If you’re read my rants for long enough, you know I’m fond of programmatic advertising. I’ve called it the most important artifact in human history, replacing the Macintosh as the most significant tool ever created.
So yes, I think programmatic advertising is a big deal. As I wrote in the aforementioned post:
“I believe the very same technologies we’ve built to serve real time, data-driven advertising will soon be re-purposed across nearly every segment of our society. Programmatic adtech is the heir to the database of intentions – it’s that database turned real time and distributed far outside of search. And that’s a very, very big deal. (I just wish I had a cooler name for it than “adtech.”)”
In my last post I imagined a world in which large data-driven platforms like Amazon, Google, Spotify, and Uber are compelled to share machine-readable copies of data to their users. There are literally scores, if not hundreds of wrinkles to iron out around how such a system would work, and in a future post I hope to dig into some of those questions. But for now, come with me on a journey into the future, where the wrinkles have been ironed out, and a new marketplace of personally-driven information is flourishing. We’ll return to one of the primary examples I sketched out in the aforementioned post: A battle for the allegiance – and pocketbook – of one online shopper, in this case, my wife Michelle.
It’s a crisp winter mid morning in Manhattan when the doorbell rings. Michelle looks up from her laptop, wondering who it might be. She’s not expecting any deliveries from Amazon, usually the source of such interruptions. She glances at her phone, and the Ring app (an Amazon service, naturally) shows a well dressed, smiling young woman at the door. She’s holding what looks like an elegantly wrapped gift in her hands. Now that’s unusual! Michelle checks the date – no anniversaries, no birthdays, no special occasions – so what gives?
Social conversations about difficult and complex topics have arcs – they tend to start scattered, with many threads and potential paths, then resolve over time toward consensus. This consensus differs based on groups within society – Fox News aficionados will cluster one way, NPR devotees another. Regardless of the group, such consensus then becomes presumption – and once a group of people presume, they fail to explore potentially difficult or presumably impossible alternative solutions.
This is often a good thing – an efficient way to get to an answer. But it can also mean we fail to imagine a better solution, because our own biases are obstructing a more elegant path forward.
Algorithmic merchandising leaves a bad taste in my mouth. Slowly but surely, it will erode trust for all the tech giants.
Yesterday, I lost it over a hangnail and a two-dollar bottle of hydrogen peroxide.
You know when a hangnail gets angry, and a tiny red ball of pain settles in for a party on the side of your finger? Well, yeah. That was me last night. My usual solution is to stick said finger into a bottle of peroxide for a good long soak. But we were out of the stuff, so, as has become my habit, I turned to Amazon. And that’s when things not only got weird, they got manipulative. Sure, I’ve been ambiently aware of Amazon’s algorithmic pricing and merchandising practices, but last night, the raw power of the company’s control over my routine purchases was on full display.
There’s literally no company in the world with better data about online purchasing than Amazon. So studying how and where it lures a shopper through a purchase process is a worthy exercise. This particular one left a terrible taste in my mouth – one I don’t think I’ll ever shake.
So first the news. To celebrate the company’s eight birthday, Cloudflare is announcing the launch of a domain registrar. And because the company operates at massive scale, and can afford to do things most companies simply can’t (or won’t – looking at you, Google, Amazon, Facebook) – the company is offering domains *at cost.* In other words, Cloudflare isn’t making one red cent when you register a domain with them. What they pay to register a domain (and yes, that number is fixed, and the same for all domain registrars), is what you pay to register a domain.
If you pull far enough back from the day to day debate over technology’s impact on society – far enough that Facebook’s destabilization of democracy, Amazon’s conquering of capitalism, and Google’s domination of our data flows start to blend into one broader, more cohesive picture – what does that picture communicate about the state of humanity today?
Technology forces us to recalculate what it means to be human – what is essentially us, and whether technology represents us, or some emerging otherness which alienates or even terrifies us. We have clothed ourselves in newly discovered data, we have yoked ourselves to new algorithmic harnesses, and we are waking to the human costs of this new practice. Who are we becoming?
For decades technology helped the industrial world work better; more and more, technology is replacing that world completely, and there will be pain. That, though, is precisely why it is worth remembering that the world is not static: to replace humans is, in the long run, to free humans to create entirely new needs and means to satisfy those needs. It’s what we do, and the faith to believe it will happen again will be the best guide in figuring out how.
Everyone’s favorite parlor game is “where will Amazon go?” Better to ask: Why does Amazon needs a second headquarters in the first place?
Why does Amazon want a new headquarters? Peruse the company’s RFP, and the company is frustratingly vague on the question. “Due to the successful growth of the Company,” Amazon says of itself in the royal third person, “it now requires a second corporate headquarters in North America.”
Plus gutting the DOE, and it’s time to take a stand
Every single company that dominates our digital life these days — oh hell, let’s just call it what it really is, shall we? Every company that dominates most of ourlife these days — Facebook, Amazon, Google, Microsoft, Apple — these companies all were born as upstarts — challengers who fought against the status quo, founder-driven scrappers who discovered new paths, paths which led to their ultimate ascendance.
But now they’re dominant, they’re incumbents. And that means they care as much — perhaps more — about maintaining their power as they do about maintaining the level playing field which allowed them all to prosper in the first place.
And: Ethics in business follow ethics in government, Valerian follow up…
For a short item in a daily newsletter, my post on Google and Amazon’s feed-driven ambitions brought some outsized email responses my way. Suffice to say, people in the industry are paying close attention to the topic, and that got me thinking a bit more about where this all might lead. Given it’s Monday, and the news is a bit slow, indulge me in a bit of speculation.
Here’s the headline: I predict Walmart will attempt to either partner with Instagram, or to invest in (and partner with) Pinterest. Or both.