Looking Back at a Decade That’s 99.44% Done

Remember 2010? For me that was a pretty important year. It was the year I sold my digital marketing business. While I would continue to actively work in the industry for another 3 years, for me things were never the same as they were in 2010. And – looking back – I realize that’s pretty well true for most of us. We were more innocent and more hopeful. We still believed that the Internet would be the solution, not the problem.

In 2010, two big trends were jointly reshaping our notions of being connected. Early in the year, former Morgan Stanley analyst Mary Meeker laid them out for us in her “State of the Internet” report. Back then, just three years after the introduction of the iPhone, internet usage from mobile devices hadn’t even reached double digits as a percentage of overall traffic. Meeker knew this was going to change, and quickly. She saw mobile adoption on track to be the steepest tech adoption curve in history. She was right. Today, over 60% of internet usage comes from a mobile device.

The other defining trend was social media. Even then, Facebook had about 600 million users, or just under 10% of the world’s population. When you had a platform that big – connecting that many people – you just knew the consequences will be significant. There were some pretty rosy predications for the impact of social media.

Of course, it’s the stuff you can’t predict that will bite you. Like I said, we were a little naïve.

One trend that Meeker didn’t predict was the nasty issue of data ownership. We were just starting to become aware of the looming spectre of privacy.

The biggest Internet related story of 2010 was WikiLeaks. In February, Julian Assange’s site started releasing 260,000 sensitive diplomatic cables sent to them by Chelsea Manning, a US soldier stationed in Iraq. According to the governments of the world, this was an illegal release of classified material, tantamount to an act of espionage. According to public opinion, this was shit finally rolling uphill. We revelled in the revelations. Wikileaks and Julian Assange was taking it to the man.

That budding sense of optimism continued throughout the year. By December of 2010, the Arab Spring had begun. This was our virtual vindication – the awesome power of social media was a blinding light to shine on the darkest nooks and crannies of despotism and tyranny. The digital future was clear and bright. We would triumph thanks to technology. The Internet had helped put Obama in the White House. It had toppled corrupt regimes.

A decade later, we’re shell shocked to discover that the Internet is the source of a whole new kind of corruption.

The rigidly digitized ideals of Zuckerberg, Page, Brin et al seemed to be a call to arms: transparency, the elimination of bureaucracy, a free and open friction-free digital market, the sharing economy, a vast social network that would connect humanity in ways never imagined, connected devices in our pockets – in 2010 all things seemed possible. And we were naïve enough to believe that those things would all be good and moral and in our best interests.

But soon, we were smelling the stench that came from Silicon Valley. Those ideals were subverted into an outright attack on our privacy. Democratic elections were sold to the highest bidder. Ideals evaporated under the pressure of profit margins and expanding power. Those impossibly bright, impossibly young billionaire CEO’s of ten years ago are now testifying in front of Congress. The corporate culture of many tech companies reeks like a frat house on Sunday morning.

Is there a lesson to be learned? I hope so. I think it’s this. Technology won’t do the heavy lifting for us. It is a tool that is subject to our own frailty. It amplifies what it is to be human. It won’t eliminate greed or corruption unless we continually steer it in that direction. 

And I use the term “we” deliberately. We have to hold tech companies to a higher standard. We have to be more discerning of what we agree to. We have to start demanding better treatment and not be willing to trade our rights away with the click of an accept button. 

A lot of what could have been slipped through our fingers in the last 10 years.  It shouldn’t have happened. Not on our watch.

The Gap Between People and Platforms

I read with interest fellow Spinner Dave Morgan’s column about how software is destroying advertising agencies, but not the need for them. I do want to chime in on what’s happening in advertising, but I need a little more time to think about it.

What did catch my eye was a comment at the end by Harvard Business School professor Alvin Silk: “You can eliminate the middleman, but not his/her function.”

I think Dave and Alvin have put their collective thumbs on something that extends beyond our industry: the growing gap between people and platforms. I’ll use my current industry as an example – travel. It’s something we all do so we can all relate to it.

Platforms and software have definitely eaten this industry. In terms of travel destination planning, the 800-pound Gorilla is TripAdvisor. It’s impossible to overstate its importance to operators and business owners.  TripAdvisor almost single-handedly ushered in an era of do-it-yourself travel planning. For any destination in the world, we can now find the restaurants, accommodations, tours and attractions that are the favorites of other travellers. It allows us to both discover and filter while planning our next trip, something that was impossible 20 years ago, before TripAdvisor came along.

But for all its benefits, TripAdvisor also leaves some gaps.

The biggest gap in travel is what I’ve heard called the “Other Five.” I live in Canada’s wine country (yes, there is such a thing). Visitors to our valley – the Okanagan – generally come with 5 wineries they have planned to visit. The chances are very good that those wineries were selected with the help of TripAdvisor. But while they’re visiting, they also visit the “other five” – 5 wineries they discovered once they got to the destination. These discoveries depend on more traditional means – either word of mouth or sheer serendipity. And it’s often one of these “other five” that provide the truly memorable and authentic experiences.

That’s the problem with platforms like TripAdvisor, which are based on general popularity and algorithms. Technically, platforms should help you discover the long tail, but they don’t. Everything automatically defaults to the head of the curve. It’s the Matthew Effect applied to travel – advantage accumulates to those already blessed. We all want to see the same things – up to a point.

But then we want to explore the “other five” and that’s where we find the gap between platforms and people. We have been trained by Google not to look beyond the first page of online results. It’s actually worse than that. We don’t typically scan beyond the top five. But – by the very nature of ratings-based algorithms – that is always where you’ll find the “other five.” They languish in the middle of the results, sometimes taking years to bump up even a few spots. It’s why there’s still a market – and a rapidly expanding one at that – for a tour guided by an actual human. Humans can think beyond an algorithm, asking questions about what you like and pulling from their own experience to make very targeted and empathetic suggestions.

The problem with platforms is their preoccupation with scale. They feel they have to be all things to all people. I’ll call it Unicornitis – the obsession with gaining a massive valuation. They approach every potential market focused on how many users they can capture. By doing so, they have to target the lowest common denominator. The web thrives on scale and popularity; the rich get richer and the poor get poorer. Yes, there are niche players out there, but they’re very hard to find. They are the “other five” of the Internet, sitting on the third page of Google results.

This has almost nothing to do with advertising, but I think it’s the same phenomenon at work. As we rely more on software, we gain a false confidence that it replaces human-powered expertise. It doesn’t. And a lot of things can slip through the gap that’s created.

 

Is Google Politically Biased?

As a company, the answer is almost assuredly yes.

But are the search results biased? That’s a much more nuanced question.

Sundar Pinchai testifying before congress

In trying to answer that question last week, Google CEO Sundar Pinchai tried to explain how Google’s algorithm works to Congress’s House Judiciary Committee (which kind of like God explaining how the universe works to my sock, but I digress). One of the catalysts for this latest appearance of a tech was another one of President Trump’s ranting tweets that intimated something was rotten in the Valley of the Silicon:

Google search results for ‘Trump News’ shows only the viewing/reporting of Fake New Media. In other words, they have it RIGGED, for me & others, so that almost all stories & news is BAD. Fake CNN is prominent. Republican/Conservative & Fair Media is shut out. Illegal? 96% of … results on ‘Trump News’ are from National Left-Wing Media, very dangerous. Google & others are suppressing voices of Conservatives and hiding information and news that is good. They are controlling what we can & cannot see. This is a very serious situation-will be addressed!”

Granted, this tweet is non-factual, devoid of any type of evidence and verging on frothing at the mouth. As just one example, let’s take the 96% number that Trump quotes in the above tweet. That came from a very unscientific straw poll that was done by one reporter on a far right-leaning site called PJ Media. In effect, Trump did exactly what he accuses of Google doing – he cherry-picked his source and called it a fact.

But what Trump has inadvertently put his finger on is the uneasy balance that Google tries to maintain as both a search engine and a publisher. And that’s where the question becomes cloudy. It’s a moral precipice that may be clear in the minds of Google engineers and executives, but it’s far from that in ours.

Google has gone on the record as ensuring their algorithm is apolitical. But based on a recent interview with Google News head Richard Gingras, there is some wiggle room in that assertion. Gingras stated,

“With Google Search, Google News, our platform is the open web itself. We’re not arbiters of truth. We’re not trying to determine what’s good information and what’s not. When I look at Google Search, for instance, our objective – people come to us for answers, and we’re very good at giving them answers. But with many questions, particularly in the area of news and public policy, there is not one single answer. So we see our role as [to] give our users, citizens, the tools and information they need – in an assiduously apolitical fashion – to develop their own critical thinking and hopefully form a more informed opinion.”

But –  in the same interview – he says,

“What we will always do is bias the efforts as best we can toward authoritative content – particularly in the context of breaking news events, because major crises do tend to attract the bad actors.”

So Google does boost news sites that it feels are reputable and it’s these sites – like CNN –  that typically dominate in the results. Do reputable news sources tend to lean left? Probably. But that isn’t Google’s fault. That’s the nature of Open Web. If you use that as your platform, you build in any inherent biases. And the minute you further filter on top of that platform, you leave yourself open to accusations of editorializing.

There is another piece to this puzzle. The fact is that searches on Google are biased, but that bias is entirely intentional. The bias in this case is yours. Search results have been personalized so that they’re more relevant to you. Things like your location, your past search history, the way you structure your query and a number of other signals will be used by Google to filter the results you’re shown. There is no liberal conspiracy. It’s just the way that the search algorithm works. In this way, Google is prone to the same type of filter-bubble problem that Facebook has.  In another interview with Tim Hwang, director of the Harvard-MIT Ethics and Governance of AI Initiative, he touches on this:

“I was struck by the idea that whereas those arguments seem to work as late as only just a few years ago, they’re increasingly ringing hollow, not just on the side of the conservatives, but also on the liberal side of things as well. And so what I think we’re seeing here is really this view becoming mainstream that these platforms are in fact not neutral, and that they are not providing some objective truth.”

The biggest challenge here lies not in the reality of what Google is or how it works, but in what our perception of Google is. We will never know the inner workings of the Google algorithm, but we do trust in what Google shows us. A lot. In our own research some years ago, we saw a significant lift in consumer trust when brands showed up on top of search results. And this effect was replicated in a recent study that looked at Google’s impact on political beliefs. This study found that voter preferences can shift by as much as 20% due to biased search rankings – and that effect can be even higher in some demographic groups.

If you are the number one channel for information, if you manipulate the ranking of the information in any way and if you wield the power to change a significant percentage of minds based on that ranking – guess what? You are the arbitrator of truth. Like it or not.

It’s Not Whether We Like Advertising – It’s Whether We Accept Advertising

Last week, I said we didn’t like advertising. That – admittedly – was a blanket statement.

In response, MediaPost reader Kevin VanGundy said:

“I’ve been in advertising for 39 years and I think the premise that people don’t like advertising is wrong. People don’t like bad advertising.”

I think there’s truth in both statements. The problem here is the verb I chose to use: “like.” The future of advertising hangs not on what we like, but on what we accept. Like is an afterthought. By the time we decide whether we like something or not, we’ve already been exposed to it. It’s whether we open the door to that exposure that will determine the future of advertising. So let’s dig a little deeper there, shall we?

First, seeing as we started with a blanket statement, let’s spend a little time unpacking this idea of “liking” advertising. As Mr. VanGundy agreed, we don’t like bad advertising. The problem is that most advertising is bad, in that it’s not really that relevant to us “in the moment.” Even with the best programmatic algorithms currently being used, the vast majority of the targeted advertising presented to me is off the mark. It’s irrelevant, it’s interruptive and that makes it irritating.

Let’s explore how the brain responds to this. Our brains love to categorize and label, based on our past experience. It’s the only way we can sort through and process the tsunami of input we get presented with on a daily basis. So, just like my opening sentence, the brain makes blanket statements. It doesn’t deal with nuance very well, at least in the subconscious processing of stimuli. It quickly categorizes into big generic buckets and sorts the input, discarding most of it as unworthy of attention and picking the few items of interest out of the mix. In this way, our past experience predicts our future behavior, in terms of what we pay attention to. And if we broadly categorize advertising as irritating, this will lessen the amount of attention we’re willing to pay.

As a thought experiment to support my point, think of what you would do if you were to click on a news story in the Google results and when you arrive at the article page, you get the pop up informing you that you had your ad-blocker on. You have been given two options: whitelist the page so you receive advertising or keep your ad-blocker on and read the page anyway. I’m betting you would keep your ad-blocker on. It’s because you were given a choice and that choice included the option to avoid advertising – which you did because advertising annoys you.

To further understand why the exchange that forms the foundation of advertising is crumbling, we have to understand that much of the attentional focused activity in the brain is governed by a heuristic algorithm that is constantly calculating trade-offs between resources and reward. It governs our cognitive resources by predicting what would have to be invested versus what the potential reward might be. This subconscious algorithm tends to be focused on the task at hand. Anything that gets in the way of the contemplated task is an uncalculated investment of resources. And the algorithm is governed by our past experience and broad categorizations. It you have categorized advertising as “bad” the brain will quickly cut that category out of consideration. The investment of attention is not warranted given the expected reward. If you did happen to be served a “good” ad that managed to make it into consideration – based on an exception to our general categorization that advertising is annoying – that can change, but the odds are stacked against it. It’s just that low probability occurrence that the entire ad industry is built on.

Finally, let’s look at that probability. In the past, the probability was high enough to warrant the investment of ad dollars. The probability was higher because our choices were fewer. Often, we only had one path to get to what we sought, and that path lead through an ad. The brain had no other available options. That’s no longer the case. Let’s go back to our ad-blocker example.

Let’s say the pop-up didn’t give us a choice – we had to whitelist to see the article. The resource – reward algorithm kicks into action: What are the odds we could find the information – ad-free –  elsewhere? How important is the information to us? Will we ever want to come back to this site to read another article? Perhaps we give in and whitelist. Or perhaps we just abandon the site with a sour taste in our mouth. The later was happening more and more, which is why we see fewer news sites offering the whitelist or nothing option now. The probability of our market seeing an ad is dropping because they have more ad-free alternatives. Or at least, they think they do.

And it’s this thought – precisely this thought – that is eroding the foundation of advertising, whether we like it or not.

 

The Rank and File: Life and Work in a Quantified World

No one likes to be a number – unless, of course – that number is one. Then it’s okay.

Rankings started to be crucial to me back in 1996 when I jumped into the world of search engine optimization. Suddenly, the ten blue links on a search results page took on critical importance. The most important, naturally, was the first result. It turned on the tap for a flow of business many local organizations could only dream of. My company once got a California Mustang part retailer that number one ranking for “Ford Mustang Parts.” The official site of For – Ford.com – was number two. The California business did very well for a few years. We probably made them rich. Then Google came along and the party was over. We soon found that as quickly as that tap could be turned on, it could also be turned off. We and our clients rode the stormy waters of multiple Google updates. We called it the Google dance.

Now that I’m in my second life (third? fourth?) as a tourism operator I’m playing that ranking game again. This time it’s with TripAdvisor. You would not believe how important a top ranking in your category is here. Again, your flow of business can be totally at the mercy of how well you rank.

The problem with TripAdvisor is not so much with the algorithm in the background or the criteria used for ranking. The problem is with the Delta between riches and rags. If you drop below the proverbial fold in TripAdvisor, your tourism business can shrivel up and die. One bad review could be the difference. I feel like I’m dancing the Google dance all over again.

But at least TripAdvisor is what I would call a proximate ranking site. The source of the rankings is closely connected to the core nature of the industry. Tourism is all about experiences. And TripAdvisor is a platform for experience reviews. There is some wiggle room there for gaming the system, but the unintended consequences are kept to a minimum. If you’re in the business of providing good experiences, you should do well in TripAdvisor. And if you pay attention to the feedback on TripAdvisor, your business should improve. This is a circle that is mostly virtuous.

Such is not always the case. Take teaching, for example. Ratemyprofessors.com is a ranking site for teachers and professors, based on feedback from students. If you read through the reviews, it soon becomes obvious that funny, relatable, good-looking profs fare better than those who are less socially gifted. It has become a popularity contest for academics. Certainly, some of those things may factor into the effectiveness of a good educator, but there is a universe of other criteria that are given short-shrift on the site. Teaching is a subtle and complex profession. Is a popular prof necessarily a good prof? If too much reliance is placed on ratings like those found on ratemyprofessors.com, will the need to be popular push some of those other less-rankable attributes to the background?

But let’s step back even a bit further. Along with the need to quantify everything there is also a demand for transparency. Let’s step into another classroom, this time in your local elementary school. The current push is to document what’s happening in the classroom and share it on a special portal that parents have access to. In theory, this sounds great. Increasing collaboration and streamlining the communication triangle between teachers, students and parents should be a major step forward. But it’s here where unintended consequences can run the education process off the rails. Helicopter parents are the most frequent visitors to the portal. They also dominate these new communication channels that are now open to their children’s teachers. And – if you know a helicopter parent – you know these are people who have no problem picking up the phone and calling the school administrator or even the local school board to complain about a teacher. Suddenly, teachers feel they’re constantly under the microscope. They alter their teaching style and course content to appeal to the types of parents that are constantly monitoring them.

Even worse, the teacher finds themselves constantly interrupting their own lesson in order to document what’s going on to keep these parents satisfied. What appears to be happening in the classroom through social media becomes more important than what’s actually happening in the classroom. If you’ve ever tried to actively present to a group and also document what’s happening at the same time, you know how impossible this can be. Pity then the poor teacher of your children.

There is a quote that is often (incorrectly) attributed to management guru Peter Drucker, “If you can’t measure it, you can’t manage it.” The reality is a lot more nuanced. As we’re finding out, what you’re actually measuring matters a lot. It may be leading you in completely the wrong direction.

Why We No Longer Want to Know What’s True

“Truth isn’t truth” – Rudy Giuliani – August 19, 2018

Even without Giuliani’s bizarre statement, we’re developing a weird relationship with the truth. It’s becoming even more inconvenient. It’s certainly becoming more worrisome. I was chatting with a psychiatrist the other day who counsels seniors. I asked him if he was noticing more general anxiety in that generation – a feeling of helplessness with how the world seems to be going to hell in a handbasket. I asked him that because I am less optimistic about the future than I ever have been in my life. I wanted to know if that was unusual. He said it wasn’t – I had plenty of company.

You can pick the truth that is most unsettling. Personally, I lose sleep over climate change, the rise of populist politics and the resurgence of xenophobia. I have to limit the amount of news I consume in any day, because it sends me into a depressive state. I feel helpless. And as much as I’m limiting my intake because of my own mental health, I can’t help thinking that this is a dangerous path I’m heading down.

After doing a little research, I have found that things like PTSD (President Trump Stress Disorder) or TAD (Trump Anxiety Disorder) are real things. They’re recognized by the American Psychological Association. After a ten-year decline, anxiety levels in the US spiked dramatically after November, 2016.  Clinical psychologist Jennifer Panning, who coined TAD, says “the symptoms include feeling a loss of control and helplessness, and fretting about what’s happening in the country and spending excessive time on social media.”

But it’s not just the current political climate that’s causing anxiety. It’s also the climate itself. Enter “ecoanxiety.” Again…the APA in a recent paper nails a remarkably accurate diagnosis of how I’m feeling: “Gradual, long-term changes in climate can also surface a number of different emotions, including fear, anger, feelings of powerlessness, or exhaustion.”

“You can’t handle the truth” – Colonel Nathan R. Jessep (from the movie “A Few Good Men”)

So – when the truth scares the hell out of you – what do you do?  We can find a few clues in the quotes above. One is this idea of a loss of control. The other is spending excessive time on social media. My belief is that the later exacerbates the former.

In a sense, Rudy Giuliani is right. Truth isn’t truth, at least, not on the receiving end. We all interpret truth within the context of our own perceived reality. This in no way condones the manipulation of truth upstream from when it reaches us. We need to trust that our information sources are providing us the closest thing possible to a verifiable and objective view of truth.  But we have to accept the fact that for each of us, truth will ultimately be filtered through our own beliefs and understanding of what is real. Part of our own perceived reality is how in control we feel of the current situation. And this is where we begin to see the creeping levels of anxiety.

In 1954, psychologist Julian Rotter introduced the idea of a “locus of control” –the degree of control we believe we have over our own lives. For some of us, our locus is tipped to the internal side. We believe we are firmly at the wheel of our own lives. Others have an external locus, believing that life is left to forces beyond our control. But like most concepts in psychology, the locus of control is not a matter of black and white. It is a spectrum of varying shades of gray. And anxiety can arise when our view of reality seems to be beyond our own locus of control.

The word locus itself comes from the Latin for “place” or “location.” Typically, our control is exercised over those things that are physically close to us. And up until a 150 years ago, that worked well. We had little awareness of things beyond our own little world so we didn’t need to worry about them. But electronic media changed that. Suddenly, we were aware of wars, pestilence, poverty, famines and natural disasters from around the world. This made us part of Marshall McLuhan’s “Global Village.” The circle of our “locus of awareness” suddenly had to accommodate the entire world but our “locus of control” just couldn’t keep pace.

Even with this expansion of awareness, one could still say that truth remained relatively true. There was an editorial check and balance process that checked the veracity of the information we were presented. It certainly wasn’t perfect, but we could place some confidence in the truth of what we read, saw and heard.

And then came social media. Social media creates a nasty feedback loop when it comes to the truth. Once again, Dr. Panning typified these new anxieties as, “fretting about what’s happening in the country and spending excessive time on social media.” The algorithmic targeting of social media platforms means that you’re getting a filtered version of the truth. Facebook knows exactly what you’re most anxious about and feeds you a steady diet of content tailored specifically to those anxieties. We have the comfort of seeing posts from members of our network that seem to fear the same things we do and share the same beliefs. But the more time we spend seeking this comfort, the more we’re exposed to the anxiety inducing triggers and the further and further we drift from the truth. It creates a downward spiral that leads to these new types of environmental anxiety we are seeing. And to deal with those anxieties we’re developing new strategies for handling the truth – or, at least – our version of the truth. That’s where I’ll pick up next week.

 

Deconstructing the Google/Facebook Duopoly

We’ve all heard about it. The Google/Facebook Duopoly. This was what I was going to write about last week before I got sidetracked. I’m back on track now (or, at least, somewhat back on track). So let’s start by understanding what a duopoly is…

…a situation in which two suppliers dominate the market for a commodity or service.

And this, from Wikipedia…

… In practice, the term is also used where two firms have dominant control over a market.

So, to have a duopoly, you need two things: domination and control. First, let’s deal with the domination question. In 2017, Google and Facebook together took a very healthy 59% slice of all digital ad revenues in the US. Google captured 38.6% of that, with Facebook capturing 20%. That certainly seems dominant. But if online marketing is the market, that is a very large basket with a lot of different items thrown in. So, let’s do a broad categorization to help deconstruct this a bit.  Typically, when I try to understand marketing, I like to start with humans – or more specifically – what that lump of grey matter we call a brain is doing. And if we’re talking about marketing, we’re talking about attention – how our brains are engaging with our environment. That is an interesting way to divide up the market we’re talking about, because it neatly bisects the attentional market, with Google on one side and Facebook on the other.

Google dominates the top down, intent driven, attentionally focused market. If you’re part of this market, you have something in mind and you’re trying to find it. If we use search as a proxy for this attentional state (which is the best proxy I can think of) we see just how dominate Google is. It owns this market to a huge degree. According to Statista, Google has about 87% of the total worldwide search market in April of 2018. The key metric here is success. Google needs to be the best way to fulfill those searches. And if market share is any indication, it is.

Facebook apparently dominates the bottom up awareness market. These are the people killing time online and they are not actively looking with commercial intent. This is more of an awareness play where attention has to be diverted to an advertising message. Therefore, time spent becomes the key factor. You need to be in front of the right eyeballs, and so you need a lot of eyeballs and a way to target to the right ones.

Here is where things get interesting. If we look at share of consumer time, Google dominates here. But there is a huge caveat, which I’ll get to in a second. According to a report this spring by Pivotal Research, Google owns just under 28% of all the time we spend consuming digital content. Facebook has just over a 16% share of this market. So why do we have a duopoly and not a monopoly? It’s because of that caveat – a whopping slice of Google’s “time spent” dominance comes from YouTube. And YouTube has an entirely different attentional profile – one that’s much harder to present advertising against. When you’re watching a video on YouTube, your attention is “locked” on the video. Disrupting that attention erodes the user experience. So Google has had a tough time monetizing YouTube.

According to Seeking Alpha, Google’s search ad business will account for 68% of their total revenue of $77 billion this year. That’s over 52 billion dollars that is in that “top-down” attentionally focused bucket. YouTube, which is very much in the “bottom-up” disruptive bucket, accounts for $12 Billion in advertising revenues. Certainly nothing to sneeze at, but not on the same scale as Google’s search business. Facebook’s revenue, at about $36 B, is also generated by this same “bottom up” market, but they have a different attentional profile. The Facebook user is not as “locked in” as they are on YouTube. With the right targeting tools, something that Facebook has excelled at, you have a decent chance of gaining their attention long enough to notice your ad.

Domination

If we look at the second part of the definition of a duopoly – that of control – we see some potential chinks in the armor of both Google and Facebook. Typically, market control was in the form of physical constraints against the competition. But in this new type of market, the control can only be in the minds of the users. The barriers to competitive entry are all defined in mental terms.

In  Google’s case, they have a single line of defense: they have to be an unbreakable habit. Habits are mental scripts that depend on two things – obvious environmental cues that trigger habitual behavior and acceptable outcomes once the script completes. So, to maintain their habit, Google has to ensure that whatever environment you might be in when searching online for something, Google is just a click or two away. Additionally, they have to meet a certain threshold of success. Habits are tough to break, but there are two areas of vulnerability in Google’s dominance.

Facebook is a little different. They need to be addictive. This is a habit taken to the extreme. Addictions depend on pushing certain reward buttons in the brain that lead to an unhealthy behavioral script which become obsessive. The more addicted you are to Facebook and its properties, the more successful they will be in their dominance of the market. You can see the inherent contradiction here. Despite Facebook’s protests to the contrary, with their current revenue model they can only succeed at the expense of our mental health.

I find these things troubling. When you have two for-profit organizations fighting to dominate a market that is defined in our own minds, you have the potential for a lot of unhealthy corporate decisions.