NSA and Big Data Collaborating and Quid Pro Quo-ing

Big DataLast week after the Snowden-NSA spying revelations I asked the question, Big Data vs. NSA PRISM Snooping: Is There a Difference? Some people said I was nuts or stupid because the differences are “obvious.”

Paraphrasing, their arguments went: online and offline data collection for marketing purposes is relatively harmless because it’s just about ad targeting, whereas the NSA snooping is evil because of Big Brother and totalitarian government scenarios.

But those dismissals are too facile.

Over the past week I’ve also seen lots of discussion among career marketers about whether or not the online ad industry is somehow morally the same as or has any “culpability” in the NSA controversy. There are plenty of denials and “no not at all” statements going around.

I previously argued that there were strong parallels conceptually:

In the case of NSA PRISM, the agency is accused of capturing huge volumes of consumer online activity without their knowledge or consent. The government, in the wake of the revelations, said that there are safeguards built into the system and privacy is protected. Effectively the government is saying “trust us,” we’re not really doing anything improper.

With marketing-related “big data” it’s much the same. Huge volumes of consumer behavior and transaction data are being compiled, analyzed and combined. Most of the data mining from online and offline sources are being captured entirely behind the scenes without consumer awareness or (informed) consent.

A ZDNet article quotes Digital Net Agency Chief Strategy Officer Skip Graham, who says that online advertising has “helped pave the way” for PRISM by “‘softening’ consumer viewpoints on privacy issues — effectively making the public feel complacent about handing over personal information online.”

While I believe there’s truth to this theory, I’m not sure that the public is “complacent” about online privacy. There’s lots of concern about targeting, tracking and online privacy. See, for example:

And today there was a related Bloomberg article: U.S. Agencies Said to Swap Data With Thousands of Firms. The article says there’s extensive, voluntary cooperation between US companies and government security agencies. Sometimes the companies benefit directly from that cooperation in a kind of “quid pro quo” way:

Thousands of technology, finance and manufacturing companies are working closely with U.S. national security agencies, providing sensitive information and in return receiving benefits that include access to classified intelligence, four people familiar with the process said.

It seems that there isn’t the “bright line” between government surveillance and corporate behavior that many people want to assert. The truth is more complex.

I agree that the online advertising industry, with its ad-related “surveillance” of consumer behavior has “softened” attitudes among consumers toward what the NSA is doing. I also believe there isn’t much of a defensible distinction between NSA data gathering and online “big data,” both are happening without consumer knowledge or consent (by design).

Even if consumers are upset and angry about the NSA revelations, we’ve all become so dependent upon the online tools and services implicated in the surveillance scandal (e.g., email, search, social nets, smartphones) that it’s almost impossible to imagine living without them now. For those who are upset, it’s not clear what to do — hence the sense of consumer “complacency” perhaps.

Seemingly the only real way to “fight back” (beyond political activism) is to opt-out of online activity and go back to an “analog” lifestyle. Few people are willing or able to do that.

1 Comments »

Report: YP Fourth Largest Mobile Ad Network Globally

yp logoData aggregator eMarketer has put together a new set of digital and mobile advertising revenue estimates. Perhaps surprising to some will be the fact that YP shows up as the number four network on the global list — meaning that according to eMarketer there are only three other companies in the world with more mobile ad revenue.

Those companies are Google, Facebook and Pandora. IDC had a similar finding: that YP was ahead of everyone other than Google (and Facebook). For unknown reasons, that part of IDC’s recent mobile ad revenue report didn’t get much exposure.

mobile ad revenues

According to the eMarketer estimate, YP had $250 million in mobile ad revenue in 2012 and is expected to have $380 million this year. Actually YP itself said it had $350 million in mobile revenue in 2012.

Because YP doesn’t directly sell mobile advertising at this point these figures reflect impressions, clicks and calls attributed to mobile devices. But that’s also true of mobile ad revenues for Facebook and Twitter in large measure as well.

Screen Shot 2013-06-13 at 10.40.38 AM

Google is by far the dominant mobile advertising company. This year eMarketer says that Google will capture 55% of all mobile ad revenue worldwide. That’s an incredible thing if true. And Enhanced Campaigns will only help further the company’s mobile revenue growth.

4 Comments »

Plumber: 95% of My Leads Come from Yelp

Yelp logoI had to have a plumber out before getting a new dishwasher installed (to change a valve). Unlike some of my other recent experiences with SMBs, the guy was prompt in responding to my email and came out this morning.

I thanked him for being so prompt in getting back to me whereupon he said that he “loves technology.” That opened the door and I asked him a little bit about what he meant and where he was getting most of his business these days.

He was probably in his 30s and Hispanic. He told me that a couple of years ago he was advertising in print yellow pages: three different local books. He had a very small display ad for which he was paying roughly $1,500 per year (all three books). He said it didn’t bring him business and so he quit.

A friend did some optimization work for his one-page website and he says that he shows up in organic (my word) searches for plumber. I didn’t find him on the first page of Google in any of several plumbing related lookups I did however. He said he paid the guy “a few hundred dollars.”

The plumber is, by contrast, highly visible and well reviewed on Yelp. He’s got 62 reviews, most of which are five stars (well deserved). He said that one of his customers created an account for him a couple of years ago while he did a job at her house. He’s since claimed his profile and made changes to it.

He said that about 95% of his leads now come from that Yelp profile (he’s not an advertiser). I said that if he were a Yelp advertiser that he wouldn’t see a competitor on his profile page (not trying to sell him). He responded that his ratings were better than the advertiser-competitors that show up on his page so he wasn’t worried.

He also spoke about his reliance on his smartphone as a tool in the field and how he uses it to take payments (Square) and quickly respond to emails and make call backs.

This guy was smart and very good at what he does. He wasn’t very sophisticated about online advertising or marketing but he knew that Google mattered and Yelp really mattered and that a smartphone was now an essential tool.

21 Comments »

ComScore: 4 Billion Local Searches in May

Comscore released its search market share data today. The relationships among the top engines (Google, Bing, Yahoo) are mostly the same as the previous month. Year over year Yahoo is down, Bing is up and Google is basically flat.

Screen Shot 2013-06-12 at 4.13.18 PM

The following chart shows US search query volume data for May:

Screen Shot 2013-06-12 at 5.23.49 PM

Out of 20 billion queries overall we can estimate that roughly four billion had a local intent. This is using Google’s 20% “related to location” figure, which was a conservative estimate on its part. If we focus just on Google roughly 2.7 billion queries in the US in May carried a local intent.

I have previously argued that if we look at where conversions take place (90%+ offline) we could then impute a much higher local-intent percentage to PC-based search queries.

In mobile between 40% and 50% of search queries carry a local intent (using data from Google and Microsoft).

7 Comments »

Locu Partners with GoDaddy for SMB Menu, Services-Data Syndication

Locu began as restaurant menu management platform, syndicating menu items and prices to publishers, in direct competition with SinglePlatform. But the company is now pushing beyond restaurants into SMB services broadly. That makes it a competitor to Yext, Local Market Launch and others in the expanding local data syndication segment.

Earlier this week Locu announced a major reseller deal with GoDaddy.

Locu’s widget and syndication capabilities are now being “pre-installed on every new website that gets created for any service business,” explained Locu CEO Rene Reinsberg. In addition Locu’s premium offering will be sold by GoDaddy’s telephone sales team. The two will share revenues.

The graphic below shows how the Locu integration appears in the context of a non-restaurant website. The “services” tab is a Locu-hosted widget.

ScreeLocu data syndicationn Shot 2013-06-12 at 3.53.54 PM

Locu’s data syndication is being sold as a stand-alone product by GoDaddy and not as part of a bundle (at least initially). The offering is essentially a presence and visibility product (“publish once”) with some SEO juice.

SMB data, via Locu, are updated throughout a network of partners that now include Yelp, TripAdvisor, Foursquare, Facebook, Citysearch, Open Table and Time Out. Yext, Local Market Launch, Moment Feed and a few others are emphasizing enterprises with multiple locations. Locu says, in contrast, that it’s primarily focused on true independent businesses — the “mom and pops.”

The GoDaddy partnership could be extremely significant because its scale. A month ago GoDaddy told me it has 11 million domain customers on a global basis and 55 million domains under management. Company representatives explained that 70% of GoDaddy customers are SMBs.

GoDaddy’s telephone sales and support operation could dramatically accelerate Locu adoption and the latter’s revenue growth. Locu’s Reinsberg told me his company currently has 20,000 SMB (mostly restaurant) customers, a percentage of which use the company’s free offering.

GoDaddy is going to become a larger and larger presence in SMB marketing services. Former Yahoo Chief Product Officer Blake Irving is GoDaddy CEO. He just hired Elissa Murphy, who was Yahoo’s VP of Engineering for Cloud Services. There are also a number of local-industry veterans now at GoDaddy.

These people understand the opportunity. And the difference between GoDaddy and many others trying to provide SMB marketing services is that GoDaddy is largely working on upselling an existing customer base rather than acquiring new SMB customers. That’s a big advantage.

In addition to working with GoDaddy, Locu has a WordPress integration.

0 Comments »

Waze Probably Won’t Exist in Three Years

Waze logoIs Waze like YouTube or like Aardvark? My guess is that it’s more Aardvark than YouTube and that it won’t be around three years from now.

Waze could survive but that survival will depend on whether the Waze community keeps growing and whether Waze can make money. At a minimum Waze will help enrich Google Maps with social and traffic data and, in a best case scenario, Waze may become something of a map-laboratory for Google.

Make no mistake, however, Google primarily bought Waze to keep it away from others and to keep it from eventually growing into some sort of potential threat itself.

If I were Waze CEO Noam Bardin (and his board) I would have taken the money, reported to be more than $1 billion. But there should be no illusion that Google cares about nurturing the app. If Waze goes on to grow and succeed beyond expectations it may live on.

Aardvark was a very provocative and potentially promising Q&A startup that pre-dated Quora and could have been developed in very interesting ways that ultimately benefited Google. But after cashing out my suspicion is that the founders were less motivated and Google had bigger (social) ambitions. Aardvark was shuttered as a non-core project.

In the case of Waze, my guess is that Bardin himself will probably be gone in two years — the standard contractual period that key employees often stick around after an acquisition. Emotionally he will probably disengage much sooner than that.

In a blog post this morning formally announcing the acquisition, Google’s Brian McClendon said: “The Waze product development team will remain in Israel and operate separately for now.” For now means not indefinitely.

Bardin in his parallel post said:

Why not stay completely independent? We asked ourselves: “Will Waze still be a fun project to participate in, and a fun place to work, as a stand-alone public company?” Choosing the path of an IPO often shifts attention to bankers, lawyers and the happiness of Wall Street, and we decided we’d rather spend our time with you, the Waze community. Google is committed to help us achieve our common goal and provide us with the independence and resources we need to succeed. We evaluated many options and believe Google is the best partner for Waze, our map editors, area managers, champs and nearly 50 million Wazers globally.

An IPO would have been very challenging for Waze to pull off. And generating sufficient revenue and ongoing growth to please investors as a stand-alone company, even with 50 million users globally, would have been even tougher. Again, were I in Bardin’s billion dollar shoes I would have taken the money. I don’t blame him. Congratulations.

But there’s also something depressing and cynical about it all. Waze brought together a community of users whose efforts built a unique capability and approach to mapping. When Google eventually merges Waze into Maps or shutters it entirely those users will have hit a dead end.

It’s a common startup-gets-bought story: big company has high hopes and pledges ongoing commitment, but shutters product or asset not long after purchase. Think about Cisco and the Flip camera or HP and WebOS. There are many more such examples.

Maybe I’ll be proven wrong and Waze will grow and thrive as YouTube has, semi-autonomously from Google. I’d be very surprised. But maybe.

0 Comments »

Location Becomes App-Discovery Tool

iOS 7One of the novel uses of location in the forthcoming iOS 7, which will be available to the public in the fall, involves app discovery. Among other ways, users will be able to discover apps that are popular “near me.”

At first this might not appear to make a lot of sense; it has a seemingly “random” quality. Why would I want to know what apps strangers around me are using? However it starts to make lots of sense if you think about location as “context.”

While Apple’s Eddie Cue didn’t go into it the mechanics deeply, I assume that users opt-in to share their locations and Apple identifies the active apps around them. Cue used examples of apps at a baseball game or at a museum (e.g., the Louvre). By the same token the discovery of apps at a particular type of conference (or cultural event) might be extremely useful.

Apps near me

Indeed, apps popular “near me” could become one of the best ways to discover apps — provided that users are in a specific context (conference, concert, sporting event, school, etc.). People of similar interests and values tend to go to and visit the same places. The logic doesn’t hold as readily if you’re just out on the street, although there still might be some value there — i.e., being in a specific part of town.

It’s a very interesting “contextual” app discovery tool. It also seems unique. I’ll be eager to see how well it works.

3 Comments »

Google Launches G+ Dashboard for SMBs

Google+ iconToday Google said it was launching a Google+ Dashboard to help Google+ business users get more out of the service. The fact that it connects with other Google products (i.e., Maps and Search) and is a way for businesses to update their information across Google will be the thing that drives adoption.

It’s available for both SMBs and enterprises using Google+ but most of its features (other than the above) target SMBs. According to Google the new dashboard will enable the following:

– The ability to update your info (like website URLs, store hours and phone numbers) across Maps, Search and Google+ – all from the Overview tab.

–One place to monitor your Google+ notifications, assign page managers, share photos and videos – even start a Hangout with followers.

–At-a-glance access to [ ]  AdWords Express and Offers campaigns.

–Insights that include top searches for their business, top locations requesting driving directions, and performance data for their Google+ posts.

There’s a new dashboard icon in the upper left of the screen that gives page owners access to the new update and reporting features. Here are some example screens:

Google+ dashboard
Screenshot 2013-06-10 at 12.41.45 PM
Screenshot 2013-06-10 at 12.42.00 PM

Again, most of these features really target SMBs but the data update capabilities for Maps and Search will be welcome by SEOs across the board.

2 Comments »

Forget eCRM How about Just Answering the #$@! Phone

telephone-chThe list of software and marketing solutions being offered to small businesses continues to diversify and expand. Many of the tools and services are increasingly sophisticated or bring sophistication that would otherwise be inaccessible to the SMB market.

But here’s a novel idea: somebody needs to deliver a solution to the following very analog problems:

  • SMBs often don’t answer the phone
  • When messages are left they often don’t return phone calls

I’m in the market for a number of SMB-related services right now (landscape architect, pest control/window replacement). In a couple of these cases these are potentially thousands of dollars in new business waiting to find a vendor. I’ve left messages and send emails to multiple businesses and in only one case did I get a return phone call. Zero email responses.

It’s totally astounding.

Someone who can offer a service that does a better job of acknowledging consumer inquiries on behalf of the SMB and then helping the businesses follow up in a timely way would be a dramatic improvement over what exists today in many instances: silence/non-response.

I’m sure there are such services already out there but it’s astonishing to me that so many SMBs are so bad at the basics.

18 Comments »

Big Data vs. NSA PRISM Snooping: Is There a Difference?

Big DataQuestion: What’s the difference between marketing-related data mining of consumer behaviors (either online or in the “real world”) and the recent revelations about NSA domestic surveillance?  My guess is that it would be very challenging for you to distinguish the two.

In the case of NSA PRISM, the agency is accused of capturing huge volumes of consumer online activity without their knowledge or consent. The government, in the wake of the revelations, said that there are safeguards built into the system and privacy is protected. Effectively the government is saying “trust us,” we’re not really doing anything improper.

With marketing-related “big data” it’s much the same. Huge volumes of consumer behavior and transaction data are being compiled, analyzed and combined. Most of the data mining from online and offline sources are being captured entirely behind the scenes without consumer awareness or (informed) consent. (Clicking “accept” on legal boilerplate terms does not true consent make.)

Ad networks, marketers and related data vendors say that consumer privacy safeguards are built into the system. Effectively this is the same as the US government’s “trust us” statement. The online ad industry wants to “self-regulate” and doesn’t want burdensome disclosure and opt-in rules imposed on it by the FTC or US lawmakers.

While I certainly understand that position, self-regulation as it stands is insufficient to protect consumers from data abuses — especially by third parties who can access the data (e.g., the US).

Perhaps the one major difference between the two scenarios above is the “ad choices” button and the corresponding ability to opt out of behavioral targeting online. Indeed, you can’t opt-out of NSA snooping. But as a practical matter most consumers don’t really know about or understand “ad choices.”

As many surveys have shown, US consumers don’t like being profiled, tracked and targeted by marketers. They want relevant ads but don’t like the idea that their “movements” are being watched. This is also what made so many people uncomfortable following the NSA-Verizon data mining revelations.

As the NSA episode has shown, self-regulation and “trust us” assurances don’t adequately protect against abuse of the rules. In online advertising some mix of externally imposed requirements and self-regulation could work but self-regulation by itself won’t provide for sufficient consumer protection.

The NSA revelations are adding new urgency to Europe’s consumer privacy initiatives and will undoubtedly inform the online privacy debate in the US. But I’m curious to know what you think: has government spying become inextricably bound up with the discussion of online consumer privacy?

There may be more distinctions between big data collection and NSA surveillance but I’m not sure they’re particularly meaningful. I’d be interested to hear your thoughts and arguments — if you can formulate them — about why the two are or are not different.

7 Comments »