Ian Bremmer at the Eurasia Group has been talking about Technopolarity throughout 2022 and has amped up the discussion in recent months.
Bremmer’s hypothesis is that big technology companies and their leaders will create power structures that will challenge the powers of governments. I was reminded of the different ‘country franchises’ that populated the future America of Neal Stephenson’s novel Snow Crash. Snow Crash envisaged a Randesque libertarian hellscape with no power centre.
The biggest technology firms are designing, building, and managing an entirely new dimension of geopolitics. In this new digital space, their influence runs deep, down to the level of individual lines of code. They’re writing the algorithms that decide what people see and hear, determine their economic and social opportunities, and ultimately influence what they think. Individuals will spend more time in digital space in 2022, at work and at home. Much of this time will be spent in the “metaverse”—an emerging, more immersive version of the web where all the problems of digital governance will be magnified. The metaverse (or more accurately, multiple metaverses) in turn will increasingly rely on economic systems based on decentralized blockchain platforms that governments are already struggling to control.
Aside from the power of the metaverse, Bremmer & Kupchan largely got things right. The Eurasia Group positioned technology giants along three axes. The degree to which the companies matched the following archetypes:
National champions.
Globalists.
Techno-utopians.
In general, Chinese companies were national champions, while their American counterparts were predominantly globalists. The European Union has attempted and largely failed to bring a degree of control, curbing the excesses of technology companies.
China has cracked down on companies that it felt was too big. The digital space itself has a Randian view of global leadership, ignoring the consequences and the responsibility of their power.
Algorithms as destiny
Bremmer’s initial thinking on technopolarity was focused on the role of algorithms underpinning online services. More recently, he has focused beyond platforms to look at the nature of ‘artificial intelligence’ and its ability to upend geopolitics.
Emotional contagion
As far back as 2012, Facebook had conducted a study in ’emotional contagion’ by altering the news feeds for 700,000 users and it was all completely legal. The feeds were changed to reflect more positive, or negative content – to see if seeing more sad messages makes a person sadder. The experimental subjects were not given any warning and their emotional state was by analysing changes in their language on the platform.
And I am not even pointing out the effect that social media can have on its audiences in general without experimentation.
Elon Musk’s Technopolarity
Walter Isaacson’s biography of Elon Musk; brought the concept of Technopolarity to life. In the book Isaacson discusses decisions and actions that Musk made over the Ukraine war. Musk because of his personal concern about Russian escalation, disabled the Starlink service covering occupied Ukrainian territory to disrupt Ukraine’s military efforts including marine drones. So Elon Musk essentially made a decision that directly affected US defence efforts to support Ukraine. It could have even resulted in the destruction of American military equipment donated to the defence of Ukraine.
Musk has had conversations with Vladimir Putin like he was a head of state and even the US government has been careful about how they deal with him.
“Even though Musk is not technically a diplomat or statesman, I felt it was important to treat him as such, given the influence he had on this issue”
Kahl’s attitude to Musk is at odds to the fate of former Qwest CEO Joe Nacchio who went to jail after he was found to be a barrier to the NSA’s domestic surveillance plans, in particular the MAINWAY database. Nacchio was convicted of insider trading. Nacho’s successor also held outing after 4 years, discussions with the NSA went nowhere. A quick trawl of Twitter history would be enough to find evidence to put Musk on trial should the US government wish to do so. What’s happened to government power in the decades since Nacchio went to jail?
The New Yorker went on to describe Elon Musk’s power as ‘shadow rule‘. Musk isn’t elected. He isn’t even responsive to his shareholders. His Twitter account is a testament to his mercurial nature.
What’s more concerning for US government wonks is that Musk’s Tesla mega factory in Shanghai leaves him exposed to manipulation by the Chinese government. For instance, they could pressure him to turn off Starlink across the Pacific adversely affecting Taiwan, Japan, Australia and US forces in the region. The Ukrainian experience suggests that Musk would not hesitate to put American lives on the line, or see Taiwan handed over the horrific barbarity of Chinese invasion.
What prompted me to write about Geico advertising was a stream of news from marketing services companies about the state of technology company advertising. At the time of writing Stagwell are just the latest marketing services firm after S4, IPG, Omnicom and WPP have pinned declining profits on a reduction in technology company advertising spend. Then this story broke about Geico advertising: Insurer Geico made more money after benching its famous gecko | Quartz – and my first reaction was that the wrong lessons might be taken away from this.
Geico advertising – a primer
Geico îs an unfamiliar name to most people outside of the US. If you’ve read American magazines chances are there was a print ad or two in there with their iconic Gecko spokesperson. It’s a similar case on American television.
Geico advertising and their Gecko are as familiar to Americans as the meerkats of Comparethemarket.com are to your average Brits.
The truth about technology marketers vs. Geico advertising
Having worked with technology brands on and off for the past three decades, I have enough experience to know that generally, they aren’t great marketing organisations.
Coinbase’s Super Bowl ad drove traffic to a site that fell over.
Geico reinforced brand equity in the insurance space and pointed out their 24-hour claims hotline (I imagine that this isn’t an exclusive feature, but you wouldn’t know it from the advert).
Growth mindset ≠ marketing mindset
As organisations, they have a growth mindset, but not a marketing mindset. Before the internet, this meant a powerful field sales force organisation and marketing meant a bit of branding / design work coupled with case studies for the sales people. With the internet came constant iterative ‘growth hacking’ on digital channels, that mirrors agile software development rather than the best practices of marketing science.
There is a good reason why organisations like the Ehrenberg-Bass Institute for Marketing Science are supported by FMCG manufacturers, luxury goods makers, media companies, marketing services firms and pharmaceutical companies, BUT has no technology company sponsors.
The reasons are cultural in nature:
Engineering – if I haven’t heard of it or invented it then it’s not valid and you’re just a suit. At best great product is the marketing – and that’s great if you have a clearly differentiated great product which is self evident. The engineering mindset is also why they trust adtech and marketing automation services which outsource your marketing communications approach to a black box
Sales – marketing is just support. Which is the reason why my early clients (like old school Silicon Valley royalty LSI Logic) promoted long serving secretaries and administration staff into marketing roles
Even if they had a marketer who knew about Ehrenberg-Bass they wouldn’t be able to get in buy-in from the wider organisation to participate and they’d likely be fighting other dumpster fires elsewhere
Secondly, their laser focus on data affects their outlook. To paraphrase the comedian Bill Hicks: they know the price of everything, but the value of nothing. Because they are only looking at short term data. Great marketing and advertising also has long term effects that both screws with the short term marketing data focus.
Marketing and growth hacking are considered synonymous. It would seem ridiculous for me to to claim in any large marketing orientated organisation that sales and marketing are synonymous. The differences and complementary aspects of both would be well known. Yet in technology companies, this isn’t the case.
By contrast Geico as a brand is an organisation who understood marketing. You make your car or house insurance decision at best once a year (though there is friction in making a change).
The technology sector approach would be for Geico to bid on search ads and aggregators to acquire customers and then do direct mail or email when it comes to renewal times. But Geico advertising does something different. Geico advertising builds mental framework, so that Geico means car insurance and will be one of the brands that you consider.
This achieves a few things:
You are less likely to move away from Geico, you may not love them, but searching for an alternative might be too much of a hassle.
You may be reassured that you have chosen ‘the’ car insurance
It helps new customers get over the ‘which car insurance company to choose’ decision
It helps with upsell on the products due to the reassurance of the brand
Technology companies deal with these problems in a slightly different way:
Certification of engineering staff. If you are Microsoft certified or Cisco certified, you are less likely to use open source software or Juniper Networks products respectively. It would be against your self interest and the investment in terms of time and money that you have made in your self development
Contractual lock-in – self explanatory
Technology lock-in. You can put your data or programming code into a particular system, but its much harder and more expensive to move on to another system
Owning the entire technology stack. This is the approach that Adobe Systems have taken, gradually acquiring over the years the entire marketing, workflow and creative systems used by ad agencies, media agencies and their clients
So why was Geico advertising spend cut?
This is the crux of my point about how the wrong lessons might be taken away from the Geico advertising spend cut, with no ‘apparent’ impact.
There are a number of good reasons why Geico made the cut in advertising spend:
There was a cut in insurance sector advertising overall, so that Geico maintained or even grew its relative share of voice while spending less. This should see it emerge with improved economic performance over time. Procter and Gamble became the behemoth it now is by INCREASING advertising during the great depression of the 1920s. So the idea of relative share of voice and its relationship to market share is older than I am. Further more research by the IPA has found that holding or increasing relative share of voice during a downturn has a positive impact for business performance over a five year period
Geico may have managed to make some efficiency gains, this is most likely to occur in brand activating activities
There is also a bad reason: saving money in the short term. Kraft Heinz cut marketing to the bone under the guise of zero based budgeting (ZBB) – which made a mockery of ZBB as a concept. Kraft Heinz shares massively underperformed and were down 60% in the last 5 years, compared to the S&P 500 having gone up 69%. If Geico is following this route then it bodes ill for the long term performance of the business.
Without us knowing the real reasons and focusing on the short term measure, it reinforces a growth hacking mindset.
Hard times mean no sustainability premium in North America | WARC | The Feed – every single economic recession this comes around and marketers are surprised. Time to pay attention to what the longitudinal research data says. I really like the work that Gallup have done on macro trends and the American consumer, in particular their work on attitudes to the environment.
‘Pokémon Sleep’ Review: Sleep-Tracking Game Made Me Into Snorlax – gamifying sleep. Pokemon Sleep has surged to 3.2M global downloads and an estimated $130k in daily revenue according to SensorTower data. The app ranked in the top 5 in the U.S. Games charts. It’s even more popular in Japan (the home of Pokemon), where it’s number 1 across the App Store categories
Using attention to scale creative excellence at Mars | WARC – Sales, distinctive assets, and attention to advertising are the go-to metrics to guide marketing decisions at Mars. Mars use Attention as a pre-testing tool, to inform creative choices in digital and also proxy in TV. Mars believe that an execution with a better attention score will travel across media channels better and will be a safer bet for you when you need to make a choice. Measuring Attention is a key element in helping us improve the creative hit rate. Advertisers should question how they measure consumer responses and focus on measures of real consumer behavior.
The politics of Prada challenged what I knew about the luxury brand. I knew that Prada started off as a handbag company that then pivoted into apparel. I also realised that some Prada items probably borrowed from military clothing design and fabric technology, such as Prada’s iconic black Pocono fabric backpacks.
https://flic.kr/p/6T1hzz
This is pretty common across Italian design with Stone Island CP Company being prime examples. If you would have asked me about the politics of Prada, I would have expected it to be part of the wider anarcho-far left hatred of all prestige brands.
I didn’t realise that Miuccia Prada’s clothing designs reflected her own left wing, pro-feminist politics. The connections of Prada with yachting has less to do with the politics of Prada and more to do with the passion of her husband and business partner Patrizio Bertelli.
One forgets how politics in Italy, had elements of the far left with the Communist Party and the Red Brigades pitted against reactionary right including the Propaganda Due (P2) masonic lodge and the Bologna central station bombing on August 2, 1980. The politics of Prada is by its nature Italian. More related content here.
Aimé Leon Dore x DJ Stretch Armstrong
Aimé Leon Dore got Stretch Armstrong in for a set playing sublime vintage soul 45s.
Scott Galloway on the intersection of economics and technology
Professor Scott Galloway on the intersection of economics, social trends, consumer trends and technology.
Iran-Contra affair
The Iran-Contra affair was how the president Reagan administration, specifically ‘rogue’ elements within it like Oliver North and John Poindexter, came to swap heavy weaponry with the terrorist sponsoring government of Iran in exchange for the release of American hostages, and how money from these deals came to be diverted to a secret and illegal war in Central America.
Sean Munger provided one of the best accounts of it that I have seen outside of the Congressional report.
The most Hong Kong thing I saw all week
HKIB News – a cable and online TV news channel featured a news story about the first trip of local bus company KMB’s electric double decker bus. At the bus stop was a mix of young and middle aged (mostly) male business enthusiasts. In Hong Kong, bus enthusiasts is much more mainstream in the UK. There are shops that sell die-cast scale models of buses in different liveries, so you can get an exact period-correct bus. Bus enthusiasm and the continued popularity of radio controlled car builds as mainstream hobbies were two distinctive aspects of Hong Kong culture for me.
Much of this is down to the limited size of Hong Kong and the public transport infrastructure. Generations of small children have enjoyed some of their happiest memories starting and ending with a bus trip. Buses are the first line of public transport. Hong Kong, (and Singapore) have a good number of young men and women for which it is the dream career. Which is remarkable given that these are part of the developed world and have a good education system.
Instead in the UK, you have a job that pays minimum wage that no one dreams doing.
Valley of Genius by Adam Fisher promises to be ‘the uncensored history of Silicon Valley’ based on stories that founders and programmers told to each other. All of which begs the question how much is myth making and how much is true?
https://flic.kr/p/2o8rBr7
Valley of Genius front cover
Getting to the truth
Having worked for Silicon Valley clients and in-house at Yahoo!; I recognise that the truth doesn’t get out there and the myth making is largely self-serving. There is also a big question about how far the collective memory actually goes back.
Finally, there is the challenge of how big tech companies have got so good at controlling their story in the wider world. Whether it was keeping close tabs on journalists like Fred Vogelstein found out while working at Wired magazine, through Frank X Shaw’s reputation for robust rebuttal, funded their own media outlets like Pando Daily and eventually disintermediated the media altogether.
Adam Fisher
Adam Fisher grew up in the Bay Area and became a journalist and later editor at Wired. He left there and freelanced for a number of publications, branching out from technology writing to other areas like travel and tourism.
Style
The most noticeable thing about Valley of Genius when you get into it is that there is no prose. It is all dialogue. Fisher has cut together segments of interviews to tell a story. Sometimes it feels like people around a table, other times it feels more disjointed.
The book is described as an oral history and Fisher in his interviews describes the process as being like putting together documentary interviews.
Fisher went out and interviewed many of the great and the good of Silicon Valley to get this material, however given some of the soundbites were things I had heard before such as Steve Jobs talking about a computer as a ‘bicycle of the mind’; I was not sure if these people like to self reference or if Fisher has interspersed his interviews with archival material. Right at the end of the book, Fisher comes a list of people by chapter and where he had to source secondhand quotes from.
I’ve read a number of books on Silicon Valley over the years, so had a frame of reference and I had context, so I found Valley of Genius enjoyable to read. But for someone who is coming to the subject with just a cursory knowledge of Silicon Valley, there is benefits to having a guide. Reading the quotes without understanding the context, or having been to Silicon Valley still leaves you outside.
I honestly don’t know if Fisher would have been a good guide, so him removing his voice from the book maybe less of a loss than we might think. But a new reader to the subject matter would benefit from a guide like Michael S. Malone or the insider snark of Robert X. Cringely (aka Mark Stephens). Fisher’s book Valley of Genius is a book for insiders and future academics who might be looking at the history of Silicon Valley in the future. According to Fisher, he managed to secure the last interview that Bob Taylor ever gave. Bob Taylor played key roles in moving Silicon Valley forward while in managerial positions at NASA, ARPA and XEROX PARC. In those interview quotes are more granular aspects of things, like Nolan Bushnell having a champagne party on the grass outside the offices of a recently bankrupt competitor, or that the video card to power the monitor used in Doug Engelbart measured about 3 foot by 4 foot in size.
It’s also a very one dimensional view of Silicon Valley. It largely misses out hardware and hard innovation; which is problematic for a technology hub that is competing against China and India for that matter. There is no 3Com, Cisco or Juniper Networks. The hardware story is very much lacking, there is no Intel, AMD or Nvidia, Sun Microsystems or SGI. It is largely a consumer technology vision that writes out businesses like Oracle and Salesforce together with the characters that lead them.
Plot line
Valley of Genius ignores a good deal of early Silicon Valley, such as the the pre-war nature of Stanford, Varian, Bill Hewlett and David Packard’s garage start-up, Shockley Labs, the treacherous eight, defence contracting and the missile age.
Mother of all demos
Instead Valley of Genius history starts at 1968, when Dough Engelbart of Stanford Research Institute provides the Mother of all Demos to a mix of academics, government people from the likes of the department of defense and technologists.
Engelbart talks about his developments in 1986
He the talked about his career on the Google campus in 2007.
Atari
The story moves on to Atari and Nolan Bushnell. Bushnell was responsible for popularising computer games and arcade consoles. Bushnell was a bridge between the counter culture and Silicon Valley hustle. A few chapters later Valley of Genius also covers the acquisition and eventual (first) failure of Atari.
Here’s Bushnell being interviewed for the 50th anniversary of Atari by IGN.
Bushnell did a Google Talk a number of years ago as well.
Xerox PARC
PARC (Palo Alto Research Center) was a west coast R&D facility put together by Xerox to understand what the future of work would look like. They had already realised that it would be computerised. From PARC came modern computers, local area networks, file servers, laser printers and productivity software.
Apple
In separate chapters Valley of Genius covers Steve Jobs and Steve Wozniak’s commercialisation of phone hacking tools, and the evolution of the Apple computer line up from the Apple II to the Macintosh.
Retailer High Technology did the first adverts featuring the Apple II computer
Which was a far more budget affair than Apple’s own launch of the Machintosh.
The book goes on to cover the return of CEO Steve Jobs and the rejuvenation of Apple as a business including the iPod, iPhone and iPad through to the death of Jobs.
The hacker ethic, or hacker culture
The hacker ethic or culture, a digital equivalent of the person who tinkers away with things in a shed or garage has their own section. The section is atemporal in nature, which I can understand to a certain extent. Steve Wozniak came out of hacker culture, as have many software developers over time.
Fisher focuses on what hacker culture is, rather than what it means (both good and bad). I would recommend Steven Levy’s Hackers: Heroes of the computer revolution as a companion to this chapter in Valley of Genius. The copy I read years ago was published by Penguin, but O’Reilly have re-published it as the book this is part of myth-making and cultural norming in software development teams.
The WeLL
The WeLL was the proto-online community that is still going and features first generation digerati such as journalist Wendy Grossman, the founders of Wired magazine and cyberpunk author Bruce Sterling.
Stewart Brand talked about the founding of The WeLL during a Google hosted talk
The WeLL never scaled in the same way that we think about social networks now but it has quality discussions and is much kinder than Twitter or Reddit.
VPL
VPL was a failed start-up in the mid-1990s that set much of the expectations and tempo on VR to this day. You will most likely know it from the VR suit featured in The Lawnmower Man movie. I covered it in more depth in my metaverse discussion paper.
General Magic
Take a series of burnt out Apple employees and have them invent a predecessor of the net appliance or smartphone. That was General Magic and it was a glorious failure. Sarah Kerruish’s documentary on General Magic tells the story much better.
Wired magazine
Wired magazine gets its own chapter. it represented a way of melding culture and technology. I had read Wired before I had used the web, but it gave me a good idea of what to expect. But I don’t know if it is more important than ZDnet or other technology publishing houses. Valley of Genius goes on to celebrate Wired’s online endeavours including HotWired, Suck – a sarcastic version of Wired and Webmonkey – which taught a lot of people web development skills and probably doesn’t get the love it deserves in Valley of Genius. Mondo 2000, a rival to Wired in terms of setting the cultural zeitgeist for technologists also gets a chapter.
Pixar
Pixar as a Silicon Valley story is an accident due to two things
George Lucas’ Industrial Light & Magic being based in North California rather than in Los Angeles
Steve Jobs looking for a project post-Apple
But it didn’t necessarily move Silicon Valley forward.
Netscape
The jump to Netscape as the first commercial browser makes sense. AOL, AT&T True Experience, CompuServe and Prodigy services were all driven by businesses outside the traditional Silicon Valley space.
At the time Netscape seemed as much about the crazy public valuation of the business which was emblematic of the dot com boom, as it was about the software that would kick off the open web. These kind of valuations re-emerged with businesses like Uber and WeWork.
eBay
eBay was the standout e-commerce play for Silicon Valley. Amazon was a Seattle company and so was an outsider in a similar way that Microsoft always had been. eBay was also founded by an ex-General Magic employee and so was part of Silicon Valley’s version of ‘Rock family trees‘. We see this even now with the ‘PayPal mafia’.
Google
Google changed the web experience that Silicon Valley had pioneered via Yahoo! and Excite. Brin and Page became a key point of focus in Valley of Genius. However, this ignores the complexity both around search and the development of foundational web technologies that other companies produced. If you are interested about the nature and history of Google, Steven Levy’s In The Plex is probably a better option to read.
Google’s move to pay per click advertising gets its own chapter that greatly reduces the complexity of the real story.
Napster
Napster was the poster child of market value destruction and disruption that predated Uber and its ilk.
Dot bomb
The dot com boom can be charted from the last quarter of 1995 and reached its nadir in the last quarter of 2002.
Eric Steiner tells his tale as the CEO of Inktomi through the dot com boom and bust
Valley of Genius covers it in terms of its sociological impact on the Bay Area, as much as its economic impact. The reality is more complex, even the dot.com label attached to it is a misnomer. It encompassed telecoms, networking hardware, datacenters and more in terms of its impact rather than just e-businesses.
Facebook
While Facebook was an east coast invention, the movement of the company and its CEO Mark Zuckerberg west saw a cultural change in Silicon Valley that took it down a much darker patch. By comparison Twitter in its start-up phase looked more like Atari in terms of its counterculture influence.
Future gazing
At the end of the book there is a section on future gazing, which became what made Silicon Valley great. The business model was prioritised over innovation. Veteran journalist John Markoff even talked about how Salesforce had moved to a ‘vertical campus’ model with Salesforce tower. Which is how every other business in places like Singapore, Hong Kong and even Wall Street work anyway.
There was a singular lack of reflection on challenges ahead or areas of introspection by the people telling these stories. If anything, that was what concerned me the most about the book. Innovation is at a technological, scientific and socio-cultural cross-roads and the inhabitants of the Valley of Genius apparently doesn’t have a clue. More on the book here. You can find more of my book reviews here.
Extra content – Valley of Genius promotional tour interviews
Panel hosted by Adam Fisher to promote the Valley of Genius book
https://youtu.be/gmfB01vtrgg
Leo LePort interviews Fisher on Valley of Genius at the time of its launch.
I had completely forgotten that I had written my contribution to Whats in my NOW right at the end of August. Autumn is now well and truly here in London with rainy nights and a carpet of fallen leaves of various hues; we don’t really get spectacular fall colours a la upstate New York or Vermont. London is actually quite dry compared to much of the UK which is why I can get away with an unlined Carhartt chore coat, rather than the more common blanket lined coat. You may have better luck finding the unlined version in US vintage clothing and thrift stores.
https://flic.kr/p/8Mdt2w
Influences
Prior to starting this blog, I have been an avid reader of Wired magazine and Kevin Kelly’s Cool Tools. The underlying theme of ‘renaissance thinking’ and careful consumption decisions inspired me in this blog’s curation. So it seemed like a natural fit to contribute to Whats in my NOW, when the opportunity arose.
Choices
Writing the post (typos and all) for Whats in my NOW forced me to make some tough choices. My Mystery Ranch pack was a no brainer, it is constantly within eyesight of my desk, but to leave out recommending other items were more difficult. Saying ‘no’ became an active creative decision. Do I focus my digital recommendations purely on the basis of utility or do I mix in entertainment? For instance, I missed out the invaluable social bookmarking site Pinboard, so I could include the very underrated 1979 version of Salem’s Lot.
Writing here
I write an eclectic range of stuff, some of the focus comes from life experience and the rest from my job as a brand planner. A brand planner in an advertising agency synthesises business problems to something that creative teams can ideate around, it exists in ambiguity which I hope will keep me in a role that won’t be imminently replaced by machine learning technology of some sort. This also means that I am a constant student of my environment.
Keeping in touch
A good deal of my wider learning has come from using RSS. If you would like to follow this blog, its RSS can be found here and it would be an ideal opportunity to try out Newsblur.
(My contribution was originally on the email newsletter platform Revue, but owners Twitter closed it down on January 18, 2023, thankfully my post was saved on the Cool Tools blog instead. So I replaced the above link with something that works.)
