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On Coming Back to FMP

By - February 28, 2013

Starting a business is a journey, as any founder will tell you. When I started Federated Media Publishing almost eight years ago, I did my best to collect all the lessons learned from Wired, The Industry Standard, and Web 2 Summit, and apply them to my new venture. One of those lessons was that it’s OK to step away when the time is right. Several years ago, I did just that, becoming an “active Chairman” at FMP and handing the operational reigns over to an accomplished executive, Deanna Brown.

Since making that decision, FMP has grown dramatically, but it’s also had its challenges. Last year, for example, we made the difficult but important decision to rethink the company so as to lean into our two most promising lines of business – content marketing (which we lay claim to inventing as “conversational marketing” some seven years ago) and programmatic marketing (which we invested in heavily last year, after acquiring a very fast growing business in Lijit Networks in Fall of 2011). It meant stepping back from something we had been doing for some time – directly selling standard display banners  – but it proved to be the right choice. FMP is having a great first half of 2013, and I couldn’t be more excited about our roadmap and potential for the rest of the year and beyond.

The funny thing is, even as I became “just the Chairman” at FMP over the past two years, I never stopped thinking about the company. It woke me up nearly every night, tugging at my sleeve, asking me questions, demanding my best thinking. Deanna and I would meet every week to talk strategy, review numbers, or just plain chew the fat. Running a company with hundreds of employees, top notch investors, and a big top line revenue number is damn hard, and Deanna not only ran the place, she made it hum. I am in her debt.

So when Deanna told me earlier this year that she wanted – in a thoughtful and appropriate manner – to move on and do something smaller and more directly related to content creation, I immediately understood. As I said above – it’s alright to step away when the time feels right. We spent a month or more thinking about who might be best to replace her. FMP is a unique company – straddling the two fastest-growing sectors of the digital marketing world:  Native content marketing, and programmatic platforms. There aren’t many executives who are fluent in both, and who also might be a cultural fit for a company as storied as this one.

And then it hit me – quite literally in mid-sentence while on a Board call. Why the hell don’t I simply step back in? I love this company, I am passionate about the Independent Web, and to be honest, I see a huge opportunity in front of us. What am I, nuts? Why didn’t I think of it the moment Deanna told me of her decision?

I think the answer lies in how we often try to convince ourselves that the choices we’ve made in the past are the right ones. I agonized about leaving the CEO’s chair, and I’ve spent the two years since then convincing myself (and many of you) that the right path for me was writing a book , running various conferences, and ruminating on what the “next big thing” might be.

But I’ve come to realize that it’s OK to change your mind, as long as you are following your heart. I love the book I’m working on, and I don’t plan to abandon it (I’m bringing on a co-author). And I love the conferences I do, and I’ll still be doing them (though I’ll be hiring someone to run them full time). But my first love is the company I started in 2005, whose story is not only unfinished, it’s at the height of its running narrative. I am utterly convinced that the media company of tomorrow will have both a technology-driven programmatic foundation, as well as the ability to execute bespoke, beautiful ideas on behalf of the entire media ecosystem – creators, marketers, and communities. When you bring the scale and precision of data-driven platforms to the brilliance of great media executions, magic will happen. Delivering on that vision for the Independent Web is the mission of Federated Media Publishing. And I couldn’t be more excited to rejoin the company as its next CEO.

So that’s the news I have for you today. I ask for your support as I embark on this new journey – I know I’m going to need it. I promise I won’t ever stop writing here, nor will I stop asking for your feedback and your insights. And because this is probably the only time I’ll have the chance to say it in a post, I want to say thank you to Deanna Brown for what she’s done not only for Federated, but for me personally. I can’t wait to see what she does next, and, if I’m lucky, to be a partner to her next chapter. Onwards!

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An Apology To My RSS Readers – But I Had To Do It. (Updated)

By - February 22, 2013

Some random site running my last post without asking.

If you’re a fan of this site, you’re also probably a fan of RSS – a once-ascendant technology that has been on most everyone’s deathwatch for five or so years. According to Google’s (almost totally outdated) Feedburner service, nearly 450,000 people subscribe to this blog via RSS – although the number of you who actually read my posts is far smaller (according to Feedburner statistics, which I’ve never fully understood).

In any case, from time to time I’ve poked at you poor RSS readers, just to find out if you’re alive. Remember this piece – Is RSS Really Dead? Or this one – Once Again, RSS Is Dead. But ONLY YOU Can Save It!?

In those posts, I asked if my beloved RSS readers were really out there. Turns out, I got tons of comments back – a very high number given the work involved in declaring fealty to the creaky old standard. (It kind of felt like a reshoot of that wonderful final scene in Horton Hears a Who – “Everybody yell real loud, and maybe Google will hear, and not deprecate Feedburner…”  But I digress.)

I’ve always kept my RSS feed “full text” – which means the entire post, pictures, words and all, goes out over RSS, and can be picked up by any RSS reader anywhere on the planet. I always have held the belief that it’s more important that my work get distributed than monetized. But not everyone can afford such high minded principles. Many publishers cut their feed short, teasing folks with headlines and a snippet of the story in the hopes that people will click through to the site, where their visit can be properly “monetized” via advertising.

My new feed (sadface).

After much thought, I’m going to do the same. But not for the extra clicks and ads. It’s due to the fraud that’s taken over the content space in the Indpendent Web. Untold legions of bad actors use RSS to scrape “real” sites like this one, then wrap them with ads from exchanges to make a quick buck. The rise of programmatic fraud has made this even worse (see It’s Time To Call Out Fraud In The Adtech Ecosystem for more on this). And no, I’m not going to link to examples – but you can Google “Content Scraping” if you want to learn more.

So, consider this an apology. I am very sorry that you have to click a link to get to the content I make here every day. But also consider this a plea – as in, please do click that link at the top. I very much want you to be part of this conversation.

(And if enough of you complain, you know I’ll listen, and figure out some way around this).

 

UPDATE: I turned full feed back on. Thanks for all the input.

The iWatch: What I Hope Apple Actually Does (But Probably Won’t)

By - February 21, 2013

(image AppleInsider) Back in April of last year, I pondered Pebble, the then-wildly successful darling of Kickstarter fame. Pebble is a wristwatch device that connects to iPhones and displays various smart things. In the piece, Does the Pebble Cause a Ripple In Apple’s Waters?, I asked whether Apple would allow such third-party hardware to play in their backyard. It struck me Apple’s entire business was about hardware. Pebble, I figured, was in for a tough road. No wonder it went to Kickstarter, I mused. VCs would never back something so clearly in Apple’s target zone. From the post:

If you watch the video explaining Pebble, it become pretty clear that the watch is, in essence, a new form factor for the iPhone. It’s smaller, it’s more use-case defined, but that’s what it is: A smaller mirror of your iPhone, strapped to you wrist. Pebble uses bluetooth connectivity to access the iPhone’s native capabilities, and then displays data, apps, and services on its high-resolution e-paper screen. It even has its own “app store” and (upcoming) SDK/API so people can write native apps to the device.

In short, Pebble is an iPhone for your wrist. And Apple doesn’t own it.

If we’ve learned anything about Apple over the years, it’s that Apple is driven by its hardware business. It makes its profits by selling hardware – and it’s built a beautiful closed software ecosystem to insure those hardware sales. Pebble forces an interesting question: Does Apple care about new form factors for hardware? Or is it content to build out just the “core” hardware platform, and allow anyone to innovate in new hardware instances? Would Apple be cool with someone building, say, a larger form factor of the iPhone, perhaps tablet-sized, driven by your iPhone?

Fast forward to now. The month’s Apple rumors have all been about the “iWatch” – the company’s next big innovation.  Apparently reliable sources – most likely now muted thanks to Apple’s exceptional PR machine – have said that 100 people are working on the device inside Apple’s HQ. And this week came news that Apple has even filed for a patent around the concept. 

If I’m Pebble, I’m not sleeping well at night.

I have no idea if Apple will actually create such a device – though I’m certain it must be testing one.

However, if Apple really wants the device to take off, the company should incorporate more than just iPhone connectivity. Here’s my wish list:

Open platform for connectivity. Any device can connect to the device, not just iOS. I know this is wishful thinking, but…for example, Google has opted for glasses as its next big thing in wearable computing. I certainly would like the two to work together. (And how cool would it be if it worked with Android? OK, sorry. Just had to ask.)

– Sensors and software that make the device the equivalent of the Fitbit or the Jawbone Up.

Integration with those apps, so that users don’t lose their data if they want to move to Apple’s hardware platform.

– As with Pebble, an open app ecosystem for the device, not one locked down into iOS. (I know…)

– A warranty on breakage. It’s one thing to ignore the criminal cracking that happens with nearly every iPhone in existence, because you can blame the consumer for dropping the damn thing. But if this thing is on somebody’s wrist, it’s going to get smacked around. And if Apple takes the same approach to breakage as it has for the iPhone, the device will be a failure.

That’s my major wish list. What would you want from the device?

That Guilty Pile of Outdated Technology

By - February 20, 2013

(image Wired) Way back in the day when I was making magazines, I was buried in print. I subscribed to at least twenty periodicals, easily twice that many came my way without my asking. It made for a huge pile of printed material on the end of my desk (stuff I really should read), and it creeped into the horizontal spaces behind me (stuff I think I should read, in case I get the time), or on my shelves (stuff I can’t throw out yet), and the damn things even spilled onto my floor (stuff I probably will never read, but feel too guilty to toss out).

I dubbed this mountain of print The Guilt Pile. Every so often, usually when it was time to move offices, I’d take inventory of the pile, and toss most of it. It always felt so good – a fresh start, a new day, this time, I promise, I’ll not let that pile accumulate again!

Then digital took over my print life, and the pile vanished.

At least, the pile of print vanished. But a new scourge of guilt-inducing matter has now taken over my desks, shelves, and storage spaces, and I’m finding it damn near impossible to toss it out. Devices: phones, tablets, webcams, gee-gaws and dongles, power cords and hard drives – I’ve got drawers full of the stuff. And every time my eye rests upon them, I feel terribly. The device stares back at me, baleful. I somehow owe it my attention, my time and energy – I feel I’m failing at some implicit contract. It’d be simply irresponsible to toss the stuff – it’s probably full of hazardous materials, and most of it is worth something, and at the very least, I should give it to someone who can make use of it. But who? And how? Much of it is…shudder…outdated! Not to mention, many of the devices have my digital fingerprints inside – I couldn’t toss them, recycle them, or sell them without first firing them up and figuring out what’s on there, and how to transfer or erase that data before sending the item to its next phase of life.

And for a significant portion of these technological devices, I’m not even sure I could find the power cords, dongles, and accessories that would make the damn things useful in the first place. The idea of getting all this sh*t ready for sale on eBay feels like Way Too Much Work.

A quick inventory around my home office turns up a couple iPhone 4s, one with a broken home button and the other with a cracked screen, a brand new Sony Internet TV, a BlackBerry Playbook (also never used), five digital cameras of various capacities and ages, four years worth of external storage devices, each smaller and higher capacity than the one before and all obviated by the one sitting next to my Mac as I write this, three old MacBook pros, two of which I’m not sure will ever boot again due to age or infirmities of one kind or another, an old webcam, two Android tablets (the old ones, not the new one), two cracked Kindles, scores of power cords and dongles, a couple of outdated Fitbits, some older Sonos gear, two ancient Airport routers, at least six old iPods, a few feature phones from the pre smartphone era, and ten or so other gadgets (GPS, digital recorders, etc).

And that’s just what I can see. I have boxes of even older stuff in my garage.

Now, I’m probably an edge case, because I buy a lot of this stuff,  and I also go to a lot of swell conferences where they give a lot of this stuff away in the goody bags. Plus, companies sometimes send me things to evaluate (which I rarely get around to doing). But such is not the case for my son, who has a similar, if smaller, cache of technology guilt sitting up in his room right now, all of it collected over ten years of Christmases, birthdays, and allowances.

It all seems like so much work. So I ignore the growing pile of tech, hoping that at some point, someone or something will come along that will solve for my Guilt Pile. I’m not sure it ever will.

But wouldn’t it be grand if you could just sweep all of it into a big box, and send it to a service where they categorized it, valued it, listed it on eBay or gave it to charity, all the while wiping your data (but sending it back to you via some cloud storage link)? They’d then ask what you wanted to do with the money – Send it to charity, buy some groceries, pick up the tab at dinner next time or….get some new devices, perhaps?

Fantasy? Or does this business already exist?

Please, someone, start it up! There’s gotta be a business model in there somewhere….

Reporters Need to Understand Advertising. But Should They Be Making It?

By - February 17, 2013

(image) I know that when I do write here, I tend to go on, and on – and those of you who read me seem to be OK with that. But sometimes the best posts are short and clear.

That was my thought when I read Journalists Need Advertising 101 by Brian Morrissey, writing in Digiday last week. In fewer than 500 words, Morrissey issues a wake up call to those in journalism who believe in the old school notion of a Chinese wall between editorial and advertising:

What’s crazy is journalists seems almost proudly ignorant of the business of advertising. …it’s time journalists take a real interest in how advertising works. I’d go even further. It’s time they get involved in making it. Hope is not a strategy, as they say, and it’s better to deal with the world you live in rather than the world you wish you lived in.

Morrissey goes on to state that the banner ad – the staple of content-based business models for the past 20 years – is “going to zero,” and that the future of the business is in native, integrated content marketing. Journalists, he reasons, need to understand this and get with the program – which means helping to create the content for advertising.

Now, if you’re read me closely, you probably can imagine me nodding my head enthusiastically (though I think display is here to stay, in a renewed model). After all, I’m the one who wrote On Thneeds and the “Death of Display”  and The Evolution of Display: Change Is Here, For Good last year. I’ve been on about “native” for more than six years. The company I started in 2005 has been executing native programs since 2005. FMP has a “CM” practice that works with nearly half of the Fortune 100 doing content marketing and native advertising placements. Scores of our top publishers regularly make content for brands. And now that I think about it, it was a decade ago that I taught courses on the business of journalism to graduate students at Berkeley – because I believed that ignorance of business models spells doom for the fourth estate.

So I generally agree with Morrissey’s points – but with one possible caveat. I fully believe that great creators of content should be, well, creating great content on behalf of brands. The best filmmakers are also the best creators of 30-second spots, after all. But I wonder whether journalists – if defined as reporters who cover beats on a full time basis – should be making branded content if it conflicts with what they cover. A reporter’s contract with their audience is this: I will give you straight information about my beat, and I will not be unduly influenced by those I cover. It’s very hard make that promise if you are also being paid to make content for the brands you cover. Of course the truth is that anyone being covered by a reporter will try to influence them in any number of ways. But money complicates everything. The conflicts are deep – and it puts your audience’s trust at risk.

So should a reporter who covers, say, the auto industry full time, be creating marketing content for auto industry brands? I think we can debate this question. We used to live in a world of hard and fast, hierarchical rules. Now, we live in a world of communities who can and do attempt to understand each other. This is a good thing – a reporter can make his or her own decisions, explain them to an audience, and if the community accepts the result, all is well.

Whether or not you think it’s OK for reporters to create branded content about the industry they cover, I absolutely believe that reporters (and their editors, if they have them) certainly should be reviewing content created for that industry, and providing input on whether the content will resonate with the audiences and markets those reporters know best. And any media company that employs reporters should certainly have a content marketing function (if you don’t, why, give me a ring). Without input from publishers, branded content can fall flat, and fail to truly connect with an audience.

Branded content has to match its audience, and it must add value to the conversation. And most importantly, sponsor relationships must be clearly communicated. So how to do it? Branded content needs an understanding of the market, the talent to create content in that market and the ability to place its content in front of the market. If you want to be in a fast moving conversation, it’s damn hard to do all that without editors and reporters. As Morrissey points out, the flat-footed Scientology mess shows what happens when the Chinese wall between advertisers and publishers is overly imposed.

But let’s address the elephant in the room: should brands be asking reporters to make content for brands they directly cover? It’s debatable, but I’d argue it’s probably not a good idea.

Of course, this may be a question of degree. Is it OK for a reporter to write branded content if it’s not about the brand, but merely underwritten by the brand? That happens a lot already, to the point where it seems almost uncontroversial (although many “traditional” journalists decry the practice). What if the reporter writes content for a brand they don’t cover directly, but is in the industry they cover? Can auto industry reporters, for example, create content for other areas not on their specific beat, like say, for an auto insurance brand?  Is it only OK if they write whatever they wish to, editorially, but not alright if they are told what topics to cover?  I could go on for quite a while…

I’ve given a ton of thought to these issues, but it strikes me our industry hasn’t really codified a clear set of principles on the matter. And for content marketing to really thrive, we certainly should.

Perhaps a start to this conversation is the distinction between a reporter who covers a beat full time with a promise to an audience of unbiased point of view, and a strong voice in the industry who lives or dies based on their individual point of view, but isn’t a full time reporter working for someone else.  This has been a long standing point of contention since the rise of bloggers – what is a journalist, anyway? Is a blogger who regularly expresses a strong point of view on a particular industry a journalist?

Lord knows tons of folks have weighed in on this topic, but here’s my shorthand: I think everyone and anyone can be a journalist, especially bloggers. But not all journalists are reporters. There’s an important distinction here, and it’s one worth maintaining. I write a journal – this site. It has my opinion, my point of view, my voice and analysis, and every so often, a piece of reporting. But I am not a full time reporter. I believe readers are smart: They understand when someone (like me) is a voice in a particular industry. They also understand that someone with a passion who writes a site on food, or style, or entertainment, isn’t a beat reporter covering those issues full time, but rather a smart voice saying whatever they care to say, whenever they care to say it. If that person decides to take on sponsored work, that’s fine. If  the content they create is disclosed, of high quality, adds value to their community, and puts food on the table, everyone wins.

This is naunced stuff, and worth airing out. As content marketing becomes a standard in our industry, we need to open up this dialog and be willing to learn from each other. I look forward to the ongoing conversation.

An Embarrassment of Pitches

By - February 07, 2013

Man, sometimes you have to venture out onto the real web to realize how far much of the “professional sites” have to travel before they have a viable model.

Case in point: The San Jose Mercury News. Today the paper (yeah, I’m calling it that) published an interesting-sounding piece entitled Silicon Valley job growth has reached dot-com boom levels, report says.  It was widely retweeted and otherwise socially circulated. It’s been a while since the Merc has mattered in my world, and I was pleasantly suprised to see the story pop up in my feeds. So I clicked through to the Actual Web Site to Actually Read The Story.

LordInHeaven I wish I hadn’t. Look at what I saw:

 

Now, it’s going take some work to break down this hot holy mess. So stay with me.

First off, believe it or not the belly flab ad isn’t the worst part of this experience (it’s close, believe me). The worst part is the layout, which looks like – well, something you’d wrap a fish in.

There there are the ads. As the Grinch might say…the ads ads ads ads. Six or more of them in this screenshot, and three more below the fold. There’s a Verizon site wrapper (on either side of the page), an expandable top banner, and three medium rectangle units crammed in there. Not one of them is what you might call a “quality” ad – at least by most standards. (Do you think Verizon is happy that their site takeover is overrun by social media buttons and competing with belly flab, diabetes, Frys’ Electronics and travel pitches?) If you bother to scroll down (who would?) there are three more pitches waiting for you there.

And check out the number of beacons and trackers on the right, in purple. That’s Ghostery, which I run on my browser to see who’s laying down data traps. Man, Merc, that’s a lot o’ data. Are you doing anything with it? (I’m guilty of the same, as a commentator points out below.)

It’s late, I’ll stop. But before I go, one more thing: I just don’t believe that’s the same person Before and After in that belly fat ad. Oh, and what was I reading again? Ah, never mind.

It’s Time To Call Out Fraud In The Adtech Ecosystem

By - January 26, 2013

A confusing landscape = ripe opportunities for fraud.

As part of research I’m doing both for the book and for my upcoming conference (the CM Summit, more on that soon), I’ve been in pretty extensive conversations lately with dozens of key players in the advertising technology industry. I find the ecosystem that has developed  to be fascinating, complex, and ripe with opportunity (and deeply important to the future of our society, not just marketing). I’ll be writing about it quite a bit in coming months. But before I do, I wanted to call out a growing issue that our industry will have to tackle sooner rather than later.

Just as in the early, wild west days of search (1999-2004), the programmatic advertising business – a multi-billion dollar marketplace growing faster than search, video, or anything else for that matter – is riddled with fraud.

That’s what many very reputable sources have told me in great length over the past few months. It’s something of an open secret, and more and more people are speaking out against it. Here’s Federated Media’s Walter Knapp on the problem, back in March of last year:

The great thing about the Internet is that it is built on the foundation of openness — from the way the domain system works to the way content and publishing are increasingly democratic. The core technologies embrace openness, sharing, linking and the ability to consume content across devices and across wired or wireless connections. Unfortunately, the openness we depend on in the digital media business is also available to people who can (and will) take advantage of this openness and exploit it for their own selfish wants.

Knapp notes two forms of fraud – ad injectors, fraudulent browser plugins that take over ad calls; and the practice of inserting an entire site into a 1×1 pixel hidden on high traffic but low quality sites featuring porn or music lyrics. Both are examples I’ve heard about over and over in my reporting. A third involves “stacking” ads one behind the other, all playing video to completion, often playing in inactive tabs. A fourth features refreshing ad calls on accelerated schedules or in inactive tabs. Yet another involves running as many ads as possible out of view, simply to gain “view through attribution” on a closed loop success metric.

More people are starting to call these practices out. AppNexus CEO Brian O’Kelly prominently featured the issue of fraud in his blog post celebrating his company’s recent $75 million funding, and what he intends to use it for:

Quality We will continue to invest in cleaning up the advertising marketplace. We’re proud of our anti-piracy stance, and our 5x volume growth this year indicates that you don’t need to serve on BitTorrent sites to be an ad platform company. We are investing heavily in fighting fraud, porn, malvertising, and malicious toolbars, and we are actively working on viewability tools.

Programmatic industry watcher AdExchanger puts it this way:

AppNexus’s pledge to invest money in ad quality issues is worth calling out. The issue is becoming more pervasive as companies emerge to exploit the vulnerabilities of real-time traded inventory to data and impression fraud, malvertising, and other nefarious practices. Fraudulent activities aside, the emergence of robust ad verification and viewability tools means display ad marketplaces and buying platforms must keep a clean nose.

It’s true that many folks are working on addressing the issue, including the IAB. But the bad actors are currently far ahead of the good guys, and worse, many in our industry are turning a blind eye, hoping the problem goes away in time, without too much publicity. Why? Well, nearly everyone gets paid from fraud – the publishers, the exchanges, the data providers, and the agencies. Even the marketers,who are footing the bill, feel like they are getting value – because the success metrics they’ve set up are being  met.

But fraud hurts the ecosystem in a massive way. It means that low quality, invisible, or purely fraudulent inventory is holding down the average value of the entire marketplace – hurting high quality, engaged publishers in the process, stunting investment in quality content.

Over and over, I hear that the reason CPMs (the amount of money a marketer is willing to pay for one thousand advertising impresssions) are so low is because “there’s infinite inventory.”

Hogwash. There’s only so much time in the day, and only so many pages where actual human beings are really paying attention, and the web (including mobile) is growing at a finite pace. There are even fewer places where marketers can be assured of quality, engagement, and appropriate context. It’s time we focus on identifying them, and ridding ourselves of the true source of “infinite inventory” – fraud.

The 140 Character Video Is Six Seconds Long

By - January 24, 2013

Twitter announced its integration of Vine today, and to put not too fine a point on it, the service is, in essence, a way to create a video tweet. If a text tweet = 140 characters, then a video tweet = 6 seconds. More details over at TNW, but this announcement is quite consistent with my post earlier this week: Portrait of Twitter As A Young Media Company.

I’ve long pined for the time when video enters the grammar of our ongoing communication on the web. This is Twitter’s bid to frame how the medium might join the conversation. It’s not a new idea – I guess 12 Seconds was three years early and six seconds too long – but it’s an idea whose time may have come. I’ve seen the iOS app, and it’s very slick, allowing for seamless pauses and cuts. And man, is the example on Twitter’s blog (embedded here) cute. I could stare at it for a long time…well, no, wait, I did stare at it for a long time. I bet you are too. Video is very … engaging when done well.

Advertisers, sharpen your six second pencils. Here’s another native format for you to consider….

Portrait of Twitter As A Young Media Company

By - January 21, 2013

Last year I predicted that Twitter would become a media company. However, I focused mainly on the new “Discover” functionality, and I probably should have gone a lot further. In this piece, I intend to.

So I’ll start with this: 2013 will be the year Twitter starts to create, curate, and co-create media experiences on top of its platform. I hinted at this in my brief coverage of Twitter’s Oscar Index (see Twitter’s Makin’ Media), but allow me to put a bit more flesh on the bones.

So what might one make from the fact that your platform captures hundreds of millions of individuals declaring what’s going on at any give time? Well, let’s break down some of the signals in all that supposed noise. As I’ve written over and over and over in the past several years, Twitter presents a massive search problem/opportunity. For example, Twitter’s gotten better and better at what’s called “entity extraction” – identifying a person, place, or thing, then associating behaviors and attributes around that thing. This (among other reasons) is why its Discover feature keeps getting better and better. Another important signal is location – Twitter is increasingly focused on getting us to geolocate our tweets. A third signal is the actual person tweeting – his or her influence and interest graph. Yet another signal is time – when was the entity tweeted about?

Real time entity extraction crossed with signals like those described above is the Holy Grail – and I’m guessing Twitter is almost, if not already there.

Once you get good at all these things (and more), a number of really interesting possibilities open up. Identifying “big things” that are going on at any given time is something that Twitter already does – though not particularly well (the best window in is the “Trends” box on the left of the page). Regardless, Twitter has become a go-to service for quick updates about news events (Sandy, Newtown, etc), entertainment events (SuperBowl, Oscars, Grammys, etc), and well….pretty much any kind of event.

But so far, it’s not exactly easy to get the big picture of what’s really going on for any given event on Twitter. In fact, it’s rather difficult. You can search for a hashtag, or keywords you think are associated with an event, but no matter what, it’s extremely difficult to makes sense of it all. For a big event like Sandy Hook or the Oscars, there are literally millions of tweets to sift through. And those tweets have millions of pictures, links, and videos. How can you know what’s important?

This is exactly the problem that  media experiences are designed to solve. By combining intelligent algorithms (these tweets are retweeted more than others, this video is linked to more than all the others, etc) and some smart editors, Twitter can (and most likely will) surface instant windows into events as they unfold around the globe. I imagine logging into Twitter at some point in the future and seeing a dashboard not of Trends, but of “Happenings” – Events edited to my interest graph, location, and the like. When I click on on of those events, I enter a meticulously edited media experience – a pulsing, ever changing feast of information tailored around that event.

So, put in one sentance: Twitter’s going to do events soon.

What other media experiences might Twitter create? Well, extending the logic, it only makes sense that Twitter will curate media services, just as LinkedIn and now Facebook are starting to do (I argue that Graph Search is a media play here).

“Just Landed” – from 2009.

As Google has proven, words have a lot of power on the web. They have even more power when put in context at scale. Consider what happened when a data artist asked a simple question: Where are people when then tweet that they “just landed”?

Now, imagine Twitter stands up a service that allows you to see patterns around phrases like “looking for someone to…,” or “just got a job,” or “python developer,” etc. Yep, lurking inside all that Twitter data is a pretty powerful job service. And I’m only using jobs as a straw man (and because it’s a driving force of LinkedIn’s success, of course). When you have humanity whispering into your ear at scale, you can tune in any number of valuable signals. Getting a job is one important signal. But so is getting married, buying a house or a car, graduating, and, and and….well you get the picture. Standing up “media services” around these life milestones is what media companies do. They used to be called magazines. What might Twitter call them? In 2013, we’ll most likely find out.

So far I’ve proposed two new media features of Twitter: Events and Media Services. I’ll round out this post with a prediction around a third: Video. Video is a vastly under-leveraged asset on Twitter, but people are sharing millions of links to video clips every day on the service. I imagine that Twitter will soon offer some kind of video curation feature – giving its base the ability to find the most popular videos based on pivot points of time, interest, and people. Surfacing and creating more video on the Twitter service has got to be a major priority at the company. And let’s not forget that Twitter bought Vine, after all…

After all, everybody loves video. In particular, advertisers love video. After all, Twitter is already working with Neilsen to become the official barometer of television conversations.

Which brings me to the “stick the landing” portion of this particular round up. Twitter is going to make much more media this year, because Twitter is going to make much more money this year. Each of the features I described above – Events, Media Services, and Video – bring with them inherent business models. I don’t expect they’ll look like traditional display models, of course, but I would not be surprised if they strayed a bit from Twitter’s current Promoted Suite products. With new media products come new advertising products. And new revenue.

Time will tell if I got this one right. Meanwhile, what do you think?

Predictions 2013

By - January 07, 2013

Mssr. Nostradamus

One week into the new year, it’s again time for me take a crack at predicting what might come of this next spin around the sun, at least as it relates to the Internet ecosystem. Last year’s predictions came out pretty well, all things considered, but I took an unusual tack – I wrote long posts on each of the first six, and then shot from the hip for the last one. Those last shots were pretty hit or miss, as you might expect.

This year I’m going to try something new. Instead of trying to get everything right – which often means being practical and reining in some of my more obvious biases – I’m going to make predictions based on what I wish would happen. In other words, below are things that I hope occur this year, even if the chances of them happening may be arguably slim. In the past I’ve edited out a fair amount of this impulse, as I was aiming game the odds in my favor. But for whatever reason – perhaps because this post marks my 10th year of predictions – I feel like airing it out and seeing what happens. So here goes.

2013 will be the year that….

We figure out what the hell “Big Data” really is, and realize it’s bigger than we thought (despite its poor name). Asked in 1995 whether the Internet was overhyped, John Doerr famously said “It’s entirely possible that the Internet is underhyped.” He was right, by a long margin. This past year, no secular trend has been more hyped than “Big Data.” But very few of us even know what the hell it is. This was also true of “the Internet” in 1995. But I’ll say it here, for the record: The role of data in our personal, social, and commercial lives is far larger than the current hype. It’s bigger than the Internet – it’s as big as big can be defined, because data, in the end, is our way of defining every single entity that matters to us, and then making that liquid to to world. This is really, really big – Matrix narrative big, big in every nuance and meaning of the word. And 2013 will be the year we look back on as the moment most of us came to that realization. Related to this, we as consumers will begin to make more and more choices based on how companies treat data, in particular, on whether those companies allow consumers to control data. Smart companies will begin to market on this distinction.And yes, this is very much at the heart of my work this year.

Adtech does not capitulate, in fact, it has its best year ever, thanks to … data. Ever since Terry published his Lumascapes on ad tech, we’ve all been waiting for the capitulation amongst those VC-backed companies. The reasoning goes something like this: There are way too many similar companies chasing the same opportunties, and far too few intelligent buyers or markets for samesaid companies. But what if the capitulation came, and no one noticed? That’s what’s going to happen in 2013. Plenty of companies will be sold, either for profits, pushes, or parts, but far more will launch and/or lean merrily forward, serving their niches well and building out their businesses, figuring out how to better leverage my first prediction. There will not be a systemic collapse in adtech, because adtech is one of the most important and edifying developments in marketing since search – the namesake of this site. In fact, given that I’m trending toward hyperbole, let me say it straight up: Besides the Internet itself, the ecosystem we are creating through adtech may well prove to be the single most important digital artifact we’ve ever created – more important than search, because it subsumes it, more important than the financial system, because it’s far more open and accessible. If we get adtech right, we may well be creating the prototype for how we manage all that “Big Data” in our lives, across all aspects of human endeavor – transportation, energy, finance, healthcare, education – pretty much anything that has a marble building in Washington DC. Of course, by the time this happens, no one will call it “adtech” anymore, but trust me – adtech is an artifact of a future we’ll all be living in soon.

– Google trumps Apple in mobile. Sure, Android has already gotten larger market share than iOS, and lots of tech pundits (myself included) are making loud noises about how the Nexus 4 is a winner. But that’s not what I’m talking about here. Apple still beats all comers when it comes to revenue, margin, and perception. But in 2013, what I wish for is that Google takes Apple’s crown. And here’s how it could happen: First, Google comes out with a device (maybe it’s with a partner like LG for the Nexus 4, but more likely, it’s a real Google phone, from Motorola) that is just inarguably better than Apple’s, and, it’s available at scale. The Nexus 4 is close, but it’s a half step toward what Google really needs – they need the Next Big Thing. You know, what the Razr was back in the late 1990s. What the iPhone has been for five years. And I think they’ll do it. Next, they need to recommit to their focus on interoperability and openness in operating systems. Google needs to actively promote a vision that is 180 degrees from that of Apple: Open, interoperable, accessible, ungated. This allows for real innovation in UI, services, and apps. Google will win by highlighting things that only Android-based devices running Jellybean or later can do: you (consumers and developers) can interact with digital services and content in a web-like fashion. On Apple’s bespoke devices, you get whatever Apple thinks you deserve. Lastly, Google will openly license the hardware platform of its world-beating phone free to all of its partners. Yes, that’s crazy, but it also gives Google the ability to win the PR war with Samsung, in particular, and continue its long record of taking what used to be costly, and making it free (it also won’t hurt Google in its endless antitrust battles around the world). Google shouldn’t fall into the rabbit hole of thinking it’s a hardware sales company. That’s Apple and Samsung’s (and HP’s and and and…) cross to bear. Google is software and services company, period end of sentence. (And yes, media is software and services).

– The Internet enables frictionless (but accountable) payments, enabling all manner of business models that previously have been unnaturally retarded. Closest to my heart is payment for content, of course, but beyond media, 2013 will be seen as the year a number of forces converged to push paid services to its rightful place next to advertising as a core driver of the Internet economy. I know PayPal et al are already massive businesses, but frictionless they are not. Nor do we have a solution that crosses platforms and devices in a manner that doesn’t give pause (or headache – for example, there’s no way to track what you’ve paid for across the Internet, if you happen to use more than one service). But as I said, many forces are converging to enable such a dream: First, consumers are now accustomed to paying for services and even content online. We have Paypal, Amazon, Netflix, Xbox, various media paywall experiments, mobile devices and their app stores to thank for that. Second, one word: Square (and the companies it is disrupting or pushing to new innovations, including card companies like American Express). Third, major consumer-facing online platforms based on “free” – Google and Facebook chief among them, though Twitter is a potential player here as well – will begin to press their customers for real dollars in exchange for premium services. Facebook is already doing this with its promoted posts, Google with paid services around its Apps for Business. I expect both will either try to buy Box, or forward their own Box-like services in 2013. (Don’t get me started with Apple’s iCloud.) The short of this one is simple: For 15+ years, we thought mostly otherwise, but paying for services online makes sense for both customers and businesses. You all know I believe in advertising, but I don’t want to live in a world where marketers are footing the bill for everything we do digitally. That’s not good for anyone, including marketers.In 2013, the flywheel of paid will start to spin in earnest, driving down costs, but increasing overall revenues.

– Twitter comes of age and recommits itself as an open platform. Twitter has confounded critics and naysayers for years, and nowhere more directly than in its developer base, who were given plenty of reasons to complain last year. Several key proponents of the service have publicly left the service, even going so far as to start competing paid services that feel more “pure.” I applaud these services, but I think Twitter is playing a longer term game, and 2013 will be the year it becomes apparent. Twitter knows a couple of things to be true: First, it cannot execute all the goodness possible in its ecosystem on its own, it needs great developers. And second, its competitive advantage, compared to Facebook or Apple (and even Google, at least as it relates to G+) will be its relative openness. So the company will clarify its sometimes confusing rules of the road for its developers this year, and some breakout new services will emerge (key to this is defining what the unit of value is for the Twitter ecosystem – IE, how does one build a business that relies on Twitter if you don’t know whether that business is in a fair value exchange with Twitter?). I’ll even go so far as to predict that Twitter will once again hold a conference for its developers (something it did once, a few years ago, then abandoned). Also, Twitter will reconfirm its commitment to being “the free speech wing of the free speech party,” and get itself into some good old fashioned tempests with Big Overbearing Governments and Corporations, much to the delight of folks who used to cheer Google for doing similar things in the past. And as I referred to in my previous prediction, I think it’s entirely possible that Twitter begins to test or even roll out paid services across its network this year. This makes sense for any number of reasons, one of which has to do with diversifying revenues in advance of an IPO, but the other is simply part of the secular trend I note above. Twitter is a technology-driven media company, and strong media companies have both subscription and advertising businesses. And let’s be frank: when advertising is not 100% of your revenues, you can afford to be more open and transparent in your business dealings.

- Facebook embraces the “rest of the web.” Even as Facebook continues to be, for the most part, a world apart from the principles and ideals of the open web, I believe 2013 will be the year it realizes it’s OK to share – bilaterally – with The World That Isn’t Facebook. That means making it really easy to export your identity and data, for example – competing on service, not lock in. And creating a kickass web-based advertising network/exchange. And  learning how to play nice with the hundreds of thousands of publishers out there, pro, semi pro and amateur, who create the value that drives so much engagement on its core platform.

- By the end of the year, Amazon will have an advertising business on a run rate comparable to Microsoft. Amazon doesn’t like to talk about its advertising business, but it’s already large, and 2013 will be the year it breaks out. It will be smart, programmatic, data-driven, and rapacious.

The world will learn what “synthetic biology” is, because of a major breakthrough in the field. When I met last year with Joi Ito, director of the MIT Media Lab, he was emphatic about a field where he felt extraordinary breakthroughs might occur: Microfluidics. Given his enthusiasm, I’ve spent a fair amount of time learning from folks active in the space, and reading up on what the larger implications might be. Without going too deep into it, microfluidics are an important enabler to the synthetic biology movement, about which you may learn far more by reading George Church and Ed Regis’ Regenesis: How Synthetic Biology Will Reinvent Nature and Ourselves. I’ll be writing a lot more about this field later in the year, it’s filled with wonderful, talented people who, as a group, remind me of the folks who built the digital revolution in the 1970s, 80s and 90s. The analogy is more than poetic, it’s quite literal as well. This year, it will become apparent as to why.

Well, I’ve gone on for more than 2000 words now. And yes, I’m avoiding making predictions about Yahoo, or Tumblr, or any number of others, though I certainly have opinions on them. But I think that’s enough for one year. If I could summarize my wish list for the Internet through these predictions, it’s this: More open, more real breakthroughs, and more deep understanding of the true importance of the industry in which we all participate.

Remember, these are predictions that I wish will come true. Happy New Year. Now go make all this happen, willya?

Related:

Predictions 2012

2012: How I Did