertisers because non-tracking based ads are not only perfectly understood and good at doing what they’ve always done, but because they are actually worth more (thank you, Don Marti) than the tracking-based kind.

It’s a good deal for high-reputation publishers, because it gets them out of a shitty business that tracks their readers to low reputation sites where placing ads is cheaper. And it lets them keep publishing ads that readers can appreciate because the ads clearly support the publication. (Bet they can charge more for the ads too, simply because they are worth more.)

It’s even good for the “interactive” advertising business because it allows the next round of terms to support advertising based on tracking that the reader actually welcomes. If there is such a thing, however, it needs to be on terms the reader asserts, and not on labor-intensive industry-run opt-out systems such as Ad Choices.

If you have a stake in these outcomes, come to VRM Day and IIW and help us make it happen. VRM Day is free, and IIW is very cheap compared to most other conferences. It is also an unconference. That means it has no keynotes or panels. Instead it’s about getting stuff done, over three days of breakouts, all on topics chosen by you, me and anybody else who shows up.

When we’re done, the Data Bubble will start bursting for real. It won’t mean that data goes away, however. It will just mean that data gets put to better uses than the icky ones we’ve put up with for at least six years too long.

_________________

This post also appears in Medium.

Tags: ,

He didn't say it, but let's look at why it's wrong anyway.

He didn’t say it, but let’s look at why it’s wrong anyway.

This is an improved edit of a post I made to a list I’m on. Rather than let it scroll off to oblivion, I decided to put it here as well. The other parties are in italics. I’m in plain text.

If you work in advertising or marketing, kill yourself – Bill Hicks

Brilliant bit. Watch it here. The dude was also deep.

…or, from The Economist in 2013, a wonderful article which draws attention to research which counters the common view about search engine advertising

(which says, among other things…)

…search ads appear to solve a puzzle that has preoccupied advertisers since John Wanamaker, the 19th-century founding father of marketing, reportedly declared: “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”

Two problems with that oft-quoted one-liner. One is that Wanamaker didn’t say it. From The Intention Economy:

While this line is customarily attributed to John Wanamaker, he was neither the first nor the only source. In The Quote Verifier: Who Said What, Where, and When (New York: St. Martin’s Press, 2006), Ralph Keys writes, ‘In the United States this business truism is most often attributed to department store magnate John Wanamaker (1838–1922), in England to Lord Leverhulme (William H. Lever, founder of Lever Brothers, 1851–1925). The maxim has also been ascribed to chewing gum magnate William Wrigley, adman George Washington Hill, and adman David Ogilvy. In Confessions of an Advertising Man (1963), Ogilvy himself gave the nod to his fellow Englishman Lord Leverhulme (Lever Brothers was an Ogilvy client), adding that John Wanamaker later made the same observation. Since Wanamaker founded his first department store in 1861, when Lever was ten, this seems unlikely. Fortune magazine thought Wanamaker expressed the famous adage in 1885, but it gave no context. While researching John Wanamaker, King of Merchants (1993), biographer William Allen Zulker found the adage typed on a sheet of paper in Wanamaker’s archives, but without a name or source. Wanamaker usually wrote his own material longhand. Verdict: A maxim of obscure origins, put in famous mouths.’

The other is that it isn’t true. In terms of direct effects (what direct response marketing wants, and the Economist piece concerns itself with), 99.x% of advertising is wasted. In terms of indirect effects (which old fashioned brand advertising wants), 100% might be effective.

In “The Waste in Advertising is the Part That Works,” (Journal of Advertising Research, December, 2004, pp. 375-390.), Tim Ambler and E. Ann Hollier say brand advertising has the effect of making a company familiar, whether the audience likes it or not, and that this is a requirement for any large company selling to a large market. You may never buy a Ford F-150 truck, but you’re damn sure going to know about it if you watch football on TV (and don’t skip the ads). In other words, it doesn’t hurt to have everybody know who you are and what you sell.

In terms of signaling theory in economics (for which Michael Spence won a Nobel prize), “the firm signals the quality of its product to consumers by its willingness to spend money on advertising.” (N. Gregory Mankiw: Principles of Economics, p. 401.)

This was taken for granted in the advertising business for generations. But today it’s being forgotten because advertising is also now digital, and leading the digital craze is the four dimensional shell game called adtech, which is thick with fraud, malware and world-class rudeness — such as planting tracking beacons on your digital person to follow you around the Net and report your activities to parties unknown, all the better to plant crosshairs on your eyeballs as you go about your private business.

The biggest problem with advertising today is that something that wasn’t advertising in the first place — direct response marketing, which includes both junk mail and spam — is now called advertising, because it looks the part. You don’t know whether the GMC ad you see on Huffington Post is there for every reader or just for you (because some tracking-based targeting mechanism has put it there for you).

Lately individuals have been putting a stop to all forms of advertising, with ad and tracking blockers. According to PageFair and Adobe, the number of people blocking ads passed 200 million worldwide last June, with increase rates in the prior year of 41% worldwide, 48% in the U.S. and 82% in the U.K. If this be a boycott, it’s the biggest in human history.

Most of the whining about ad blocking has been from those directly affected: publishers and ad agencies, since ad blocking costs them exposure and therefore income. Approximately no whining is coming from actual advertisers. (Who don’t call themselves that, by the way. They call themselves retailers, car makers, brewers and bankers.) For them advertising is just a line item on the expense side of the balance sheet. They can cut it or re-deploy it in other ways. For example, they can spend on the kind of old-fashioned non-tracking-based advertising they did before direct response marketing (best known as junk mail) body-snatched Madison Avenue, making it “digital” at all costs, including the good will of advertising’s consumers, who now have a valve to shut it off. (Or just to shut off the tracking. The valves are getting better every day.)

Naturally this has caused a “war” to break out. (FWIW, I’ve been covering this for some time. Here’s a list of posts and articles. Three of the most recent are in HBR, MIT Technology Review and Linux Journal.)

This conflation of direct response marketing with old fashioned Madison Avenue brand advertising has too many of us judging the latter by the metrics of the former. Among those is the author of this Economist piece. Let’s continue…

But new research shows that the simple measures often used to assess the impact of search ads may be exaggerating their effectiveness.

Again, while search ads are called ads, they’re really direct marketing. They are data-driven, want to get personal, and are looking for a direct response. Brand advertising is also data-driven, but the data is always in aggregate form, because the targets are populations, not individuals. Brand advertising doesn’t want to get personal. That would be too expensive, might creep people out, and isn’t the idea anyway, because brand advertising isn’t looking for a direct response. All it wants is to make an impression. Not a sale.

Establishing cause and effect in offline advertising is hard. Ads are difficult to target: space on billboards and in newspapers is seen by lots of shoppers. Some of these eyeballs are worth spending money on; others, either because they belong to existing customers or to people who never will be, are not.

But the whole point of billboards is to be “the waste that works.” If you’re McDonalds (the biggest outdoor advertiser in the U.S.), you want every driver to know they serve more kinds of coffee now. If you’re Geico, you want to maintain top-of-mind consideration when people (not just you) get around to buying insurance again (something nobody does every day).

And even when big ad campaigns are followed by strong conclusion—that rising sales are the result of good budgets often rise in good times so that spending and sales grow together, even if the advertisements are useless. The ads and the sales have a common cause—strong demand—but may have no causal link.

Right. And that is not a problem if you’re McDonalds or Geico.

Internet advertising seems to offer a solution to both these problems.

Again, for brand advertising those aren’t problems.

First, internet search ads are targeted: the links that search engines show are based on a combination of the search term a user has typed in and his browsing history. Second, because firms can track whether visitors to their websites come from search-engine links they have paid for, they can work out whether ads convert into sales…

The most tendentious adtech assumption is that everybody is buying something all the time. Most of the time we are not. When I looked up the Bill Hicks videos above, I wasn’t buying anything. In fact when I look through my browsing history over the past week, I find only one shopping example, and that was the exercise in futility that led me to post my buying intentions on my blog. So far the response has been nil. Nobody wants to fix a ten-year-old subwoofer, least of all from a company that’s out of business.

Now here’s what matters about brand advertising in my one little case, and why the waste in it is the part that works: when I replace my busted subwoofer, I am far more likely to be attracted to brands I know than to be swayed by advertising targeted at me because robots that follow me suspect I’m looking for a subwoofer at this moment in time. (None do, by the way. I’m seeing no ads anywhere for subwoofers.)

Another false adtech assumption is that “big data” can “know us better than we know ourselves.” This is worse than wrong: it is delusional, and an insult to our sovereign humanity. All of us are not only different from each other, but from how we were ten minutes ago. To be fully human is to learn and change constantly. “I know this orbit of mine cannot be swept by a carpenter’s compass,” Whitman writes. “I do not trouble my spirit to vindicate itself or be understood… I was never measured, and never will be measured… The spotted hawk swoops by and accuses me. He complains of my gab and my loitering. I too am not a bit tamed. I too am untranslatable. I sound my barbaric yawp over the roofs of the world.”

No direct response advertising system, no big data algorithms, can begin to comprehend the wild, free, untamed, barbaric and untranslatable spotted hawk in each of us. But brand ads can still make us aware that Geico will save you 15% in 15 minutes.

(The next paragraph refers back to an earlier one I snipped.)

To test this problem of “activity bias”, the authors recruited volunteers online and split them into two groups. The first group watched a video promoting Yahoo, and the other group watched a political broadcast. The first group used Yahoo around three times more after seeing the ad, giving the impression it was very influential. But the control group—those subjected to a bout of politics but no Yahoo promotion—also used Yahoo a lot more. Both groups happened to be in an active period of internet use. This is why they were recruited in the first place and why they used Yahoo sense of advertising impact…

Three years ago I was invited to a Yahoo offsite in the Caribbean to give a talk to their biggest advertisers, plus a bunch of celebrities who came along for the junket. I told them the future was one of liberated individuals who would only increase their agency (the power to act with full effect in the world), and that they should place their bets on the side of those individuals, rather than only on adtech, which was all the rage at the time (and still is, although now it’s looking more like a cancer). I also pointed to the rise in ad blocking and its inevitable effect on Yahoo’s business. There was a lot of agreement, but no action. They kept investing in adtech, and we see where they are now.

Bosses should still take Wanamaker’s fear seriously: a rise in sales after an ad campaign does not automatically mean that the ads worked. But it also shows how the online world is getting closer to solving the conundrum he posed. Far from being an industry where cause and effect remain murky, online advertising may yet become one area where the dismal science can predict how to get costs down and profits up.

It would have helped this piece if the signaling corner of the dismal science were sourced as well. So I advise The Economist and others covering advertising to look for signaling in the jewel case that is Don Marti’s blog. On the subject of advertising, there’s none better.

onix subwooferSo I’ve got this Onix x-sub subwoofer that doesn’t work. It’s the bass side of a Sonos ZP-100 system driving a pair of Cambridge Soundworks Newton MC300 speakers in our living room. Together the system sounds great. (Consistent with Tom Andry‘s review, which influenced my purchase back in ’06.)

The little green light in the back went out, and the fuse is fine. So it’s… what? Bad switch? Whole power supply? Whatever it is, I’d rather get it fixed than replace it, because we (meaning my wife) like the way it looks.

Onix and the company I bought the speaker from, AV123, are out of business. I’ve made a bunch of calls to possible repair sources here in Santa Barbara. No help so far.

So consider this an intentcast for help. Any takers? Or advice?

[Two days later…] Nope. Guess I’ll just get a new one. Oh well.

(Somebody280px-Do_not_disturb.svg on Quora asked, What is the social justification of privacy? adding, I am trying to ask about why individual privacy is important to society. Obviously it is preferable to individuals for a variety of reasons. But society seems to gain more from transparency. So, rather than leave my answer buried there, I decided to share it here as well.)

Society is comprised of individuals, and thick with practices and customs that respect individual needs. Privacy is one of those. Only those of us who live naked outdoors without clothing and shelter can do without privacy. The rest of us all have ways of expressing and guarding spaces we call “private” — and that others respect as well.

Private spaces are virtual as well as physical. Society would not exist without well-established norms for expressing and respecting each others’ boundaries. “Good fences make good neighbors,” says Robert Frost.

One would hardly ask to justify the need for privacy before the Internet came along; but it is a question now because the virtual world, like nature in the physical one, doesn’t come with privacy. By nature we are naked in both. The difference is that we’ve had many millennia to work out privacy in the physical world, and approximately two decades to do the same in the virtual one. That’s not enough time.

In the physical world we get privacy from clothing and shelter, plus respect for each others’ boundaries, which are established by mutual understandings of what’s private and what’s not. All of these are both complex and subtle. Clothing, for example, customarily covers what we (in English vernacular at least) call our “privates,” but also allow us selectively to expose parts of our bodies, in various ways and degrees, depending on social setting, weather and other conditions. Privacy in our sheltered spaces is also modulated by windows, doors, shutters, locks, blinds and curtains. How these signal intentions differs by culture and setting, but within each the signals are well understood, and boundaries are respected. Some of these are expressed in law as well as custom. In sum they comprise civilized life.

Yet life online is not yet civilized. We still lack sufficient means for expressing and guarding private spaces, for putting up boundaries, for signaling intentions to each other, and for signaling back respect for those signals. In the absence of those we also lack sufficient custom and law. Worse, laws created in the physical world do not all comprehend a virtual one in which all of us, everywhere in the world, are by design zero distance apart — and at costs that yearn toward zero as well. This is still very new to human experience.

In the absence of restricting customs and laws it is easy for those with the power to penetrate our private spaces (such as our browsers and email clients) to do so. This is why our private spaces online today are infected with tracking files that report our activities back to others we have never met and don’t know. These practices would never be sanctioned in the physical world, but in the uncivilized virtual world they are easy to rationalize: Hey, it’s easy to do, everybody does it, it’s normative now, transparency is a Good Thing, it helps fund “free” sites and services, nobody is really harmed, and so on.

But it’s not okay. Just because something can be done doesn’t mean it should be done, or that it’s the right thing to do. Nor is it right because it is, for now, normative, or because everybody seems to put up with it. The only reason people continue to put up with it is because they have little choice — so far.

Study after study show that people are highly concerned about their privacy online, and vexed by their limited ability to do anything about its absence. For example —

  • Pew reports that “93% of adults say that being in control of who can get information about them is important,” that “90% say that controlling what information is collected about them is important,” that 93% “also value having the ability to share confidential matters with another trusted person,” that “88% say it is important that they not have someone watch or listen to them without their permission,” and that 63% “feel it is important to be able to “go around in public without always being identified.”
  • Ipsos, on behalf of TRUSTe, reports that “92% of U.S. Internet users worry about their privacy online,” that “91% of U.S. Internet users say they avoid companies that do not protect their privacy,” “22% don’t trust anyone to protect their online privacy,” that “45% think online privacy is more important than national security,” that 91% “avoid doing business with companies who I do not believe protect my privacy online,” that “77% have moderated their online activity in the last year due to privacy concerns,” and that, in sum, “Consumers want transparency, notice and choice in exchange for trust.”
  • Customer Commons reports that “A large percentage of individuals employ artful dodges to avoid giving out requested personal information online when they believe at least some of that information is not required.” Specifically, “Only 8.45% of respondents reported that they always accurately disclose personal information that is requested of them. The remaining 91.55% reported that they are less than fully disclosing.”
  • The Annenberg School for Communications at the University of Pennsylvania reports that “a majority of Americans are resigned to giving up their data—and that is why many appear to be engaging in tradeoffs.” Specifically, “91% disagree (77% of them strongly) that ‘If companies give me a discount, it is a fair exchange for them to collect information about me without my knowing.'” And “71% disagree (53% of them strongly) that ‘It’s fair for an online or physical store to monitor what I’m doing online when I’m there, in exchange for letting me use the store’s wireless internet, or Wi-Fi, without charge.'”

There are both policy and market responses to these findings. On the policy side, Europe has laws protecting personal data that go back to the Data Protection Directive of 1995. Australia has similar laws going back to 1988. On the market side, Apple now has a strong pro-privacy stance, posted Privacy – Apple, taking the form an open letter to the world from CEO Tim Cook. One excerpt:

“Our business model is very straightforward: We sell great products. We don’t build a profile based on your email content or web browsing habits to sell to advertisers. We don’t ‘monetize’ the information you store on your iPhone or in iCloud. And we don’t read your email or your messages to get information to market to you. Our software and services are designed to make our devices better. Plain and simple.”

But we also need tools that serve us as personally as do our own clothes. And we’ll get them. The collection of developers listed here by ProjectVRM are all working on tools that give individuals ways of operating privately in the networked world. The most successful of those today are the ad and tracking blockers listed under Privacy Protection. According to the latest PageFair/Adobe study, the population of persons blocking ads online passed 200 million in May of 2015, with a 42% annual increase in the U.S. and an 82% rate in the U.K. alone.

These tools create and guard private spaces in our online lives by giving us ways to set boundaries and exclude unwanted intrusions. These are primitive systems, so far, but they do work and are sure to evolve. As they do, expect the online world to become as civilized as the offline one — eventually.

For more about all of this, visit my Adblock War Series.

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While The Cluetrain Manifesto is best known for its 95 theses (especially its first, “Markets are conversations”), the clue that matters most is this one, which runs above the whole list:

we are not seats or eyeballs or end users or consumers.
we are human beings and our reach exceeds your grasp. deal with it.

 

That was the first clue we wrote. And by “we” I mean Christopher Locke (aka RageBoy), who sent it to the other three authors in early 1999. At that time we were barely focused on what we wanted to do, other than to put something up on the Web.

But that ur-clue, addressed to marketers on behalf of markets, energized and focused everything we wrote on Cluetrain site, and then in the book.

But it failed. Are you hearing me, folks? It failed. For a decade and a half, Cluetrain succeeded as a book and as a meme, but it failed to make its founding clue true. Deal with this:

our reach did not exceed marketers’ grasp.
instead, marketers grasped more than ever, starting with our privacy.

 

As heedless of manners as a mosh pit on Ecstasy, the online advertising business went nuts with surveillance, planting cookies and beacons in people’s browsers and tracking them like animals, harvesting and shipping off personal data to who-knows-where, all for the dubious purpose of spamming them with advertising based on algorithmic guesswork about what people might want to buy. All this in spite of two simple facts:

  1. Nobody comes to a webstite for advertising. At most they just tolerate it.
  2. Most of the time people aren’t buying anything. That’s why people don’t click on ads at a rate that rounds to 100%.

For years we played nice, quietly purging cookies from our browsers’ innards, or just putting up with the abuse. For few years (2007-2012, specifically — see below), we put some hope in Do Not Track.

Then, when that failed (most dramatically in 2012), we started blocking ads, en masse:

adblocker-vs-dnt

More than 200 million of us are blocking ads now, and (in many or most cases) blocking tracking as well. This is great news for Cluetrain fans, because:::

blocking ads and tracking
are great ways to deal with marketers’ grasp.

 

Depending on marketers to stop bad acting on their own is putting responsibility in the wrong place. It’s our job to stop them. Besides, asking the online advertising business to reform is like asking Versailles to start the French Revolution. Writes Jessica Davies,

I was recently in front of about 400 advertisers talking to them about fraud, and they all nodded their heads and listened, but there was apathy. Behind the scenes I ask them what they’re doing about it and some of them shrug their shoulders…

The funniest conversation I’ve ever had with an agency was when I told them a campaign they had run was 90 percent fraudulent, and their reply was: ‘Oh, I know, but it really performed well. The click-through rates were phenomenal.’ I re-emphasized that those click-throughs were fraudulent; the ads weren’t seen by humans, and their response was ‘The client is happy. We’re renewing the contract.’

Here’s a fact about those clients: They don’t call themselves advertisers, and they don’t have to advertise. To them advertising is overhead. A discretionary expense. They can spend it other ways. I know this, because I was a partner in one of Silicon Valley’s top advertising agencies for the better part of two decades. And, because of that, I also know how well old-fashioned Madison Avenue advertising — the uncomplicated kind not based on tracking — can actually work, while sponsoring publishers and broadcasters of all kinds.

That kind of advertising, aka #SafeAds, is the best hope the online advertising industry and its dependents in publishing and broadcasting actually have — especially if future ad and tracking blockers permit those through while saying #NoAds to the rest.

Now let’s go back to dealing. What else, besides #SafeAds, can we get with leverage from blocking ads and tracking? Clue: it has to be good for both sides. That’s how business works at its best. Both sides win. We don’t need to reach for their privates just because they grasped our privacy.

How about this deal: better signaling between customers and companies than marketing alone can provide— especially when marketing today is mostly about grabbing for “net new” and flushing customers into “the pipeline” through “the funnel.”

We can help companies (and ourselves) a lot more if we have standard ways to connect with sales, service and product and service development functions — and they with us. Then “Markets are conversations” will finally mean what it’s failed to mean for the last sixteen years.

Bonus link: VRM development projects, many of which are already working on this.

 

I’ll be on a webinar this morning talking with folks about The Intention Economy and the Rise in Customer Power. That link goes to my recent post about it on the blog of Modria, the VRM company hosting the event.

It’s at 9:30am Pacific time. Read more about it and register to attend here. There it also says “As a bonus, all registered attendees will receive a free copy of Doc’s latest book, The Intention Economy: How Customers Are Taking Charge in either printed or Kindle format.”

See/hear you there/then.

 

 

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According to Business Insider, ad blocking is now “approaching 200 million.”

Calling it a boycott is my wife’s idea. I say she’s right. Look at the definitions:

Merriam-Webster: “to engage in a concerted refusal to have dealings with (as a person, store, or organization) usually to express disapproval or to force acceptance of certain conditions.”

Wikipedia: “an act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest, usually for social or political reasons. Sometimes, it can be a form of consumer activism.”

Free Dictionary: “To abstain from or act together in abstaining from using, buying, dealing with, or participating in as an expression of protest or disfavor or as a means ofcoercion.”

Close enough.

Ad blocking didn’t happen in a vacuum. It had causes. We start to see those when we look at how interest hockey-sticked in 2012. That was when ad-supported commercial websites, en masse, declined to respect Do Not Track messages from users:

gtrends

As we see, interest in Do Not Track fell, while interest in ad blocking rose. (As did ad blocking itself.)

Leading up to this, from 2007 to 2011, advertisers and publishers cranked up tracking-fed advertising, aka “behavioral” advertising. Or, to the business itself, adtech.

Here are Google Trends searches for nine pieces of adtech arcana, none of which were in use before 2007:

adtechterms2

other4trendsAdd retargeting to that last one (note: you can’t search more than five terms at a time), and you get this:

5variables-trendsRetargeting is the most obvious form of adtech. It’s how one ad shows up over and over again, at site after site, because some part of adtech’s collective brain (combining all the stuff trending in the graphs above, and more) decides to treat you like one of those enemies in a video game that has to be shot over and over again until it finally blows up. Not surprisingly, as retargeting started to rise, so did searches for “how to block ads”:

block-retargetubg(Original source: Don Marti)

Finally, here’s adblock war, by itself:

gtrends-adblockwarGoogle says data for September, at the right edge of that last chart, is partial. Given the media coverage going to adblock + war (and Apple’s support for “Content Blocking” in IOS 9), interest is sure to stay high.

If we look at this war through the lens of GandhiCon

  1. First they ignore you.
  2. Then they laugh at you.
  3. Then they fight you.
  4. Then you win.

…we’re at GandhiCon 3.

It is typical of business, even on the Internet (where everybody has power, and not just the big institutions), to think that ad blocking is a problem that affects only them, and that it’s up to them to fix it. (A new example: Secret Media.)

Actually, it’s up to us. Because we’ll win. Then we’ll find ourselves saying again what Cluetrain first said for us sixteen years ago:

we are not seats or eyeballs or end users or consumers. we are human beings and our reach exceeds your grasp. deal with it.

Deal is the operative verb here. Publishers and companies that advertise have power too, and we need to engage it, not just fight it. (In his speech at the UN today, President Obama had a good one-liner that applies here: “We all have a stake in each other’s success.”)

I describe one path toward engagement in A Way to Peace in the Adblock War, over on the ProjectVRM blog:

The only way engagement will work is through tools that are ours, and we control: tools that give us scale — like a handshake gives us scale. What engages us with the Washington Post should also engage us with Verge and Huffpo. What engages us with Mercedes should also engage us with a Ford dealer or a shoe store.

That path leads to a pair of related outcomes.

One is that ad blockers will evolve to valving systems for accepting advertising’s wheat while rejecting its chaff. (I explain the difference in the first post in this series. Also, sez AdExchanger, 71% of Ad-Block Users Would Consider Whitelisting Sites That Don’t Suck.)

The other is that we’ll help marketers think past abuse and coercion as ways to get what they want out of customers. After that happens, they’ll realize that —

  1. Free customers are more valuable than captive ones
  2. Genuine relationships are worth more than coerced ones
  3. Volunteered (and truly relevant) personal data is worth more than the kind that is involuntarily fracked
  4. Expressions of real intent by customers are worth more than guesswork fed by fracked data

And we’ll prove it to them. Because we’ll have the power to do that, whether they like it or not.

I’ll lay out paths to both outcomes in my next post.

 

 

 

 

 

no-ads-trackingHere is a list of pieces I’ve written on what has come to be known as the “adblock wars.” That term applies most to #22 (written August of ’15) those that follow. But the whole series works as a coherent whole that might make a good book if a publisher is interested.

  1. Why online advertising sucks, and is a bubble (31 October 2008)
  2. After the advertising bubble bursts (23 March 2009)
  3. The Data Bubble (31 July 2010)
  4. The Data Bubble II (30 October 2010)
  5. A sense of bewronging (2 April 2011)
  6. For personal data, use value beats sale value (13 February 2012)
  7. Stop making cows. Quit being calves. (21 February 2012)
  8. An olive branch to advertising (12 September 2012, on the ProjectVRM blog)
  9. What could/should advertising look like in 2020, and what do we need to do now for this future? (Wharton’s Future of Advertising project, 13 November 2012)
  10. Bringing manners to marketing (12 January 2013 in Customer Commons)
  11. Thoughts on Privacy (31 August 2013)
  12. What the ad biz needs is to evict direct marketing (6 October 2013)
  13. We are not fish and advertising is not food (23 January 2014 in Customer Commons)
  14. Earth to Mozilla: Come back home (12 April 2014)
  15. Why to avoid advertising as a business model (25 June 2014, re-running Open Letter to Meg Whitman, which ran on 15 October 2000 in my old blog)
  16. Time for digital emancipation (27 July 2014)
  17. Privacy is personal (2 July 2014 in Linux Journal)
  18. On marketing’s terminal addiction to data fracking and bad guesswork (10 January 2015)
  19. Thoughts on tracking based advertising (18 February 2015)
  20. Because freedom matters (26 March 2015)
  21. On taking personalized ads personally (27 March 2015)
  22. Captivity rules (29 March 2015)
  23. Separating advertising’s wheat and chaff (12 August 2015)
  24. Apple’s content blocking is chemo for the cancer of adtech (26 August 2015)
  25. Will content blocking push Apple into advertising’s wheat business? (29 August 2015)
  26. If marketing listened to markets, they’d hear what ad blocking is telling them (8 September 2015)
  27. Debugging adtext assumptions (18 September 2015)
  28. How adtech, not ad blocking, breaks the social contract (23 September 2015)
  29. A way to peace in the adblock war (21 September 2015, on the ProjectVRM blog)
  30. Beyond ad blocking — the biggest boycott in human history (28 Septemper 2015)
  31. Dealing with Boundary Issues (1 October 2015 in Linux Journal)
  32. Helping publishers and advertisers move past the ad blockade (11 October on the ProjectVRM blog)
  33. How #adblocking matures from #NoAds to #SafeAds (22 October 2015)
  34. How Will the Big Data Craze Play Out (1 November 2015 in Linux Journal)
  35. Ad Blockers and the Next Chapter of the Internet (5 November in Harvard Business Review)
  36. At last, Cluetrain’s time has come (5 December 2015)
  37. The End of Internet Advertising as We’ve Known It (11 December 2015 in MIT Technology Review)
  38. More thoughts on privacy (13 December 2015)
  39. Why ad blocking is good (17 December 2015 talk at the U. of Michigan)
  40. What we can do with ad blocking’s leverage (1 January 2016 in Linux Journal)
  41. Rethinking John Wanamaker (18 January 2016)

There are others, but those will do for now.

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