Category Archives: Online Trends

The Disintermediation of Everything

First published October 3, 2012 in Mediapost’s Search Insider

Up until five years ago, I had never used the word disintermediation. In fact, if it would have come up in casual conversation, I would have had to pick my way through its bushel of syllables to figure out exactly what it meant.

Today, I am acutely aware of the meaning. I use the word a lot. I would put it up there as one of the three or four most important trends to watch, right up there with the Database of Intentions, which I talked about last week. The truth is, if you’re a middleman and you’re not dead already, you’re living on borrowed time.

Why is the Middle suddenly such a bad place to be? A lot of people have made a lot of money in the Middle for hundreds of years. The Middle makes up a huge part of our economy, including a lot of middle-class jobs. Systematically eliminating it is going to cause a ton of grief. But the process has started, and there’s no turning back now.

Three big shifts are driving disintermediation:

The Democratization of Information

The Middle exists in part because we didn’t have access to what, in game theory, is called perfect information. Either we didn’t have access to information at all, or the information we had was not reliable or useful to us. So, in order to function in the marketplace, we needed a bridge to what information did exist.

Think of travel agents (which for the majority of us, is someone we probably haven’t spoken to for a few years). Travel agents were essential because we were walled off from the information we needed to arrange our own travel. We had no access to the latest airfares, hotel availability or room rates. If you had asked me what was the best hotel in Istanbul, I would have had no clue. We used travel agents because we had no choice.

Today, we do. The travel industry was one of the pioneers in democratizing information. The result? The travel marketplace is infinitely more efficient than it was even a decade ago. The average person can now put together a six-week multi-stop vacation relatively easily.  The middle is being eliminated. In 1998, there were 32,000 travel agencies in the US. Today, through elimination and consolidation, that number is closer to 10,000. Disintermediation has cost thousands of travel agents their jobs.

The Improvement of User Interfaces

When’s the last time you spoke to a bank teller? If you’re like me, it’s probably the last time you had to do something that couldn’t either be done through online banking or at a local ATM.  99% of our banking can now be done quicker and easier because banks have invested in creating platforms and interfaces that enable us to do it ourselves.  It’s better for us as customers, and it’s much more profitable for the banks. Disintermediation in banking has created a more efficient model. Ironically, unlike travel agents, bank tellers have not lost their jobs. They’ve just changed what they do.

The Overcoming of Geography

The final factor is the problem of distance. When mass manufacturing became possible, the distance between the factory and the market started to grow. Suddenly, distribution became a major challenge. Supply chains were born, making a lot of people very rich in the process. Becoming big became essential to overcoming the problem of distance.

But technology has made physical fulfillment much more efficient. Getting a product from the factory floor to your front door is still a challenge, but our ability to move stuff is so much better than it was even a few decades ago. The result? Massive disintermediation. And this particular trend is just beginning.

So What?

Much of what we’re familiar with today is part of the Middle. Just like travel agents, video stores and bank tellers, every year something we have always taken for granted will suddenly disappear. Huge swaths of the economy will be disruptively eliminated. That’s the bad news. The good news will have to wait till next week’s column.

A Decade with the Database of Intentions

First published September 27, 2012 in Mediapost’s Search Insider

It’s been over 10 years since John Battelle first started considering what he called the “Database of intentions.” It was, and is:

The aggregate results of every search ever entered, every result list ever tendered, and every path taken as a result. It lives in many places, but three or four places in particular hold a massive amount of this data (ie MSN, Google, and Yahoo). This information represents, in aggregate form, a place holder for the intentions of humankind – a massive database of desires, needs, wants, and likes that can be discovered, supoenaed, archived, tracked, and exploited to all sorts of ends. Such a beast has never before existed in the history of culture, but is almost guaranteed to grow exponentially from this day forward. This artifact can tell us extraordinary things about who we are and what we want as a culture. And it has the potential to be abused in equally extraordinary fashion.

When Battelle considered the implications, it overwhelmed him. “Once I grokked this idea (late 2001/early 2002), my head began to hurt.” Yet, for all its promise, marketers have only marginally leveraged the Database of Intentions.

In the intervening time, the possibilities of the Database of Intention have not diminished. In fact, they have grown exponentially:

My mistake in 2003 was to assume that the entire Database of Intentions was created through our interactions with traditional web search. I no longer believe this to be true. In the past five or so years, we’ve seen “eruptions” of entirely new fields, each of which, I believe, represent equally powerful signals – oxygen flows around which massive ecosystems are already developing. In fact, the interplay of all of these signals (plus future ones) represents no less than the sum of our economic and cultural potential.

Sharing Battelle’s predilection for “Holy Sh*t” moments, a post by MediaPost’s Laurie Sullivan this Tuesday got me thinking again about Battelle’s “DBoI.” A recent study by Google and EA showed that using search data can predict 84% of video game sales.  But the data used in the prediction is only scratching the surface of what’s possible. Adam Stewart from Google hints at what might be possible, “Aside from searches, Google plans to build in game quality, TV investment, online display investment, and social buzz to create a multivariate model for future analysis.”

This is very doable stuff. All we need to create predictive models that match (and probably far exceed) the degree of accuracy already available. The data is just sitting there, waiting to be interpreted. The implications for marketing are staggering, but to Battelle’s point, let’s not be too quick to corral this simply for the use of marketers. The DBoI has implications that reach into every aspect of our society and lives. This is big — really big! If that sounds unduly ominous to you, let me give you a few reasons why you should be more worried than you are.

Typically, if we were to predict patterns in human behavior, there would be two sources of signals. One comes from an understanding of how humans act. As we speak, this is being attacked on multiple fronts. Neuroscience, behavioral economics, evolutionary psychology and a number of other disciplines are rapidly converging on a vastly improved understanding of what makes us tick. From this base understanding, we can then derive hypotheses of predicted behaviors in any number of circumstances.

This brings us to the other source of behavior signals. If we have a hypothesis, we need some way to scientifically test it. Large-scale collections of human behavioral data allow us to search for patterns and identify underlying causes, which can then serve as predictive signals for future scenarios. The Database of Intentions gives us a massive source of behavior signals that capture every dimension of societal activity. We can test our hypotheses quickly and accurately against the tableau of all online activity, looking for the underlying influences that drive behaviors.

At the intersection of these two is something of tremendous import. We can start predicting human behavior on a massive scale, with unprecedented accuracy. With each prediction, the feedback loop between qualitative prediction and quantitative verification becomes faster and more efficient. Throw a little processing power at it and we suddenly have an artificially intelligent, self-ssimproving predictive model that will tell us, with startling accuracy, what we’re likely to do in the future.

This ain’t just about selling video games, people. This is a much, much, much bigger deal.

The Tricky Intersection of Social and Search

First published September 20, 2012 in Mediapost’s Search Insider

People don’t trust search ads. At least, 64% of people don’t trust search ads.

Apparently, search is not unique. According to the same research, nobody trusts ads of any kind. That’s not really surprising, given that it’s advertising. Its entire purpose is to make us suddenly want crap we don’t need. Small wonder we don’t trust it.

But you know what we do trust? The opinions of our friends.

Nothing I should have said up to this point should come as a shock to anyone reading this column. The only thing I found mildly surprising here was that we had such a low level of trust in search ads. Typically, search advertising is better aligned with intent and less hyperbolic in nature. But, apparently, we marketers have bastardized even the purity of search to the point where it’s less trusted than TV ads (gasp!)

So, to recap, we don’t trust ads, we do trust friends. This seems to present a simple solution: combine the two so that pesky advertising can bask in the halo effect of social endorsement.  You’ve been hearing about this for many years now, including several Search Insider columns from my fellow pundits and myself.

So, given that we’ve been testing the waters for sometime, why haven’t we got this advertising/social thing locked down yet? Why are Facebook stockholders wailing over their deflated portfolios? Why are we still stumbling out of the starting gate in our efforts to marry the magic of social and search? This shouldn’t be rocket science.

In fact, it’s more complex than rocket science. It’s psychology; it’s sociology and at least a handful of other “ologies.” When we talk about combing search and social — or for that matter, any type of advertising and social — we’re talking about trying to understand what makes humans tick.

If we talk about the simplest integration of the two, where social acts as a type of reinforcing influence that is subordinate to the primary act of searching, it’s not hard to follow the train of thought. We search for something, and in the results, we see some type of social badge that indicates how our social connections feel about the options presented to us. In this case, intent is already engaged. Social just serves to grease the decision wheels, helping us differentiate between our options. This type of integration can easily be seen on Google (Plus integration) as well as vertical engines such as TripAdvisor or Yelp.

But that type of integration doesn’t really fire the imagination of marketers and get their market acquisition juices flowing. It’s just hedging your bets on a market that’s already pretty easy to identify and capture. It does nothing to open up new markets. And it’s there where things get muddy.

The problem is this niggling question of intent. Somehow, something needs to activate intent in the mind of the prospect. It’s here where we truly need to be persuaded, moving our mental mechanisms from disengaged to engaged.

To do this, you need to reverse the order of importance between the two channels. Social recommendation needs to be in the driver’s seat, hopefully engaging and moving prospects to the point where they initiate a search. And that’s a much bigger hurdle to get over. Once the order is reversed, the odds of success plummet precipitously.

Here are just a few of the hurdles that have to be cleared:

Trust – Whichever channel is chosen to deliver the social recommendation, it has to be received with trust. This factor can be affected by how the recommendation is presented, the social proof that accompanies it, the aesthetic value of the interface, and the recipient’s attitude towards the channel itself. There is no lack of nuanced detail to consider here.

Alignment of Interest – When the recommendation is delivered, it must be of interest to the recipient. This relies on an accurate assessment of context and intent. Whatever the targeting channel, there has to be a pretty good chance of delivering the right message at the right time.

Social Modality – So, let’s assume you’ve figured out how to get the first two things right – you are using a trusted channel and you’ve done a good job of targeting. You’re not home free yet. Here’s the thing – we don’t act the same way all the time. We adapt our behaviors to fit the social circumstances we are currently in. There are predetermined modes of behavior that we conform to. It’s why we act one way with our coworkers and another way with our children. It’s why it’s okay to tip a waiter in a restaurant, but not okay to tip your mother-in-law after Sunday dinner. This modality is carried over from the real world to the virtual world of social networks. And it’s very difficult to determine what mode a prospect may be in. But it can make all the difference in the success of a socially targeted advertising message.

The Fight for Attention – This is the big one. Even if you do everything else right, your odds for successfully capturing the attention of a prospect and holding it for long enough to generate actual consideration of your product are not nearly as good as you might hope. You’d probably do better at a Vegas craps table. It all depends on what the incumbent’s intent is. What brought her to the online destination where you managed to intercept her? How critical is it that she finish what she’s currently doing? How engaged is she in the task at hand?

With the first example of search/social integration (search first, social second), the odds for success are pretty high, because intent has already been established. You’re just using social endorsement to expedite a process that’s already in motion.

But in the second example (social first, search second), we’re talking about an entirely different ball game. You have to derail the incumbent intent and replace it with a new one. Think of it as the difference between pushing a car downhill that’s already started to roll, and pushing the same car from a standing start up the hill.

No wonder we’re having some difficulty getting things rolling.

Climbing the Slippery Slopes of Mount White Hat

First published August 30, 2012 in Mediapost’s Search Insider

On Monday of this week, fellow Search Insider Ryan DeShazer bravely threw his hat back in the ring regarding this question: Is Google better or worse off because of SEO?

DeShazer confessed to being vilified after a previous column indicated that Google owed us something. I admit I have a column penned but never submitted that Ryan could have added to the “vilify” side of that particular tally. But in his Monday column, Ryan touches on a very relevant point: “What is the thin line between White Hat and Black Hat SEO?” For as long as I’ve been in this industry (which is pushing 17 years now) I’ve heard that same debate. I’ve been at conference sessions where white hats and black hats went head to head on the question. It’s one of those discussions that most sane people in the world could care less about, but we in the search biz can’t seem to let go.

Ryan stirs the pot again by indicating that Google may be working on an SEO “Penalty Box”: a temporary holding pen for sites that are using “rank modifying spammers” where results will fluctuate more than in the standard index. The high degree of flux should lead to further modifications by the “spammers” that will help Google identify them and theoretically penalize them. DeShazer’s concern is the use of the word “spammers” in the wording of the patent application, which seems to include any “webmasters who attempt to modify their search engine ranking.”

I personally think it’s dangerous to try to apply wording used in a patent application (the source for this speculation) arbitrarily against what will become a business practice. Wording in a patent is intended to help convey the concept of the intellectual property as quickly and concisely as possible to a patent review bureaucrat. The wording deals in concepts that are (ironically) pretty black and white. It has little to no relationship to how that IP will be used in the real world, which tends to be colored in various shades of gray. But let’s put that aside for a moment.

Alan Perkins, an SEO I would call vociferously “white hat,” some years ago came up with what I believe is the quintessential difference here. Black hats optimize for a search engine. White hats optimize for humans.  When I make site recommendations, they are to help people find better content faster and act on it. I believe, along with Perkins, that this approach will also do good things for your search visibility.

But that also runs the danger of being an oversimplification. The picture is muddied by clients who measure our success as SEO agencies by their position relative to their competitors on a keyword-by-keyword level. This is the bed the SEO industry has built for itself, and now we’re forced to sleep in it. I’m as guilty as the next guy of cranking out competitive ranking reports, which have conditioned this behavior over the past decade and a half.

The big problem, and one continually pointed out by vocal grey/black hats, is that you can’t keep up with competition who are using methods more black than white by staying with white-hat tactics alone. The fact is, black hat works, for a while. And if I’m the snow-white SEO practitioner whose clients are repeatedly trounced by those using a black hat consultant, I’d better expect some client churn. Ethics and profitably don’t always go together in this industry.

To be honest, over the past five years, I’ve largely stopped worrying about the whole white hat/black hat thing. We’ve lost some clients because we weren’t aggressive enough, but the ones who stayed were largely untouched by the string of recent Google updates targeting spammers. Most benefited from the house cleaning of the index. I’ve also spent the last five years focused a lot more on people and good experiences than on algorithms and link juice, or whatever the SEO flavor du jour is.

I think Alan Perkins nailed it way back in 2007. Optimize for humans. Aim for the long haul. And try to be ethical. Follow those principles, and I find it hard to imagine that Google would ever tag you with the label of “spammer.”

Living a B-Rated Life

First published August 16, 2012 in Mediapost’s Search Insider

I love ratings and reviews — and I’m not alone.  4.7 people out of 5 people love reviews. We give them two thumbs up. They rate 96.5% on the Tomato-meter.  I find it hard to imagine what my life would be without those ubiquitous 5 stars to guide me.

This past weekend, I was in Banff, Alberta for my sister’s wedding. My family decided to find a place to go for breakfast. The first thing I did was check with Yelp, and soon we were stacking up the Eggs Benny at a passable breakfast buffet less than two miles from our hotel. I never knew said buffet existed before checking the reviews — but once I found it, I trusted the wisdom of crowds. It seldom steers me wrong.

Now, you do have to learn how to read between the lines of a typical review site. Just before heading to my sister’s wedding, I spent the day in Seattle at the Bazaar Voice user event and was fascinated to learn that their user research shows that the typical number of reviews scanned is generally about seven. Once people hit seven reviews, they feel they have a good handle on the overall tone, even if there are 1,000 reviews in total. This seems right to me. It’s about the number of reviews I scan if possible.

But we also rely on the average rating summaries that typically show above the individual reviews and comments. When I read a review, I tend to follow these rules of thumb:

  • Look for the entry with the most reviews.
  • Find one that has a high average, but be suspicious of ones that have absolutely no negative reviews (unusual if you follow Rule One).
  • Scan the top six or seven reviews to get an overall sense of what people like and dislike.
  • Sort by the most negative reviews and read at least one to see what people hate.
  • Decide whether the negative reviews are the result of a one-off bad experience, or possibly an impossible-to-please customer (you can usually pick them out by their comments).
  • Do the “sniff test” to see if there are planted reviews (again, they’re not that hard to pick out).

I’ve used the same approach for restaurants, hotels, consumer electronics, cars, movies, books, hot tubs – pretty much anything I’ve had to open my wallet for in the past five or six years. It’s made buying so much easier. Ratings and reviews are like the Cole’s notes of word of mouth. They condense the opinions of the marketplace down to the bare essentials.

It’s little wonder that Google is starting to invest heavily in this area, with recent acquisitions of Zagat and Frommer’s. These are companies that built entire businesses on eliminating risk through reviews. The aggregation and organization of opinion is a natural extension for search engines. Of course, we should give it a fancy name, like “social graph,”, so we can sound really smart at industry conferences, but the foundations are built on plain common sense. Our attraction to reviews is hardwired into our noggins. We are social animals and like to travel in packs.  Language evolved so we could point each other to the best cassava root patch and pass along the finer points of mastodon hunting.

As Google acquires more and more socially informed content, it will be integrated into Google’s algorithms. This is why Google had to launch its own social network. Unfortunately, Google+ hasn’t gained the critical mass needed to provide the signals Google is looking for. I personally haven’t had a Google+ invite in months. Despite Larry Page’s insistence that it’s a roaring success, others have pointed out that Google+ seems to be a network of tire kickers, with little in the way of ongoing engagement. Contrast that with Pinterest, which is all the various women in my life seem to talk about — and is outperforming even Twitter when it comes to driving referrals.

I personally love the proliferation of structured word-of-mouth. Some say it negates serendipity, but I actually believe I will be more apt to explore if there is some reassurance I won’t have a horrible experience. Otherwise, this weekend my family and I would have been having Egg McMuffins at the Banff McDonald’s — and really, is that the life you want?

Three Catalysts for Healthy Social Networks

First published August 2, 2012 in Mediapost’s Search Insider

Look at any graphic representation of a social network, and you will see a somewhat globular cluster of nodes — and, at the center, you’ll find the subject or owner of the network. The density of the nodes will be greater near the center, but there will be small clusters of interconnected nodes that will appear throughout the map. This pattern, the visual interpretation of human connection, looks much the same now as it did for tribal humans 100,000 years ago. But there is one important difference. Then, you probably only had one network you belonged to, which was defined by geography. Today, you can belong to many networks, and they’re often defined by ideas.

Connecting the nodes in a typical social network map are small lines representing the glue, or ties, of the network. At the simplest level, a network can consist of just two nodes and one line, called a dyad. The line represents the relationship between the two nodes. But what is the raw material of that line? What causes it to exist in the first place? Sometimes, we can find clues in language. If that line represents a relationship, what causes two people to relate to each other? The word relation comes from the Latin noun relatio, which has two relevant meanings: carrying back and to narrate. Both meanings depend on communication. Communication, in turn, has its etymological roots in the latin comoenus, which means shared. From this, we see the structure of a network depends on both the sharing of a common concept (a value, goal or ideal) and communication. These are the raw materials of those little links in the diagram.

Those who analyze social network structure often look for reciprocity in those links: are they two-way links?  Reciprocity is hardwired into humans. Evolutionary biologists and behavioral economists have found that the most successful survival strategy is something called “tit for tat.” Even if you’re among the 46% of Americans who don’t believe in evolution, you still can’t ignore reciprocity. Every single religion has as one of its tenets its own variation of the Golden Rule: Do unto others as you would have them do unto you. It all comes down to the same thing: it’s not beneficial to keep investing in a one-way relationship. If we keep inviting you for dinner and you never invite us, sooner or later the invitations will stop coming (offspring and certain relatives being the exception — and then there’s another whole evolutionary dynamic at play).

Here we have the three foundations for a stable social network: communication, sharing and reciprocity. Not exactly rocket science, just plain common sense. Yet it’s amazing how often we lose sight of these three things when we start applying them to our marketing efforts. Let’s take just one example. Look at any company’s social presence, whether it‘s their Facebook page, their Twitter feed or their Linked In profile, and see if there’s evidence of reciprocity. Is all the communication going out, or are people responding? Active user feedback is one of the primary signals we look for in a healthy social network.

Another signal is clear evidence of shared values. As I’ve said before, frequency of engagement (especially if it’s of the nonreciprocal variety) does not lead to brand loyalty, but shared values do. Are the values of an organization clearly evident in their social outposts? Are there active conversations based on those shared values?

Finally, we have communication. Marketers have to take every opportunity to facilitate communication. Often, commercial social networks are based on the sharing of required information. Companies (especially in the B2B space) have to become much better at sharing the wealth of information they have in their own particular industry. They have to start thinking like publishers. And they have to enable forums to allow for active feedback.

Get these three things right, and strong social networks will grow organically.

Marissa Mayer and Yahoo’s Regression to the Mean

First published July 26, 2012 in Mediapost’s Search Insider

There is not a lot of overlap between the universes of Gord Hotchkiss and Marissa Mayer, but our orbits have intersected on a few occasions in the past. I’ve had the opportunity to talk to Mayer about various aspects of search on a handful of occasions, so it was with some interest that I watched the announcement and subsequent buzz about her appointment as Yahoo CEO.

Much has been said about Mayer’s personal qualifications for the job, and the general consensus is that this is a good thing for Yahoo. If this were a movie, I’m thinking she would score an 82% on the Tomatometer, handily qualifying as “fresh.” Personally, I would agree. Mayer has a razor-sharp (and somewhat intimidating) intellect, a core love for search and an innate sense of what’s right for the user. All of these things will be big plusses for Yahoo. What she hasn’t been tested on is her ability to run a big company. And that’s where things could get interesting.

No doubt Google still imparts its own “halo” effect on anyone who has spent time at the “Plex” in a leadership position. And few have spent as much time there as Mayer, who, as hire number 20, was Google’s first female engineer, logging 13 years with bosses (and hopefully still friends) Page and Brin.  These three tied a tight little knot in the early days of Google, but from the outside, that knot seems to have frayed just a little in the past few years. Mayer’s recent moves in the company have been more lateral than vertical, as later additions to the Google team were promoted above her. Undoubtedly, this was a contributing factor to the parting of the ways with Google.

But how much value does Mayer’s vast inside knowledge of Google and its past successes bring to Yahoo? It must have played a major role in her selection as the new chief Yahooligan. But was she instrumental in the streak of seemingly picture-perfect management calls in the early days of the Internet’s Golden Child? And, even if she were, does it really matter?

Earlier this year, I took part in an open forum on search at an industry conference. Our moderator tossed a ticking time bomb at the panel, in the form of this delicately stated question: “What the #%^&$ is Google doing lately? Have they gone insane?” We each offered our opinions, which ranged in the degree of madness ascribed to Google’s executives. I started my response with this, “I think we tend to downplay the role luck played in the early days of Google. Maybe their luck is just running out.”

There is a much fancier name for the hypothetical situation I described, which is called “regression to the mean.”  In his recent book, “Thinking, Fast and Slow,” (a HIGHLY recommended read) psychologist and Nobel laureate Daniel Kahneman explores how this can lead us to overvalue executive talent when it’s combined with the halo effect. Kahneman even uses Google as an example: “Of course there was a great deal of skill in the Google story, but luck played a more important role in the actual event than it does in the telling of it. And the more luck was involved, the less there is to be learned.”

Regression to the mean simply means that when you take a snapshot in time that represents either exceptionally good or bad performance, subsequent snapshots tend to move closer to the average. And those highs and lows generally involve luck to some extent. So you can poach talent from a company on a hot streak, only to find that it wasn’t the executives responsible for the performance, but simply the planets aligning in a favorable way.

As an ex-CEO of a company, albeit a tiny one, I find it hard to swallow that leadership might not be as important as we think in the fortunes of a company. But I generally find Kahneman to be an incredibly astute observer of human errors in judgment, so I have to resist the urge to go with my own cognitive biases here and trust Kahneman’s research.  He doesn’t say leadership is inconsequential, but he does caution against ignoring the role of timing and sheer luck.

This is also not to downplay the role Marissa Mayer will play in the future of Yahoo.  Somebody has to lead the company, and Mayer is at least as good a choice as anyone else I can think of.

Who knows? Maybe Yahoo’s luck is due to change. In their case, “regression to the mean” means there’s no place to go but up.

A Look at the Future through Google Glasses?

First published June 7, 2012 in Mediapost’s Search Insider

“A wealth of information creates a poverty of attention.” — Herbert Simon

Last week, I explored the dark recesses of the hyper-secret Google X project.  Two X Projects in particular seem poised to change our world in very fundamental ways: Google’s Project Glass and the “Web of Things.”

Let’s start with Project Glass. In a video entitled “One Day…,” the future seen through the rose-colored hue of Google Glasses seems utopian, to say the least. In the video, we step into the starring role, strolling through our lives while our connected Google Glasses feed us a steady stream of information and communication — a real-time connection between our physical world and the virtual one.

In theory, this seems amazing. Who wouldn’t want to have the world’s sum total of information available instantly, just a flick of the eye away?

Couple this with the “Web of Things,” another project said to be in the Google X portfolio.  In the Web of Things, everything is connected digitally. Wearable technology, smart appliances, instantly findable objects — our world becomes a completely inventoried, categorized and communicative environment.

Information architecture expert Peter Morville explored this in his book “Ambient Findability.”  But he cautions that perhaps things may not be as rosy as you might think after drinking the Google X Kool-Aid. This excerpt is from a post he wrote on Ambient Findability:  “As information becomes increasingly disembodied and pervasive, we run the risk of losing our sense of wonder at the richness of human communication.”

And this brings us back to the Herbert Simon quote — knowing and thinking are not the same thing. Our brains were not built on the assumption that all the information we need is instantly accessible. And, if that does become the case through advances in technology, it’s not at all clear what the impact on our ability to think might be. Nicholas Carr, for one, believes that the Internet may have the long-term effect of actually making us less intelligent. And there’s empirical evidence he might be right.

In his book “Thinking, Fast and Slow,”Noble laureate Daniel Kahneman says that while we have the ability to make intuitive decisions in milliseconds (Malcolm Gladwell explored this in “Blink”), humans also have a nasty habit of using these “fast” mental shortcuts too often, relying on gut calls that are often wrong (or, at the very least, biased) when we should be using the more effortful “slow” and rational capabilities that tend to live in the frontal part of our brain. We rely on beliefs, instincts and habits, at the expense of thinking. Call it informational instant gratification.

Kahneman recounts a seminal study in psychology, where four-year-old children were given a choice: they could have one Oreo immediately, or wait 15 minutes (in a room with the offered Oreo in front of them, with no other distractions) and have two Oreos. About half of the children managed to wait the 15 minutes. But it was the follow-up study, where the researchers followed what happened to the children 10 to 15 years later, that yielded the fascinating finding:

“A large gap had opened between those who had resisted temptation and those who had not. The resisters had higher measures of executive control in cognitive tasks, and especially the ability to reallocate their attention effectively. As young adults, they were less likely to take drugs. A significant difference in intellectual aptitude emerged: the children who had shown more self-control as four year olds had substantially higher scores on tests of intelligence.”

If this is true for Oreos, might it also be true for information? If we become a society that expects to have all things at our fingertips, will we lose the “executive control” required to actually think about things? Wouldn’t it be ironic if Google, in fulfilling its mission to “organize the world’s information” inadvertently transgressed against its other mission, “don’t be evil,” by making us all attention-deficit, intellectual-diminished, morally bankrupt dough heads?

Will Google X Get Google’s Mojo Back?

First published May 31, 2012 in Mediapost’s Search Insider

What do you do when the search engine you started up with your fellow uber-geek partner makes you fabulously wealthy, but somehow all the billions it’s raking in leaves you feeling rather empty?

What do you do when you’re no longer the darling of the mainstream press, who once enthused that no challenge was too daunting for you and your company full of exceptionally gifted and only slightly less egotistical baby geniuses?

Well, if you’re Sergey Brin, you find a new toy. You leave the mind-numbingly mundane business of running a multibillion-dollar mega-corporation to your power-tripping co-founder, and you lock yourself away in an undisclosed office somewhere in Silicon Valley, spending your day playing with robots, space elevators, virtual reality glasses and self-driving cars.

You go back to what you wanted to do in the first place, which was to “put a ding in the universe.” And it’s probably no coincidence that you’re following in the footsteps of your “love me or hate me” mentor, the late Steve Jobs.

Say what you want about Google, I don’t think there’s any doubt that Brin and Page wanted to change the world in substantial (and hopefully non-evil) ways when they started. But the business of running a business tends to make one put ideals on hold and focus on the bottom line. Taking your company public doesn’t help. Shareholders typically value revenue over revolution, profits over prophesy. “Sure, robots and space elevators are cool, but tell me how that’s going to contribute to our quarterly earnings?” Public companies, by necessity, tend to focus on the short term rather than the long.

But Brin has never been a short-term guy. Neither has Page, for that matter. They both love to take something and spin it into a grandiose vision. For Page, he felt he could best realize that by taking over the leadership of Google. But for all the power that comes with that role, there’s also a heaping helping of compromise. Brin apparently felt more comfortable in the more idealistic environs of the Google-X Lab.

If you’re not familiar with Google X, it’s a super-secret hidden laboratory where an ultra-powerful super computer and high tech gadgets allow the billionaire to fight crime… no, wait, that’s the Bat Cave. Google X is a secret laboratory where Brin has been spending a lot of time lately. In a New York Times article from last November, it’s described as a, “clandestine lab where Google is tackling a list of 100 shoot-for-the-stars ideas. Google is so secretive about the effort that many employees do not even know the lab exists.”

What are some of these “shoot-for-the-star” ideas? There is no definitive list, given the “hush hush” nature of Google X, but third-party reports commonly mention space elevators, driverless cars, connected household appliances, and one project that is starting to see the light of day: Google Glass, wearable technology that someday could bring a Google interface to the world around us (more about this in a future column).

Google X certainly doesn’t suffer from a lack of ambition. It’s the type of thing we used to routinely expect from the Google we knew and loved.  And it’s got oodles of “cool”: robots and space elevators and driverless cars, oh my! But these types of skunk work projects are often just a way to pacify a few highly placed egos and keep them out of the way while the real work of the company gets done by those who are a little less grandiose in their ambitions.

And Google X does suffer from Google’s long-term problem of trying to do everything at once. The company has always had a problem with focus. Unlike Google X, Jobs’ lofty ambitions and breakaway projects at Apple were tied to a product that would ship sometime in the next decade. Don’t expect to see a space elevator coming to your neighborhood anytime soon.

So the question remains: Will Google X define the future of Google, or is it just a plaything to keep Sergey happy? Only time will tell.

Living Beyond Our Expectations

First published May 25, 2012 in Mediapost’s Search Insider

To my father-in-law, the Internet is a big black box that he doesn’t understand, but inside of which, all is possible. This became clear to me after the following conversation:

F-I-L: Gord?

Me: Yes?

F-I-L: Can you go on your computer and find the combination for my safe?

Me: Huh?

F-I-L: I have an old safe that I locked years ago and I can’t remember the combination. I thought you could probably find it on your computer.

Of course, by “computer,” he meant the Internet. To him, the Internet is the sum collection of all information, and in that, he’s not far wrong. Chances are, in some archive of manufacturer’s data somewhere, the lost combination probably exists. If it does, it’s just one database call away from being public. One would hope that this information would always remain private, but my point is, as naïve as my father-in-law’s question seems to be, it’s probably not that far removed from reality.

Technology and our expectations of what’s possible also seem to play a game of cat and mouse.  No matter what we dream up, it seems that it becomes reality in the blink of an eye. In fact, I suspect that technology now regularly outpaces our wildest dreams. Almost anything is possible, at least in theory. If it doesn’t exist, it’s probably just that it’s not practical. Nobody has bothered to put in the effort to make it happen.

Consider marketing intelligence, for instance. Remember the first time you encountered what John Battelle dubbed the “database of intentions”? It was Google’s query data, and Battelle had what he called a “Holy Sh*t” moment when he realized:

This information represents, in aggregate form, a place holder for the intentions of humankind – a massive database of desires, needs, wants, and likes that can be discovered, supoenaed, archived, tracked, and exploited to all sorts of ends. Such a beast has never before existed in the history of culture, but is almost guaranteed to grow exponentially from this day forward. This artifact can tell us extraordinary things about who we are and what we want as a culture. And it has the potential to be abused in equally extraordinary fashion.

For marketers, Google had provided us with the biggest source of marketing intelligence ever compiled. It was the crystallization of consumer intent, in searchable form. We collectively salivated over it.

But that was a decade ago. Now, as marketers, we routinely curse the gaps in and shortcomings of Google’s query data. As powerful as it once seemed, our expectations have leapfrogged ahead of it.

Battelle has recently updated his definition of the database of intent, adding four new “fields” to it. Originally there was the search “query,” signaling “what I want.” Now, the “social graph” indicates “who I am” and “who I know.” The “status update” signals “what I’m doing” and “what’s happening.” The “check-in” signals “where I am.” And the “purchase” signals “what I’m buying.”

For a marketer, this is mind-blowing stuff.  The trick, of course, is to bring this all together in a meaningful way. To do so, there are multiple technology, intellectual property and privacy hurdles to get over. But it’s all very doable. It’s administration, not technology, that’s holding us back. A big part of Facebook’s IPO valuation was based on successfully pulling this off.

Again, technology has dangled a possibility at the leading edge of our expectations. But it will happen. And when it does, it will suddenly seem ho-hum to us. Our expectations will rocket forward to another possibility.

But even as fast as our expectations move, I guarantee, somewhere, someone is already working on something that lies beyond anything we ever dreamed of. Thank goodness our expectations are as elastic as they seem to be.