People are waking up to the fact that online advertising isnât what itâs cracked up to be.
Last month, Bob Hoffmanâs excellent The Ad Contrariannewsletter noted, âI believe the marketing industry has pissed away hundreds of billions of dollars on digital fairy tales and ad fraud over the past 10 years (in fact, Iâm writing a book about it.) If I am right, and if the article in question is correct, we are in the midst of a business delusion unmatched in all of history.â He linked to an article by Jesse Frederik and Mauritz Martin (also sent to me by another colleague), entitled âThe new dot com bubble is here: itâs called online advertisingâ in The Correspondent. In it, they cast doubt over the effectiveness of online ads, hidden behind buzzwords and the selection effect. If I understand the latter correctly, it means that people who are already predisposed to your offering are more likely to click on your ads, so the ads arenât actually netting you new audiences.
Hereâs the example Frederik and Martin give:
Picture this. Luigiâs Pizzeria hires three teenagers to hand out coupons to passersby. After a few weeks of flyering, one of the three turns out to be a marketing genius. Customers keep showing up with coupons distributed by this particular kid. The other two canât make any sense of it: how does he do it? When they ask him, he explains: âI stand in the waiting area of the pizzeria.â
The summary is that despite these companies claiming thereâs a correlation between advertising with them and some result, the truth is that no one actually knows.
And the con is being perpetuated by the biggest names in the business.
As Hoffman noted at the end of October:
A few decades ago the advertising industry decided they couldn’t trust the numbers they were being given by media. The result was the rise of third-party research, ratings, and auditing organizations.
But there are still a few companies that refuse to allow independent, third-party auditing of their numbers.
No surprises there. Iâve already talked about Facebookâs audience estimates having no relationship with the actual population, so we know they’re bogus.
And, I imagine, they partly get away with it because of their scale. One result of the American economic orthodoxy these days is that monopolies are welcomeâitâs the neoliberal school of thinking. Now, I went through law school being taught the Commerce Act 1986 and the Trade Practices Act 1974 over in Australia, and some US antitrust legislation. I was given all the economic arguments on why monopolies are bad, including the starvation of innovation in their sector.
Roger McNamee put me right there in Zucked, essentially informing me that what I learned isnât current practice in the US. And that is worrisome at the least.
It does mean, in places like Europe which havenât bought into this model, and who still have balls (as well as evidence), theyâre happy to go after Google over their monopoly. And since our anti-monopoly legislation is still intact, and one hopes that we donât suddenly change tack (since I know the Commerce Act is under review), we should fight those monopoly effects that Big Tech has in our country.
What happens to monopolies? Well, if past behaviour is any indication, they can get broken up. Sen. Elizabeth Warren is simply recounting American history when she suggests that thatâs what Facebook, Google and Amazon should endure. There was a time when Republicans and Democrats would have been united on this prospect, given the trusts that gave rise to their Sherman Act in 1890, protecting the public from market failures like these. Even a generation ago, theyâd never have allowed companies to get this influential.
Also a generation ago, we wouldnât swallow the BS an advertising platform gave us without something to back it up. Right now, it seems we donât have anythingâand the industry is beginning to cry foul.
Companies in FCA’s and PSA’s histories did once produce the Plymouth Horizon, so historically there is some precedent to a trans-Atlantic arrangementânot to mention the type 220 and 179 minivans and the commercial vehicles currently in PSA’s and Fiat’s ranges.
This is a few days old, but it’s nice to know that these hurriedly written thoughts on a private Facebook group reflected what I read a day later in the automotive press.
Copied and pasted from the above (and yes, I know it should be e-208):
I read that as well, Jonathan. Elkann would be chairman and Tavares the CEO. I guess Fiat had to move on from talking with Renault while they have their internal squabbles. While some praise Marchionne, I thought it was foolish to let the less profitable marques suffer as he didâthe global economy doesnât stay buoyant all the time and at some point not everyone will want a hotted-up Alfa or Maserati. Especially as there seems to be no cohesive platform strategy. I think Fiat realizes the shambles itâs actually in despite what the share price says. There is some sense to have PSA platforms underpin a lot of Fiats (letâs face it, very little of the Fiat range is on a Fiat platformâthere are GM, Mitsubishi, Mazda, Ford and PSA bitsâand the old Grande Punto platform can only go so far), but the more premium marques will still have to have unique platforms.
Fiat really needs to do some rationalization of its own before approaching others but my sense is that itâs gone too far down this road and has no investment in either next-generation B- (Jeep Renegade) or C-platforms (Giulietta) where a lot of European sales will still lie. Its only real prize here is Jeep.
Tavares will be able to slash a great deal and Europe could look good quite quickly, but I doubt anyone has any focus on the US side of things other than Jeep. PSA has some limited experience in South America but it wonât be able to integrate that as easily. And neither has any real strength in China despite being early entrants, with, again, Jeep being the exception. (Peugeot, DS and CitroĂ«n are struggling in China.)
He had claimed that PSA was looking at some sort of alternative retail model for the US, but it also seemed a bit far off.
If this happens, I think Tavares will âdo a Talbotâ on anything Fiat-related in Europe, eventually killing the Fiat marque (with maybe just a 208e-based 500 remaining), and keep Alfa Romeo, Maserati and Jeep. Chrysler will remain with the Pacifica, Dodge might still have the Durango, but everything else would get the chop unless they consider bringing in a rebadged 508. Ram and Fiat Profissional will stay as separate entities. Fiat do Brasil will get some PSA tech. Then there might be some logic to what is left but I still feel Fiat has to get itself in order first.
On reflection, maybe I was a little harsh on Sergio, as ignoring the mass-market brands has left FCA, with a portfolio of specialist and premium ones, a reasonably good fit for an organization that has the opposite set of strengths.
One question remains: which is the cheap brand, the Plymouth, here? You can’t always go premium: sooner or later, economies weaken and people will want something entry-level. There may be wisdom to retaining Fiat in some shape or form. One more 108 variant can’t hurt âŠ
Anyone notice a pattern here? That any company that owns Jeep eventually diminishes its own brand. Willys, Kaiser, AMC, Chrysler, and Fiat are either dead or no longer the forces they once were. Renault managed a controlling interest in AMC with 46·4 per cent in 1982, but that was bought by Chrysler five years later. At some stage, we must tire of these massive vehicles, and already there’s a suggestion that, in the US at least, nonconformist younger buyers are eyeing up sedans. Great if you’re Nissan in the US (and China), not so much if you’re Ford.
I believe one of the Democrat-leaning newspapers in the US compiles a list of lies by Donald Trump. I really think we should be doing one for Facebook, as it would make for impressive reading, though it would also take some time to compile.
Founder Mark Zuckerberg claimed he talked to media from âacross the spectrumâ, but as The Interceptâs Jon Schwarz and Sam Biddle discovered, this is another lie: Zuckerberg cultivates relationships with US conservatives, not their liberals, based on the duoâs checks.
This adds fuel to the fire that Zuckerberg dreads US senator Elizabeth Warren getting into the White House, and has said so, and we know the buck really stops with him when it comes to Facebookâs activities. Facebook even pulled Sen. Warren’s ads from their platform briefly: so much for impersonal algorithms, ‘We’re just a platform,’ and free speech. We also know from Rep. Alexandria Ocasio-Cortezâs questioning of the Facebook founder that he claims he passes the buck on what media are considered legit to a conservative group, something heâll have sanctioned, so be prepared to see Facebook reflect his (and Trump-supporting, Facebook board member Peter Thielâs) right-wing political views.
As Schwarz and Biddle also note, Facebookâs VP for US public policy is a George W. Bush aide and a board member for the former presidentâs museum.
Jack Morse at Mashable, meanwhile, reported that Zuckerberg is attempting historical revisionism on why he started Facebook. Retconning might work with comic books but less so in real life. Apparently, instead of the truthâa website which scraped photos of students and asked people to rate who was hotterâFacebook is now something created to give people a voice after the Iraq war in 2003.
Sorry, Mark, we know you didnât have such noble intentions, regardless of what they eventually became.
Itâs an insult to all those entrepreneurs who actually did start businesses or ventures with noble intent or socially responsible purposes.
Frankly, sticking to the truth, and saying you discovered the power of connecting people, is a far more compelling story.
Except, of course, Facebook no longer connects people. It divides people by validating their own biases, including less savoury viewpoints. It stokes outrage because that’s worth more clicks and time spent on its site. At worst, itâs a tool used for genocide. It’s a shame Facebook refuses to acknowledge the Pandora’s box it has opened, because its top management has no desire to do a thing about it. And as such it loses my respect even further. Don’t want the likes of Warren calling for breaking your company up? The solution is actually quite simple, but you all have become too rich and too establishment to want to break things.
I actually had to write this in my opâed for Lucireâs 22nd anniversary last week: âIn this respect, we see our mission as the opposite of social media: we want to bring people together, not usher them into silos and echo chambers.â The narrative Facebook wishes to spin, like so many in its past, is an easily seen-through joke.
I had a call from a nice gentleman working for Google called Shabhaz today. No, he wasnât about to tell me that I wasnât on the âfirst page of Googleâ: he worked for Google My Business, where they want to verify businesses and suck them into the ecosystem, complete with dashboard and social features.
Iâve always ignored the postcards that come and the one time my curiosity was piqued, the blasted site didnât work anyway. I canât remember the specifics now, but I recall my usual reaction: âWhat Google says and what Google does are entirely different things.â You come to expect it from US Big Tech.
I suppose if you ignore it for enough years, the Big G phones you.
I proceeded to tell Shabhaz all the reasons I hated (actually, thatâs not strong enough a word) his firm, but kept repeating, âIâm not angry at you, only at your employer.â And words to the effect of, âA man has to make a living, so I donât have a problem that you work for them, but this is a firm with highly dubious ethics.â
He did say, âIf I had that experience, Iâd hate them, too,â and I had to correct him and expand on the stories: âItâs not just about my experienceâitâs all the things Google does that violate our privacy, not just mine, but everyoneâs.â
Nevertheless, you canât stay angry at a guy who has had nothing to do with his bossesâ incompetence, greed, avarice and tax avoidance, and is only trying to collect a pay cheque, so I agreed to help him out.
Of course, it didnât work as planned, as updating the address leads to this:
The house has only been there since 1972, and Google Earth has it, but then we all know that Google Earth operates in some kind of parallel universeâparallel to even Google My Business, it seems. One day, I suspect Google will catch up with houses built in the 1970s.
But seriously, with three businesses all linked to my email address (Heaven knows how) I wonder if anyone has ever got any business through Google My Business.
Iâve been on Linkedin longer than most people I know and Iâve never received any work enquiries from it.
And Iâve yet to have anyone tell me that they found my business through Google, so Iâm tempted to delete the listings for Jack Yan & Associates and Lucire from the My Business dashboard.
The thing is, I donât want to read your reviews about my businesses on Google. I donât want to risk getting piled on by unethical actors, which totally can happen in this day and age. If you want to reach us, thereâs a good contact form with all the addresses on our sites.
So whatâs the prognosis out there? Since I actually donât use the site except as a last resort, and have little desire to, your experience far outweighs mine.
On a related note, this also made me wonder about competence.
Iâve never given my permission to be in the Yellow Pages. And the fact that Lucire does screen printing is news to me. Who makes up this bullshit and tries to pass it off as authoritative?
A Tweet to them is so far unanswered, so I may get in touch with them to have this listing removed. This one I can answer: since Iâve never been in the Yellow Pages, I can say, hand on heart, that Iâve never had any business from them. By the looks of it, theyâll never send me anything relevant anyway.
In summary, today’s thought about Google:
With any other business that screws people over this badly and this often, weâd avoid it as much as we could. Instead, most go to Google, pull their trousers down, and bend over.
Is it just me, or are companies getting more stupid by the day?
July 25, 2019
Marshall Freeman Collections (NZ) Ltd.
PO Box 302-218
NHPC
Auckland
Ladies and Gentlemen:
I am in receipt of your letter dated the 19th inst.
If you are indeed an extension of Plumbquickâs credit control department, you should check with them about their procedures.
You may wish to ask the following.
(a) When booking the job, did your client take down my credit card number?
(b) Did your client advise me that if the invoice was not paid that they would charge that credit card?
(c) Did I offer your clientâs plumbers payment on completion of the job on the day but they said it would be sorted out with their accountsâ department, especially if they already had my credit card on file?
(d) Did your client send out their invoice dated May 21, 2019 with a due date of May 21, 2019, which would result in my reasonably expecting that (b) would take place?
Now, since I am not in possession of a time machine, and considering I received the invoice on May 25, 2019, all four questions above should be answered in the affirmative.
Your client needs to be advised to, first, contact the customer themselves (well before July 19, incidentally), secondly, follow their own procedures, and thirdly, not provide a credit controller with a fiction about a late payment. I have no desire to affect excellent credit that I have spent decades building because of another partyâs negligence.
I trust this clears this matter up.
Yours faithfully,
In case you’re wondering, my credit card has been charged.
I also highly recommend Bernie and Pipe Dream Plumbing in Tawa.
I see Googleâs going to stop supporting Huawei as a developer. How is this a bad thing?
First, Huawei can still get the public parts of Android, since theyâre open-source. Secondly, if they donât get updates ahead of time, so what? When have western software companies rolled out bug-free updates? Based on my own experience, Chinese cellphone developers make stuff that just works, and Iâm inclined to trust them more these days.
Thirdly, no one needs all that Google crap anyway: I always said that if it disappeared overnight, weâd all find replacements within a week. Now Huawei has toâin fact, it already has them.
Anyone who owns a Chinese phone made for the Chinese market already knows that they have their own app stores. Why do you actually need YouTube through an app when you can browse to the website? Maybe Huawei will do a tiny YouTube app that only surfs to their site for those keen on getting into the Google snooping network. Is a Gmail app really a must if you can set up your phone really easily as an email client to pull from Gmail? As to maps, Iâve been using Here Maps since Iâve had my Meizu M2 Note in 2016, and while it isnât perfect, itâs more than adequate. Recently I found they had maps of the Chatham Islands when the carsâ sat-nav didnât.
All Huawei really needs to do is roll out its own app store to its western phones with decent enough translations, and make sure itâs updated with the APKs.
I have a better Meizu weather app on my phone than anything Iâve ever found on Google, and Iâm sure Huawei has its version. I owned a Huawei phone many years ago, although it was from my telco and I never had it rooted. It came with a suite of battery-draining Google junk, including services that you could switch off only to have them restart; but when I was able to get a Google-free phone, Iâve never looked back. When that phone was replaced, I made sure the next one was Google-free as well.
Whatâs going to happen is that Google and the US will lose out as Huawei might find itself zooming ahead with a superior app store, and its own developments may outpace the Americansâ.
Corporate America may be patting itself on the back, and their president may think he was doing their bidding, but I think theyâll find themselves weakened.
I was fascinated to read a New Zealand Herald story on the MÄori asset base, though it wasn’t the financial part that hit me. What was more significant were the principles behind MÄori businesses.
About 15 years ago, when chatting to a woman representing a MÄori winery, I said that she had an amazing opportunity to show that MÄori were far ahead of the game when it came to corporate social responsibility, something that was close to my heart with my work for Medinge Group. Itâs interesting to see that that impression I had in the mid-2000s wasnât wrong, and is now backed up by Dr Maree Roche of Waikato University.
She identifies five values behind MÄori leadership, which blends their needs to support marginalized communities, kaupapa, and contemporary influences.
The values are:
whakaiti (humility): the leader enables others but doesnât take credit themselves;
ko tau rourou and manaakitanga (altruism): ensuring the well-being of others and the generosity of spirit;
whanaungatanga (others): collectivism and relationships with past, present and future generations;
tÄria te wÄ and kaitiakitanga (long-term thinking and guardianship);
tikanga MÄori (cultural authenticity).
Youâll recognize a lot of the same words used in much of Medingeâs work on humanistic branding: the need for serving communities; to consider far more than the immediate quarter (âfinance is brokenâ); and being authentic.
MÄori may find themselves better equipped with their newer organizations to weave in a message about CSR, considering the successful ones already practise it for their own people. Translating that in an export market, for instance, to serving a cause that is of concern to that market, should be comparatively easier than for a company so entrenched in delivering quarterly results to shareholders. Promoting ties between tangata whenua and the export market could be of interest, especially in Asia where many of the same ideas about family, whÄnau and community are shared. They are in an advantageous position and those of us in New Zealand would be foolish to ignore it.
In amongst all the political fallout of the National Party this weekâwhat Iâm dubbing (and hashtagging) âcaught in the Rossfireââwas a series (well, over 100) Tweets from Morgan Knutson, a designer who once worked for Google. Unlike most Googlers, especially the cult-like ones who refuse to help when you point out a fault with Google, Knutson decided he would be candid and talk about his experience. And it isnât pretty. Start here:
Now that Google+ has been shuttered, I should air my dirty laundry on how awful the project and exec team was.
I'm still pissed about the bait and switch they pulled by telling me I'd be working on Chrome, then putting me on this god forsaken piece of shit on day one.
Or, if you prefer, head to the Twitter page itself, or this Threader thread.
As anyone who follows this blog knows, Iâve long suspected things to be pretty unhealthy within Google, and it turns out that itâs even worse than I expected.
A few take-outs: (a) some of the people who work there have no technical or design experience (explains a lot); (b) there’s a load of internal politics; (c) the culture is horrible but money buys a lot of silence.
Knutson claims to have received a lot of positive feedback, some in private messaging. His Tweets on the aftermath:
Iâve received a number of DMs from former and current google employees that say theyâve experienced similar things.
Bad politics, mismanagement, and back-stabbing colleagues.
This, I thought, summed it up better than I could, even though I’ve had a lot more space to do it:
This reads like a Google version of 'Chaos Monkeys': unvarnished, unblinking, just the right amount of sneering, and merciless when it comes to arrogant mediocrity and the machinery of cushy ass-kissing mixed with an un-fuck-up-able monopoly that underwrites the outlandish pay. https://t.co/PmB6zYwgZT
Many of you know that I no longer use Facebook for my personal stuff. However, there are still work things to do, although I’ve noticed Facebook pages get more and more useless by the day. Here are the stats for my Facebook page:
And now, you can no longer post links to YouTube videos on to pages. Facebook just gets stuck, trying to ‘import’ the link. I’ve tried this from different accounts and had to give up, opting to upload directly into Facebook, which is probably their (unannounced) plan anyway.
YouTube’s uploading took ages, too. Or, rather, it took ages to find an uploading link. Dailymotion and Vimeo have, by far, superior interfaces.
Yet, ladies and gentlemen, these are among the top three websites in the world. You truly have to wonder why, in the face of overwhelming evidence of tracking in one case, and privacy breaches in another. Facebook had been pretty hopeless as a traffic referrer anyway, and I wouldn’t be surprised if others woke up to the fact it is worsening as a business platform.