Thought Starters: Google I/O, property puzzle in England and rates of innovation

Thought Starters provides me with a chance to review and highlight some of the more important or interesting research and opinions that I’ve read over the last week or so. This edition looks at Google and Apple at a crossroads, England’s property market and questions over the rate of innovation among other things:

Whilst many technological and social indicators point to the lead that Western Europe and North America has over the developing world, there are cases where incumbent infrastructure slows down the introduction of new technologies. An example of this from  the World Economic Forum is the lead Sub-Saharan Africa has in mobile money accounts, aided by the lack of traditional financial services infrastructure:

Sub-Saharan Africa has worlds largest share of mobile money accounts

Interesting benchmark figures from Pew Research on the use of online services by the American population. There’s obviously plenty of opportunity for growth still across many different categories:

72% of Americans have used some type of shared or on-demand online services

Google I/O developer conference happened on Wednesday which saw the launch of new virtual reality, mobile messaging, smart home and virtual assistant platforms and updates for Android, Android Wear and Android Auto. It’s worth checking out The Verge’s coverage of the leading announcements if you’re wanting more details on what to expect in the coming months.

Ben Thompson has an interesting follow on to the conference pointing to Google’s technical process but also suggesting that other factors at play are likely to hamper the organisation’s success:

The problem is that as much as Google may be ahead, the company is also on the clock: every interaction with Siri, every signal sent to Facebook, every command answered by Alexa, is one that is not only not captured by Google but also one that is captured by its competitors. Yes, it is likely Apple, Facebook, and Amazon are all behind Google when it comes to machine learning and artificial intelligence — hugely so, in many cases — but it is not a fair fight. Google’s competitors, by virtue of owning the customer, need only be good enough, and they will get better. Google has a far higher bar to clear — it is asking users and in come cases their networks to not only change their behavior but willingly introduce more friction into their lives — and its technology will have to be special indeed to replicate the company’s original success as a business.

Another company that’s had a strong run but for which the future is harder to anticipate is Apple. Marco Arment has been a valuable commentator and proponent of Apple and its broader ecosystem and his concerns about Apple’s long term health should definitely be taken seriously:

But if Google’s right, it won’t be enough to buy Siri’s creators again or partner with Yelp for another few years. If Apple needs strong AI and big-data services in the next decade to remain competitive, they need to have already been developing that talent and those assets, in-house, extensively, for years. They need to be a big-data-services company. Their big-data AI services need to be far better, smarter, and more reliable than they are. And I just don’t see that happening.

As a venture capitalist, David Pakman has a vested interest in a more entrepreneurial music ecosystem. That being said, I do believe he has a strong point talking about how major record labels are squeezing some of the innovation out of the music sector:

In my mind, it would have been in the long-term best interests of the recorded music business to enable the widespread success of thousands of companies, each paying fair but not bone-crushing royalties back to labels, artists and publishers. But the high royalty rates imposed upon startups, even after clear signs over the past 19 years that the strategy killed companies, prevented a healthy ecosystem from emerging. It’s a bed the music industry made for itself, and now it is left to lie in it.

Whilst there’s a been a lot of talk about the polarisation of incomes in the West, research from Walter Frick points to a similar polarisation in corporate performance with leading firms galloping ahead of everyone else:

The gap between the most productive firms and the rest is growing

Donald Trump’s nomination for the Republican party is pretty much a given now, and I’m glad to see more and more commentators coming out to express their opposition to his candidacy. Robert Kagan’s is definitely among the more eloquent, let’s just hope the US population listens to reason:

And the source of allegiance? We’re supposed to believe that Trump’s support stems from economic stagnation or dislocation. Maybe some of it does. But what Trump offers his followers are not economic remedies — his proposals change daily. What he offers is an attitude, an aura of crude strength and machismo, a boasting disrespect for the niceties of the democratic culture that he claims, and his followers believe, has produced national weakness and incompetence. His incoherent and contradictory utterances have one thing in common: They provoke and play on feelings of resentment and disdain, intermingled with bits of fear, hatred and anger. His public discourse consists of attacking or ridiculing a wide range of “others” — Muslims, Hispanics, women, Chinese, Mexicans, Europeans, Arabs, immigrants, refugees — whom he depicts either as threats or as objects of derision. His program, such as it is, consists chiefly of promises to get tough with foreigners and people of nonwhite complexion. He will deport them, bar them, get them to knuckle under, make them pay up or make them shut up.

The UK referendum on whether the country chooses to leave the European Union is fast approaching leading to some scaremongering  from the pro Brexit camp.  Providing a rather different perspective is research from Philippe Legrain who points out the economic benefits potentially provided by the influx of refugees to Europe:

Refugees who arrived in Europe last year could repay spending on them almost twice over within just five years, according to one of the first in-depth investigations into the impact incomers have on host communities.

Refugees will create more jobs, increase demand for services and products, and fill gaps in European workforces – while their wages will help fund dwindling pensions pots and public finances, says Philippe Legrain, a former economic adviser to the president of the European commission.

Over the following decade, England’s population rose by 4.1m while its housing stock rose by only 1.7m, something which any economist will tell you is going to cause some problems. This shortage is exacerbated by disparities between local authorities as The Economist recently mapped (click through for the interactive version):

Housing stock v demand

A further indication of the overheated nature of certain parts of the UK housing sector can be seen in the fact that the average first time buyer in London now earns £85k and has a deposit of £123k according to the ONS figures:

London First Time Buyers

Frans de Waal has taken a critical look at economics, pointing to its vision of the self interested human being rather different from how societies developed or currently operate:

Economists should reread the work of their father figure, Adam Smith, who saw society as a huge machine. Its wheels are polished by virtue, whereas vice causes them to grate. The machine just won’t run smoothly without a strong community sense in every citizen. Smith saw honesty, morality, sympathy and justice as essential companions to the invisible hand of the market. His views were based on our being a social species, born in a community with responsibilities towards the community.

There’s been a lot of debate over the rate of innovation, with the naysayers  attitudes illustrated by Peter Thiel’s infamous statement “We were promised flying cars and we got 140 characters.” Neil Irwin has looked at the big inventions over the last 150 years, and suggests the nature of what is being invented might have changed but the pace of innovation hasn’t:
In short, the sheer number of ways a person can be in touch with others, and consume information or entertainment, has exploded, and the price has collapsed.

This is the area in which human life has changed the most in the last 46 years. We live and travel much as we did in 1970. We eat more variety of foods. Products of all types keep getting a little safer, a little more efficient, a little better designed.

But the real revolution of recent decades is in the supercomputer most people keep in their pocket. And how that stacks up against the advances of yesteryear is the great question of whether an era of innovation remains underway, or has slowed way down.

One innovation I am expecting to see much more of in the coming years is augmented reality with its fusing of the virtual and real life. Keiichi Matsuda provides a rather dystopian view of the world we might face in years to come:

The featured image is from eko.

Thought Starters: mobile internet, adblockers, sexism in the workplace and the developing world

Thought Starters provides me with a chance to look through the articles, research and opinion pieces I’ve read over the last week or so, highlighting the more interesting trends, developments and changes in the world we live in. This time we’re looking at the growth of mobile, the role of adblockers, the impacts and origins of sexism in the workplace and the internet in the developing world among other things. Happy reading.

The growth of mobile has seen the emergence of a whole new range of digital channels, but Visual Capitalist’s research points to the largest platforms all being controlled by Microsoft, Google or Facebook. That being said, there are range of platforms (WeChat, Snapchat, Slack, Netflix, Spotify) that fall short of a billion users but dominate within their respective sectors or geographies and could present a challenge to the market incumbents:

Apps or programmes with more than one billion active users

The IAB (US) recently released research which profiles how American consumers are using their PCs and smartphones. What is apparent is the continuing move to mobile  although the same research points to computers still registering a higher volume of internet views pointing to the different ways these devices are used:

Nearly Two-Thirds of All Internet Time is Spent on a Mobile Device

Google and Facebook have responded well to consumers’ growing use of smartphones, taking more than half of the available mobile ad revenues and leaving the remaining players fighting over the scraps in the US. eMarketer’s forecast suggests this isn’t going to change any time soon:

Net US mobile ad revenue share by company forecast

A continuing note of concern for media operators is the growth of adblocking with 22% of Britons using the software with this rising to 47% among 18-24 year olds according to Internet Advertising Bureau (UK) commissioned research.

Dean Dubley’s analysis suggests the introduction of mobile adblocking services won’t decimate the online media sector but is likely to further strengthen the hand of Google and Facebook:

The bottom line is that screaming headlines in stories like those from ZeroHedge (link) about “the risk to Internet companies’ business models” are nonsense. Ironically, it’s Google and Facebook’s approach to advertising that is safe. Small online publications using other advertising channels may not be so lucky. I noticed this tweet referencing mobile advertising growth forecasts from Goldman Sachs (link) which seems to suggest that Wall St is sanguine about the adblocking “threat” and that rapid growth in revenues will continue.

Among the likely responses by media operators to growing adblocker usage is a growing reliance on native advertising which is reflected in Enders Analysis’ recent forecast for Yahoo:

Forecast for the growth of native advertising in Europe

Whilst a few apps such as Facebook are nearly universal in their appeal, others give a clearer indicator as to who the user might be. Researchers have looked to profile the correlation between the ownership of different mobile apps and various demographic characteristics and income to develop profiles of mobile users. You can check out who they think you are in quiz – they got my gender and age wrong (I’m definitely male and over the age of 32) although I’m guessing not being a US resident probably didn’t help the profiling process.

Slack has been touted as the solution to the problem of information overload in the workplace with over 2 million daily active users. Samuel Hulick provides a more sceptical view warning that this “asynchronish” is in many cases compounding rather than addressing the problem:

Maybe you will say I’m afraid of commitment, but I’m just not interested in a relationship that seems to want to swallow up more and more of my time and attention, and demand that more and more of my interactions with other people go through you first.

Jeff Goodell has written an extended feature article on artificial intelligence and machine learning. Worth a read if you’re keen to get up to speed with what’s happening in the sector:

Despite advances like smarter algorithms and more capable robots, the future of superintelligent machines is still more sci-fi than science. Right now, says Yann LeCun, the director of Facebook AI Research, “AIs are nowhere near as smart as a rat.” Yes, with years of programming and millions of dollars, IBM built Watson, the machine that beat the smartest humans at Jeopardy! in 2011 and is now the basis for the company’s “cognitive computing” initiative. It can read 800 million pages a second and can digest the entire corpus of Wikipedia, not to mention decades of law and medical journals. Yet it cannot teach you how to ride a bike because its intelligence is narrow – it knows nothing about how the world actually works

Developments in software technology including artificial intelligence are rapidly expanding the scope of what computers can do. Nathaniel Popper profiles Kensho’s role in automating some of Goldman Sach’s research roles, highlighting how automation is increasingly emerging as a threat to white collar jobs:

The lead author on the Oxford paper, Carl Benedikt Frey, told me that he was aware that new technologies created jobs even as they destroyed them. But, Frey was quick to add, just because the total number of jobs stays the same doesn’t mean there are no disruptions along the way. The automation of textile work may not have driven up the national unemployment rate, but vast swathes of the American South suffered all the same. When it comes to those A.T.M.s, there has, in fact, been a recent steady decline in both the number of bank branches and the number of bank tellers, even as the number of low-paid workers in remote call centers has grown.

This points to a disconcerting possibility: Perhaps this time the machines really are reducing overall employment levels. In a recent survey of futurists and technologists, the Pew Research Institute found that about half foresee a future in which jobs continue to disappear at a faster rate than they are created.

Virtual reality is another technology that’s spilling out of the lab. Whilst it’s great to see the technology in the real world, Daniel Harvey profiles how a lack of diversity is leading to accidental sexism reflecting wider problems in the tech sector:

Based on that pattern it should come as no surprise that VR suffers from much the same. Motion sickness in VR has plagued the format since its inception. Women have shown a greater tendency toward VR-induced nausea than men. But why? It’s all about unconscious bias and technology’s notorious self-selection bias.

Discrimination is certainly not something exclusive to the tech sector. The absence of women in the boardrooms of many FTSE 100 or Fortune 500 companies reflects a range of barriers and will hold back their performance given they’re less able to reflect the needs of half the world’s consumers. It’s worth heading over to The Economist site where you can play with an interactive version of the following:

Facebook recently released its State of Connectivity report which profiles barriers to internet access for the developing world as part of its initiative. The key barriers to access highlighted in the report are the state of connectivity, availability of infrastructure, affordability, relevance and readiness of the population:

Barriers to internet access for developing world consumers

A valuable complement to Facebook’s report is Pew Research Center’s recently released research which looks at smartphone ownership and internet usage around the world including developing countries:

Percent of adults who use the internet at least occasionally or report owning a smartphone

With Britain’s Brexit referendum coming up on the 23rd of June, The Economist has profiled the regions that are europhile and eurosceptic:

UK regions' attitudes to Brexit

Whilst Europe is generally becoming more urbanised, this process (like technology) is unevenly distributed with different cities experiencing significant growth (Istanbul, Brussels, Amsterdam) or decline (Katowice, Ruhr, Katowice, Ostrava, Bucharest):

Europe cities growth and decline

Claire Cain Miller and Quoctrung Bui profile changes in patterns of relationships and marriage in the US, highlighting the role of assortative mating in reinforcing social class and undermining social mobility:

Assortative mating is the idea that people marry people like themselves, with similar education and earnings potential and the values and lifestyle that come with them. It was common in the early 20th century, dipped in the middle of the century and has sharply risen in recent years — a pattern that roughly mirrors income inequality in the United States, according to research by Robert Mare, a sociologist at the University of California, Los Angeles. People are now more likely to marry people with similar educational attainment — even after controlling for differences between men and women, like the fact that women were once less likely to attend college.

The featured image is a mural by ecb / Hendrik Beikirch for the St+Art India event in New Delhi and published in StreetArtNews

Thought Starters: decacorns, the iPad Pro opportunity and the implications of CRISPR

The following is a look through articles, research and opinion pieces highlighting interesting trends, developments and changes in the world you and I live in, with an emphasis on technology.

CB Insights profiles the growing valuations of the “decacorns” (private companies valued at over $10bn). Fidelity’s recent markdown of investments in Dropbox and Snapchat could be simply related to these companies’ specific circumstances or potential sign of a market correction:

Deals to Top Private Company Unicorns Valued at Over $10bn

Apple’s hoping that the release of the iPad Pro will give its tablet offering a much needed boost and the product’s performance mean that the iPad will be seen increasingly as a device to create as well as consume as John Gruber comments:

“We’ve now reached an inflection point. The new MacBook is slower, gets worse battery life, and even its cheapest configuration costs $200 morethan the top-of-the-line iPad Pro. The iPad Pro is more powerful, cheaper, has a better display, and gets better battery life. It’s not a clear cut-and-dry win — MacBooks still have more RAM (the iPad Pro, in all configurations, has 4 GB of RAM, although Apple still isn’t publishing this information — MacBook Pros have either 8 or 16 GB), are expandable, and offer far more storage. But at a fundamental level — CPU speed, GPU speed, quality of the display, quality of the sound output, and overall responsiveness of interface — the iPad Pro is a better computer than a MacBook or MacBook Air, and a worthy rival to the far more expensive MacBook Pros.”

One of the trends driving growth in a new range of startups is the shift to smartphones which is profiled in these global figures from Creative Strategies:

Percentage of time spent by device

90% of the time consumers spend on smartphones is spent in apps according to Flurry figures with Facebook, Google and Apple dominating in terms of the reach of their apps according to comScore figures:

Top 15 Smartphone Apps

Britney Summit-Gil looks at how the internet has enabled consumers to be better informed on a whole host of issues, but has lagged when it comes to understanding their own communities:

Internet users say digital tech makes them better informed than 5 years ago

Online advertising has been criticised for providing metrics that fail to reflect audience exposure.  Seb Joseph explores The Economist’s move to offer attention metrics which will better reflect consumers’ actual exposure to advertising:

“Working with analytics partners Chartbeat and Moat Analytics, The Economist tracks active time view – only counting a view when an ad is in view and the reader is actively engaged, i.e typing or scrolling up and down the page. Only those impressions that generate over 5 seconds of active view time will count towards the attention buy.”

Before brands throw all their media budget behind these new online advertising opportunities, it’s worth considering GroupM research which points to television’s lead in generating short to medium term sales (bearing in mind the research was commissioned by TV marketing body Thinkbox):

“GroupM found that media account for on average 39% of sales in the short to medium term (within three months of a campaign finishing); 33% of these media-driven sales are from TV advertising, more than any other communication channel. Paid-for online search created 22%, online display 12%, affiliates 10%, print 8%, direct mail 8%, radio 3% and outdoor 1%.”

Online media also needs to contend with declines in referral traffic from Facebook according to a report from Matthew Ingram. It’s far from clear  whether this is a result of a content glut or Facebook dialing back traffic but it does highlight how vulnerable mainstream content providers are to changes by Facebook and other intermediaries:

“The other nagging fear for media companies is that Facebook is essentially engaging in a large-scale bait and switch, by encouraging them to host all of their output on its platform, but then gradually turning off the traffic tap so that their reach declines. At that point, the social network can recommend a number of ways to boost the reach again—including by paying for promoted posts and other forms of advertising. Facebook would no doubt protest that it is doing nothing of the kind, but the fear remains.”

Michael Specter profiles the growing opportunities to manipulate our DNA with CRISPR/Cas system whilst Erik Parens chooses to explore the ethical implications of gene editing:

‘That seemingly simple question takes us to the heart of a deep tension that decent parents have felt for a very long time, but that will become ever more intense if a technology such as CRISPR-Cas9 is in fact safe and effective. I refer here to the tension between the ethical obligation of parents to accept their children as they are, and their ethical obligation to shape them.”

Rising wages in China mean that the country is facing growing competition for the title of factory to the world with Mexico also benefiting from its close proximity to the US according to a report from Ana Campoy:

Productivity Adjusted Labour Rates

UNHCR figures put the sheer scale of Europe’s refugee crisis in perspective, with the problem unlikely to abate given conflict in Syria and Afghanistan:

Migrant arrivals via the Mediterranean

If you find yourself in London over the next month, I’d strongly recommend checking out Ragnar Kjartansson’s The Visitors exhibition at the Brewer Street Car Park. A wonderful respite from the increasingly frenetic activity of central London in Christmas shopping mode.

The featured image is a Jessie and Katey mural on Ahui Street in Hawaii for the POW WOW festival.

Thought Starters

Content that has caught my eye recently or got me thinking. I particularly recommend Tim Urban’s article on artificial intelligence.

WeAreSocial provide their wrap up of key digital up of key digital, social and mobile statistics for 30 key global markets as well as regional overviews – a valuable reference source:

Flurry’s mobile statistics point to lifestyle & shopping as growing rapidly in consumers’ use of mobile, providing a stark contrast to the more well established mobile gaming:

Time Spent Mobile

Whilst global tablet penetration continues to grow, we’re seeing a drop in the phenomenal growth rates of earlier years according to eMarketer’s forecast:


Joichi Ito compares and contrasts the development of the internet with bitcoin,  providing a valuable lens in which to understand the fundamentals of the cryptocurrency and how it may develop in the future.

Steven Levy looks at how Google adapted its business strategy to better accommodate an increasingly mobile driven world:

Knowledge Graph structures the world’s information in a vast database. Voice Search incorporates spoken language into Search. Google Now tells what people want to know before they ask. All three, not coincidentally, are tied to Google’s focus on mobile. Though certainly not an exhaustive list, those components — and the way they work together— have helped transform Google Search in the past three years, from a delivery system of “ten blue links” into something almost psychic: a system that doesn’t behave like a computer but an intelligent hive of knowledge that wisely interprets and satisfies your information needs. And it did it all when you weren’t looking.

Benedict Evans similarly looks at how Google adapted Android and Apple adapted iOS to changing market environment and capabilities. Whilst in some respects, their positions are closer now than they were in the past, the companies strategy are based on fundamentally different underpinnings.

Nick Bilton profiles Snapchat Stories and how it fits in to the increasingly diverse range of communication channels available to consumers and particularly teenagers and young adults. Snapchat is looking to sell the service to advertisers, big question is whether it’s asking too much for the service with commentators both for and against.

Microsoft publicly revealed their HoloLens offering, taking the concept of enhanced eyewear a stage beyond Google Glass. It’s a fascinating project although it will be interesting to see if Microsoft does a better job than Google in overcoming consumers misgivings about wearing a computer on their face. Read a first hand experience of using the eyewear over on Wired:

Tim Urban profiles the growth of artificial intelligence, profiling the transition from Artificial Narrow Intelligence to Artificial Superintelligence and the innovations that are likely to enable this:


The Verge highlights the role of British based Gamma Group International in supporting Bahraini regime through spyware enabling the surveillance and hacking of activists digital communications. Given the more insidious uses that surveillance can be put to, I’m not a fan of David Cameron’s proposal for backdoor access to digital communications and also given the damage this could do to the UK’s digital sector as covered by Cory Doctorow.

Raffi Khatchadourian looks at Affectiva’s move to digitally read consumers’ emotions through the tracking of facial expressions. Obvious implications for measuring the impact of marketing communications but it’ll be interesting to see how it gets used for other purposes.

LSE Cities has pulled together a data visualisation illustrating how much population densities vary among the world’s major cities and published in Vox.

City Pop Density

Aaron Sankin looks at racial preferences among users of OkCupid and Tinder which points to biases among different ethnic groups, including among those who typically claim otherwise.

The featured image is mural by Nelio and Simek in Lyon.

Thought Starters

Content that has caught my eye recently or got me thinking, which includes coverage of enterprise technology, changing nature of interaction on the internet and citizen journalism among other subjects.

Recent data breaches at Sony, Target and Home Depot point to serious security issues within large enterprises but Steven Sinofsky points to the move to cloud infrastructure and other developments as addressing many of these concerns in the near future. It’s also worth reading Sinofsky’s look at trends within the workplace in 2015 for Re/code, taking a closer look at cloud and hybrid cloud solutions, email, tablets and mobile device management among other matters.

Ben Bajarin takes a closer look at the emergence of the mobile internet,  pointing to its dominant role in China, with Western markets likely to follow. Ignore at your peril.

Complementing Bajarin’s analysis is Chris Dixon’s coverage of the move from a search to social centric model in what he describes as a move from a pull to a push model of the internet:

Social Media

The Lending Club IPO has placed a spotlight on the emergence of peer-to-peer models within the financial sector. The Economist’s comparison of the costs of the Lending Club versus traditional channels illustrate why Lending Club and other peer-to-peer operators are seen as a disruptors:

Lending Club

The sharing economy has taken a lot of stick for what some critics has described as providing an unfettered form of capitalism. The Nation posits an alternative model of the sharing economy in which associated technologies enable a more collective model of business:

Sharing Economy

Serial reignited my interest in podcasts even if the show didn’t manage to maintain its early momentum. EJ Dickinson compared reporting of the case on the podcast to that on Reddit, with the latter providing a valuable indication of the value of citizen journalism.

Hannah Kuchler covers Pew Research Center’s study into the Ferguson riots, pointing to the long delay in television news’ coverage of the event when compared to social media:


A pair of Morgan Stanley analysts experiences with the much lauded GoPro point to the fact that there are likely to be limits to the success of the action sports video camera:

1) Our feats as equity research analysts provoke way fewer jaw-dropping oohs and ahhs than the world’s top motorcycle freestylers

2) it is way easier to shoot hours of raw video content (the hardware capabilities are great) than it is to create anything that is even remotely digestible

3) the video editing and creation process is incredibly laborious—it took nearly 8 hours of work to create a sub-2 minute video—even as GoPro’s Studio helped ease the process (we didn’t have to match soundtrack to video, Studio’s [software provided] templated clip lengths and transitions, while providing a general storyboard outline).

Bloomberg reports on how the American economy is becoming increasingly independent of the petroleum sector with an interactive infographic – worth a look:


The Economist profiles the emerging middle class in developing societies as more of the world’s population finds themselves emerging from poverty:

Middle Class

Joseph E. Stiglitz looks at the emergence of China as the pre-eminent global economic power and what this means to the U.S.

The featured image is mural by Patel in Rio San Juan, Dominican Republic and found on StreetArtNews.

Thought Starters

A mixed collection of materials looking at societal trends and the impact of technology on the way we live.

Despite the growth of the internet, television continues to retain a strong hold on our media habits, but what is changing is how we watch it. Figures from GlobalWebIndex point to younger cohorts moving towards online viewing, something that’s even more prevalent in developing markets:

Traditional vs Online TV

Statistics from Britain’s Office of National Statistics point to continuing growth in broadband, mobile internet and provide information on what consumers are doing online:

Internet Activities

Ethan Zuckerman takes a critical look at the growth of the advertising funded internet. He points to consumers’ loss of privacy as businesses look to capture more elaborate collections of data to enable the more sophisticated targeting of online advertising:

Once we’ve assumed that advertising is the default model to support the Internet, the next step is obvious: We need more data so we can make our targeted ads appear to be more effective. Cegłowski explains, “We’re addicted to ‘big data’ not because it’s effective now, but because we need it to tell better stories.” So we build businesses that promise investors that advertising will be more invasive, ubiquitous, and targeted and that we will collect more data about our users and their behavior.

The mobile app industry has seen rapid growth over the last five years, but commentators and analysts are pointing to a maturing of the sector with the Financial Times taking a more detailed look:

Yet amid the apparent wealth, the mood is gloomy among the independent coders and small businesses that make most of the apps now available for Apple and Google devices.

Luc Vandal, founder of Montreal app shop Edovia, sums up the feeling of many: “Let’s face it, the app gold rush is over.”

Smartphones have traditionally provided  a more secure environment aided by the more restricted environment that software works in when compared to the traditional PC. Unfortunately this may not be enough with John McAfee warning that security is becoming increasingly threatened by mobile apps which carry malicious payloads.

The open source nature of the Android ecosystem has fostered a broader array of devices when compared to the more closed environment of Apple’s iOS. OpenSignal have updated their report looking at the fragmentation within the Android ecosystem profiling both the range of devices as well as the operating system versions employed:

Android FragmentationAnother interesting chart from OpenSignal’s presentation looks at the growing array of sensors in Samsung’s Galaxy smartphone, confirming the devices role as more than just a phone (loss of temperature and barometer sensors presumably  to enable S5’s water resistance):

Sensor Fragmentation

eMarketer’s forecast for the UK market point to  Android and iOS continuing to dominate with BlackBerry and Symbian falling off rapidly and WindowsPhone coming up a distant third:

MobileOS Market Share

Amazon has moved into the mobile payments market with its Amazon Local Register offering with pricing that is designed to grab marketshare from Square and PayPal Here. Whether we’ll see this being a big money earner for Amazon remains to be seen although the company is well known for taking a long term view when it comes to new market opportunities:

I’ve spent many hours listening to Soundcloud with favourite contributors including 99% Invisible, Andreessen Horowitz and The Fader among many others.  So it’s with interest and concern that I’ve greeted Soundcloud’s latest announcement to commercialise it’s streaming audio service:

Now SoundCloud has decided it is time to grow up. On Thursday, as part of a new licensing deal with entertainment companies, SoundCloud will begin incorporating advertising and for the first time let artists and record labels collect royalties. Eventually, it plans to introduce a paid subscription that will let listeners skip those ads, as they can with Spotify and other licensed services.

As consumers spend more time on their smartphones, Facebook has provided a growing array of services for consumers to spend their time either through acquisition (eg Instagram) or in house development (eg Poke, Slingshot). Mark Milian charts Facebook’s mixed results in developing its own solutions but goes on to suggests that they may be on to a winner with Bolt:


Facebook provide a great means of establishing maintaining ties with friends irrespective of location. A contrasting approach is the social network Nextdoor which looks to foster networks among local communities with The Verge describing it as the ‘anti Facebook.’

nextdoorThere’s been some pointed commentary lately contrasting the Twitter and Facebook’s approach to their respective newsfeeds. Facebook’s algorithmically  driven newsfeed has been criticised for the  ducking of harder news (eg Ferguson) whilst focusing its coverage on more light hearted viral content (eg Ice Bucket Challenge) .

Twitter’s approach is often characterised as being great for more advanced users with its unedited stream of content,  but the onboarding process has long been criticised as bewildering for newer users. Twitter is experimenting with a move that will see it injecting  content into the newsfeeds of users that it believes they will like, a move that hasn’t been welcomed by some users:

Twitter pollutes

Consumers are spending time on a broadening array of media with newspapers and online news portals no longer monopolising consumer’s attention when it comes to news coverage. Mathew Ingram looks at how news media are using a growing array of channels to reach consumers with NowThisNews’ Snapchat on Ferguson given as an example of where things might be heading:

As ridiculous as the updates posted to Snapchat may look, with poorly handwritten text superimposed on newsy images, NowThis News has gotten something right that many media outlets continue to struggle with: namely, that if it is to be effective, news needs to reach people where they are, not sit on a home page somewhere waiting for people to show up.

Technology report Chris O’Brien’s departure from Silicon Valley has prompted him to look at the region’s ups and downs. Among the greatest opportunities he sees is the Maker movement which PSFK have recently launched a profile of:

Another tech hub which is growing in international prominence is Shenzen in China. The  city provides an important incubator for hardware innovations with Joichi Ito  of MIT’s Media Lab writing a fascinating profile of this exotic ecosystem for LinkedIn.

Much has been made of the way that new technologies and processes have enabled consumers to escape the confines of a traditional 9 to 5 employment. But the benefits are not equally distributed. The New York Times points to the burden that scheduling software is placing on families and  David Mayer criticising the lack of protection for participants in the on demand workplace.

The Brookings Institute takes a closer look at inequality and social mobility, highlighting the effect that education, marital status and race have on people’s attempts to move up the socioeconomic ladder:

The featured image is of a Hannah Stouffer creation for Sea Walls: Murals for Oceans – Mexico Expedition in Isla Mujeres, Mexico and reported in Arrested Motion.




This week is a varied collection of resources. Topics include a look at Japan, Europe’s leading economies, the growing role of mobile, Tesla’s sharing of its intellectual property, collaboration across different industry, rising costs in the tertiary sector and the role of the European white working class. I hope you enjoy it.

David Pilling looks at the intertwined relations of Japan and China in their role of neighbours and competitors and how this reflects Japan’s self image.

Europe’s ten most competitive economies according to the World Economic Forum, with the Nordics definitely coming out ahead.

Europe2020 Competitiveness ReportMarc Andreessen argues that we don’t need to worry about robots eating all the jobs, with technology based innovation providing greater opportunities for modern society.

GlobalWebIndex looks at what devices we are using to get online, PC still on top but mobile growing.

GWIGrowing signs of mobile’s significance as key markets within Europe pass 50% smartphone penetration market according to eMarketer figures.

Smartphone Penetration Europe

The growing penetration of smartphones is reflected in rapid forecasted growth in mobile data and mobile ecommerce reported on in the Ericsson Mobility Report.

Mobile data growth

Mobile Commerce Growth

Whilst they say a picture is worth a thousand words, sometimes a words are more appropriate. Econsultancy have pulled together a strong collection of quotes looking at mobile and mobile marketing.

In today’s modern world, people are either asleep or connected.

Janice H. Reinold, Rosetta Marketing

Bubba Murarka looks at the current and future evolution of mobile advertising which he sees as happening over three stages.

Gartner Digital Marketing Transit Map is over a year old now but provides a window into increasingly elaborate world

Gartner Digital Marketing Transit Map

Intellectual property is viewed by many companies as an important economic moat, providing a barrier against encroaching competitors. So it’s been interesting to see commentators response to Tesla Motors sharing its electric vehicle technology, with Sarah Gray pointing out that the brand’s competitor could be more readily defined as petroleum powered car sector rather than other brands’ electric powered vehicles.

Whilst a lot of attention is currently being given to social media, you need to also bear in mind the capabilities of search and email marketing, as reflected in Custora research publicised on Pamorama.

Acquisition Channel Growth

Box have surveyed different industry sectors collaboration pointing to the fact that one size doesn’t necessarily fit all forms

Industry Collaboration

Tertiary education appears to be on an inexorable growth in costs which Thomas Frank takes a critical look at. This growth in costs is putting a university education out of reach of more and more people and is leaving the sector ripe for disruption from organisations like Coursera and Udacity.

Education Inflation

Simon Kuper looks at Europe’s white working class in light of the surging popularity of anti-immigration populists in the European elections drawing on research from the Open Society Foundations.

The Howard Griffin Gallery is fast turning into one of my favourites, with an interesting selection of artists and an intelligent use of their space on Shoreditch High Street. The Bob Mazzer exhibition is no exception.


The featured image is a piece by Matt W. Moore from Brooklyn, New York.