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The Waze Effect: Flocking, AI, and Private Regulatory Capture

By - February 03, 2016

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A couple of weeks ago my wife and I were heading across the San Rafael bridge to downtown Oakland for a show at the Fox Theatre. As all Bay area drivers know, there’s a historically awful stretch of Interstate 80 along that route – a permanent traffic sh*t show. I considered taking San Pablo road, a major thoroughfare which parallels the freeway. But my wife fired up Waze instead, and we proceeded to follow an intricate set of instructions which took us onto frontage roads, side streets, and counter-intuitive detours. Despite our shared unease (unfamiliar streets through some blighted neighborhoods), we trusted the Waze algorithms – and we weren’t alone. In fact, a continuous stream of automobiles snaked along the very same improbable route – and inside the cars ahead and behind me, I saw glowing blue screens delivering similar instructions to the drivers within.

About a year or so ago I started regularly using the Waze app  – which is to say, I started using it on familiar routes: to and from work, going to the ballpark, maneuvering across San Francisco for a meeting. Prior to that I only used the navigation app as an occasional replacement for Google Maps –  when I wasn’t sure how to get from point A to point B.

Of course, Waze is a revelation for the uninitiated. It essentially turns your car into an autonomous vehicle, with you as a simple robot executing the commands of an extraordinarily sophisticated and crowd-sourced AI.

But as I’m sure you’ve noticed if you’re a regular “Wazer,” the app is driving a tangible “flocking” behavior in a significant percentage of drivers on the road. In essence, Waze has built a real time layer of data and commands over our current traffic infrastructure. This new layer is owned and operated by a for-profit company (Google, which owns Waze), its algorithms necessarily protected as intellectual property. And because it’s so much better than what we had before, nearly everyone is thrilled with the deal (there are some upset homeowners tired of those new traffic flows, for instance).

Since the rise of the automobile, we’ve managed traffic flows through a public commons – a slow moving but accountable ecosystem of local and national ordinances (speed limits, stop signs, traffic lights, etc) that were more or less consistent across all publicly owned road ways.

Information-first tech platforms like Waze, Uber, and Airbnb are delivering innovative solutions to real world problems that were simply impossible for governments to address (or even imagine). At what point will Waze or something like it integrate with the traffic grid, and start to control the lights?

I’ve written before about how we’re slowly replacing our public commons with corporate, for-profit solutions – but I sense a quickening afoot. There’s an inevitable collision between the public’s right to know, and a corporation’s need for profit (predicated on establishing competitive moats and protecting core intellectual property).  How exactly do these algorithms choose how best to guide us around? Is it fair to route traffic past people’s homes and/or away from roadside businesses? Should we just throw up our hands and “trust the tech?”

We’ve already been practicing solutions to these questions, first with the Web, then with Google search and the Facebook Newsfeed, and now with Waze. But absent a more robust dialog addressing these issues, we run a real risk of creating a new kind of regulatory capture – not in the classic sense, where corrupt public officials preference one company over another, but rather a more private kind, where a for-profit corporation literally becomes the regulatory framework itself – not through malicious intent or greed, but simply by offering a better way.

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Robert Reich: “Saving Capitalism” From Itself

By - December 27, 2015

Robert B. Reich Photo and Book with Black Border 08042015Robert Reich’s Saving Capitalism: For the Many, Not the Few is a readable rant that – should you disagree with Reich’s central premise – will elicit eye-rolls and summary dismissal. But while his well-known political ideology (he served as Secretary of Labor under Clinton) is on constant display, I found Reich’s book both timely and important.

I am drawn to any work that posits a better way forward, and as you might expect, I agree with Reich far more often than not. You have to be willfully ignorant to pretend our current economic system is equitable (Reich argues we’re in the “second Gilded Age“) or capable of creating long-term increasing returns. And while many in our industry cling to libertarian fantasies in which technologic silver bullets solve our every social need, back here on earth we need to do better than pine for the singularity. Fixing income inequality and the loss of the middle class requires hard policy choices and a re-framing of the problems at hand.

Reich’s compact book lays out a strong prescription for what he feels is ailing our capitalist system. Anyone in tech should pay attention: Reich lumps the tech elite right alongside bankers, big pharma, and agribusiness as the new monopolists, and argues that if our capitalist society is to truly prosper, some pretty fundamental changes have to occur in both our economic policy as well as the structure, practices, and purpose of the companies we build.

Most of Reich’s argument turns on this simple premise: The debate between “free markets” and “government intrusion” is a false choice. “The central choice is not between the “free market” and government;” Reich argues, “it is between a market organized for broadly based prosperity and one designed to deliver almost all the gains to a few at the top.”

Reich goes on to deliver example after example of how the rules governing our current capitalist system are rigged to deliver “pre-distributions” of wealth to those in power. From banking to broadband, pharma to agriculture, Reich details subtle market mechanisms that concentrate power and capital into the hands of the “new oligarchs.” Government doesn’t intrude on markets,Reich argues, in fact government creates markets. Citing regulatory and enforcement frameworks for property, monopoly, contract, and bankruptcy law, Reich argues that opposition to government regulation “hides a larger reality: the necessary role of government in designing, organizing, and enforcing the market to begin with.”

The proper role of government, Reich argues, is to insure fairness to all – and today’s capitalist system is anything but fair. Reich traces the role of money in politics, for example, and the disastrous roll back of regulations limiting corporate giving to political campaigns. He shows how corporate lobbying has effectively hamstrung food safety legislation and stifled innovation in our nation’s infrastructure. He details how corporations have successfully lobbied for tax loopholes that allow for massive increases in executive pay.

Reich takes on several sacred American myths along the way. One is the idea that corporations must be run to maximize profit – the almighty “shareholder return.” “The idea that shareholders are a corporation’s only owners, and therefore that the sole purpose of the corporation is to maximize the value of their investments, appears nowhere in the law,” Reich writes. Instead, Reich argues, corporations should balance many constituents – employees, customers, communities impacted by their operations and their products. And in fact, this idea was once quite commonplace in American capitalism, Reich reminds us. Back in the 1950s, Fortune magazine exhorted its readers to act like “industrials statesman” who “regard business management as a stewardship, and … operate the economy as a public trust for the benefit of all the people.”

Reich also skewers the American myth of meritocracy – that we are paid what we are worth. “The notion that you’re paid what you’re “worth” is by now so deeply ingrained in the public consciousness that many who earn very little assume it’s their own fault,” Reich writes. “They feel ashamed of what they see as a personal failure—a lack of brains or a deficiency of character. [But] those who are rich and becoming ever more so are neither smarter nor morally superior to anyone else.”

I have a feeling there are more than a few folks in the Valley who’d disagree with that last statement.

Here are a few more of Reich’s tidbits:

– The $26.7 billion distributed to (recently bailed out) Wall Street bankers in 2013 bonuses would have been enough to more than double the pay of every one of America’s 1,007,000 full-time minimum-wage workers.

– In 2001, the top ten websites accounted for 31 percent of all page views in America, by 2010 the top ten accounted for 75 percent.

– Google and Apple have been spending more money acquiring and litigating over patents than on doing research and development.

– The richest four hundred Americans have more wealth than the bottom 50 percent of Americans put together.

– Fast food and low-wage service jobs are subsidized by public benefits, driving significant profits for large corporations.

Capitalism must be “saved from its own excess,” Reich concludes. “There is simply no way the American economy can be sustained if the richest 10 percent continue to reap all the economic gains while the poorest 90 percent grow poorer; there is no way American democracy can be maintained if the voices of the vast majority continue to be ignored.”

Reich’s prescription includes overturning Citizens United, considering a basic universal income, rethinking our intellectual property, patent, and copyright laws to insure wealth created by innovation ultimately returns to the public domain, and nothing less than the “reinvention of the corporation.”

It’s that last thought that was the true “aha!” for me – it echoed my own thinking about what I’ve come to call the “NewCo narrative” – the story of a new kind of corporation, one driven as much by purpose as profit. I didn’t read “Saving Capitalism” expecting to find affirmation for our nascent movement, but I’ll admit it was satisfying to hear Reich calling for a new approach to corporate philosophy. “We’re likely to see a reversion to a time when many jobs were considered “callings,” expressing a deeply personal commitment rather than simply a means of acquiring money,” Reich writes, arguing that in the end, workers and consumers will be the most effective agents of change in our economy, be it through the ballot box (Reich does raise the specter of a populist third party separate from either Democrats or Republicans), or, more likely, through the formation of new kinds of companies which see themselves as responsible citizens of the world. Hear Hear!

App Stores Must Go

By - January 11, 2015

appstores2014 was the year the industry woke up to the power of mobile app installs, and the advertising platforms that drive them. Facebook’s impressive mobile revenue numbers – 66% of its Q3 2014 revenue and growing  – are a proxy for the mobile economy at large, and while the company doesn’t divulge what percentage of that revenue is app install advertising, estimates range from a third to a half – which means that Facebook made anywhere from $700 million to more than a billion dollars in one quarter on app install advertising. That’s potentially $4 billion+ a year of app installs, just on Facebook. Yow. That kind of growth is reminiscent of search revenues a decade ago.

But as I’ve written before, app installs are only the beginning of an ongoing marketing relationship that an app publisher must have with its consumer. It’s one thing to get your app installed, but quite another to get people to keep opening it, using it, and ultimately, doing things that create revenue for you. The next step after app install revenue is “app re-engagement,” and the battle to win this emerging category is already underway, with all the major platforms (Twitter, Yahoo, Google, Facebook) rolling out products, and a slew of startups vying for share (and M&A glory, I’d wager).

Over time, app install revenue is bound to wane, and app re-engagement revenue will wax, to the point where the latter is inevitably larger than the former. Neither will disappear entirely, of course, but as the mobile model matures, it’s likely they will take new form. But the following three steps will remain constant – they were true before apps (when we called Internet services “websites”), and they were true before the Internet itself:

  1. Get people to notice your product or service, and engage with it for the first time. 
  2. Get people to come back, and keep sampling your product or service. 
  3. Get people to regularly give you their money for your product or service.

We’ve now got a reliable model for #1: It’s the combination of the app store platform and app install advertising. #2 is coming along as well, as I mentioned above.

But what of #3? It’s one thing to get someone to give you a few bucks for your app, but how can you keep them giving you money (or doing things that make you money, like ordering on GrubHub)? If app makers are spending an unhealthy percentage of their capital on advertising, innovation in product will suffer, and we won’t get apps that people are willing to continually pay for. It strikes me, after any number of conversations I’ve had around the state of mobile, that mobile markets in the US will slowly but surely evolve toward the norms currently in place in Asia, where advertising is a minority of mobile revenues, and in-app commerce of all kinds is the standard. After all, that’s how it is for business in general – advertising is a small but significant percentage of overall revenues.

But for this to occur, our process of app discovery and engagement has to rationalize – it’s simply too expensive to build a loyal audience in mobile, and the top 1-2% of apps can afford to price the rest of the market out. This is the great failure – or cynical intention – of Apple and Google’s hobbled app store strategy. There simply should not be one app store per platform – they’re what Steve Jobs would call “orifices” – monopolistic constructs created to consolidate control. App stores stifle innovation – they are damage, and the Internet will eventually route around them. 2015 should be the year that becomes evident.

My other recent musings on mobile can be found here.  

Whither the Public Commons? Enter The Private Corporation

By - November 05, 2014

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(image) From time to time a piece reminds us that we are in a slow, poorly articulated struggle over what we hold as a public commons. That was the case with Vanity Fair’s Man and Uber Man, a profile of Uber’s Travis Kalanick by Kara Swisher. Swisher deftly captures Kalanick’s combative approach in prosecuting what he calls Uber’s “political campaign” to beat established regulated markets in transportation, a campaign he believes he must win “98 to 2″ – because the candidate is a product, not a politician. In short, Uber can’t afford to win by a simple majority – this is a winner takes all scenario.

This gives me pause, and I sense I’m not alone. On the one hand, we praise Uber for identifying a huge market encumbered by slow moving bureaucracy, and creating a service markedly better than its alternatives. That’s what I’ve called an “Information First” company.  On the other hand, we worry about what it means when something that was once held in public commons – the right to transportation – is increasingly pushed aside in favor of private alternatives. Messy as it may be, our public transportation system is egalitarian in its approach, non-profit at its core, and truly public – as in, bound to the public commons through government regulation.

Are we sure we want to outsource our commons to private companies? I think that’s the existential question we face as a society. I wrote about it three years ago in a post What Role Government? From it:

Over the past five or six decades, we’ve slowly but surely transitioned several core responsibilities of our common lives from government to the private sector. Some shifts are still in early stages, others are nearly complete. But I’m not sure that we have truly considered, as a society, the implications of this movement, which seem significant to me. I’m no political scientist, but the net net of all this seems to be that we’re trusting private corporations to do what, for a long, long time, we considered was work entrusted to the common good. In short, we’ve put a great deal of our public trust into a system that, for all the good it’s done (and it’s done quite a lot), is driven by one core motivation: the pursuit of profit.

The question of the role we wish government to play seems even more pressing given the advance of largely private services such as Uber. We are in the midst of a heated social conversation around the topic, and we see the edges of it when silly insta-startups pop up to privatize public space such as parking spots. In my longer piece, I identify a series of areas where we’ve outsourced formerly public “features” of our lives to private companies. The trend has only strengthened since, and I don’t expect it will flag anytime soon.

So perhaps instead of “What Role Government,” or “What Commons Do We Wish For,” the question we need to ask ourselves is this: What kind of a corporation do we want? If we are going to have corporations play a larger and larger role in what we formerly understood to be the public commons, we might want to we spend a few cycles asking ourselves what kinds of behaviors and values we want our companies to exhibit?

Come to think of it, that’s kind of why I started NewCo last year. It strikes me that we’re just starting to have a conversation about those corporate values. I laid out some of this in What makes a company a “NewCo”?, to wit:

Driven by capitalism’s central motive – profit – corporations have become one of the most powerful actors on the global stage. Besides government, no other institution in society has amassed as much wealth, power, and control as the corporation.

But at their core, corporations are just people. And over the past few decades, in parallel with the rise of the Internet, those people have begun a quiet revolution that has redefined what a “corporation” can be.

The global economy is transitioning from hierarchical models of command and control to more networked and flexible approaches. A new kind of organization – one that measures its success by more than profit – has emerged. We call these companies “NewCos.” As the networked, information-first economy has taken hold, NewCos are building innovative, purpose-driven new ways of doing business.

A NewCo views “work” as more than punching a clock or doing a job. The people behind these companies believe work can equate with passion, community, and a force for positive change.

 

It’s fascinating to watch the debate over Uber play out – is it a good actor, or a bad one? Is its CEO a driven role model or a bully? Or is it, perhaps, still figuring out what it really means to have the public trust? Once you’ve won that trust,  well, maybe that’s when the real work begins.

A Big Day For The Internet

By - September 10, 2014

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Today scores of big companies are taking symbolic action to defend the essential principles of an open Internet, and I support them. That’s why, on your first visit here today, you’ll see the “spinning ball of death” up on the right. For more information about the Internet Slowdown, head here.

Viacom v. Cable One: A Foreshadowing of Things To Come in The Battle for the Open Web?

By - May 07, 2014
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Viacom’s rather one-sided POV on why its blocked web access for Cable One providers. Image via @TheLadyH86

So it’s come to this.

We’re all familiar with disputes between cable providers and their content partners – it happens all the time. One party claims the other party is demanding too much in a carriage negotiation, and in retaliation, the offended party pulls the programming in dispute. It might be the programmer who refuses to allow its content to run, or the cable company who refuses to put it on the air. The last big one I recall was between Time Warner and CBS back in the Fall, when many major markets looked to be losing football coverage just as the season was starting.

To be honest I pay little attention to these disputes, just more big old media titans arguing over profits and old business models. Doesn’t affect the Internet, nothing to see here, move along.

Until I read this story, about another dispute between cable companies and content providers, this time Viacom (which owns CBS) and Cable One, a provider of cable television, phone, and Internet service in 19 US states. The impetus for this particular tussle was the same as all the others – Viacom wanted more money to run its shows on Cable One, Cable One balked, and Cable One (or Viacom, hard to say which) pulled Viacom programming. But this dispute is unique: Viacom retaliated by denying all Cable One Internet subscribers access to shows openly available on Viacom websites.

Let me repeat that: Viacom retaliated by blocking paying subscribers of Cable One’s Internet services from using Viacom websites. As far as I can tell, Viacom is identifying Cable One subscribers by their IP addresses, and then blocking those IPs from streaming any Viacom content on the web – despite Viacom’s willingness to stream those same shows to anyone else in the US with Internet access.

Let that sink in for a minute. A US corporation is blocking open Internet calls to the open web because the company providing that access is not paying Viacom enough money for Viacom’s television shows. The old world model of command and control in cable is seeping into the Internet. Ick.

What the fork**?

In one short and deeply insightful post this March, Fred Wilson explained the stultifying effects on innovation caused by the erosion of open access to the web by imagining a pitch between entrepreneurs and VCs in an era where net neutrality is rewritten by incumbents in the media and distribution world. Here’s one example:

Entrepreneur: I plan to launch a service that curates the funniest videos from all across the internet and packages them up in a 30 minute daily video show that people will watch on their phones as they are commuting to work on the subway. It’s called SubHumor.

VC: Well since YouTube, Hulu, and Netflix have paid all the telcos so that their services are free via a sponsored data plan, I am worried that it will hard to get users to watch any videos on their phones that aren’t being served by YouTube, Hulu, or Netflix. We like you and your idea very much, but we are going to have to pass.

If what Viacom and Cable One are doing becomes standard practice, I can imagine such conversations getting even worse. We are all reaping the rewards, value creation, growth, and innovation of an open Internet. Let’s not let these practices stand.

**Maybe it’s time to teach Cable One’s subscribers about Firefox’s Modify Headers plug in….

 

Else 4.28.14: F*ck Policy, Except When I Care About The Outcome

By - April 27, 2014

net-neutrality-thumbnail-2(image) This past week saw a significant increase in society’s willingness to have a deeper conversation about what it means to Become Data. The Supreme Court heard arguments in a case that may well supplant the Betamax case in import. And the FCC stepped in it, big time, while pals at O’Reilly opinined for a world where the Internet of Things remains open and transparent. Not to mention, my own ramblings on what it means to truly disappear, and why Google does what it does. To the links….

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Goodbye, Net Neutrality; Hello, Net Discrimination : The New Yorker

The FCC sure as hell stepped in it last week. Let’s see if they clean off their shoe, or just keep smelling like shit.

Why Do So Many People Describe Aereo ‘Complying’ With Copyright Law As The Company ‘Circumventing’ Copyright Law? – Techdirt

Meanwhile, we’re quite uneasy with whether our Supremes can grok the complexities of….Barry Diller’s business moves.

Google, Facebook Fight for Tech’s Future via Acquisitions – Businessweek

Come on, if you told me five years ago the cutting edge of competition was … drones….well. Anyway. It is.

Science Fiction: Mining My Own Exhaust – Monday Note

Yes, we make a lot of data. And yes, it’s time we started to see that fact as more than an oppressive unknown. It may well become a springboard to surprise and delight.

The revolving door between Google and the Department of Defense –  PandoDaily

This might scare you. Or you might realize that it’s pretty damn normal in the rest of the industrial world, and will be here as well.

Toward an open Internet of Things – O’Reilly Radar

Please, let’s not make this next phase of our industry suck. Please?

How Airbnb and Lyft Finally Got Americans to Trust Each Other – WIRED

A bit overstated, but…there’s a point there. Given the right circumstance, we have always trusted each other, it’s just now we have a stronger and more dependable network that allows us to make those bonds of trust quickly and productively.

The Next Vegas Will Be A City That Lets You Truly Disappear – If Only For A While – Searchblog

If cities become high-density surveillance sites, then we’ll need cities where we can escape it all.

Louis C.K. Is America’s Undisputed King of Comedy – GQ

I’ve always loved his work, which is one beat away from losing it entirely. But his take on tech is worth listening to: “phones are taking away the ability to just sit there. That’s being a person. Because underneath everything in your life there is that forever-empty thing…that knowledge that it’s all for nothing and you’re alone…. The thing is, because we don’t want that first bit of sad, we push it away with a little phone or a jack-off…. You never feel completely sad or completely happy, just kinda satisfied with your product, and then you die.”

Google+ Won (Or Why Google Never Needed A Social Network) -Searchblog

I know, two pieces in one week? But this needed to be said.

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The Next Vegas Will Be A City That Lets You Truly Disappear – If Only For A While

By - April 21, 2014

sayminority(image) My daily reading took me to two places today – to Compton, California, well-known for its crime to anyone who grew up in LA (as I did), and to this NYT piece, which muses that the city, once the place we went to disappear, is likely to be the first place where anonymity is no longer guaranteed. (Not coincidentally, Pell found both pieces as well in his excellent NextDraft).

The Compton story informs us that for one month in 2012, the LA police department – not exactly a bastion of trustworthy behavior – surveilled the troubled district of Compton from the air, creating a 24-7 record of everything that was “publicly” viewable from the air. This piece chills me on a number of fronts: average citizens do not presume they are being watched from above, first of all. Secondly, do we want a society where such surveillance is presumed (read a bit of science fiction if your answer is yes)? And thirdly, this “wide net” of proactively collected data creates a record of actions that can be “rewound” and used as evidence after the fact – opening a raft of unsettling questions. It reminds me of one of Eric Schmidt’s creepier utterances (also known as the “nothing to hide” argument): “If you have something that you don’t want anyone to know, maybe you shouldn’t be doing it in the first place.”

The debate around privacy is nuanced and complex, I don’t intend to litigate it here. But as I read the Compton piece, it struck me that this particular genie is fast escaping the bottle. The Compton experiment was conducted using an airplane, but if you think police departments in major cities aren’t adopting far less expensive drone-based programs, I’ve got a bridge in Brooklyn to sell you…

Anyway, the NYT piece picks up where Compton left off, musing that cities offer the economies of data scale that make all public actions knowable well beyond their initial realm of physical expression. You may run that red light thinking no one is looking, but increasingly, the state is in fact looking, and will issue a ticket regardless of whether or not you were trying to rush a sick child to the hospital.  Not to mention the density of well-intentioned information-seeking marketers eager to connect your public presence to location-based offers (and that same data is, of course, available to law enforcement).

Which got me thinking. If big cities, once the refuge of anyone looking for namelessness, anonymity, or a new beginning, if those same cities become instead places where you can’t escape surveillance, it strikes me that our culture will respond by creating cities that promise exactly the opposite of that experience. Vegas has famously adopted “What happens in Vegas, Stays In Vegas” as its motto. But I find Vegas one-dimensional and depressing (save what Tony is up to). Instead I see Amsterdam as a model. I imagine vacationers of the future will want a far broader promise – they’ll be drawn to cities that have adopted a “no surveillance” policy – and in this way, the new Amsterdams of the world will be cities where visitors and residents are guaranteed there are no drones circling the skies, and no electronic, connected surveillance on the streets as well, beyond the time honored cop walking his or her beat.

Now that sounds interesting. I know I’d visit such a place on a regular basis, especially if the art (and the beer) was good…

Else 3.10.13: Satoshi, Snowden, Google, And The Meaning of it All

By - March 10, 2014

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The past week spun with controversy and breaking news around many of our society’s most interesting conversations: The elusive founder of bitcoin was identified, or perhaps not, Edward Snowden popped up at SXSW (by video, of course) and submitted testimony to the EU, the Aereo case is on its way to the Supreme Court (and launched in Austin at SXSW, of course), and in the end, we all long for something more. To the links….

The Face Behind Bitcoin – Newsweek The week’s most sensational story, which created a backlash worthy of the story’s claim.

Google’s Game Of Moneyball In The Age Of Artificial Intelligence – ReadWrite If the future of everything is tied to how we manipuate information through algorithms, then it makes sense to get as many of the brightest minds on your team. Also from ReadWrite:  Google At SXSW: The Internet Is Accelerating Social Change On A Global Scale In which Chair Eric Schmidt and Ideas Director Jared Cohen opine on the role of technology in autocracies (uncertain it’s a positive force, this is a shift from early techno optimism, I’d warrant).

Snowden Gives Testimony To European Parliament Inquiry Into Mass Surveillance, Asks For EU Asylum – TechDirt A nice overview of Snowden’s recent written testimony to the EU Parliament. Most interesting was his documentation of how the NSA plays one European country off the other to gain access to a plurality of data in each.

The Aereo Case Isn’t About Aereo, But About The Future Of Cloud Computing And Innovation – Techdirt An interesting argument about the nature of property and media rights – much more is at stake than simply whether Aereo is in fact legal.

Strictly algorithm: how news finds people in the Facebook and Twitter age – theguardian.com How do ideas find the public in the age of inscrutable algorithms? I find myself wishing for better tools to find good news stories – I’ve been using Circa lately and met with its CEO at SXSW. It’s a promising start.

A vast hidden surveillance network runs across America, powered by the repo industry | BetaBoston If there’s a profitable way to tag something of value, it’ll get tagged. That’s the lesson behind this story on the automobile repossession industry, which most has tagged your car at some point in the past year or so.

The question big data can’t answer: why? – FierceBigData Lots of data helps us understand how and what, but people are best at figuring out why.

The Internet is ready for a new cultural shift. Discuss. – gapingvoid – Hugh senses a wave forming in the Internet seas, one that will value signal over noise. I’m all in favor, but this initial essay feels more like a plea than a formed idea; still and all, I agree.

Traffic of Good Intent: We Beat Fraud By Working Together

By - December 06, 2013

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Earlier this year I wrote a post titled It’s Time To Call Out Fraud In The Adtech Ecosystem. The overwhelming response to that riposte led to a lunch at this year’s IAB annual meeting, which then led to the formation of the Traffic of Good Intent task force (TOGI), an IAB-sanctioned working group composed of leaders from nearly every major player in the media and adtech industry. We’ve made a lot of progress since our first informal luncheon meeting nine months ago – I think the issue of fraud is now a top priority in our industry, and we continue work on best practices, solutions, and education. Today marks a milestone for our industry, the release of two white papers. Both are clearly written and intended to catalyze our progress to date.

Understanding Online Traffic Fraud gives a broad overview of the problem, laying out definitions of non-human traffic, and lays out half a dozen reasons you should give a sh*t. For me, the money quote is this: “Failing to root out traffic fraud funds criminal activity and supports organized crime.” Because as an advocate for publishers, that’s what fraud is: it’s stealing. It’s taking money and value out of the pockets of publishers, and putting it into the pockets of criminals. Along the way, any number of intermediaries also make money, and in the short term, they may be incented to continue to do so. We have to change that.

The second document, Traffic Fraud: Best Practices for Reducing Risks to Exposure, details actions all player in this ecosystem – brands, agencies, trading desks, technology providers, exchanges, publishers and more – can do to clean up this pervasive problem.

If you buy, sell, or traffic in online advertising, please read these documents, and help us move the needle even further. Fraud is not a problem that can be solved by pointing fingers or blaming one side or the other. We have to work together – and these documents are living proof that we can.