February 23, 2012

Google = Skynet … Yikes!

google-youThe Shelly Palmer School of Connected Living has one primary thesis: “Technology is good.” I believe that all technological progress is good and that the story of the evolution of mankind is inextricably linked to the story of the evolution of our technology. We are tool builders, and we are tool users. It is, in large measure, what separates us from virtually every other species in the known universe.

I also acknowledge “Technology is good” is an optimistic point of view. I am, by nature, an optimist. I believe in lifelong learning and I aspire daily to the joy of striving to realize things that exist in our imaginations. It may be one of our higher callings; it is certainly one of mine.

So, I am usually one of the guys who says things like, “Guns don’t kill people, people kill people.” Which is my way of acknowledging that firearms are simply tools to help us throw rocks faster and more accurately and, if you need to throw a rock, it’s probably better to throw it faster and more accurately.

This argument can be extended to less emotional subjects like the Sony Betamax case or the more recent (though seemingly ancient) Grokster case. Both of which ended up with the court deciding that, and I’m paraphrasing: “Technology good … people bad.”

“If God intended us to fly, he’d have given us wings.” Yep. I totally agree. God (please use your politically correct deity, this article is not about science vs. religion) gave us brains that saw birds and imagined what it would be like to fly. The same deity gave us thumbs, manual dexterity and the ability to create tools that enabled us to have wings. We fly because we are genetically gifted to do so. (You can decide how those genetic gifts were bestowed, like I said, it is not the point of this writing.)

The point is, that technology is woven into the fabric of our lives and it, in every case, in every civilization (past and present) defines how we interact, how we live, how we work … it literally defines everything about us, including the epochs and ages of our past.

The reason for my huge pro-technology buildup is that I am about to write something that is so out of character, so remarkably against one of my strongest personal axioms, I have to talk myself into writing it …

Google is about to go too far.

On March 1, 2012, Google will consolidate the privacy policies for 60 of its products creating the singularly most significant database of the Information Age. The aggregation of these data will empower Google to correlate and contextualize our thoughts, aspirations, actions, physical locations and the timelines for the basic processes of the doing of life.

I don’t think any single thought about the aggregation of data or the use of technology has ever made me as uncomfortable as this announcement. On its best day, with every ounce of technology the US Government could muster, it could not know a fraction as much about any of us as Google does now. But now is not what I’m worried about. I’m not even worried about this decade. At the current rate of technological change, taking into consideration the amount of information we are creating about ourselves, and adding in the computational power that will be available in about a decade, Google will equal Skynet circa 2022.

This is a guess, of course, it could be sooner – but it won’t be later. What do I mean by Skynet. First of all, get your Terminator lore together, but then just imagine a database that could automatically determine what you are most likely going to have for dinner after your bowling league Tuesday night, where you are going to have it, who it will be with, whether you are feeling good or have a cold, if you and your wife are fighting, how your day was at work, what you are thinking about buying, who is helping you with your decisions about it, what chronic illnesses you are dealing with, what meds you are on, etc, etc, etc. And this isn’t even the scary stuff.

What scares me is the advance of analytical tools and the existence of yet-uninvented ways to manipulate data for good and, inadvertently, for bad. I’m not worried about bad people doing bad things. That is the nature of our world and, generally, it is easy to identify bad people who do bad things. I’m worried about the good intentions that pave the road to hell. I can’t speculate about how our near-term-future, data-dependent culture will be negatively affected by the law of unintended consequences. That’s because so many of the vocations and avocations that will be impacted have also yet to be invented. I just know that there are at least as many ways for things to go wrong, as there are for things to go right.

The sky is not falling and this is not a sensationalistic FUD-mongering exercise (Fear, Uncertainty & Doubt). It is an admonition that the time has come for learned colleagues to start a Socratic discourse about what parts of the Genie need to stay in the bottle, and what parts can be let out. Imperfect metaphor? I don’t think so.

This is a very complex problem and we are going to need very simple ways to describe it. Skynet can’t win – at least not in the world I want to live in. Let’s get ahead of this while it’s still just the subject of the occasional rhetorical blog post – because, no matter what anyone tells you, the world of big data is never going away.

The Kardashian Effect: A Social Media Conundrum

kardashianWhat is the value of a Facebook “Friend?” What is the value of a Facebook “Like?” What is the value of a Twitter “Follower?” How do you calculate the ROI? What is the value of a fan engagement? How do you quantify time spent on your site, with your profile or on your fan page?

These questions are “Topic A” at almost every meeting I attend these days. Everyone knows you need to be doing something in social media, but it is increasingly hard to quantify its value.

As most of you know, I have a technology, media & entertainment business advisory practice, and I do a bunch of traditional and social media outreach. If you “like” me on Facebook, you will be one of 6,500ish fans who interact with me on a daily basis. If you follow me on Twitter, you are one of about 6,100 followers who I also interact with on a daily basis. On any given day, I post stories and links to things I find interesting. And, on any given day, a handful of people will post a comment or just press “like” on a post that resonates with them.

This social interaction is awesome. It keeps me in-touch with my most loyal brand ambassadors. It gives me instant feedback (both positive and negative) about the things I’m doing. And, most importantly, it gives me a way to learn about, and interact with, the people who are interested in the things that interest me. It’s win/win.

But wait! I’m supposed to be a social media “expert.” Social media is a huge focus of my consulting practice. How come I don’t have a zillion fans and two zillion followers? What’s wrong with me?

Actually … nothing. I’m doing just fine with the fans (“likes”) and followers I have. My fans and followers are growing organically each day, and it’s a great group of people.

That said, if I wanted a zillion fans and two zillion followers, I could obtain them in about a week. But I don’t really want them and neither do you.

To prove this theory, I decided to test the Kardashian Effect. It’s a term I use to describe the throngs of useless fans and followers that can be obtained by confusing the “famous for being famous” with actual people. Anyone who wants a zillion fans and two zillion followers need only look at the trending topics and create a well SEO’d, well SEM’d social and online presence focusing purely on them. The results are instant and obvious. You will get a ton of traffic. There’s only one problem – you won’t be able to keep it unless you do it everyday forever. If you’re not offering them the best place to get a full dose of the thing they crave (which is the hottest thing available) they won’t stay and they won’t be back.

On top of that, you must commit to finding ways to translate the value of transient Kardashianites into wealth. (Your wealth, not hers). Think this is easy? Think again. It’s very easy to create value online, but creating wealth (especially your wealth) is exceptionally hard.

Anyway, the test was simple. A friend of mine sent me this picture of Kim the other day. It is obviously “fun with Photoshop.” It is credited to twitter.com/kelkulus from Los Angeles, CA. His description says: “Just in case this comedian thing doesn’t work out, I’m also studying to be a rockstar.” I don’t know @kelkulus, but I thought the image was pretty funny, so to prove the Kardashian Effect is real, I posted it on my Facebook wall and put it out on Twitter via my Yfrog account.

The results were instant and obvious. The highest number of likes, highest number of comments and highest engagement metrics of anything I’ve posted in 2011. People love to hate her, people think she’s a scam artist, people think she’s a genius – the nature of the responses are not important, what is important is that people responded – like crazy.

What does that mean for my business (or yours)? If I want tons of transient traffic and useless interactions, I can post more stuff about Kim or Lindsey Lohan or (substitute your tabloid star here) and put huge, but ultimately useless, metrics on the scoreboard. Or, I can just do what I do and continue to interact and profit from my loyal fans and followers.

The lure of the Kardashian Effect is overwhelming. I really want zillions of fans and two zillions of followers … but I also want to be respected for my work, keep my brand message clear and understandable and profit from my marketing efforts. What to do, what to do?

I know, I’ll trick my advertisers with these inflated numbers and make them think that my social media efforts are stellar. Oh wait, I don’t sell any advertising … hummm.

All kidding aside, the Kardashian Effect is real. Kim is a genius and we are all drinking the social media metrics Kool-Aid. Qualitative understanding of social interactions is key to unlocking their value. The goal is the target, not raw tonnage. And, most importantly, quality organic social touch points should never be sacrificed for scale – you can never sustainably profit from that kind of Pyrrhic victory.

In closing, I just want to say, Kim … your marketing machine is simply awe-inspiring. You can send my commission check for this post at your earliest convenience. I can’t believe that I’m actually getting you more well SEO’d, SEM’d coverage without accretive value. Oops! I forgot, this will be one of my most read columns ever. Thanks Kim!

Dear Netflix

Netflix

Netflix

“Dear Netflix” is a trending topic on Twitter today and you don’t need to set up any sophisticated social listening software to get the message:

@jerrybyers Dear Netflix, I only knew you for a short time. Streaming library is limited and Redbox is a lot cheaper. See ya. #fail

The social media backlash to Netflix’s price increase was instant and voluminous.  And, not surprisingly, it was 100% negative.

Reed Hastings, CEO of what used to be everyone’s favorite video rental service, has been nicknamed “Greed Hastings” in the Twitisphere, Fasbookistan and throughout the Interweb.

In case you missed the details.  You will now pay $7.99/month for DVD rentals by mail, or $7.99/month for access to the streaming service, or $15.98/month for access to both.  That’s a 60% increase for all you Econ majors out there.

Here’s a tweet that sums up the perceived business model:

@NuAngel Dear Netflix, brilliant business plan! Run all video stores out of business, than jack up the prices so we have nowhere else to go! #fb

And, here’s a tweet that sums up brand sentiment:

@droberts0503 Dear Netflix, I got your breakup email. Sorry to hear you don’t want me to be with you anymore.

All in, I’d say Netflix has a hell of a PR problem.  It has dramatically raised prices and offered no additional services.  Additionally, the streaming library is exceptionally limited and, IMHO, not worth $7.99 per month.  There are other services like Hulu Plus, ESPN and Amazon that are more attractive.  When you figure in Blockbuster’s $4.99 month long pass for unlimited kids rentals (Kids are a big category on Netflix Streaming Service) and Blockbuster’s .49 cent Sunday rentals,  and RedBox, and the local video store (if one still exists), a $16/month Netflix bill doesn’t seem to be that much of a bargain.

Will Netflix bend to the social media pressure? Will it listen to the voice of its customers and roll back its pricing?  If it doesn’t, will its stock take a hit?  Will Netflix lose customers?   Time will tell.

If you’re wondering what I’m going to do with my account … I will not pay for the DVD service – I don’t use it anymore. And, unless the streaming library grows considerably in the next few month, I will probably cancel that service too.

All this as the Netflix “Red Button” starts to hit consumer electronics devices, remote controls and Netflix widgets and apps abound.  Oh wait, maybe this is all just social media noise and Netflix will emerge bigger, stronger and more powerful?  Maybe not.

Google vs. Bing & Facebook

Bing & Facebook

There was an announcement this week, that Bing and Facebook are going to team up to create their version of social search. The interweb is in overtweet with pejorative, condescending and downright ugly posts portending absolute failure. I hope they are wrong.

Social search may or may not be a good idea. We all use an offline version of it everyday with our family, friend and colleagues. We are social animals and we tend to like things that people in our trust circles like. In theory, an online version of social search should be a useful tool – but … to quote Barry Fischer, “Perhaps the extraordinary success of Google has blinded us to the need for more tools.”

It is easy to fall into the “Google is a Search Engine” trap. Google is a search engine, but it is not optimized to deliver the information you are looking for. Google is optimized to deliver a highly-targeted “for profit” advertisement that you are likely to click on. Organic search results are the filler between the ads — just like articles in newspapers are filler between ads and television and radio programs are filler between commercials.

If you don’t believe that Google is an optimized ad engine, simply go to adwords.google.com and read the fine print. Google delights in telling you that the more relevant your adwords ads are, the higher they will place on a page and the less expensive they will be.

I’m not here to Google bash, I love Google and I use it dozens of times a day, but — to bastardize a favorite Churchill quote, “Google is the worst form of search engine, except all those others that have been tried.”

With that in mind, how could anyone say anything bad about an attempt to leverage search and social web connections? The goal for everyone should be to create the best possible set of filtering and search tools. Information is not knowledge and data points out of context are downright dangerous. Could Bing and Facebook craft a search tool that actually delivers a more relevant result than a Google search? Wouldn’t it be awesome?

On to the more interesting stuff — Mark Zuckerberg (Facebook’s founder and CEO) should have made this deal with Google. He didn’t. He is quoted in saying that Microsoft is the underdog and that he believes that the Bing team will work harder and be more willing to innovate.

Maybe.

What is shaping up here is a fight for connected dominance. Facebook is not a website, it is an application that you can access from any connected device. It empowers you to stay in touch with your friends all the time. Google is not a website either, it is a database of almost every bit of publicly published online data, and it empowers you to stay in contact with that information.

Google has failed at all of its attempts to create a social web experience. Facebook has the worst internal search engine imaginable. How will this all play out?

The cynic in me says that this is a last ditch effort by Microsoft to breath life into it’s suboptimal search business. Teaming up with #2 search engine, Yahoo! did nothing to Google. So, now, Microsoft will try to leverage the perceived conflict between Facebook and Google to try to get something going. Of course, that’s the cynic in me. The optimistic happy me says that Facebook and Bing are onto something excellent and that there is a real chance that, for 500+ million users, search will become more useful. I wonder what the other five billion connected computer, cellphone and smartphone users will do? I guess they’ll use Google.


    Remember: Facebook is Free

    I just got off the phone with a friend of mine who told me that her Facebook profile had been deleted — not hacked, deleted by Facebook. I wondered how this could happen and, unfortunately for her, she posted a picture that Facebook deemed to be inappropriate. According to my friend, Facebook notified her with a strongly worded warning message and before she could do anything or even respond to the message, her account was deleted.

    I’m sure you know someone who has had their Facebook account hacked or deleted, it may have even happened to you. First you feel violated, then isolated, then the reality hits you that your account is not coming back. Do you rebuild? Can you? How many people do you have to recontact? It’s a daunting task to say the least.

    It will not surprise you to learn that Facebook was the center of her communications world. Pictures, contacts, groups, notes, wall posts, she was all in. When Facebook deletes an account, all of the posts and 100% of the history of that account is instantly removed from Facebook. It is as if the person (profile) never existed at all. If you haven’t experienced it, I can tell you it’s quite disconcerting.

    Mark Zuckerberg - FacebookBut not as disconcerting as the conversation I had with my friend. Violated, hurt and victimized by a company she trusted (Facebook) she was asking me what could be done. The answer, of course, is that nothing can be done. She can try some of the links in the help section of Facebook, but these are not generally very helpful. Her profile is gone and she probably won’t get it back.

    In a moment of desperation, she sent me a copy of the picture that caused the problem. As if somehow my understanding the problem would help me change the outcome. It was a black and white shot of a couple locked in an embrace. I could see how it could be interpreted as inappropriate. That said, it didn’t show any body parts that you don’t see everyday on the street. And, if the picture had been printed on the cover of the New York Times Magazine, people would have called it art.

    Remarkably, none of this matters, and that is the lesson to be learned here. It doesn’t matter if it was high art, low art or porn — you post stuff on Facebook at their pleasure. They set the rules, not you. This was a very hard thing for my friend to hear.

    I made it worse when I asked her what she paid for Facebook. She answered, “it’s free.” And then I hit her when she was down. “Well,” I said, “… you get what you pay for.”

    Why are we so willing to allow free services like Google, Facebook, Twitter and thousands of other sites and apps to be woven into the fabric of our lives? Why do we complain when a free service doesn’t meet our expectations? Facebook is free. Mark Zuckerberg says it will always be free. OK, then what’s it worth? I know what it’s worth to Mark Zuckerberg and his shareholders, but what is it worth to you?

    I’m not singling out Facebook. What is free business software from Google worth? What is the value of free LAMP stack? Can we rely on communications tools that are provided free of charge?

    Microsoft has a significant amount of cash on its balance sheet. It’s our cash, that we paid it to provide us with software that we use to make money every day. We can easily devolve the argument to make it about whether or not Microsoft Office is worth what Microsoft charges for it, but that would be off point. Microsoft, Adobe, Intuit, etc. all charge us for their intellectual property. They also provide customer service and performance guarantees. And, although we can argue degree, we get what we pay for.

    Are free, cloud-based applications like Facebook or Google Apps the future of our digital lives? If so, should we be willing to rely on them for the doing of life or the running of our businesses?

    Facebook just announced some new features, including a way to export or backup some of the content you’ve uploaded to Facebook. This is a good start, but it is far from a solution to the problem of being deleted — for that you need to have had control of your digital presence in the first place.


      Truthiness in a Connected World – Part 1

      By Shelly Palmer and Jared Palmer –

      Over the next few weeks we are going to explore the concepts and constructs of Truth (with a capital “T”), truth (with a lower case “t”), truthiness (as coined by Stephen Colbert), reality, wikiality (also coined by Stephen Colbert) and facts as they apply to our connected world.

      What is True? (I don’t really want to delve into the metaphysical or philosophical nature of truth. I’m simply trying to help us define and label a baseline.) Are facts true? By definition, they are. Barack Obama won the presidential election and is, at this writing, the President of the United States. This is a fact. By definition, it is true.

      I have a new favorite quote (that I truly overuse) by the late Senator Daniel Patrick Moynihan “… you are entitled to your own opinion, but you are not entitled to your own facts.” We can all agree that facts are true, can’t we? No, we can’t. Here’s an experiment my son (and co-author) Jared devised to test the practical existence of fact.

      Objective: Explore the way facts, truth, and narrative affect crowds and groups. Observe the relationship between fact, truth, and narrative and apply the findings to the future of social networking, news, and mass media.

      Apparatus: A ball is dropped off a table. The ball has a special coloration and pattern such that people who are colorblind see it as a distinctly different color than people who aren’t colorblind. After having the subjects view the event, they will be asked to describe it.

      Hypothesis: Everyone will agree on the fact that the ball dropped. We will call this a “supercluster.” The colorblind individuals will say that the ball was one color, the non-colorblind people will say that the ball was another color. There will also be at least two distinct “truth clusters,” those who are colorblind and those who are not color blind.

      My son spends a little too much time in his college physics lab, but I like the physics metaphors we are using here because information seems to travel in particles and waves, just like energy. Here’s how 20th century physics might help you think about the 21st century information problem we’re discussing.

      What is true in the 21st century? With a little bit of help from Einstein’s relativity, we know that 1. There is no way to distinguish between reference frames and that 2. The laws of physics hold true in all reference frames.

      In one of Einstein’s famous gedanken (thought) experiments he showed that simultaneity is relative to the observer. Although relativistic effects such as time dilation and length contraction can’t be seen day to day, there are some important implications of Einstein’s postulates. No two people observe the same event the same way, and both observers are correct though the numerical values of physical observations may differ. If that’s the case, then what actually happens? Who is right and who is wrong? Who can be trusted?

      Examples:

      Barack Obama is the president of the United States of America.
      North Carolina is closer to the North Pole than South Carolina.
      There was a ball in the aforementioned experiment that hit the floor.

      A Truth, according to m-w.com, is “the state of being the case; the body of real things, events, and facts. A judgment, proposition, or idea that is true or accepted as true; the property (as of a statement) of being in accord with fact or reality”

      Examples:

      The ball was blue.
      The ball was red.
      The ball was painted such that colorblind people thought it was a different color than those who saw it who were not colorblind.

      What happens when the colorblind observers find out that the ball appeared a different color to non-colorblind observers? A certain number of them will adjust their facts. Will all of them? Should they?

      Truth, Narrative Authority, Reality and Wikiality

      Stephen Colbert coined the term “truthiness.” I like it! This idea will become surprisingly important in the future as the source of news becomes more important. Here’s the dilemma:

      1. A left-wing cable news show reports some aspects of a physical event.

      2. A right-wing cable news show reports other aspects of the same physical event.

      3. My friend on Twitter, who claims to have been a witness, reports other aspects.

      4. My friend on Facebook, reports some mixture, without any qualifying statements.

      5. Another friend on Facebook or Twitter, writes an opinionated statement about the event.

      So, what actually happened? What is fact and what is narrative? Who has more truthiness? What is the reality? What is the Wikiality? Are these the same? Which source should I trust? Who has the narrative authority?

      The way to solve this problem is to filter and give weight to each source. Marshall McLuhan said, “the medium is the message,” but in the 21st century we say, “the median is the message.” If you are going to report the news, then you are going to have to be able to make the distinction between fact and fiction, truth and narrative, reality and wikiality. The median, the measure of the central tendency, will become the accepted truth — along the same lines as political philosopher John Stuart Mill’s idea of the tyranny of the majority. Stephen Colbert coined this idea as “Wikiality.” Urbandictionary.com defines it as: “a reality as determined by general consensus rather than cold hard facts. If enough people say it is true, then it is true.” J.S. Mill noted that the majority isn’t always right, it just so happens to be the most accepted. If we think about each physical event as a single data point, then the lines we draw to connect these lines can be thought of as the narrative. Think about giving meaning to random events as the equivalent of statistical curve fitting.

      The accepted narrative will either be the most compelling to us, or the one that is closest to the Truth. Maybe the best narrative doesn’t even connect all the lines, perhaps it is merely a line of best fit. Regardless of its shape, adding narrative comforts us because it lets us piece together random events — giving life a seeming progression and meaning and the ability to cope with nihilism.

      Under these circumstances, it makes sense that the key to narrative authority and Truth dominance is to tap into this narrative addiction and give the consumer/user/audience the most truthful data points or the most compelling narrative.

      But what happens when the truth is not the most compelling narrative?

      To be continued. Shelly Palmer