Big Brother in your Pocket? - also musings on the future of VALUE and ADVERTISING on the Steem platform
A bit of non-Steem/crypto news evaded my shields and I am a little horrified. One of the really, really nice things about my full-time immersion in Steem since mid-July is that I have completely ditched Facebook (to the tune of a literal handful of logins since August) and I very rarely find myself reading click-bait or the otherwise depressing news articles that my Facebook friends share incessantly. Still, every now and then, a bit of non-Steem, non-Crypto news infiltrates the Gnash-base and this morning was one such occasion when I stumbled across this article from the New York Times:
"That Game on Your Phone May Be Tracking What You’re Watching on TV"
tl;dr
A company called Alphonso has developed software that can be integrated with many different kinds of (non-related) smartphone apps and can run in the background even when the apps are not being used; this software accesses a smart phone's microphone to identify TV shows that are playing in the background (even when the phone is in a pocket!); the app also accesses location information to record the location of the phone owner and uses the gathered data so advertisers can target ads based on the smart phone owner's TV viewing habits and lifestyle.
Why horrified?
From the big business perspective this is undoubtedly an amazing development - Alphonso's software can collect data on ads that a user watches while at a friend's house, while in a bar, etc., so it goes way beyond the kind of info that traditional TV viewership researchers like Nielsen can gather with a set-top box. Coupling that with the ability to track real world location even when not watching TV and you can now show a link between a specific ad shown on TV, on a specific time slot/station, and a real life visit to a particular store. This is an advertiser's wet dream. But what about this development has me a little horrified?
Well for one thing there are apps targeted at children (kid's games) that are integrated with the Alphonso software, which just rubs me wrong on a very basic level. But more importantly, this is just another example of the kind of thing that gets crammed down consumers' throats in the legalese of a user agreement:
Alphonso said that its software, which does not record human speech, is clearly explained in app descriptions and privacy policies and that the company cannot gain access to users’ microphones and locations unless they agree.New York Times“The consumer is opting in knowingly and can opt out any time,” Ashish Chordia, Alphonso’s chief executive, said, adding that the company’s disclosures comply with Federal Trade Commission guidelines. The company also provides opt-out instructions on its website.
In what world does clicking yes on the user agreement of a children's app on the Play store constitute agreeing that Big Brother can watch TV with you and accompany you to the adult bookstore?
This world, apparently. Show of hands in the comments - how many of you actually read user agreements?
The future of VALUE on the Steem platform
As unsettling as this story was, it did prompt my train of thought to take off down an interesting track. Generally when you hear people talking about value on Steem it is in terms of original content adding value. The call is always for more original content creators, and the worry is that Steem is going to drown in a sea of plagiarization and crap posting and spam posting.
First let me say that I am absolutely and 100% for original content. I support truly original, creative content and that is the entire point behind the Human Certified Original Works initiative.
That being said, I am not convinced the original content that will be posted on Steem is going to end up being the most valuable thing about the Steem blockchain (speaking purely of value in the economic, business valuation sense - what about Steem will generate the most dollar value).
Where does Facebook's value come from
Facebook is one of the 5 most valuable companies in the world. Does its value come from the original content produced by Facebook users? Definitely not. Is there original content being produced on Facebook? Definitely.
You could argue Facebook's value comes from its user experience and functionality. This is certainly why Facebook has so many users! So maybe you could say that Facebook's value comes from its number of users. This is a circular argument but certainly true - Facebook would not be valuable if it did not have users. But why. What do the users provide that is so valuable?
I already rejected original content categorically above and do not feel I even need to justify this - everyone knows what makes Facebook valuable is not the original content produced on it. It is advertising dollars. Part of the value is just the number of users, because this represents potential consumers for brands to target. This means part of the value is the user experience and functionality which attracted the user base.
But it can't just be the number of users. There are many other channels where a brand can engage with consumers - TV and print still have huge reaches, but they are falling farther and farther behind Facebook in the ad dollar game. Where is Facebook generating this revenue edge? What the users of Facebook provide that is valuable is a literal treasure trove of data that Facebook data scientists have attacked with the best tools available to man and machine to create one of the most effective advertising ecosystems in the history of modern commerce. It does not matter in the slightest if anything original was ever created on Facebook, from the valuation standpoint, as long as enough users shared and liked and interacted and created this data set which gives Facebook leverage that no other ad seller has (ok, except maybe Google and Amazon). Facebook can target ads with a breathtaking precision.
What is so interesting to me when I think about value on Steem is a hypothetical future where the active user base is in the tens of millions (or more). This assumes that Steem does NOT sink in a pile of crap and dissolve in spam and explode in a flurry of reach arounds. This assumes that steemit.com/Steemit, inc., or (more likely) a 3rd party website/app solves the user experience issues. In this future, the greatest value will BE the blockchain. It will be the record of all these social interactions and linked financial transactions - it will be a treasure trove like the one Facebook has under lock and key, but this data set is PUBLIC.
Let that sink in.
Anyone or any team will be able to develop highly sophisticated and accurate ad profiling algorithms to target Steem users based on their actions on blockchain. The question will be how can this be leveraged into ad spends; will ad dollars find a way on platform directly? Will Steem user profiles be linked to real life identities through browser fingerprinting or other techniques, enabling advertisers to target Steem users based on their Steem transaction history even if the ad is being served up on a totally unrelated website? Will you receive coupon offers from your local grocery store customized with the help of your Steem activity?
It is not a question of if, but when - as long as the user base of Steem grows large enough, the sheer advertising value inherent in that mass of data will ensure that someone figures out a way to monetize it.
To bring this full circle - does the average Steem user understand that everything on Steem is public? Will the average user understand this when it is not just a bunch of tech savvy, crypto-sphere, early adopter, content creator types round these parts? Is this any different from advertising software like Alphonso hiding in a user agreement? I would not be surprised if a very significant chunk of Steem users do not realize that wallets and transaction history are public - it would be very easy to assume that you can see your wallet because it is yours, and to never even think to look in someone else's wallet.
The public nature of this entire thing has fascinated me from the first little bit I read about Steem. The idea that every little tiff and squabble, every drunk or impulsive comment, every edit and retraction - EVERYTHING - is all just hanging out there in the sun for all to see. This is the value and it is right there for anyone who wants to take it. Data is value. By making everything public and visible all the way to wallet transactions, Steem is creating a truly remarkable public commons of data. I am sure that advertising is not the only way this data will be used, and is probably a very limited vision of the true potential worth of this mountain of information we call Steem. I don't have to be able to see the exact uses this data will be put to, to know in my bones that it is a gold mine.
Much love - Carl
Well, I guess for the people side of things, human interaction and connections is the main thing...and at least on Steemit you get paid to sell your soul ;)
User agreements were once just a liability clause, but now I see them and whether I read them or not, I know they basically mean "You agree to surrender all free will, we can take whatever we want from you at any time and you have no recourse. We promise not to leave blood stains on the carpet."
Well said!
@elew and @carlgnash, this is exactly what keeps people here the community and connections - it feels more like a worldwide movement than anything before it. Looking forward to what Steem can put forward to society in the future. If it involves advertising at least it could continue to make the advertising relatable, the best and most interesting ad's are the ones that have the most creative thought put into them, I'm all for advertising if it is done in a creative way. Sometimes appealing to the human condition can make such a great argument for more decent ad's in the future.
There is a company that has done some ad's for Volvo, the thought and creativity that goes into it to play on the emotions of the viewer is awe inspiring and if Steemit can appeal to the companies that provide advertising of this calibre I'm looking forward to it!
If I could upvote this post two or three times I would, it's really just re-affirmed to me that great content on steemit does not have to be amazing pictures and multimedia content - sharing your thoughts and feelings works just as well. And that really is Steemit - anyone can create great content you don't need expensive equipment or movie grade cameras - if you have a basic computer or smartphone and can type then you are away. And the complete transparency of the Steemit blockchain is something every user should learn from the start - to me the single best way for anyone starting out is find users who post content they like - and then learn from what they are doing. Look at their comments, look at their replies - and more importantly look at their wallet transactions. You can learn so much looking through what people do with their funds. I run my own business, and spend a ludicrous amount of money on marketing - especially Adwords - the hardest part for me is seeing the confirmed online orders struggling to cover the cost of the click through cost. Of course I have to consider the people who look now and buy later, and some of the very high value kit I supply they don't order online they will telephone, come in person and pay directly - but may have still found me originally through the ads. With Steemit you can exactly see what you spend on ads (the much berated upvote bots) and then see what you get back from a post in rewards. My content is mediocre, and left on it's own would generate nothing of substance - once I realised I could market my posts to get greater rewards I put everything I earned into each post and still continue to do that. It's working for me and I struggle to understand why the upvote bot growth is considered bad for the platform - for someone like me it is the only way I can hope to get my content seen. Plus my ROI is very good - I can work out for every post what I spent and what exactly I got back in rewards after the 7 days - in most cases 3 to 4 times the SBD put in is being received in rewards. I'm still struggling to work out what Steemit considers a quality post, but try my best to make every one of my own posts as rich as possible - it might not be an amazing journey around a far flung land, or a once in a life time experience - but I put a great deal into using my own pictures and text to create something unique to me - and real people seem to like it. And that is what I am trying my hardest to convey to new users on Steemit - the content they create does not need to be found from sources on the internet, or taken from other users because it worked from them. The greatest content I enjoy - is the real life experiences posted by users - just like on Facebook we just love looking into what other people are up to - and this is the simplest thing for anyone on Steemit struggling to work out what content to share - just share you - your life, your experience, what you are doing - where you have been. And then put everything you have into promoting each post.
You have collected your daily Power Up! This post received an upvote worth of 0.67$.
Learn how to Power Up Smart here!
You mean that wall of text you need to scroll down to the bottom of to activate the button that takes you to where you wanted to go? ummmmmmm
This 'listening in' is way too intrusive and should be illegal imo. i.e. i don't need to have to read a short story to find the line that says, 'we know where you are and we are listening to everything around you'
YIKES!
But yeah, gold mine for proximity advertising!
Yes you have summed up 99% of the population's experience with user agreements very nicely
Why thank you Carl :)
So much to be getting on with, but it's so nice outside!
Im going back to my nokia 3310.
Much food for thought, here, @carlgnash, about the way we live, now...
As a deeply private person, I used to be horrified about sharing anything too personal... But, now, I've come to realize that nothing is. As an artist, the more intimate one is with the page, if they dare to stand stripped down to the soul, the more likely they are to connect with a 'stranger'. Because, of course, there are no 'strangers'...
So, whenever I sit to write, now, I'm thinking outloud and aware that it's also available to the world, if they care to hear.
Transparency, a term currently much-abused in political and business circles, once meant something. For the ancient Greek philosopher Diogenes, living in truth entailed making of the world a vast glass house with transparency of impulses, intentions and conduct.
To illustrate his point, Diogenes masturbated in the marketplace and lived in an open tub (flamboyantly searching with a lantern, in full daylight, for ‘an honest man.’) You might be relieved to hear that I've not quite got this far, yet. But, who knows what the future holds :)
So on another note, we had our 5 year old grandson here for two weeks over his christmas break from school. He asked if he could bring his Nintendo, and I unknowingly said yes.
My kids had those games when they were small, you get the little cards, pop them in, play annoying games and so on...no big deal, right?
Not so much anymore. Now, they have to be connected to the internet in order to use them. So he pops in a game, and the camera starts showing the room in our place on the screen, like a live video...and you play the game over a backdrop of where ever the camera on the thing is pointing.
I was like, whoa, hey, wait a minute, turn that thing off...turn off the camera. He said, you can't, the only way the game works is if the camera is on. I asked him to pick a different game then, that doesn't use the camera, and he said they are all like that.
I found myself trying to explain to a 5 year old that when connected to the internet, there IS someone on the other side, watching what the camera sees, and I don't want them looking around in our house when I didn't invite them in. It took him a moment, but then he turned it off and thought about it. About an hour later he said, "I shouldn't bring the nintendo into the bathroom when mom is in the shower then, because that is private."
We used to have a name for people who watched in on other people without their knowledge, and it was considered to be disgraceful, peeping Tom.
We live in a sick world culture these days.
Have you heard of ID 2020? If not, you might find it interesting to read up on.
Geez man Nintendo, it ain't what it used to be, huh?
Yeah, it's crazy, blew my mind a little bit.
Interesting read. I read the Terms of Use on Steemit before I hit that Agree button, but in many cases unfortunately I don't do that. I don't like the idea of being followed in any such way or agreeing to some predatory terms while wanting to use some app . I'm glad that your train of thought took me with you. I'm happy that Steemit is currently free from many nuisances typical for Facebook etc., would be wonderful if could stay this way. Thanks for the post Carl. Love, Klaudia
Steemit is awesome!!...;D
in steemit you will definitely earn money!!
nice post by the way @carlgnash......nice3x...XD