This is from a recent article. FB is "in the process of" slashing "organic page reach" down to 1 or 2 percent. Used to be 16%. Is this good or bad from a user perspective? Bad for marketers if you are short on budget, because you now have to pay to be visible. For users, I would say it doesn’t really matter because at the end of the day you’re just seeing ads, paid or unpaid. It doesn’t mean your friend’s organic posts that you really care about are being pushed out or anything. It can possibly even bring discipline into the FB ecosystem because if you look at the distinction made between free publicity and paid advertising in traditional media, this makes perfect sense. Means if you want to have free publicity in the Internet space you can’t just have a toppage and expect people to share your page. You have to be really interesting and meaningful. This will put pressure on businesses to be relevant to the society – a trend we have been seeing as Marketing 3.0. FB spokesman: Like many mediums, if businesses want to make sure that people see their content, the best strategy is, and always has been, paid advertising,"
I think this is generally true. It’s true not just for FB but for any other content platform services such as search engines and SNS. Of course, users still need to continue to monitor and critique their activities because that is a feedback for them to build better services. But I think overall there is synergy an positive engagement between users, advertisers and the platform.
This chart really is the essence of a mutually beneficial relationship between user and advertiser.
Two-sided markets are economic platforms having two distinct user groups that provide each other with network benefits. Alternative to this is a paid subscription model where you get an ads-free experience if you pay. Some people say platforms are getting data for free and they are making money from it. It’s important to understand that users are getting user experience benefits. And also the larger economic impact on the nation’s entire economy. Not a wrong thing to make money because without that funding, you can’t build this system.
I want to say that this is a different issue because sometimes people conflate the issue of ads poisoning your organic user experience with the effect of personalized experience having a negative experience on civic discussions and other noteworthy news.
The negative effect of personalization on civic discussions and access to diverse point of views occurs when the organic content is too relevant for you. At the end of the day, people won’t confuse ads with organic content. Because as I said, it’s usually very easy to distinguish between ads and organic content on a search engine or a social media. People are not that stupid. It is the excess of relevance that negatively affects getting diverse views on a topic or the chance of serendipity to stumble upon new things.
You can get a non-personalized experience. Some of this is about non-personalized ads. You can use tools. Upworthy is a website for viral content that uses catchy headlines to promote socially important news from a liberal perspective. But doing this too much is going to the television model that Yochai Benkler of Harvard Law School calls the industrialized information society. You actually get more degenerate content if you pursue non-personalization in a two-sided market because you cater to the mass. Cable is different because it is a paid model. Users can promote a cable-like business model by subscription. A note about Upworthy. It has been said that Upworthy had unusually viral posts in November. Eli Pariser actually stated that he will make it less sensational. Upworthy is also a curation site. Other websites with more original content did not suffer as much.
O’Reilly draws an analogy to the “cognitive surplus” in the transaction of information.
Local exchange trading system
All of this sharing activity, though, often begins with a conversation about safety. How do I know an Airbnb guest won’t ransack my apartment? Is it guaranteed that a Getaround user will return my car? If I lend my parking spot, is the space renter going to leave it vacant when I need it? Or when will be that inevitable day when something goes wrong? Safety and trustworthiness, as it appears, are still issues in the world of collaborative consumption, but we’re moving towards a model that favors reputation: A reputation economy, if you will.
http://techcrunch.com/2011/05/09/airbnb-social-connections/ Airbnb Social Connections allow you to hook up the service to your social graph via Facebook Connect. Click one button, opt-in, and you’re good to go. In the listings for cities around the world you’ll now see an avatar if a Facebook friend of yours is friends with the host or has reviewed the host. It’s absolutely brilliant. And it goes even farther. Say you don’t necessarily care if someone you know is connected to the host, what if you just care that you have something in common? Like say, you have the same alma mater? Airbnb Social Connections surface that information too! Naturally, you can turn this filter off at any point to return regular Airbnb results. And it’s very easy to disable the feature in your account settings page for those paranoid about Facebook knowing too much about you. But Airbnb takes your privacy very seriously. As they note on their site: Privacy is Airbnb’s priority: personal and private information are protected at all times. Social Connections are only displayed to those already in your social network. Turn this feature on or off at anytime with a single click. “This has been one of our most requested features, particularly for people that want to have something in common with the people they are staying with,” co-founder Brian Chesky tells us. “Social Connections helps you find places to stay with mutual friends, people from your school or university, or hosts that your friends stayed with and recommend,” he continues. しかし、AirBnBでは、これまでに1000万人以上の人が利用して来ていることを思えば、起こっている事件は信じられないくらい少数だ。その理由としては、AirBnBが単なるマーケットプレースだけではなくソーシャルな側面も持ち、貸す側だけでなく借りる側も評価される「相互信用」のコミュニティだ、ということも大きい。しかも、貸す側も借りる側も、FacebookやLinkedInに自分のプロファイルをリンクすることが推奨され、さらに写真付きのIDをスキャンして本人確認をするシステムもある。今は希望者のみだが、例えば貸す側は本人確認ができた人にのみ貸す、といったこともできる。汚したままで出て行った借り手が、それをレビューに書かれてしまっているのも見た。「またAirBnBを使いたい」と思ったら、きれいに借りないといけない。
TrustCloud is an online tool that aggregates peoples’ online social and transactional data, crunches it into a TrustScore and creates dynamic TrustCards that people can embed on their social networks. People use TrustCloud to establish their reputation on their social networks and peer-to-peer buying, selling, sharing and lending platforms. “Part of the score relates to the consistency with which people use social networks, how frequently they transact via peer-to-peer marketplaces, and what their “star-ratings” are on sites like eBay.” Blogger Paul Smith explains: “They break it down into three layers: verification, behavior, and transaction. “The verification layer includes email, physical address and SMS verification. The behavior layer looks at who you are across social networks in an interesting way … The transaction layer looks at your ratings on sites such as eBay, Trustcloud’s algorithms sifting out the gamed ratings.”
http://www.creditcards.com/credit-card-news/qa-jeff-stibel-dun-brandstreet-business-score-1278.php D&B is a more serious, commercial information and business intelligence company.
Maybe privacy IS an evolving concept. Look at the evolution of “safety” in regards to cars. Or how people reacted to mobile phones in mid-90’s. Let’s look at the overall benefit to the society. Do you want to go back?
Reputation economy kofujii20140426
“Trust”, the Underlying Element that
Makes the Networked Information
- The Role of Social Media in the Evolution from
Share Economy to Reputation Economy -
PHP INSTITUTE, TOKYO
Facebook is Ending the Free Ride, March 19th, 2014
Is this good or bad?
“Ultimately, what’s good for people
on Facebook is good for the
businesses that use Facebook to
reach and engage them.”
Facebook for Business News, December 5th, 2013
Relevance drives traffic
that drives data.
Data drives both
relevance and ads.
But platforms have little
incentive to poison
content) with ads -
because if they do, users
Relevance Usefulness Authenticity Credibility
Platforms need trust, whatever the approach.
Without traffic, there
is no data.
Without data, there
is no business.
TRUST is crucial for the ecosystem to function
2-sided Market of the
Networked Information Economy
Platforms are disincentivized from
breaking the trust with users.
Nevertheless, monitoring their activity
to maintain the trust is important.
The web strives to be trusted.
But what about the
That’s a slightly different issue from ads.
The web can be free of ads’ influence but
still have the filter bubble problem.
The REAL filter bubble
problem is this.
Not the ads.
It’s each user’
reach outside the
Things you can do, tools you can use to
break the bubble:
•Turn off cookies
•Erase web history
•Tweak your preferences
Which do you prefer?
But all in all, benefits of social media
(seemingly) outweigh the costs
Meet new people
• Definition: the free time that people have on their hands to
engage in collaborative activities, specially as applies to web
“The ability of the
worlds’ population to
and collaborate on
large, global projects. “
- Clay Shirky
Digital technology + human generosity + more free time =
collective creation to improve the world for civic purposes.
We just talked about transaction
of information in web2.0.
Now let’s talk about transaction of
things and services
Definition - ”sharing economy” Wikipedia
“a socio-economic system built around the sharing of
human and physical assets. It includes the shared creation,
production, distribution, trade and consumption of goods
and services by different people and organizations. These
systems take a variety of forms, often leveraging information
technology to empower individuals, corporations, non-
profits and government with information that enables
distribution, sharing and reuse of excess capacity in goods
“The Clothesline Paradox”
“If you put your clothes in the dryer, the energy you
use is measured and counted, but if you hang them
on the clothesline to be dried by the sun, the energy
saved disappears from our accounting”.
Reputation economy is
bigger than what appears
on your accounting book.
Category -”sharing economy” Wikipedia
• Bike sharing
• Book swapping
• Car sharing
• Club theory
• Peer-to-peer renting
• Product service system
• Seed swap
• Share taxi
• Time banks
• Virtual currency
• Crowd funding
• Garden sharing
• Home exchange
• Fractional ownership
• Peer-to-peer lending
Common premise-”sharing economy” Wikipedia
•Unused value is wasted value
•Access not ownership
•Transparent and open data
Trust is important for the share economy
because safety of transaction, experience,
and asset rely on trust.
But how do you
You are more likely to trust someone if:
• You have mutual friends
• You share something in common –
alma mater, hobby etc
• You know more about each other’s
past and present activities
These information are now available on
social media - if willing to share.
“ TrustCloud provides a tool to build and maintain portable
Trust between strangers and sharing sites, simplifying and
improving the Sharing Economy experience and shaping its
The notion of connecting trustworthy strangers is an
untapped market. Social, mobile and location
technologies are coming together to make efficiency
and trust. Technology creates the social glue for trust
to form between strangers.
Rachel Botsman, Wired 2011”
Reputation is quickly becoming an asset to
leverage and maintain.
The rise of the
Imagine a world where banks take into account your online
reputation alongside traditional credit ratings to determine your
loan; where headhunters hire you based on the expertise you've
demonstrated on online forums such as Quora; where your status
from renting a house through Airbnb helps you become a trusted
car renter on WhipCar; where your feedback on eBay can be used to
get a head-start selling on Etsy; where traditional business cards
are replaced by profiles of your digital trustworthiness, updated in
real-time. Where reputation data becomes the window into how we
behave, what motivates us, how our peers view us and ultimately
whether we can or can't be trusted.
WELCOME TO THE REPUTATION ECONOMY
September 2012 Issue
From Credit to Credibility
“The biggest shift is from credit to credibility. It's
not just about quantitative scores. It's about the
qualitative. Is this a good person to do business
“Our data sources have to be broader than trade
activities. We are working with Twitter, Facebook,
foursquare and LinkedIn to get access to all kinds
of unique information. What are people tweeting
about a business? Are there positive reviews on
Yelp? That gives us a crowdsourced angle to
Jeff Stibel, CEO,
Dun & Bradstreet Credibility Corp.
November 19, 2012 interview - creditcard.com