Tag Archives: facebook

Tribute Bands And Your Business

Over the weekend I saw the Dark Star Orchestra. For those of you unfamiliar with the band, they’re one of the leading tribute bands out there and they play the music of The Grateful Dead. I’ve seen them several times and oddly enough each time I do it reminds me of a few business thoughts.

I played in several bands as I was growing up. We always felt we were a cover band. We were playing someone else’s songs but doing so in our own way. Most tribute bands go beyond that and attempt to recreate the sounds and often the appearance of the original artists. If you’re any sort of fan of The Dead you know that their performances were very hit or miss. The DSO is way more consistent and they sound just like The Dead on a great night each and every time. So what does this have to do with business?

I think imitation is more than just the sincerest form of flattery. I think in many ways it’s better than innovation despite the fact that we often hear of the “first mover advantage.” Innovation is great, but by not being first the flaws in the original product or service become way more clear. The fact that you’re building later lets you correct for those flaws and get beyond the original. That usually is something you can do much more cost-effectively too.

What do I mean? The iPod was not the first music player, just the most successful. Anyone who looks at Instagram knows both that they weren’t the first of their kind and that most of their “new” features these days come right from Snapchat. You could video chat someone long before Skype came around and Amazon was not the first retailer on the web. Each of those companies, and other such as Spotify and eBay, were not first movers. They were imitators – tribute bands if you will, who took the best of the pioneers and made it better.

Is it easier to get funding for a copycat? Probably – the business model has been proven and, therefore, investor risk is reduced. Japan, and now China, built economies on imitating successful products and making them better and/or cheaper. A tribute band has a pre-built fan base. If you’re a Beatles fan or an Oasis fan or a fan of The Band, you have no chance to see the original but you can spend a night with their music. If you’re a business, you don’t have to be the original if you can make the original better and capitalize on their fan base. The DSO do it brilliantly. Can you?

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Filed under Consulting, Music, Thinking Aloud

Zuckerberg Unbound

Philip Roth wrote a series of books in the late 1970’s and early 1980’s. The middle one is called Zuckerman Unbound and deals with the relationship between an author (Roth’s alter-ego Zuckerman) and his creations. It’s not a great relationship although it is a pretty good book. Roth’s character seems to express regret for the books his younger self brought into the world, and at one point he finds out that a book he wrote has caused his mother a great deal of pain and suffering.

English: Mark Zuckerberg, Founder & CEO of Fac...

(Photo credit: Wikipedia)

I thought about Zuckerman as I watched (and am watching as I write this) another Zuck – Mark Zuckerberg of Facebook – testify before Congress about how his creation, designed to bring people together, has morphed into something that has blown many people and institutions apart. I doubt any of you reading today’s screed touch billions of people every day the way Facebook does, but I think there are some lessons to be learned here.

One thing that rings hollow for me is the apology offered to the committees. I and many others have been writing about Facebook’s lack of privacy and transparency for years. This isn’t something new nor is it something about which Facebook was unaware. One might suppose that they, like so many others in business, were of the mindset that it’s better to beg for forgiveness than to ask for permission. Bad call, and they’ll be doing a lot of begging as the inevitable new regulations on the use of data are put into place. That’s lesson one.

My favorite moment of yesterday’s hearing came when one senator informed Mr. Zuckerberg that Facebook’s “user agreement sucks.” It does, but it’s far from alone. I’d also argue that any “simple” agreement that links out to a dozen other pages for further explanations of things not explained in the initial policy is far from simple. I doubt I could pass a quiz on what Facebook can and can’t do with my information and I’ve been on the platform since 2006. Anyone that generates data that you’ll use to benefit your business should understand what they’re giving you and why. Lesson two.

I do know that Facebook gives the user a lot of control over who sees what although it really doesn’t do so by default. I’m less clear as to what they gather although I’ve downloaded my data and gone through it. Some of what is in there comes from activities off of Facebook, probably either through my use of a Facebook ID to log in or via the Facebook Beacon. How many users understand that they might be tracked EVERYWHERE by Facebook and not just when they’re using the service? Facebook would argue that you’re using the service when you use your Facebook ID to log in elsewhere but I think that’s specious. Yet another lack of transparency, and lesson three.

I wonder where Facebook goes from here. As far back as 2010, it’s been under attack for its privacy failures. It’s a business founded by a man who called users “dumb f^&ks” for giving him their information. Maybe like Zuckerman, he’ll come to realize that he needs to be unbound, cut loose from everything that made him what he was and fix the problems in a way that fulfills the promise of connecting the world that he espouses. At the moment, it appears that others may step in and take steps that alter his world forever.

What’s your take?

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Today We Say I Told You So

I was at a startup event last evening and of course, the topic of Facebook‘s data problem came up. I’m sure you’ve heard something about it but what you’ve heard might not be accurate since many of the reports I’ve watched on TV are pretty off the mark. Since I’ve written a lot of not nice things

Facebook logo Español: Logotipo de Facebook Fr...

(Photo credit: Wikipedia)

about Facebook here on the screed, let me add my two cents here. I also want to taunt you, politely, by reminding you that not of this should be a surprise. I won’t retell the story of what’s been going on but you can read it here if you’re not familiar.

First, the inaccuracies. This wasn’t a data breach nor a data hack. It isn’t a bug – it’s a feature. The whole point of Facebook’s business is to collect a lot of data from and about its users and sell that data along with ads to marketers. They’re not alone in this. If you use Google, they pretty much know what Facebook knows and a lot more. Like Louis in Casablanca, you might profess to be shocked by this but you knew about it all along, didn’t you? After all, you agreed to let it happen when you clicked through the app install or joined the service some other way. You didn’t realize that using a Facebook or Google sign in on other sites meant they could track you? Hmm…

What’s inaccurate is that many reports say Facebook was collecting voice calls and texts from Android phones. First, it’s not the actual calls or texts, it’s the metadata – who you called or texted. Second, that was a feature of some versions of Android that allowed that to happen and Facebook just scarfed up was available and THEN, only because YOU said ok when you installed Messenger. Please don’t be mad at them for doing what they said they were going to do and don’t be shocked the data is in your file.

I downloaded my Facebook data, Other than seeing a few photos I don’t ever recall uploading to the service (which makes me wonder if they’re just grabbing stuff off my camera roll), I wasn’t surprised. No metadata from my phone because I never granted the permission for them to have it. No weird ad stuff because I go through my Facebook settings fairly regularly to clean out things I don’t want them to store. You should too. In fact, you should do that with ALL your digital stuff – check your Google activity, your ad profile, etc. Go through every app on your phone and check the permissions you’ve granted. Why would a game need access to your camera? Why does a barcode scanner need your location? You can probably revoke the permissions individually and if it breaks something in the app, turn it back on. Better safe than sorry. You want Facebook to know less? Delete the app and only use it from a desktop.

Now the “nyah nyah” part. I wrote a post in 2010 about Facebook and their privacy practices (or lack thereof). I wrote another one in 2012 about how Facebook might go the path of AOL or MySpace. I wrote then:

Like AOL long ago, there are some other underlying factors that might portend bad things.

  • Just 13 percent say they trust Facebook completely or a lot to keep their personal information private.

  • A large majority (59 percent) say they have little or no faith in the company to protect their privacy.

I think what’s happened over the last 10 days has me convinced that I was right then. Facebook are no angels but you shouldn’t be surprised at any of this. Unless and until each of us takes control over our privacy, which means understanding that data is currency and you wouldn’t just throw your currency around, this will happen over and over again. Make sense?

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Filed under Helpful Hints, Huh?

Your Focus Is Fake

Over the weekend the NY Times published an article about a company called Devumi that sells followers. As the piece says:

Photo by Jehyun Sung

Devumi sells Twitter followers and retweets to celebrities, businesses and anyone who wants to appear more popular or exert influence online.

Since social media is, well, media, an outlet’s ability to charge is based upon its reach. Since everyone has the ability to be a little piece of the media these days, having a bigger audience or the ability to demonstrate great influence by having hundreds of thousands of followers is a big deal. Take Facebook where:

up to 60 million automated accounts may roam the world’s largest social media platform. These fake accounts, known as bots, can help sway advertising audiences and reshape political debates. They can defraud businesses and ruin reputations.

I’ve seen this happen first hand. I was working with a client and we were approached by someone (actually a pair of someones) who wanted to work with us. They proudly showed off their 1million+ Twitter followers as evidence of their ability to impact what we were doing. They seemed a little shady so I ran their Twitter account through one of the services that examine followers for signs that they’re fake. 95% of their followers were bots or fake accounts. No deal.

The Times piece is really excellent because the thing it points out to me is something that is important to you, or should be. The reason having fake followers works is that brands are too focused on reach and not enough on results. The thing those fake followers won’t do is to buy. Yes, you can buy fake click-throughs as well, but I’m quite sure that your conversion rate will plummet if you do so since no bot-master is going to spend a nickel going through your sales funnel. When celebrities (or celebrity wannabes) inflate their follower totals, it’s part ego and part to demonstrate their popularity. Does anyone look at real-world results that might point to those things? Ratings? Box-office? Ticket sales?

Have you ever heard anyone giving out advice (marketing or otherwise) tell you to be fake? Probably not. Authenticity is the underpinning of great marketing today. There is no incentive for Twitter or Facebook to fix this since their financial well-being is partially judged by how many people are on and use their platforms. It’s a shame, and if we did politics here we could talk about how this same problem has gone beyond marketing products and services and into influencing our political system. You can fix it, however, by measuring what matters. Reach doesn’t really matter. Results do. That’s how I see it. You?

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Filed under digital media, Huh?

The End Of The World Or Just A New Start?

You’d think that the world was coming to an end.

That was my thought as I read the response in the marketing and advertising trades over the last week since Facebook pulled the rug out from under publishers by making (yet another) algorithm change. What Facebook announced was that they are going to be prioritizing content from friends and family over public content posted by brands and publishers. Currently, they look at engagement metrics such as the number of likes and comments a post receives when determining where that post will appear in users’ News Feeds. That sparked publishers to create various forms of click-bait. This change will force publishers to create content that fosters engagement – comments, sharing, etc. – between friends to get the content shown more often.

Why is Facebook doing this? I’m assuming it’s based on two factors. The first is that by making it harder for brands to have their content displayed those brands will ramp up their ad spend on Facebook. That’s Facebook’s business, folks, and it’s hard to criticize them for that. In fact, I’d once again criticize those publishers who relied on Facebook for traffic rather than creating reasons for people to come to their content directly. Instead of spending resources trying to figure out how to game Facebook’s algorithm, maybe spending those resources on targeting specific audiences and bringing them to their content. Building a loyal audience of your own rather than being a remora of sorts on the back of another platform is smart even if it’s not nearly as easy.  If you’re focused on creating engaging content that sparks conversations, I think you’ll be just fine, both on and off Facebook and other social platforms. Facebook must satisfy their users so they keep coming back and stay on the platform (younger users are abandoning it in droves). They own the audience – you don’t.

The second reason I assume Facebook is doing this is to mitigate the effect of “fake news.” Generally speaking, news outlets and especially dubious news outlets will show up less often in the News Feed. I don’t know if the algorithm has been tweaked to evaluate the authenticity of some post but I’m sure that unless something is interesting enough for users to share and comment on it will be downgraded.

Has this been a bit of a bait and switch by Facebook? After all, it has spent years cultivating publishers to build their brands on the platform and now, suddenly, it’s saying pay me or you’re on your own. No, it’s not. Any marketer should have been wise enough to know that the Facebook audiences are generally fly-bys – they don’t engage very much and they certainly aren’t very loyal based on what I’ve seen in the analytics I’ve looked at. Paid audiences are different, and while the short-term pain will be there, over the long-term learning to build better engagement is a positive. I’m sure we’ll see all sorts of brand posts begging people to comment and share in yet another attempt to game the algorithm. That’s too bad.

I’m also not sure how this will affect Facebook’s business. Think of travel agents. The number of them has declined precipitously (down about two-thirds) in the last 20 years as online travel sites grew and people could book themselves. Maybe as publishers get back to doing what they were doing before Facebook – creating loyal engaged audiences on their own platforms – they’ll figure out that a paid Facebook audience need to be icing and not cake. Maybe this isn’t the end of the world but just a fresh start?

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Filed under Consulting, digital media

Losing The Lottery

We’re all bugged. If you carry a smartphone, you may rest assured that it’s possible to identify that device as it moves through the world and interacts with various services. How difficult do you think it is, once someone has a device ID, to associate it with a phone number‘s owner?

I think none of that is a surprise to you, nor is it to me. I try to keep the list of organizations tracking me to a minimum and to a list of companies I trust. Unfortunately, that takes more effort that most people are willing to exert but it can affect you in more ways that you might know.

I uninstalled a lottery app this morning. It was doing a number of things that caused me concern. First, it alone was responsible for 65% of the data traffic from my phone when the phone was idle. The app was idle too, or so I thought. In fact, it was busy sending my phone number, my device ID, and several other very personal pieces of data (Facebook and Twitter ID’s among them) to…someplace. Who knows what happened to the data from there.

I installed this app a few months ago when the Powerball prize pool was ridiculously large. It seemed like a convenient way to input my tickets and get notified if I won anything. What I won, apparently, was the ability to be tracked as an individual and have my battery drained unnecessarily. Buh bye.

What’s the point today? I guess it’s a message for you as you’re on either side of the desk. As a marketer, we can’t violate our customers’ trust by using the permissions they give us to collect usage data and selling or sharing that data to companies with which the customer has no relationship. More than 70 percent of smartphone apps are reporting personal data to third-party tracking companies like Google Analytics, the Facebook Graph API or Crashlytics. Generally, those companies are there to improve the user experience. The problem is that in many cases, app developers that that permission as carte blanche to send the data anywhere. I’ve seen how that data can be used for profiling and targeting and believe me, it’s frightening.

As consumers, we need to pay more attention to privacy and where our data goes. It’s not just to keep your battery from running down. Given the role that our smart devices play in our daily lives, it’s quite possible that a bad actor could know way more about you than you’d care to share. I don’t just mean by monitoring your texts or any unencrypted data you send. It’s also tracking your movements. As a positive, location-based services can help us (you get an alert for a sale at a store you frequent as you pass within a quarter mile) but the possibility of an unscrupulous third party misusing that data is exceptionally high. Check your app permissions. Why would a game need to know your location or have access to your camera, for example? Turn off the permissions that don’t make sense.

I’ll be looking up the results of the money I risked on Powerball some other way since trying to make my life a little easier made it a lot more risky in other ways. It was a good reminder to let my devices work for me and not for people who want to spy on me. You with me?

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Filed under digital media, Huh?, Reality checks

Are We In An Information Death Spiral?

Sometimes I wonder if we’re in an informational death spiral. That’s when an aircraft is out of control, loses lift, and heads in a corkscrew motion toward the ground. My pilot friends say they usually begin with a random, increasing roll and airspeed. That’s where I think we all just might be with respect to information. We’ve had a random, increasing rolling of what “real” information is and the speed at which it is generated is increasing.

Photo by Tim Mossholder on Unsplash

Why this matters to you, both in business and in life, is that it’s becoming increasingly impossible to tell fact from fiction. The revelation that the Russian government created thousands of fake accounts across the social sphere to generate and amplify “news” items that were made up out of whole cloth is devastating to anyone who tries to figure out fact from fiction. That devastation is multiplied by the findings of this year’s Pew study which found:

Two-thirds of Americans (66%) use Facebook, and a majority of those users get news on the site, similar to 2016. Looked at as a portion of all U.S. adults, this translates into just under half (45%) of Americans getting news on Facebook. While a large share of its users get news on [Twitter} (74% say they do), its audience is significantly smaller overall. This means that overall, fewer Americans get news on Twitter (11% of U.S. adults).

In other words, we’re increasingly relying on the least reliable sources for news and information. Imagine if you were doing this in your business. Rather than looking at actual revenues, you based your appraisal of how things were going on how full your warehouse seemed or how busy your staff was. Sure, a warehouse that’s becoming empty can signal great sales but it can also signal an issue with your supply chain or with your accounting department who hasn’t been paying suppliers. Maybe it’s a collections issue. You don’t know until you get the real facts.

Being able to separate fact from fiction is the basis of being an educated, competent person. When others are out there trying as hard as they can to mask facts or to impose fiction, that job is thrown into a death spiral. When Facebook changed from being a place when you could focus on friends and family to a platform for news and information, the spiral began. When their algorithm began to reward the click bait that was able to deceive enough people by being outrageous, our collective noses headed toward the ground.

Don’t be fooled by fake news, either in the office or out of it. Find the facts, level off your wings, and fly on.

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Filed under digital media, Reality checks, Thinking Aloud