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A Coachella “Fail-ble”: Do We Hold Spectrum in Common?

By - April 18, 2012

Neon Indian at Coachella last weekend.

 

Last weekend I had the distinct pleasure of taking two days off the grid and heading to a music festival called Coachella. Now, when I say “off the grid,” I mean time away from my normal work life (yes, I tend to work a bit on the weekends), and my normal family life (I usually reserve the balance of weekends for family, this was the first couple of days “alone” I’ve had in more than a year.)

What I most certainly did not want to be was off the information grid – the data lifeline that all of us so presumptively leverage through our digital devices. But for the entire time I was at the festival, unfortunately, that’s exactly what happened – to me, and to most of the 85,000 or so other people trying to use their smartphones while at the show.

I’m not writing this post to blame AT&T (my carrier), or Verizon, or the producers of Coachella, though each have some part to play in the failure that occurred last weekend (and most likely will occur again this weekend, when Coachella produces its second of two festival weekends). Rather, I’m deeply interested in how this story came about, why it matters, and what, if anything, can be done about it.

First, let’s set some assumptions. When tens of thousands of young people (the average age of a Coachella fan is in the mid to low 20s) gather in any one place in the United States, it’s a safe bet these things are true:

– Nearly everyone has a smartphone in their possession.

– Nearly everyone plans on using that smartphone to connect with friends at the show, as well as to record, share, and amplify the experience they are having while at the event.

– Nearly everyone knows that service at large events is awful, yet they hope their phone will work, at least some of the time. Perhaps a cash-rich sponsor will pay to bring in extra bandwidth, or maybe the promoter will spring for it out of the profit from ticket sales. Regardless, they expect some service delays, and plan on using low-bandwidth texting services more than they’d like to.

– Nearly everyone leaves a show like Coachella unhappy with their service provider, and unable to truly express themselves in ways they wished they could. Those ways might include, in no particular order: Communicating with friends so as to meet up (“See you at the Outdoor stage, right side middle, for Grace Potter!”), tweeting or Facebooking a message to followers (“Neon Indian is killing it right now!”), checking in on Foursquare or any other location service so as to gain value in a social game (or in my case, to create digital breadcrumbs to remind me who I was once in hit dotage), uploading photos to any number of social photo services like Instagram, or using new, music-specific apps like TastemakerX on a whim (“I’d like to buy 100 shares of Yuck, those guys just blew me away!”). Oh, and it’d be nice to make a phone call home if you need to.

But for the most part, I and all my friends were unable to do any of these things at Coachella last weekend, at least not in real time. I felt as if I was drinking from a very thin, very clogged cocktail straw. Data service was simply non existent onsite. Texts came in, but more often than not they were timeshifted: I’d get ten texts delivered some 20 minutes after they were sent. And phone service was about as good as it is on Sand Hill Road – spotty, prone to drops, and often just not available. I did manage to get some data service while at the show, but that was because I found a press tent and logged onto the local wifi network there, or I “tricked” my phone into thinking it was logging onto the network for the first time (by turning “airplane mode” off and on over and over again).

This all left me wondering – what if? What if there was an open pipe, both up and down, that could handle all that traffic? What if everyone who came to the show knew that pipe would be open, and work? What kind of value would have been created had that been the case? How much more data would have populated the world, how much richer would literally millions of people’s lives been for seeing the joyful expressions of their friends as they engaged in a wonderful experience? How much more learning might have countless startups gathered, had they been able to truly capture the real time intentions of their customers at such an event?

In short, how much have we lost as a society because we’ve failed to solve our own bandwidth problems?

I know, it’s just a rock festival, and jeez Battelle, shut off your phone and just dance, right? OK, I get that, I trust me, I did dance, a lot. But I also like to take a minute here or there to connect to the people I love, or who follow me, and share with them my passions and my excitement. We are becoming a digital society, to pretend otherwise is to ignore reality. And with very few exceptions, it was just not possible to intermingle the digital and the physical at Coachella. (I did hear reports that folks with Verizon were having better luck, but that probably because there were fewer Verizon iPhones than those with AT&T. And think about that language – “luck”?!).

Way back in 2008, when the iPhone was new and Instagram was a gleam in Kevin Systrom’s eye, I was involved in creating a service called CrowdFire. It was a way for fans at a festival (the first was Outside Lands) to share photos, tweets, and texts in a location and event specific way. I’ve always rued our decision to not spin CrowdFire out as a separate company, but regardless, my main memory of the service was how crippled it was due to bandwidth failure. It was actually better than Coachella, but not by much. So in four years, we’ve managed to go backwards when it comes to this problem.

Of course, the amount of data we’re using has exploded, so credit to the carriers for doing their best to keep up. But can they get to the promised land? I wonder, at least under the current system of economic incentives we’ve adopted in the United States. Sure, there will always be traffic jams, but have we really thought through the best approach to how we execute “the Internet in the sky?”

Put another way, do we not hold the ability to share who we are, our very digital reflections, as a commons to which all of us should have equal access?

As I was driving to the festival last Saturday, I engaged in a conversation with one of my fellow passengers about this subject. What do we, as a society, hold in commons, and where do digital services fit in, if at all?

Well, we were driving to Coachella on city roads, held in commons through municipalities, for one. And we then got on Interstate 10 for a few miles, which is held in commons by federal agencies in conjunction with local governments. So it’s pretty clear we have, as a society, made the decision that the infrastructure for the transport of atoms – whether they be cars and the humans in them, or trucks and the commercial goods within them – is held in a public commons.Sure, we hit some traffic, but it wasn’t that bad, and there were ways to route around it.

What else do we hold in a commons? We ticked off the list of stuff upon we depend – the transportation of water and power to our homes and our businesses, for example. Those certainly are (mostly) held in the public commons as well.

So it’s pretty clear that over the course of time, we’ve decided that when it comes to moving ourselves around, and making sure we have power and water, we’re OK with the government managing the infrastructure. But what of bits? What of “ourselves” as expressed digitally?

For the “hardwired” Internet – the place that gave us the Web, Google, Facebook, et al, we built upon what was arguably a publicly common infrastructure. Thanks to government and social normative regulation, the hard-wired Internet was architected to be open to all, with a commercial imperative that insured bandwidth issues were addressed in a reasonable fashion (Cisco, Comcast, etc.).

But with wireless, we’ve taken what is a public asset – radio spectrum – and we’ve licensed it to private companies under a thicket of regulatory oversight. And without laying blame – there’s probably plenty of it to go around – we’ve proceeded to make a mess of it. What we have here, it seems to me, is a failure. Is it a market failure – which usual preceeds government action? I’m not sure that’s the case. But it’s a fail, nevertheless. I’d like to get smarter on this issue, even though the prospect of it makes my head hurt.

As I wrote yesterday, I recently spent some time in Washington DC, and sat down with the Obama administration’s point person on that question, FCC Chair Julius Genachowski. As I expected, the issue of spectrum allocation is extraordinarily complicated, and it’s unlikely we’ll find a way out of the “Coachella Fail-ble” anytime soon. But there is hope. Technological disruption is one way – watch the “white spaces,” for instance. And in a world where marketing claims to be “the fastest” spur customer switching, our carriers are madly scrambling to upgrade their networks. Yet in the US, wireless speeds are far below those of countries in Europe and Asia.

I plan on finding out more as I report, but I may as well ask you, my smarter readers: Why is this the case? And does it have anything to do with what those other countries consider to be held in “digital commons”?

I’ll readily admit I’m simply a journeyman asking questions here, not a firebrand looking to lay blame. I understand this is a complicated topic, but it’s one for which I’d love your input and guidance.

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What Doesn’t the Valley Understand About Washington?

By - April 17, 2012

A few weeks ago I ventured to our nation’s capital to steep in its culture a bit, and get some first hand reporting done for the book. I met with about a dozen or so folks, including several scholars, the heads of the FCC and FTC, and senior folks in the Departments of Commerce and State. I also spoke to a lobbyist from the Internet industry, as well as people from various “think tanks” that populate the city. It was my first such trip, but it certainly won’t be my last.

Each of the conversations was specific to the person I was interviewing, but I did employ one device to tie them together – I asked each person the same set of questions toward the end of the conversation. And as I was on the plane home, I wrote myself a little reminder to post about the most interesting set of answers I got, which was to this simple question: What doesn’t the Valley understand about Washington?

It’s not a secret that the Valley, as a whole, has an ambivalent attitude toward DC. Until recently, the prevailing philosophy has trended libertarian – just stay out of the way, please, and let us do what we do best. Just about every startup CEO I’ve ever known – including myself – ignores Washington in the early years of a company’s lifecycle. Government is treated like plumbing – it’s dirty, it costs too much, it’s preferably someone else’s job, and it’s ignored until it stops working the way we want it to.

SOPA and PIPA is the classic example of the plumbing going out – and the Internet’s response to it was the topic of much of my conversations last month. Sure, “we” managed to stop some stupid legislation from passing, but the fact is, we almost missed it, and Lord knows what else we’re missing due to our refusal to truly engage with the instrument of our shared governance.

To be fair, in the past few years a number of major Internet companies have gotten very serious about joining the conversation in DC – Google is perhaps the most serious of them all (I’m not counting Micrsoft, which got pretty serious back in 1997 when it lost an antitrust suit). Now, one can argue that like Microsoft before it, Google’s seriousness is due to how interested Washington has become in Google, but regardless, it was interesting to hear from source after source how they respected Google for at least fully staffing a presence in DC.

Other large Internet companies also have offices in Washington, but from what I hear, they are not that effective beyond very narrow areas of interest. Two of the largest e-commerce companies in the world have a sum total of eight people in DC, I was told by a well-placed source. Eight people can’t get much done when you’re dealing with regulatory frameworks around fraud, intellectual property, international trade, infrastructure and spectrum policy, and countless other areas of regulation that matter to the Internet.

In short, and perhaps predictably, nearly everyone I spoke to in Washington told me that the Valley’s number one issue was its lack of engagement with the government. But the answers were far more varied and interesting than that simple statement. Here they are, without attribution, as most of my conversations were on background pending clearance of actual quotes for the book:

– The Valley doesn’t understand the threat that comes from Washington. Put another way, our industry figures it out too late. The Valley doesn’t understand how much skin it already has in the game. “When things are bent in the right direction here, it can be a really good thing,” one highly placed government source told me. Washington is “dismissed, and when it’s dismissed you neither realize the upside nor mitigate the downside.”

– When the Valley does engage, it’s too lightly, and too predictably. Larger Valley companies get an office on K Street (where the lobbyists live) and hire an ex-Congressperson to lobby on that company’s core issues. But “that’s not where the magic is,” one source told me. The real magic is for companies to use their own platforms to engage with their customers in authentic conversations that get the attention of lawmakers. This happened – albeit very late – with SOPA/PIPA, and it got everyone’s attention in Washington. Imagine if this was an ongoing conversation, and not a one-off “Chicken Little” scenario?  Counter to what many believe about Washington, where money and lobbying connections are presumed to always win the day, “Fact-based arguments matter, a lot,” one senior policymaker told me. “Fact-based debates occur here, every day. If you take yourself out of that conversation, it’s like going into litigation without a lawyer.” Internet companies are uniquely positioned to change the approach to how lawmakers “hear” their constituents, but have done very little to actually leverage that fact.

– The Valley is too obsessed with the issue of privacy, one scholar told me. Instead, it should look to regulations around whether or not harm is being done to consumers. This was an interesting insight – and perhaps a way to think about protecting our data and our identities. There are already a thicket of regulations and law around keeping consumers safe from the harmful effects of business practices. Perhaps we are paying attention to the wrong thing, this scholar suggested.

– The Valley assumes that bad legislation will be rooted out and defeated in the same way that SOPA and PIPA were. But that’s a faulty assumption. “The Valley is techno-deterministic, and presumes ‘we can engineer around it,'” one scholar told me. “They don’t realize they’ve already been blinkered – a subset of possible new technological possibilities has already been removed that they are not even aware of.” One example of this is the recent “white spaces” spectrum allocation, which while promising avenues of new market opportunity, was severely retarded by forces in Washington far more powerful than the Internet industry (more on this in another post).

– The framework of “us vs. them” is unproductive and produces poor results. The prevailing mentality in the valley, one well-connected scholar told me, is the “heroic techie versus the wicked regulator…Rather than just having libertarian abstractions about regulations versus freedom,” this source continued,  “it’s important to realize that in every single debate there are… regulations that strike better or worse balances between competing values. You just have to engage enough to defend the good ones.”

Put another way, as another senior government official told me, “The Valley doesn’t understand there are good and decent people here who really want to get things done.”

If I were to sum up the message from all my conversations in Washington, it’d be this: We’re here because as a society, we decided we needed people to help manage values we hold in common. Increasingly, the Internet is how we express those values. So stop ignoring us and hoping we’ll go away, and start engaging with us more. Decidedly better results will occur if you do.

I don’t pretend that one trip to DC makes me an expert on the subject (it surely does not), but I left DC energized and wanting to engage more than I have in the past. I hope you’ll feel the same.

(image: traveldk.com)

On Larry Page’s Letter: Super Amazing Great Tremendous!

By - April 09, 2012

(I promised a bit more color commentary on Larry Page’s 3500-word missive posted last week, and after reading it over a few more times, it seems worth the time to keep that promise. I wrote this last weekend, but am on vacation, so just posting it now…)

It’s not often you get a document such as this to analyze – the last time I can recall is Google’s feisty 2004 letter to shareholders written on the eve of its IPO.

Well, eight years in, the feisty has taken a back seat to the practical, the explicative, and the … nice! The first thing I noticed were the exclamation points – Larry uses one in the second sentence, then keeps on exclaiming – 11 times, in fact. Now, I don’t know Larry Page very well, but he just doesn’t seem the type to use exclamation points. Seeing so many of them felt….off. Also, the letter had a very “softer side of Sears” feel to it, the language itself was rounded, not quite defensive (as it might have been given the news lately), but also not pointed.

Clearly, this was a new Larry – Larry in a sweater vest, so to speak. As a lover of language, I wanted to see if there were any interesting patterns, so for ease of analysis, I decided to cut and paste it into a Word doc (sorry, Google Docs, old habits die hard. Something that the Bing team knows well…).

Larry uses variations of the word “love” eight times in his post. Beautiful is used three times. “Great” gets a workout: it’s used 14 times. “Excited about” gets five. “You can,” 10, “We have,” 12. “Search” gets 22 mentions, “Google,” 32, “people,” 28.  “Users” gets 18 – I’ve always hated that word. Android is mentioned 13 times, though it doesn’t seem to be nearly as important in the document as Google+, which merits 9 mentions, slightly lower than “revenue,” which comes in at 10.

But what really strikes me is how, well, nice the language is. So many nice words – beautiful, share, improve, healthy, better, like, important, great, well, tremendous, believe, enable, best – all of these words are used at least three times, often more than ten.

I’m not saying it’s wrong to be so darn nice, it just doesn’t feel like it’s truly Page’s voice. It feels more written by committee. It lacks the zest and attitude of Page’s 2004 missive – but then again, Google has a lot more on its plate now, and a lot more to lose.

Then again, there are some zingers in there, even if they are wearing sweaters. Page makes a point of showing how the Android and YouTube acquisitions worked out in the end, a veiled (or vested?!) defense of Google’s Motorola deal. And while the word “evil” is only used once, I find it very, very interesting it was used at all. For a while, it seemed Google was backing off its unofficial slogan of “Don’t be evil.” But in the letter, up it pops, though again, with its shoulders rounded: “We have always believed that it’s possible to make money without being evil,” Page writes. Then he goes into an anecdote about why revenue is necessary, starring his tragic hero Nikola Tesla.

Oddly, for a letter that is reputedly written for investors, Page never mentions Google’s stock price, which hasn’t exactly beaten the Nasdaq lately, but it hasn’t lagged, either.

In the end, the letter is a long, rambling walk through a familiar suburb. Nice, but…well, just that, nice. Maybe I was hoping that Page would come out swinging, defending Google against all the recent slings and arrows, pointedly explaining why it makes sense to combine privacy policies, integrate Google+ into search, and buy Motorola. But that’s clearly not his (public) style. I’m guessing in private, there’s a bit more fire in his pen.

Facebook Buys Instagram, Checks Off A Swath of 2012 Predictions In One Move

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Waaaay back in January, I rolled out my annual predictions. Thanks to our pals at Facebook, a few of them are now pretty much in the bag. I may have to start doing these things monthly, given the pace of our industry.

Prediction #5 was that it’d be a big year for Internet M&A. I further singled out Instagram as a company that would likely be bought, and figured there’d be a battle between Twitter, Apple, Facebook, and Google for the prize. Facebook won, with a billion dollar price tag. That checks box number seven, which predicted, among other things, that Facebook would make a billion dollar acquisition. FWIW, I also predicted Google would have a rough year (so far, seems that way) and that a heads up display would emerge (Google did that as well).

Facebook says it’s going to leave Instagram alone for the most part, but I don’t expect that to last that long. The most interesting part of the announcement for me was Zuckerberg’s promise to “learn” from Instagram’s integration with other social services. I wonder if that will hold. In any case, congrats to the team at Instagram, who presented just last month at our Signal SF event. Who might be next? Perhaps they’re presenting at our event next month in NYC…

Larry Page Makes His Case

By - April 05, 2012

Given the headlines, questions, and legal actions Google has faced recently, many folks, including myself, have been wondering when Google’s CEO Larry Page would take a more public stance in outlining his vision for the company.

Well, today marks a shift of sorts, with the publication of a lenthy blog post from Larry titled, quite uninterestingly, 2012 Update from the CEO.

I’ve spent the past two days at Amazon and Microsoft, two Google competitors (and partners), and am just wrapping up a last meeting. I hope to read Page’s post closely and give you some analysis as soon as I can. Meanwhile, a few top line thoughts and points:

– Page pushes Google+ as a success, citing more than 100 million users, but still doesn’t address the question of whether the service is truly being used organically, rather than as a byproduct of interactions with other Google products. I’m not sure it matters, but it’s a question many have raised. He also doesn’t address, directly, the tempest over the integration of G+ into search.

– Page also does not directly address the issue of FTC privacy investigations into the company, not surprising, given any company’s response to these investigations is usually “no comment.” However, Google might have explained with a bit more gusto the reasons for its recent changes.

– Page tosses out another big number, this one around Android: 850K activations a day. Take that, Apple!

– Page uses the words “love” and “beauty” – which I find both refreshing and odd.

– Page also talks about making big bets, focusing on fewer products, and how it’s OK to not be exactly sure how big bets are going to make money. This is a topic where Google has a ton of experience, to be sure.

More when I get out of my last meeting….

Architectures of Control: Harvard, Facebook, and the Chicago School

By - April 02, 2012

Early in Lessig’s “Code v2,” which at some point this week I hope to review in full, Lessig compares the early campus networks of two famous educational institutions. Lessig knew them well – in the mid 1990s, he taught at both Harvard and the University of Chicago. Like most universities, Harvard and Chicago provided Internet access to their students. But they took quite different approaches to doing so. True to its philosophy of free and anonymous speech, Chicago simply offered an open connection to its students – plug in anywhere on campus, and start using the net.

Harvard’s approach was the polar opposite, as Lessig explains:

At Harvard, the rules are different….You cannot plug your machine to the Net at Harvard unless the machine is registered – licensed, approved, verified. Only members of the university community can register their machines. Once registered, all interactions with the network are monitored and identified to a particular machine. To join the network, users have to “sign” a user agreement. The agreement acknowledges this pervasive practice of monitoring. Anonymous speech on this network is not permitted – it is against the rules. Acceess can be controlled based on who you are, and interactions can be traced based on what you did.

In the preceding paragraph, change “Harvard” and “university” to “Facebook” and – there you have it. Facebook was the product of a Harvard mindset – and probably could never have come from a place like Chicago or Berkeley (where I taught).

I called up Harvard’s IT department to see if the policy had changed since Lessig’s experiences in the 1990s, or Mark Zuckerbeg’s six or so years ago. The answer was no – machines still must be registered, and all actions across Harvard’s network are trackable.

There are many benefits associated with a “real names” identity policy, including personalized services and a far greater likelihood of civil discourse. But the reverse is also true: without the right to speak anonymously (or pseudonymously), dissent and exploration are often muted. And of course, there’s that tracking/monitoring/data issue as well…

In Code, Lessig goes on to predict that while the original Internet began with a very Chicago-like approach to the world, architectures of regulation and control will ultimately end up winning if we don’t pay close attention.

He wrote the original Code in 1999, and updated it in 2006. The word Facebook is not in either version of the text. Just thought that a curious anecdote worth sharing.

The Yin and Yang of Audience

By - March 15, 2012

(image) The Signal San Francisco conference is less than a week away, so I thought I’d take the time to explain my reasoning for the theme, and offer a curtain raiser of sorts on the day-long program. (PS, I have ten, and only ten, half price tickets available. Hit this link, and use the code “luckyday.”)

The theme, a portion of which is the title of this post, is “The Yin and Yang of Audience, Platforms and the Independent Web.” I do get a few eyes a-rollin’ when I frame conference themes, but hey, I can only do what I know how to do. I actually think pretty hard about this stuff, and like to take the time to outline the ideas behind the program.

So here goes. As readers know, I’ve been thinking out loud a lot about the future of the Internet, and whether the rise of “walled gardens” like Facebook and Apple’s iOS (what I call AppWorld) are ultimately the future the web. My short answer is yes….and. By that I mean that the Internet, which began as an open, gatekeeper-free platform where anyone could hang a shingle, will ultimately interconnect with these walled gardens – there’s just too much value in what I call the “ecosystem approach” for the opposite to occur. I framed two major forces driving the Internet today: The independent web (sites unaffiliated with major platforms like Google or Facebook), and the dependent web (major platforms which create a valuable “logged in” experience that changes “depending” on who you are.).

It’s our thesis that these two forces are “interdependent:”  Each depends on the other. Hence the theme.

Wikipedia defines “Yin Yang” this way:

“Yin and yang” is used to describe how polar opposites or seemingly contrary forces are interconnected and interdependent in the natural world, and how they give rise to each other in turn. Opposites thus only exist in relation to each other.

At Signal SF, we have an extraordinary lineup of speakers from both the platform world (LinkedIn, Yahoo, Google, Facebook, Twitter, Microsoft) as well as from independent publishers and service providers (Federated Media, Girl’s Gone Child, Automattic, Lijit). And of course, we have the marketers and agencies responsible for bringing these worlds together in service of their brands (Levi Strauss, AKQA,  Quantcast, Intel, Neilsen). Not to mention some really interesting startups like Instagram, One King’s Lane, PinWheel, TasteMakerX, ShareThis, and MarketShare.

In today’s marketing world, brands need to take an integrated approach to digital marketing – connecting both the passion, federated scale, and community of the independent web with the power of major dependent web services like Facebook, Google, and others. (It’s why I chose the image above for this post – put your roots in the independent web, and let your voice be heard and circulate throughout the whole Internet…)

It promises to be an engaging and smart discussion, and I hope you’ll join us for it. You can register here, or, if you’re an FM partner, email me (jbat at federatedmedia dot net), and I’ll make sure to swing you a pass. See you there!

LinkedIn, The Media Company?

By - March 13, 2012

Quick, what’s LinkedIn? If you’re like me, the first thing that comes to mind is “a professional social network.” Perhaps “a place to get a job, or find someone to fill a job.” Or maybe “the place my professional resume lives.” And certainly “a very successful Internet IPO.”

But over the two years or so, LinkedIn has quietly built itself into a significant media business. It’s added a newsfeed, status updates, and “top stories today” features. Late last month, it added “following”  as well. And I’ve begun to notice the LinkedIn share button popping up all over the web – it isn’t quite the attention engine that Twitter has become, but its power is rising. (Yep, I’ve got one on this site too).

All those media bells and whistles combine to create a robust advertising business, complete with a Facebook-like self service platform driven by your social graph. That business has been scaling right along with its core recruitment and jobs posting revenue, accounting for about a third of the company’s topline.  Given that LinkedIn added more members last year than in the prior 6 – about 60 million, for a global total of 150 million, I predict it won’t be long before LinkedIn becomes a “must buy” for any marketer who targets professionals. And that’s a lot of marketers.

It doesn’t hurt that the business has been killing it – beating Wall Street expectations and outperforming most recent Internet IPOs.

The man steering LinkedIn, CEO Jeff Weiner, will join me onstage next week at our Signal San Francisco show. We’ll have one of our trademark conversations, and I’m inviting you to help me interview him. Given Signal focuses on the media and marketing business, we’ll certainly cover off on that part of Weiner’s purview.  But what else might you want to hear from Weiner? He’s always a fun interview, and usually shares very candid opinions of other players in the Internet ecosystem (he was a top executive at Yahoo and Warner Brothers prior to joining LinkedIn).

Join us at Signal to hear Jeff, along with a killer lineup that includes Adam Bain, President of Global Revenue at Twitter, Tom Bedecarre, CEO of AKQA, Michele DiLorenzo, CEO of Jumptime, Konrad Feldman, CEO of Quantcast, Ross Levinsohn, EVP Yahoo, Alison Pincus, CEO of One Kings Lane, Kevin Systrom, CEO of Instagram, Tina Sharkey, CEO of BabyCenter, and many, many others. It’s a wonderful group, so register now!

Who Controls Our Data? A Puzzle.

By - March 11, 2012

(image) Facebook claims the data we create inside Facebook is ours – that we own it. In fact, I confirmed this last week in an interview with Facebook VP David Fischer on stage at FM’s Signal P&G conference in Cincinnati. In the conversation, I asked Fischer if we owned our own data. He said yes.

Perhaps unfairly  (I’m pretty sure Fischer is not in charge of data policy), I followed up my question with another: If we own our own data, can we therefore take it out of Facebook and give it to, say, Google, so Google can use it to personalize our search results?

Fischer pondered that question, realized its implications, and backtracked. He wasn’t sure about that, and it turns out, it’s more complicated to answer that question – as recent stories about European data requests have revealed.*

I wasn’t planning on asking Fischer that question, but I think it came up because I’ve been pondering the implications of “you as the platform” quite a bit lately. If it’s *our* data in Facebook, why can’t we take it and use it on our terms to inform other services?

Because, it turns out, regardless of any company’s claim around who owns the data, the truth is, even if we could take our data and give it to another company, it’s not clear the receiving company could do anything with it. Things just aren’t set up that way. But what if they were?

The way things stand right now, our data is an asset held by companies, who then cut deals with each other to leverage that data (and, in some cases, to bundle it up as a service to us as consumers). Microsoft has a deal to use our Facebook data on Bing, for example. And of course, the inability of Facebook and Google to cut a data sharing deal back in 2009 is one of the major reasons Google built Google+. The two sides simply could not come to terms, and that failure has driven an escalating battle between major Internet companies to lock all of us into their data silos. With the cloud, it’s only getting worse (more on that in another post).

And it’s not fair to just pick on Facebook. The question should be asked of all services, I think. At least, of all services which claim that the data we give that service is, in fact, ours (many services share ownership, which is fine with me, as long as I don’t lose my rights.)

I have a ton of pictures up on Instagram now, for example (you own your own content there, according to the service’s terms). Why can’t I “share” that data with Google or Bing, so those pictures show up in my searches? Or with Picasa, where I store most of my personal photographs?

I have a ton of data inside an app called “AllSport GPS,” which tracks my runs, rides, and hikes. Why can’t I share that with Google, or Facebook, or some yet-to-be-developed app that monitors my health and well being?

Put another way, why do I have to wait for all these companies to cut data sharing deals through their corporate development offices? Sure, I could cut and paste all my data from one to the other, but really, who wants to do that?!

In the future, I hope we’ll be our own corp dev offices. An office of one, negotiating data deals on the fly, and on our own terms. It’ll take a new architecture and a new approach to sharing, but I think it’d open up all sorts of new vectors of value creation on the web.

This is why I’m bullish on Singly and the Locker Project. They’re trying to solve a very big problem, and worse, one that most folks don’t even realize they have. Not an easy task, but an important one.

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*Thanks to European law, Facebook is making copies of users’ data available to them – but it makes exemptions that protect its intellectual property, trade secrets, and it won’t give data that “cannot be extracted from our platform in the absence of is proportionate effort.” What defines Facebook’s “trade secrets” and “intellectual property”? Well, there’s the catch. Just as with Google’s search algorithms, disclosure of the data Facebook is holding back would, in essence, destroy Facebook’s competitive edge, or so the company argues. Catch 22. I predict we’re going to see all this tested by services like Singly in the near future. 

 

On the State of Twitter Advertising: Adam Bain

By - March 06, 2012

Last week I wrote a post about Neal Mohan, who will be joining us for this month’s Signal conference in San Francisco. Today I’m focusing on Adam Bain and his role as President, Global Revenue at Twitter.

I’ve known Adam for some time, since his days at Fox Interactive Media, where he built Fox’s advertising platform (initially as a product out of MySpace). He joined Twitter a year and a half ago, and since then, has overseen the development of its “promoted” suite of products. Just recently, Twitter has expanded its roll out of what CEO Dick Costolo calls its “atomic unit” of advertising, the Promoted Tweet, to its mobile base, a significant move mirrored by Facebook at nearly the same time. It’s also opened up a self-service portal to its ad machine, a crucial move that drove early adoption of search and Facebook advertising.

When you are in charge of revenue for a company valued at $8 billion, the heat is on – the estimated $140 million or so Twitter pulled in last year ain’t gonna cut it. The company needs to scale its advertising platform to Google and Facebook levels, in terms of efficiency, response, and return on marketing investment. That’s no easy feat. In fact, it’s only been done a few times – by Facebook, Google, and arguably Overture (before Yahoo’s purchase and subsequent deal with Microsoft).

Hence last week’s Journal piece on Twitter’s attempts to woo ad giant P&G – the Journal argues that to get to billions in revenue, Twitter has to get companies like P&G to see the service as an “upfront” partner – the kind of company P&G spends with year after year.

The company has work to do, but is confident it’s figured out a path that will justify its lofty valuation. At the SF Signal conference, I’ll have a chance to sit down with Adam and discuss that path, as well as any number of other issues of interest. My question to you all – what do you think those items might be? Comments welcome, and if you’re wondering whether to come to Signal, please, register now! We’ve got quite the lineup, and we’re close to sold out.