Month: November 2019

  • Media agency interviews & things that made last week

    Media agency interview with Simon Peel of Adidas

    There is a certain irony in a media agency that promoted just the kind of short-termist platforms for advertising, interviewing Simon Peel. Still we have the echoes of a disruption narrative ripping through advertising spend and and brand equity like a hot knife through butter. More on simon here.

    Subprime car loans

    The FT on the subprime car loan problem from an economic perspective that’s frightening in its scale. This is one of the biggest threats to the move to electrification in cars. Admittedly this threat compounds problems such as:

    • Energy density which leads to the range anxiety of the cars
    • The escalating price of lithium
    • The finite supply of lithium
    • The difficulty in recycling lithium ion batteries
    • Electric power grid infrastructure
    • Charger maintenance

    Ko Hyojoo

    Asian Boss have done this great film with Korean long board rider Ko Hyojoo

    US personal hygiene Irish Spring doing some interesting (and cheap) activations in sports. Irish Spring Celebrates College Football Rivalries 11/27/2019 | Media Post

    Vangelis

    A couple of years old now, but this a great short film highlighting the cultural impact on music of Vangelis’ soundtrack to Blade Runner.

    Vangelis was a famous electronic artist before he worked on Blade Runner. He had made a number of solo albums as soundtracks for animal documentaries and the Chariots of Fire soundtrack. He was also working as part of Jon and Vangelis on successful albums throughout the 1980s. But his work on Blade Runner seems to have been the film that crystallised his place in electronic music culture. Blade Runner wasn’t a runaway success at the box office, but instead took over time on video rental as word of mouth went around. Eventually it was released in a number of different edits that helped boost its popularity. By the time DVD as a format came around, it was one of the first obvious choices for the format.

  • Dark mode + more things

    Opinion | Living in Dark Mode – The New York Times – of the Hong Kong liberation movement was a plot device in a William Gibson novel, I would expect him to write a character like Karen. (Paywall) – dark mode is a great metaphor for the dystopian ennui. Yet I find it much easier to work in dark mode on my computer, which provides an interesting contradiction to idea

    Hong Kong Protests (October 31)

    As facial recognition tech races ahead of regulation, Chinese residents grow nervous about data privacy | South China Morning Post – interesting that concerns are starting to appear around privacy and biometrics

    Will Reddit Ads or Facebook Ads Have Lower CPC? – yes

    The white working class is a political fiction | The OutlineIt turns the working class into something people are, not a function of what they do. It becomes a cultural description totally divorced from labor and wealth, only to be gleaned from outward displays of “class” that come with intelligence, appearance, taste, and all those things that make up meritocratic ideas of “workers.”

    The Uber Bubble: Why Is a Company That Lost $20 Billion Claimed to Be Successful? – early similar to a lot of dot com businesses

    An update on YC China – Silicon Valley retreating from China.

    Daring Fireball: Tim Cook Appears Alongside Trump in Re-Election Campaign Ad Shot in Mac Pro Plant in Austin – ironic given Apple’s actions in Hong Kong

    How a Zara shirt raises ethical issues in sustainable fashion — Quartzy – (paywall)

    Is TikTok really a national security threat? | Slate – yes it is

    Dynamic Norms Promote Sustainable Behavior, Even if It Is Counternormative – Sparkman & Walton – Association for Psychological Science paper on dynamic messaging

    Mobile: Social – Unpacking what holds the loyalty industry back… from what it could be. | LinkedIn – wider implications around people who’ve been conditioned by mobile ( and other technologies towards internet, multi-channel TV etc) to expect instant gratification in general

    Zuckerberg’s Anti-China Rhetoric Roils Facebook Employees — The Information – Facebook is grappling with its large community of Chinese employees, some of whom are becoming more vocal and critical in internal company forums over what they claim is a bias against mainland China. (paywall)

    Chinese netizens think Mark Zuckerberg betrayed China – The Facebook CEO has been widely admired in China, but his more recent negative comments about the country aren’t going over well | Abacus – why should Zuckerberg care

  • Internet freedom

    Sacha Baron Cohen won an award and made a speech on internet freedom at the Anti-Defamation League awards. He’s a really good orator. Sufficiently good that the likes of Alphabet, Facebook and Twitter must be thankful that he doesn’t have a political office (yet). Check it out, its well worth half an hour of your time.

    It feels like things are coming to a head.

    #wirsindmehr

    The landscape

    China has been preaching cyber-sovereignty (and taking advantage of the laissez faire western platforms for its own dark ends). The parallels between 1930s Germany and the current Han nationalist policies of China’s communist party can’t be overstated.

    The British government is afraid, and has failed to release its own report on whether Russian influence operations shaped UK election outcomes.

    In the US, we have an armed man driving across the country and opening fire in a restaurant to investigate the veracity of a conspiracy theory posted online.

    Baron Cohen outlines his own examples:

    …when Borat was able to get an entire bar in Arizona to sing “Throw the Jew down the well,” it did reveal people’s indifference to anti-Semitism.  When—as Bruno, the gay fashion reporter from Austria—I started kissing a man in a cage fight in Arkansas, nearly starting a riot, it showed the violent potential of homophobia.  And when—disguised as an ultra-woke developer—I proposed building a mosque in one rural community, prompting a resident to proudly admit, “I am racist, against Muslims”—it showed the acceptance of Islamophobia.   

    Sacha Baron Cohen’s keynote speech at the ADL
    The internet’s role

    The internet has come a long way since the Clinton administration heralded its rollout as a sign of great things to come. It has worked its way into our homes, replacing brown goods in the living room and empowering the home computer and games console. From there it has slipped into our pockets and on to our wrists through our cellphones and watches.

    For many people, the internet mediates many of their daily social interactions. It is the channel for popular culture and current affairs. All of which has been curated by algorithms for them. It takes a considerable effort to step out of that.

    I still:

    • Buy my music rather than subscribe to it
    • Pay for a news reader to curate my own online reading
    • Try and limit my reactions on social media to my own curation of content for others, rather than taking in content there

    I work within the media industrial complex. I have a good idea of what’s possible.

    That isn’t to say that there was a golden age where the internet was a haven of enlightened thought and polite debate. If you believe that, you’re wrong. As Baron Cohen eluded to in his keynote:

    Conspiracy theories once confined to the fringe are going mainstream.  It’s as if the Age of Reason—the era of evidential argument—is ending, and now knowledge is delegitimized and scientific consensus is dismissed.  Democracy, which depends on shared truths, is in retreat, and autocracy, which depends on shared lies, is on the march. 

    Sacha Baron Cohen

    Firstly, the move to the fringe had been a relatively recent phenomena. Following his 1968 ‘rivers of blood’ speech, Enoch Powell had a 74 per cent approval rating amongst British people according to a poll done by The Gallup Organisation.

    About the same time, my parents told me about the ‘No Blacks, No Irish, No Dogs’ signs. These were found in many British towns at the same time that hippies were advocating peace and love

    The fringe that Baron Cohen talks about existed in live music venues and concert sold music merchandise for bands like Skrewdriver. I was just that bit too young to see the National Front marches that happened in various cities in the 1970s. Rock Against Racism again was something I just missed out on. The 1980s had the right wing skinhead movement as much more on the fringes. This was complicated by the various tribes

    • ‘Traditional’ skin heads who loved ska, loved their mates and weren’t afraid of a good fight
    • Left wing skin heads who tended to be more of a European thing
    • Anarchist affiliated skin heads, who were similar to anarchist affiliated punks
    • Skin heads who were affiliated with progressive causes such as animal liberation and gay rights

    There were fanzines passed around. Books were given limited private pressings and sold via mail order. A guy I went to college with had a reputation being a ‘weirdo’. Everywhere he went (in US army surplus clothing including a cold war era steel helmet. Everywhere in his wake he left Combat 88 stickers and warned anyone who would listen of the coming race war.

    European games programmers developed a concentration camp manager simulator with a game play mechanism similar to The Sims. This was distributed over bulletin boards and the ‘sneaker net’ – copied on to diskette and shared with other people.

    Stormfront set up a dial-up bulletin board in the US, which then moved on to the nascent web.

    There was hate speech, conspiracy theorists, paedophiles and worse on the internet. At first a certain amount of technical skill, provided a barrier between the mainstream user and the content. Not everyone had a handle on Usenet groups or IRC channels for instance.

    Then as the volume of web sites increased massively there wasn’t an effective way to have these ideas served to you unbidden unless you had a dig around to find forums of likeminded people like Stormfront.

    Stormfront’s founder said

    “provide an alternative news media” and create a virtual community for the fragmented white nationalist movement.

    From hope to hate: how the early internet fed the far right – The Guardian

    Google’s search engine made it a bit easier to find web-based forums for pretty much anything under the sun.

    Baron Cohen isn’t trying to remove all the fringe content from the web. It would be an almost insurmountable battle. It takes the Chinese government a lot of effort. And that’s dealing with:

    • One written language
    • A limited amount of internet companies
    • Absolute control over the country’s internet infrastructure
    • Tens of thousands of censors and engineers working full-time on maintaining a harmonious internet that still has a lot of hateful sentiment under the guise of Han nationalism
    When platforms become publishers

    The first thing that comes through about the the platforms that Baron Cohen discusses:

    • Alphabet (Google, YouTube)
    • Facebook (Facebook, Instagram, WhatsApp)
    • Twitter

    All of these platforms (like Yahoo! before it) are afraid of being considered to be publishers. Being a publisher brings a host of obligations that require resources to address. Things like:

    • Editors
    • Respecting intellectual property rights
    • Defamation and slander law liability (outside US)

    All of these things put you inside the remit of often contradicting laws of different countries. So it is in the financial interests of these companies to back ‘extreme free speech’.

    As the popularity of these platforms increased a few things happened:

    • On social platforms, the amount of content available to view increased to a point that it became unmanageable for the average consumer
    • The situation is similar with video platforms
    • On search platforms, providing the best search provided competitive advantage by serving up whatever consumers wanted. If consumers don’t find what they want through your search engine, they may build up a habit with someone else’s service
    • They started to have a large amount of audience knowledge which they parleyed into targeted advertising
    Why algorithms?

    Algorithms are all around you.

    • They amplify easy paths. It’s when you start looking at a shopping site and they suggest other products that it thinks you might be interested in
    • It’s when Google knows that there are cats in a picture when you go looking for cats
    • It’s when you’ve finished Narcos and Netflix suggests that you might like Peppa Pig because parents fail to set up a separate profile for their children and have watched Narcos once the kids are in bed
    • On social it’s more subtle. It sees what you, or people it thinks are like you engage with ad serves up more of it. That way you no longer have to worry about wading through everything your contacts have shared

    The problem is that this creates filter bubbles. And in the filter bubble it reinforces everything it thinks that you want to see. You’re no longer the one alien obsessed guy down the pub, but connected to alien conspiracy nuts just like you.

    However all is not what it seems. Marketers, particularly agency marketers like myself when we get together bemoan the effectiveness of Facebook in particular.

    • Organic reach of a given post has declined massively. Ogilvy did some great research on it five years ago, aggregating data on client accounts of different sizes from around the world.
    • An appreciable amount of the audience for content on Facebook isn’t real. Viewable impressions could be only 60% of the total impressions served. Maybe less.
    • The average view time will be less than 5 seconds
    • In terms of brand building metrics such as memorability and landing messages it terms to be no great shakes
    • It can be great if you have a particular call to action like ‘buy now’

    But it makes it much harder for us to believe fully in the picture that Baron Cohen portrays.

    • Is Facebook (and other social platforms) a horrible place. Yes it can be
    • Do the leadership of these companies have values that are way out of step with the countries that they live in. Absolutely.
    • Are they as powerful as Baron Cohen believes? Again, they can be. But probably not the universal power of evil overlords that the media would have you believe. That’s not about intent, I am sure they’d love the power. Instead, they’re just not that good.
    Lets have a chat about machine learning

    The secret sauce that a lot of these companies are trying to use is something called machine learning. Its the stuff that the media says will steal your job. You might hear the phrase AI or artificial intelligence used interchangeably with it.

    It is good for some specialist things, but not nearly as sophisticated as the media would have you believe. Its no good in tasks that have a degree of uncertainty or ambiguity. Its not perfect at making judgement calls – just look at your email account’s spam email filter.

    This is the technology that people expect to make calls about the kind of ethical issues Baron Cohen discusses – its not going to happen any time soon.

    It’s not all about the internet

    In Baron Cohen’s own words:

    Zuckerberg says that “people should decide what is credible, not tech companies.”  But at a time when two-thirds of millennials say they haven’t even heard of Auschwitz, how are they supposed to know what’s “credible?”  How are they supposed to know that the lie is a lie?

    Baron Cohen’s point is that when truth and alt facts are put together with equal weighting, the audience finds it hard to differentiate or retain the content. That lack of knowledge or mass ignorance isn’t solely a failure of technology. Collectively society has failed to make everyone air of shared objective truths.

    Solutions?

    Baron Cohen talks about freedom of speech not being equal to freedom of reach. The reality is that social content typically reaches 1% of followers. The exception is if the content becomes popular with that 1%. It is not algorithms on their own.

    He also talks about regulating platforms in a more similar way to newspapers or TV stations. In truth social media is closer to public access television in the US around about the time of the 1984 Cable Communications Act. All be it, with advertising and reach that CNN could only dream of.

    Slowing down the posting of content, Baron Cohen talks of this as a possible solution. It will certainly remove some of the heat. It’s not certain if he wants this to included a review of every post prior to publication. If so, that will require a lot of people to augment a lot of machine learning.

    If a service becomes less agile, it would also leave the space open for new services to pop up – creating Mark Zuckerberg’s worst nightmare. Chinese companies stealing his market share and money that should go into Facebook’s coffers.

    Not that simple

    Let’s talk about shared truths for a bit. We can all agree on scientific truths such as the earth going around the sun, Newtonian physics and even quantum physics. Things start to come apart when one considers real world events. The Chinese will have a very different view to people in the west.

    Imagine for a moment if China through the Hong Kong government could deprive the pro-democracy protestors of their ability to organise online? The Chinese government narrative would be something along the lines of:

    • They’re splittists
    • Spreading hate and violence against innocent Chinese
    • Racists against their own people

    Or what happens to Russian opposition leader Alexei Navalny when he was recently interviewed by the Financial Times. Then there is the issue of what nation states do to each other

    …the Kremlin’s success was less in manipulating the west than creating the perception it was able to do so. “You can spend $500,000 on Facebook ads and for several years the whole establishment of a huge western country will go nuts about interference, even though its real effect is risible. The investments are minimal but they give you front pages and power.

    Alexei Navalny: ‘Why don’t they come and sit in jail with me?’ | Financial Times 

    Most of the world would probably beg to differ, but once we go down the road of regulation it will open up new problems and dilemmas. Regulation wouldn’t save the Rohinga from the counter insurgency (COIN) operations of the Myanmar government.

    The problem needs to start with people. We’re at our technologically most advanced and yet we seem to be living in the dark ages. A secondary issue might be the technological devices that we use to access the internet. Baron Cohen talks about the need to slow down the posting of content. This would be to reduce the frenzy of views and instant venting of pure emotion.

    Part of that is down to the platforms, but part of it might be device design. I have been giving some thought to that last point. More in it another time.

     

  • Car into a smartphone + more

    Horace Dediu on the transformation of the car into a smartphone. Turning a car into a smartphone isn’t a technology revolution that particularly excites me. I prefer things that can kill me to be using highly reliable real time operating systems with no real time network connectivity – if they have to run software at all. Former Thai finance minister Suchart Jaovisidha who was locked inside his BMW limousine by its onboard computer is a lesson to us all.

    China Mobile 5G launch video is absolutely terrifying and probably the best advert for LTE that I’ve ever seen.

    China Mobile Hotspot

    Consumer use case doesn’t seem to be that high on their priority. So there’s no downloading of Netflix style TV in a flash.

    So what is the killer app? It isn’t autonomous cars, or life saving tele-medicine. But dystopian omnipresent Chinese security. There’s no way I’d be buying a Huawei 5G handset after watching this. It has extra resonance with the current ‘Be Water’ protests going down in Hong Kong. More wireless related posts here.

    I am guessing that China Mobile won’t be handing out copies of Shoshana Zuboff’s The Age of Surveillance Capitalism. Here some of the books main topics are discussed by Shoshana Zuboff, Carole Cadwalladr, Paul Hilder and Shahmir Sanni.

    VCCP’s first campaign for Cathay Pacific is interesting. It has moved away from the professional business traveller to focus on the leisure travel market. This might be a bet on where the Hong Kong economy is going and a ploy to try and tap into the burgeoning Chinese luxury travel market. I suspect that a good deal of it is Cathay Pacific not being price and service competitive with the likes of Oatar Airways on premium long haul flights.

    For me this was a generic ad highlighting Cathay’s overall service rather than the business class experience. which is wedged in awkwardly on the end.

    Finally, Robin Sloan’s short story The Sleep Consultant | The Meteor – feels like as if William Gibson started writing for Monocle.

  • US military right to repair + more

    Here’s One Reason the US Military Can’t Fix Its Own Equipment – The New York Times – the irony of the US military being restricted by US legislation and lack of ‘right to repair’. US military withdrawal from R&D hasn’t help things either. DARPA does pure research, but the focus on COTS (commercial off the shelf) solutions by the US military has seen a withdrawal from more practical applications. Where is the modern US military equivalent of things like the Piccatinny rail standard? More security related content here.

    KSC-20191102-PH-BOE01-0001

    Facebook’s fake numbers problem — Lex in depth | Financial TimesFacebook’s own estimates suggest duplicate accounts represent approximately 11 per cent of monthly active users while fake versions make up another 5 per cent. Others claim the total is higher. Yet Facebook continues to promote its user base as an incredible 2.45bn per month — close to one-third of the global population.” – ok so some of the logic is wonky, but the underlying point is very interesting

    Adidas is shutting down its Speedfactories in Germany and the US — Quartz – Adidas is apparently moving this to APAC which negates the agile advantage. Is this more about Capex and recent poor financial results instead?

    Sidewalk Labs document reveals company’s early vision for data collection, tax powers, criminal justice – The Globe and Mail The community Alphabet sought to build when it launched Sidewalk Labs, she said, was like a “for-profit China” that would “use digital infrastructure to modify and direct social and political behaviour.” While Sidewalk has since moved away from many of the details in its book, Prof. Zuboff contends that Alphabet tends to “say what needs be said to achieve commercial objectives, while specifically camouflaging their actual corporate strategy.” – some of the most sinister stuff I’ve heard of, that hasn’t been originated by Chinese Communist Party cadre

    E-Commerce Content Marketing: A 2020 China Trend | PARKLU – basically OTT shopping TV

    Luxury Daily | Breitling in step with resale mood launches online trade in programme – or a way of stimulating sales. Rolex seems to have sucked a lot of the momentum out of the luxury watch market. Breitling and and other brands like IWC have suffered

    Chaebols and firm dynamics in the Republic of Korea | VOX, CEPR Policy PortalMoving from low- to high-income status implies that countries escape the middle-income trap. This implies institutional reform to create innovation-based growth. The column uses firm-level data to show how the Korean government’s chaebol reforms in the late 1990s transformed the economy from an investment-based to an innovation-based model. There are lessons here for China.

    USAF officer says China brags about stealing US military tech, they call it “picking flowers in the US to make honey in China” | War Is Boring”China devotes significant resources at a national level to infiltrate our universities and our labs,” Murphy stated. “They are doing it for a reason. They’ve even coined the phrase, ‘Picking flowers in the US to make honey in China,’ which I would say perfectly illustrates their deliberate plan to steal R&D, knowhow, and technology

    Why are so many countries witnessing mass protests? | The Economist – interesting on how there isn’t necessarily a clear correlation of reasons, despite efforts to find a pattern – (paywall)

    Apple, TikTok draw congressional rebuke for skipping hearing on China – The Washington Post – I hope that they get penalised

    Dialog 50 cent SoC Targets Disposable Bluetooth Market | EE Times – environmental disaster in waiting

    Smartphones Rule. But Should They Control Cars? | EE Times – no they shouldn’t

    Something in the air – Why are so many countries witnessing mass protests? | International | The EconomistAs Red Flag, an Australian socialist journal, sees it: “For more than four decades, country after country has been ravaged by neoliberal policies designed to make the mass of workers and the poor pay for what is a growing crisis in the system.”

    Opinion | Why Google’s Quantum Supremacy Milestone Matters – The New York TimesIn everyday life, the probability of an event can range only from 0 percent to 100 percent (there’s a reason you never hear about a negative 30 percent chance of rain). But the building blocks of the world, like electrons and photons, obey different, alien rules of probability, involving numbers — the amplitudes — that can be positive, negative, or even complex (involving the square root of -1). Furthermore, if an event — say, a photon hitting a certain spot on a screen — could happen one way with positive amplitude and another way with negative amplitude, the two possibilities can cancel, so that the total amplitude is zero and the event never happens at all. This is “quantum interference,” and is behind everything else you’ve ever heard about the weirdness of the quantum world.

    5G will only be as revolutionary as the devices we design for it — Quartz“When we’ve spoken with consumers who carry the latest smartphones today, and you talk with them about 5G, what these users are saying is that the current form factor and feature sets cannot take advantage of the promise of 5G,” Sethi told Quartz. While smartphones are great for reading the web, watching videos, and checking emails, there’s not much that a considerably faster connection speed will do for them that they can’t already do.

    Unreal life: just 21% of Brits believe internet personalities portray life honestly | YouGov – about authenticity as a concept….

    Letter of the US attorney general – very thoughtful defence of end-to-end cryptography in the face of sensationalist ‘protecting children’ claims

    How China’s mystery author called its economic slowdown | Financial Times – interesting read about the end of China’s growth

    I Accidentally Uncovered a Nationwide Scam on Airbnb – VICE – the interesting bit is that AirBnB don’t care if people get grifted

    China effectively bans online sales of e-cigarettes | Revue – given that: China invented the e-cigarette and the government has a monopoly on smoking sale. This isn’t the market opportunity loss Juul et al might think that it is

    IPA | IPA reacts to Twitter’s political ad ban If online platforms won’t commit to a publicly available, platform-neutral, machine-readable register of all political ads and ad data online, then they should consider following Twitter’s lead in banning political advertising – and even then what would the first solution solve, given the failure of legislative regulation – what’s the point of a register when you have both major parties more crooked than a yakuza convention, but without the style?

    IPA | IPA Insight Infographic: Smartphones – interesting point for me is that the phone alarm didn’t appear on this

    IPA | Legal Update 31 October 2019Google announced that they are making changes to YouTube to address the substance of the FTC’s concerns and will apply these changes globally. The changes, which will be rolled out from January, include:• moving families over to YouTube Kids through notifications and educating parents about its benefits;• identifying Made for Kids content on YouTube via a combination of input from creators and machine learning; and • no longer serving personalised ads on Made for Kids, for all users regardless of age, and serving only contextual ads on this content