Category Archives: Customer Relationships

The Raging Ripple Effect of AirBNB

Ripple Effect: the continuing and spreading results of an event or action.

I’m pretty sure Brian Chesky and Joe Gebbia had no idea what they were unleashing when they decided to rent out an air mattress in the front room of their San Francisco apartment in the fall of 2007. The idea made all kinds of sense: there was not a hotel room to be had, there was a huge conference in town and they were perpetually short on their rent. It seemed like the perfect win-win – and, at first, it was.

But then came the Internet. AirBnB was born and would unleash unintended consequences that would change the face of tourism, up-end real estate markets and tear apart neighborhoods in cities around the world..

For the past two decades we have seen the impact of simple ideas that can scale massively thanks to the networked world we live in. In a physical world, there are real world factors that limit growth. Distribution, logistics, production, awareness – each of these critical requirements for growth are necessarily limited by geography and physical reality. 

But in a wired world, sometimes all you need is to provide an intermediary link between two pools of latent potential and the effect is the digital equivalent of an explosion. There is no physical friction to moderate the effect. That’s what AirBnB Did. Chesky and Gebbia’s simple idea became the connection between frustrated travellers who were tired of exorbitant hotel prices and millions of ordinary people who happened to have a spare bed. There was enormous potential on both sides and all AirBNB had to do was facilitate the connection.

AirBnB’s rise was meteoric. After Chesky and Gebbia’s initial brainstorm in 2007, they launched a website the next spring, in 2008. One year later there were hosts in 1700 cities in 100 different countries. Two years after that, AirBnB had hosted their 1 millionth guest and had over 120,000 listings. By 2020, the year Covid threw a pandemic sized spanner in the works of tourism, AirBnB had 5.6 million listings and was heading towards an IPO. 

Surprisingly, though, a global pandemic wasn’t the biggest problem facing AirBnB. There was a global backlash building that had nothing to do with Covid 19. AirBnB’s biggest problem was the unintended ripple effects of Chesky and Gebbia’s simple idea.

Up until the debut of the internet and the virtual rewiring of our world, new business ideas usually grew slowly enough for the world to react to their unintended consequences. As problems emerged, new legislation could be passed, new safeguards could be introduced and new guidelines could be put in place. But when AirBnB grew from a simple idea to a global juggernaut in a decade, things happened too quickly for the physical world to respond. Everything was accelerated: business growth, demand and the impact on both tourism and the communities those tourists were flocking to. 

Before we knew what was happening, tourism had exploded to unsustainable levels, real estate markets went haywire and entire communities were being gutted as their character changed from a traditional neighborhood to temporary housing for wave after wave of tourists. It’s only recently that many cities that were being threatened with the “AirBnB” effect responded with legislation that either banned or severely curtailed short term vacation rentals.

The question is, now that it’s been unleashed, can the damage done by AirBnB be undone? Real estate markets that were artificially fueled by sales to prospective short term rental hosts may eventually find a new equilibrium, but many formerly affordable listings could remain priced beyond the reach of first time home buyers. Will cities deluged by an onslaught of tourism ever regain the charm that made them favored destinations in the first place? Will neighbourhoods that were transformed by owners cashing in on the AirBnB boom ever regain their former character?

In our networked world, the ripples of unintended consequences spread quickly, but their effects may be with us forever.

Why I Hate Marketing

I have had a love-hate relationship with marketing for a long time now. And – I have to admit – lately the pendulum has swung a lot more to the hate side.

This may sound odd coming from someone who was a marketer for the almost all of his professional life. From the time I graduated from college until I retired, I was marketing in one form or the other. That span was almost 40 years. And for that time, I always felt the art of marketing lived very much in an ethical grey zone. When someone asked me to define marketing, I usually said something like this, “marketing is convincing people to buy something they want but probably don’t need.” And sometimes, marketing has to manufacture that “want” out of thin air.

When I switched from traditional marketing to search marketing almost 30 years ago, I felt it aligned a little better with my ethics. At least, with search marketing, the market has already held up their hand and said they wanted something. They had already signaled their intent. All I had to do is create the connection between that intent and what my clients offered. It was all very rational – I wasn’t messing with anyone’s emotions.

But as the ways we can communicate with prospects digitally has exploded, including through the cesspool we call social media, I have seen marketing slip further and further into an ethical quagmire. Emotional manipulation, false claims and games of bait and switch are now the norm rather than the exception in marketing.

Let me give you one example that I’ve run into repeatedly. The way we book a flight has changed dramatically in the last 25 years. It used to be that airline bookings always happened through an agent. But with the creation of online travel agents, travel search tools and direct booking with the airlines, the information asymmetry that had traditionally protected airline profit margins evaporated. Average fare prices plummeted and the airline profits suffered as a result.

Here in Canada, the two major airlines eventually responded to this threat by following the lead of European lo-cost carriers and introduced an elaborate bait and switch scheme. They introduced “ultra-basic” fares (the actual labels may vary) by stripping everything possible in the way of customer comfort from the logistical reality of getting one human body from point A to Point B. There are no carry-on bag allowances, no seat selection, no point collection, no flexibility in booking and no hope of getting a refund or flight credit if your plans change. To add insult to injury, you’re also shuttled into the very last boarding group and squeezed into the most undesirable seats on the plane. The airlines have done everything possible to let you know you are hanging on to the very bottom rung of their customer appreciation ladder.

Now, you may say that this is just another case of “caveat emptor” – it’s the buyer’s responsibility to know what they’re purchasing and set their expectations accordingly. These fares do give passengers the ability to book a bare-bones flight at a much lower cost. It’s just the airlines responding to a market need. And I might agree – if it weren’t for how these fares are used by the airline’s marketers.

With flight tracking tools, you can track flight prices for future trips. These tools will send you an alert when fares change substantially in either direction. This kind of information puts a lot of power in the hands of the customer, but airlines like WestJet and Air Canada use their “Bare Bones” basic fares to game this system.

While it is possible on some tracking tools like Google Flights to set your preferences to exclude “basic” fares, most users stick to the default settings that would include these loss-leader offerings. They then get alerts with what seem to be great deals on flights as the airlines introduce a never-ending stream of seat sales. The airlines know that by reducing the fares on a select few seats for a few days just enough to trigger an alert, they will get a rush of potential flyers that have used a tracker waiting for the right time to book.

As soon as you come to the airline site to book, you see that while a few seats at the lowest basic fare are on sale, the prices on the economy seats that most of us book haven’t budged. In fact, it seems to me that they’ve gone up substantially. On one recent search, the next price level for an economy seat was three times as much as the advertised ultra-basic fare. If you do happen to stick with booking the ultra-basic fare, you are asked multiple times if you’re sure you don’t want to upgrade? With one recent booking, I was asked no fewer than five times if I wanted to pay more before the purchase was complete.

This entire marketing approach feels uncomfortably close to gas lighting. Airline marketers have used every psychological trick in the book to lure you in and then convince you to spend much more than you originally intended. And this didn’t happen by accident. Those marketers sat down in a meeting (actually, probably several meetings) and deliberately plotted out – point by point – the best way to take advantage of their customers and squeeze more money from them. I know, because I’ve been in those meetings. And a lot of you reading this have been too.

 When I started marketing, the goal was to build a long-term mutually beneficial relationship with your customers. Today, much of what passes for marketing is more like preying on a vulnerable prospect in an emotionally abusive relationship.

And I don’t love that.

Being in the Room Where It Happens

I spent the past weekend attending a conference that I had helped to plan. As is now often the case, this was a hybrid conference; you could choose to attend in person or online via Zoom. Although it involved a long plane ride, I choose to attend in person. It could be because – as a planner – I wanted to see how the event played out. Also, it’s been a long time since I attended a conference away from my home. Or – maybe – it was just FOMO.

Whatever the reason, I’m glad I was there, in the room.

This was a very small conference planned on a shoestring budget. We didn’t have money for extensive IT support or AV equipment. We were dependent solely on a laptop and whatever sound equipment our host was able to supply. We knew going into the conference that this would make for a less-than-ideal experience for those attending virtually. But – even accounting for that – I found there was a huge gap in the quality of that experience between those that were there and those that were attending online. And, over the duration of the 3-day conference, I observed why that might be so.

This conference was a 50/50 mix of those that already knew each other and those that were meeting each other for the first time. Even those who were familiar with each other tended to connect more often via a virtual meeting platform than in a physical meeting space. I know that despite the convenience and efficiency of being able to meet online, something is lost in the process. After the past two days, carefully observing what was happening in the room we were all in, I have a better understanding of what that loss might be – it was the vague and inexact art of creating a real bond with another person.

In that room, the bonding didn’t happen at the speaking podium and very seldom happened during the sessions we so carefully planned. It seeped in on the sidelines, over warmed-over coffee from conference centre urns, overripe bananas and the detritus of the picked over pastry tray. The bonding came from all of us sharing and digesting a common experience. You could feel a palpable energy in the room. You could pick up the emotion, read the body language and tune in to the full bandwidth of communication that goes far beyond what could be transmitted between an onboard microphone and a webcam.

But it wasn’t just the sharing of the experience that created the bonds. It was the digesting of those experiences after the fact. We humans are herding animals, and that extends to how we come to consensus about things we go through together. We do so through communication with others – not just with words and gesture, but also through the full bandwidth of our evolved mechanisms for coming to a collective understanding. It wasn’t just that a camera and microphone couldn’t transmit that effectively, it was that it happened where there was no camera or mic.

As researchers have discovered, there is a lived reality and a remembered reality and often, they don’t look very much alike. The difference between the effectiveness of an in-person experience and one accessed through an online platform shouldn’t come as a surprise to us. This is due to how our evolved sense-making mechanisms operate. We make sense of reality both internally, through a comparison with our existing cognitive models and externally, through interacting with others around us who have shared that same reality. This communal give-and-take colors what we take with us, in the form of both memories and an updated model of what we know and believe. When it comes to how humans are built, collective sense making is a feature, not a bug.

I came away from that conference with much more than the content that was shared at the speaker dais. I also came away with a handful of new relationships, built on sharing an experience and, through that, laying down the first foundations of trust and familiarity. I would not hesitate to reach out to any of these new friends if I had a question about something or a project I felt they could collaborate on.

I think that’s true largely because I was in the room where it happened.

It’s Tough to Consume Conscientiously

It’s getting harder to be both a good person and a wise consumer.

My parents never had this problem when I was a kid. My dad was a Ford man. Although he hasn’t driven for 10 years, he still is. If you grew up in the country, your choices were simple – you needed a pickup truck. And in the 1960s and 70s, there were only three choices: Ford, GMC or Dodge. For dad, the choice was Ford – always.

Back then, brand relationships were pretty simple. We benefited from the bliss of ignorance. Did the Ford Motor Company do horrible things during that time? Absolutely. As just one example, they made a cost-benefit calculation and decided to keep the Pinto on the road even though they knew it tended to blow up when hit from the rear. There is a corporate memo saying – in black and white – that it would be cheaper to settle the legal claims of those that died than to fix the problem. The company was charged for negligent homicide. It doesn’t get less ethical than that.

But that didn’t matter to Dad. He either didn’t know or didn’t care. The Pinto Problem, along with the rest of the shady stuff done by the Ford Motor Company, including bribes, kickbacks and improper use of corporate funds by Henry Ford II, was not part of Dad’s consumer decision process. He still bought Ford. And he still considered himself a good person. The two things had little to do with each other.

Things are harder now for consumers. We definitely have more choice, and those choices are harder, because we know more.  Even buying eggs becomes an ethical struggle. Do we save a few bucks, or do we make some chicken’s life a little less horrible?

Let me give you the latest example from my life. Next year, we are planning to take our grandchildren to a Disney theme park. If our family has a beloved brand, it would be Disney. The company has been part of my kids’ lives in one form or another since they were born and we all want it to be part of their kid’s lives as well.

Without getting into the whole debate, I personally have some moral conflicts with some of Disney’s recent corporate decisions. I’m not alone. A Facebook group for those planning a visit to this particular park has recently seen posts from those agonizing over the same issue. Does taking the family to the park make us complicit in Disney’s actions that we may not agree with? Do we care enough to pull the plug on a long-planned park visit?

This gets to the crux of the issue facing consumers now – how do we balance our beliefs about what is wrong and right with our desire to consume? Which do we care more about? The answer, as it turns out, seems to almost always be to click the buy button as we hold our noses.

One way to make that easier is to tell ourselves that one less visit to a Disney mark will make virtually no impact on the corporate bottom line. Depriving ourselves of a long-planned family experience will make no difference. And – individually – this is true. But it’s exactly this type of consumer apathy which, when aggregated, allows corporations to get away with being bad moral characters.

Even if we want to be more ethically deliberate in our consumer decisions, it’s hard to know where to draw the line. Where are we getting our information about corporate behavior from? Can it be trusted? Is this a case of one regrettable action, or is there a pattern of unethical conduct? These decisions are always complex, and coming to any decision that involves complexity is always tricky.

To go back to a simpler time, my grandmother had a saying that she applied liberally to any given situation, “What does all this have to do with the price of tea in China?” Maybe she knew what was coming.

Just Behave Archive: Q&A With Marissa Mayer, Google VP, Search Products & User Experience

This blog is the most complete collection of my various posts across the web – with one exception. For 4 years, from 2007 to 2011, I wrote a column for Search Engine Land called “Just Behave” (Danny Sullivan’s choice of title, not mine – but it grew on me). At the time, I didn’t cross-post because Danny wanted the posts to be exclusive. Now, with almost 2 decades past, I think it’s safe to bring these lost posts back home to the nest, here at “Out of My Gord”. You might find them interesting from a historical perspective, and also because it gave me the chance to interview some of the brightest minds in search at that time. So, here’s my first, with Google’s then VP of Search Products and User Experience – Marissa Mayer. It ran in January, 2007 :

Marissa Mayer has been the driving force behind Google’s Spartan look and feel from the very earliest days. In this wide-ranging interview, I talked with Marissa about everything from interface design to user behavior to the biggest challenge still to be solved with search as we currently know it.

I had asked for the interview because of some notable findings in our most recent eye tracking study. I won’t go into the findings in any great depth here, because Chris Sherman will be doing a deep dive soon. But for the purpose of setting the background for Marissa’s interview, here are some very quick highlights:


MSN and Yahoo Users had a better User Experience on Google

In the original study, the vast majority of participants were Google users, and their interactions were restricted to Google. With the second study, we actually recruited participants that indicated their engine of preference was Yahoo! or MSN (now Live Search), as the majority of their interactions would be with those two engines. We did take one task at random, however, and asked them to use Google to complete the task. By almost every metric we looked at, including time to complete the task (choose a link), the success of the link chosen, the percentage of the page scanned before choosing a link and others, these users had a more successful experience on Google than on their engine of choice.

Google Seemed to Have a Higher Degree of Perceived Relevancy

In looking at the results, we didn’t believe that it was the actual quality of the results that lead to a more successful user experience as much as it was how those results were presented to the user. Something about Google’s presentation made it easier to determine which results were relevant. We referred to it in the study as information scent, using the term common in the information foraging theory.

Google Has an Almost Obsessive Dedication to Relevancy at the Top of the Results Page

The top of the results, especially the top left corner, is the most heavily scanned part of the results page. Google seemed to be the most dedicated of all the three engines in ensuring the results that fall in this real estate are highly relevant to the query. For example, Google served up top sponsored ads in far fewer sessions in the study than did either Yahoo or MSN.

Google Offers the “Cleanest” Search Experience

Google is famous for its Spartan home page. It continues this minimalist approach to search with the cleanest results page. When searching, we all have a concept in mind and that concept can be influenced by what else we see on the page. Because a number of searches on Yahoo! and MSN were launched from their portal page, we wondered how that impacted the search experience.

Google Had Less Engagement than Yahoo with their Vertical Results

The one area where Google appeared to fall behind in these head to head tests was with the relevance of the OneBox, or their vertical results. Yahoo! in particular seemed to score more consistently with users with their vertical offerings, Yahoo! Shortcuts.

It was in these areas in particular that I wanted to get the thinking of Marissa and her team at Google. Whatever they’re doing, it seems to be working. In fact, I have said in the past that Google has set the de facto standard for what we expect from a search engine, at least for now.

Here’s the interview:

Gord: What, at the highest level, is Google’s goal for the user?

Marissa: Our goal is to make sure that people can find what they’re looking for and get off the page as quickly as possible

If we look at this idea of perceived versus real relevancy, some things seemed to make a big difference in how relevant people perceived the results to be on a search engine: things like how much white space there was around individual listings, separating organic results from the right rail, the query actually being bolded in the title and the description and very subtle nuances like a hair line around the sponsored ads as opposed to a screened box. What we found when we delved into it was there seemed to be a tremendous attention to that detail on Google. It became clear that this stuff had been fairly extensively tested out.

I think all of your observations are correct. I can walk you through any one of the single examples you just named and I can talk you through the background and exactly what our philosophy was when we designed it and the numbers we saw in our tests as we had tested them, but you’re right in that it’s not an accident. For example, putting a line along the side of the ad as opposed to boxing it allows it to integrate more into the page and lets it fall more into what people read.

One thing that I think about a lot are people that are new to the internet. A lot of times they subconsciously map the internet to physical idioms. For example, when you look at how you parse a webpage, chances are that there are some differences if there are links in the structure and so forth, but a lot of times it looks just like a page in a book or a page on a magazine, and when you put a box around something, it looks like a sidebar. The way people handle reading a page that has a sidebar on it is that they read the whole main page and then, at the end, if it’s not too interesting, they stop and read the sidebar on that page.

For us, given that we think our ads in some cases are as good an answer as our search results and we want them to be integral to the user experience, we don’t want that kind of segmentation and pausing. We tried not to design it so it looked like a side bar, even though we have two distinct columns. You know, There are a lot of philosophies like that that go into the results page and of course, testing both of those formats to see if that matches our hypothesis.

That brings up something else that was really interesting. If we separate the top sponsored from the right rail, the majority of the interaction happens on the page in that upper left real estate. One thing that became very apparent was that Google seemed to be the most aware of relevancy at that top of page, that Golden Triangle real estate. In all our scenarios, you showed top sponsored the least number of times and generally you showed fewer top sponsored results. We saw a natural tendency to break off the top 3 or 4 listings on a page and scan them as a set and then make your choice from those top 3 or 4. In Google, those top 3 or 4 almost always include 1 or 2 organic results, sometimes all organic results.

That’s absolutely the case. Yes, we’re always looking at how can we do better targeting with ads. But we believe part of the targeting for those ads is “how well do those ads match your query?” And then the other part is how well does this format and that prominence convey to you how relevant it is. That’s baked into the relevance.

Our ad team has worked very very hard. One of the most celebrated teams at Google is our Smart Ads team. In fact, you may have heard of the Google Founder’s Awards, where small teams of people get grants of stock of up to $10,000,000 in worth, split across a small number of individuals. One of the very first teams at Google to receive that award was the Smart Ads team. And they were looking, interestingly enough, at how you target things. But they were also looking at what’s the probability that someone will click on a result. And shouldn’t that probability impact our idea of relevance, and also the way we choose to display it.

So we do tend to be very selective and keep the threshold on what appears on the top of the page very high. We only show things on the top when we’re very very confident that the click through rate on that ad will be very high. And the same thing is true for our OneBox results that occasionally appear above the top (organic) results. Larry and Sergey, when I started doing user interface work, said we’re thinking of making your salary proportional to the number of pixels above the first result, on average. We’ve mandated that we always want to have at least one result above the fold. We don’t let people put too much stuff up there. Think about the amount of vertical space on top of the page as being an absolute premium and design it and program it as if your salary depended on it.

There are a couple of other points that I want to touch on. When we looked at how the screen real estate divided up on the search results page, based on a standard resolution, there seemed to be a mathematical precision to the Google proportions that wasn’t apparent on MSN and on Yahoo. The ratio seemed pretty set. We always seemed to come up with a 33% ratio dedicated to top organic, even on a fully loaded results page, so obviously that’s not by accident. That compared to, on a fully loaded page, less than 14% on Yahoo.

That’s interesting, because we never reviewed on a percentage basis that you’re mentioning. We’ve had a lot of controversy amongst the team, should it be in linear inches along the left hand margin, should it actually be square pixelage computed on a percentage basis? Because of the way that the search is laid out linear inches or vertical space may be more accurate. As I said, the metric that I try to hold the team to is always getting at least one organic result above the fold on 800 by 600, with the browser held at that size.

The standard resolution we set for the study was 1024 by 768.

Yes, we are still seeing as many as 30% plus of our users at 800 by 600. My view is, we can view 1024 by 768 as ideal. The design has to look good on that resolution. It has to at least work and appear professional on 800 by 600. So all of us with our laptops, we’re working with 1024 by 768 as our resolution, so we try to make sure the designs look really good on that. It’s obvious that some of our engineers have bigger monitors and bigger resolutions than that, but we always are very conscious of 800 by 600. It’s pretty funny, most of our designers, myself included, have a piece of wall paper that actually has rectangles in the back where if you line up the browser in the upper left hand corner and then align the edge of the browser with the box you can simulate all different sizes so we can make sure it works in the smaller browsers.

One of the members of our staff has a background in physics and design and he was the one that noticed that if you take the Golden Ratio it lined up very well with how the Google results page is designed. The proportions of the page lined up pretty closely with how that Ratio is proportioned.

I’m a huge fan of the Golden Ratio. We talk about it a lot in our design reviews, both implicitly and explicitly, even when it comes down to icons. We prefer that icons not be square, we prefer that they be more of the 1.7:1.

I wanted to talk about Google OneBox for a minute. Of all the elements on the Google page, frankly, that was the one that didn’t seem to work that well. It almost seemed to be in flux somewhat while we were doing the data collection. Relevancy seemed to be a little off on a number of the searches. Is that something that is being tested.

Can you give me an example?

The search was for digital cameras and we got news results back in OneBox. Nikon had a recall on a bunch of digital cameras at the time and we went, as far as disambiguating the user intent from the query, it would seem that news results for the query digital cameras is probably not the best match.

It’s true. The answer is that we do a fairly good job, I believe, in targeting our OneBox results. We hold them to a very high click through rate expectation and if they don’t meet that click through rate, the OneBox gets turned off on that particular query. We have an automated system that looks at click through rates per OneBox presentation per query. So it might be that news is performing really well on Bush today but it’s not performing very well on another term, it ultimately gets turned off due to lack of click through rates. We are authorizing it in a way that’s scalable and does a pretty good job enforcing relevance. We do have a few niggles in the system where we have an ongoing debate and one of them is around news versus product search

One school of thought is what you’re saying, which is that it should be the case that if I’m typing digital cameras, I’m much more likely to want to have product results returned. But here’s another example. We are very sensitive to the fact that if you type in children’s flannel pajamas and there’s a recall due to lack of flame retardation on flannel pajamas, as a parent you’re going to want to know that. And so it’s a very hard decision to make.

You might say, well, the difference there is that it’s a specific model. Is it a Nikon D970 or is it digital cameras, which is just a category? So it’s very hard on the query end to disambiguate. You might say if there’s a model number then it’s very specific and if only the model number matches in the news return the news and if not, return the products. But it’s more nuanced than that. With things like Gap flannel pajamas for children, it’s very hard to programmatically tell if that’s a category or a specific product. So we have a couple of sticking points.

So that would be one of the reasons why, for a lot of searches, we weren’t seeing product results coming back, and in a lot of local cases, we weren’t seeing local results coming back?. That would be that click through monitoring mechanism where it didn’t meet the threshold and it got turned off?

That’s right.

Here’s another area we explored in the study. Obviously a lot of searches from Yahoo or MSN Live Search get launched from a portal and the user experience if you launch from the Google home page is different. What does it mean as far as interaction with search results when you’re launching the search from what’s basically a neutral palette versus something that’s launched from a portal that colors the intent of the user as it passes them through to the search results?

We want the user to not be distracted, to just type in what they want and not be very influenced by what they see on the page, which is one reason why the minimalist home page works well. It’s approachable, it’s simple, it’s straightforward and it gives the user a sense of empowerment. This engine is going to do what they want it to do, as opposed to the engine telling them what they should be doing, which is what a portal does. We think that to really aid and facilitate research and learning, the clean slate is best.

I think there’s a couple of interesting problems in the portal versus simple home page piece. You might say it’s easier to disambiguate from a portal what a person might be intending. They look at the home page and there’s a big ad running for Castaway and if they search Castaway, they mean the movie that they just saw the ad for. That might be the case but the other thing that I think is more confusing than anything is the fact that most people who launch the search from the portal home page are actually ignoring and tuning out most of the content on a page. If anything you’re more inclined to mistake intent, to think, “Oh, of course when they typed this they meant that,” but they actually didn’t, because they didn’t even see this other thing. One thing that we’re consistently noticing, which your Golden Triangle finding validated, is that users have a laser focus on their task.

The Google home page is very simple and when we put a link underneath the Google search box on the home page to advertise one of our products, we say, “Hey, try Google video, it’s new, or download the new Picassa.” Basically it’s the only other thing on the page, and while it does get a fair amount of click through, it’s nothing compared to the search, because most users don’t even see it. Most users on our search results page don’t see the logo on the top of the page, they don’t see OneBox, they don’t even see spelling corrections, even though it’s there in bright red letters. There’s a single-mindedness of I’m going to put in my search, not let anything on the home page get in the way, and I’m going to go for the first blue left aligned link on the results page and everything above it basically gets ignored. And we’ve seen that trend again and again. My guess is that if anything, that same thing is happening at the portals but because there is so much context around it on the home page, their user experience and search relevance teams may be led astray, thinking that that context has more relevance than it has.

One thing eye tracking allowed us to pull this apart a little bit is that when we gave people two different scenarios, one aimed more towards getting them to look at the organic results and one that would have them more likely to look at sponsored results, and then look down to organic results, we saw the physical interaction with the page didn’t vary as much as we thought, but the cognitive interaction with the page, when it came to what they remembered seeing and what they clicked on, was dramatically different. So it’s almost like they took the same path through, but the engagement factor flicked on at different points.

My guess is that people who come to the portal are much more likely to look at ads. I like to think of them as users with ADHD. They’re on the home page and they enjoy a home page that pulls their attention in a lot of different directions. They’re willing to process a lot of information on the way to typing in their search, and as a result, that same mind that likes that, it may not even be a per user thing, it may be an of-the-moment thing, but a person that’s in the mindset of enjoying that, on the home page, is also going to be much more likely to look around on the search results page. Their attention is going to be much more likely to be pulled in the direction of an ad, even if it’s not particularly relevant, banner, brand, things like that.

I want to wrap up by asking you, what in your mind is the biggest challenge still to be solved with the search interface as we currently know it?

I think there’s a ton of challenges, because in my view, search is in its infancy, and we’re just getting started. I think the most pressing, immediate need as far as the search interface is to break paradigm of the expectation of “You give us a keyword, and we give you 10 URL’s”. I think we need to get into richer, more diverse ways you’re able to express their query, be it though natural language, or voice, or even contextually. I’m always intrigued by what the Google desktop sidebar is doing, by looking at your context, or what Gmail does, where by looking at your context, it actually produces relevant webpages, ads and things like that. So essentially, a context based search.

So, challenge one is how the searches get expressed, I think we really need to branch out there, but I also think we need to look at results pages that aren’t just 10 standard URLS that are laid out in a very linear format. Sometimes the best answer is a video, sometimes the best answer will be a photo, and sometime the best answer will be a set of extracted facts. If I type in general demographic statistics about China, it’d be great if I got “A” as a result. A set of facts that had been parsed off of and even aggregated and cross validated across a result set.

And sometimes the best result would be an ad. Out of interest, when we tracked through to the end of the scenario to see which links provided the greatest degree of success, the top sponsored results actually delivered the highest success rates across all the links that were clicked on in the study.

Really? Even more so than the natural search results?

Yes. Even the organic search results. Now mind you, the scenarios given were commercial in nature.

Right… that makes much more sense. I do think that for the 40 or so percent of page views that we serve ads on that those ads are incredibly relevant and usually do beat the search results, but for the other 60% of the time the search results are really the only reasonable answer.

Thanks, Marissa.

In my next column, I talk with Larry Cornett, Senior Director of Search & Social Media in Yahoo’s User Experience & Design group about their user experience. Look for it next Friday, February 2.

Will There Be a Big-Tech Reckoning?

Jeff Bezos, Mark Zuckerberg and Tim Cook must be thanking their lucky stars that Elon Musk is who he is. Musk is taking the brunt of any Anti-Trump backlash and seems to be relishing in it. Heaven only knows what is motivating Musk, but he is casting a smoke screen so wide and dense it’s obliterating the ass-kissing being done by the rest of the high-tech oligarchs.  In addition to Bezos, Zuckerberg and Cook, Microsoft’s Satya Nadella, Google’s Sundar Pichai and many other high-tech leaders have been making goo-goo eyes at Donald Trump.

Let’s start with Jeff Bezos. One assumes he is pandering to the president because his companies have government contracts worth billions. That pandering has included a pilgrimage to Trump’s Mar-a-Lago, a one million donation to his inauguration fund (which was streamed live on Amazon Prime), and green-lighting a documentary on Melania Trump. The Bezos-owned Washington Post declined from endorsing Kamala Harris as a presidential candidate, prompting some of its editorial staff to resign. At Amazon, the company has backed off some of its climate pledge commitments and started stripping Diversity, Equity and Inclusion programs from their HR handbook.

Mark Zuckerberg joined Trump supporting podcaster Joe Rogan for almost three hours to explain how they were realigning Facebook to be more Trump-friendly. This included canning their fact checkers and stopping policing of misinformation. During the interview, Zuckerberg took opportunities to slam media and the outgoing Biden administration for daring to question Facebook about misleading posts about Covid-19 vaccines. Zuckerberg, like Bezos, also donated $1 million to Trump’s inaugural fund and has rolled back DEI initiatives at Meta.

Tim Cook’s political back-bend had been a little more complicated. On the face of it, Apple’s announcement that it would be investing more than $500 billion in the U.S. and creating thousands of new jobs certainly sounds like a massive kiss to the Trumpian posterior but if you dig through the details, it’s really just putting a new spin on commitments Apple already made to support their development of Apple’s AI. And in many cases, the capital investment isn’t even coming from Apple. For instance, that new A.I. server manufacturing plant in Houston that was part of the announcement? That plant is actually being built by Apple partner Foxconn, not Apple.

As far as the rest of the Big Tech cabal, including Microsoft, Google and OpenAI, their new alignment with Trump is not surprising. Trump is promising to make the U.S. the undisputed leader in A.I. One would also imagine he would be more inclined than the Democrats to look the other way when it comes to things like anti-trust investigations and enforcement. So Big-Tech’s deferment to Trump is both entirely predictable and completely self-serving. I’m also guessing that all of them think they’re smarter than Trump and his administration, providing them a strategic opportunity to play Trump like a fiddle while pursuing their long-term corporate goals free from any governmental oversight or resistance. All evidence to date shows that they’re probably not mistaken in that assumption.

But all this comes at what cost? This could play out one of two ways. First, what happens if these High-Tech Frat Rat’s bets are wrong? There is an anti-Trump, anti-MAGA revolt building. Who knows what will happen, but in politically unprecedented times like this one has to consider every scenario, no matter how outrageous they may seem. One scenario is a significant percentage of Republicans decide their political future (and, hopefully, the future of the US as a democracy also factors into their thinking) is better off without a Donald Trump in it and start the wheels turning to remove him from power. If this is the case, things are going to get really, really nasty. There is going to be recrimination and finger pointing everywhere. And some of those fingers are going to be pointed at the big tech leaders who scrapped the ground bowing to Trump’s bluster and bullying.

Will that translate into a backlash against high-tech? I really am not sure. To date, these companies have been remarkably adept at sluffing off blame. IF MAGA ends up going down in flames, will Big Tech even get singed as they warm their hands at Donald Trump’s own bonfire of his vanities? Will we care about Big Tech’s obsequiousness when it comes time to order something from Amazon or get a new iPhone?

Probably not.  

But the other scenario is even more frightening: Trump stays in power and Big Tech is free to do whatever they hell they want. Based on what you know about Elon Musk, Mark Zuckerberg, Jeff Bezos and the rest, are you willing to let them be the sole architects of your future? Their about-face on Trump has shown that they will always, always, always place profitability above their personal ethics.

When Branding and Politics Collide

It is the worst timing possible to open a Tesla dealership.

 In Kelowna, the western Canadian city I live in, a new 30,000 square foot Tesla dealership is scheduled to open their doors any day now.  When they do, I’m guessing business will not be brisk. It takes a lot to get Canadians worked up (hockey games aside) but the Trump administration has managed to do something I haven’t seen before in my lifetime – uniting Canadians in a passionate rage. Between picking a totally unjustified trade war with us and continually threatening to make us a 51st State, Donald Trump hasn’t made any friends in my country. And – by extension – that includes his hatchet/chainsaw man and the face of Tesla, Elon Musk.

This is not just happening here in Canada. Tesla owners are having a rough month everywhere. Their cars are being customized with swastikas. Their daily drive is regularly punctuated with middle finger salutes. They are being verbally accosted at Tesla charging stations. And, if they happen to have to go to their dealership, chances are very good that they’ll have to navigate past a pack of protesters. According to the website Actionnetwork.org, there are 101 TeslaTakedown protests scheduled across the US and around the world in the next few weeks.

That is a dramatic turnaround for a car brand that single handedly made driving an electric vehicle cool. The TeslaTakedown campaign is urging drivers to dump their cars and shareholders to sell their stock. A recent survey out of the Netherlands says that one in three Tesla owners are considering selling.

This has nothing to do with whether Teslas are good cars or not. They’re the same vehicles they were 6 months ago. This is simply about branding, and right now, the Tesla brand and Elon Musk are one and the same. That brand is not popular with the majority of the world right now, especially here in Canada.

Like I said – it’s really bad timing to open a new dealership.

As this is all playing out, it got me thinking about another car brand that got on the wrong side of politics 80 years ago. In 1945, Volkswagen was not the 2nd largest car manufacturer in the world, as it is now. It was a shuttered factory in Wolfsburg, Germany that was set to be dismantled by the Allied occupiers, led by the British.  

Volkswagen was founded in 1937 by the Nazi Party’s German Labor Front as a prestige project to show that German workers could produce the world’s best “People’s Car” (which is literally what “Volkswagen” means). That vehicle would be the first prototype of the now much-loved Beetle that we of a certain age immediately associate with Volkswagen. In 1938, Hitler himself christened this the KdF-Wagen, which stood for “Kraft durch Freude” – Strength through Joy. Even the car’s name was a banner for Nazi propaganda.

Eight years later – in 1945 – it was a different story. The Wolfsburg factory was to be dismantled as part of the de-Nazification of German industry and the equipment was to be sent to a British car manufacturer, but none of them wanted it. Three things saved Volkswagen:

  • The design was solid. The wartime version of the VW – the Kubelwagen – was exceptionally reliable
  • There was a desperate need for military transportation in the now occupied zone and there was no manufacturer able to fulfill that need
  • There was a factory ready to go and a skilled workforce who were in danger of starving if they didn’t go back to work

These three things convinced the British trustees to reopen the Wolfsburg plant. By March of 1946, the plant was producing 1000 cars a month.  In 1947, Volkswagen began exporting passenger vehicles to other European markets, including the Netherlands, Switzerland and Denmark. This export model became the Beetle in the form I first knew it.

By the end of the 1950’s, Volkswagen had expanded through Europe and was ready to take on the US, a market dominated by the Big Three (Ford, GM and Chrysler) domestic manufacturers. At the time, almost no imported vehicles were sold in America.

Thanks to an inspired “Think Small” advertising campaign, created by copywriter Julian Koenig and Art Director Helmut Krone from Doyle Dane Bernbach, Volkswagen became the US’s favorite import. The campaign used humor, honesty and irony to spark a love for the VW brand. This branding and the oil crisis of the 1970’s placed VW in the perfect position to capitalize on a sudden market for smaller, more fuel-efficient vehicles. In 1961, Volkswagen passed the 1 million vehicles manufactured per year milestone. By 1972, that had more than doubled to almost 2.2 million cars made per year. Three quarters of those were sold in export markets.

As I said, today the Volkswagen group is now the number 1 or 2 auto manufacturer in the world, depending on which yardstick you use (per unit sales or total revenue). They do fall short on the list of most valuable car companies in the world, based on market capitalization.

So, what is the most valuable car company in the world? Tesla.

For now, anyway.

Is the Customer Always Right?

You can’t always get what you want
But if you try sometimes, well, you might find
You get what you need

The Rolling Stones – 1969

When I retired from marketing 11 years ago, I did a brief stint running a tourism business, putting together custom bike tours. I thought it would be an ideal semi-retirement gig – riding bikes and hanging out with others who loved road cycling. Like many customer facing businesses, we lived and died by ratings. Because we were an experience curator, we regularly dealt with dozens of other tourism-based businesses. We were all dealing in the same currency – those elusive five-star ratings.

In theory, I think customer ratings are a good idea. But there is a dark side – the overly entitled customer that wields the threat of a negative review over the head of a proprietor. By the end of the season, all the operators we were dealing with were burnt out and frustrated. Overt entitlement sucked all the joy out of being in the tourism biz. This trend got much worse as we were pulling out of Covid. It was as if the entitled had doubled down on their demands during the pandemic. That was when I decided to hang up my cycling shoes. Life was too short to stress about catering to a bunch of whiny, demanding guests who threatened to bring the wrath of a bad TripAdvisor review down on me.

The internet’s early promise was to democratize markets that were traditionally asymmetrical. Suddenly, everyone had a voice. And, at first, it was wonderful. But predictably, we found a way to screw it up. Compared to the dumpster fire that is social media, online ratings are not pure evil, but they do have their dark side in a culture full of entitled customers.

If you doubt that North America is narcissistically entitled, I direct you to Jean Twenge and Keith Campbell’s book, the Narcissism Epidemic. Based on years of extensive research, it shows how we have fostered an age of entitlement that lives by the maxim that everyone should be treated special. That is now the baseline of expectation. We have brought this on ourselves, by insisting that we – and especially our children – receive special treatment. But, as any statistician can tell you, we can’t all be above average. Sooner or later, something has to give.

This is especially true in tourism. We all long for that magical, once-in a lifetime vacation. In fact, we now demand it. But that is impossible to deliver on. Just check into the most popular vacation destinations in the world: Paris, Rome, Barcelona, Venice and London. All are creaking under the weight of unprecedented numbers of tourist. And the supporting infrastructure can’t support it. Those places are popular because they have a sense of romance, history and magic. Everyone wants to experience strolling through the secluded streets of Rome at twilight, stopping to toss a coin into the Trevi Fountain.

But the reality is far different. Last year, Rome was invaded by an onslaught of 35 million tourists. Crowds ten to twelve deep push towards the fountain, crushing each other and providing the ideal environment for pick pockets. It’s gotten so bad; the City of Rome is looking at instituting a ticket reservation system to see the fountain.

That is the reality. Over tourism has stripped Rome of its magic. But marketing continues to push the elusive dream of the ideal Roman Holiday, leading us to believe that we’re entitled to that. Everyone else can put up with the crowds and the hassles. But not us – we’re special. And that expectation of special treatment unleashes a vicious cycle. Disappointment is sure to follow. We’ll voice our disappointment by leaving a nasty review somewhere. And some poor tourism operator who’s just trying to keep up will see his or her business slip away as the negative reviews pile up.

I do believe this idea of customer entitlement is particularly prevalent with North Americans. We have constructed it on pagan alter of crazy consumerism, as this post from on the Zendesk Blog by Susan Lahey explains, “ U.S. culture, especially American consumer culture, focuses a lot on making people feel special. After being treated like this in enough scenarios, people come to expect it. Then, when they don’t get their way, they’re upset. They feel like they have a right to act however they want towards others until they’re appeased—which winds up isolating the consumer and shaping their view of the world as ‘me against them.’ “

Lahey provides a counter-example of sustainable consumerism –aligned to a culture that embraces egalitarianism. You’ll find it in what are supposed to be the happiest countries on earth – Finland, Denmark, Iceland and Sweden: “One thing these countries have in common is a set of social norms called the Jante Laws, which say that no one is more special than anyone else. Far from making citizens unhappy, it seems to make them more resilient when they don’t get what they want.”

Less entitlement, more resiliency – that doesn’t sound like a bad plan for the future!

The Political Brinkmanship of Spam

I am never a fan of spam. But this is particularly true when there is an upcoming election. The level of spam I have been wading through seems to have doubled lately. We just had a provincial election here in British Columbia and all parties pulled out all stops, which included, but was not limited to; email, social media posts, robotexts and robocalls.

In Canada and the US, political campaigns are not subject to phone and text spam control laws such as our Canadian Do Not Call List legislation. There seems to be a little more restriction on email spam. A report from Nationalsecuritynews.com this past May warned that Americans would be subjected to over 16 billion political robocalls. That is a ton of spam.

During this past campaign here in B.C., I noticed that I do not respond to all spam with equal abhorrence. Ironically, the spam channels with the loosest restrictions are the ones that frustrate me the most.

There are places – like email – where I expect spam. It’s part of the rules of engagement. But there are other places where spam sneaks through and seems a greater intrusion on me. In these channels, I tend to have a more visceral reaction to spam. I get both frustrated and angry when I have to respond to an unwanted text or phone call. But with email spam, I just filter and delete without feeling like I was duped.

Why don’t we deal with all spam – no matter the channel – the same? Why do some forms of spam make us more irritated than others? It’s almost like we’ve developed a spam algorithm that dictates how irritated we get when we deal with spam.

According to an article in Scientific American, the answer might be in how the brain marshalls its own resources.

When it comes to capacity, the brain is remarkably protective. It usually defaults to the most efficient path. It likes to glide on autopilot, relying on instinct, habit and beliefs. All these things use much less cognitive energy than deliberate thinking. That’s probably why “mindfulness” is the most often quoted but least often used meme in the world today.

The resource we’re working with here is attention. Limited by the capacity of our working memory, attention is a spotlight we must use sparingly. Our working memory is only capable of handling a few discrete pieces of information at a time. Recent research suggests the limit may be around 3 to 5 “chunks” of information, and that research was done on young adults. Like most things with our brains, the capacity probably diminishes with age. Therefore, the brain is very stingy with attention. 

I think spam that somehow gets past our first line of defence – the feeling that we’re in control of filtering – makes us angry. We have been tricked into paying attention to something that was unsuspected. It becomes a control issue. In an information environment where we feel we have more control, we probably have less of a visceral response to spam. This would be true for email, where a quick scan of the items in our inbox is probably enough to filter out the spam. The amount of attention that gets hijacked by spam is minimal.

But when spam launches a sneak attack and demands a swing of attention that is beyond our control, that’s a different matter. We operate with a different mental modality when we answer a phone or respond to a text. Unlike email, we expect those channels to be relatively spam-free, or at least they are until an election campaign comes around. We go in with our spam defences down and then our brain is tricked into spending energy to focus on spurious messaging.

How does the brain conserve energy? It uses emotions. We get irritated when something commandeers our attention. The more unexpected the diversion, the greater the irritation.  Conversely, there is the equivalent of junk food for the brain – input that requires almost no thought but turns on the dopamine tap and becomes addictive. Social media is notorious for this.

This battle for our attention has been escalating for the past two decades. As we try to protect ourselves from spam with more powerful filters, those that spread spam try to find new ways to get past those filters. The reason political messaging was exempt from spam control legislation was that democracies need a well-informed electorate and during election campaigns, political parties should be able to send out accurate information about their platforms and positions.

That was the theory, anyway.

The Relationship Between Young(er) People and Capitalism: It’s Complicated

If you, like me, spend any time hanging out with Millennials or Gen Z’s, you’ll know that capitalism is not their favorite thing. That’s fair enough. I have my own qualms with capitalism.

But with capitalism, like most things, it’s not really what you say about it that counts. It’s what you do about it. And for all of us, Millennials and Gen Z included, we can talk all we want, but until we stop buying, nothing is going to change. And – based on a 2019 study from Epsilon – Gen Z and Millennials are outspending Baby Boomers in just about every consumer category.

Say all the nasty stuff you want about capitalism and our consumption obsessed society, but the truth is – buying shit is a hard habit to break

It’s not that hard to trace how attitudes towards capitalism have shifted over the generations that have been born since World War II, at least in North America. For four decades after the war, capitalism was generally thought to be a good thing, if only because it was juxtaposed against the bogeyman of socialism. Success was defined by working hard to get ahead, which led to all good things: buying a house and paying off the mortgage, having two vehicles in the garage and having a kitchen full of gleaming appliances. The capitalist era peaked in the 1980s: during the reign of Ronald Reagan in the US and the UK’s Margaret Thatcher.

But then the cracks of capitalism began to show. We began to realize the Earth wasn’t immune to being relentlessly plundered. We started to see the fabric of society showing wear and tear from being constantly pulled by conspicuous consumerism. With the end of the Cold War, the rhetoric against socialism began to be dialed down. Generations who grew up during this period had – understandably – a more nuanced view towards capitalism.

Our values and ethics are essentially formed during the first two decades of our lives. They come in part from our parents and in part from others in our generational cohort. But a critical factor in forming those values is also the environment we grow up in. And for those growing up since World War II, media has been a big part of that environment. We are – in part – formed by what we see on our various screens and feeds. Prior to 1980, you could generally count on bad guys in media being Communists or Nazis. But somewhere mid-decade, CEOs of large corporations and other Ultra-Capitalists started popping up as the villains.

I remember what the journalist James Fallows once said when I met him at a conference in communist China. I was asking how China managed to maintain the precarious balance between a regime based on Communist ideals and a society that embraced rampant entrepreneurialism. He said that as long as each generation believed that their position tomorrow would be better than it was yesterday, they would keep embracing the systems of today.

I think the same is true for generational attitudes towards capitalism. If we believed it was a road to a better future, we embraced it. But as soon as it looked like it might lead to diminishing returns, attitudes shifted. A recent article in The Washington Post detailed the many, many reasons why Americans under 40 are so disillusioned about capitalism. Most of it relates back to the same reason Fallows gave – they don’t trust that capitalism is the best road to a more promising tomorrow.

And this is where it gets messy with Millennials and Gen Z. If they grew up in the developed world, they grew up in a largely capitalistic society. Pretty much everything they understand about their environment and world has been formed, rightly or wrongly, by capitalism. And that makes it difficult to try to cherry-pick your way through an increasingly problematic relationship with something that is all you’ve ever known.

Let’s take their relationship with consumer brands, for example. Somehow, Millennials and Gen Z have managed the nifty trick of separating branding and capitalism. This is, of course, a convenient illusion. Brands are inextricably tied to capitalism. And Millennials and Gen Z are just as strongly tied to their favorite brands.

 According to a 2018 study from Ipsos, 57% of Millennials in the US always try to buy branded products. In fact, Millennials are more likely than Baby Boomers to say they rely on the brands they trust. This also extends to new brand offerings. A whopping 84% of Millennials are more likely to trust a new product from a brand they already know.

But – you may counter – it all depends on what the brand stands for. If it is a “green” brand that aligns with the values of Gen X and Millennials, then a brand may actually be anti-capitalistic.  

It’s a nice thought, but the Ipsos survey doesn’t support it. Only 12% of Millennials said they would choose a product or service because of a company’s responsible behavior and only 16% would boycott a product based on irresponsible corporate behavior. These numbers are about the same through every generational cohort, including Gen X and Baby Boomers.

I won’t even delve into the thorny subject of “greenwashing” and the massive gap between what a brand says they do in their marketing and what they actually do in the real world. No one has defined what we mean by a “ethical corporation” and until someone does and puts some quantifiable targets around it, companies are free to say whatever they want when it comes to sustainability and ethical behavior.

This same general disconnect between capitalism and marketing extends to advertising. The Ipsos study shows that – across all types of media – Millennials pay more attention to advertising than Baby Boomers and Gen X. And Millennials are also more likely to share their consumer opinions online than Boomers and Gen X. They may not like capitalism and consumerism, but they are still buying lots of stuff and talking about it.

The only power we have to fight the toxic effects of capitalism is with our wallets. Once something becomes unprofitable, it will disappear. But – as every generation is finding out – ethical consumerism is a lot easier said than done.