When It’s This Easy To Take Someone’s Money…

Earlier in the month I wrote about fraud in the advertising technology ecosystem – a post which has spawned dozens of fascinating conversations that I will continue to write about here and elsewhere. But this past weekend I encountered another kind of scam – a combination of time-honored phishing (online identity theft via social manipulation) and good old-fashioned wire fraud.

My family has been going to a small island off the coast of Massachussets for my entire life – my grandparents are buried there, my great grandmother moved there around the turn of the century (1900, not 2000!). My mother owns a cottage near the beach, a cottage that my great-grandmother purchased nearly 100 years ago.

Suffice to say, I have a deep history with the place. But with a bevy of kids and friends descending upon us each summer, my family has outgrown the cottage, so we’ve started looking for a larger place to rent. Like most folks these days, we turned to the Internet. We fired up VRBO.com, a popular marketplace for quality vacation rentals. It’s a great site for checking the market, and my wife and I figured we might get lucky and find just the right place.

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

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.

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Amazon is Amazin’ Me

I’m a fan of Amazon, always have been, though my relationship with the brand has, ironically, never been particularly personal. I don’t feel emotional about Amazon, I feel – transactional. This despite the fact that I have probably spent more on the site than the combined college savings accounts for my three kids (Hi Kids!).

This changed today when I got this email:

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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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