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.
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.
(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?!
(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.
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.
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).
The world needs more open platforms. The term is loaded, but it’s worth unpacking. To me, an open platform is a consistent opportunity space where anyone – without prior permission – can attempt to create value, and the market gets to vote on that attempt.
(image) I’m a fan of “open.” Anyone who knows me, knows this about me.
But I’m also a fan of “easy.” And of “good design.” So, for the past couple of years, I’ve been an iPhone user, mainly because it was easy, and had better design than any alternative. Also, my company supported the iPhone, even though it was terrible for calendar, contacts, email, you know, pretty much everything that mattered to me.
But because I’m no longer day to day at my company, I’ve been eager to move away from the iPhone, for many reasons, including the extraordinarily awful experience I recently had, chronicled here. And I really like the philosophy of Android. It’s open, it’s hackable, it’s generative in all the right ways.
(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.
Earlier this year I wrote a long post about the “death of display,” since then, I’ve consistently been asked about it, and in particular, to expand on my thoughts around display advertising economics, and the prospects for what might broadly be termed “independent creators of content,” or what I call “the independent web.”