Wikileaks and the Dissent Tax - Social Business in 2011

How much does it cost to buck the system?  The Wikileaks drama exposes these costs, as Zeynep Tufekci argues in the Atlantic (Wikileaks Exposes Internet's Dissent Tax, not Nerd Supremacy).  In a public sphere, the state is accountable for our claims to free speech rights.  But in the public sphere of the internet, which is really "quasi-public" to the extent that it is hosted on privately owned computers and networks, enforcing free speech claims is a matter iof power and influence, rather than rights.  

This money, power, and influence, required in order to maintain speech outside the approval of the mainstream, is a tax on dissent.  

My favorite part:

What the Wikileaks furor shows us is that a dissent tax is emerging on the Internet. As a dissident content provider, you might have to fight your DNS provider. You might need to fund large-scale hosting resources while others can use similar capacity on commercial servers for a few hundred dollars a year. Fund-raising infrastructure that is open to pretty much everyone else, including the KKK, may not be available. This does not mean that Wikileaks cannot get hosted, as it is already well-known and big, but what about smaller, less-famous, less established, less well-off efforts? Will they even get off the ground?

We obey both private "terms of service" and public "laws" with very different schemes for collecting and acting upon the will of the "governed."  This is as troubling as it is intractable- if we're not going to stop using Facebook (as the failed "opt-out day showed) what is our recourse for a transgression?  What is our mechanism for governing?

The dilemma facing any private organization operating in the quasi-public sphere is this: When in conflict, should the company choose its own self interest over the claims of its customers or other constituents?  The libertairian view would be that the customer's relationship with a firm is expressed through contracts, and thus the terms of service become all the more important, regardless of the perfuctory acceptance and incomprehensible language usually involved.

Participatory mass media have consequences. The increasing share of our private lives that are mediated by privately owned platforms, threatens our freedom.  This is not merely because these communications are usually trivial to rather than substantive.  We treat Facebook as though it is replaceable, and on the mean, we have conversations of relatively low value.  However, the outlier dioscussions, where the value of any given conversation rises (say, a Wikileaks fan page on Facebook), that run counter to the requests of the state or the operator of the quasi-public, yet wish to take advantage of the same frictionless communications, are ultimately at the whim of the operator.  

So we should be interested in the ability of the masses to force change in largely private institutions governing the public sphere.  Do these organizations conduct themselves in transparent ways?  Do they see themselves through the eves of the constituent?  Do they fear illegitimacy and crave the affirmative consent of the community?

The institutions which consciously choose to live by such a combination of rules and maxims, without the coersion of the state, form the businesses most likely to attract the copnsumers of the future.  

We must admit that the conduct of many of our institutions, who do not live by such principles, often find themselves subject repeatedly to regulation and in the absence of effective oversight, to public outcry that results in significant value destruction.  BP.  Enron.  WorldCom.  Lehman Brothers.  The revelation that wikileaks is holding a trwasure trove of documents that reveal the executive operations and attitudes of Bank of America, and the idea that BofA holds little interest in seeing such information released, is not about the power of Anonymous, or WikiLeaks, or any Nerd Hacker Politics.  The simple fact remains that it is no longer easy to keep secrets, but it is harder still to operate a financial institution that exploits the masses a nickel and a dime at a time and transforms that exploitation into "wealth" for the few, because it is clear that transparent discussion of such a scheme would prompt outrage.  We shall see what WuikiLeaks can provoke.

More than an advertising and marketing technology, the social channels which comprise this "quasi-public" sphere present the opportunity to encourage private entities to change their business, change their governance, and otherwise comport themselves in with decency in public.  This is the frontier of social business design, and it's going to be a compelling trend in 2011.

 

FedEx vs. UPS = people vs. logistics.

“Before he could play a FedEx courier on TV, he had to become one.”

 

I saw a :15 pre-roll on TheStreet.com  with a  companion banner inviting me to see more on Youtube…followed that link to this behinds the scenes and deep experience in their branded channel.

This is really a fantastic campaign- Much deeper than the funny but average “Retirement” spot all by itself. FedEx deserves credit not just for media planning that enhances the storytelling, but for the larger effect of investing me in the journey of this person and the human experiences he’s having: learning a new job, meeting people who ship and receive packages…and by the end they have a story I care about. 

Anyone think this is working better than the “Ben is Logistics” work from UPS? Me too(United Parcel’s smart choice in names notwithstanding).

GOOG 3G/4G Spectrum Patents from Nortel Key to World Domination

Over at SAI, the chart of the day suggests that ChromeOS is a jab at Windwows (duh) and that Google needs the OS to succeed because it is the best hope to kill a weaker Microsoft.  Despite Microsoft's attempts to break out of the doldrums, and the extreme diversification of their product offerings (many of which never stood a chance of working)- Windows remains the cash cow for the giant.

If I were Google, I wouldn't try to win the war against Windows under current conditions; I would need more things to fall into place.

Android users are wising up to the Google Platform, and applications for Android are proliferating.  Windows Phone 7, how are you feeling?

Bing is getting better, has differentiated itself and is integrating with Facebook more obviously (the future of social search is very scary for any company that does not follow Bing's lead)- that's got to be scary for Google.

ChromeOS apps would all be web apps, and the value proposition would have to involve the cloud, and applications that are enhanced by always on-data networks.  WiFi in the current sense just will not cut it.  You know what would?  3G/4G wireless connectivity built in.  

ChromeOS laptops might be a miserable failure like the Nexus one, but if Google sold them at a loss, they'd exact a far more painful loss on Microsoft.  With onerous license fees from the essential connectivity, Google has to own the key patents in order to reduce its costs.  This illuminates why Google may be fighting so hard against Apple and RIM for Nortel's 3G/4G patents.

When yo sign into Google Apps, use email, docs, spreadsheets, watch Youtube videos in the Chrome browser, and android apps all day, getting served advertising by Doubleclick until you remotely program your Google TV from your android phone and watch The Office when it's convenient for you...that's when Microsoft dies.  And with the exception of GoogleTV, I haven't named one thing above that sucks.  

To do the same thing on Windows/microsoft/Bing/MSN/Xbox, you're making some compromises along the way, for sure.  It's not a done deal, but it's for all the marbles.

Gifts I Want, from Staples

No, no, it's ok, I have everything I want.  You don't need to get me anything.  Really?  What's this?  Socks?  (Actually, I just bought new athletic socks for running, no joke from Amazon (Affiliate Link).

But what I'm really exited about, gift wise, is this page used by Staples email marketing to promote thier Twitter comtest.  Let's face it, brands usually need to give prospective followers something exciting to do - classic what's in it for me.

Things I like about this page:

  1. I arrived via email- always try to support social with email
  2. Choose your prize (one of 5 gifts pictured, showing rage of the Brand as well)
  3. Emphasizes following @staplestweets
  4. Holiday Tweet generator (though I wish it had some more suggestion and was less “mad libs”

What are your favorites this holiday season? 

Jon Sculley: Being Steve Jobs Boss

Interesting article in Bloomberg Business week about John Sculley's new book in which he discusses his tenure after leaving Pepsi and becoming CEO of Apple.

This bit confirms what I have long said about Steve Jobs: that he's really good at saying NO, but that is OK because he is a genius.  If he were also wrong, it would be disaster. As culley putrs it:

 

Q:That drives some people a little bit crazy. Did it drive you crazy?

A: It's O.K. to be driven a little crazy by someone who is so consistently right. 

 

Guggenheim Biennial: Live and on YouTube tonight 8PM!

Noticed this morning that the YouTube logo was not as exepcted:The Museum half of the logo execution above links to the YouTube Play channel.  I'm not sure if I somehow missed this in previous years, or if this is a Biennial that begins now, but the custom YouTube channel execution is interesting:

This is leading up to a Live Stream event tongiht at 8pm from the Guggenheim.  Presumably, watch there or live online at 8PM ET: on YouTube Play.  

UPDATE: I just went to Foursquare to link to the Guggenheim, and discovered a special!

"Check in at the Guggenheim’s Art After Dark: YouTube Play event on Fri, Oct 22, 9pm-midnight and enter to win a YouTube Play prize, while supplies last. Show your check in at the Info Desk to win!"

If the Guggenheim can do it, with funding from HP and Intel, can your brand do something this interesting?  

Join the Fight to End Breast Cancer

I'm reposting a note my sister sent out about our Mother - we're running the Susan G Komen Race for the Cure in honor of our mother's successful fight against cancer.    You can donate to our effort using this link or follow the offline instructions Miriam lists below.

Dear Friends and Family,

I hope this note finds you well.

I'm writing because I'd like you to join me in celebration! This week our mom Deborah received news of yet another cancer free screening! I remember the day in March of 2008 when she shared with us that she had been diagnosed with breast cancer. I wanted to fight it! Now that she is cancer free I want to make sure that others can achieve a similar winning outcome. 

On Sunday September 12th we'll be running in the Susan G. Komen Race for the Cure in Central Park. It's a 5K race to raise money in the fight against breast cancer. 

Our team, "Team Bust a Move" has a fund-raising goal of $2000 this year.  Please help me reach that goal with your financial support.  Online donations are simple, and the site is secure.  Please go to my fundraising page and make a tax-deductible donation online a thttp://www.komennyc.org -- click on "Sponsor a Race Participant" and search for my name.

If you prefer, mail your donation today to:

Komen Greater NYC  Race for the Cure
P.O. Box 9223, GPO
New York, NY 10087-9223

Please make your check payable to: Susan G. Komen for the Cure and add my name in the memo so that I will be credited for your donation.

Thank you in advance for your support. It means so much to us!

Wishing you all a happy and healthy new year,

Miriam and Jake Williams, Ben Bloom, and Rachel Rothman

Is Android really "open"?

Reading The dirty little secret about Google Android, I've been enjoying the insightful analysis of how Apple's decision to free the device from the restrictions of the carrier were key to the identity of the device, and seem more in keeping with what Google originally promised with the Nexus One.  

Unfortunately, the Nexus One flopped.  The non-Apple customers buy their wireless devices and service very differently.  Mass-market phones, even smart phones, need marketing spend behind them, and those campaigns are linked to carrier restrictions and modifications which compromise the "open" vision.  The upshot, according to the article:

the consequence of not putting any walls around your product is that both the good guys and the bad guys can do anything they want with it. And for Android, that means that it’s being manipulated, modified, and maimed by companies that care more about preserving their old business models than empowering people with the next great wave of computing devices. 

I think this rolls back into the S-Curve of technology adoption.  

[credit: Wikipedia]

As the market matures and a it becomes a mass market product,  smart phones and apps become both more standardized and more understandable for the average community.  We see and hear idiotic advertisements exhorting us to be "twin texting turbos" with the Droid 2.  And this is great for Verizon's bottom line, for marketers and developers launching Android apps, and for mobile web content growth.  But it basically sucks for the innovators who want to be able to get a great device and move from carrier to carrier in the US market.

Other perspectives: Nic Brisbourne of DFJEsprit writes

[T]he longevity of the app paradigm versus open web standards will depend in large measure on who wins the hardware battle.  Open standards at the software level probably will probably only prevail if hardware manufacturers with a PC mindset prevail over those with a preference for closed ecosystems...

Unfortunately, the principles of openness have been interpreted to mean an open app ecosystem, and haven't changed the economics of the closed carrier/device model in the US.  Google wants a big market for Android apps and as many users as possible, and that motivation is at cross-purposes with the open-ness that geeks want.

 

 

A man's reach should exceed his grasp: why Netflix killed Blockbuster

Blockbuster chief of digital strategy is quoted in Fast Company:

You can always say I wish I did X and not Y. But if you asked me in 2009 whether we'd be the only one in the mobile space selling movies other than Apple and whether we'd have Blockbuster On Demand--never in my wildest dreams would I have aimed this high. [emphasis is mine].

What's the point of a strategy if you can execute on it and pass your own dreams? No wonder my money is on Netflix FTW.

On Being an NWC Backer

About a year ago, for a period of around 3-4 months, I was a paying member of New Work City.  I have always been interested in the evolution of the workforce around new technologies, and so I was a spectator of this project for a long time.  When my professional needs aligned with the NWC model, I thoguht, this makes sense for me, as more than an experiment.

Having known Tony via nextNY I suppose I had less of a need to be SOLD on the experience actively, but I will say that if anything, the community under-promises and over-delivers.

It's subtle, but Peter Chislett and Tony and great folks like Frederic Guarino and Mark Bursteiner were fun to be around, full of optmism, and showed how working from the Library or the Cornell Club (some of my favs at the time) were missing something.  Those venues didn't offer stimulating conversation, beta invites to cool projects, or a sense that no matter how f#cked the economy seemed in those days, that we could make it better by our own bootstraps.

This blog is hosted on Squarespace largely as a result of meeting Dane Atkinson at New Work City one day.  NWC will find you business partners, customers, friends, and drinking buddies.  Some of them might like Iced coffee as much as you do (cheers Peter!)

My professional needs changed a bit at the end of the summer and I ended my membership, but I remain supportive of Tony and New Work City's way of discovering the best way to do things with smart and dedicated experimentation.

I pledged my support to NWC, and I'm letting you know I support NWC on Kickstarter not only because it sure looks like Tony is going to do some crazy stuff, but if you believe in something, helping is better than watching.

Who cares if the cool kids leave Facebook?

The cool kids are leaving Facebook, says Pace Lattin based on data from InsideFacebook: the 18-35 demographic is now having negative growth in this "early adopter" demographic.   I can't yet find the raw data, but let's assume the trend is true.  Let's assume that the explosive growth of Facebook for mobile doesn't have anything to do with it. 

Any platform that requires the "cool kids" to be there for it to be successful will ultimately suffer the same fate.  We can't all be East Village hipsters enjoying our own exclusive online party, with VCs chomping at the bit to try to invest in the things we think are cool.  Even if all the cool kids leave, Facebook will still have a huge business with the uncool kids.

However.  Viewing Facebook itself as the cornerstone of social is just false. They beat out all the other social networks, more or less.  Round 1: Facebook.  Bigger, longer term, the interoperability of social graphs will make the choice of any one web site unimportant.  

Any platform that requires the "cool kids" to be there for it to be successful will ultimately suffer the same fate.  We can't all be East Village hipsters enjoying our own exclusive online party, and there will continue to be plenty of business opportunities for Facebook even if those users leave.

However.  Viewing Facebook itself as the cornerstone of social is just false. They beat out all the other social networks, more or less.  Round 1: Facebook.  Bigger, longer term, the interoperability of social graphs will make the choice of any one web site unimportant.  

The fact is, hipsters still have parents, and teachers, and friends they want to connect to, and some they want to be able to ignore.  Technologies built on opening the social graph and intelligent selectively sharing the content we ourselves consume is the direction we're heading.  

 

Round 2: unknown.

we haven't really seen the companies that are thinking about this.  Check out where Diaspora is going these days, and see the interoperable social  future.  

 

 

Closing the sale by being human

Looking for data on the auto shopping behaviors in social media, this video from Automotive Digest featuing Hans Van Order, CEO of UDC, realy stands out.

The theme of this video, "Time to be human again" is spot on- maintaining your existing relationships by being human is something you can do every day.  Don't rely on a computer, a twitter bot, or Google Adwords to do these for you.  The technology is a means to reach out, but the tech is meaningless without the human touch.  

CRM is certainly easier with certain kinds of technology, but being human is what really closes sales.

 

Help a millenial with experimental advertising!

Shelly Palmer provoked me to think about whether I am "too into technology to understand real business."  Yikes!

I'm sympathetic to the idea that many "social media" people live in a reality-exclusion zone where they only buy products from brands they can @message on Twitter.  On the other hand, the “real business” folks can probably wait it out, but more and more of them are starting to wonder.

I talked to a small outdoor advertising business owner who might not be ready…but he’s intrigued.  He gets online marketing and does aggressive SEM advertising. But social?

The shift to social marketing certainly made a splash but isn’t sustainable, really. In the early days of Twitter, most of the buzz about the promise of the service to transform marketing was being made by marketing people on Twitter.  Is the future of one-to-one, fragmented media a self-fulfilling prophecy? Perhaps.

That being said, we’re starting to see the ways in which pure awareness advertising shifts into engaging digital and offline experiences that aggregate attention rather than interrupting a piece of content. 

Advertising remains real and necessary, but it will increasingly be built around producing perceived value in and of itself. Pepsi’s PepsiCo10 strategy to take Refresh one step further and start funding new tech entrepreneurs is an bold example, and even if it’s on the wrong side of Wannamaker’s 50%, at least some millennials may get jobs.

Think Differently about Facetime and your college years

At about 1:20 in the iPhone4 video Scott Forstall imagines a Facetime call with his (future) college-age kids. Really?

Really?  It was cool when i could email my parents from my dorm room, and ok, I can see the appeal for being able to call them from the lawn where I'm studying.  But havging them video-call me?  Whenever they wanted? 

If there are iPhones in 2017, I'm guessing that most calls to college students after 10pm on weekends go straight to voicemail.

Sunday Linkfest- Tornado Watch Edition

If you go crazy for Bravo's reality TV, you likely fit into one of three targets of theirs: “Wills and Graces” “P.T.A. Trendsetters,” “Metrocompetitors” or “Newborn Grown-Ups” Fascinating analysis of the power of deep research and over-serving a small and passionate target in We’ll Make You a Star (if the Web Agrees)

 I usually enjoy Corner Office, but this one point really resonated with me: company culture is that power of thinking you can win when the odds say you're going to lose big: Corner Office with Jen-Hsun Huang of Nvidia

Harvard Economist Gregory Mankiw lays out a very sound analysis of the things we tax, and why we tax them in Can a Soda Tax Save Us From Ourselves?

For further study, an infographic Health Spending vs. Results

Happy tornado watch!

Your privacy's fate: Sealed with a Click

I grabbed this just now on my Facebook home page: a sponsored Link with the Gmail/AOL/MSN logos, and my email address in bold, Thanking me?

Facebook_Gmail_ad.egg  on Aviary

I normally would have ignored it, but frankly I was curious. I clicked. The result, however, was insidious:

So now I can see what the plan is- Facebook wants to keep an eye on your Google account to make sure you don't connect to someone by email without also connecting them to Facebook.

It's hard to know what the cumulative effect of constant authorizations, approvals, and stored passwords really is, but I predict one day it sneaks up on you, an accidental overshare or ads that seem to insidiously follow you whenever you want?  A friend who lands on a site they hate, to find out that you praised it before you knew how much it would offend them? 

Or will it be merely the insidious, price-discriminatiung ad where you get to fly to Fort Lauderdale for $389, but your friend flies the same itinerary for $250 with a free checked bag?

Scary? Only sometimes.  But it all started with one click.

 

Cause Marketing: We see you!

A facebook friend liked a Facebook ad by a Philly-based Bongo Agency, so I went to see what this agency was doing with Facebook.  I discovered an interesting question about Cause Advertising.

KFC's pink buckets are a great example.  My response in the FB thread:

What continues to baffle me about KFC is the unhealthy element of their food. Even if they are supporting breast cancer research, I feel like the brand is mobilizing moms to make their families fat.  Breast cancer is a worthy opponent (my mom is a survivor), but what about obesity and heart disease?  What about teaching kids healthy eating habits?!! 

I think a more thoughtful tie-in between the brand/product and the cause is key to making cause marketing successful.

I read the other day that the American public is essentially addicted to low prices and discounting in retail; until we agree that we will pay more for higher quality, healthy, safer products, that are better for the environment, I think marketers will rely on Cause marketing to use philanthropic sentiment to justify a premium price.

What do you think?

PS: don't miss, from the new Saatchi blog: 10 Ways to Communicate with Moms.

Revenue Growth vs. Innovation

Yesterday's whipsaw of a market swing had me concerned, but only because of how little the "numbers" reflect whether we're taking the steps necessary to right the ship. 

Planet Money's Jacob Goldtein is exactly right in pointing out Why More Jobs = Rising Unemployment -our rosy view of job growth is a reminder that firms must replenish their human capital to realize lasting gains in the marketplace for goods and services.

Check out this gem from the WSJ (my empahsis added):


"Companies are still trying as hard as they can to achieve output gains without adding to their work forces," said Nigel Gault, an IHS Global Insight economist. "It's getting more difficult to do that." -"Productivity Continues to Rise but Breakneck Pace Slows"


If companies continue to please the short term desires of Wall st, we'll continue to see companies more worried about "hitting their numbers" than hiring the workers who will create the next generation of profitable products and services.

So in the short term we preserve the "good news" of profits, only to stew in the "bad news" later: underemployment, restrained innovation, and a shrinking tax base to pay for our ballooning gov't spending and colossal debt.