The online field has been one of the mainstays since I started writing online in 2003. My act of writing online was partly to understand online as a medium.
Online has changed in nature. It was first a destination and plane of travel. Early netizens saw it as virgin frontier territory, rather like the early American pioneers viewed the open vistas of the western United States. Or later travellers moving west into the newly developing cities and towns from San Francisco to Los Angeles.
America might now be fenced in and the land claimed, but there was a new boundless electronic frontier out there. As the frontier grew more people dialled up to log into it. Then there was the metaphor of web surfing. Surfing the internet as a phrase was popularised by computer programmer Mark McCahill. He saw it as a clear analogue to ‘channel surfing’ changing from station to station on a television set because nothing grabs your attention.
Web surfing tapped into the line of travel and 1990s cool. Surfing like all extreme sport at the time was cool. And the internet grabbed your attention.
Broadband access, wi-fi and mobile data changed the nature of things. It altered what was consumed and where it was consumed. The sitting room TV was connected to the internet to receive content from download and streaming services. Online radio, podcasts and playlists supplanted the transistor radio in the kitchen.
Multi-screening became a thing, tweeting along real time opinions to reality TV and live current affairs programmes. Online became a wrapper that at its worst envelopes us in a media miasma of shrill voices, vacuous content and disinformation.
Shutting down is a conscious choice. You might see it described as digital detox or a digital break. I, like a number of people that I know have a ‘dumb’ phone to complement my smartphone. This is different from the pre-broadband era of the internet where going online was an active decision punctuated by the sound of the modem.
At that time, keeping in touch was an active decision rather than the tyranny of the pings from messaging applications. We cocooned ourselves from each other with a personal audio soundtrack via an iPod or a Discman. This cocooning effect was viewed to have a positive effect on personal autonomy was called the Walkman effect by sociologists.
Once you used a device be it the modem-connected PC, TV or music player you went through the act of shutting down devices. My parents still go room-to-room at night shutting down devices.
My Nokia N95
Over the past two decades we have stopped shutting down. A number of things happened:
Phone as Swiss Army knife. Cellphones quickly became our alarm clock. Working on the Nokia N93 launch with Flickr (then part of Yahoo!) felt like a watershed moment allowing photos to be taken and shared instantly online. During the July 7th London bombing, I got home by navigating with the ring bound A-Z atlas of London, which lived in the bottom of my backpack. Now I have four apps that would use depending what I wanted to do.
Device as social currency, your smartphone says as much about your economic health as your car. It’s a hygiene level of status, just like branded training shoes (sneakers) were when I was at school.
Synchronous social media. The now long-forgotten iNQ SkypePhone, BlackBerry and Danger Sidekick heralded no-shutting down engagement.
Dark patterns / design techniques used to encourage app or service use as a compulsion. It is no coincidence that a number of senior design and engineering teams at Tinder and Instagram sat in BJ Fogg’s persuasive computing design (captology) modules, yet the products used techniques that Fogg described as unethical.
Parent and policy voices.
The key points that activists and concerned parents talk about revolve around the following talking points:
Screens now dominate our lives, and their presence is only getting stronger and more powerful. For instance, I can no longer phone up my local surgery to get a repeat prescription or book an appointment, it’s all mediated by the surgery website and the NHS app.
(Some) adults can control to a certain extent how often and when they use screens. Shutting down is proving hard for many adult consumers to do. But there is a commonplace screen addiction. Empirical evidence suggests that it would be damaging for children. I could make countervailing points, here is a better place to see them outlined.
Smartphone addiction and drug addiction share some similarities including a neglected personal life, a pre-occupation with the subject of the addiction, social media as a mood modifier or for escapism. The implication is that smartphones are an unwilling appendage which add capabilities (some of which are of a questionable value) and can’t be put down. All of which reminded me of my childhood (and adult relationship with music).
The push seems to be on regulating the services that run on top of smartphone platforms.
There doesn’t seem to be a corresponding focus on encouraging shutting down as a desirable behaviour; presumably because the efficiencies promised by digital government services are too alluring.
Under-supply.
While there might be a desire for dumb phone, there are remarkably few options as second generation mobile networks have been turned off around the world.
HMD (what was Nokia’s terminal business) is the leading player in this sector. They are starting to do clever things that tap into the idea of shutting down and being present in the meatspace at key moments.
Heineken collaborated with HMD and streetwear atelier Bodega to collaborate on a ‘dumb’ phone in a transparent case, similar to electronic devices issued in prisons.
Heineken seem to doing this for a number of reasons:
People are less likely to be themselves when there is a broadcast studio in your pocket full of distractions to pull you away from the now.
Shutting down allows you to be more present for your friends.
Losing a £1,000+ device down the pub full of work information and access to your bank account isn’t a particularly attractive option. So providing a cheaper option is a bit like the ‘festival phone’ tough but basic Nokia that I bring to gigs and festivals.
Punkt.
A less well known competitor is Punkt. Punkt is a boutique Swiss consumer electronics company who have made a number of cellphones, home phones and a Braun-like alarm clock. Punkt want to promote the idea of intentional technology use, rather than as a wrapper around our everyday lives. Their MP02 phone acts as a wi-fi hotspot and a dumb cellphone, as they view a two device strategy of laptop and phone leans in better to their intentional technology use vision. Punkt make shutting down easier, by adding friction to switching on.
Welcome to my April 2024 newsletter which marks my 9th issue. We managed to make it through the winter and the clocks moved forward allowing for lighter evenings in the northern hemisphere.
The number nine is full of symbolism in a good way. In Chinese culture it sounds similar to long-lasting. It was strongly associated with the mystical and powerful nature of the Chinese dragon. From the number of dragon types and children to the number of scales on the dragon – which were multiples of 9. You have nine channels in traditional Chinese medicine. In Norse mythology there are nine worlds and Odin the all-father hangs on the tree of life for 9 days to gain knowledge of the runes.
Social media-related cognitive dissonance
A couple of conversations with people, spurred me to write this next piece.
I know it’s obvious and common sense, but it needs to be said occasionally. This time last year, I was on a Zurich work trip, providing support to a teammate running a workshop for a client who viewed the agency as the least worst option. We did good work and built temporary rapport, we got insight about the wider client-side politics at play. It was the classic example of the complexities involved in agency life and Lord knows we already have enough internal politics in our own shops to deal with.
The photo I shared on Instagram at the time gave no clue to what was happening, serving as a reminder to consider the curated nature of social feeds when scrolling through.
New reader?
If this is the first newsletter, welcome! You can find my regular writings here and more about me here.
What my answers to Campaign’s a-list questions would look like.
Boutique e-tailers and why the multi-brand luxury retail sector has gone from boom to bust.
Very Ralph and other things – Ralph Lauren’s world building abilities and how others from a cancer patient or overseas migrant workers have bent the world to their needs, or made a new one.
Books that I have read.
There are a few books that I revisit and the March 1974 JWT London planning guide is one of them. In many respects it feels fresh and more articulate than more modern tomes.
Chinese Antitrust Exceptionalism by Angela Zhang sounds exceptionally dry to the uninitiated. But if like me, you’ve worked on brands like Qualcomm, Huawei or GSK you realise how much of an impact China’s regulatory environment can have on your client’s success. Zhang breaks down the history of China’s antitrust regulatory environment, how it works within China’s power structures and how it differs from the US model. What becomes apparent is that Chinese power isn’t monolithic and that China is weaponising antitrust legislation for strategic and policy goals rather than consumer benefit. It is important for everything from technology to the millions of COVID deaths that happened in China due to a lack of effective vaccines. Zhang’s book won awards when it first came out in 2021, and is still valuable now given the relatively static US-China policy views. Given the recent changes in Hong Kong where she lives, we may not see as frank a book of its quality come out of Hong Kong academia again on this subject matter.
Van Horne and Riley’s Left of Bang was recommended by a friend who recently left military service. It codified and gave me a lexicon for describing observations of focus group dynamics and observation-based shopper marketing. Probably of bigger value to people more interested in the analytical side of behavioural science is the bibliography – which is extensive.
Things I have been inspired by.
Sustaining a sustainable brand
Kantar do a good webinar series called On Brand with Kantar. I got to watch one of them: Why consumers ignore brands’ sustainability efforts. Consumers are reticent to trust in brand’s sustainable efforts. Kantar’s recommendation is to stay the course and continue to demonstrate real sustainability. Kantar’s work complemented System 1’s Greenprint US-orientated sustainable advertising report. There is a UK-specific version as well with half a dozen ideas for marketers published in partnership with ITV.
Media platform trends
GWI released their 2024 Global Media trends report. GWI takes a survey based approach to understand consumer media behaviour.
Broadcast TV still commands the greatest share of total TV time, despite Netflix, Amazon Prime Video and a plethora of other streaming platforms from Criterion to Disney+.
Survival/horror players are most excited about gaming luxury collabs, whether or not luxury brands are equally excited about survival or horror gamers is a bigger question.
Games console ownership has halved in the past ten years. This surprised me given how many of my friends have a Switch or PlayStation 5. It probably explains why Microsoft is focusing on being a publisher rather than on platforms as well.
They focused exclusivity on internet advertising, which gives you a good idea on where they want the balance of media spend to go, rather than necessarily the right tool for the right job. Yes digital is very important, BUT, we live in a world were we are wrapped by and consume layers of digital and analogue media.
We can see from GWI data that this viewpoint is likely to be still excessively myopic in terms of media due to offline – online media linkages. This is likely to be even more so in Japan that still has a more robust traditional media industry.
Internet advertising reached a new high, despite being a couple of years after the Olympic games were hosted in Tokyo. (Media spend when a country hosts the olympics tends to be skewed that year upwards).
One thing I would flag is that this report is based on surveying people across the Japanese advertising industry and built on their responses. So there maybe some biases built into that process. Overall it’s a fascinating read.
Social media engagement benchmarks
RivalIQ published their 2024 Social Media Industry Engagement bench report, download it to get the full details. Three things that struck me straight away:
Macro-level decline across platforms on engagement rate, which matches the trends that Manson and Whatley outlined ten years ago in their Facebook Zero paper for Ogilvy Social.
If brands didn’t need enough reason already to reduce exposure to Twitter, the falling engagement rates on the platform add additional reasons. Overall video seemed to underperform on engagement compared to photos.
One thing leaped out to me in the industry verticals data, if you are looking to reach student age adults, why not consider collaborating with higher education institution social media accounts rather than influencers?
Shocking health outcomes
The Hidden Cost of Ageism | A Barrier to Innovation & Growth | Future Work – sparked a lot of discussion with its implications on workplace practices, particularly within the advertising sector. What was less discussed but more important was the implications of ageism related biases on healthcare treatment.
Under-treatment or Over-treatment: Older adults may receive less aggressive treatment options or are overtreated because of age-related biases, rather than based on individual health needs and preferences.
Dismissal of Concerns: Healthcare providers might dismiss older patients’ health issues as inevitable parts of ageing, potentially overlooking treatable conditions.
Age-Based Prioritisation: In some cases, age influences the allocation of healthcare resources, with younger individuals being prioritised over older ones, assuming they have more “life worth living.”
The Hidden Cost of Ageism | Future Work
MSNBC News in the US did a report on what it called a ‘Post-Roe underground’ echoing the underground railroads to free slaves in the Southern states and the Vietnam war era draft dodgers who escaped north to Canada. This time it is to help women access abortion pills or procedures in other states or Mexico.
MSNBC
My friend Parrus hosted a talk on World Health Day, more on that here, the key takeaway for me was not trying to replicate developed market solutions in developing markets. Instead think about how it could be reinvented. Thinking that could be extended beyond health care to consumer goods, telecoms and technology sectors as well.
Luxury market shake-up
Business of Fashion covered a US court case where two women brought a lawsuit against Hermès, alleging purchase of its sought-after Birkin bag is dependent on purchase of other products and is an “illegal tying arrangement” that violated US antitrust law.
Hermès is more vulnerable than other brands because it owns its retail stores. The case, if successful could have implications far beyond the luxury bag-maker. For instance, how Ford selected prospective owners for its GT-40 sports cars, or most Ferrari limited edition for that matter.
While we’re on the subject of luxury, LVMH are rerunning their INSIDE LVMH certificate which is invaluable for anyone who might work on a luxury brand now or in the future. More here.
Morizo
Toyota are on a tear at the moment. They correctly guessed that electric cars were too expensive at the moment and focused hybrids as a stepping stone to electric and hydrogen fuel cell production. They have also successfully use the passion for driving in their products and their marketing. The Toyota GR Yaris was a result of Chairman Akio Toyoda instructing engineers to make something sporty enough to win the World Rally Championship and affordable.
He also outed himself as a speed demon who went under the nom de plume of Morizo.
Quebec
For many English speakers one of the most dissonant experiences is being confronted by a language you can’t speak. It’s part of the reason why ireland managed to become the European base of companies like Alphabet and and Intel. So I was very impressed by this campaign by the Quebec government to attract visitors and inbound investment.
Things I have watched.
I watched Mr Inbetween series one in March and managed to work through series two and three this month. I couldn’t recommend them highly enough as a series. They just keep building on each other.
Over Easter, I revisited some old VHS tapes my parents still had and rediscovered the Christopher Walken science fiction horror film “Communion.” It epitomizes its era, with alien abduction narratives emerging during the Cold War and permeating popular culture from “Close Encounters of the Third Kind” to “The X-Files,” tapering off after 9/11. “Communion” demonstrates how effective editing and minimal special effects can heighten tension and emotion. Despite the film’s incredulous premise, Walken delivers a fantastic performance.
“Modesty Blaise” is from a time when comic book adaptations were uncommon in cinemas. This 1966 adaptation of the 1960s comic strip shares stylistic similarities with “Barbarella” and stars a young Terence Stamp. I received a tape copy from a friend who was attending art college at the time. The depiction of the computer as a character with emotional reactions in the film feels contemporary, echoing the rise of virtual assistants like Siri and ChatGPT, despite being portrayed as a mainframe. It is interesting to contrast it with Spike Jonze’s movie Her made 50 years later.
Useful tools.
A lot of the tools this month have been inspired by my trusty Mac slowly dying and needing to get my new machine up and running before my old machine gave out.
Time Machine
Apple’s native backup software, Time Machine, serves as a personal sysadmin for home users. Regular backups are essential. If a crucial document disappears while you’re working on it, Time Machine, coupled with a Time Machine-enabled hard drive, allows you to retrieve earlier versions of the document, potentially saving your sanity in critical moments.
Microsoft Office
I prefer the one-off payment model over Office 365 services. I use Apple’s Mail, Contacts, and Calendar apps instead of Outlook. While Office is available for just £100, which is reasonable considering its features, I still prefer Keynote over PowerPoint for creating presentations.
Superlist
Many of you may recall Wunderlist, which Microsoft acquired, but much of its original charm was lost in the transition to Microsoft To Do. Superlist is a reboot of Wunderlist by the original team, this time without Microsoft’s involvement. It’s available on iOS, macOS, and the web, catering to both individual and team task management needs.
https://youtu.be/2MzzbRhYlSA?si=04eBXH-MqKLpX2bN
ESET Home Security Essential
I used to rely on Kaspersky, and while I generally like their products, I have concerns about the potential influence of the Russian government. Therefore, I switched providers. ESET has a strong reputation and offers better Mac support than F-Secure. I can recommend their ESET HOME Security Essential package.
Amazon Basics laptop sleeve
I use a various bags depending on my destination and activities. Over the years, I’ve found that Amazon Basics brand laptop sleeves work well for my machines. They’re often among the cheapest options available and tend to outlast the computers they protect.
Laptop camera cover
The photo of Mark Zuckerberg’s laptop with tape covering the camera raised awareness about privacy. Webcam privacy covers, such as a sliver of plastic that slides across, are ideal as they allow your laptop to close fully. A pro tip is to use a red LED torch to clearly locate your camera when applying the stick-on cover.
Protective case and keyboard cover
I’m a big fan of clip-on polycarbonate shells to protect my laptop, as they provide a better surface for the stickers that personalize my machine over time. You don’t necessarily need a big-name case. The one I have came with a keyboard cover that works well. Anything that prevented Red Bull, coffee, or croissant flakes from getting under my keys is worth doing.
Screen protector film
The screen protector film provides great protection and is easy to apply and clean, even for beginners like me. I’ll update you if my opinion changes.
The sales pitch.
I have enjoyed working on projects for PRECISIONeffect and am now taking bookings for strategic engagements or discussions on permanent roles. Contact me here.
Ok this is the end of my April 2024 newsletter, I hope to see you all back here again in a month. Be excellent to each other and enjoy the bank holiday.
Don’t forget to like, comment, share and subscribe!
Let me know if you have any recommendations to be featured in forthcoming issues.
The luxury sector is undergoing a transformation, and nowhere is that more apparent than in the world of boutique e-tailers. I am of a generation that grew up with boutiques, carefully curated fashion looks from multiple brands.
As a child, my Mam would get me jumpers as I grew up from different small stores like this. To this day, the ultimate compliment she would give any item of clothing was that it was ‘exclusive’.
As I started buying my own clothes I pivoted between sports shops for my footwear, Ellis Brigham for layers, Caran D’Ache – a menswear boutique in Birkenhead at the time for jeans and ‘going out’ clothing. (Having known the owner/manager quite well, I suspect that the store was named after the Swiss writing instrument company, rather than the pseudonym of French satirist Emmanuel Poiré). This was where I got my first down jacket (by Naf Naf), Oshkosh B’gosh dungarees and Champion sweatshirts. At the time Ellis Brigham was a sea of Polartec and Gore-tex with no down jackets in sight.
I started venturing further afield and went to Quiggins in Liverpool, Affleck’s Palace in Manchester and what’s now the Victoria Quarter in Leeds. I’d also started coming down to London with friends to find brands I couldn’t get at home.
Famous high-end boutiques like Browns built a reputation for championing up and coming womenswear designers like Hussein Chalayan and Alexander McQueen. They also helped the likes of Ralph Lauren, Jil Sander and Calvin Klein start seeing in London. At their best boutiques moved culture as curators and taste makers. I got my love of American workwear from Caran D’Ache and Japanese streetwear from the late lamented Hideout which was just off Golden Square.
Department stores were the first aggregators of boutiques with a mix of single brand and multi-brand concessions under one roof. Brands like Selfridges, Harvey Nichols, Isetan, Lane Crawford, Mitsukoshi, Neiman Marcus, Saks Fifth Avenue, SEIBU and Shinsegae.
These established businesses have their place, indeed LVMH owns a number of selective retail businesses like DFS (often known as T Galleria), Le Bonne Marché and Starboard Cruises. So multi-brand distribution has a place in the luxury retail mix. Over time the premium department store brands and LVMH’s select retail brand would both have boutique e-tailers within their brands providing an omni-channel experience.
In the run up to COVID, multi-brand retail counted for 57 percent of luxury sales, management consultancy Bain expect this to decline to 36 percent of luxury sales by 2030.
Online
Online continues to disrupt retailing over a quarter century after it landed. The first casualties were book stores and music stores. Twenty years ago, one of the most enjoyable activities that I did in my spare time was rifling through record store shelves, digging for surprising or elusive vinyl records, CDs and DVDs.
Some of the places were I did this are long gone, like Tower Records in Piccadilly Circus. On the flipside, new businesses sprang up to be online first, or online only. Amazon started as a book store and eventually became the modern-day equivalent of the Sears Roebuck catalogue.
Luxury was no exception and a variety of dedicated boutique e-tailers sprang up:
Matches
MyTheresa
Net-a-Porter
YOOX
Farfetch
In the same way that mobile operators were the key determinators of whether mobile phone shops were successful, luxury brands had the whip hand over multi-brand boutiques. Phones4U died when its relationships with EE and Vodafone came to an end. The FT article The implosion in luxury ecommerce implied a similar pivotal moment between Farfetch and Kering, but with Farfetch managing to sell itself to Korean e-tailing business Coupang instead of going into administration.
One brand / one store
Luxury brands have looked to gain more control over their customer experience and get closer to the customer overall. This has seen many brands open single brand stores. Up until the 1980s, Louis Vuitton sold mostly through department stores, now it’s mostly through its own brand channels. Some brands like Audemars Piaget, now only sell through their own single brand showrooms.
The big name department stores continued to hold a position in the marketplace due to their own brand power, even while smaller mid-market stores in provincial cities folded.
Over time, brands extended their shop front into the online sphere. This was done once two things were able to happen:
An all-up online and offline view of a given customer and CRM systems allowed this to happen. This wasn’t for efficiency reasons to go online only, but to provide an omnichannel service to match customer’s omni-channel lifestyles.
Getting this all-up view will also help with future EU legislation moving towards a circular economy.
The ability to provide a high level delivery experience for online purchases. This mattered less with fragrances than it did with watches and handbags. High security logistics providers like Ferrari were able to provide this to the main luxury brands.
One small chink of hope for multi-brand stores is that single brand stores may be forced to either change business practices, or insulate themselves from legal action via authorised dealerships. A court case brought by two women against Hermés in the US claims that having to buy other products to get a crack at purchasing a Birkin bag is a violation of antitrust laws.
The obligation to buy other products first, is what the women claim is an ‘illegal tying arrangement’ which is why Hermés might be in violation of antitrust laws. Other brand who have authorised dealers rather than their own showrooms are less likely to be at risk.
Compressed middle-class
One of the first things that I learned when doing LVMH’s INSIDE LVMH certificate was that the bulk of luxury purchases are made by the middle classes.
Robert Gordon’s Rise and Decline of American Growth outlined how the middle classes in America (but also many other western countries). Income inequality, automation and globalisation drove a stagnation and decline in middle class numbers, even as the number wealthy increased.
Globalisation elevated a new middle class in Asian countries like Japan, Korea, Hong Kong, Taiwan and Thailand. Energy drove middle class growth in the countries surrounding the Persian gulf and Nigeria. Louis Vuitton opened their first show rooms in the US in 1914, in Japan in 1978 (though department stores had been selling their products for years). The first Korean shop opened in 1984 and China eight years later.
Over the past few decades this was compensated by new middle classes growing. They don’t necessarily have the earning power of a middle class westerner, but the purchasing power level may vary considerably. So a middle class consumer in a country like Thailand, Malaysia or Singapore might have more disposable income than someone in the UK.
Japan’s middle class quickly reached stagnation due to the lost decades of economic growth after their 1989 asset bubble. Korea has gone through a similar challenge, it has seen raised consumption, but recently this is driven by household debt rather than prosperity.
China
Quantity is a quality of its own, which is a reason why Chinese consumers have been so important to luxury brands since the early 2000s when China joined the WTO and its economy took off. Once there was even a small growth in middle class numbers that represented a big increase in global luxury sector sales. The decline in economic growth due to the property sector bubble has dampened luxury sales to China. It is not only about the decline in ability to purchase, but also the decline in being seen to purchase western luxury goods.
This less conscious consumption started early on during the Xi administration’s desire to combat corruption and aspire to a more equal society. Gifting declined. Economic decline accelerated this Chinese macro-trend.
COVID and after
COVID changed consumption. Money that would have previously been spent on experiences such as restaurant meals or travel transferred into things. Both single brands and boutique e-tailers got a lift in this environment. But a wider economic effect is still working its way through the economy. This effect is known as the bullwhip or Forrester Effect.
This resulted in a number of economic distortions:
Partial shutdown – Consumers no longer went to work or high traffic retail hotspots. Non-essential workers didn’t go to work. Logistics systems buckled under the weight of packages and luxury businesses diverted production to support medical needs such as LVMH’s perfumes businesses making hand sanitiser.
Unusual increase in demand – Home working drove an increase in demand from media consumption and home improvement to buying more stuff from all that money they saved from not going out.
Supply chain disruption – Air cargo prioritised medical supplies while existing stock sat in empty shops.
All of this disruption which drove inflation, this reduced demand as consumers had less to spend.
Luxury brands focused on their inflation proof ultra-high net worth customer base and raised prices to compensate for the reduction in sales volume. The fight for that reduced volume pitched multi-brand boutique e-tailers against their suppliers and the results weren’t pretty.
Boutique e-tailers are going to the wall, or consolidating to weather the fiscal storm until such time as middle class consumers can start spending aspirationally again.
Some of these businesses can’t be saved. Matchesfashion, which was bought out by Frasers Group didn’t have much chance.
Early last year, fashion started to pillage the late 1990s and early 2000s for fashion inspiration, which became a Y2K trend on social platforms and in the fashion media. But this divorced Y2K from its original meaning. Y2K was technologist short hand for a calendar problem in a lot of legacy systems that were designed around a two digit date for years.
The rise of micro-processors had meant that the world had more computers, but also more computer control of processes from manufacturing to building air conditioning systems.
The HBO documentary Time Bomb Y2K leaned into the American experience of Y2K in an Adam Curtis type archival view, but without his narrative.
Millennium layers
There was so much to unspin from the documentary, beyond the Y2K bug, including the largely alarmist commentary. The run-up to the millennium had so many layers that had nothing to do with Y2K, but were still deeply entwined with anxiety around what might happen with Y2K.
This included:
Internet adoption and more importantly the idea of internet connectedness on culture through the lens of cyberpunk – which in turn influenced the spangliness of fashion around this time and the preference for Oakley mirror shades that looked as if they were part of the wearer. The internet was as much a cultural construct and social object as it was a communications technology. It memed AND then got people online.
Telecommunications deregulation. In the United States the Telecommunications Act of 1996, saw a levelling playing field be set out and allow for new entrants across telecoms networks to television. They also defined ‘information services’ which internet platforms and apps fitted into giving them many freedoms and relatively few responsibilities. You had similar efforts at telecoms deregulation across what was then the EEC. This saw a rise in alternative carriers who then drove telecoms and data commuunications equipment sales, together with a flurry of fibre-optic cables being laid. There was a corresponding construction of data centres and ‘internet hotels‘ to provide data services. With these services came an expectation that the future was being made ‘real’. Which in turn fed into the internet itself as cultural phenomenon. The provision of new data centres, opportunities for computer-to-computer electronic data interchange (EDI) and services that can be delivered using a browser as interface also drove a massive change in business computing.
An echo boom of the hippy back to the land movement, many of the people involved in that movement were early netizens. Hippy favourites The Grateful Dead had been online since at least 1996 and were pioneers in the field of e-commerce. The Whole Earth ‘Lectronic Link (or The WeLL) had founders from hippy bible The Whole Earth Catalog. There was also a strong connection through Stewart Brand to Wired magazine. Long time ‘Dead lyricist Jon Perry Barlow created a Declaration of the Independence of Cyberspace – a libertarian totem for netizens up to the rise of social media platforms like Facebook.
Millennial religious fervour. The Heaven’s Gate cult committed ritual suicide in 1997, and even posted about it on their website. The disastrous FBI showdown with the Branch Davidian cult in Waco, Texas had happened four years earlier and even today is a point of discussion amongst right-leaning Americans.
The confluence of noise around Y2K drove some anxiety and a lot of media chatter.
Advertisers did their bit to fuel insecurities as well.
However by October 1999, American consumers who responded to a poll by the Gallup Organisation were pretty confident that glitches would be unlikely
55% considered it unlikely ATMs would fail.
59% believed direct deposit processing wouldn’t be a problem.
60% said they felt that temporary loss of access to cash was unlikely.
60% believed credit-card systems were unlikely to fail.
66% felt that problems with check processing were unlikely.
70% had received Y2K-readiness information from their banks.
90% were confident their bank was ready for Y2K.
39% said they would definitely or probably keep extra cash on hand.
Y2K: More Signs of the Time | Computerworld (January 10, 2000)
Experts had felt that the Y2K challenge had largely been beat, but some prudent advice was given. I worked for a number of technology clients at the time including telecoms provider Ericsson and enterprise software company SSA Global Technologies. I had to keep my cellphone with me in case anything went wrong and we would have to go into crisis mode for our clients. Needless to say, I wasn’t disturbed during my night out at Cream by THAT call.
Technology experts like Robert X. Cringely were rolled out to advise consumers on prudent precautions. Have a bit of cash in your wallet in the unlikely event that card merchant services don’t work at your local shop. Have some provisions in that dont need refrigeration in case there is a power cut. And a battery or solar powered radio just in case.
All of these are still eminently sensible precautions for modern-day living.
Why were we ok?
The warning
There were several people who voiced warnings during the 1990s. Some of the most prominent were Ed Yourdon and Peter de Jager.
Risk management
During the 1990s company auditors were informing boards that they had to address Y2K. Failure to follow this would affect their ability to trade. Their public accounts wouldn’t be signed off and there would be implications for the validity the insurance policies need to run a business.
Approaches
IT professionals took Y2K very seriously, which meant that there was little to no impact. Some academics such as UCL’s Anthony Finkelstein posited that the problem was taken too seriously, though it is easier to say that in retrospect. There were a number of approaches taken to combat the risk of failure due to Y2K. In order of least to most ambitious they were:
Systems testing
Rip and replace
Recode
Systems testing
The Russian military had tested their systems for vulnerability to the millennium bug and announced this in the last quarter of 1999. Meanwhile businesses were often passing the testing out to contractors like Accenture with teams based in India, the former Soviet Union or the Philippines. There was a thriving market for auditing software to check if applications used two-digit dates or not. One of these was Peregrine Systems ServiceCenter 2000 Y2K Crisis Management software.
Testing highlighted problems at Oak Ridge Laboratories who process American nuclear weapons, the alarm systems at Japanese nuclear power stations and some kidney dialysis machines.
Problems would then be addressed by ripping and replacing the systems or recoding the software.
Rip and replace
Apple used Y2K as a sales tool to get Macs into businesses, including this campaign from early 1999 where the HAL computer from 2001: A Space Odyssey featured in Apple’s Super Bowl advert.
Two years earlier IBM CEO had the company re-orientate an offering that he called e-business. There was snazzy advertising campaigns ran over an eight year period.
Mainframes and high powered UNIX workstations became internet servers running multiple instances of Linux. IBM Consulting learned as they went building the likes of internet retailer Boxman (which would go bust due to IBM’s cack-handed software and the rise of Amazon).
Timely replacement of business systems with e-business systems, paired with new personal computers like the latest Apple Mac allowed the firm to avoid Y2K and make speedier approaches in digitising their businesses.
German enterprise software company SAP launched SAP Business Connector in association with webMethods in 1999, this provided an integration and migration layer for SAP and other business software applications. It also allowed the business software to be accessed using a web browser and for it to trigger business processes like email updates.
Articles (like Robertson & Powell) highlighted the wider business process benefits that could be generated as part of a move to rip-and-replace existing systems with ones that are Y2K compliant. Reducing the amount of systems in place through rationalisation as part of Y2K preparation would then provide benefits in terms of training and expertise required.
Recode
Where rip and replace wasn’t an option due to cost, complexity or mission criticality recoding was looked at as an approach. For PC networks there were a few off the shelf packages to deal with low level BIOS issues
IntelliFIX 2000 by Intelliquis International, Inc. Their product would check hardware, DOS operating system, and software. This version was free and ran a pass/fail test. The full version, which could be purchased for $79, would report the issues and permanently correct date problems with the BIOS and the CMOS real-time clock. In 1999, Stewart Cheifet of the Computer Chronicles rated the product as a very good all-in-one solution for hardware and software.
National Museum of American History: Y2K collection
Products similar to IntelliFIX included Catch/21 by TSR Inc.
Longtime software makers like Computer Associates and IBM provided large companies with tools to audit their existing code base and repair them. IBM’s software charged $1.25 per line inspected. OpenText estimate that there 800 billion lines of COBOL language code out there. So having one of these tools could be very lucrative at the time.
You might have mainframe code on a system that might not have been altered since the 1970s or earlier. Programmers in the developed world who had skills in legacy languages were looking at the end of their career as more of this work had been outsourced to Indian software factories saw Y2K as a last hurrah.
COBOL is still very robust and runs business processes very fast, so is maintained around the world today.
Y2K impact
Professor Martyn Thomas in a keynote speech given in 2017 documented a number of errors that occurred. From credit card reading failures and process shut downs to of false positive medical test results across the world. But by and large the world carried on as normal.
Academic research (Anderson, Banker et al) suggests that the most entrepreneurially competitive companies leaned hard into the Y2K focus on IT and used the resources spent to transform their IT infrastructure and software. Garcia and Wingender showed that these competitive returns were shown to provide a benefit to publicly listed company stock prices at the time.
There were also some allegations that software companies and consultants over-egged the risks. Hindsight provides 20:20 vision.
IT spending dropped dramatically during 2001 and 2002, and by the middle of 2003 technology started to see replacement of software and equipment bought to address Y2K. But the US department of commerce claimed that was no more than a transient effect on economic growth. This was supported by the Kliesen paper in 2003, which posited that the boom and subsequent economic bust was not as a result of Y2K preparation.
I discovered something at the end of last year. The belatedly missed Yahoo Pipes was, in fact, officially called “Pipes by Yahoo.” I made that mistake, despite being well-versed in the brand guidelines, having spent a year working there with a copy consistently at my side.
Now, why this journey down the memory superhighway? That’s a valid question. The inspiration for this post came from Bradley Horowitz’s initial post on Threads. (I had to go back and re-edit the reference to post from tweet to include it in the previous sentence, force of habit). In his post, Bradley shared the history of Pipes by Yahoo. I’m acquainted with Bradley from my time at Yahoo!. During that period, he was one of the senior executives in Jeff Weiner’s Yahoo! Search and Marketplace team.
Consider this article as complementary to the Pipes by Yahoo history that Bradley pointed out. I will share the link where it makes sense to go over and read it in my depth. My commentary provides context prior to Pipes by Yahoo launching, the impact it had and why it’s pertinent now.
Origins
To comprehend Pipes by Yahoo, a fair amount of scene-setting is necessary. The contemporary web experience is now a world apart from the open web of Pipes, just as Pipes was distant from the pre-web days of the early 1990s.
Boom to bust
During the mid-1990s through the dot-com bust, Yahoo! generated substantial revenue from various sources, with online display advertising being the most pivotal. Launching a blockbuster film from the late 1990s to the early 2010s often involved a page takeover on Yahoo! and featuring the trailer on the Yahoo! Movies channel and Apple’s QuickTime.com. A similar approach applied to major FMCG marketing campaigns, with large display advertising initiatives.
Yahoo! profited significantly during this period, as the internet was the new trend, and display advertising was a cornerstone for brand building. Money was spent generously, akin to contemporary budgets for influencer marketing programmes.
Yahoo! occupied a space between TV, magazine advertising, and newspaper advertising. The design of the My Yahoo! page mirrored the multi-column layout of a traditional newspaper.
Similar to a newspaper, Yahoo! developed various departments and services:
Search
News (including finance)
Music services
Shopping, featuring a store for small businesses, auctions, and a shopping mall-type offering
Sports
Communications (email, instant messaging, voice calls, early video calling)
Web hosting
Then came the dot-com crash. Advertising revenue plummeted by around a third to 40 percent, depending on who you ask. Deals like the acquisition of Broadcast.com shifted from appearing speculative and experimental to extravagant wastes of money as the bust unfolded. This experience left scars on the organization, restraining the size of deals and the scope of ambition. Opportunities were second and third-guessed.
Yahoo! Europe narrowly survived, thanks to a white-label dating product. Love proved to be a more dependable revenue source than display advertising. A new CEO from the media industry was appointed to address shareholder and advertiser concerns.
The advertising industry was in a constant state of learning. Performance marketing emerged as a significant trend, and search advertising gained prominence.
The initial cast in this story
Weiner was hired into Yahoo! by then CEO Terry Semel. Semel knew Weiner from his work getting Warner Brothers into the online space.
Yahoo! had started getting serious about search by acquiring a number of search technology companies and hiring talented people in the field. Bradley Horowitz had found an image and video search startup called Virage and joined Yahoo! (a year before I got there) as director of media search.
There was former Overture executive Tim Mayer who was VP of search products and drove an initiative to blow out Yahoo!’s search index as part of a feature and quality battle with Google, Bing and Ask Jeeves. It was a great product, but with the best effort in the world we didn’t have the heat. The majority of Yahoos internally used Google because of muscle memory.
Vish Makhijani was ex-Inktomi and was VP – international search and has more of a focus on operations. He worked on getting non-US Yahoo! users feature parity – at least in search products.
Former Netscaper, Eckhart Walther was the VP in charge of product management.
Aside: where did Ged sit?
Where did I sit? Low on the totem pole. To understand my position in the organisation, imagine a Venn diagram with two interlocking circles: the European central marketing team and Vish’s team. I would have sat in the interlocking bit. If that all sounds confusing, yes it was.
Search wars and web 2.0
Pipes by Yahoo emerged from the confluence of two technological trends that developed in parallel, extending all the way to early social media platforms.
Search wars
I had been discussing the prospect of working at Yahoo! with a couple of people since around 2003. I had an online and technology brand and product marketing background. I had been blogging regularly since late 2002 / early 2003 and managed to incorporate online reviews and forum seeding into campaigns for the likes of Aljazeera and BT. The business was emerging from survival mode. As an outsider, it wasn’t immediately apparent how precarious Yahoo!’s situation had been. However, the threat posed by Google was undeniable.
At that time, Google didn’t have the extensive workforce it boasts today. One of my friends served as their PR person for Europe. Nevertheless, Google had embedded itself into the zeitgeist, seemingly launching a new product or feature every week. If there wasn’t a new product, stories would sometimes ‘write themselves,’ such as the time the face of Jesus was supposedly found on Google Maps photography of Peruvian sand dunes. The closest contemporary comparison might be the cultural impact of TikTok.
The geographical impact of Google’s cultural dominance was uneven. In the US, Yahoo! was a beloved brand that many netizens were accustomed to using. Yahoo! held double the market share in search there compared to Europe. Part of this discrepancy was due to Europeans coming online a bit later and immediately discovering Google. But Google didn’t do that well with non-Roman derived European languages like Czech. It has similar problems with symbolic languages like Korean, Chinese and Japanese.
Google explosion
I can vividly remember the first time I used Google. At that time I was using a hodge podge of search engines, usually starting with AltaVista and then trying others if I didn’t get what I wanted. This was before tabbed browsers were a thing, so you can imagine how involved the process became.
Google appeared in an online article, which I think was on Hotwired some time during late 1998, less than a year after it had been founded. I clicked on a link to use the search engine. Google looked every different to now. It had a clean page with three boxes beneath. The first one was a few special searches, I think one of them was Linux-related, which tells you a lot about the audience at the time. The second was set of corporate links including a link explaining why you would want to use Google – although experiencing one search was enough for most people that I knew. The final box was to sign up to a monthly newsletter that would give updates on what developments Google was up to.
From then on, I very rarely searched on Alta Vista, though my home page was still My Excite for a long time. This was more because I had my clients news set up on the page already and they had decent finance overage at the time.
The difference in searches was really profound, there were a number of factors at work:
Google’s approach seemed to give consistently better results than the vectored approach taken by Excite or AltaVista.
There was no advertising on the SERP (search engine results page), but that was to soon change.
You could use very directed Boolean search strings, which isn’t possible any more since Google optimised for mobile.
Search engine optimisation wasn’t a thing yet.
The web while seeming vast at the time, was actually small compared to its size now. Web culture at the time was quirky and in aggregate nicer and more useful than it is now. Part of this was was down to the fact that early web had a good deal of 1960s counterculture about it. Wired magazine would write about the latest tech thing and also profile psychedelic experimenters like Alexander Shulgin. Cyberpunk, rave and psychedelic tribes blended and found a place online. You can see the carcass of this today with Silicon Valley’s continued love of Burning Man. (Note: there were rich dark seams if that was the kind of thing you were into. There wasn’t the same degree of social agglomeration that we now have, nor were there algorithms that needed constant new content to feed diverse realities.)
Content creation on the web was harder than it is now. Blogging was at best a marginal interest, the likes of Angelfire, AOL Hometown, Geocities and Tripod provided free hosting, but you couldn’t put up that much content to pollute the search index even if you wanted to.
The impact was instantaneous and by early 1999, it was much a part of the nascent netizen culture as Terence McKenna.
McKenna spent the last bit of his life interrogating the search engine for four to five hours a day. He was convinced that the online world it provided access to represented some sort of global mind.
Sometimes he treats the Net like a crystal ball, entering strange phrases into Google’s search field just to see what comes up. “Without sounding too cliché, the Internet really is the birth of some kind of global mind,” says McKenna. “That’s what a god is. Somebody who knows more than you do about whatever you’re dealing with.”
As our society weaves itself ever more deeply into this colossal thinking machine, McKenna worries that we’ll lose our grasp on the tiller. That’s where psychedelics come in. “I don’t think human beings can keep up with what they’ve set loose unless they augment themselves, chemically, mechanically, or otherwise,” he says. “You can think of psychedelics as enzymes or catalysts for the production of mental structure – without them you can’t understand what you are putting in place. Who would want to do machine architecture or write software without taking psychedelics at some point in the design process?”
A year after that McKenna interview, Google was running over 5,000 Linux servers to power the search engine.
At first, Google also powered search on some of the web portals and saw itself as a competitor to search appliance businesses like Inktomi and Autonomy. The advertising kaiju started operation in 2000 and it was tiny. This violated patents held by GoTo.com – a business subsequently acquired by Yahoo!.
Post-bust
Once Yahoo! had disentangled itself from the carnage of the dot com bust, search was a much bigger deal. And Google had become a behemoth in the space of a few years. In 2002, Google launched Google News – a direct challenge to web portals like Yahoo!, MSN and Excite. Around about this time Google started to be used as a verb for using a web search engine.
While display advertising had taken a dive, search advertising had took off for several reasons:
It was performance marketing, even when a business is just surviving sales are important
Behavioural intent – if you were searching for something you were likely interested in it and may even purchase it
So easy to do at a basic level, even small and medium sized businesses could do it
Advertising dashboard – Google did a good job at helping marketers show where the advertising spend had gone.
We’ll ignore on the difficult facts for the time being, for instance:
The role of brand building versus brand activating media
What attribution might actually look like
That Google advertising is a rentier tax, rather than a business generator
Google listed on the stock market in August 2004. Investors ignored governance red flags like the dual share structure so the founders could retain voting rights.
Yahoo! in the search wars
Yahoo! had come out of the dot com bust battered but largely intact. Yahoo! was scarred in a few important ways.
Identity crisis
Yahoo! came about pre-Judge Jackson trial when Microsoft spread terror and fear into the boardroom of most sensible technology companies. I know that sounds weird in our iPhone and Android world. Rather than the bright cuddly people who give us Xbox, it was a rabid rentier with a penchant for tactics that organised crime bosses would have approved of. It took a long time to work that out of their system.
Another big factor was the fear of Microsoft. If anyone at Yahoo considered the idea that they should be a technology company, the next thought would have been that Microsoft would crush them.
It’s hard for anyone much younger than me to understand the fear Microsoft still inspired in 1995. Imagine a company with several times the power Google has now, but way meaner. It was perfectly reasonable to be afraid of them. Yahoo watched them crush the first hot Internet company, Netscape. It was reasonable to worry that if they tried to be the next Netscape, they’d suffer the same fate. How were they to know that Netscape would turn out to be Microsoft’s last victim?
Paul Taylor – ex Yahoo and founder of Y-Combinator
Yet Yahoo! went on to hire media mogul Terry Semel as it went through the dot com bust, shows that this thinking must have coloured views somewhat.
Cheque book shy
Even Mark Cuban would admit that Broadcast.com was not worth the billion dollar price tag that Yahoo! paid for it. It was a high profile mistake at the wrong point in the economic cycle which haunted Yahoo! acquisition plans for years. Which is one of the reasons why may have Yahoo! dropped the ball when it had the chance to buy Google and Facebook.
The game has changed
But the game had changed. Display advertising was no longer as profitable as it had been. Search advertising was the new hotness, fuelled by online commerce. By early 2004, Yahoo! is confident enough in its own search offering to drop Google who had been providing its search function.
Yahoo! acquired search appliance business Inktomi in 2002 and then Overture Services in 2003. Overture services provides the basic ad buying experience for Yahoo! search advertising.
In 2004, Yahoo! realises having search is not enough, you have to offer at least as good as product as Google, if not better. This is where Tim Mayer comes in and for the next couple of years he leads a project to build and maintain search parity with Google.
You had a corresponding project on the search advertising side to bring the Overture buying experience up to par with Google with a large team of engineers. That became a veritable saga in its own right and the project name ‘Panama‘ became widely known in the online advertising industry before the service launched.
Search differently
Googling is a habit. In order to illicit behavioural change you would have to
Have an alternative
Change what it means to search in a positive way
Yahoo! approached this from two directions:
Allowing different kinds of information to be searched, notably tacit knowledge. I worked on the global launch of what was to become Yahoo! Answers, that was in turn influenced by Asian services notably Naver Knowledge IN. This approach was championed internally by Jerry Yang.
Getting better contextual data to improve search quality providing a more semantic web. This would be done by labels or tags. In bookmarking services they allowed for a folksonomy to be created. In photographs it provided information about what the pictures or video content might be, style or genres, age, location or who might be in them.
Web 2.0
Alongside a search war there was a dramatic change happening in the underpinnings of the web and how it was created. While the dot com bust caused turmoil, it also let loose a stream of creativity:
Office space was reasonably priced in San Francisco only a couple of years after startups and interactive agencies had refurbished former industrial buildings South of Market Street (SoMo).
Office furniture was cheap, there was a surplus of Herman Miller Aeron chairs and assorted desks floating around due to bankruptcies and lay-offs.
IT and networking equipment was available at very reasonable prices on the second hand market for similar reasons. You could buy top of the range Cisco Catalyst routers and Sun Microsystems servers for pennies on the dollar that their former owners had paid for them less than one computing generation before. This surplus of supplies be bought online from eBay or GoIndustry.com.
Just in time for the internet boom wi-fi had started to be adopted in computers. The first wi-fi enabled laptop was the Apple iBook. Soon it became ubiquitous. Co-working spaces and coffee shops started to provide wi-fi access connected to nascent mainstream broadband. Which meant that your neighbourhood coffee shop could be a workspace, a meeting space and a place to collaborate. We take this for granted now, but it was only really in the past 25 years that it became a thing. It also didn’t do Apple’s laptop sales any harm either.
Open source software and standards gave developers the building blocks to build something online at relatively little financial cost. Newspapers like the Financial Times would have spent 100,000s of pounds on software licences to launch the paper online. In 2003, WordPress was released as open source software.
Amazon launched its web services platform that allowed developers a more flexible way for putting a product online.
The corresponding telecoms bust provided access to cheaper bandwidth and data centre capacity.
All of these factors also changed the way people wrote services. They used web APIs building new things, rather than digital versions of offline media. APIs were made increasingly accessible for a few reasons:
Adoption of services was increased if useful stuff was built on top of them. Flickr and Twitter were just two services that benefited from third party applications, integrations and mashups. Mashups were two or more services put together to make something larger than the ingredients. The integration process would be much faster than building something from scratch. It worked well when you wanted to visualise or aggregate inputs together.
Having a core API set allowed a service to quickly build out new things based on common plumbing. Flickr’s APIs were as much for internal development as external development. Another example was the Yahoo! UK’s local search product combining business directory data, location data and mapping.
There was also a mindset shift, you had more real-world conferences facilitating the rapid exchange of ideas, alongside an explosion of technical book publishing. One of the most important nodes in this shift was Tim O’Reilly and business O’Reilly Publishing. Given O’Reilly’s ringside seat to what was happening, he got to name this all web 2.0.
Finally, a lot of the people driving web 2.0 from a technological point of view were seasoned netizens who had been exposed to early web values. The following cohort of founders like Mark Zuckerberg were more yuppie-like in their cultural outlook, as were many of the suits in the online business like Steve Case or Terry Semel. But the suits weren’t jacked into the innovation stream in the way that Zuckerberg and his peers – but that would come later.
This was the zeitgeist that begat Pipes by Yahoo.
The approach to a new type of search needed the foundational skills of web 2.0 and its ‘web of data’ approach. Yahoo! acquired number of companies including Flickr, Upcoming.org and Delicious. At the time developers and engineers were looking to join Yahoo! because they liked what they saw at Flickr, even though the photo service was only a small part of the roles at the business.
Web 2.0 talent
The kind of people who were building new services over APIs were usually more comfortable in a scrappy start-up than the large corporate enterprise that Yahoo! had become. Yet these were the same people that Yahoo! needed to hire to develop new products across knowledge search, social and new services.
There were some exceptions to this, for instance the 26-person team at Whereonearth who operated a global geocoded database and related technology had a number of clients in the insurance sector and Hutchison Telecom prior to being acquired by Yahoo!. The reason why Yahoo! became so interested was a specific Whereonearth product called Location Probability Query Analyser. The technology went on to help both the Panama advertising project and Yahoo! search efforts. George Hadjigeorgiou was tasked with helping them get on board.
I knew some of the first Flickr staff based out of London, they sat alongside technologist Tom Coates who would later work on FireEagle. They all sat in a windowless meeting room on a floor below the European marketing team sat in.
Most people didn’t even know that they were there, working away thinking about thinks like geotagging – a key consideration in where 2.0 services and mobile search.
Going over to the Yahoo! campus in Sunnyvale made it clear to me that the difference in cultural styles was equally different over there, from just one cigarette break with Stewart Butterfield of Flickr.
Secondly, there was the locale. The best way I found to help British and Irish people get the environment of Silicon Valley was to describe it as a more expansive version of Milton Keynes with wider roads and a lot more sunshine. One of the biggest shocks for me on my first visit to the Bay Area was how ordinary Apple and Google’s offices felt. (This was 1 Infinite Loop before Apple Park construction started). The canopy over the main building entrance looked like an airport Novotel, or every shopping centre throughout the UK.
In the same way that Milton Keynes is not London; Silicon Valley’s quintessential campus laden town Sunnyvale is not San Francisco.
This is not the dystopian doom spiral San Francisco city of today with failed governance and pedestrianisation projects. At this time, San Francisco was on the up, having been clobbered by the dot com bust in the early noughties, financial services had kept the city ticking over. Technology was on the rise again. Home town streetwear brand HUF was making a name for itself with its first shop in the Tenderloin, the DNA Lounge had consistently great nights from west coast rave and goth sounds to being a haven for mashup culture with its Bootie nights.
There was great cinemas, vibrant gay night life and the sleaze of the Mitchell Brothers O’Farrell theatre. The Barry Bonds era San Francisco Giants won more than their fair share of baseball matches.
If Yahoo! were going to keep talent, they’d need a place in the city. It makes sense that setting up the San Francisco space fell to Caterina Fake. Fake was co-founder of Flickr and was given a mandate by Jerry Yang to ‘make Yahoo! more like Flickr’. So she decided to set up an accelerator for new products.
Brickhouse
According to Caterina Fake on Threads:
I dug around on the company intranet and exhumed an old deck for an initiative called “Brickhouse” which had been approved by the mgmt, but never launched.
This tracks with my experience in the firm, projects would form make rapid progress and then disappear. And during the first dot com boom, San Francisco was home to online media companies, such as Plastic (Razorfish SF), Organic and Agency.com, many of whom also had offices in New York. Wired magazine had its office there, as did a plethora of start-ups.
Fake goes on to say that Brickhouse managed to use the same office space she had worked in while she had worked at Organic over a decade earlier.
The 60 Minutes episode Dot-com Kids marked an acme in this evolution of San Francisco. At the time Fake was doing this exercise, there was probably a Yahoo! sales team based in San Francisco proper, but that would be it.
Fake cleans up the Brickhouse deck and gets it through the board again with Bradley Horowitz with the then Chief Product Officers Ash Patel and Geoff Ralston, president Sue Decker and chief Yahoo Jerry Yang being the board champions of the project.
Fake hands off to Chad Dickerson to realise Brickhouse as she heads off on maternity leave. Fake, Dickerson and Horowitz assemble the Brickhouse team (aka the TechDev group) and ideas that would eventually build Pipes by Yahoo!, Fire Eagle and other projects.
This is where my origins viewpoint on Pipes by Yahoo finishes. For the download on its creation, go here now; the link should open in a new tab and I will still be here when you get back to discuss the service’s impact.
Pipes by Yahoo was launched to the public as a beta product on February 7 2007. Below is how it was introduced on the first post added to the (now defunct) Yahoo Pipes Blog. At this time product blogs became more important than press releases for product launches as information sources to both tech media and early adopters.
Introducing Pipes
What Is Pipes? Pipes is a hosted service that lets you remix feeds and create new data mashups in a visual programming environment. The name of the service pays tribute to Unix pipes, which let programmers do astonishingly clever things by making it easy to chain simple utilities together on the command line.
Philosophy Behind the Project There is a rapidly-growing body of well-structured data available online in the form of XML feeds. These feeds range from simple lists of blog entries and news stories to more structured, machine-generated data sources like the Yahoo! Maps Traffic RSS feed. Because of the dearth of tools for manipulating these data sources in meaningful ways, their use has so far largely been limited to feed readers.
What Can Pipes Do Today? Pipes’ initial set of modules lets you assemble personalized information sources out of existing Web services and data feeds. Pipes outputs standard RSS 2.0, so you can subscribe to and read your pipes in your favorite aggregator. You can also create pipes that accept user input and run them on our servers as a kind of miniature Web application.
Here are a few example Pipes to give you an idea of what’s possible:
Pasha’s Apartment Search pipe combines Craigslist listings with data from Yahoo! Local to display apartments available for rent near any business.
Daniel’s News Aggregator pipe combines feeds from Bloglines, Findory, Google News, Microsoft Live News, Technorati, and Yahoo! News, letting you subscribe to persistent searches on any topic across all of these data sources.
What’s Coming Soon? Today’s initial release includes a basic set of modules for retrieving and manipulating RSS and Atom feeds. With your help, we hope to identify and add support for many other kinds of data formats, Web services, processing modules and output renderings.
Here are some of the things we’re already got planned for future releases:
Programmatic access to the Pipes engine
Support for additional data sources (such as KML)
More built-in processing modules
The ability to extend Pipes with external, user-contributed modules
More ways to render output (Badges, Maps, etc…)
Pipes is a work in progress and we’ll need your help to make it a success. Try building some simple pipes and advise us what works well and what doesn’t in the online editor. Tell us how you’d like use Pipes, what we can do to make cool things possible, and show us ways you’ve found to use Pipes that never even occurred to us. In return, we promise to do our best to make Pipes a useful and enjoyable platform for creating the next generation of great Web projects.
And please have fun!
The Pipes Development Team
Pipes impact
I had a good, if exhausting time at Yahoo! It was first inhouse role and my part of the central marketing team had an exhausting workload. By the time Pipes by Yahoo launched, I had left Yahoo! Europe. There has been a re-organisation of European arm and the business had been ‘Kelkoo-ised’; a few of us on the European central marketing team took the opportunity to take the money and run.
I remember bringing Salim (who headed the European search team) up to speed and getting his support to push for me getting a payout, rather than fighting my corner.
Peanut Butter Memo
Brad Garlinghouse’s peanut butter manifesto was made public towards the end of the year portraying a game of thrones type power play which would have seen the kind of structures that were put in place in the European organisation rolled out globally.
On the face of it, some of it was pertinent, but it lacked a wider vision.
While Garlinghouse has gone on to have a really successful career at Ripple; the Yahoo! business unit he ran had several problems. He was in charge of Music and the Comms & Community BU. At the time it had a poor record of building products fit for early adopters like music properties that aren’t Mac-compatiable, this was when the iTunes store and Apple iPod springboard off the Mac community and into the mainstream.
The then new Yahoo! Mail which didn’t work on Safari and a Messenger client which was worse to use than third party clients like Trillium or Adium. All of which made it hard to build a buzz that will bridge to mainstream users. Yahoo! Messenger, could have been Skype or WhatsApp. It became neither.
For a more modern example, think about the way Instagram and Threads were Apple iPhone first to build a core audience.
At the time, I was less charitable about the memo. And the memo raised wider questions about the business; like was the CEO facing an executive revolt?
The launch of Pipes by Yahoo helped to inject some more positive energy back into the Yahoo! brand. Remember what I said earlier on how talent wanted to join Yahoo!’s engineering and development teams because of Flickr. They started to want to join Yahoo! because of Pipes.
The outside world
I was back agency side when Pipes launched. I had friends within Yahoo! still and kept an eye on the various product blogs. I got the heads-up on Pipes and put aside an afternoon and an evening to explore it fully. A quick exploration gave one an idea of how powerful Pipes by Yahoo could be. While Pipes was powerful, it was also relatively user friendly, like Lego for data. It was more user friendly than Apple’s Automator, which inspired Pipes by Yahoo! in the first place.
At this time in London the amount of people working on social media and online things was still relatively small. Knowledge was shared rather than hoarded at grassroots events and on an ecosystem of personal blogs. This was a group of eople with enquiring minds, a number of whom I can still call friends.
We shared some of the public recipes on Pipes by Yahoo and learned from them, just as I had learned about Lotus 1-2-3 macros in the early 1990s, by picking through other peoples examples. (I put this to use automating data records in the Corning optical fibre sales support laboratory that I worked in at the time.)
The agency I worked with had a number of large technology clients including AMD, Fujitsu Siemens personal computing devices – notably smartphones, parts of Microsoft and LG.
AMD and Microsoft were keen to keep track on any mention of their brand in a number of priority blogs or news sites at the time. Social listening was in its infancy and there were a number of free tools available, which I got adept at using.
We managed to build and sell both AMD and Microsoft respectively a custom feed which provided them with links to relevant content in near real-time, which they then published on an internal site so that key audiences always had their fingers on the pulse.
This was all built on top of two free Pipes by Yahoo accounts which used a similar but tweaked recipes to make this happen.
On the back of that work, we managed to sell in a couple of small websites to the Microsoft team based on WordPress. I had long moved on to another agency role by the time the Pipes by Yahoo feeds would have died.
Discussing Pipes by Yahoo with friends, they said it had inspired them to learn to code. Pipes by Yahoo spurred creativity and creation in a similar way to HyperCard.
Zeitgeist
While all of this has talked about Pipes by Yahoo! and how great the launch was, the ending of Pipes was much more humdrum. The service had been glitchy at the best of times and wasn’t being maintained in the end. In conversations I had with friends, it was compared to a British sports car: unreliable but loveable. Yahoo! closed it down on September 30, 2015.
Which begs the question, why is Pipes by Yahoo, which was shut down eight and a half years ago being celebrated amongst the digerati?
I think that the answer to this is in the current online zeitgeist. The modern web isn’t something that anyone involved in web 2.0 would have signed up for. Algorithms have fragmented the global town hall archetype envisaged for social. The web no longer makes sense in aggregate, as it’s splintered by design.
The modern web feels ephemeral in nature. This seems to have gone hand-in-hand with a video first web exemplified by TikTok.
The social platforms the fragmentation seem to be declining in relevance and its isn’t clear what’s next. The people-driven web of knowledge search and web 2.0 is under pressure from AI content providing a mass of ‘just good enough’ content. Even influencers are being usurped by digital avatars. Even the audience engagement is often synthetic. All of which leaves the netizen in a state of confusion rather than the control that Pipes by Yahoo offered.
Taylor Lorenz is a journalist who made net culture and platforms her beat. Taylor Lorenz’ book Extremely Online feels like she is reporting from another planet rather than the recent web and it was published in October last year.
