Scott Monty

Facebook's Trust Problem

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<a href="http://1.bp.blogspot.com/-i-3ZeHbvY6M/U6-2YHq9YAI/AAAAAAAAV70/ykVMr8BMhNQ/s1600/Bad+Bad+Wolf.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Repeat offender" border="0" height="392" src="http://1.bp.blogspot.com/-i-3ZeHbvY6M/U6-2YHq9YAI/AAAAAAAAV70/ykVMr8BMhNQ/s1600/Bad+Bad+Wolf.jpg" title="Big Bad Wolf" width="640" /></a></div>
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We're all aware that Facebook doesn't allow us to see all updates from all of our friends or the brand pages we like in our News Feed. It's simply not feasible, given the amount of content that is shared by those to whom we're connected. The <a href="https://www.facebook.com/business/news/Organic-Reach-on-Facebook" target="_blank">decline of organic reach</a> of brand pages is a result of this phenomenon.<br />
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But to some, Facebook may have overstepped the boundary with the revelation of certain research practices. This weekend, the public was informed of a research study at Facebook that was published in <i>The Proceedings of the National Academy of Sciences</i> as "<a href="http://www.pnas.org/content/111/24/8788.full" target="_blank">Experimental evidence of massive-scale emotional contagion through social networks</a>" by Facebook data scientist Adam Kramer, Jamie Guillory of UCSF and Jeffrey Hancock of Cornell University.<br />
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The study analyzed posts on the feeds of more than 600,000 Facebook users that had been tinkered with - to show either positive or negative emotions. The goal was to determine if the emotions shared over a social network were powerful enough to cause similar emotions to be shown by those who saw them. In other words, they were testing if happy posts made users feel happy and post happy things in response, and similarly with negative posts. You can read more about this on <a href="http://www.forbes.com/sites/kashmirhill/2014/06/28/facebook-manipulated-689003-users-emotions-for-science/" target="_blank">Forbes</a>, <a href="http://www.theatlantic.com/technology/archive/2014/06/everything-we-know-about-facebooks-secret-mood-manipulation-experiment/373648/" target="_blank">The Atlantic</a>, the <a href="http://www.avclub.com/article/facebook-tinkered-users-feeds-massive-psychology-e-206324?utm_source=Twitter&utm_medium=SocialMarketing&utm_campaign=Default:1:Default" target="_blank">A.V. Club</a> and elsewhere.<br />
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The problem is, no one knew this was going on.<br />
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<h3>
<b>Read Facebook's Terms</b></h3>
"This kind of thing is covered in <a href="https://www.facebook.com/legal/terms" target="_blank">Facebook's Terms</a>," I hear you saying. You're correct; it is covered. In fact, here's the specific section - although, it's not in the Terms, but two clicks down in the <a href="https://www.facebook.com/about/privacy/your-info" target="_blank">Data Use Policy  > Information we receive and how it is used</a> section. [You'll have to forgive me, as the 9,000 words in the combined documents are a little difficult to sort through for this professional.]<br />
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Here's what the relevant section says:<br />
<blockquote class="tr_bq">
<b>How we use the information we receive</b><br />
We use the information we receive about you in connection with the services and features we provide to you and other users like your friends, our partners, the advertisers that purchase ads on the site, and the developers that build the games, applications, and websites you use. For example, in addition to helping people see and find things that you do and share, we may use the information we receive about you:<br />
<ul>
<li>for internal operations, including troubleshooting, data analysis, testing, <i>research </i>and service improvement. [Emphasis added]</li>
</ul>
</blockquote>
[<b>UPDATE</b>: the word "research" was <a href="http://www.forbes.com/sites/kashmirhill/2014/06/30/facebook-only-got-permission-to-do-research-on-users-after-emotion-manipulation-study/" target="_blank">added to the Data Use Policy in April 2012</a>, four months <b><i>after</i></b> the research study began.]<br />
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Interestingly, that very same section also contains this phrase:<br />
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<h3 style="text-align: center;">
<b><i>Your trust is important to us</i></b></h3>
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We'll get back to the issue of trust in a moment.<br />
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<h3>
<b>The Ethics of Researchers</b></h3>
The 20th century saw the greatest advance in science and understanding, but it also held the distinction of being an era during which <a href="http://en.wikipedia.org/wiki/Unethical_human_experimentation_in_the_United_States" target="_blank">many human experiments</a> were conducted that were illegal or unethical, and without the consent or knowledge of the test subjects. One of the most notorious is the <a href="http://en.wikipedia.org/wiki/Tuskegee_syphilis_experiment" target="_blank">Tuskeegee syphyllis experiment</a> conducted by the U.S. Public Health Service from 1932-1972.<br />
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<a href="http://1.bp.blogspot.com/-vy-k17Z_y-0/U6-jB9jVdAI/AAAAAAAAV7k/tFwjmXEWlkQ/s1600/Tuskeegee_study.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Tuskeegee syphyllis experiment blood sample" border="0" height="470" src="http://1.bp.blogspot.com/-vy-k17Z_y-0/U6-jB9jVdAI/AAAAAAAAV7k/tFwjmXEWlkQ/s1600/Tuskeegee_study.jpg" title="Tuskeegee experiment - Wikipedia" width="640" /></a></div>
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The ethics of modern medicine, public health, psychology, marketing researchers and the like have come a long way since those comparatively barbaric times.<br />
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Whether we regard the Facebook study as one in the field of psychology or market research, there are ethical standards that each requires of its members. Let's take an in-depth look at each. For the purposes of brevity, only the relevant sections have been included.<br />
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<h4>
<b><a href="http://www.marketingresearch.org/code" target="_blank">Marketing Research Association Code of Marketing Research Standards</a></b></h4>
<blockquote class="tr_bq">
<h4>
General Conduct</h4>
<b>2. Protect the rights of respondents, including the right to refuse to participate in part or all of the research process.  </b>Researchers must respect the bounds of cooperation set by respondents, who control the parameters under which information is given. In practice, this means all of the following:<br />
<ul>
<li>Respondent agreement to participate in research must be obtained upfront, rather than after the fact.</li>
</ul>
<ul>
<li>Consent must be granted freely, without coercion.</li>
</ul>
<ul>
<li>Consent may be withdrawn by the respondent at any point during the contact.</li>
</ul>
<ul>
<li>Consent must be granted expressly for participation in any subsequent studies.</li>
</ul>
<ul>
<li>An explicit opt-out request for any future contact or participation at any point during the process will be honored.</li>
</ul>
<ul>
<li>All reasonable precautions are taken so that respondents are in no way adversely affected as a result of their participation in a marketing research project.</li>
</ul>
<u>Exceptions</u>: In limited circumstances of passive user data collection, no opportunity may exist for respondents to refuse to participate.<br />
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<h4>
Purpose of Use</h4>
<b>6. Obtain consent from respondents prior to utilizing their data in a manner materially different from that to which the respondent has agreed.</b><br />
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<h4>
Transparency</h4>
<b>8. Make factually correct statements to secure cooperation, including for database/sample development, and honor all promises made to respondents including but not limited to the use of data.</b><br />
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<u>Exceptions</u>: In limited instances, bona fide research projects may require, as part of their design, that respondents remain unaware of specific details such as in message testing. In such cases, upfront instructions to respondents should be truthful and furnish as much information as possible for a respondent to provide informed consent and they should be fully debriefed upon conclusion of contact, when applicable.</blockquote>
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One could argue that an up-front agreement to terms - terms in which the research clause is buried - does not give users a chance to refuse to participate or the ability to opt out. One could argue that the research could be considered a "subsequent study" and thus be held separately from the initial consent granted in the Terms/Data Use Policy.<br />
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Similarly, the American Psychological Association has a set of standards as well. If we take the research as a grand psychological experiment (which isn't too much of a stretch, as they were studying moods and emotional reaction to stimuli), it's logical to apply the APA's ethical standards to the effort. Incidentally, <a href="http://psychcentral.com/blog/archives/2014/06/23/emotional-contagion-on-facebook-more-like-bad-research-methods/" target="_blank">some psychologists have found a flaw</a> in the research.<br />
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<h4>
<b><a href="http://www.apa.org/ethics/code/principles.pdf" target="_blank">APA Ethical Principles of Pscyhologists and Code of Conduct</a></b></h4>
<blockquote class="tr_bq">
<b>Principle A: Beneficence and Nonmaleficence</b><br />
Psychologists strive to benefit those with whom they work and take care to do no harm.<br />
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<b>Principle B: fidelity and Responsibility</b><br />
Psychologists establish relationships of trust with those with whom they work.<br />
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<b>Principle C: Integrity</b><br />
Psychologists seek to promote accuracy, honesty, and truthfulness in the science, teaching and practice of psychology.<br />
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<b>Principle E: Respect for People's Rights and Dignity</b><br />
Psychologists respect the dignity and worth of all people, and the rights of individuals to privacy, confidentiality and self-determination. Psychologists are aware that special safeguards may be necessary to protect the rights and welfare of persons or communities whose vulnerabilities impair autonomous decision making. [such as Facebook users?]</blockquote>
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While the study may pass the sniff test for legal, regulatory, and perhaps even some ethical purposes, it's particularly instructive to note that Susan Fiske, the editor of the PNAS paper, thought it was "<a href="http://www.theatlantic.com/technology/archive/2014/06/even-the-editor-of-facebooks-mood-study-thought-it-was-creepy/373649/" target="_blank">creepy</a>."<br />
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<h3>
<b>Trust</b></h3>
When a professional who regularly grapples with ethical issues thinks a practice is creepy, you can imagine what the public thinks.<br />
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This is, of course, a public that has lived through a variety of missteps by Facebook - missteps that are typically backtracked after initial public outrage, and then slowly but surely incorporated as users get used to the new world order. Examples of <a href="http://en.wikipedia.org/wiki/Criticism_of_Facebook" target="_blank">criticism of Facebook</a> include:<br />
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<ul>
<li><a href="https://www.facebook.com/notes/facebook/thoughts-on-beacon/7584397130" target="_blank">Beacon</a></li>
<li><a href="http://www.npr.org/blogs/alltechconsidered/2012/11/29/166177278/yet-another-shift-in-facebook-policies-raises-privacy-concerns" target="_blank">Privacy policy complexity and changes</a></li>
<li><a href="http://newsroom.fb.com/news/2014/05/a-new-optional-way-to-share-and-discover-music-tv-and-movies/" target="_blank">The listening feature that would tap into users' microphones</a></li>
<li><a href="http://cir.ca/news/facebook-using-browsing-history-for-ads" target="_blank">Incorporating users' browsing history for advertising purposes</a></li>
</ul>
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<div>
With such a track record with the public, one would think that Facebook would need to be particularly vigilant about anything that would violate the public's trust at this point. But perhaps Facebook is confident that it has the attention and commitment from its 1.2 billion users - so much so that it needn't worry about angering some or losing their trust.</div>
<div>
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<div>
My contention is that most of the trust issues people have with Facebook could have been handled with better communication. </div>
<div>
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<div>
A number of companies in the digital realm make product changes first and communicate them later - in some cases, only when they're called on it by irate users. Of course, the nature of product development in these organizations is that features need to be tweaked and new releases need to go out in advance of the competition discovering them, for the lead time is very short. </div>
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<div>
But this cycle of abusive behavior (infraction, emotional response, apology, reaffirmation of commitment) will continue to go on as long as consumers allow it to.</div>
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<div>
Meanwhile, perhaps some forward thinking communicators can get out in front of some of these instances and offer up some transparency and leadership in how companies work hand in hand with their users for better experiences.</div>
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<div>
If they don't, they're at risk of letting their users simply feel used.<br />
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<b>UPDATE (7/2/2014):</b> Sheryl Sandberg, COO of Facebook, even admits that "<a href="http://blogs.wsj.com/digits/2014/07/02/facebooks-sandberg-apologizes-for-news-feed-experiment/?mod=djemTECH_h" target="_blank">it was communicated poorly</a>." (via WSJ)</div>
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<i>Image source: <a href="http://www.flickr.com/photos/imlsdcc/4295578507/" target="_blank">imlsdcc (Flickr)</a></i><br />
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Facebook's Trust Problem

We're all aware that Facebook doesn't allow us to see all updates from all of our friends or the brand pages we like in our News ...

This Week in Digital - June 20, 2014

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<a href="http://2.bp.blogspot.com/-2t8snnXzNP8/U6UBwDQZauI/AAAAAAAAVwM/md42Lhnl0Vo/s1600/Fire+phone.jpg" style="margin-left: 1em; margin-right: 1em;"><img alt="Credit: Ben Schumin (Flickr) https://flic.kr/p/2jbSKwz" border="0" height="476" src="http://2.bp.blogspot.com/-2t8snnXzNP8/U6UBwDQZauI/AAAAAAAAVwM/md42Lhnl0Vo/s1600/Fire+phone.jpg" title="Traditional fire phone" width="640" /></a></div>
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Amazon releases more than just a phone, brands question the value of large agencies, Facebook puts ad choices in users' hands, Twitter makes a critical decision that may single-handedly doom the platform, Tumblr ads join Yahoo, PR tech is the future, two data points that demonstrate what's wrong with marketing, the changes needed to better serve consumers and more, it's This Week in Digital. <br />
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A roundup of relevant links affecting our industry. <br />
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Each week, I compose a newsletter that includes a series of links about current events and trends in the worlds of technology, social media, mobile, digital communications and marketing in order to keep leaders up to date on changes, newsworthy items and content that might be useful in their jobs. <br />
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If you have additional links, sources or ideas that might be helpful, I'd encourage you to add some via a comment below.  And if you’re on Flipboard, you can get these links by subscribing to the <a href="http://flip.it/IfN4O">This Week in Digital Magazine</a>. <br />
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<h3>
<b>Industry</b></h3>
<ul>
<li>The biggest news this week came from Amazon, as they <a href="http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=1940902&highlight=">released their Fire Phone</a>. Taking a closer look, MG Siegler notes that what's most remarkable about this device is not that it's another smartphone, but <a href="https://medium.com/five-hundred-words/6d3692e2a9af">it's a smart camera</a>. (Medium)</li>
<li>Wikipedia has strengthened its <a href="http://blogs.wsj.com/digits/2014/06/16/wikipedia-strengthens-rules-against-undisclosed-editing/">rules against undisclosed editing</a>, which means that if you're in the reputation management business, you should <a href="http://holtz.com/blog/blog/add-wikipedia-editing-as-a-communication-competency-or-go-home/4357">make Wikipedia editing part of your core competency</a>. (WSJ Digits & Holtz.com)</li>
<li>As communications technology continues to develop, more <a href="http://in2.holmesreport.com/2014/06/brands-question-value-of-big-agency-networks-social-media-firms-and-content-shops-study/">brands are questioning the value of large agencies or holding companies</a>, in favor of smaller agencies' abilities to get the job done. (Holmes Report)</li>
</ul>
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<a href="http://2.bp.blogspot.com/-TviaDxHBbmc/U6UAfoZDOyI/AAAAAAAAVv0/XqPYd0RRnzw/s1600/Large-agency-value.png" style="margin-left: 1em; margin-right: 1em;"><img alt="Technology is driving more small agency opportunities with brands" border="0" height="324" src="http://2.bp.blogspot.com/-TviaDxHBbmc/U6UAfoZDOyI/AAAAAAAAVv0/XqPYd0RRnzw/s1600/Large-agency-value.png" title="Brands question large agencies over small" width="640" /></a></div>
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<h3>
<b>Platforms</b></h3>
<ul>
<li><b>Facebook</b></li>
<ul>
<li>Facebook is putting the power into users' hands by <a href="http://newsroom.fb.com/news/2014/06/making-ads-better-and-giving-people-more-control-over-the-ads-they-see/">giving them the power to make ads better</a> by having some say over what they see. (Facebook)</li>
<li>Of course, this means that good advertising will be rewarded over bad. So <a href="http://digiday.com/brands/facebooks-targeting-changes-mean-brands/">what does this mean for brands?</a> (Digiday)</li>
<li>Here are <a href="http://www.sociallystacked.com/2014/06/25-pieces-of-advice-you-need-to-build-an-awesome-facebook-page/#sthash.EhXFZ2aP.dpbs">25 pieces of advice you need to build an awesome Facebook page</a>. (Socially Stacked)</li>
<li>A recent report shows just <a href="http://contently.com/strategist/2014/06/12/new-report-reveals-just-how-drastically-brand-engagement-is-plummeting-on-facebook/">how precipitously organic reach has fallen</a> on Facebook. (Contently)</li>
</ul>
<li><b>Twitter</b></li>
<ul>
<li>Twitter now has the <a href="http://thenextweb.com/twitter/2014/06/18/twitter-adds-native-animated-gif-support-twitter-com-android-iphone/">capability to support animated GIFs</a> on their website, iOS and Android. Don't say we didn't warn you. (The Next Web)</li>
<li><a href="http://bioischanged.com/">Bio Is Changed</a> is a service that will alert you any time someone you follow <a href="http://recode.net/2014/06/17/heres-the-twitter-tracking-tool-more-people-should-know-about/">changes his/her profile photo or bio</a> on Twitter. Sneaky. (re/code)</li>
<li>Continuing down the path of social TV, <a href="https://blog.twitter.com/2014/snappytv-is-joining-the-flock">Twitter has acquired SnappyTV</a>, a service for sharing video clips from broadcast. (Twitter blog)</li>
</ul>
<li>YouTube is requiring independent musicians to sign up for its subscription music service, or <a href="http://www.theguardian.com/technology/2014/jun/17/youtube-indie-labels-music-subscription">they'll risk being removed from YouTube altogether</a>. (The Guardian)</li>
<li>Ensuring integration, Tumblr native ads (or "sponsored posts," as Yahoo calls them) <a href="http://mashable.com/2014/06/17/yahoo-monetizes-tumblr-with-integration-of-sponsored-posts/">will be appearing across Yahoo properties</a>. (Mashable)</li>
</ul>
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<h3>
<b>Measurement/Metrics/Big Data</b></h3>
<ul>
<li>With more demand for data, performance numbers and ROI, <a href="http://mashable.com/2014/06/05/pr-tech-future/">PR tech is the future</a>. (Mashable)</li>
<li>But be careful not to chase numbers; <a href="http://contently.com/strategist/2014/06/13/data-vs-editorial-judgment-the-danger-of-chasing-numbers-2/">editorial judgment is still necessary</a>. (Contently)</li>
<li>The good news is that the data and analytics options are wide and varied, and <a href="http://www.mckinsey.com/Insights/Marketing_Sales/Using_marketing_analytics_to_drive_superior_growth?cid=DigitalEdge-eml-alt-mip-mck-oth-1406">by using an integrated approach, marketing analytics can help drive growth</a>. (McKinsey)</li>
<li>The Financial Times is <a href="http://contently.com/strategist/2014/06/16/the-financial-times-on-why-they-ditched-cpms-for-a-new-ad-currency-time-spent/">ditching CPMs for time spent</a> as a metric. (Contently)</li>
</ul>
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<h3>
<b>Legal/HR</b></h3>
<ul>
<li>In the United Kingdom, <a href="http://www.cnbc.com/id/101768939">it is completely legal for British spies to monitor citizens' social media activities</a>. (CNBC)</li>
</ul>
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<h3>
<b>Content</b></h3>
<ul>
<li>The single best indicator of valuable content -- <a href="http://www.shiftcomm.com/2014/06/single-best-indicator-valuable-content/">you might be surprised</a>. (SHIFT Communications)</li>
<li>Content is one thing. But when <a href="http://spinsucks.com/marketing/content-trust-power-of-influence/">combined with trust and influence</a>, you've got something. (Spin Sucks)</li>
</ul>
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<a href="http://4.bp.blogspot.com/-jJr5En0UTh8/U6UA3Ym0paI/AAAAAAAAVv8/Pwj66g1CBd0/s1600/Customer+reviews.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="http://4.bp.blogspot.com/-jJr5En0UTh8/U6UA3Ym0paI/AAAAAAAAVv8/Pwj66g1CBd0/s1600/Customer+reviews.jpg" width="640" /></a></div>
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<h3>
<b>Essential Reading/Watching/Listening</b></h3>
<ul>
<li>A fascinating long read: Facebook's plan is much bigger than its eponymous app; <a href="http://www.fastcompany.com/3031237/facebook-everywhere?partner=newsletter">Facebook wants to own your phone</a>. (Fast Company)</li>
<li>Mitch Joel reflects on <a href="http://www.twistimage.com/blog/archives/these-two-data-points-demonstrate-whats-so-wrong-with-marketing-today/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+TwistImage+%28Six+Pixels+of+Separation+-+Marketing+and+Communications+Insights+Blog+-+Mitch+Joel+-+Twist+Image%29">the two data points that demonstrate what's wrong with digital marketing today</a>, which essentially say that branding doesn't work with digital. He rightly states and asks: "…we confuse advertising with marketing. We don't count websites, social media, apps and more as part of our branding experience. Why? Why don't we do this?" (Twist Image)</li>
<li>And almost as if to answer this lament, in <a href="http://www.mckinsey.com/insights/marketing_sales/mastering_digital_marketing?cid=DigitalEdge-eml-alt-mip-mck-oth-1406">Mastering Digital Marketing</a>, McKinsey's David Edelman explains what companies get wrong when it comes to digital marketing and <a href="http://www.mckinsey.com/insights/marketing_sales/mastering_digital_marketing?cid=DigitalEdge-eml-alt-mip-mck-oth-1406">the changes needed to better engage consumers</a>. [If you cannot see video, please click the link.] (McKinsey)</li>
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Image credit: Ben Schumin (<a href="https://flic.kr/p/2jbSKwz" target="_blank">Flickr</a>)</i></span></div>

This Week in Digital - June 20, 2014

Amazon releases more than just a phone, brands question the value of large agencies, Facebook puts ad choices in users' hands, Twitt...

Military Strategy and the Collaborative Economy

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<a href="http://2.bp.blogspot.com/-iIUKMaB0Sdw/U50CjiiS7iI/AAAAAAAAVmo/QqWkZMmSWGI/s1600/HMS+Inflexible.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="HMS Inflexible" border="0" height="390" src="http://2.bp.blogspot.com/-iIUKMaB0Sdw/U50CjiiS7iI/AAAAAAAAVmo/QqWkZMmSWGI/s1600/HMS+Inflexible.jpg" title="HMS Inflexible" width="640" /></a></div>
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By now you're likely aware of the <a href="http://www.businessweek.com/articles/2014-02-20/uber-leads-taxi-industry-disruption-amid-fight-for-riders-drivers" target="_blank">multi-city battles</a> that are waged between the traditional taxi industry and upstart car service Uber. Medallion holders and legislators in cities such as <a href="http://articles.chicagotribune.com/2012-12-09/business/ct-biz-1209-confidential-uber-20121209_1_travis-kalanick-simon-garber-taxi-operators" target="_blank">Chicago</a>, <a href="http://betabeat.com/2014/05/new-york-city-taxi-medallion-managers-pick-a-fight-with-uber/" target="_blank">New York</a>, <a href="http://blog.chron.com/kuffsworld/2014/05/the-uberlyft-debate-comes-to-austin/" target="_blank">Austin</a>, <a href="http://www.theatlantic.com/technology/archive/2012/07/uber-vs-washington-dc-this-is-insane/259614/" target="_blank">Washington</a> and more have dug in their heels in favor of the status quo over innovation when it comes to mobility and transportation.<br />
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And just last week, a number of cities in Europe - including London and Madrid - <a href="http://bits.blogs.nytimes.com/2014/06/11/taxi-protests-against-uber-in-europe-to-snarl-traffic/?_php=true&_type=blogs&_r=0" target="_blank">staged a massive protest</a> during which they withheld taxi service from consumers, with a "we'll show them" attitude designed to demonstrate the superiority of the traditional cab service over an app.<br />
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The problem is it backfired.<br />
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The exact opposite happened. Rather than commuters, tourists and citizens being up in arms about a lack of cabs, they turned to their smartphones (let's not forget that in 2013, <a href="http://www.gartner.com/newsroom/id/2665715" target="_blank">smartphones accounted for more than 50% of global phone sales</a>) and downloaded the <a href="https://www.uber.com/" target="_blank">Uber app</a>. And they did so to the tune of <b><i><a href="http://www.forbes.com/sites/jaymcgregor/2014/06/11/uber-sees-850-per-cent-increase-in-sign-ups-amidst-london-protests/" target="_blank">an 850% increase</a></i></b> over a typical day.<br />
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<div style="text-align: center;">
[<b>Aside</b>: if you'd like to use my promo code <b><span style="font-size: large;">m8m99</span></b> on your first Uber ride, it will save you $10.]</div>
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With the advent of more companies like Airbnb, Uber, Feastly and others, it should be clear that <a href="http://www.web-strategist.com/blog/2014/06/12/dont-protest-the-collaborative-economy-lead-it/" target="_blank">protesting is not a business strategy</a>; Jeremiah Owyang founded <a href="http://crowdcompanies.com/" target="_blank">Crowd Companies</a> to bring together big businesses and the emerging startups that are disrupting traditional models.<br />
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<a href="http://4.bp.blogspot.com/-pDV6JZ666Z4/U50P8Oan8gI/AAAAAAAAVnY/rKkwrCUsdxQ/s1600/Collaborative+Economy+Honeycomb.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Money, goods, services, food, space and transportation in the collaborative economy" border="0" height="400" src="http://4.bp.blogspot.com/-pDV6JZ666Z4/U50P8Oan8gI/AAAAAAAAVnY/rKkwrCUsdxQ/s1600/Collaborative+Economy+Honeycomb.jpg" title="Collaborative economy honeycomb" width="640" /></a></div>
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<h3>
<b><br />
Some Military Perspective</b></h3>
I just returned from vacation with my family, during which we drove to Washington, DC. While we were there, we had an opportunity to visit Mount Vernon - George Washington's estate - where we learned about some of the battles he was involved in during the Revolutionary War.<br />
<br />
If you're at all familiar with the series of battles that culminated in the United States winning its liberty from Great Britain, you'll know that the Redcoats assembled for battle in their very traditional European formations:<br />
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<div class="separator" style="clear: both; text-align: center;">
<a href="http://3.bp.blogspot.com/-SmZ3uJAqFok/U50GhfTEXlI/AAAAAAAAVm4/sS57EnlVb8Y/s1600/British+2.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Traditional British infantry position" border="0" height="264" src="http://3.bp.blogspot.com/-SmZ3uJAqFok/U50GhfTEXlI/AAAAAAAAVm4/sS57EnlVb8Y/s1600/British+2.PNG" title="British infantry formation Revolutionary War" width="640" /></a></div>
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<div class="separator" style="clear: both; text-align: center;">
<a href="http://3.bp.blogspot.com/-EoVhkfvTuVs/U50GhXke0oI/AAAAAAAAVm0/19z-E3AOGQQ/s1600/British+1.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="British preparing for battle vs. Americans in Revolutionary War" border="0" height="272" src="http://3.bp.blogspot.com/-EoVhkfvTuVs/U50GhXke0oI/AAAAAAAAVm0/19z-E3AOGQQ/s1600/British+1.PNG" title="British infantry assembly Revolutionary War" width="640" /></a></div>
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Of course, the rebels, fighting for their lands, took a less traditional approach and used an unexpected strategy in doing battle with the British:<br />
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<div class="separator" style="clear: both; text-align: center;">
<a href="http://4.bp.blogspot.com/-ejCOBYH6guQ/U50HYCjteJI/AAAAAAAAVnI/qN4o4GFb6G0/s1600/Americans+1.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Non traditional battle tactics vs. British" border="0" height="274" src="http://4.bp.blogspot.com/-ejCOBYH6guQ/U50HYCjteJI/AAAAAAAAVnI/qN4o4GFb6G0/s1600/Americans+1.PNG" title="Americans at battle - Revolutionary War" width="640" /></a></div>
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<div class="separator" style="clear: both; text-align: center;">
<a href="http://3.bp.blogspot.com/-ngrYhgs6Haw/U50HX_yT8DI/AAAAAAAAVnE/RnChZYwMoP8/s1600/Americans+2.PNG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img alt="Rebels attacking British in swamp" border="0" height="276" src="http://3.bp.blogspot.com/-ngrYhgs6Haw/U50HX_yT8DI/AAAAAAAAVnE/RnChZYwMoP8/s1600/Americans+2.PNG" title="Rebels ambush British" width="640" /></a></div>
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Need I remind you who won that war?<br />
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<br />
Bill Cosby had a bit called "<a href="https://www.youtube.com/watch?v=9MGYoCNU5es&feature=kp" target="_blank">The Coin Toss</a>" from his first album that illustrated this lopsided contest:<br />
<blockquote class="tr_bq">
At the beginning of every football game, a referee comes out and he introduces the two team captains and he flips the coin...<br />
"Call the toss there Captain Harbers. Capt. Harbers calls heads; it's tails - you lose the toss, captain. Captain Solbers, your team wins; what will you do?" </blockquote>
<blockquote class="tr_bq">
Now, he'll do whatever is to his advantage:<br />
"We will receive, we will receive."<br />
"Alright, this team here will receive, they will receive. And what will your team do?"<br />
"We will kick off, we will kick off."<br />
"Alright, this team here will kick off, they will kick off." </blockquote>
<blockquote class="tr_bq">
What if you can a referee before every war and he called the toss? Let's go to the Revolutionary War: </blockquote>
<blockquote class="tr_bq">
"Captain Solbers of the Settlers, this is Captain Harbers of the British. Captain Harbers of the British, this is Captain Solbers of the Settlers. Call the toss there, British. British call heads; it's tails. You lose the toss, British; the Settlers win - what will you do Settlers?"<br />
"Alright, the Settlers say that during the war, they will wear any color clothes that they want to, shoot from behind the rocks, the trees and everywhere; and says that your team must wear red and march in a straight line."</blockquote>
<br />
<h3>
<b><br />
Those who cannot learn from history...</b></h3>
While driving on our vacation, I caught an episode of NPR's "Fresh Air" on which <a href="http://www.npr.org/templates/transcript/transcript.php?storyId=209573091" target="_blank">Scott Anderson was interviewed</a> by host Dave Davies about his book <i><a href="http://amzn.to/1hZiwVz" rel="nofollow" target="_blank">Lawrence in Arabia</a></i>. I was struck on how little the British seemed to have learned from their American experience over 125 years earlier:<br />
<br />
[Partial transcript from "Fresh Air"]<br />
<blockquote class="tr_bq">
ANDERSON: Lawrence had an innate understanding of how to wage war in the Middle East that a regular military officer at the time who had studied Napoleonic wars or even trench warfare, it would have been utterly alien to them.<br />
<br />
DAVIES: Right, and this of course stood in sharp contrast to mechanized war as it was fought in the First World War, where there were machine guns, heavy artillery, you know, caused enormous loss of life and were run by highly regimented armies.<br />
<br />
ANDERSON: That's right, that's right, and they even brought that concept of war, these frontal assault attacks, against entrenched men with machine guns, which was so disastrous all across Europe, but it was also disastrous in the Middle East. And on three different occasions, <b><i>the British army attacked a vastly smaller and disorganized and ill-equipped a hungry, starving Turkish army and were slaughtered</i></b>.<br />
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Just <i><b>the lack of imagination</b></i> of - the <b><i>lack of coming up with any other sort of tactic</i></b> in which to wage this war, it was stunning how long it took the British military hierarchy to start adapting. [Emphasis added]</blockquote>
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If you've read this far, you'll probably have already made the connection between the Collaborative Economy and historic British military strategy. The traditional companies that wish to keep on with business as usual - or even worse, by protesting the changes afoot - face the same level of futility and defeat that the British faced in unfamiliar overseas territory.<br />
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<i>Image credit: <a href="http://en.wikipedia.org/wiki/HMS_Inflexible_(1907)" target="_blank">Wikipedia (the HMS </a></i><a href="http://en.wikipedia.org/wiki/HMS_Inflexible_(1907)" target="_blank">Inflexible<i>)</i></a><br />
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Military Strategy and the Collaborative Economy

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