The 26 words that “changed the internet.” Image NYT.
(This is a column I wrote for Signal360, P&G’s companion publication for its Signal conference, which I co-produce. It’s always fraught to weigh in on this fundamental piece of Internet legislation, so I welcome your thoughts!)
It’s difficult to find anything Congress agrees on these days, but when it comes to the much-misunderstood policy known as “Section 230,” it’s unanimous: this piece of 20th-century legislation needs to be fixed. And while such a fix may be needed, it could have a significant impact on how every company goes to market.
The Times’s piece decries all the ads on TV. But is this a surprise?!
The advertising world is uncomplicated at its core, and utterly bewildering when seen from the outside. The easy bit stems from a simple axiom: Wherever you can find the attention of potential customers, you pay to get your message in front of them. That’s the essence of advertising: paying for attention. It gets complicated by the details – the medium, the message, the targeting, the tech – but wherever customers gather, advertising will follow. There’s simply too much money to be made for it to be otherwise.
So it was utterly unsurprising to learn, a few hours ago as I write this, that there will soon be ads on PayPal, driven by the data the company collects. PayPal recorded 6.5 billion payments in the first quarter of 2024 alone, according to the Journal. The company plans on creating what’s known as a “retail media network” allowing advertisers to leverage PayPal’s data to target users both on platform and off.
The original MusicPlasma interface. Author’s musical preferences not included…
No Longer Mine
When I write, I like to listen to music. Most of my first book was written to a series of CDs I purchased from Amazon and ripped to my Mac – early turn of the century electronica, for the most part – Prodigy, Moby, Fat Boy Slim and the like. But as I write these words, I’m listening to an unfamiliar playlist on Spotify called “Brain Food” – and while the general vibe is close to what I want, something is missing.
This got me thinking about my music collection – or, more accurately, the fact that I no longer have a music collection. I once considered myself pretty connected to a certain part of the scene – I’d buy 10 or 15 albums a month, and I’d spend hours each day consuming and considering new music, usually while working or writing. Digital technologies were actually pretty useful in this pursuit – when Spotify launched in 2008, I used it to curate playlists of the music I had purchased – it’s hard to believe, but back then, you could organize Spotify around your collection, tracks that lived on your computer, tracks that, for all intents and purposes, you owned. Spotify was like having a magic digital assistant that made my ownership that much more powerful.
I stopped using Twitter over a year ago, as soon as Elon Musk took control of the place. I don’t miss it – it was already a pretty toxic place, and my tenure at The Recount, a political media company, ensured I had to engage with most of Twitter’s worst attributes.
But when Meta launched Threads, its Twitter clone, I figured I’d give the new service a try. I’d played around with Mastodon, but found it a bit sparse, and Meta’s commitment to the fediverse (still unfulfilled), plus its integration with Instagram (a built in network!) felt worth checking out.
(This is a preview of a piece I’m working on for Signal360, to be published next week.)
“The US litigates, the EU legislates.” That’s what one confidential source told me when I asked about theDigital Services Act and theDigital Markets Act, the European Union’s twin set of Internet regulations coming into force this year. And indeed, even as the United States government continues anendless parade of lawsuits aimed at big tech, the EU has legislated its way to the front of the line when it comes to impacting how the largest and most powerful companies in technology do business. It may be tempting to dismiss both theDSA and the DMA as limited to only Europe, and impacting only Big Tech, but that would be a mistake. It’s still very early – much of the laws’ impact has yet to play out – but there’s no doubt the new legislation will drive deep changes to markets around the world. And even if you aren’t a digital platform, your own business practices may well be in for meaningful change.
I’ve been following the story of generative AI a bit too obsessively over the past nine months, and while the story’s cooled a bit, I don’t think it any less important. If you’re like me, you’ll want to check out MIT Tech Review’s interview with Mustafa Suleyman, founder and CEO of Inflection AI (makers of the Pi chatbot). (Suleyman previously co-founded DeepMind, which Google purchased for life-changing money back in 2014.)
Inflection is among a platoon of companies chasing the consumer AI pot of gold known as conversational agents – services like ChatGPT, Google’s Bard, Microsoft’s BingChat, Anthropic’s Claude, and so on. Tens of billions have been poured into these upstarts in the past 18 months, and while it’s been less than a year into since ChatGPT launched, the mania over genAI’s potential impact has yet to abate. The conversation seems to have moved from “this is going to change everything” to “how should we regulate it” in record time, but what I’ve found frustrating is how little attention has been paid to the fundamental, if perhaps a bit less exciting, question of what form these generative AI agents might take in our lives. Who will they work for, their corporate owners, or …us? Who controls the data they interact with – the consumer, or, as has been the case over the past 20 years – the corporate entity?
Apparently the open web has finally died. This the very same week Meta launches Threads, which, if its first day is any indication, seems to be thriving (10 million sign ups in its first few hours, likely 50 million by the time this publishes…).
But before Threads’ apparent success, most writers covering tech had decided that the era of free, open-to-the-public, at scale services like Twitter, Reddit, and even Facebook/Insta is over. I’ll pick on this recent one from The Verge: So where are we all supposed to go now?
Welcome to the hellscape of “Made for Advertising” sites
This past Monday NewsGuard, a journalism rating platform that also analyzes and identifies AI-driven misinformation, announced it had identified hundreds of junk news sites powered by generative AI. The focus of NewsGuard’s release was how major brands were funding these spam sites through the indifference of programmatic advertising, but what I found interesting was how low that number was – 250 or so sites. I’d have guessed they’d find tens of thousands of these bottom feeders – but maybe I’m just too cynical about the state of news on the open web. I have a hunch my cynicism will be rewarded in due time, once the costs of AI decline and the inevitable economic incentives that have always driven hucksters kick in.
Given 250 is a manageable number for a mere mortal, I decided to ask the good folks at NewsGuard, where I’m an advisor, for a copy of their listings. Nothing like a tour through the post-apocalyptic hellscape of our AI future, right?
The Gather founding team from top left: Zan Doan, CTO, Sudhir Kandula, COO, Mengmeng Chen, Cofounder & CPO, Sumit Agarwal, Cofounder & CEO
A few weeks ago I was genuinely thunderstruck. My co-editor atP&G Signal (thanks Stan!) introduced me to a new company – one that promised to give consumers control over their personal data in new and innovative ways. At first I was skeptical – I’d seen quite a few “personal data lockers” come and go over the past decade or so. I even invested in one way back in 2012. Alas, that didn’t work out.
For as long as I can remember, I’ve been writing –over andover andover – about how the Internet’s central problem is the lack of leverage that consumers have over the data they co-create with the hundreds of apps, sites, and platforms they use. But data lockers never got any traction – most were confusing to install and run, and they all suffered from a lack of tangible consumer benefits. Sure, having a copy of all my personal data sounds great, but in the end, what can it do for me? Up till now, the answer was not much.
