July 2014

Screwing with your emotions is Facebook's entire business

[Commentary] By now you've probably heard about the controversial Facebook study in which the company altered the news feeds of some 698,003 users for a week in 2012 to determine if seeing more happy or sad posts affected the emotional content those users posted next. There's been an enormous backlash: the study itself seems particularly dumb, there's a chance Facebook acted unethically or illegally by not disclosing the study to users, the researchers involved are apologizing, and in general it seems like Facebook did something really, really bad.

But here's the thing: manipulating the News Feed is Facebook's entire business. Where Google makes advertisers bid against each other to display ads that appear when you search for certain keywords. Facebook does something a fair bit simpler: it just doesn't show users everything in their News Feeds.

Of the 1500 potential items your friends will share on Facebook in a given day, you'll likely only see 300 of them -- and if an advertiser or marketer or news organization wants to get more eyeballs from Facebook, they can pay to make sure their stuff shows up in your News Feed, carefully targeted to keywords and demographics. Compare that to Twitter, which firehoses everything your friends share at you in real time.

It's better for news junkies, but Facebook can make promises about how many and what sort of people will see something that Twitter can only dream about. There's so much value in showing you things from your friends on Facebook that it's the revenue model for an entire class of viral media startups. Taco Bell pays BuzzFeed to create shareable advertising, and then pays Facebook to tweak the News Feed to make sure that advertising shows up when it's shared.

Readers Recall Tablet Magazine Ads at Same Rate as Print Ads

A splashy ad in a magazine may catch a reader’s eye as he or she is flipping through the pages, but would that ad grab someone’s attention when it’s displayed on a tablet?

With an ever-growing array of screens and formats to serve ads, it can be a headache for marketers to figure out where ads resonate with consumers and where they don’t.

However, new research suggests that tablet magazine advertising is just as effective as (and can even add impact to) print campaigns. A recent study from GfK MRI Starch Advertising Research found that ads in tablet versions of magazines have the same average level of reader recall as print magazine ads.

The research firm conducted an online survey to analyze reader recall of 28,624 magazine ads in 805 tablet magazine issues published in 2013 and compared that data to consumer print recall data. The online survey asked respondents if they recalled having read a particular ad and if they had interacted with ads that had interactive features.

GfK found that the average level of reader recall for both print and digital ads in 2013 was 52%. The most effective digital magazine ads were recalled by more than 80% of readers, in line with the most effective print ads, GfK said.

What’s Gained and Lost as The Times Ends Many Blogs

[Commentary] When The Times launched its India Ink blog in September 2011, it noted that this was the paper’s “first-ever country-specific site for news, information, culture and conversation.” Now it’s gone.

These days, that kind of specificity is no longer the way The Times wants to direct its resources -- at least not in the form of a blog, and all that usually comes with it: embedded content, reverse-chronological order, curation of other source material and a personal or conversational tone.

“We want to continue this kind of journalism without the manufactured shell of a blog, with its constant pressure to fill it up,” said Ian Fisher, an assistant managing editor. That will happen, he said, through blog-style pieces that crop up when needed.

The Times recently decided to end The Lede, a pioneering effort that aggregated news content on major breaking stories. That, he said, “was getting increasingly incoherent” in its purpose and was “losing its value.” It was also taking a lot of staff hours to keep it going.

Andrew Beaujon of Poynter.org reported that the closing of The Lede was part of a bigger strategy that will end about half of The Times’s blogs. Fisher went a step further saying that The Times already has ended or merged about half of the 60 or so blogs that it had at the high point in 2012, and there may be about another 10 to go, although nothing is on the chopping block at this moment.

My take is this: For dedicated readers of individual blogs, there is no doubt a loss in this move. When you’re very interested in a single topic, it’s great to have a place that constantly aggregates news and commentary, adds new information and, in general, speaks to your passion.

GM Pitches Wi-Fi in 2015 Cars

General Motors will soon begin an effort to sell high-speed Internet service to buyers of everything from $17,000 Chevrolet Spark subcompacts to top-of-the-line Cadillacs, a test of how much consumers are willing to pay to be online at the wheel.

The campaign is the first time the nation's largest auto maker has promoted one electronics technology across its Chevrolet, Cadillac, Buick and GMC brands. The Wi-Fi option would allow 2015 model year vehicles to link up to seven cellphones, laptops and other gadgets to the Internet.

GM is making its 4G LTE and Wi-Fi hot spot option the centerpiece to an effort to challenge rival Ford Motor's Sync, which offers voice-activated calling, music and navigation controls.

The Sync system, however, doesn't offer Wi-Fi. The auto maker won't say how much it is spending on the campaign. Citing the "independence" that the technology provides, GM will use the July 4 holiday to make its pitch via Facebook, movie theaters and the takeover of Gogo in-flight service.

Millennials Spend 14.5 Hours Per Week on Smartphones

Youth-obsessed marketers are anxious to figure out the best way to reach the so-called “Millennial Generation.” A new report validates the popular notion that the smartphone is the best vehicle.

Millennials, people ages 18 to 34, are the most connected generation, according to a new study from Experian Marketing Services. The study, based on a survey of almost 24,000 US adults, found that 77% of adult millennials own a smartphone and the average owner spends 14.5 hours a week using his or her smartphone texting, talking and on social media.

Marketers are already beginning to respond to the shift by increasing their spending on mobile advertising. Research firm eMarketer estimates that advertisers are expected to shell out about $17. 7 billion on mobile ads in the US in 2014; almost double from what they spent the previous year.

Mobile health device market to grow 8X to $42B

Driven by adoption of vital-signs monitoring and in-vitro diagnostic (IVD) devices, the mobile health (mHealth) market will grow eight-fold from $5.1 billion in 2013 to $41.8 billion in 2023, according to a new report.

The report, from Lux Research, titled "mHealth Showdown: Consumer and Clinical Devices' Battle for Market Dominance," notes that after a slow start due to regulatory constraints and integration with physician workflows, clinical mHealth devices will overtake and far outpace their consumer counterparts, which include mHealth bracelets that measure physcial activity and some vital signs.

The report also notes that in-vitro diagnostic and vital signs devices will make up 75% of the mHealth device market by 2023. The smartphone boom has also spurred increased venture capital funding for mHeatlh device companies, the report stated.

Is Your Android Device Telling the World Where You've Been?

Do you own an Android device? Is it less than three years old? If so, then when your phone’s screen is off and it’s not connected to a Wi-Fi network, there's a high risk that it is broadcasting your location history to anyone within Wi-Fi range that wants to listen.

This location history comes in the form of the names of wireless networks your phone has previously connected to. This data is arguably more dangerous than that leaked in previous location data scandals because it clearly denotes in human language places that you've spent enough time to use the Wi-Fi.

In Android we traced this behavior to a feature introduced in Honeycomb (Android 3.1) called Preferred Network Offload (PNO). PNO is supposed to allow phones and tablets to establish and maintain Wi-Fi connections even when they’re in low-power mode (i.e. when the screen is turned off).

The goal is to extend battery life and reduce mobile data usage, since Wi-Fi uses less power than cellular data. But for some reason, even though none of the Android phones we tested broadcast the names of networks they knew about when their screens were on, many of the phones running Honeycomb or later (and even one running Gingerbread) broadcast the names of networks they knew about when their screens were turned off.

Rep Eshoo wants to put cork in .wine websites

Rep Anna Eshoo (D-CA) doesn't think websites should be paired with .wine. In a letter to the head of the international group deciding new website endings, such as .com or .net, the top Democrat on the House’s Technology subcommittee said she was "deeply concerned" about certain generic top-level domain names (gLTDs).

“Specifically, it’s my understanding that the .wine and .vin gLTDs have been met with fierce opposition from the wine industry, both here in the US and around the world,” Rep Eshoo added. “Given those concerns ... I urge you to advocate for the .wine and .vin gTLDs to be permanently withdrawn from consideration.”

The nonprofit Internet Corporation for Assigned Names and Numbers, which manages online domain names, is in the process of creating hundreds of new extensions to expand the confines of the Web. As well as adding new letters after the "dot," extensions are also being rolled out in other characters like Chinese and Arabic, and industries are trying to capitalize on the move. Nike and McDonald’s have looked to get on board, as has the Republican Party.

Free Press
Tuesday July 8, 2014
3:30 PM – 5 PM

Sen. Al Franken will deliver opening remarks.

Free Press President and CEO Craig Aaron will moderate a panel discussion featuring:

  • Althea Erickson, Policy Director, Etsy
  • Ruth Livier, Actress and web series creator
  • Alexis Ohanian, Investor and founder of Reddit
  • Barbara van Schewick, Professor, Stanford Law School, and Director, Stanford Center for Internet and Society

Please RSVP to cwilliams@freepress.net