This is a story about selling eyeballs...
You ever wonder why your email is free, Facebook is free, YouTube is free, most of the stuff you can find on the internet is free?
Most companies need to have either a freemium or an ad-supported business model now. Most businesses must endure an army of freetards, who demand the highest possible product standards, but aren't prepared to pay a penny. They will spend their precious time criticising you and your product, but they won't spend a single cent.
In the fierce race to capitalise a market, to monopolise, to acquire the biggest number of users, companies must invest so much in their products, and not hamper growth by introducing advertising too intrusively, or by making people pay.
There's really only one place that things can end up: the biggest players dominate everything, and have to fight over a finite amount of ad revenue and market insight data. Eventually, one tech company can do it all, own it all, dominate the entire market.
At the moment Facebook is the clear favourite for me. I spend far more time looking at curated content on Facebook, than I do searching for new content via Google or on YouTube. I'm interested in what my friends are interested in. My Facebook feed contains far more things that I'm interested in than I can possibly read and watch during my waking hours. There simply isn't enough time left for me to do my own content discovery.
Facebook has also started to take over from my use of email and instant messaging services. It's a kinda convenient one-stop-shop for staying in touch with my network of friends and family. It's all nicely bundled together in one place. You can cancel your account any time you want, but you can never leave.
Google's arse is being well and truly kicked at the moment, in terms of growth. Facebook knows so much about us, the advertising can be super targeted. Facebook knows where I've been, who I've been there with, when I went there, how often I go there. It knows where I went to school, what I studied. It knows who my family are. It knows who I stay most in contact with. It knows what I 'like' and what links I click on. It knows what videos I watch, and what content I scroll right past.
Ok, so I'm an early adopter. I sometimes queue up to get Apple products on the day they launch. Apple are presently the world's biggest company, by market capitalisation (number of shares in issue, multiplied by the share price) but they're far more anti-competitive than Microsoft ever were. Safari comes pre-installed on my Macbook and I never get asked if I would like a different browser.
Apple are trying to dominate the ad space by forcing app developers to go through their iAds platform and blocking any other advertising. They're trying to leverage their strong position as a software and hardware platform, to gain the biggest share of the lucrative advertising revenue. Eventually, they're going to land up in legal hot water.
Facebook is far better placed to become the dominant platform for advertisers and companies looking to gain market insight. It's entirely fair that when I use a free website, that the terms and conditions state that they can show me adverts and use my data. It's not fair that when I buy a £600 smartphone, it somehow limits what I can see on the internet. It's not fair if Apple start selling my private location data, my phone usage habits etc.
In the bizarre world of the battles between the world's largest tech companies, you might be surprised to learn that for every Google Android phone sold, Microsoft make the most profit. That's because Google have to pay patent royalties to Microsoft. The important silicon chips inside your smartphone, make a healthy profit for a company that didn't even manufacture them. That company is ARM, who license the chip designs to manufacturers, and take a royalty payment for every chip that gets made.
The legal battles that are brewing will eclipse everything ever seen before. The amount of money that is at stake is unprecedented.
But what happens if you extrapolate? Well, basically, you will probably get given a free phone, the whole concept of paying for software or subscription services will completely disappear, but your privacy, your data will be completely up for grabs to the highest bidder, along with your eyeballs, which will be continually bombarded by targeted ads.
Ancillary industries, like music and film production, and writing, will be consumed into this dominant giant, and high quality content will only exist as the bait for your eyeballs. You won't be able to read another book without there being some kind of product placement having been woven into the plot. Authors have to eat too.
The fact is, that the era of the busker or the indie musician is over. People think that the number of Facebook fans that you have or the number of Twitter followers is somehow directly monetisable, so the idea of chucking 50 pence into a hat or paying for music is unthinkable to the freetard army.
Naturally, with all the advertising money washing around, people who are creating content, simply because they are creative individuals with time and talent on their hands, are simply drowned out in a sea of noise created by the paid content creators. You have no money to market your content, so nobody will even find it or consume it. There's no reason for it to exist, if it's not pushing some product or service.
In fact, traditional goods & services are having their revenues squeezed. Why would you buy a travel guidebook when you have TripAdvisor and a load of ad-supported websites that you can browse on your smartphone, virtually anywhere in the world? The fact that the travel guidebook at least maintains a degree of commercial impartiality is missed by many people, who will end up eating in restaurants or staying in hotels that have paid to be written about.
We don't tend to pay at all, or pay very little, for our news sources. That means that those news outlets are getting the lions share of their revenue from advertising, which exercises at least a kind of censorship over unfavourable news coverage, if not outright direction over how real life events are reported. How can you trust news sources with such commercial interests behind them?
You might think that because I've hacked away at some bit of software, making an app or a website, in some trendy co-working space in the heart of Tech City, that's the reason why it's trending on Twitter, that's the reason it's 'going viral'. Actually, most social media campaigns - even the viral ones - are planned and executed by a sophisticated service industry that caters to those who wish to market themselves using the modern mediums.
I often wonder what the point of Twitter is. I have a bot that follows somebody, and their bot messages me back to say thanks for following them. Are there any real people on Twitter, or is it all bots, releasing content at strategically timed intervals, and doing their robotic interactions in a way that's been designed to appear humanlike?
We have loads of stats & data that tell us about content engagement. How much do we mould ourselves, and how we act, in order to increase that engagement? How often do we think about how many 'likes' we're going to get on a Facebook comment, just before we hit the 'post' button.
Frankly, I've tried to detach myself. I'm just writing relatively blindly. I can see how many Facebook likes I get and I can see how many link clicks I get on Twitter, but broadly speaking, I have no idea how many people read what I write, when they read it, where they're based in the world. If I did have those stats, that data, it could start to corrupt the integrity of what I'm trying to do.
That's the most interesting thing of all to me. That I've been able to write the equivalent of two novels of content, and publish it into the public domain, with barely anybody noticing. That shows just how much noise there is out there. That shows just how much content everybody is churning out, into the ether. I could have whispered all my secrets into the hollow of an ancient tree that was about to be felled, for all the difference it would have made to the world.
It felt daring at first, churning this stuff out. But now there's just this dawning realisation that everybody's doing the same thing. There's so many "me too!" folks and wannabe authors, musicians and filmmakers out there in the big wide world, that you can really say or do anything you want, safe in the anonymity of noise.
Welcome to the global silent disco. Headphones on, zoned out
