I’ve written up an overview of the lineup at FMP’s second annual Signal:Chicago conference over on the FMP site. Highly recommended, it’s a very good event.
Speakers include Andrew Mason, CEO of Groupon, Scott Howe, CEO of Acxiom, Laura Desmond, CEO of Starcom Mediavest Group, and Carolyn Everson, VP of Global Advertising for Facebook.
If you’re anywhere near Chicago in September, or even if you’re not, this is one that’ll be worth attending. We’re exploring the role of data in marketing, as well as my favorite topics of mobile, real time, local, and social, of course. Check it out.
Both these posts tackle the emerging world of “stream”-driven content, painting them as opposite to the format we’ve pretty much used for the past 20 years – “page”-based content (like this page, for example). An established, at-scale business model exists for page-driven content, and it’s called display advertising. And anyone who’s been reading this site knows that display advertising is under pressure from two sides: first, the rise of massive platforms that harvest web pages and monetize them in ways that don’t pay the creators (Facebook, Twitter, Pinterest) and secondly, the dramatic growth of programmatic buying platforms that do pay creators, but the payment amounts are too low to support great content (second generation ad networks called DSPs, backed by agencies and their marketing clients).
Earlier in the week I was interviewed by a sharp producer from an Internet-based media company. That company, a relatively well-known startup in industry circles, will be launching a new site soon, and is making a documentary about the process. Our conversation put a fine point on scores of similar meetings and calls I’ve head with major media company execs, content startup CEOs, and product and business leaders at well known online content destinations.
When I call a producer “sharp,” I mean that he asked interesting questions that crystalized some thoughts that have been bouncing around my head recently. The main focus of our discussion was the challenges of launching new media products in the current environment, and afterwards, it struck me I might write a few words on the subject, as it has been much on my mind, and given my history as both an entrepreneur and author in this space, I very much doubt it will ever stop being on my mind. So here are a couple highlights:
* We have a false economy of valuation driving many startups in the content business. Once a year or so, an Internet media site is sold for an extraordinary amount of money, relative to traditional metrics of valuation. Examples include The Huffington Post, which sold for a reported 10X annual revenues, and, just this past week, Bleacher Report, which sold for even more than that ($200million or so on revenues, from what I understand, that were less than $20mm a year).
My goal was to draw a straight line from a Twitter bot to the real, live person whose face the bot had stolen. In the daily bot wars–the one Twitter fights every day, causing constant fluctuations in follower counts even as brands’ followers remain up to 48% bot–these women are the most visible and yet least acknowledged victims…
There it was, tossed in casually, almost as if it was a simple cost of doing business – nearly half of the followers of major brands could well be “bots.”
Man, I wish I had, because I could have asked Marc if it was his life-goal to turn David’s predictions into reality. Marc is well known for many things, but his recent mantra that “Software Is Eating the World” (Wall St. Journal paid link, more recent overview here) has become nearly everyone’s favorite Go-To Big Valley Trend. And for good reason – the idea seductively resonates on many different levels, and forms the backbone of not just Andreessen’s investment thesis, but of much of the current foment in our startup-driven industry.
Recently my site has been hit with a ton of “manual spam” – folks who are paid to post short comments in the hope they’ll appear and drive pagerank back to various sites (or perhaps just increase their or their clients’ visibility.) It’s not hard to kill these comments, though it’s a bit of an irritant when they pile up. I don’t really mind, because their full-blown amateur-hour earnestness is pretty entertaining. Besides leaving chuckleworthy comments like “Facebook now 100 billion company there big really now”, the spammers also leave behind their user handles, which are simply priceless. Enjoy:
A couple of days ago Google released its latest “Transparency Report,” part of the company’s ongoing commitment to disclose requests by individuals, corporations, and governments to change what users see in search results and other Google properties such as YouTube.
The press coverage of Google’s report was copious – far more than the prior two years, and for good reason. This week’s disclosure included Google’s bi-annual report of government takedown requests (corporate and individual requests are updated in near real time). The news was not comforting.
Part of the research I am doing for the book involves trying to get my head around the concept of “Big Data,” given the premise that we are in a fundamental shift to a digitally driven society. Big data, as you all know, is super hot – Facebook derives its value because of all that big data it has on you and me, Google is probably the original consumer-facing big data company (though Amazon might take issue with that), Microsoft is betting the farm on data in the cloud, Splunk just had a hot IPO because it’s a Big Data play, and so on.
But I’m starting to wonder if Big Data is the right metaphor for all of us as we continue this journey toward a digitally enhanced future. It feels so – impersonal – Big Data is something that is done to us or without regard for us as individuals. We need a metaphor that is more about the person, and less about the machine. At the very least, it should start with us, no?
Elsewhere I’ve written about the intersection of data and the platform for that data – expect a lot more from me on this subject in the future. But in short, I am unconvinced that the current architecture we’ve adopted is ideal – where all “our” data, along with the data created by that data’s co-mingling with other data – lives in “cloud” platforms controlled by large corporations whose terms and values we may or may not agree with (or even pay attention to, though some interesting folks are starting to). And the grammar and vocabulary now seeping into our culture is equally mundane and bereft of the subject’s true potential – the creation, sharing and intermingling of data is perhaps the most important development of our generation, in terms of potential good it can create in the world.
The headlines about Facebook’s IPO – along with questions about its business model – are now officially cringeworthy. It’s an ongoing, rolling study in how society digests important news about our industry, and it’s far from played out. But we seem at an interesting tipping point in perception, and now seemed a good time to weigh in with a few words on the subject.
Larry Lessig is an accomplished author, lawyer, and professor, and until recently, was one of the leading active public intellectuals in the Internet space. But as I wrote in my review of his last book (Is Our Republic Lost?), in the past few years Lessig has changed his focus from Internet law to reforming our federal government.
But that doesn’t mean Lessig has stopped thinking about our industry, as the dialog below will attest. Our conversation came about last month after I finished reading Code and Other Laws of Cyberspace, Version 2. The original book, written in 1999, is still considered an authoritative text on how the code of computing platforms interacts with our legal and social codes. In 2006, Lessig “crowdsourced” an update to his book, and released it as “Version 2.0.” I’d never read the updated work (and honestly didn’t remember the details of the first book), so finally, six years later, I dove in again.
It’s a worthy dive, but not an easy one. Lessig is a lawyer by nature, and his argument is laid out like proofs in a case. Narrative is sparse, and structure sometimes trumps writing style. But his essential point – that the Internet is not some open “wild west” destined to always be free of regulation, is soundly made. In fact, Lessig argues, the Internet is quite possibly the most regulable technology ever invented, and if we don’t realize that fact, and protect ourselves from it, we’re in for some serious pain down the road. And for Lessig, the government isn’t the only potential regulator. Instead, Lessig argues, commercial interests may become the most pervasive regulators on the Internet.