With Google’s 2012 Zeitgeist, You Won’t Learn Much. Why?

Guess what? This guy was big this year. Really!

I think readers know that on balance, I’m a fan of Google. I recently switched to the Nexus 4 (more coming on that front as I settle into really using it). I believe the company has a stronger core philosophy than many of its rivals. Overall, given that it’s nearly impossible to avoid putting your data into someone’s cloud, I believe that Google is probably the best choice for any number of reasons.

But that doesn’t mean I won’t criticize the company. And every year about this time, I end up doing just that.

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As Long As It’s Legal, Corporations Will Act Selfishly

(image) There’s a hubbub in the press this week about Google employing a “Double Irish – Dutch Sandwich” tactic to funnel profits from Europe over to Bermuda, where there is no corporate income tax. Reuters reports that the company saved around $2 billion in taxes by employing the structure, which, as far as I can tell, is perfectly legal.

Of course, there’s a difference between that which is perfectly legal and that which seems, well, unseemly. Creating multiple shell companies across four nation states so as to avoid paying taxes may make shareholders happy, but it sure has pissed off a bunch of (revenue starved) countries in the EU. The article mentions the UK, France, and Italy as all investigating Google (and Facebook, among others) for potential abuse of the tax code.

To which I must say this: What else did you expect?!

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Locked and Bloated

(image Vator News) Companies get big. Companies gain market dominance. Companies slowly pivot from their original values. Companies justify those shifts with nods to shareholder value, or consistent user experience, or inconsistent implementations of their platforms by (former) partners.

It happened to Sun. To Microsoft. To Apple. To Google. It happened in the entertainment business, it’s happening in agriculture, for goodness sake.  Now it’s happening to Facebook and Twitter. (The latest example: Instagram CEO feels Twitter card removal is the correct thing…).

I don’t have any problem with any of that, it is to be expected. The services all these companies provide are great. They’re simply wonderful. And as they get big, they get public, protective, and defensive.

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Dave Pell on Facebook’s Gift to Itself

I enjoy NextDraft, an email newsletter penned by Dave Pell each day. I value point of view and voice in any medium, and Dave’s got it. I think Searchblog readers would appreciate this item, so I’ve reposted it here. Dave, I hope you don’t mind…

The Gift of Data

Facebook knows a lot about you. But there are a couple things that would make its collection of personal data a whole lot more valuable: Your home address and your credit card number. In addition to having a big revenue potential, Facebook’s new birthday gift store could lead to a data treasure trove (and herald a new era when just typing “Happy Birthday” when prompted is no longer enough).

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Facebook Is Now Making Its Own Weather

(image) The past month or so has seen the rise and fall of an interesting Internet tempest – the kind of story that gets widely picked up, then quickly amplified into storms of anger, then eventually dies down as the folks who care enough to dig into the facts figure out that the truth is somewhere outside the lines of the original headline-grabbing story.

The topic this time around centers on Facebook’s native ad unit called “Sponsored Stories,” and allegations that the company is gaming its “Edgerank” algorithm such that folks once accustomed to free promotion of their work on Facebook must now pay for that distribution.

Edgerank determines the posts you see in your Facebook newsfeed, and many sites noticed that sometime early this Fall, their traffic from Facebook shrank dramatically. Others claimed traffic had been declining since the Spring, but it wasn’t until this Fall that the story gained significant traction.

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Tweets Belong To The User….And Words Are Complicated

(image GigaOm) Like many of you, I’ve been fascinated by the ongoing drama around Twitter over the past few months (and I’ve commented on part of it here, if you missed it). But to me, one of the most interesting aspects of Twitter’s evolution has gone mostly unnoticed: its ongoing legal battle with a Manhattan court over the legal status of tweets posted by an Occupy Wall St. protestor.

In this case, the State of New York is arguing that a tweet, once uttered, becomes essentially a public statement, stripped of any protections. The judge in the case concurs: In this Wired coverage, for example, he is quoted as writing “If you post a tweet, just like if you scream it out the window, there is no reasonable expectation of privacy.”

Twitter disagrees, based on its own Terms of Service, which state “what’s yours is yours – you own your Content.”

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Twitter Drops Other Shoe, Which You All Saw Coming, Right?

Way back in the spring of 2010, when Twitter was constantly under siege for “not having a business model,” I co-hosted “Chirp,” Twitter’s first (and I think only) developer conference. This was just two and half years ago, but it seems like a decade. But it was at that conference, in an interview with me, that then-COO (now CEO) Dick Costolo first laid out the vision for “the Interest Graph.” I wrote about this concept extensively (herehere, here), because I felt that understanding the interests of its users would be the core driver of Twitter’s long-term monetization strategy.

Fast forward to now. Twitter today announced its “promoted” suite of ad units may now be targeted by user interest, which to me is a long-expected move that should clarify to anyone confused by the company’s recent announcements (cue link to recent tempest). Twitter’s statements around its decision to sever ties with Instagram and Tumblr couldn’t be more clear:

We understand that there’s great value associated with Twitter’s follow graph data, and we can confirm that it is no longer available to (insert company here)…

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Who’s On First? (A Modest Proposal To Solve The Problem with First- and Third-Party Marketing)

Early last month I wrote a piece entitled Do Not Track Is An Opportunity, Not a Threat. In it I covered Microsoft’s controversial decision to incorporate a presumptive “opt out of tracking” flag in the next release of its browser, which many in the ad industry see as a major blow to the future of our business.

In the piece, I argued that Microsoft’s move may well force independent publishers (you know, like Searchblog, as well as larger sites like CNN or the New York Times) to engage in a years-overdue dialog with their readers about the value exchange between publisher, reader, and marketer. I laid out a scenario and proposed some language to kick that dialog off, but I gave short shrift to a problematic and critical framing concept. In this post, I hope to lay that concept out and offer, by way of example, a way forward. (Caveat: I am not an expert in policy or tech. I’ll probably get some things wrong, and hope readers will correct me if and when I do.)

The “concept” has to do with the idea of a first-party relationship – a difficult to define phrase that, for purposes of this post, means the direct relationship a publisher or a service has with its consumer.  This matters, a lot, because in the FTC’s recently released privacy framework, “first-party marketing” has been excluded from proposed future regulation around digital privacy and the use of data. However, “third-party” marketing, the framework suggests, will be subject to regulation that could require “consumer choice.”

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What We Lose When We Glorify “Cashless”

Look, I’m not exactly a huge fan of grimy greenbacks, but I do feel a need to point out something that most coverage of current Valley darling Square seems to miss: The “Death of Cash” also means the “death of anonymous transactions” – and no matter your view of the role of  government and corporations in our life, the very idea that we might lose the ability to transact without the creation of a record merits serious discussion. Unfortunately, this otherwise worthy cover story in Fortune about Square utterly ignores the issue.

And that’s too bad. A recent book called “The End of Money” does get into some of these issues – it’s on my list to read – but in general, I’ve noticed a lack of attention to the anonymity issue in coverage of hot payment startups. In fact, in interviews I’ve read, the author of “The End of Money” makes the point that cash is pretty much a blight on our society – in that it’s the currency of criminals and a millstone around the necks of the poor.

Call it a hunch, but I sense that many of us are not entirely comfortable with a world in which every single thing we buy creates a cloud of data. I’d like to have an option to not have a record of how much I tipped, or what I bought at 1:08 am at a corner market in New York City. Despite protections of law, technology, and custom, that data will remain forever, and sometimes, we simply don’t want it to.

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Google’s “Mute” Button: Why Didn’t I Think Of That? Oh, Wait…

One of my pet peeves about our industry is how slowly we change – I understand it takes a long time to gather consensus (it took three years to get AdChoices rolled out, for example) – but man, why don’t the big players, like Google, innovate a bit more when it comes to display advertising?

Well, yesterday Google did just that, announcing a “mute this ad” feature that it will roll out across its network over the next few months. The feature does what you might expect it to do – it stops a particular ad from “following” you around the web. It will look like this:

 

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