Why Facebook Will Do Search And Why Google Needs Social

Mark Zuckerberg posted a picture of himself in front of his computer, and an eagle-eyed blogger noticed that his version of Facebook sports a larger-than-usual search box. An unintended leak or not, Facebook competing in search is only a matter of time just as, in retrospect, it was inevitable that Google would integrate social elements deeper into its main product.

This is why.

It wouldn’t be a revelation to say that no large-scale ad delivery system is perfect.

Reason one is that, at any given moment, only a fraction of the exposed audience is actively on the market for the benefit that the advertised product delivers.  Yes, I actually might be interested in switching to your cell phone plan, but talk to me in 15 months when my contract is about to expire. This is the efficiency problem of advertising: in order to reach the few people who are interested right now, the delivery systems by necessity overshoot and spam the crap bejesus out of thousands who promptly tune out.

Reason two is that few would admit they believe advertising. People consider the source and recognize the nature of the claims as self-serving and discount them accordingly.  This is the effectiveness problem. The advertisers’ typical recourse is to bypass rational thought altogether and to beat the claim into the audience’s subconscious through incessant repetition.

(Now is a good time to note that we are are talking only about ad delivery here. Effectiveness of creative is a different topic.)

That’s what the main media planning principles of “reach” and “frequency” are about — solving for efficiency and effectiveness. In the picture above, this situation is illustrated by the undesirable lower-left quadrant that says “You Are Here.” You are there because most of the existing large ad delivery systems are both inefficient and ineffective.

Except for two.

Google with all its imperfections is the most efficient way to deliver ads — only people who need something now would actively look for something and see an ad for it.

And even though it took them awhile, Facebook is figuring out that they have this whole effectiveness thing down. According to many studies (the one below, and others, including my own), friends are the most trusted source of product information. Facebook has hundreds of millions of friends, and Facebook also sells advertising, and now Facebook is putting two and two together to make advertising that comes from friends.

But Google and Facebook each solve only half of the efficiency/effectiveness problem.  The impeccably timed search ads Google delivers are still self-serving. And the perfectly trustworthy social ads on Facebook still show up at the wrong time. In other words,  Facebook and Google each have what the other doesn’t, and they are going to fight for it.

On Google’s end, this is what the whole Search Plus Your World business is about — fixing the source problem.  That’s why the push to get people to +1 stuff, and then connect people into social graphs via Gmail and Google+, and then use +1ers as implicit endorsers. Not, you might notice, unlike Facebook.

And Facebook needs to fix its targeting. “Interests” have an expiry date and “likes” of pop-culture icons are only tangential indicators of predisposition towards, say, vacuum cleaners. Facebook does have several more precise mechanisms for intent targeting useful for certain categories (a recent change of status to “engaged” is a reliable signal for the wedding industry), but by and large nothing as precise of an intent indicator as search.

Hence the picture of Zuck in front of an extra-large search box.

Internal Thinking

Une vidéo servant d’exemple et destinée au live, construite sur le base de l’outil vvvv servant pour la synthèse de vidéo en temps réel. Un travail conçu et généré également avec Blender, MeshLab et Fraps. Le tout sur la musique de Clark “Growls Garden”. A découvrir dans la suite.



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Previously on Fubiz

Thinking about copycat? / Touché coulé!

THE ORIGINAL?
Berlitz Language School – 2006
Source : Cannes SILVER Lion, Cresta Awards Winner, Eurobest Silver, One Show Silver & New York Festivals Gold Worldmedal!
Agency : Bates United Oslo (Norway)
LESS ORIGINAL :
Tarek Noor TV “new satellite channel” – 2009
Source : BlogAnubis,  AdNation Middle East, Facebook…
Agency : Tarek Noor Cairo (Egypt)
La copie honteuse de l’année! Et comme si ça ne suffisait pas, ils ont copié une série de films primés en plus de celui-ci. Pour voir tout ça, cliquez-ici! Difficile de plaider la coïncidence…
5 people like this post.

How Much Would You Pay For Free?

How much would you pay to use Twitter? How about Facebook? Gmail? Would answering a simple “How much would you pay for it?” question help us to understand how the valuable is perceived differently from the disposable?

I was going through a credit card bill and among the usual sad thoughts the activity conjures there was one relevant to this blog.

There are a lot of online services out there, and I’m actively using a fraction of them. I pay for some, but many are free. The question is, why am I paying for the ones that are on my bill even though there are free alternatives, and which free ones would I pay for if the free ride abruptly stopped, and it was either-or?

I’ve never bought a ringtone and am not planning to, but I think I’ve spent around $100 on similarly ethereal Second Life objects over a few months.

I pay for Skype and for Rebtel (very convenient VoIP for cell phones), two cell phones, but (or, perhaps, hence) no land line.

I used to pay for Angie’s List but don’t have any need for it after moving to a managed building. (Besides, their monthly subscription model feels wrong — I don’t need to fix my plumbing every month. Plus you need to call them during office hours to cancel.) I would pay for Craigslist if I had to. I’d rather pay on demand than monthly. I think between $5 and $10 for a week of usage is about right. I would also pay the same amount for a “pro” version with better search, even if a free standard version was available.

I gladly pay for Flickr not because I can’t live without the service, but because, like many Mac users, I think that the attention that goes into designing a flawless experience deserves to be rewarded. I’m sure a part of the fee pays for the “pro” next to my name, too.

To be visually entertained, I pay for the basic cable, broadband, and a Netflix-like subscription from Blockbuster. I’d drop Blockbuster and pay the $20 monthly bucks for a Hulu-like service with a decent library of streaming movies and shows. I have never bought a movie DVD from a store or a TV show from iTunes. (Do people with large DVD collections watch each movie at least four times to justify the $20 instead of renting it at $5 each time? I know it makes sense to buy DVDs for kids since they can be entertained by re-runs forever.)

Out all the free stuff I use, I’d pay for Google if it suddenly made all of its services paid. Depending on the price structure, I’d rather be paying for a subscription to everything than piece-meal for each service. If I had to pick piece-meal, I’d pay for search, Gmail, maps and reader. I am among those Blogger users who’ve been demanding a paid service for years in exchange for a hint of customer service and advanced features. (To its credit, Blogger has significantly improved over time.)

I would pay for email in general if it suddenly stopped being a free utility. Unfortunately, there isn’t much room for price elasticity there.

I wouldn’t pay for Facebook or MySpace (especially if I were already paying for email), but probably would for LinkedIn. Probably not, or very little each time I need something, for YouTube or other similar sites. Not for Twitter or any of the instant messengers (assuming I had a cellphone or email).

I’d pay for an RSS reader (Google’s, especially if it had an offline client), but don’t know whether and how much I’d pay for individual blog subscriptions. Maybe it would be a buck for any ten — so, $10 for any combination of 100 feeds a month, pro-rated weekly, with the money distributed back to publishers by the aggregating service. If it were a universal model, I wonder which blogs would end up with most subscribers.

There is, of course, a difference between paying for a service in the sense of a general set of functionalities (email, social networking, photo-sharing) and a paying to a particular provider for the service (Gmail, Facebook, Flickr).

Which sets of functions that are free do you think are worth paying for? I included a quick poll below; if you are on RSS and don’t see it, please take a minute to come over and submit your answer.

P.S. There’s a lot of talk and an entire upcoming book about the business model of free. I recommend F’d Companies, a book about similar models that tanked during the dot-com boom, as a fair-time reading.

Username Squatting

As if it weren’t enough that buying a domain name requires all sorts of linguistic acrobatics, creating an account with popular social networks and other online utilities is starting to be taxing as well. Pages at myspace.com/McDonald’s, GAP, Applebee’s, IBM, Xerox, Microsoft, Sony, iPhone and many others have little to do with the respective brands apart from the page owners’ usernames. Common dictionary words are long gone as well; here’s, for example “/sex” on MySpace and YouTube.

You don’t hear about username squatting much, although there was a blog post last year comparing twittersquatting to the domain name rush of the 1990s. Why is it important? Three reasons.

1. Convenience. MySpace.com/myblendtec is less obvious than /blendtec, which is taken by someone other than the socially successful blender maker.
2. Danger of misrepresentation. It is easy to recognize /billgates and /microsoft as obvious parodies, but hijacking an online identity of someone less famous can’t be too hard.
3. Search traffic. Perhaps not a threat to bigger companies, but part of the search traffic for brands with limited online presence and for common words can be derailed to pages on MySpace, videos on YouTube (and stories on Digg, but that’s a different story). I don’t have a good “bad” example off the top of my head, but see how CBS YouTube channel ranks way above many of the network affiliates’ sites. And if you search for “tequila”, MySpace celeb Tila Tequila comes up above many businesses with the word in their names.

Bookmarkable Advertising

Last week’s news about Rolling Stone and Men’s Health running promos where readers are invited to snap images of ads and send them in reminded me of a draft that I’ve been kicking around for a few months about bookmarkable advertising. It’s not finished or polished but, I hope, useful for something.

Also, between now and when I had first started writing this, I heard about a “grabbable” banner format offered by one of the large networks. I couldn’t find any references or samples, but if you know something, please drop me a line.

Oh, and I’m on vacation this week away from all things broadband so this blog is on autopilot.

People bookmark ads. They circle ads with red markers, cut them out, paste them on the fridge, carry them inside wallets, give ads away, put ads on the walls. Given the opportunity and a good reason, people archive, manage and retrieve ads. Naturally, it is in advertisers’ best interests to encourage this behavior because bookmarking gives the ad another chance to do its job, which is why we often see the dotted “cut here” lines around ads.


The “dotted line and scissors” bookmarking/clipping metaphor has been extended online (source).

As a theoretical side note, “bookmarking” is used loosely here and refers to any activity of storing an ad for future reference as close to its original form as possible (writing information down doesn’t count). Some activities are physical (clipping, putting away, sorting, retrieving), others are also mental (remembering where to look, creating an arrangement system, evaluating).

WHAT ADS GET BOOKMARKED?

In order to be bookmarked, an ad needs to satisfy two conditions:

1. It needs to carry a promise of some future value. Coupons are an obvious example of an ad type that gets bookmarked often. Look at how people manage their coupon collections and you will find that the complexity of some systems is as mind-boggling as Yu-Gi-Oh. Which is why there are coupon organizers for sale (do they offer coupons for coupon organizers?).

The value doesn’t have to be monetary, however; it can also be informational or social. For example, a classified ad for a plumber whose services you know you’ll need when you move in two months is more likely to be saved than an ad for a wedding dress you see a week after the event.

2. It needs to be easy to bookmark.

The problem with advertising on the web is that while the digital medium itself provides almost unlimited mechanisms for archiving, manipulating and retrieving the information, most online ads have all the fleeting properties of a TV commercial.

Let’s look at other media.

BOOKMARKING OFFLINE

Print ads are bookmarked more than any other type in part because print in general is easy to archive. You open a newspaper, see an ad you like, and you can either put the entire issue away, tear the page out, or cut out one particular ad. Print is also easy to annotate — you just write on it.

Magazine ads are bookmarked too, although often for a different reason — they are cheap and pretty dorm room decorations.


Magazine ads are bookmarked and used as wall decorations. See annotations to the original image on Flickr.

Billboards and TV ads are usually bookmarked through a secondary medium: billboards are photographed, TV commercials are DVRed. Some are saved for their social value (look what a cool billboard I have found); other purposes might have nothing to do with the ad itself and are just part of the scenery. (Billboards can also be bookmarked with cell-phones if they sport an advanced bar code.)


Some outdoor ads are designed to be bookmarked.

Other offline media are even harder to bookmark. External devices have been invented for bookmarking radio songs (and many have flopped); you don’t hear a lot about people bookmarking radio ads. Locations can be bookmarked through some kind of mechanism that involves a cell phone, such as mobile post-its by Siemens.

Generally, the more bookmarking options for content a particular medium provides, the easier it is to save advertising messages. Not so online.

THE WEB

Historically, the web medium has offered multiple ways of easy content archival, from copy/pasting to complex social bookmarking tools. Online ads, however, are not trivial to bookmark at all. Not only are they largely impossible to store for any extended period of time, but they are also difficult to go back to within the same user session. In 2003, Jakob Nielsen wrote:

Many a time we’ve been working on a site and noticed an interesting, relevant advertisement. This typically happens in the dead time between clicking a link to follow some item in depth and getting a refreshed page. So, we make a mental note to return and follow up on the ad. Oops, we can’t. When we go back, there is a different advertisement, breaking one of the oldest principles of interaction design: stability.

Technically, there are ways to save an online ad. You can make a screenshot of the entire page and then cut out the relevant parts, or you can save the page on your hard drive, but I haven’t met many people collecting online ads this way so that they can reference their sales message at a later date.

How to save an individual ad depends on the ad’s type and your tech savvy.

Sites that compile online coupons usually offer some way to save and group them within the site itself. These coupons are also designed to be be printed out. I don’t think I’ve ever seen a coupon-type ad on a third-party site that could be clipped from the site itself.

Image ads can be saved as regular images but will lose any link information, and the context they provide is often insufficient for the ad to be used effectively at a later date.

Flash ads, including video, can be downloaded using browser plug-ins with the link information retained, but these tools are not widespread.

Text link units are not really ads but rather pointers to ads.

Finally, text ads can be archived, arranged and retrieved with third-party tools such as del.icio.us. This method presents a different problem — that of click fraud. Someone can easily collect a dozen of links from AdSense ads on this site and click AdLab (and perhaps the advertisers) out of this particular business. Also, after the links expire, the bookmarks will not be pointing anywhere because the ads are not archived.

WHAT IS TO BE DONE?

Advertisers could equip their ad units with a clipping mechanism — a small scissor icon that, when clicked, would produce a printer-friendly stand-alone version of the ad with extended information for future reference.

Online ad networks could offer a repository of all offers they serve and a link that says “view more offers from this vendor” or “view similar offers”.

An ad repository could be offered by ad filtering services such as AdBlock Plus, which may work out well for all parties. (See? Ad filters may turn out to be a good thing.)

… to be continued

Abercrombie Behind Obama


Jeff Haynes / Reuters, USA Today

All these people in A&F behind Obama – not a product placement.

Which brings up an old question: what’s the effect of news photography on a brand?


“A Coke truck sits among the rubble after the collapse of the first World Trade Center Tower. Photo by Doug Kanter/AFP.” (source)


Source and context unknown, please let me know the correct credit.


Editorial pictures of celebrities holding Starbucks cups amounts to millions of dollars in free advertising (CityRag, 2005, Branding Cultures).

How to Select an SEO Company?

A work-related question that turned out trickier than it looked: where do you start searching for a company that provides search engine optimization services if you are not familiar with the SEO space?

Here are a few tips by Aaron Wall back from 2004 — search SEO forums, read ClickZ articles, get recommendations — but this is not very helpful for someone who has never been exposed to SEO before. You could probably try looking at the highest-ranking competitors then seeing if their names would come up on some SEO company’s client list, but again, this involves some understanding what to look for and I’d imagine this method is not horribly reliable either.

But then, how about typing “search engine optimization services” or a few similar combinations into Google and work your way from the top down? Doesn’t it make sense? Do companies that rank higher charge more? I see a few results that apparently have been pushed up by Google based on my Boston IP address – even better.

What do you think?

Block Twitter Madness Out of Your Life

Let me start by acknowledging that Twitter looks useful. I remain one of those who don’t get it (I tried), but there are many other things I don’t quite understand and in most cases my ignorance is due to my own limitations.

So, Twitter, it’s not you, it’s me. A few things have been bugging me about you ever since we met — readers are not sheep to be called followers — but really, you are cool. We’ll remain polite to each other even if entrenched in our respective worldviews. Who knows, maybe we’ll do business together one day.

What I can’t explain — nor calmly bear — is the nauseating giddiness that’s been bubbling in my RSS reader for the past year. Everywhere I clicked, it’s been twitter this, twitter that. High-school dramas over who tweeted what to whom. (Speaking of 2.0 dramas, here’s a great collection.) It was amusing for a couple of months, after which I hoped the spotlight would turn away. It never did, so I thought I’d do something about it myself. Now, everywhere I browse, the words “twitter” and its derivatives are replaced with what the whole thing really is – “madness”. All it took was a Greasemonkey Firefox extension and a slightly tweaked profanity filter.

It’s like one moment you have hundreds of canaries in your room, and then suddenly someone turns them all off.

It’s quieter, and everything makes a lot more sense, too.

The followers of GapingVoid’s author mourned his departure from madness in some 150 comments.

YouTube Advertising, Part II: The Last Frame

It’s been more than a year since the post about in-video banner ads, an idea that YouTube eventually implemented and that has become a standard offering on other video sites. Here’s one other thing they could try: ads on the interactive last frame that, on YouTube, promotes related videos.

Most of the existing video ad formats have their problems: pre-rolls are annoying, in-video banners are rarely relevant to the content, and post-rolls have nothing to click on. Last frames could work because they are not interruptive and offer users something to do after they are done with their primary activity — watching the video.

Earlier:
Idea: How to put ads into YouTube
Follow-up: Embedding Ads into YouTube Players

Advertising Space Innovation Needed

Considering how much the banner format has evolved over the past decade, it’s surprising how little innovation we see on the publishers’ side of the equation. For the most part, publishers treat their ad space as just that: a blank piece of real estate that they rent out. As in real estate, the neighborhood and the location is important, but a lot with extra features could command a higher price. To be fair, many publishers offer targeting capabilities that are much more advanced than in the past, although even with targeting the lowest common denominator is pretty low. And, to continue with the real estate metaphor, most of the lots for rent lack something as basic as a sewage hook-up.

The only two examples of ad spaces with extras I could think of are CNet and Facebook (but please drop a comment if I’m missing something).

Ad units throughout the CNet network (see this page, for example) come with “Ad Feedback” links to the unique feedback forms, although I don’t know if the feedback is for advertisers’ or CNet’s use.



The feedback link above an ad unit on a CNet site.



Ad feedback form on CNet.

[Update]: Adpinion and BrandJury are two start-ups pursuing the ad feedback idea (from the comments on Steve Rubel’s post on the subject a few weeks ago).

And Facebook aggregates all ads that share a common audience on Ad Board, a page you can reach by following the “More Ads” link under the ad.



Click the “More Ads” link on Facebook…


… to see more ads targeted at you.

Google has been offering a feature similar to Facebook’s Ad Board for a long time now: search for a popular product then click the More Sponsored Links link on the bottom of the AdWords column but it looks more like an afterthought than a feature intended to be actively used. I’d clean up the formatting and somehow display ads associated with similar queries: a search for “gaming laptop” produces a slightly different set of ads that could be combined with those for “laptop for games” on one classifieds-like page.

Google’s Sponsored Links pages even have a dedicated search feature.

A few other things on my wish list. None of them guarantee success, but then how are we going to know for sure if we don’t experiment?

1. Bookmarking. Jacob Nielsen wrote about it five years ago: “Why not make it possible for users to review ads after they rotate off the screen? If every site that featured rotating, dynamically generated ads simply offered a button at the ad location — “view last 10 ads here” — we predict that advertisement success rates would increase.”

2. Associate ad content with site content where possible. The CNet ad above for Sprint could come along with links to past tried it two year ago; I wonder how it went. [update: It died because advertisers didn’t want to take the risk, Engadget’s Peter Rojas explains.]

4. Sharing. Cutting out and sharing coupons is a well established behavior offline with barely any online analogs.

Earlier:
10 Tips for New Ad-Supported Ad Businesses

It’s Not a Bug, It’s a Feature

Does it count as engagement when people are blogging about your art dept’s Photoshopping blunders? Can you claim that these errors are in fact Easter Eggs?

Also:
Ads in Game Easter Eggs
Easter Eggs in Products

Bill Gates on LinkedIn

Bill Gates’s LinkedIn profile, via a story in NYTimes blog. A related thought: celebrity endorsements through social networking sites sound like an idea.

10 Tips For New Ad-Supported Web Businesses

So, you are launching a new web business and your main business model is selling advertising space, at least until your customers start paying up for your services. It’s likely that you will have to deal with an ad agency at some point, and here are some thoughts from the buying side of the table.

1. Demographics. Your site’s demographics (or, lovingly, the demo) is what you sell to the agency. Not features, not good design, not your management team. It’s the demo. Currently, there are two major ways to present a demo. One is through its descriptive characteristics: “our site is designed to attract people of such and such gender, age, occupation, geography.” The other way is through the audience’s collective behavior: “our site is for people who are in the market for computer peripherals”; “our site is for the die-hard ice-cream fans.”

There are other ways to describe your audience. Psychographic description (“our site is for very honest people”) is an interesting approach, but it is yet to be widely adopted.

If you don’t have a large audience already — large enough to register on Comscore’s radar — I think you are better off with pitching the behavioral traits of your audience. This will narrow the number of potential advertisers, but the advantages of advertising on your site and not someone else’s are more obvious, and you can command higher CPMs.

2. Build your site with advertisers in mind. Very often, site designers focus on user experience but forget that advertisers, too, are users who have their own goals and needs. (Oh, look, we have some space left here — let’s slap a placeholder for banners.) Audience planning should be among the first steps in designing an ad-supported site, not an afterthought. Generic media kits behind email forms frustrate media buyers who are juggling multiple plans under pressing deadlines. And if the ad unit placement is such that it doesn’t generate interactions similar to the rest of the campaign, your site will be “optimized” off the plan

3. On the other hand, don’t let the ad greed cripple your design. CPM ads tempt designers to add extra steps to even the simplest processes for the sake of page views. You’ll have to weigh the benefit of every extra page view against the risk of having the user leave the site in frustration to never come back.

4. Allow standard IAB ad formats on your site. You’ll never guess how much overhead goes into banner production, and budgets have their limits. Plus, resizing banners is no fun.

5. But custom high-engagement formats can sell for more. Think of Facebook that sells branded pages for $300K/3 months.

6. Allow enough technological wiggle room to accommodate for ad formats the demand for which may come up in the future. Yahoo bought eGroups email list service in 2000, it is ad-supported, but I think you still can’t target the banners by group categories, not to mention insertions at the individual group level. Also, create the most precise targeting mechanism possible — you’ll make more money. If you collect users’ age, gender and zip code during the sign-up process, there’s no reason why you can’t allow targeting by any combination of the three, at a premium.

7. Allow low-cost test drives. Agencies would love to be able to incorporate new interesting media into their plans, but they can’t sell them to their clients without solid numbers upfront. The only way to get solid numbers from a new medium is to test it at a cost that is not prohibitive.

8. You can’t overmeasure your audience. Offer metrics that go beyond the basics of impressions and clicks. CNet’s sites put a link to a feedback form under each banner (I wonder if they share results with the advertisers).

9. Make data PowerPoint-friendly. An intelligent good-looking graph goes a long way.

10. Media buying cycles are always longer than what you’d prefer them to be. At least online, media buying is rarely reactive — every new opportunity will be evaluated and filed in an appropriate folder to be pulled out at the beginning of the next cycle.

The Communist Manifesto of Chris Anderson

Deep under the layers of acquired historical meanings lies an often overlooked core of the economic theory that describes production of goods under public ownership, their free exchange, and their free consumption by all members of the society according to their needs.

This economic theory is communism, and the idea that Chris Anderson outlines in the latest Wired cover story and in his upcoming book is strikingly similar.

It is already remarkable how much vocabulary is shared between “socialism” and “social media”. One definition of socialism refers to a system under which “community members own all property, resources, and the means of production, and control the distribution of goods” (source), which also captures the spirit of economic relationships in most of the current social media environments. In his most recent book, The Long Tail, Anderson pays a fair amount of attention to those relationships, which are largely non-monetary in nature.

Anderson’s current argument is that under the rapid pace of modern technological progress, marginal production and distribution costs are trending towards zero (hence the article’s title “Free! Why $0.00 Is the Future of Business”) and so are the prices of goods and services.

The Wired article discusses those goods whose production and distribution is based on the rapidly cheapening web infrastructure, but in an earlier speech at last year’s Nokia World Anderson also touched upon an entirely different class of goods — the stuff you can touch, smell and sit on — and how 3D printing will drive the marginal costs of making the “real” merchandise also to zero (it’s around the 15th minute into the speech; Real Player).

(Long-time readers of this blog will remember a few thoughts on the role of advertising in the era of mass 3D printing.)

Anderson aptly called this new paradigm “freeconomics“, which, I guess, means the economics of communism without the political terror that accompanied nominally communist — but, in fact, barely socialist — regimes in the last century.

There are at least two answers to the question whether and how communism is compatible with capitalism. Marx would say that communism is the next logical step in civilization’s development that would replace capitalism (Marx would also add “violently”).

Much closer to Anderson’s are the ideas of Howard Sherman, a radical American economist who in conclusion to his 1969 paper “The Economics of Pure Communism” wrote:

“The economic arguments against communism were examined and found wanting. An economy of 70% or 80% free consumer goods seems possible–with little or no loss in perfotmance–in an easily foreseeable future. A gradual increase of the free goods sector, with careful attention to elasticities of demand, should make it possible to maintain equilibrium of supply and demand for all products, assuming present rates of productivity increase in the USA or USSR. Second, a gradual increase of free goods combined with continued wages to pay for the remaining priced (luxury) goods should present few new incentive problems. Third, with the use of accounting prices for free goods (derived from optimal programming processes), optimal planning can continue to function as well as under. socialism. Moreover, the planning can be centralized or decentralized as preferred, assuming the accounting prices are given to the managers as parameters. Finally, if economic performance is at least as good as in socialism, most of the arguments in favour of communism are non-economic–but these are beyond the scope of this article.”

Anderson concludes his article with “[…] a generation raised on the free Web is coming of age, and they will find entirely new ways to embrace waste, transforming the world in the process. Because free is what you want — and free, increasingly, is what you’re going to get.”

A quote from the original Manifesto would not be out of place here: “The feudal relations of property became no longer compatible with the already developed productive forces; they became so many fetters. They had to be burst asunder; they were burst asunder.”


The authors of this parody poster are not entirely inaccurate.

Bridging The Gap Between Online and Offline Shopping

A couple of years ago, I posted a small blurb on Fast Company’s blog about how customer expectations of offline retail are being shaped by their online shopping experiences. Last month, Business Week published an article pretty much to the same effect:

“The Internet hasn’t destroyed brick-and-mortar retailing, as many once feared. But has it ever changed consumer behavior. Across the U.S., stores are playing catch-up with shoppers habituated not only to the speed and convenience of purchasing online but also to the control it gives them.”

Here’s my in-store experience wish list:

1. Cross-selling of relevant and complementary products (if you like this, you will also like that and that)
2. Customer reviews. Somewhat counterintuitively, many product categories will benefit from negative reviews just as well as from the positive ones. Negative reviews help buyers overcome the “paradox of choice” and make up their mind faster instead of abandoning the purchase altogether. Plus, less post-purchase remorse and fewer returns. I would especially love a way to check GameSpot reviews before plunking another $50 for a game.
3. Online ordering + in-store pick-up.
4. Full product info look-up, including the manuals.
5. Bookmarking / “save for later” functionality.

Retailers gotta act quick if they want to have some control over the converging experiences. In a few years, people will be carrying web browsers in their pockets and won’t be needing all this retail innovation. Then they would go to Barnes & Noble to browse books and order the ones they like on Amazon right from the store.

On a related note, I really like the idea behind Target Lists.

10 Forces That Shape Headline Writing

I remembered a great quote from an old colleague of mine: “The web is the only medium in which you must create content which impresses machines.” This is especially true for headlines, and, increasingly, not only blog headlines. With online versions of traditional newspapers adding Digg Me buttons and incorporating automated contextual advertising and other technological novelties, the fine art of headline writing is under more and tighter constraints then ever before. Why and for what purpose are headlines written today?

  1. For others to read the article. That’s what headlines and titles (there’s a difference: headlines have verbs in them) have been invented for, after all: to attract readers’ attention to the content under them. A corollary: it also needs to attract readers’ attention when it is found out of its original context, for example, on someone else’s site.
  2. For others to notice it in the RSS reader (this was a topic of a separate post on RSS usability last year).
  3. For the author to like it. This is straightforward: you wouldn’t slap a subjectively ugly headline on your article (although in newspapers, copy editors often do) because you will be the one staring at it before anyone else sees it. And long after that, too.
  4. For the author to find it. How do you link back to your old posts relevant to the subject at hand? I use my own search box, and I got into the habit of using keywords that I’m likely to remember months or even years down the road.
  5. For others to find it. This is the non-profit SEO part where you write you headline so that it comes up for a search on the topic the article is about and helps someone out. This means two things: the article needs to be in the top search results, and the headline needs to prompt the click.
  6. For others to find it, for a different reason. In the for-profit world of SEO, you’ll write your headline so that it drives people who search for something that your site in general (but not necessarily each particular post) is promoting. The real trick here is to make the headline keyword-rich without it sounding artificial.
  7. For others to find it again, in their own information universe. It is terribly difficult to locate something you’ve bookmarked on del.icio.us when your bookmark count is in the thousands unless you know (or, importantly, you think you know) what the title was (Tags, while invented for a good purpose, are a mess).
  8. For the AdSense funnel, where the searcher clicks on your link in the search engine, arrives at your blog, looks around, and then bounces off through a well-targeted AdSense ad that is closer to what he’s been searching for in the first place.
  9. For AdSense robots to display the right ads. I don’t really know how much weight is assigned by the AdSense and other contextual ad algorithms to headlines, but it has to be significant since post titles are also page titles.
  10. To influence social forces on Digg and other similar content microcosms. There are plenty of guides on writing Diggable headlines out there.