Tag Archives: Cambridge Analytica

The Great Ad Hack

great-hack-netflix-1564144457The other evening, I watched the Netflix documentary “The Great Hack.” It chronicles how big tech is taking our data, that we freely give away online, by both making money with our information and manipulating us.

The documentary makes one realize there’s a lot for us to be worried about.

 

Data Privacy

In an internet connected world, do we have any secrets? Everything about us is being stored, as we share our information via social networks, our credit card companies, our banks, our medical services – just about everyone we interact with online.

During the course of the documentary, professor David Carroll tries to see his data points as collected by Cambridge Analytica. Spoiler Alert: Professor Carroll wins a lengthy court case to obtain his data points. Cambridge Analytica never produces them but instead paid a fine and plead guilty for failing to do so. Not producing the data points was more important than revealing what they knew about Professor Carroll and giving the world an inside look at what they know about each of us.

Now Cambridge Analytica is liquidating to prevent anyone from ever seeing the data points they collected on anyone.

Our data privacy has always been important, but we’ve traded our privacy for speed and convenience in our internet connected world. The documentary points out that collecting and using our data points is a trillion dollar business that last year saw data surpass oil in value, making data the most valuable asset on earth.

The Persuadables

What Cambridge Analytica did was target people whose minds they felt they could change for the purposes of winning elections for their clients. In the military, such a tool is called Black Ops or False Flag tactics. Its psychological warfare used to induce confessions or reinforce attitudes and behaviors favorable to the user’s objectives.

Cambridge Analytica knew they didn’t need to change everyone’s mind, just a critical mass of people to achieve their client’s objectives.

Why did they do it? They wanted to make money, lots and lots and lots of money.

Advertising is Propaganda

The advertising “mad men” of Madison Avenue came from the propaganda operations of the United States military during World War Two. They took what they learned and applied it to selling cars, refrigerators, homes, soap etc. Great advertising seeks to persuade the reader, listener or viewer to buy a product or use a service.

Is it any surprise to anyone that as social media was born, these same methods would be applied to this platform, only on a level that was not possible through traditional media?

“These platforms that were created to connect us are now being weaponized,” says Carole Cadwalladr, investigative reporter for The Observer newspaper. “It’s impossible to know what is what, because nothing is as it seems,” she adds.

Tech Giants Crush Ad Market

Sara Fischer writes in Axios that the big tech companies like Facebook, Google and Amazon are consuming more advertising revenue than most other ad supported media combined. The reason? They have our data points and know how to effectively use them to get us to do what they want. You can read Sara’s full article HERE.

The eMarketer and Zenith Media data as graphed by Axios Visuals really shows where things are headed. (see below)

Screen Shot 2019-07-30 at 3.36.05 PM

Can Traditional Media Win?

The playing field today is so unlevel, it begs the question, if traditional media – newspapers, magazines, radio, television – can even have a fighting chance to win advertising dollars.

As a consumer, do you think you stand a chance to not be influenced by the tech giants when they are using your own information against you?

I encourage you to go deeper in this subject by both watching the Netflix documentary “The Great Hack” and reading Sara Fischer’s column “Tech Giants Still Crush the Ad Market Despite Looming Threats.”

Then I hope you will share your thoughts in the comments section of this blog article.

The future of our world is being shaped by the lack of data privacy.

I’d love to hear your thoughts.

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The Past is Not Prologue

200px-Duck-Rabbit_illusion

Thomas Kuhn used the duck-rabbit optical illusion, to demonstrate the way in which a paradigm shift could cause one to see the same information in an entirely different way.

One of my favorite weekly reads is Tim Moore’s “The Midweek Motivator.” You can sign-up for Tim’s weekly wisdom here.

This past week, Tim wrote about how people inside radio stations are asking him, “is radio failing?”

Now Tim’s a student of history, and he responded with “If you care about history (because the past is prologue) here’s the simple truth: some large groups are faced with debt loads that will either force bankruptcy or massive reorganization.”

Tim’s analysis about how America’s two largest broadcasters dug huge debt holes that can’t be re-filled by current operating revenues is spot-on. With radio, like a lot of businesses, it’s a matter of buying it right from the get-go. Start out upside down and most likely you won’t have a good day.

A system that is over-reliant on prediction through leverage, hence fragile to unforeseen “black swan” events, will eventually break into pieces.

-Nassim Taleb

Technology

Crystal balls are hard to come by but my tea leaves are leading me to believe that mass mediated communication is confronting more than just debt loads. What we are also dealing with is “paradigm paralysis.”

Radio’s leaders are holding onto a set of beliefs and views that radio is invincible.

Thomas Kuhn coined the term “paradigm shift” in his influential book “The Structure of Scientific Revolutions” in 1962. The business world adopted this terminology of “paradigm shift” to describe a profound change in a fundamental model.

Paradigm paralysis, on the other hand, is the inability or refusal to see beyond the current models of thinking.

Let Me Share a Story

John C. Harrison told this story at the First World Congress on Fluency Disorders held in Munich, Germany in 1994. See if you see a parallel to radio and the advent of satellites, streaming, podcasts, and smart speakers.

In the late 1940s a man walked into a laboratory of a major photographic

manufacturer in America to demonstrate a new photographic process.  But

he didn’t bring along a camera or film.  He brought along a red box with a

shiny steel plate, a charging device, a light bulb and a container of black

powder.  The picture he created was faint but discernible.

 

“But where’s the film?” they asked.  “Where’s the developer?  Where’s the

darkroom?  Why, that’s not really photography!”  And so, the company

passed up an opportunity to acquire the process for electrostatic

photography, or xerography…a process that has grown into a multi-billion

dollar industry.

 

Why did they pass up such a great opportunity?  Because the people who

saw the process were suffering from PARADIGM PARALYSIS.

 

Call Me an Outsider

Joel Barker wrote a book called “Paradigms: The Business of Discovering the Future.” Joel says that anyone who develops a new paradigm is often labeled an “outsider.”

Truthfully, when you’re running a cluster of radio stations, you don’t have time to think let alone take a step back and look at things with a fresh eye. I know. I’ve been there.

What teaching and now blogging have given me the opportunity to do is listen to everyone talk about the prevailing paradigm of radio broadcasting, in all of its subtleties and contrast it, to what I’m witnessing taking place before my eyes and ears by the end users of mass media.

And what I sense may be happening, is the radio industry being on the verge of a “black swan event.”

Black Swan Events

Credit card companies, who amass tons of data on their customers, still managed to miss the huge financial crises in housing back in 2007-2009.

When a tidal wave struck Japan’s Fukushima nuclear plant, the predictive model used to calculate how high the protective wall should be built, provided for a 20-foot wave. Yet, the wave that struck the plant was 24-feet high.

AIG, an insurance company in the business of predicting risk, missed seeing the financial collapse that bankrupted them.

Digital Advertising

Now Facebook is dealing with a black swan event over their data breach by Cambridge Analytica. Only this black swan could have major implications for how digital advertising is bought and sold in the future. The UK and Europe will put in place in May 2018 the “General Data Protection Regulation,” that will protect their citizens’ personal data or offending companies will suffer stiff penalties and fines.

So, what the Facebook story is doing, is making its two plus billion users aware of such massive collection and abuse of our data, but the fallout from this breach of trust will impact the ad supported business model of everyone in the digital advertising world.

30% of American Homes Don’t Have a Radio

Edison Research and Triton Digital’s annual “Infinite Dial” research just produced this astounding statistic. Close to a third of America’s homes no longer have a radio set in them.

Many people see smart speakers as the way back into the home for radio. But are they really?

Cable TV & Over-The-Air (OTA) TV

In the beginning, cable television was called “Community Antenna Television.” The concept was simple, TV stations were primarily located in big cities and the suburbs couldn’t receive those TV signals. So, antennas were placed high on mountains and cables would carry the signals received to homes in the valley.

TV operators loved this back then. It was like getting a power increase for no money.

Ah, but remember, there’s no such thing as a “free lunch.”

As the cable industry grew, channels such as ESPN and CNN and The Weather Channel were born and would compete with OTA TV.

Then along came streaming video.

Netflix

At the end of March 2017, one year ago, Netflix surpassed cable TV with its number of subscribers. And if you were to add up all the other streaming video services available to today’s television consumer, the lead over cable wouldn’t be a couple million viewers, but tens of millions.

What happens when a household begins subscribing to these advertising free channels? They find it almost impossible to return to ad supported ones.

Smart Speakers

Now we circle back to the smart speakers, Amazon’s, Google’s, Apple’s and Microsoft’s for starters. Instead of a handful of audio choices, the smart speaker delivers an almost infinite choice, and many, advertising-free.

When you put a prime rib steak next to hamburger and they are both the same price, which do you think most folks will choose?

The smart speaker lets you customize your favorites, much like the pre-sets on your car radio does. I’m willing to bet that the average consumer will end up with about 3 to 5 favorite audio streams they spend the bulk of their listening time with.

In fact, Nielsen’s Total Audience Report released in the second quarter of 2017 said that 87% of OTA radio listeners spent their listening time tuned to one of their three favorite radio stations. And 58% of that time was spent listening to just one station, what Nielsen calls their 1st Preference or P1 station.

Why would we expect this number to grow with the advent of smart speakers?

Goldstein’s Words

I think Steve Goldstein summed it up best in his recent blog when he wrote, “Commercial radio should put down the hammer and stop searching for nails. As they think beyond the stream, they will see how people are using audio media these days and create on-demand solutions in-sync with the vast opportunity of the exploding Smart Speaker universe. On Smart Speakers, the listeners are asking for it.”

 

 

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