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Hart Island

As Halloween approaches (and death itself, for all of us, eventually), I find myself thinking, Do zombies always have to be bad? And, What if zombies were good? And, Hey, maybe good zombies are what we call ‘angels’.

Then I find myself wondering where one would recruit armies of zombie angels (let’s call them “zangels”), besides your basic headstone-studded cemeteries. Then it comes to me: Hart Island, New York’s potters field, and home to a million or more of New York’s unclaimed dead, off the coast of The Bronx. What a great name and place for a movie starring zombie angels!

I see it opening on the plaque at the base of the Statue of Liberty, with that familiar passage from Emma Lazarus‘ sonnet The New Collosus:

“Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!”

The camera sweeps upward, past Liberty’s lifted lamp, to the lifting lid of a plain wooden coffin, topmost of a stack among many in a trench on Hart Island, where the City accumulates boxed bodies by the dozen before a bulldozer, operated by inmates from the Department of Corrections, mass-buries them.

Correction is the theme. The zangels, wretched refuse all, teeming on a shore forgotten by all but the forsaken living, stir awake on a holy mission: to warn the living that the gap between rich and poor is stretching to a breaking point more dangerous than any terrorist plot.*

The zangels aren’t decayed, but appear in their living form, absent the infirmities and temporal concerns that put them in the ground. And they have a plan.

First they confront the very inmates whose work on the island is burial. These they recruit to spread the word. But they do this selectively, starting with just one or two of the inmates, met by one or two of the zangels. The inmates, convinced (after first disbelieving, of course — gotta have that stage), plot next steps with the zangels, who then swim over to City Island, steal some fresh clothes off some clotheslines and head for meetings with a few of the zangels’ surviving friends, co-workers and loved ones. These too are shocked and disbelieving at first, but become disciples of the zangels, who are expert at disappearing and reappearing when necessary.

A code line — “Take liberty to Hart” — is used by the secretive but growing cohort of zangel disciples to organize meetings and start spreading the word.

Not sure what the big conflict with bad guys should be. Gotta have that too. Maybe the bad guys are Gordon Gecko types living in penthouses, working in high-floor offices, making money with work that creates wealth only for themselves. That’s a bit too Hollywood and pat, but I’m just thinking out loud right now, and need to get back to Real Work. But there are plenty of movie-making folk among readers here. I’m hoping those folks pick this up and run with it. I think it’s a hell of a good idea (puns intended).

Meanwhile, here’s a key resource that’s also the main cause:  The Hart Island Project, which seeks to de-shroud Hart Island, bring full respect to those buried there, open access to the public, and unearth and organize good records for those buried there. The project’s founder, Melinda Hunt (@hartisland), owns HartIsland.com as well as HartIsland.net and HartIsland.org. I’m sure she’d let the movie (provided it’s a good one) use HartIsland.com. (She also has a documentary on the island you can sample and buy here.)

Anyway, with Halloween front and center at the moment, I can’t think of a better way to organize and bring attention to a good cause by focusing on a Real Issue.

* Three good sources on this: Chris Hedges, writing about societal collapse and the seductions of warJoseph Stiglitz, whose latest book is The Price of Inequality: How Today’s Divided Society Endangers Our Future; and Stephen Lewis, a New York native and an authority on many relevant topics, blogging at Bubkes.com.

In , opens with this sentence: “On any person who desires such queer prizes, New York will bestow the gift of loneliness and the gift of privacy.” Sixty-four years have passed since White wrote that, and it still makes perfect sense to me, hunched behind a desk in a back room of a Manhattan apartment.

That’s because privacy is mostly a settled issue in the physical world, and a grace of civilized life. Clothing, for example, is a privacy technology. So are walls, doors, windows and shades.

Private spaces in public settings are well understood in every healthy and mature culture. This is why no store on Main Street would plant a tracking beacon in the pants of a visiting customer, to report back on that customer’s activities — just so the store or some third party can “deliver” a better “experience” through advertising. Yet this kind of thing is beyond normative on the Web: it is a huge business.

Worse, the institution we look toward for protection from this kind of unwelcome surveillance — our government — spies on us too, and relies on private companies for help with activities that would be a crime if the  still meant what it says. ( more than two years ago.)

I see two reasons why privacy is now under extreme threat in the digital world — and the physical one too, as surveillance cameras bloom like flowers in public spaces, and as marketers and spooks together look toward the “Internet of Things” for ways to harvest an infinitude of personal data.

Reason #1

The was back-burnered when  (aka ) got baked into e-commerce in the late ’90s. In a single slide  summarizes what happened after that. It looks like this:

The History of E-commerce
1995: Invention of the cookie.
The end.

For a measure of how far we have drifted away from the early promise of networked life, re-read ‘s “Death From Above,” published in January 1995, and his “Declaration of the Independence of Cyberspace,” published one year later. The first argued against asymmetrical provisioning of the Net and the second expressed faith in the triumph of nerds over wannabe overlords.

Three years later  was no less utopian. While it is best known for its 95 Theses (which include “” and ““) its most encompassing clue came before of all those. Chris Locke wrote it, and here’s what it says, boldface, color and all:

if you only have time for one clue this year, this is the one to get…
we are not seats or eyeballs or end users or consumers. we are human beings and our reach exceeds your grasp. deal with it.

Note the first and second person voices, and the possessive case. Our reach was everybody’s. Your grasp was companies’.

Fourteen years later, companies have won. Our reach has not exceeded their grasp. In fact, their grasp is stronger than ever.

Another irony: the overlords are nerds too. And  they lord over what Bruce Schneier calls a feudal system:

Some of us have pledged our allegiance to Google: We have Gmail accounts, we use Google Calendar and Google Docs, and we have Android phones. Others have pledged allegiance to Apple: We have Macintosh laptops, iPhones, and iPads; and we let iCloud automatically synchronize and back up everything. Still others of us let Microsoft do it all. Or we buy our music and e-books from Amazon, which keeps records of what we own and allows downloading to a Kindle, computer, or phone. Some of us have pretty much abandoned e-mail altogether … for Facebook.

These vendors are becoming our feudal lords, and we are becoming their vassals. We might refuse to pledge allegiance to all of them – or to a particular one we don’t like. Or we can spread our allegiance around. But either way, it’s becoming increasingly difficult to not pledge allegiance to at least one of them.

Reason #2

We have loosed three things into the digital world that we (by which I mean everybody) do not yet fully comprehend, much less deal with (through policy, tech or whatever). Those are:

  1. Ubiquitous computing power. In the old days only the big guys had it. Now we all do.
  2. Ubiquitous Internet access. This puts us all at zero virtual distance from each other, at costs that also veer toward zero as well.
  3. Unlimited ability to observe, copy and store data, which is the blood and flesh of the entire networked world.

In tech, what can be done will be done, sooner or later, especially if it’s possible to do it in secret — and if it helps make money, fight a war or both. This is why we have bad acting on a massive scale: from click farms gaming the digital advertising business, to the NSA doing what we now know it does.

Last month I gave a keynote at an  event in New York. One of my topics was personal privacy, and how it might actually be good for the advertising business to respect it. Another speaker was , a “gentleman hacker” and CEO of WhiteOps, “an internet security company focused on the eradication of ad fraud.” He told of countless computers and browsers infected with bots committing click-fraud on a massive scale, mostly for Russian hackers shunting $billions from the flow of money down the online advertising river. The audience responded with polite applause. Privacy? Fraud? Why care? The money’s rolling in. Make hay while the power asymmetry shines.

Just today an executive with a giant company whose name we all know told me about visiting “click farms” in India, which he calls “just one example of fraud on a massive scale that nobody in the industry wants to talk about.” (Credit where due: the IAB wouldn’t have had us speaking there if its leaders didn’t care about the issues. But a .org by itself does not an industry make.)

Yet I’m not discouraged. In fact, I’m optimistic.

These last few months I’ve been visiting dozens of developers and policy folk from Europe to Australia, all grappling productively with privacy issues, working on the side of individuals, and doing their best to develop enlightened policy, products and services.

I can report that respect for privacy — the right to be left alone and to conceal what one wishes about one’s self and one’s data — is far more evolved elsewhere than it is in the U.S. So is recognition that individuals can do far more with their own data than can any big company (or organization) that has snarfed that data up. In some cases this respect takes the form of policy (e.g. the EU Data Protection Directive). In other cases it takes the form of advocacy, or of new businesses. In others it’s a combination of all of those and more.

Some examples:

 is a policy and code development movement led by Ann Cavoukian, the Information & Privacy Commissioner of Ontario. Many developers, enterprises and governments are now following her guidelines. (Which in turn leverage the work of Helen Nissenbaum.)

, the Fondation Internet Nouvelle Génération, is a think tank of leading French developers, scientists, academics and business folk, convened to guide digital transformation across many disciplines, anchored in respect for the individual and his or her full empowerment (including protection of privacy), and for collective action based on that respect.

 is a Fing project in which six large French companies — Orange, La Poste, Cap-Digital, Monoprix, Alcatel-Lucent and Societe Generale — are releasing to 300 customers personal data gathered about those customers, and inviting developers to help those customers do cool things on their own with that data.

The  in the UK is doing a similar thing, with twenty UK companies and thousands of customers.

Both Midata and Etalab in France are also working the government side, sharing with citizens data collected about them by government agencies. For more on the latter read Interview with Henri Verdier: Director of Etalab, Services of the French Prime Minister. Also see Open Data Institute and PublicData.eu.

In Australia,    and  are working on re-building markets from the customer side, starting with personal control and required respect for one’s privacy as a base principle.

In the U.S. and Europe, companies and open source development groups have been working on personal data “stores,” “lockers,” “vaults” and “clouds,” where individuals can harbor and use their own data in their own private ways. There is already an  and a language for “” and “pclouds” for everything you can name in the Internet of Things. I posted something recently at HBR about one implication for this. (Alas, it’s behind an annoying registration wall.)

On the legal front, Customer Commons is working with the  at the Berkman Center on terms and privacy requirements that individuals can assert in dealing with other entities in the world. This work dovetails with , the  and others.

I am also encouraged to see that the most popular browser add-ons and extensions are ones that block tracking, ads or both. AdblockPlus, Firefox’s Privowny and  are all in this game, and they are having real effects. In May 2012,  a 9.26% ad blocking rate in North America and Europe. Above that were Austria (22.5%), Hungary, Germany, Finland, Poland, Gibraltar, Estonia and France. The U.S. was just below that at 8.72%. The top blocking browser was Firefox (17.81%) and the bottom one was Explorer (3.86%). So it was no surprise to see Microsoft jump on the Do Not Track bandwagon with its latest browser version. In sum what we see here is the marketplace talking back to marketing, through developers whose first loyalties are to people.

(The above and many other companies are listed among developers here.)

More context: it’s still early. The Internet most of us know today is just eighteen years old. The PC is thirty-something. Pendulums swing. Tides come and go. Bubbles burst.

I can’t prove it, but I do believe we have passed Peak Surveillance. When Edward Snowden’s NSA revelations hit the fan in May, lots of people said the controversy would blow over. It hasn’t, and it won’t. Our frogs are not fully boiled, and we’re jumping out of the pot. New personal powers will be decentralized. And in cases where those powers are centralized, it will be in ways that are better aligned with individual and social power than the feudal systems of today. End-to-end principles are still there, and still apply.

Another reason for my optimism is metaphor, the main subject in the thread below. In , George Lakoff and Mark Johnson open with this assertion: The mind is inherently embodied. We think metaphorically, and our metaphorical frames arise from our bodily experience. Ideas, for example, may not be things in the physical sense, but we still talk of “forming,” “getting,” “catching” and “throwing out” ideas. Metaphorically, privacy is a possession. We speak of it in possessive terms, and as something valuable and important to protect — because this has been our experience with it for as long as we’ve had civilization.

Possession is “nine-tenths of the law” because it is nine-tenths of the three-year-old. She says “It’s mine!” because she has hands with thumbs that give her the power to grab. Possession begins with what we can hold.

There is also in our embodied nature a uniquely human capacity called indwelling. Through indwelling our senses extend outward through our clothes, our tools, our vehicles, enlarging the boundaries of what we do and experience in the physical world. When drivers speak of “my wheels” and pilots of “my wings,” it is because their senses dwell in those things as extensions of their bodies.

This relates to privacy through exclusion: my privacy is what only I have.

The clothes we wear are exclusively ours. We may wear them to express ourselves, but their first purpose is to protect and conceal what is only ours. This sense of exclusivity also expands outward, even though our data.

 “the Internet is a copy machine.” And it is. We send an email in a less literal sense than we copy it. Yet the most essential human experience is ambulation: movement. This is why we conceive life, and talk about it, in terms of travel, rather than in terms of biology. Birth is arrival, we say. Death is departure. Careers are paths. This is why, when we move data around, we expect its ownership to remain a private matter even if we’re not really moving any of it in the postal sense of a sending a letter.

The problem here is not that our bodily senses fail to respect the easily-copied nature of data on networks, but that we haven’t yet created social, technical and policy protocols for the digital world to match the ones we’ve long understood in the physical world. We still need to do that. As embodied beings, the physical world is not just our first home. It is the set of reference frames we will never shake off, because we can’t. And because we’ve had them for ten thousand years or more.

The evolutionary adaptation that needs to happen is within the digital world and how we govern it, not the physical one.

Our experience as healthy and mature human beings in the physical world is one of full agency over personal privacy. In building out our digital world — something we are still just beginning to do — we need to respect that agency. The biggest entities in the digital world don’t yet do that. But that doesn’t mean they can’t. Especially after we start leaving their castles in droves.

Tags: , , , ,

Several years ago, during a session at Harvard Law School led by a small group of Google executives, I asked one of those executives about his company’s strategy behind starting services in categories where there was no obvious direct business benefit. The answer that came back fascinated me. It was, “We look for second and third order effects.” (Earlier JP Rangaswami and I came up with another term for that: “because effects.” That is, you make money because of something rather than with it.) I hadn’t thought about it until now, but I believe Google’s ability to monitor online activities by individuals on a massive scale serves as a model for governments to do the same.

I bring this up not because I believe Google models government surveillance (even though, without intending to, it does), but because I believe surveillance by governments inevitably causes second and third order effects. The least of those is to chill personal expression. The greatest of those is terror.

The more I think about those effects, the more Hannah Arendt comes to mind. Arendt studied totalitarianism in depth, and its use of terror as a technique for state control of citizens.

I read and re-read Arendt’s The Origins of Totalitarianism when I was in college, in the late 1960s. That was a time of revolt in the U.S. (most notably against institutionalized racism and the Vietnam war), and both of Arendt’s totalitarian state examples — Hitler’s Germany and Stalin’s Soviet Union — operated in recent memory, and still served as models. While I don’t believe we are headed to a totalitarian end in the U.S., I do believe the current news suggests a vector of policy and action ratcheting gradually in that direction.

So I encourage revisiting what Arendt said about the paralyzing unease that state monitoring of personal communication induces in a population.

While the feds may be looking for the needles of bad actors and actions in the haystack of all people and their communications, knowing that all of us are subject to suspicion is bound to make us think more than twice, as for example I am right now, about using the terms “terror” and “terrorism” in something I publish online.

Here are some links I’m accumulating on the topic of PRISM and other forms of government surveillance here in the U.S.:

I’ll be speaking tomorrow (Thursday, 4 October at Subscribed 2012 London, at the Kensington Roof Garden, near the Kensington tube stop on High Street. Seats are still available, and it’s free.

The intention economy and the subscription economy are both about relationships. I’ll be exploring markets, challenges and opportunities where the two meet.

Looking forward to seeing local friends old and new there.

(Or, if you like, tune in live on Ustream. If I have the chance I’ll post a link here.)

 

The Web as we know it today was two years old in June 1997, when the page below went up. It lasted, according to Archive.org, until October 2010. When I ran across it back then, it blew my mind — especially the passage I have boldfaced in the long paragraph near the end.

The Internet is a table for two. Any two, anywhere. All attempts to restrict it and lock it down will fail to alter the base fact that the Net’s protocols are designed to eliminate the functional distance, as far as possible, between any two points, any two devices, any two people. This is the design principle for a World of Ends. That last link goes to a piece and I wrote in 2003, to as little effect, I suspect, as @Man’s piece had in 1997. I doubt any of the three of us would write the same things the same ways today. But the base principle, that table-for-two-ness, is something I believe all of us respect. It won’t go away. That’s why I thought it best to disinter @Man’s original and run it again here.

I have another reason. Searching for @Man is Michael O’Connor Clarke‘s last blog post before falling ill in June. I don’t know who or where @Man is today. I did correspond with him briefly when we were writing The Cluetrain Manifesto in 1999, but all my emails from that time were trashed years ago. So I’m clueless on this one. If you’re out there and reading this, @Man, get in touch. Thanks.


Attention, Fat Corporate Bastards!

by @Man

Attention, Fat Corporate Bastards!
Attention, Fat Corporate Bastards in your three piece suits!

Attention Fat Congressional Bastards!
Attention, Fat Congressional Bastards in your three piece suits!

We know about your plans for the Internet. Although you won’t listen, we would like to point out how wrong you are now, so we can point out gleefully how right we were later.

According to a presentation given by Nicholas Negroponte at the Sheraton Hotel in downtown Toronto, called “The Information Age: Transforming Technology to Strategy,” here is what you Fat Corporate Bastards think we want:

  1. Movies on demand (94% executive approval)
  2. Home shopping (89% approval)
  3. On-line video games (89% approval)

Here’s what you think we don’t want:

  1. educational services
  2. access to government information

Here’s a clue: you can stick the first set up your bum, sideways.

Here’s what we really want. Don’t bother paying attention; I want you to learn the hard way, by wasting lots of time and money.

Desired Internet Service Attributes:

  1. Cheap, unlimited flat-rate international communication
  2. Hands off: No censorship, no advertisements, no lawsuits
  3. Respect
  4. Privacy

Desired Internet Services:

  1. Email, WWW, Usenet, IRC, FTP
  2. Explicit adult material
  3. Access to government and corporate information for oversight purposes
  4. Educational services
  5. Free networked multiplayer games

Guess what? We already have all the things we want. As soon as we’re ready for something new, we get it – for free. Why? Because the traditional consumer/producer relationship doesn’t exist on the Internet. Don’t you think that if we really wanted the things you think we want, we would have already developed them some time in the past 20 years for free? Free! Free! It’s so much fun to be able to use that word you hate. Take your margins with you and stick to trying to shove ads onto PBS and NPR.

You almost certainly think of the Internet as an audience of some type–perhaps somewhat captive. If you actually had even the faintest glimmering of what reality on the net is like, you’d realize that the real unit of currency isn’t dollars, data, or digicash. It’s reputation and respect. Think about how that impacts your corporate strategy. Think about how you’d feel if a guy sat down at your lunch table one afternoon when you were interviewing an applicant for a vice-president’s position and tried to sell the two of you a car, and wouldn’t go away. Believe it or not, what you want to do with the Internet is very similar. Just as you have a reasonable expectation of privacy and respect when you’re at a table for two in a public place, so too do the users of the Internet have a reasonable expectation of privacy and respect. When you think of the Internet, don’t think of Mack trucks full of widgets destined for distributorships, whizzing by countless billboards. Think of a table for two.

If you don’t understand right now, don’t worry. You’ll learn it the hard way. We’ll be there to help you learn, you filthy corporate guttersnipes.

With bile and premonitions of glee,

@Man


@Man, World-Class Data Snuggler

Making the rounds is , a killer essay by in MIT Technology Review. The gist:

At the heart of the Internet business is one of the great business fallacies of our time: that the Web, with all its targeting abilities, can be a more efficient, and hence more profitable, advertising medium than traditional media. Facebook, with its 900 million users, valuation of around $100 billion, and the bulk of its business in traditional display advertising, is now at the heart of the heart of the fallacy.

The daily and stubborn reality for everybody building businesses on the strength of Web advertising is that the value of digital ads decreases every quarter, a consequence of their simultaneous ineffectiveness and efficiency. The nature of people’s behavior on the Web and of how they interact with advertising, as well as the character of those ads themselves and their inability to command real attention, has meant a marked decline in advertising’s impact.

This is the first time I have read anything from a major media writer (and Michael is very much that — in fact I believe he is the best in the biz) that is in full agreement with The Advertising Bubble, my chapter on this very subject in The Intention Economy: When Customers Take Charge. A sample:

One might think all this personalized advertising must be pretty good, or it wouldn’t be such a hot new business category. But that’s only if one ignores the bubbly nature of the craze, or the negative demand on the receiving end for most of advertising’s goods.  In fact, the results of personalized advertising, so far, have been lousy for actual persons…

Tracking and “personalizing”—the current frontier of online advertising—probe the limits of tolerance. While harvesting mountains of data about individuals and signaling nothing obvious about their methods, tracking and personalizing together ditch one of the few noble virtues to which advertising at its best aspires: respect for the prospect’s privacy and integrity, which has long included a default assumption of anonymity.

Ask any celebrity about the price of fame and they’ll tell you: it’s anonymity. This wouldn’t be a Faustian bargain (or a bargain at all) if anonymity did not have real worth. Tracking, filtering and personalizing advertising all compromise our anonymity, even if no PII (Personally Identifiable Information) is collected.  Even if these systems don’t know us by name, their hands are still in our pants…

The distance between what tracking does and what users want, expect and intend is so extreme that backlash is inevitable. The only question is how much it will damage a business that is vulnerable in the first place.

The first section of the book opens with a retrospective view of the present from a some point in the near future — say, five or ten years out. A relevant sample:

After the social network crash of 2013, when it became clear that neither friendship nor sociability were adequately defined or managed through proprietary and contained systems (no matter how large they might be), individuals began to assert their independence, and to zero-base their social networking using their own tools, and asserting their own policies regarding engagement.

Customers now manage relationships in their own ways, using standardized tools that embrace the complexities of relationship—including needs for privacy (and, in some cases, anonymity). Thus loyalty to vendors now has genuine meaning, and goes as deep as either party cares to go. In some (perhaps most) cases this isn’t very deep, while in others it can get quite involved.

When I first wrote that, I said 2012. But I decided that was too aggressive, and went with the following year. Maybe I was right in the first place. Time will tell.

Meanwhile, here’s what Michael says about the utopian exhaust Facebook and its “ecosystem” are smoking:

Well, it does have all this data. The company knows so much about so many people that its executives are sure that the knowledge must have value (see “You Are the Ad,” by Robert D. Hof, May/June 2011).

If you’re inside the Facebook galaxy (a constellation that includes an ever-expanding cloud of associated ventures) there is endless chatter about a near-utopian (but often quasi-legal or demi-ethical) new medium of marketing. “If we just … if only … when we will …” goes the conversation. If, for instance, frequent-flyer programs and travel destinations actually knew when you were thinking about planning a trip. Really we know what people are thinking about—sometimes before they know! If a marketer could identify the person who has the most influence on you … If a marketer could introduce you to someone who would relay the marketer’s message … get it? No ads, just friends! My God!

But so far, the sweeping, basic, transformative, and simple way to connect buyer to seller and then get out of the way eludes Facebook.

The buyer is a person. That person does not require either a social network or absolutely-informed guesswork to know who she is or what she wants to buy. Obviously advertising can help. It always has. But totally personalized advertising is icky and oxymoronic. And, after half a decade or more at the business of making maximally-personalized ads, the main result is what Michael calls “the desultory ticky-tacky kind that litters the right side of people’s Facebook profiles.”

That’s one of mine on the right. It couldn’t be more wasted and wrong. Let’s take it from the top.

First, Robert Scoble is an old friend and a good guy. But I couldn’t disagree with him more on the subject of Facebook and the alleged virtues of the fully followed life. (Go to this Gillmor Gang, starting about an hour in, to see Robert and I go at it about this.) Clearly Facebook doesn’t know about that. Nor does any advertiser, I would bet. In any case, Robert likes so many things that his up-thumb has no value to me.

I have no interest in Social Referrals, and if Facebook followed what I’ve written on the subject of “social” (as defined by Facebook and its marketing cohorts), it wouldn’t imagine I would be interested in extole.com.

I’m 64, but married. “Boyfriend wanted” is a low-rent fail as well as an insult.

I get the old yearbook pitch every time I go on Facebook, which is as infrequently as I possibly can. (There are people I can only reach that way, which is why I bother.) I don’t even need to click on the the ad to discover that, as I suspected, 60s.yearbookarchives.com is a front for the scammy Classmates.com.

I’ve never been fly flishing, and haven’t fished since I was a kid, many decades ago.

And I don’t want more credit cards, of any kind, regardless of Scoble’s position on Capital One.

In a subchapter of  titled “A Bad Theory of You,”  calls both Facebook’s and Google’s data-based assumptions about us “pretty poor representations of who we are, in part because there is no one set of data that describes who we are.” He also says that at best they put us into the  — a “place where something is lifelike but not convincingly alive, and it gives people the creeps.” But what you see on the right isn’t the best, and it’s not uncanny. It’s typical, and it sucks, even if it does bring Facebook a few $billion per year in click-through-based revenues.

The amazing thing here is that business keeps trying to improve advertising — and always by making it more personal — as if that’s the only way we can get to Michael’s “sweeping, basic, transformative, and simple way to connect buyer to seller and then get out of the way.” Three problems here:

  1. By its nature advertising — especially “brand” advertising — is not personal.
  2. Making advertising personal changes it into something else that is often less welcome.
  3. There are better ways to get to achieve Michael’s objective — ways that start on the buyer’s side, rather than the seller’s.

Don Marti, former Editor-in-Chief of Linux Journal and a collaborator on the advertising chapters in my book, nails the first two problems in a pair of posts. In the first, Ad targeting – better is worse? he says,

Now, as targeting for online advertising gets more and more accurate, the signal is getting lost. On the web, how do you tell a massive campaign from a well-targeted campaign? And if you can’t spot the “waste,” how do you pick out the signal?

I’m thinking about this problem especially from an IT point of view. Much of the value of an IT product is network value, and economics of scale mean that a product with massive adoption can have much higher ROI than a niche product…. So, better targeting means that online advertising carries less signal. You could be part of the niche on which your vendor is dumping its last batch of a “boat anchor” product. This is kind of a paradox: the better online advertising is, the less valuable it is. Companies that want to send a signal are going to have to find a less fake-out-able medium.

In the second, Perfectly targeted advertising would be perfectly worthless, which he wrote in response to Michael’s essay, he adds this:

The more targeted that advertising is, the less effective that it is. Internet technology can be more efficient at targeting, but the closer it gets to perfectly tracking users, the less profitable it has to become.

The profits are in advertising that informs, entertains, or creates a spectacle—because that’s what sends a signal. Targeting is a dead end. Maybe “Do Not Track” will save online advertising from itself.

John Battelle, who is both a first-rate journalist and a leader in the online advertising industry, says this in Facebook’s real question: What’s the native model?:

Facebook makes 82% of its money by selling targeted display advertising – boxes on the top and right side of the site (it’s recently added ads at logout, and in newsfeeds). Not a particularly unique model on its face, but certainly unique underneath: Because Facebook knows so much about each person on its service, it can target in ways Google and others can only dream about. Over the years, Facebook has added new advertising products based on the unique identity, interest, and relationship data it owns: Advertisers can incorporate the fact that a friend of a friend “likes” a product, for example. Or they can incorporate their own marketing content into their ads, a practice known as “conversational marketing” that I’ve been on about for seven or so years (for more on that, see my post Conversational Marketing Is Hot – Again. Thanks Facebook!).

But as many have pointed out, Facebook’s approach to advertising has a problem: People don’t (yet) come to Facebook with the intention of consuming quality content (as they do with media sites), or finding an answer to a question (as they do at Google search). Yet Facebook’s ad system combines both those models – it employs a display ad unit (the foundation of brand-driven media sites) as well as a sophisticated ad-buying platform that’d be familiar to anyone who’s ever used Google AdWords.

I’m not sure how many advertisers use Facebook, but it’s probably a fair guess to say the number approaches or crosses the hundreds of thousands. That’s about how many used Overture and Google a decade ago. The big question is simply this: Do those Facebook ads work as well or better than other approaches? If the answer is yes, the question of valuation is rather moot. If the answer is no…Facebook’s got some work to do.

But Facebook isn’t the real issue here. Working only the sell side of the marketplace is the issue. It’s now time to work the buy side.

The simple fact is that we need to start equipping buyers with their own tools for connecting with sellers, and for engaging in respectful and productive ways. That is, to improve the ability of demand to drive supply, and not to constantly goose up supply to drive demand, and failing 99.x% of the time.

This is an old imperative.

In , which Chris Locke, David Weinberger, Rick Levine and I wrote in 1999, we laid into business — and marketing in particular — for failing to grok the fact that in networked markets, which the Internet gave us, individuals should lead, rather than just follow. So, since business failed to get Cluetrain’s message, I started in mid-2006 at Harvard’s Berkman Center. The idea was to foster development of tools that make customers both independent of vendors, and better able to engage with vendors. That is, for demand to drive supply, personally. (VRM stands for .)

Imagine being able to:

  • name your own terms of service
  • define for yourself what loyalty is, what stores you are loyal to, and how
  • be able to gather and examine your own data
  • advertise (or “intentcast”) your own needs in an anonymous and secure way
  • manage your own relationships with all the vendors and other organizations you deal with
  • … and to do all that either on your own or with the help of that work for you rather than for sellers (as most third parties do)

Today there are dozens of VRM developers working at all that stuff and more — to open floodgates of economic possibility when demand drives supply personally, rather than “socially” as part of some ad-funded Web giant’s wet dream. (And socially in the genuine sense, in which each of us knows who our friends, relatives and other associates really are, and in what contexts our actual social connections apply.) I report on those, and the huge implications of their work, in The Intention Economy.

Here’s the thing, and why now is the time to point this out: most of those developers have a hell of a time getting laid by VCs, which on the whole have their heads stuck in a of the Web, and can’t imagine a way to improve the marketplace that does not require breeding yet another cow, or creating yet another ranch for dependent customers. Maybe now that the bloom is off Facebook’s rose, and the Filter Bubble is ready to burst, they can start looking at possibilities over here on the demand side.

So this post is an appeal to investors. Start thinking outside the cow, and outside the ranch. If you truly believe in free markets, then start believing in free customers, and in the development projects that make them not only free, but able to drive sales at a 100% rate, and to form relationships that are worthy of the word.

Bonus links:

HT to John Salvador, for pointing to Life in the Vast Lane, where I kinda predicted some of the above in 2008.

coverToday is the official release date for The Intention Economy: When Customers Take Charge, my new book from Harvard Business Review Press. It’s been available from Amazon for the last couple of weeks, and is already doing well.

There are two reviews there so far (both 5 stars), and yesterday Oliver Marks gave the book a big thumbs up at ZDNet. He calls it “a thoughtful, hype free book worth reading about digital marketing, the relationships we have with vendors and a vision for a better future where we have greater control of our personal data.” Oliver also gives props to The Cluetrain Manifesto, correctly surmising that one motivation behind the VRM work this book describes was the getting business back on the track down which Cluetrain pointed, more than twelve years ago:

I normally steer clear of utopian futurism, which Searls freely admits he is practicing in ‘The Intention Manifesto’, but given the track record and respect ‘Cluetrain’ has, along with my familiarity with Searls and colleagues great work around ‘Vendor Relationship Management‘ over the last five years this book deserves to be taken seriously.

Cluetrain author Chris Locke commented on my ‘The Groundswell of Social Media Backlash‘ post here in May of 2009, which lamented the quality of clumsy social media marketing

I wrote a goodly chunk of The Cluetrain Manifesto and I hate seeing it invoked to hawk the same old crap the same old way.

The Intention Economy gets perspectives back on track with a credible vision of a world where you are in complete control of your digital persona and grant permission for vendors to access it on your terms and pitch bids for products or services you are interested in buying…

Yesterday we had a great meeting of VRM folk here in Silicon Valley, in advance of IIW — the Internet Identity Workshop — at the Computer History Museum in Mountain View. (Big thanks to the kind folks at Ericsson for providing us the time and space for that in their terrific facility in San Jose.) Among other things we came up with a long list of discussion and development topics for IIW — an unconference where participants make their own agenda.

Looking forward to seeing many of you there.

 

 

Music was a huge part of my life when I was growing up. It’s still big, but not the same. My life today does not have a soundtrack. As a kid my life was accompanied by music from start to finish. At that finish was another start, as a grown-up. From that point forward, music was less of a soundtrack and more of a break from conversations and silence, and a devotion of its own. The transition was not a sharp one, but rather a growing independence from music radio. Accompanying me the whole way, though I hardly knew it, was Carole King.

She was the composer behind dozens of songs I still hum or sing along to. She wrote or co-wrote 118 Billboard top 100 songs, between 1955 and 1999.  Though I always enjoyed her music and appreciated her talent, I hadn’t thought much about why they were appealing before listening this morning to this Fresh Air interview with Terry Gross (who, it turns out, was a neighbor of Carole’s when they were both growing up in Brooklyn). When I heard that some old videos of Carole had leaked out on YouTube, I went there and was blown away by this performance of Chains, a hit she and Jerry Goffin wrote for the Cookies, which was then Little Eva‘s back-up group.

What you see on that video is pure fun. The song is a simple one, almost a throw-away. But the energy is amazing. Watching and listening to that performance, it’s hard not to fall in love with her. The Carole King I got to know through Tapestry, and other mature works, was more seasoned and complete. But what I see here is something I also realized I knew all along: that her work was also play.

I’m also sold on her memoir, A Natural Woman. Looking forward to checking it out.

Amazon is now shipping my new book, The Intention Economy. Yes, the Kindle version too. They even have the first chapter available for free. You can “look inside” as well.

Thanks to Amazon’s search, you can even find stuff that’s not in the index, such as the acknowledgements. Those include a lot of people, including everybody who has ever been active on the ProjectVRM list.

The book isn’t for me. It’s for customers. All customers, that is. Not just the ones buying the book. The first paragraph of the Introduction explains,

This book stands with the customer. This is out of necessity, not sympathy. Over the coming years customers will be emancipated from systems built to control them. They will become free and independent actors in the marketplace, equipped to tell vendors what they want, how they want it, where and when—even how much they’d like to pay—outside of any vendor’s system of customer control. Customers will be able to form and break relationships with vendors, on customers’ own terms, and not just on the take-it-or-leave-it terms that have been pro forma since Industry won the Industrial Revolution.

That’s what the VRM development community has been working toward since I launched ProjectVRM at the Berkman Center in 2006. Now that community is getting kinda large. Here at the European Identity and Cloud Conference (#EIC12) in Munich, I have met or learned about a bunch of VRM developers I hadn’t known  before. Pretty soon I won’t be able to keep up, and that’s a good thing.

The book has four main parts:

  1. Customer Captivity
  2. The Networked Marketplace
  3. The Liberated Customer
  4. The Liberated Vendor

In a way it follows up on work begun with The Cluetrain Manifesto. The subtitle there was The End of Business as Usual. The subhead for The Intention Economy is When Customers Take Charge. Hey, when one thing ends, another must begin. This is it.

We’re not there yet. If The Intention Economy speeds things up, it will do its job.

 

 

 

Reality 2.0 was my original blog: a pile of stuff I wrote before there were blogs. All of it is old now, but some of it still rings new. Since Reality 2.0 is deep in the Searls.com basement, I’ve decided to surface some old pieces that might be interesting, for whatever reason. The one below was first written on April 16 1998, about a year before Chris Locke, Rick Levine, David Weinberger and I put up The Cluetrain Manifesto, and updated one year later to recognize Cluetrain’s successful launch on the Web that month. It was still nearly a year before Cluetrain appeared in book form, and a decade before the 10th Anniversary Edition.

Never mind that Lycos, HotBot, Tripod and WhoWhere are blasts from the past. Note instead that these are zombies that were once hot stuff, and led by CEOs that talked very much like the CEOs walking around today. Note also how little progress we’ve actually made toward Cluetrain’s ideals.

Here goes:

Listen up

“All I know is that first you’ve got to get mad. You’ve got to say, I’m a human being, goddammit! My life has value! So I want you to get up now. I want all of you to get up out of your chairs. I want you to get up right now and go to the window, open it, and stick your head out, and yell, ‘I’m as mad as hell, and I’m not going to take this anymore!’”

— Howard Beale, in Network, by Paddy Chayevsky


Bob Davis is the CEO of Lycos, Inc., whose growing portfolio of companies (excuse me, portals) now includes Lycos, Hotbot, WhoWhere and Tripod. I’m sure Bob is a great guy. And I’m sure Lycos is a great company. A lot of people seem to like them both. And you have to admire both his ambition and his success. To witness both, read his interview with PC Week, where he predicts that the Lycos Network (the sum of all its portals) will overtake Yahoo as “#1 on the Web.”

Lycos will win, Davis says, because “We have a collection of quality properties that are segmented into best-of-breed categories, and our reach has been catapulting.”

I can speak for Hotbot, which is still my first-choice search engine; but by a shrinking margin. I often test search engines by looking for strings of text buried deep in long documents on my own site. Hotbot always won in the past. But since Lycos bought it, Hotbot has become more of a portal and less of a search tool. Its page is now a baffling mass of ads and links. And its searches find less.

In today’s test, Infoseek won. Last week, Excite won. Both found pages that Hotbot seems to have forgotten.

Why? Bob Davis gives us a good answer.

“We’re a media company,” he says. “We make our money by delivering an audience that people want to pay for.”

Note the two different species here: audience and people. And look at their qualities. One is “delivered.” The other pays. In other words, one is cargo and the other is money.

Well, I don’t care if Lycos’ stock goes to the moon and splits three times along the way. The only #1 on the Web is the same as the only #1 on the phone: the people who use it. And the time will come when people will look at portals not as sources of “satisfying experiences” (another of Davis’ lines) but as useless intermediaries between supply and demand.

 Words of Walt

You there, impotent, loose in the knees,

open your scarfed chops till I blow grit within you.

Spread your palms and lift the flaps of your pockets.

I am not to be denied. I compel.

It is time to explain myself. Let us stand up.

I know I am solid and sound.

To me the converging objects of the universe perpetually flow.

I know that I am august,

I do not trouble my spirit to vindicate itself

or be understood.

I see that the elementary laws never apologize..

Walt Whitman, from Song of Myself

“Media company” guys like Davis are still in a seller’s market for wisdom that was BS even when only the TV guys spoke it — back when it literally required the movie “Network.” That market will dry up. Why? Because we’ve been mad as hell for about hundred years, and now we don’t have to take it anymore.

Three reasons.

  1. Humanity. This is what Walt Whitman reminded us about more than a hundred years ago. We are not impotent. Media companies may call us seats and eyeballs and targets, but that’s their problem. They don’t get who we are or what we can — and will — do. And the funny thing is, they don’t get that what makes us powerful is what they think makes them powerful: the Internet. It gives us choices. Millions of them. We don’t have to settle for “channels” any more. Or “portals” that offer views of the sky through their own little windows. Or “sticky” sites that are the moral equivalent of flypaper.
  2. Demand. There never was a demand for messages, and now it shows, big time. Because the Internet is a meteor that is smacking the world of business with more force than the rock that offed the dinosaurs, and it is pushing out a tsunami of demand like nothing supply has ever seen. Businesses that welcome the swell are in for some fun surfing. Businesses that don’t are going to drown in it.
  3. Obsolescence. Even the media guys are tired of their own B.S. and are finally in the market for clues.

Alvin Toffler had it right in The Third Wave. Industry (The Second Wave) “violently split apart two aspects of our lives that had always been one… production and consumption… In so doing, it drove a giant invisible wedge into our economy, our psyches … it ripped apart the underlying unity of society, creating a way of life filled with economic tension.” Today all of us play producer roles in our professions and consumer roles in our everyday lives. This chart shows the difference (and tension) between these radically different points of view — both of which all of us hold:

Producer view
Consumer view
Metaphor Business is shipping (“loading the channel,” “moving products,” “delivering messages”) Business is shopping (“browsing,” “looking,” “bargaining,” “buying”)
Orientation Business is about moving goods from one to many (producers to consumers) Business is about buying and selling, one to one
Markets Markets are shooting ranges: consumers are “targets” Markets are markets: places to shop, buy stuff and talk to people
Relationships Primary relationshiphs are with customers, which are more often distributors & retailers rather than consumers Primary relationships are with vendors, and with other customers

These are all just clues, which are easily deniable facts. Hence a line once spoken of Apple: “the clue train stopped there four times a day for ten years and they never took delivery.” But Apple was just an obvious offender. All of marketing itself remains clueless so long as it continues to treat customers as “eyeballs,” “targets,” “seats” and “consumers.”

For the past several months, I have been working with Rick Levine, David Weinberger and Chris Locke on a new railroad for clues: a ClueTrain.

Our goal is to burn down Marketing As Usual. Here is the logic behind the ambition:

Markets are conversations

Conversations are fire

Marketing is arson

The result is here — in what The Wall Street Journal calls “presumptuous, arrogant, and absolutely brilliant.”

Take a ride. If you like it, sign up. Feel free to set fires with it, add a few of your own, or flame the ones you don’t agree with. What matters is the conversation. We want everybody talking about this stuff. If they do, MAU is toast.

Here is my own short form of the Manifesto (inspired by Martin Luther, the long version has 95 Theses). Feel free to commit arson with (or to) any of these points as well.


Ten facts about highly effective markets:

  1. Markets are conversations. None of the other metaphors for markets — bulls, bears, battlefields, arenas, streets or invisible hands — does full justice to the social nature of markets. Real market conversations are social. They happen between human beings. Not between senders and receivers, shooters and targets, advertisers and demographics.
  2. The first markets were markets. They were real places that thrived at the crossroads of cultures. They didn’t need a market model, because they were the model market. More than religion, war or family, markets were real places where communities came together. They weren’t just where sellers did business with buyers. They were the place where everybody got together to hang out, talk, tell stories and learn interesting stuff about each other and the larger world.
  3. Markets are more about demand than supply. The term “market” comes from the latin mercere, which means “to buy.” Even a modern market is called a “shopping center” rather than a “selling center.” Bottom line: every market has more buyers than sellers. And the buyers have the money.
  4. Human voices trump robotic ones. Real voices are honest, open, natural, uncontrived. Every identity that speaks has a voice. We know each other by how we sound. That goes for companies and markets as well as people. When a voice is full of shit, we all know it — whether the voice tells us “your call is important to us” or that a Buick is better than a Mercedes.
  5. The real market leaders are people whose minds and hands are worn by the work they do. And it has been that way ever since our ancestors’ authority was expressed by surnames that labeled their occupations — names like Hunter, Weaver, Fisher and Smith. In modern parlance, the most knowledge and the best expertise is found at the “point of practice:” That’s where most of the work gets done.
  6. Markets are made by real people. Not by surreal abstractions that insult customers by calling them “targets,” “seats,” “audiences,” “demographics” and “eyeballs” — all synonyms for consumers, which Jerry Michalski of Sociate calls “brainless gullets who live only to gulp products and expel cash.”
  7. Business is not a conveyor belt that runs from production to consumption. Our goods are more than “content” that we “package” and “move” by “loading” them into a “channel” and “address” for “delivery.” The business that matters most is about shopping, not shipping. And the people who run it are the customers and the people who talk to them.
  8. Mass markets have the same intelligence as germ populations. Their virtues are appetite and reproduction. They grow by contagion. Which is why nobody wants to admit belonging to one.
  9. There is no demand for messages. To get what this means, imagine what would happen if mute buttons on remote controls delivered “we don’t want to hear this” messages directly back to advertisers.
  10. Most advertising is unaccountable. Or worse, it’s useless. An old advertising saying goes, “I know half my advertising is wasted. I just don’t know which half.” But even this is a lie. Nearly all advertising is wasted. Even the most accountable form of advertising — the junk mail we euphemistically call “direct marketing” — counts a 3% response rate as a success. No wonder most of us sort our mail over the trash can. Fairfax Cone, who co-founded Foote Cone & Belding many decades ago, said “Advertising is what you do when you can’t go see somebody. That’s all it is.” With the Net you cango see somebody. More importantly, they can see you. More importantly than that, you can both talk to each other. And make real markets again.

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