Frequent thinker, occasional writer, constant smart-arse

Tag: brand (Page 2 of 2)

Privacy – just like inflation

Privacy is a massive business issue. I’ve commented on the lack of interest in privacy from entrepreneurs in the web space; I’ve tried to define privacy; and I joined the APML workgroup for this reason

Need to know why I think it matters? Well here are three facts:

1) Targeted advertising is the future of advertising. Why? Because it’s most effective type of advertising.

2) Web services, and arguably the entire attention economy, rely on advertising as a revenue model.

3) There is a natural friction between targeted advertising and privacy. You can’t target without knowing who you are targeting – which implies some type of implicit collection of data.

Google, on the strength of its brand, has been able to manage the privacy issue. But no longer. Privacy International has ranked Google at the worst privacy offended on the internet. As 99% of Google’s revenue relies on advertising, with open acknowledgment that they are trying to find ways of better targeting advertising, we can expect to hear more and more how Google’s evil is in the data they collect and the way they control it.

Economic growth is one of the key concepts to how our world works – it’s what companies and countries for example, constantly aim for. But as we have seen repeatedly, if an economy grows too quickly, problems can appear – inflation, infrastructure issues, and fatigue. Greed has a price. In the context of an economy, inflation is the speed-hump – the faster you drive over it, the bigger the hit.

So would it be too far to extend the metaphor, to say that privacy is the advertising equivalent to inflation? If you are relying on advertising as a revenue model, remember that privacy will matter more and more with an interconnected world.

Aw shucks – my baby is four years old

When I was at university, I started a Journalist’s Society around 2002 (the publications came under the brand “idMedia”). After some time, I jumped on the new media bandwagon (print is expensive, internet is cheap!) and among other things, started a weekly publication that developed a following of hundreds of people. Since I left uni in 2004, another two editorial teams have gone through, and today, the fourth generation of the News Digest is alive and kicking!

The rendering is horrid, and I really should upgrade their wordpress installation (which I regret converting to WP now – I did it to save them time in coding a template, but instead it has completely changed the type of content that gets pumped out). This is what it looked like back when I was at the helm.

But I am going to leave it be and let them do their own thing. The last few years, I’ve known the people that ran it but this year, I don’t. The true test that you’ve built something sustainable is if it can stand on it’s own. If you can take away a personality, and it still works, it’s been institutionalised. That’s cool.

Whether it lasts, who knows – but I sure as hell left that Society financially sustainable – time to invoice their bloody server hosting…

How to become the next Google

During the industrial age, information was a scarce commodity. The flow of information was controlled by the mass media – books, newspapers, television – were the sole distributors of information. The media during this age had a huge influence on society because the mass media was effectively the "gatekeeper" of information in society. Supply, or rather the distribution-capacity to supply information, was limited.

Criticism of these gatekeepers occurred for their power on what information they distributed, a thing the internet changed. We now live in the Information Age, which has come on the back of the internet. This has opened up the distribution points of information ?¢‚Ǩ‚Äú access to information is no longer dependent on the mass media – and availability is no longer confined by physical constraints (the internet has potentially an infinite storage). No longer do the traditional gatekeepers control the flow of and access to information.

The consequence of losing the old gatekeepers is that information is now plenty and consumers face information overload. Due to an environment of limited distribution in the Industrial Age, the mass media by consequence filtered information for consumers. Now with infinite information available, consumers are finding it difficult to filter information: identifying quality information was a role that wasn’t totally appreciated before. The cost of consuming quality information is being bourne by the consumer, as they are forced to identify it themselves.

The attention economy has risen as an important factor, as consumers only have limited attention to view the now unlimited amount of information. The new scarce commodity is no longer information, but the attention of consumers. Demand for information is now limited – people only have so much time to sift through the abundance of information.

Why search and aggregation services are valuable to consumers
The 1990s saw the development of search engines as a solution to this problem. Search engines have now become the new gatekeepers of information, as they provide consumers a means of filtering information and returning only what is relevant. Search works as a filtering system because consumers identify what they want, and a search engine simply needs to associate pre-indexed information that best matches that request. Innovation in search is about increasing the relevance of information to that request.

Other technologies have also been developed, which allow for the filtering of information. "Aggregation" services similar in role to what newspapers for example traditionally did – help pull together information from disparate sources. The value of these aggregation services, is in the value of relevant information to the consumer – a similar scenario to search. Search engines help consumers pull information; aggregation services push information, with what they think a consumer would want.

With both these "pull" and "push" technologies, consumers are reverting back to an industrial age concept of trust in brands. Google’s search for example, has impressive technology. But so do its rivals. User experience aside, the biggest advantage Google has is that users trust its brand more for the quality of information provided. Users trust Google to provide more relevant information – relevance is quality. The same reason why consumers used to trust a broadsheet newspaper over a student newspaper, is in the credibility of that brand to provide quality. The brand was and still is a way for consumers to filter information – or rather, trust others to provide information they can rely on.

The future

If you are looking to start a new search engine that will beat Google: don’t. If you think you have a brand new of way identifying quality information: spend your efforts there. Remember the reason why search, RSS, and profiling aggregators are important to consumers, is because they help them find the best quality information, in the shortest period of time.

You can’t beat Google at search. And if you do, by the time you do, it will be a waste of time because the industry will have evolved. Innovation on the internet and the Information Age, is about understanding why the traditional gate keepers were so effective in what they did. The last decade has seen some clever innovation – but we still have a long way to go.

Too many chiefs, not enough Indians

Nik, the CEO of Omnidrive, says something that been on my mind as well – everyone saying they “support” OpenID but they only want to be providors, not consumers. I think he makes a fair call saying that if you are going to brand yourself with OpenID, that you meet his five requirements. They are a little too idealistic, but I certainly agree that your application becomes a full consumer of OpenID is a bare minimum.

Russia

My first experience with a Russian, was on the flight from Dubai to Moscow (connection from Tehran). She was my flight neighbour – a twenty-something singer-musician. She didn?Ǭ¥t say much, although she was taking a swig of her bottle of vodka every five minutes. I presumed she had a serious flight phobia.

Turns out there was no phobia. And that bottle of Vodka was three-quarters finished by the time the plane took off. Apparently, she drinks a bottle a day (I always thought it was an apple a day that kept the doctor away?). And what I thought was a quiet neighbour scared of flying, turned out to be a sarcastic alcoholic who started getting a little too friendly.
Half-way into the flight I decided to put her in her place and end the advances, which made the rest of the flight fairly awkward. But nevertheless, I had just had my first Russian experience: alcoholic, sexual, and incredibly sarcastic. Was this a premonition of the days to come?

A bear. Near the river in St Petersburg

Walking across, I saw this fuzzy bit of hair. I thought to myself “that’s a damn big dog”. I walk to the other side of the wall, and it turns out it was a bear.

I had an awesome time in Russia. I spent about ten days there, however to say Moscow and St Petersburg are Russia, is like saying London and Paris are Europe. Needless to say though, alcohol, sexuality, and every type of Russian stereotype you can think of, did feature prominently on my trip.

Russia and alcohol
The contrast between Iran and Russia with regards to alcohol is as startling as say, Osama being elected as the new Pope of the Roman Catholic Church. You can get a bottle of Vodka for practically the same price as a bottle of water. But it is not the cost of alcohol that left me shocked – it was the amount of alcohol Russians drink that shocked me.
An example was on my last day in Moscow, I was on the metro coming from the suburbs with my two buddies from the hostel. On the train, we started talking to some girls next to us – because they looked like they were not a day over 14, and drinking what looked like alcohol (one was also a dead-set ringer for Avril Lavinge). Turns out they were 18, but even so, the legal drinking age is a few years more. It was about 2pm on a Sunday afternoon, and these girls were drinking a 12 per cent alcoholic energy drink. They were also a bit pissed. And no one on the train found this unusual at all.
The streets are filled with people drinking in the middle of the day, like a woman causally having lunch with a beer. It’s not just excessive alcohol, but just a lot of alcohol! Kiosks in Moscow that dot the streets with food and beverages, are also stocked up with alcohol. Alcohol is literally everywhere. Even a seasoned Aussie drinker like me couldn’t help but feel uncomfortable at the drinking culture.

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St Petersburg is architectually awesome

Russia and sexuality and beauty
When someone would ask me what my ideal woman looked like, I never knew how to answer that question. In the 30 minute metro ride I had when I first arrived from Moscow airport to the hostel, I saw 28 versions of my ideal woman. Enough said!

I met this dip shit Australian at a nightclub, who been working in the security business for the last eight months. I felt like hitting him because it was such an imbecile, but he did say something that sums it up pretty well (when asked why he likes it so much here): “Because the women are beautiful and the men are ugly”. A little harsh, but so true. Women go out of way to display their femininity – which I suppose is something all European women do, but Russians definitely are a cut above the rest. In boiling hot Iran, all women have to cover themselves completely. In barely five degrees Russia, women are wearing skirts that you see on a beach party. And apparently they even do it in the middle of winter at minus twenty degrees weather.

As for sex: how many times do you go to a nightclub and there are professional strippers on the bar? This one club in St Petersburg, I would be dancing, and then there would be an announcement every hour or so. Everyone would gather around an elevated stage with a pole, and watch the five minute routine – men and women alike watching a strip tease dance that repeatedly left my tongue on the ground. When finished, the disco music would start again, and everyone would resume to dancing as if nothing had just happened.

Women in Russia - freezing, and yet they still wear short skirts

I asked a member of the female species why do they wear such short skirts, in such cold weather. Answer: “Because it looks good”.

Russia and stereotypes
Forget the stereotypes, this is what I experienced: Russians are educated, cultured, and will go out of their way to help a stranger. My shock of this last fact was exacerbated by how I was not expecting people in large cities like Moscow and St Petersburg to be friendly – which are the largest and fourth-largest cities in Europe respectively. A typical example, was when I caught the train to the city centre from the airport. Moscow’s metro is the best in the world – which also means it is bloody complicated, especially for someone still learning the Cyrillic alphabet. I got off the wrong metro station, and asked a man where the hell was I. In his limited English he told me to follow him and walked me to the next station where I was meant to be connecting at – a five minute walk completely out of his way. This is but one example where people went out of their way to help me.

They say that when in Rome, you do as the Romans do. And it?Ǭ¥s not just for experiencing the culture, but for safety reasons as well – you don’t want to stand out as a tourist. But stand out I did. My drunk neighbour on the flight had also made the comment that I looked different. Apparently “American”. Still trying to work that one out.
Fortunately, I didn’t have any problems even though I had foreigner written on my forehead and I did have a bit of fun with it. But the homogeneity of the population is amazing, and people that look different like the people from southern Russia, are constantly pulled up by police on the street for passport and bag checks.

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Can you see it, on my forehead? It says “I am a foreigner”

Actually, a slight tangent: in St Petersburg, a university professor from Cambridge university, tried to pick me up. To cut a long story short, I had coffee with him, whilst he attempted to impress me, and invite me back to his apartment for drinks and to see his jacuzzi. The reason I am mentioning this story, is not because of how disgusted I was that a lonely gay man twice my age tried to pick me up, but rather to vent my anger with him because this is my blog and I’ll cry if I want to.
During our discussion, he complained how the Russian academic staff at the university were all straight, which was a weird thing as everyone back in England in his architecture department is gay. And how it bothered him, how they treated him differently. I completely agreed with him, and how bad it is homophobia is so strong here – ever since I got over my schoolboy homophobia, I have always supported gay rights. But then he said two things that made me angry.
The first thing was how he likes St Petersburg because everyone here is white. He doesn’t like the coloured people he has to mix with in London.
The second thing, was how impressive the architecture is in the city. What makes it so impressive, is that the Tsars had millions of slaves dying to make this grand buildings – something a western European ruler would never be able to get away with. And that is what makes them even more special.
So here I am with one of Europe’s leading academics (apparently), sympathising with his inequality, and yet he goes on in the same breath to say how good it is to be in a city full of white people which was built by generations of rulers who had no regards for human life. I felt like getting up and yelling at this maggot to go shove a communist sickle up his arse.
However gay rights are something Russians are not exactly supportive. I had a few conversations with some girls on several issues, and it is interesting to see how traditional minded they are. Point being, how socially conservative the youth are ( just imagine what the adults are like!).

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This church in Moscow took 44 years to build, and was later knocked down by Stalin. They recently rebuilt it, using modern technology, in just four years. The interior is amazing.

Then again, the gay thing might have something to do with the fact that there are ten million more women than men in Russia! Settle down though boys – some statistics a friend of mine dug up show that the numbers don?Ǭ¥t actually skew until after age 33 – there are actually slightly more men than women before that. Yet the numbers do imply the affects of three of Russia’s biggest problems: AIDS, Booze, and Chechnya.

There were an estimated 860,000 people living with HIV at the end of 2003 in Russia, and this figure looks set to increase. It has the highest HIV epidemic in all of Europe, although numbers do appear to be falling. The affects of such a disease, especially with an aging population though – is bad.
Alcohol is a serious problem. When Mikhail Gorbachev’s anti-alcohol campaign was launched in 1985, within two years life expectancy for men increased 3.2 years for women and 1.4 for women. Those improvements have since been lost, but it does tell a sad story. Russia, with a population of 143.2 million, has 2.37 million registered alcoholics. The average quantity of pure alcohol per person is 8.7 litres. That’s like everyone in Russia drinking 53 ml of Vodka a day.

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Moscows metro: deep, man.

Chechnya is a topic sensitive to Russians. Especially given the terrorist attacks on ordinary Russians by Chechnya’s militants wanting independence. Vladimir Putin recently said he wishes all Chechnyans are flushed down the toilet “We?¢‚Ǩ‚Ñ¢re going to chase terrorists everywhere. If we track them down in a loo, we will rub them out in the loo, too.” This is the head of the government saying this. The fact he can get away with it – and also the reason why he said it – shows how much the war has affected the Russian psyche.
However the wars no doubt have had an impact on population numbers, especially with men who are the ones sent to war. Between 150,000 and 160,000 people have died in the two wars in Chechnya, according to Taus Djabrailov, the head of Chechnya’s interim parliament. The toll includes federal troops, rebel fighters, and civilians who died or went missing during both the first conflict (1994 to 1996) and the second, which began in 1999 and continues today. (Source). And lets not forget Afghanistan, which was Russia’s ‘Vietnam’ in the 1980s.

Mr Putin is also busy putting together the third Russian empire. People don?Ǭ¥t know who it is that controls their country, but as my friend Vera said, one more step backwards and she is out of there. Russia is a country in transformation. A strong man is needed to reorganise a country of its size, seeing as its democratic institutions have grown organically from a sick Soviet Empire (or rather, they have been re-branded as democratic). But a dictator is a dictator. The English-press in Russia seem to buzz with theories on how Putin will hold onto power, as he is legally restricted to two presidential terms. Given the nature of power, it is fairly obvious he will not let go the reigns of the government. However his decision on how he does this, will have huge ramifications on a country struggling to recreate itself.

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The double-headed imperial eagle, and the communist star – symbols of two former Russian empires. Wonder what Vladimir is cooking up for his new empire

Economically, the country is not healthy, reliant on oil and arms sales. Apparently 80 per cent of the country’s wealth flows into Moscow – which really makes me wonder what life must be like in the rest of Russia. One set of figures about wages I heard were as such: the average monthly salary is 9000 rubles. A doctor is payed about 3000 by the State (however his secretary probably gets 5000, because she is privately employed). Nine-thousand rubles is about 415 Australian dollars, 315 US dollars, or 260 Euros.

Those numbers are low, but it doesn?Ǭ¥t shock me that much, because I have been to a lot of poor countries where the wages are very similar. But what shocked me was that these are figures for people in Moscow. And in Moscow, I found the prices to be comparable to Sydney and New York. In Australia, the average monthly salary is $4,300 – ten times more than what I was told as the average salary in Russia/Moscow.

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You throw money over your shoulder for luck, and the babushkas behind you desperately catch the money. There are more billionaires in Moscow than in any other city in the world, and as you can see, plenty of poverty as well

Russia has one of the worlds richest histories, although a very brutal one as well. A visit to European St Petersburg makes you stagger at the cultural richness of the country, and Moscow’s fast paced, hedonistic consumer lifestyle, makes your head spin to think this was once the communist nerve centre of the world (communism? where?!)

If Russia’s leading two cities have transformed that much in 15 years, I am looking forward to see what it will become in another 15.

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