Category: Data-Labor-Technology Stories

NFL ratings are down this season, but in-game ad revenue continues to grow year-over-year this season, according to new data from Standard Media Index. This season’s NFL revenue, from September to the end of November, is up 2 percent among all networks. There was one additional nationally aired linear TV game than in the same…
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The revolution in customer relationship marketing (CRM) continues with an exponential increase in the points of data available to leverage for marketing. Data is more robust, measurement tools are better, and channel capabilities are improving — not only on their own, but also in their ability to orchestrate marketing across channels. All of this is great for the industry, and it is driving investment in new marketing stacks.

When I talk about a marketing stack here, I don’t mean that
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“Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media. Today’s column is written by Trey Stephens, director of audience monetization at Acxiom. As 2017 comes to a close, it’s a great time for brands to assess ways to improve marketing strategy and better capitalize… Continue reading »

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Last week, Instagram added two features that will alter the content in users’ feeds: The ability to follow hashtags will surface hashtag-focused posts, and a “Recommended for you” section will show posts friends have liked.

When it comes to organic reach on the platform, both changes have favorable and unfortunate implications for brands, publishers and influencers. Here’s a rundown of them:

Clutter will increase
Both changes will add increased clutter to Instagram feeds, resulting in more content users must scroll through to reach all organic content. Ever since 2016, when Instagram switched from a chronological algorithm to one that tailors posts for each specific user, brands have to pay to be seen. Instagram said the new changes will not impact where paid ads will appear within user feeds, so posts that are not backed by a robust paid Instagram strategy are likely to be further buried.

The new hashtag-related posts will follow the platform’s same algorithm. If a user follows a certain hashtag, say “#photography,” Instagram will determine which posts to show the user in their feed based on the recency and quality of the posts. There is no limit on how many hashtag-related posts appear in a user’s feed, said an Instagram spokesperson.

Meanwhile, the new “Recommended for you” section, which will include three to five posts, will appear after a user has viewed all of their new posts. Consequently, users who open and close the app more often will see the “Recommended for you” section more frequently than those that do not.

More discoverability
Both updates could improve discoverability on the platform in general, even as organic posts fall to the bottom of feeds. Take the “Recommended for you” feature.

“If Instagram follows Facebook,” said Samantha Skey, president and chief revenue officer at SheKnows Media, “I imagine we’ll see plenty of sponsored posts, which could make for strong advertising as it captures a trusted referral.” For the time being, Instagram said it has no plans to place sponsored posts in the “Recommended for you” section.

With the new ability to follow hashtags, marketers can capitalize on trending conversations. For instance, on Dec. 15, Target used #StarWars in a post to appear next to other posts that reference the opening of “The Last Jedi” movie. Now, if a user follows #StarWars, they might see Target’s post in his or her feed.

“For years, brands that had a right to be seen alongside certain hashtag-related content were buried by the algorithm,” said Matt Lang, senior digital strategist at digital agency Rain. “But now, they’ll have a chance to surface.”

Letting users follow hashtags could also boost influencers, said Kamiu Lee, vp of business and development strategy at influencer platform Activate by Bloglovin’.

Hashtags could encourage publishers to create communities related to their own brands and hashtags that audiences will want to follow, said Amy Ramirez, Instagram manager at travel publisher Culture Trip.

Hashtag abuse
Marketers don’t need big follower counts or social media budgets to do so, so it’s likely that they will add more trending hashtags to their posts as well as to their Instagram Stories, which could lead to hashtag abuse.

“The real challenge on all of us [is] determining which hashtags are actually relevant and can add value to conversations,” said Amanda Peters, group strategy director at Wunderman.

Allie Arends, social media engagement supervisor at Space150, said brands and influencers will have to start strategizing about their organic Instagram content almost like they would an SEO strategy. “The image, copy and especially hashtag usages should serve a specific strategic purpose to maximize organic reach,” she said.

Still, there’s no guarantee brands’ and influencers’ hashtagged posts will appear in users’ feeds. Lang said advertisers shouldn’t be surprised if Instagram decides to enact another algorithm that prioritizes which posts get featured for a specific hashtag that is being followed.

Either way, advertisers look forward to seeing which hashtags users end up following. Scott Lindenbaum, evp and director of digital strategy at Deutsch, said this kind of personal interest data could help make ads more relevant.

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This ain’t your grandpa’s Walmart.

When Walmart paid $3 billion for Jet.com and its founder Marc Lore, the promise was that the entrepreneur would help the retailer appeal to new types of customers.

Here’s the next step in that evolution.

A new Walmart subsidiary, called Code Eight, has recently started testing a personal shopping service for “busy NYC moms,” according to multiple sources, with the goal of letting them get product recommendations and make purchases simply through text messaging.

The target customer of Code Eight is described in an online job listing as a “high net worth urban consumer” — translation: A rich city dweller — certainly not the historical sweet spot for Walmart’s main business.

Household items are delivered for free within 24 hours; other purchases are delivered within two business days. Returns are picked up for free at a customer’s apartment building or house.

Walmart’s startup incubator, Store No. 8, is also working on another under-the-radar project, dubbed Project Kepler. This effort aims to reimagine the in-store shopping experience with the help of technologies like computer vision.

Multiple people familiar with the project tell Recode that one goal of the initiative is the creation of physical stores that would operate without checkout lines or cashiers — in a similar fashion to Amazon’s futuristic Amazon Go store, which was announced a year ago but has yet to open to the public.

A Walmart spokesperson declined to comment.

Taken together, these Walmart initiatives mark a major leap in the vision for the type of businesses Walmart will operate, and customers it will serve, five or 10 years down the line. But since both business strategies are in early stages, there is no guarantee that either will develop into a long-term business or launch widely.

Walmart had previously announced that Rent the Runway co-founder Jennifer Fleiss is heading up Code Eight, but has revealed little to no details about the startup.

Recode has learned that Code Eight plans to eventually charge a membership fee, but current testers are using it for free. The personal-shopping service is currently focused on items in “health & beauty, household essentials and apparel/accessories” categories, according to a job listing. It’s not clear if the startup is sourcing this inventory from Walmart and its subsidiaries, or from outside retailers.

Code Eight has told early users that they can order products simply by texting a photo of it. They can also message with a general request for a type of product they need, and leave it up to the service to pick the specific item for them; customers fill out a survey upon joining that is supposed to help personalize their experience.

One source says that the Code Eight product has the appearance of an automated bot, but seems like a human is actually the one communicating on the other end of the message. That may change over time.

“[W]e set our sights on taking the lead in conversational commerce by leveraging machine learning, NLP, and personalization algorithms,” a Code Eight job listing reads. NLP refers to natural language processing — essentially, how a computer turns a human’s spoken or written request into instructions it can process.

The Project Kepler project focused on the future of in-store shopping is being led by Mike Hanrahan, the co-founder and former chief technology officer for Jet.com, multiple sources tell Recode. It is located in Hoboken, N.J., where Jet is based.

A Project Kepler job listing for a “computer vision engineer” says that the role will involve creating a “best-in-class consumer experience in the physical retail space.”

Amazon’s Go concept uses a combination of sensors and cameras to track what each store shopper takes off of shelves so it can automatically bill them for their purchase without their having to stop to pay on the way out. The store’s launch has been severely delayed, however, with reports that the technology did not work well when the store was crowded.

Walmart is envisioning a similar system that would potentially eliminate the need for cashiers in stores outfitted with the technology. Walmart has more than two million employees worldwide, many of whom work at checkout.

But it’s possible that the Project Kepler technology would be used in new types of store formats, rather than be retrofitted for existing stores. This project is just one of several across Walmart focused on what the retail store of the future should look like, according to a source.

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This article appears in the latest issue of Digiday magazine, a quarterly publication that is part of Digiday+. Members of Digiday+ get access to exclusive content, original research and member events throughout the year. Learn more here. 

David Pemsel, CEO of Guardian Media Group, is concerned about Facebook but bullish on the ability of philanthropic contributions to fund publishing. Below is our conversation, which has been lightly edited and condensed.

Your move to a more reader revenue-focused model has resulted in reader revenue overtaking advertising. What’s the future for that?
When we started this three-year plan, we recognized that advertising alone would not secure a sustainable business model. We looked at the binary decision of either putting up a paywall, which will inevitably impact reach, or going the advertising-only road and saw a third way in which we can still have reach but at the same time optimize reader loyalty globally and domestically.

Why not a paywall?
Well-intentioned people often tell me, “Just keep cutting costs, put up a paywall and the Guardian will be profitable.” But we have to remind people of the role the Guardian plays in the world. People are anxious about what the world is right now, and our unique ownership structure, which is totally independent and free of shareholders, means people trust our independence and want to support us to keep us as openly accessible as possible.

What are the cultural challenges in moving to more of a reader-revenue model?
We haven’t always legitimized genuine collaboration. There’s tension. When you’re trying to get to a sustainable outcome, a dynamic news agenda, with finite resources, you’re pivoting from an advertising-only to a reader-contributor strategy, there’s a lot of heat in the organization. You must deploy your most precious people in a strategic way, but give them autonomy to collaborate, debate and argue their way to an outcome.

What’s the opportunity in philanthropy?
There are some conventions derived from The New York Times that X percent of your regular readers are likely to become paying subscribers, and that’s your future business model. Over time, that will cap out. You’re then stuck with a finite number of paying subscribers. There are different groups of people who will subscribe digitally and others that contribute at an article level because they feel passionate about a subject. There is no ceiling on how far contributions can go.

What’s next for publishers’ relationship with Facebook and Google?
We have a close relationship with Google from [CEO] Sundar [Pichai] down. They recognize the role of quality news within their ecosystem. So we’ve collaborated a lot around video, VR funding, data analytics and engineering resources. It’s a valuable strategic relationship.

What about Facebook?
Facebook is a different picture. Our relationship with them is difficult because we’ve not found the strategic meeting point on which to collaborate. Eighteen months ago, they changed their algorithm, which showed their business model was derived on virality, not on the distribution of quality. We argue that quality, for societal reasons, as well as to derive ad revenue, should be part of their ecosystem. It’s not. We came out of Instant Articles because we didn’t want to provide our journalism in return for nothing. When you have algorithms that are fueling fake news and virality with no definition around what’s good or bad, how can the Guardian play a role within that ecosystem? The idea of what the Guardian does being starved of oxygen in those environments is not only damaging to our business model but damaging to everyone.

Should Google and Facebook be regulated?
Regulation ensures there isn’t negative impact from market dominance, which there is with those organizations, especially in advertising. But you can’t sound anti-platform or anti-digital or anti-Google or Facebook because it’s the future. News organizations have had this narrative of “it’s unfair, look what they’re doing.” But regulation needs to be used appropriately to ensure there is fairness.

You’ve described the digital ad model as broken. How would you describe it now?
The commoditization that’s come with everything being more machine-led has meant some clients have lost sense of how to build brand equity over time. There is nothing wrong with programmatic; it’s just the safeguards in that ecosystem need to be about total transparency. Some of those data points in media planning are completely opaque, and that still needs to be solved.

Who is responsible for addressing ad fraud?
There is a client at the top of this food chain. It’s their money. They can’t allow their money to be disseminated in places they don’t understand, so it’s beholden on clients being much clearer on where their money is deployed and for agencies to be more clear and transparent about where that money is going.

What’s a big trend you see in 2018?
Voice is increasingly on our radar. The translation of the written word into devices like Google Home or Alexa is starting to take off. What is the role of news organizations in a voice-activated search world with no interface? What’s the user experience? How do you get brand recognition? If you say, “Good morning, Alexa or Home,” how can you be reassured that the Guardian is the first thing that comes up in the news category? I love that challenge.

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Harford and Uber CEO Dara Khosrowshahi worked closely together at Expedia.

Uber is filling another key role in its executive ranks just as the year turns. The ride-hail company has hired former Orbitz CEO Barney Harford to be its first-ever chief operating officer.

Harford, who has been learning the ropes at Uber as an adviser since October, worked closely with Uber CEO Dara Khosrowshahi at Expedia. Before becoming CEO of Orbitz — which Expedia later acquired — Harford led Expedia’s push into Asia while Khosrowshahi was CEO. He begin his official work as COO on Jan. 2.

His appointment comes as Uber embarks on an important year. Coming off a year wracked with public scandal, Khosrowshahi is under a great deal of pressure to turn the company around in 2018. Adding to that, the long-time travel executive has his sights set on taking the company public in 2019.

Harford joins a growing C-suite. In October, Khosrowshahi appointed former Pepsi executive Tony West to be Uber’s chief legal officer. The next priority for the company is to fill the CFO role.

“I have never met a stronger operator or a more thoughtful strategist than Barney,” Khosrowshahi wrote. “He is able to go deep on key aspects of a business while never losing sight of the big strategic picture. He loves engaging with operations, marketing, product, and engineering teams around hard problems, and is passionate about using technology to transform the world.”

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This week we are seeing some innovative product launches, powerful collaborations and lots of career moves.
MarTech in Motion
Digimind announces its Social Wall
The social listening analytics company adds a data visualization presentation tool. Its first-to-market offering will allow brands and agencies to display simple, up-to-the-minute social listening analytics metrics and more.

CliqStudios.com selects Visual IQ’s marketing intelligence platform
The seller of custom kitchen candid
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On stage at Edinburgh’s Leith Theatre one evening last week, the Scottish stand-up comedian Vladimir McTavish was playing his part in funding the rise of an alternative UK news media.

McTavish, a popular act on the Edinburgh Fringe, was part of the bill at the Festive Ferret Fundraiser, an event generating income for the investigative journalism website the Ferret, which launched two years ago and is already having significant impact on Scottish politics and society.

Backed by nearly 700 paying subscribers, who have input on the subjects that the site’s journalists probe, the Ferret went undercover to expose a neo-Nazi backed group, Scottish Dawn; it revealed how Donald Trump received a £110,000 hand-out from Scottish taxpayers; it disclosed how Police Scotland extracted data from 36,000 private mobile phones; and it ran a ten-story series on the potential impact of fracking.

Nearly 400 miles away another member of the new publishing breed, the Bristol Cable, lays out its investigative reporting on a sharp website, and on the 36 pages of a monthly magazine produced on high-quality paper stock and distributed throughout the city. The Bristol Cable is the product of an 1,800-strong co-operative who contribute an average £2.70-a-month and are invited to monthly meetings around Bristol to discuss the progress of the three-year-old project and where it should be directing its editorial resources.

The Cable’s impact on Bristol life has been considerable, affecting council policy on housing developments and helping to persuade Bristol University to stop investing in fossil fuels. It also uncovered the use by local police of eavesdropping IMSI-catcher devices used to intercept mobile phone messages, prompting a national news story. Operating out of an old factory building (now a community project space called ‘The People’s Republic of Stokes Croft’), it is also backed by the Chicago-based Reva & David Logan Foundation, a philanthropic trust which gives grants to social justice and investigative journalism projects.

Its various income streams, including five pages of print ads sourced by Ethical Media Sales & Marketing, an agency dedicated to social justice, allow the Bristol Cable to sustain the equivalent of six full-time jobs across its team of editorial ‘co-ordinators’ and to pay its large pool of ‘contributors’ for their work on articles. The team has won a reputation for its data journalism.

But projects as ambitious as the Ferret and the Bristol Cable are isolated examples in the landscape of UK news media.

As we near the end of 2017, the overwhelming majority of news produced in the UK – including that on social media – is still the output of organisations founded before the digital revolution. The emergence of digital-native news brands has been limited in a market where audience loyalties to public broadcasters and well-established newspapers run deep.

In the United States, venture capitalists and legacy media companies have poured money into new digital news initiatives which have become part of popular culture, from trailblazers such as the Drudge Report and Slate to the likes of Vox and Mic. Some, such as HuffPost and BuzzFeed, are now major international news operations.

But the economic signals for digital news media in general have not been good. BuzzFeed has this month made major job cuts, including to its UK newsroom. Its founder, Jonah Peretti, previously a big supporter of Facebook as a distribution platform, has complained bitterly of the social media giant’s failure to share its advertising revenues with companies that provide it with content. The female-focused publisher Refinery29 last week became the latest in a long line of digital publishers to lay off staff this year.

In such a climate, projects like the Ferret and the Bristol Cable – and other UK operations that choose to emulate them – face a challenging future. But both have been careful to limit their dependency on commercial backing, in fact, neither publisher carries digital advertising.

“We had to do something that made us different, more credible, more transparent….,” explains Rob Edwards, one of the founders of the Ferret. “We had long discussions and we decided we didn’t want to use ads, we wanted to raise money by subscriptions and grants.”

Lorna Stephenson, a member of the editorial team at the Bristol Cable, says that digital ad revenues have fallen so low that “there’s almost no point” in the project even looking for clients. Furthermore, the project has an “advertising charter which is voted on and agreed by members and is quite strict”, taking business only from “local and ethical businesses”. So the site is ad-free.

The Bristol Cable launched in both digital and print form in October 2014 after a series of meetings attended by journalists and other interested parties. “People liked the idea of co-creation of the media and they liked the idea of it being independent,” Stephenson says.

The motivation for the Ferret, which was first mooted in 2012, was to create a platform for the kind of probing, in-depth reporting that the founders felt was in demise. “We were very conscious that, with the malaise that’s causing the decline of the mainstream media, investigative journalism was suffering,” Edwards says. “We all felt very strongly that a modern democracy like Scotland was incomplete without proper investigative journalism to hold power to account.”

The Ferret is run by a board of five journalists (Edwards is also the environment editor of the Sunday Herald, a Glasgow-based national Scottish paper) and four ‘reader’ board members. As well as having no advertising, it opted for a co-operative model “to show we were not-for-profit and were working together and that we were not run by some distant corporation or some media mogul”.

It publishes an annual report of its finances and editorial record. The latest records show that it has published over 330 stories and now has a base of 6,000 people signed up to receive push notifications of latest articles.

Its subscriber base – paying £3-a-month for access to a website that allows three articles free per month – is currently insufficient to sustain full-time employment of journalists or an office (the Ferret’s team mostly communicate via an online chat group). Contributors are paid £110-a-day for their journalism.

Edwards says that the Ferret is anticipating new income from grants. It already has a €50,000 grant from Google’s Digital News Initiative which funds the Ferret Fact Service, compiled by Alastair Brian. The service, which typically analyses the veracity of claims made by Scottish politicians and pundits, is also published in the Daily Record newspaper.

The Ferret might be an alternative approach to producing news but Edwards says that it is not intended to undermine existing media. It has partnered on stories with many news outlets, including the Guardian, the Times and the BBC. And it recently co-ordinated a complaint by 23 journalists from different news outlets over the Scottish Government’s failings in responding to Freedom of Information (FoI) requests.

What marks the Ferret out is its openness, publishing its FoI documents and other material, provided it doesn’t reveal confidential sources. “We try to be as transparent as possible and give readers all the tools they need to make up their own minds about what we are writing about,” says Edwards. “It’s all about trying to re-establish trust with readers.”

Unlike other websites that emerged in Scotland around the time of its 2014 independence referendum – such as Bella Caledonia and Common Space – the Ferret is studiously non-partisan. “None of our journalist directors are members of any political party and we don’t do opinion or editorialising,” says Edwards. “We just look for fact-based investigative reporting.”

The climate for digital news publishers might be a harsh one, but the Ferret, with its mission of “nosing up the trousers of power”, is convinced by the evidence of its first two years that it has a viable future. “We were embarking on something that none of us had ever done before,” Edwards points out. “We have written hundreds of stories, broken dozens of exclusives, we are talked about and we are gradually raising our income to a point where we can become a sustainable operation.”

The Bristol Cable is now a fixture of the local media scene, alongside the 85-year-old Bristol Post newspaper and other outlets. Its stories evoke the campaigning spirit of the lively West Country city but Stephenson believes that its ground-breaking model is one that could be adopted elsewhere in the UK, citing Manchester, Leeds and Brighton as examples. “Bristol is a creative place but there are other very vibrant cities where you could definitely do something like this,” she says.

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The May deadline to comply with Europe’s General Data Protection Regulation (GDPR) is swiftly approaching, and ad tech and security startups are forming a new industry: privacy tech. Companies like PageFair, Evidon, Prifender, Tealium and Segment hope to capitalize with GDPR compliance solutions for brands, publishers and even other ad tech vendors. The International Association… Continue reading »

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