Category: Privacy (Page 2 of 5)

The most leveraged VRM Day yet

VRM Day is coming up soon: Monday, 2 April.

Register at that link. Or, if it fails, this one. (Not sure why, but we get reports of fails with the first link on Chrome, but not other browsers. Go refigure.)

Why this one is more leveraged than any other, so far:::

Thanks to the GDPR, there is more need than ever for VRM, and more interest than ever in solutions to compliance problems that can only come from the personal side.

For example, the GDPR invites this question: What can we do as individuals that can put all the companies we deal with in compliance with the GDPR because they’re in compliance withour terms and our privacy policies? We have some answers, and we’ll talk about those.

We also have two topics we need to dive deeply into, starting at VRM Day and continuing over the following three days at IIW, also at the Computer History Museum. These too are impelled by the GDPR.

First is lexicon, or what the techies call ontology: “a formal naming and definition of the types, properties, and interrelationships of the entities that really exist in a particular domain of discourse.” In other words, What are we saying in VRM that CRM can understand—and vice versa? We’re at that point now—where VRM meets CRM. On the table will be not just be the tools and services customers will use to make themselves understood by the corporate systems of the world, but the protocols, standard code bases, ontologies and other necessities that will intermediate between the two.

Second is cooperation. The ProjectVRM wiki now has a page called Cooperative Work that needs to be substantiated by actual cooperation, now that the GDPR is approaching. How can we support each other?

Bring your answers.

See you there.

A positive look at Me2B

Somehow Martin Geddes and I were both at PIE2017 in London a few days ago and missed each other. That bums me because nobody in tech is more thoughtful and deep than Martin, and it would have been great to see him there. Still, we have his excellent report on the conference, which I highly recommend.

The theme of the conference was #Me2B, a perfect synonym (or synotag) for both #VRM and #CustomerTech, and hugely gratifying for us at ProjectVRM. As Martin says in his report,

This conference is an important one, as it has not sold its soul to the identity harvesters, nor rejected commercialism for utopian social visions by excluding them. It brings together the different parts and players, accepts the imperfection of our present reality, and celebrates the genuine progress being made.

Another pull-quote:

…if Facebook (and other identity harvesting companies) performed the same surveillance and stalking actions in the physical world as they do online, there would be riots. How dare you do that to my children, family and friends!

On the other hand, there are many people working to empower the “buy side”, helping people to make better decisions. Rather than identity harvesting, they perform “identity projection”, augmenting the power of the individual over the system of choice around them.

The main demand side commercial opportunity at the moment are applications like price comparison shopping. In the not too distant future is may transform how we eat, and drive a “food as medicine” model, paid for by life insurers to reduce claims.

The core issue is “who is my data empowering, and to what ends?”. If it is personal data, then there needs to be only one ultimate answer: it must empower you, and to your own benefit (where that is a legitimate intent, i.e. not fraud). Anything else is a tyranny to be avoided.

The good news is that these apparently unreconcilable views and systems can find a middle ground. There are technologies being built that allow for every party to win: the user, the merchant, and the identity broker. That these appear to be gaining ground, and removing the friction from the “identity supply chain”, is room for optimism.

Encouraging technologies that enable the individual to win is what ProjectVRM is all about. Same goes for Customer Commons, our nonprofit spin-off. Nice to know others (especially ones as smart and observant as Martin) see them gaining ground.

Martin also writes,

It is not merely for suppliers in the digital identity and personal information supply chain. Any enterprise can aspire to deliver a smart customer journey using smart contracts powered by personal information. All enterprises can deliver a better experience by helping customers to make better choices.

True.

The only problem with companies delivering better experiences by themselves is that every one of them is doing it differently, often using the same back-end SaaS systems (e.g. from Salesforce, Oracle, IBM, et. al.).

We need ways customers can have their own standard ways to change personal data settings (e.g. name, address, credit card info), call for support and supply useful intelligence to any of the companies they deal with, and to do any of those in one move.

See, just as companies need scale across all the customers they deal with, customers need scale across all the companies they deal with. I visit the possibilities for that here, here, here, and here.

On the topic of privacy, here’s a bonus link.

And, since Martin takes a very useful identity angle in his report, I invite him to come to the next Internet Identity Workshop, which Phil Windley, Kaliya @IdentityWoman and I put on twice a year at the Computer History Museum. The next, our 26th, is 3-5 April 2018.

 

 

Our radical hack on the whole marketplace

In Disruption isn’t the whole VRM story, I visited the Tetrad of Media Effects, from Laws of Media: the New Science, by Marshall and Eric McLuhan. Every new medium (which can be anything from a stone arrowhead to a self-driving car), the McLuhans say, does four things, which they pose as questions that can have multiple answers, and they visualize this way:

tetrad-of-media-effects

The McLuhans also famously explained their work with this encompassing statement: We shape our tools and thereafter they shape us.

This can go for institutions, such as businesses, and whole marketplaces, as well as people. We saw that happen in a big way with contracts of adhesion: those one-sided non-agreements we click on every time we acquire a new login and password, so we can deal with yet another site or service online.

These were named in 1943 by the law professor Friedrich “Fritz” Kessler in his landmark paper, “Contracts of Adhesion: Some Thoughts about Freedom of Contract.” Here is pretty much his whole case, expressed in a tetrad:

contracts-of-adhesion

Contracts of adhesion were tools industry shaped, was in turn shaped by, and in turn shaped the whole marketplace.

But now we have the Internet, which by design gives everyone on it a place to stand, and, like Archimedes with his lever, move the world.

We are now developing that lever, in the form of terms any one of us can assert, as a first party, and the other side—the businesses we deal with—can agree to, automatically. Which they’ll do it because it’s good for them.

I describe our first two terms, both of which have potentials toward enormous changes, in two similar posts put up elsewhere: 

— What if businesses agreed to customers’ terms and conditions? 

— The only way customers come first

And we’ll work some of those terms this week, fittingly, at the Computer History Museum in Silicon Valley, starting tomorrow at VRM Day and then Tuesday through Thursday at the Internet Identity Workshop. I host the former and co-host the latter, our 24th. One is free and the other is cheap for a conference.

Here is what will come of our work:
personal-terms

Trust me: nothing you can do is more leveraged than helping make this happen.

See you there.

 

We’re done with Phase One

Here’s a picture that’s worth more than a thousand words:

maif-vrm

He’s with MAIF, the French insurance company, speaking at MyData 2016 in Helsinki, a little over a month ago. Here’s another:

sean-vrm

That’s Sean Bohan, head of our steering committee, expanding on what many people at the conference already knew.

I was there too, giving the morning keynote on Day 2:

cupfu1hxeaa4thh

It was an entirely new talk. Pretty good one too, especially since  I came up with it the night before.

See, by the end of Day 1, it was clear that pretty much everybody at the conference already knew how market power was shifting from centralized industries to distributed individuals and groups (including many inside centralized industries). It was also clear that most of the hundreds of people at the conference were also familiar with VRM as a market category. I didn’t need to talk about that stuff anymore. At least not in Europe, where most of the VRM action is.

So, after a very long journey, we’re finally getting started.

In my own case, the journey began when I saw the Internet coming, back in the ’80s.  It was clear to me that the Net would change the world radically, once it allowed commercial activity to flow over its pipes. That floodgate opened on April 30, 1995. Not long after that, I joined the fray as an editor for Linux Journal (where I still am, by the way, more than 20 years later). Then, in 1999, I co-wrote The Cluetrain Manifesto, which delivered this “one clue” above its list of 95 Theses:

not

And then, one decade ago last month, I started ProjectVRM, because that clue wasn’t yet true. Our reach did not exceed the grasp of marketers in the world. If anything, the Net extended marketers’ grasp a lot more than it did ours. (Shoshana Zuboff says their grasp has metastasized into surveillance capitalism. ) In respect to Gibson’s Law, Cluetrain proclaimed an arrived future that was not yet distributed. Our job was to distribute it.

Which we have. And we can start to see results such as those above. So let’s call Phase One a done thing. And start thinking about Phase Two, whatever it will be.

To get that work rolling, here are a few summary facts about ProjectVRM and related efforts.

First, the project itself could hardly be more lightweight, at least administratively. It consists of:

Second, we have a spin-off: Customer Commons, which will do for personal terms of engagement (one each of us can assert online) what Creative Commons (another Berkman-Klein spinoff) did for copyright.

Third, we have a list of many dozens of developers, which seem to be concentrated in Europe and Australia/New Zealand.  Two reasons for that, both speculative:

  1. Privacy. The concept is much more highly sensitive and evolved in Europe than in the U.S. The reason we most often get goes, “Some of our governments once kept detailed records of people, and those records were used to track down and kill many of them.” There are also more evolved laws respecting privacy. In Australia there have been privacy laws for several years requiring those collecting data about individuals to make it available to them, in forms the individual specifies. And in Europe there is the General Data Protection Regulation, which will impose severe penalties for unwelcome data gathering from individuals, starting in 2018.
  2. Enlightened investment. Meaning investors who want a startup to make a positive difference in the world, and not just give them a unicorn to ride out some exit. (Which seems to have become the default model in the U.S., especially Silicon Valley.)

What we lack is research. And by we I mean the world, and not just ProjectVRM.

Research is normally the first duty of a project at the Berkman Klein Center, which is chartered as a research organization. Research was ProjectVRM’s last duty, however, because we had nothing to research at first. Or, frankly, until now. That’s why we were defined as a development & research project rather than the reverse.

Where and how research on VRM and related efforts happens is a wide-open question. What matters is that it needs to be done, starting soon, while the “before” state still prevails in most of the world, and the future is still on its way in delivery trucks. Who does that research matters far less than the research itself.

So we are poised at a transitional point now. Let the conversations about Phase Two commence.

VRM at MyData2016

mydata2016-image

As it happens I’m in Helsinki right now, for MyData2016, where I’ll be speaking on Thursday morning. My topic: The Power of the Individual. There is also a hackathon (led by DataBusiness.fi) going on during the show, starting at 4pm (local time) today. In no order of priority, here are just some of the subjects and players I’ll be dealing with,  talking to, and talking up (much as I can):

Please let me know what others belong on this list. And see you at the show.

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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 .

IoT & IoM next week at IIW

blockchain1

(This post was updated and given a new headline on 20 April 2016.)

In  The Compuserve of Things, Phil Windley issues this call to action:

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?

In other words, an Internet of Me (#IoM) and My Things. Meaning things we own that belong to us, under our control, and not puppeted by giant companies using them to snarf up data about our lives. Which is the  #IoT status quo today.

A great place to work on that is  IIW— the Internet Identity Workshop , which takes place next Tuesday-Thursday, April 26-28,  at the Computer History Museum in Silicon Valley. Phil and I co-organize it with Kaliya Hamlin.

To be discussed, among other things, is personal privacy, secured in distributed and crypto-secured sovereign personal spaces on your personal devices. Possibly using blockchains, or approaches like it.

So here is a list of some topics, code bases and approaches I’d love to see pushed forward at IIW:

  • OneName is “blockchain identity.”
  • Blockstack is a “decentralized DNS for blockchain applications” that “gives you fast, secure, and easy-to-use DNS, PKI, and identity management on the blockchain.” More: “When you run a Blockstack node, you join this network, which is more secure by design than traditional DNS systems and identity systems. This  is because the system’s registry and its records are secured by an underlying blockchain, which is extremely resilient against tampering and control. In the registry that makes up Blockstack, each of the names has an owner, represented by a cryptographic keypair, and is associated with instructions for how DNS resolvers and other software should resolve the name.” Here’s the academic paper explaining it.
  • The Blockstack Community is “a group of blockchain companies and nonprofits coming together to define and develop a set of software protocols and tools to serve as a common backend for blockchain-powered decentralized applications.” Pull quote: “For example, a developer could use Blockstack to develop a new web architecture which uses Blockstack to host and name websites, decentralizing web publishing and circumventing the traditional DNS and web hosting systems. Similarly, an application could be developed which uses Blockstack to host media files and provide a way to tag them with attribution information so they’re easy to find and link together, creating a decentralized alternative to popular video streaming or image sharing websites. These examples help to demonstrate the powerful potential of Blockstack to fundamentally change the way modern applications are built by removing the need for a “trusted third party” to host applications, and by giving users more control.” More here.
  • IPFS (short for InterPlanetary File System) is a “peer to peer hypermedia protocol” that “enables the creation of completely distributed applications.”
  • OpenBazaar is “an open peer to peer marketplace.” How it works: “you download and install a program on your computer that directly connects you to other people looking to buy and sell goods and services with you.” More here and here.
  • Mediachain, from Mine, has this goal: “to unbundle identity & distribution.” More here and here.
  • telehash is “a lightweight interoperable protocol with strong encryption to enable mesh networking across multiple transports and platforms,” from @Jeremie Miller and other friends who gave us jabber/xmpp.
  • Etherium is “a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.”
  • Keybase is a way to “get a public key, safely, starting just with someone’s social media username(s).”
  • ____________ (your project here — tell me by mail or in the comments and I’ll add it)

In tweet-speak, that would be @BlockstackOrg, @IPFS, @OpenBazaar, @OneName, @Telehash, @Mine_Labs #Mediachain, and @IBMIVB #ADEPT

On the big company side, dig what IBM’s Institute for Business Value  is doing with “empowering the edge.” While you’re there, download Empowering the edge: Practical insights on a decentralized Internet of Things. Also go to Device Democracy: Saving the Future of the Internet of Things — and then download the paper by the same name, which includes this graphic here:

ibm-pyramid

Put personal autonomy in that top triangle and you’ll have a fine model for VRM development as well. (It’s also nice to see Why we need first person technologies on the Net , published here in 2014, sourced in that same paper.)

Ideally, we would have people from all the projects above at IIW. For those not already familiar with it, IIW is a three-day unconference, meaning it’s all breakouts, with topics chosen by participants, entirely for the purpose of getting like-minded do-ers together to move their work forward. IIW has been doing that for many causes and projects since the first one, in 2005.

Register for IIW here: https://iiw22.eventbrite.com/.

Also register, if you can, for VRM Day: https://vrmday2016a.eventbrite.com/. That’s when we prep for the next three days at IIW. The main focus for this VRM Day is here.

Bonus link: David Siegel‘s Decentralization.

 

 

 

What if we don’t need advertising at all?

advertisinggraveI’m serious.

Answer this question: Would you pay for any publication that is only advertising? If not, Do you believe advertising adds or subtracts value from the media it funds?

It depends, right? Ads add value to The New Yorker, Vogue, Brides, Guns & Ammo and the Super Bowl. Readers and viewers actually like the ads that show up in those places. In some others, well, kinda. As for the rest? No.

The rest rounds to everything. The italicized items in the paragraph above are exceptions to a  rule that is yucky in the extreme, especially on the Web and (increasingly) on our mobile devices.

So let’s say we normalize supply and demand to the Internet, which puts a giant zero — no distance — between everybody and everything.  All that should stand between any two entities on the Net are manners, permission and convenience. Any company and any customer should be able to connect with any other, without an intermediary, any time and in any way they both want — provided agreements and methods for doing that are worked out.

So far they aren’t, and that’s the reason we have so much icky advertising on the Web and on our phones: most of the pushers have no manners, and there are no mutually accepted ways to allow or deny permission for being bothered, so those being bothered have responded with ad and tracking blockers. In other words, in the absence of manners, we’ve created an inconvenience.

Naturally, publishers, agencies and ad industry associations are crying foul, but too bad. Blocking  that shit reduces friction and  feels good. (Thank you, Bob Garfield, for both of those.)

What we need next are better ways for demand and supply to inform and connect. Not just better ways to pay for media. (That would be nice, but media have mostly been a one-way channel for informing, and at best a secondary way to connect.)

Think about what will happen to markets when any one of us can intentcast our needs for products or services, and do so easily and in standard ways that any supplier can understand. Then think about what will happen when any company can inform existing or potential customers directly, without the intermediation of the media we know today — and with clear and well-understood permissions for doing that on both sides.

The result will be the intention economy, which will work far better for demand and supply than the attention economy we have today, simply because there will be so many more and better ways to inform and connect, in both directions.

Asking today’s media to give us the intention economy is like asking AM radio to give us cellular telephony.

They can’t, and they won’t. At best they’ll serve the remaining needs of the attention economy: namely, old-fashioned Madison Avenue type branding, like we get from the best ads in the Super Bowl and in your better print magazines. This is the wheat I talk about in Separating Advertising’s Wheat and Chaff, and that Don Marti calls “signalful” advertising. Maybe that stuff will be with us forever. For the sake of the good things they fund, I hope so.

But I don’t know, because I’m sure if we zero-base the intention economy in our new all-digital world, it is unlikely that we’ll invent any of the media we have today.

It would be easy to call the intention economy utopian hogwash, and I expect some comments to say as much. But one could have said the same thing about personal computing in 1973, the Internet in 1983 and smartphones in 1993. All of those were unthinkable at those points in history, yet inevitable in retrospect.

The fact is, we are now in a digital world as well as an analog one. That alone rewrites the future in a huge way. Digital itself is the only medium, and the whole environment. It’s also us, whether we like it or not. We are digital as well as cellular.

In the past we put up with being annoyed and yelled at by advertising. And now we’re putting up with being spied on and guessed at, personally, as well. But we don’t have to put up with any of it any more. That’s another thing digital life makes possible, even if we haven’t taken the measures yet. The limits of invention are a lot farther out on the Giant Zero than they ever were in the old analog world where today’s media — including  digital ones following analog models — were born.

Advertising is an analog thing. The arguments for its survival in the digital world need to be ones that start with demand. Is it something we want? Because we’ll get what we want. Sooner or later, we’ll have the digital versions of clothing and shelter (aka privacy), of terms and permissions, of ways to signal our intentions. If advertising fits in there somewhere, great. If not, R.I.P.

 

 

 

 

 

 

 

 

 

 

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):

Privacy isn’t about secrecy and freedom isn’t about license. Both are about agency.

Agency is the power to act with effect in the world. We have agency when we type on a keyboard, hammer a nail, ride a horse or drive a car.  Here’s a dictionary definition:

a·gen·cy (ā′jən-sē)
noun.

  1. The condition of being in action; operation.
  2. The means or mode of acting; instrumentality.

It is derived from agere: Latin for to do.

We are built to do a lot: with our brains, our opposable thumbs, our lack of fur, our capacity to sweat and to learn — and our strange ability to walk or run on two feet instead of four (almost ceaselessly, at least when we are young and fit) — we can do an amazing variety of things with our bodies.

For what we can’t do, we invent tools and machines. These extend our agency outward through technology. A hammer becomes another length of arm. With one in our hand, we have the power to drive nails with a metal fist. A car gives us an engine and wheels, so we can zoom down roads at dozens of miles (or kilometers) per hour. A plane gives us engines and wings, so we can fly far and high.  Each expands our agency to distant horizons of effect and experience in the world.

Infrastructure and services expand what each and all of us can do as well. But at the base of human capacity is the individual’s ability to do stuff in the world. Or, in a word, agency.

Which brings me to the second world we built alongside the physical one we all share. That second world is the Internet: a Giant Zero shaped by an oddly simple protocol: TCP/IP. Never mind how it works. Just note what it does: reduce to zero the functional distance between everything and everybody on it. Also the cost.

As a way to expand human agency, the Internet has no rivals. It gives all our voices, all our ideas, all our actions, worldwide scale. Any of us can speak, write, publish and much more, across any distance, at levels of inconvenience and cost that veer toward zero.

And we’ve been doing that, routinely, ever since the Internet assumed its current form. (That happened in April 1995, when the NSFnet‘s backbone — one network within the Internet — was decommissioned and commercial activity, which the NSFnet forbade, could begin to flourish across the whole Net.)

The Net has an end-to-end architecture. Every body and every thing is an end point, and the Net’s protocol does its best to move data between any and all of those. This is what Paul Baran, one of the Net’s fathers, described as a distributed design, rather than a centralized or decentralized one. Here is how he illustrated the difference, way back in 1962:

Paul Baran, On Distributed Communications Networks, 1962

And that became the Net’s basic design. Or at least its ideal.

Yet, for the sake of convenience — especially in the early days of the Net, when most of us were still on dial-up — we defaulted to a client-server architecture for deploying servers and services. With client-server, each server is a central point, which makes the Net, in a practical sense, a decentralized thing, rather than a distributed one.

And yet the distributed nature of the Net persists, grounding our agency in the world it defines.

Conflicts between centralized, decentralized and distributed capacities on the Net — and uneven development of tools and services enlarging our agency — are behind many of our crises on the Net today.

Take privacy for example. It’s a huge issue. Survey after survey (e.g. from Pew, TRUSTe and Customer Commons) say that 90% and more of us are concerned about personal privacy on the Net, don’t trust many service providers, or lie and hide to obscure personal identity. Advertising and tracking blockers are the most popular browser extensions, and with good reason: we are still naked on the Net.

That’s because the Net, like nature in the physical world, doesn’t come with privacy installed. We have to make it for ourselves. In the physical world we did it by inventing clothing and shelter. In the virtual world we still don’t have either. Tracking blockers are fig leaves at best. They also all work differently. We are still in early times.

Since we have no privacy yet (other than by staying off the Net, or by isolating ourselves on it by declining to accept cookies and staying away from services such as Google’s and Facebook’s), we tend to think about privacy in terms of secrets: things we don’t want others to know about us. But think instead about what we do to create privacy in the physical world, with clothing and shelter. Both do more than cover our bodies and and our lives. We express both. We also express with them. Our clothing and shelter send signals about ourselves. They speak of our tastes, our gender, our status, our memberships. Most of these speakings are subtle, but many are not. What matters is that they all valve our exposure to others. Buttons and zippers on our clothes speak of what can, can’t and shouldn’t be opened by others, without permission. Doors, shades and shutters on our homes do the same.

All of those things facilitate our agency. We need the same in the networked world.

The main difference is that we’ve had thousands of years to work them out in the physical world, and just twenty in the networked one. In the history of civilization, and even of business, this is close to nothing. We’re barely started.

There will, inevitably, emerge a symbiosis between centralized, decentralized and distributed capacities. Brian Behlendorf uses the term “minimum viable centralization” to label what we’re looking for here. Meanwhile we have maximum viable centralization on a network that is also distributed by design. Just like the humans on it.

We are seeing today a collapse of intermediary institutions. Publishing (e.g. blogs) Hospitality (e.g. Airbnb), dispatch (e.g. Uber), broadcast (e.g. Meerkat and Periscope) and payments (e.g.  Bitcoin) come quickly to mind, and many more are coming along. Yet through all of those there must remain some degree of trust in the graces that institutions — governments and companies — alone can provide. How can their minimum viable agencies help us enlarge our own? That’s the main challenge for the coming years.

The question we need to ask, as we address that challenge through VRM, is this: What is best done by the individual, and what is best done by the institution — and how an the two work together?

To answer that, agency must be key. Without it we’ll only get more centralized BS to distrust.

 

 

 

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