Thought Starters: post carbon futures, social class and Brazil

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 venture capital, Uber’s valuation, mobile commerce, innovations in the telecom and the energy sector, social class and Brazil among other things.

Benedict Evans has written a valuable overview of the venture capital sector, pointing to the importance of winning big rather than winning often, with failure a necessary part of the equation for investors if they really want to get ahead:

There are no 10x deals

Uber has been one of the darlings of the startup sector with its position further strengthened by the sale of its Chinese subsidiary which was proving a drain on its finances. Steve LeVine has looked to pour some cold water on Uber’s current valuation suggesting that the brand is not necessarily the sure thing that some investors would have you believe:

With Uber, you have a singular brand with a credible story. The question is whether that brand and that credibility, plus the other assets on Uber’s balance sheet, add up to $62.5 billion. Here is a business under siege by rivals big and Lilliputian, in the midst of a cannibalistic pricing race to the bottom, bleeding cash and losing money while battling well-heeled, technologically savvy incumbents displaying every intention of owning the space themselves.

Ofcom released its annual Communications Market report, providing a whole host of benchmark statistics for the UK across television, online video, radio, telecoms and the internet. Well worth bookmarking:

Household take-up of digital communications/ AV devices: 2006-2016

Mobile commerce is definitely on the rise as we spend more and more time glued to our smartphone screens. What’s interesting is that for all the talk of the opportunities of mobile apps, browser based purchasing dominates with a lead that’s growing according to Andy Favell:

Access Method for Mobile Shoppers

Federic Filloux looks at how the traditional media players have been sidelined by the news aggregators (primarily Facebook and Google) and newer media outlets more attuned to the rapid fire news cycles of the current age:

For the news industry, this huge economic gap carries two likely consequences: internet giants and digital native news outlets will have tremendous financial firepower to do whatever it takes in terms of marketing or their ability to go further into the general information segment (cf. Snapchat); and the network effect will apply even further when advertising dollars keep drying up for what will be increasingly seen as niche media.

More broadly, except for the old, educated and affluent segment of the population, the vast majority will be informed by a rapid-fire of superficial and shallow contents spat by the social firehose. Expect more Brexit hurricanes and Trump floods in the future.

Self driving cars are reshape our relationship with the automobile but it’s not just the driver who will be impacted by these changes as Robin Chase explores:

We’re at a fork on that roadmap. One direction leads to a productive new century where cities are more sustainable, livable, equitable, and just.

But if we take the wrong turn, we’re at a dead end. Cities are already complex and chaotic places in which to live and work. If we allow the introduction of automated vehicles to be guided by existing regulations we’ll end up with more congestion, millions of unemployed drivers, and a huge deficit in how we fund our transportation infrastructure. We will also miss an opportunity to fix transportation’s hereto intractable reliance on liquid fossil fuels (and their associated pollution).

There’s no disputing the fact that mobile is reshaping the world we live in with data via hardwired, mobile and wifi networks fueling the growth in an ever expanding range of devices (smartphones, sports trackers etc) and services (mobile messaging Shazam etc). Our current infrastructure isn’t really built for these growing demandsJeff Hecht looks at what providers are doing to future proof our telecoms infrastructure:

Bottleneck Engineering

The energy sector is facing growing calls to switch away from fossil fuel based energy given the growing threat from climate change. Renewable energy has traditionally been handicapped by intermittent supply and the costs of energy storage whilst nuclear is costly and has a rather mixed safety record. Tim Harford points to the potentially valuable role of price signals in getting the energy market to travel in the right direction:

Overall, there is little prospect of running out of fossil fuels, and it seems unlikely that alternative energy sources will outcompete them. And yet we must make the shift, or risk catastrophic climate change. Our reserves of fossil fuels may be no constraint but the atmosphere’s capacity to safely absorb carbon dioxide is.

There is some space for optimism. Renewable energy sources are no longer impossibly costly. Nor is nuclear power, even though the costs have moved in the wrong direction. We cannot wait for the market to make the switch unaided — but the gap is no longer so wide that sensible policy cannot bridge it. The centrepiece of such a policy would be to raise the price of carbon dioxide emissions, using internationally co-ordinated taxes or their equivalent. Such a tax would make renewable energy sources more attractive — as well as encouraging energy efficient technologies and behaviour. Market forces can do the rest. Low carbon energy is not free — but it is worth paying for.

Ambrose Evans-Pritchard points to innovations in energy storage as giving more than a helping hand,  changing what is economically viable and potentially making Hinkley Point look like something of a white elephant:

This transforms the calculus of energy policy. The question for the British government as it designs a strategy fit for the 21st Century – and wrestles with an exorbitant commitment to Hinkley Point – is no longer whether this form of back-up power will ever be commercially viable, but whether the inflection point arrives in the early-2020s or in the late 2020s.

Simon Hattenstone  has taken a critical at meritocracy in the UK in light of Theresa May’s recent cabinet appointments which are less dominated by Etonians than her predecessor David Cameron. This raises the question will we see real change or more of the same?

Lee Elliot Major of the Sutton Trust, talks of an academic arms race. “Every time opportunities widen for those from less privileged backgrounds, the middle classes find some way of defining merit to their advantage again. Never underestimate the skills and the tenacity of the middle classes to reinforce their privileged position in society. So there was a university expansion, but if you look at the more prestigious universities, there’s still a stark gap in terms of those from more advantaged backgrounds versus those from disadvantaged backgrounds. And increasingly you’re seeing post-graduate degrees.”

The rise of Donald Trump has prompted much soul searching among political commentators in the US pointing to it as a symptom of the growing social inequality. Research from Gallup provides a more nuanced analysis as Max Ehrenfreund and Jeff Guo report:

According to this new analysis, those who view Trump favorably have not been disproportionately affected by foreign trade or immigration, compared with people with unfavorable views of the Republican presidential nominee. The results suggest that his supporters, on average, do not have lower incomes than other Americans, nor are they more likely to be unemployed.

Yet while Trump’s supporters might be comparatively well off themselves, they come from places where their neighbors endure other forms of hardship. In their communities, white residents are dying younger, and it is harder for young people who grow up poor to get ahead.

Alec MacGillis looks more broadly at the growth of a white underclass in the US which has  provided a fertile ground for Trump’s more xenophobic view of the world:

So why are white Americans in downwardly mobile areas feeling a despair that appears to be driving stark increases in substance abuse and suicide? In my own reporting in Vance’s home ground of southwestern Ohio and ancestral territory of eastern Kentucky, I have encountered racial anxiety and antagonism, for sure. But far more striking is the general aura of decline that hangs over towns in which medical-supply stores and pawn shops dominate decrepit main streets, and Victorians stand crumbling, unoccupied. Talk with those still sticking it out, the body-shop worker and the dollar-store clerk and the unemployed miner, and the fatalism is clear: Things were much better in an earlier time, and no future awaits in places that have been left behind by polished people in gleaming cities. The most painful comparison is not with supposedly ascendant minorities—it’s with the fortunes of one’s own parents or, by now, grandparents. The demoralizing effect of decay enveloping the place you live cannot be underestimated. And the bitterness—the “primal scorn”—that Donald Trump has tapped into among white Americans in struggling areas is aimed not just at those of foreign extraction. It is directed toward fellow countrymen who have become foreigners of a different sort, looking down on the natives, if they bother to look at all.

Reflecting the current race between Hillary Clinton and Donald Trump, The Economist suggests that politics will increasingly be about open versus closed models rather than the traditional battles between left and right:

Left, right, left, right

The Rio Olympics has put Brazil in the spotlight during a tumultuous period in its political history. Franklin Foer has a valuable piece that provides a valuable background to recent events:

But the public’s understandable despair isn’t wholly shared by the experts I spoke with. Stepping back, they saw unlikely causes for hope. Impeachment revealed the worst about Brazilian democracy—and the worst wasn’t so terrible. There’s no talk of returning to dictatorship, no real fear of a Hugo Chávez–like figure clouding the sky. Impeachment was a poor showing of democracy, but it was still democracy. Even with all the budgetary turmoil, Bolsa Família remains firmly ensconced. Austerity will whack the poor, yet Lula’s evolution of Brazilian social democracy won’t reverse course. Most important, the Petrobras scandal is so spectacular that its grasp on the popular imagination doesn’t seem to be slipping. Indeed, Temer’s impeachment gambit has yet to slow the Moro investigation. Brazil has a once-in-a-generation chance to untether its politics from its debilitating state of codependence with the big firms. Hosting the Olympics was never going to bring Brazil the national greatness Lula advertised. Freeing its democracy and economy from the plague of corruption could.

Saudi Arabia feels for many of us like a different world given the way that religion shapes everyone’s lives. Studio D’s research into the lives of young Saudi’s provides a valuable window of how people adjust and if that whets your appetite, it’s also worth reading Jessi Hempel’s coverage of the research process:
For Saudi female youth the smartphone is the great liberator
The featured image is a Gue mural photographed by Angelo Jaroszuk Bogasz at the Altrove Street Art Festival in Catanzaro, Italy and published in StreetArtNews.

Thought Starters: ubiquitous smartphones, post-PC and universal basic income

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 the transition from a PC to a smartphone-dominated world, the story behind financial results from Apple and Facebook, the growth of Sci-Hub and a closer look at the universal basic income model among other things:

Benedict Evans profiles the increasingly ubiquitous smartphone and how the mobile market is changing as the technology becomes increasingly commodified:

Smartphones have unique scale for tech

Steven Sinofsky moves to an iPad Pro for his daily computing requirements and shares his experiences. As the PC loses its hegemony, raises new challenges and opportunities for businesses and entrepreneurs:

The shift to this new form factor and new platform will bring with it cultural changes that take advantage of what are perceived as disadvantages. As makers, being early is essential, otherwise you are late.

For more on the topic of post-PC world, I’d suggest reading Paul Thurrott’s reluctant forecast of the demise of Microsoft’s Windows and Steven Sinofsky and Benedict Evans rounding out their thoughts on the a16z podcast:

The release of quarterly results has provided a valuable window into the ups and downs of some of the world’s tech giants. Neil Cybart’s analysis of Apple’s financial results suggests we’ve reached peak iPhone, with sales hit by longer upgrade cycles and fewer easy growth opportunities:

iPhone Unit Sales Growth (trailing 12 months)

Apple CEO Tim Cook has emphasised the company’s service offerings in recent announcements. It’s worth having a read of Ben Thompson’s analysis of this move as the company looks to avoid being typecast as simply a maker of beautiful devices:

With regards to the iPhone, it’s hard to see its record revenues and profits ever being surpassed by another product, by Apple or anyone else: it is in many respects the perfect device from a business perspective, and given that whatever replaces it will likely be significantly less dependent on a physical interface and even more dependent on the cloud (which will help commoditize the hardware), it will likely be sold for much less and with much smaller profit margins.

Facebook had more joy with its financial results growing monthly and daily active users and mobile’s share of traffic although growing presence in developing markets is dragging down its average revenue per user. Whilst recent research suggests that people might be increasingly wary of sharing their personal thoughts on Facebook, the social network maintains a strong role as onramp to many consumers’ digital world as Will Oremus comments:

The company has reinvented itself in two distinct ways. First, Facebook as a platform has been quietly evolving into something different than a social network—something less personal, but no less useful. Second, Facebook as a company has been furiously hedging its bets on the future of technology and social media, to the point that it is no longer properly described as merely a social network—no more than Alphabet (né Google) is properly described as a search website.

So what has the Facebook app and site become, if not a social network? The answer is rather obvious when you watch how people use it. It has become a personalized portal to the online world.

Whilst tech unicorns have typically avoided the scrutiny of the stock market by staying private, analysis of sales of ping-pong tables in Silicon Valley suggest that venture capital funding might not be as free flowing as it once was:

Sales of ping-pong tables to companies at a Silicon Valley store correlate with venture-capital deals made during the same quarter.

Whilst we’re on the subject of startups, it’s worth reading Chris Dixon’s call for entrepreneurs to look broadly to better understand future threats and opportunities, namechecking automation of logistics, apps, video and voice services:

Think of the internet economic loop as a model train track. Positions in front of you can redirect traffic around you. Positions after you can build new tracks that bypass you. New technologies come along (which often look toy-like and unthreatening at first) that create entirely new tracks that render the previous tracks obsolete.

The American IAB has released research tracking consumers’ use of smartphones and tablets when shopping, pointing to the ways different age categories use their devices. This providing both a threat and an opportunity for traditional bricks and mortar retailers:

Smartphone as Shopping Assistant

John Bohannon profiles the growth of Sci-Hub which offers users a means of accessing copyrighted academic research regardless of whether people have the necessary institutional resources. The service provides a valuable source for researchers in less well-funded institutions, but usage statistics suggest that users include plenty of people with the necessary credentials and are simply looking for more user-friendly alternatives:

Server log data for the website Sci-Hub from September 2015 through February 2015

With predictions of automation threatening employment across an increasingly broad spectrum of jobs, there’s been growing calls for the introduction of universal basic income. This would essentially provide a guaranteed income to all regardless of employment status and has gained an interesting collection of supporters from both ends of the political spectrum. It’s something I am expecting to hear a lot more about in the coming months and you get an introduction to the concept from Tim Harford (shorter version), Andrew Flowers (longer version) and the Freakonomics team (podcast version).

The featured image is a Nerone mural from Bordeaux, France published in ekosystem.

Thought Starters: A look at Facebook, Snapchat, hidden truths and London

Thought Starters provides me with a chance to review and highlight the more important or interesting research and opinions that I’ve read over the last week or so. This edition looks at adtech bloat, Facebook and Snapchat’s role in the social media landscape, the truth behind the statistics and London’s changing economic landscape. 

There’s been a lot of coverage about the growing adtech bloatware face and the countervailing rise of ad blockers as consumers look to improve their user experience and increase their privacy. I have considerable sympathy for the media sector which is in many cases scrabbling for a decent revenue model. But the situation doesn’t look great when consumers end up footing the bill with growing data chargers as highlighted by Rob Leathern:

When I cover deceptive ad practices/fraud, some people find it interesting, sure, but when I have explained how mobile websites are making far less money from ads than you’re paying in mobile data… People. Got. Pissed.

A recent report in The Information (paywall) points to consumers using Facebook less to share their personal thoughts, although figures from GlobalWebIndex indicate these might be part of a broader trend:

Decline in personal sharing on social networks

Ben Thompson puts Facebook’s position in the context of the broader social media landscape, contrasting it with the more personal mediums such as Snapchat (see below). Facebook’s launch of Moments and Facebook Live suggest it’s not happy being typecast in just this role:

It is increasingly clear that there are two types of social apps: one is the phone book, and one is the phone. The phone book is incredibly valuable: it connects you to anyone, whether they be a personal friend, an acquaintance, or a business. The social phone book, though, goes much further: it allows the creation of ad hoc groups for an event or network, it is continually updated with the status of anyone you may know or wish to know, and it even provides an unlimited supply of entertaining professionally produced content whenever you feel the slightest bit bored.

The phone, on the other hand, is personal: it is about communication between you and someone you purposely reach out to. True, telemarketing calls can happen, but they are annoying and often dismissed. The phone is simply about the conversation that is happening right now, one that will be gone the moment you hang up.

The growth of smartphones has had more than a helping hand in the growth of sexting among teenagers. This has raised serious questions for lawmakers who face criminalising teenagers using child pornography laws that were designed with different situations in mind and risk compounding the problem as Madeleine Thomas reports:

“You can allow them, or you can prohibit them, but [teens] are going to sext and they are going to have sex regardless,” Hasinoff says. “The potential for harm that technology creates is legitimately new, but the way we’re dealing with it is just completely the wrong approach. If you think you can stop it by criminalizing consensual sexters, it just doesn’t make any sense.”

Snapchat is one of the platforms most closely associated with sexting with figures from comScore showing the disproportionately high share of younger age categories when compared to other social networks in the US:

Demographic Composition % of Major Social Networks

Snapchat’s recent launch of an updated version of its mobile messaging platform with a richer range of features again put it in the spotlight and left many marketers wondering how they can get onboard. Dakota Shane Nunley does his bit to pour cold water on some of this excitement pointing out there are plenty of situations where Snapchat simply doesn’t make sense:

Snapchat is not for:

  1. Big brands looking to be “relatable” (unless those brands are buying space on Discover, Filters, or paying Influencers)
  2. Businesses not based around an individual or personality
  3. People without a social following elsewhere
  4. Most small to mi-sized businesses

The commercial launch of Oculus Rift has left many commentators wondering whether virtual reality is the next big thing. The platform’s hardware costs mean that it’s not going to challenge the smartphone for the foreseeable future but that will change over time. For a closer look, it’s worth having a read of Benedict Evans’ look at the different development paths and the relationship with its cousin, augmented reality:

If one can answer those questions, then AR has the potential to be a new computing platform in a way that VR cannot – AR can be with you everywhere whereas VR needs a room, and so AR could be the next universal computing platform after mobile. 

The transition from physical to digital distribution of music has been a far from smooth one with no shortage of musicians complaining that the shift to a streaming model is leaving them out in the cold. Figures from the International Federation of the Phonographic Industry suggest the industry may have now turned a corner with the fastest revenue growth since 1998 – whether that money reaches musicians remains to be seen:

Music sales growing at fastest rate since 1998

The Guardian is one of my go to news sources even if I am not always in sync with their view of the world and their drift to a more lifestyle format. Given this, I was disheartened to read Michael Wolff’s analysis of the organisation’s management under Alan Rusbridger which suggests it may face the same fate of other newspapers struggling to make the transition to a digital world:

Alan Rusbridger’s disciples consider him a visionary, but the former Guardian editor oversaw enormous losses, a huge fall in circulation and a ruinous faith in free content. Now, as he returns as chairman of its parent company, has his legacy of unchecked idealism condemned the iconic brand to terminal decline?

Right through my university career I identified as politically correct reflecting strongly held views on the sexism, racism and homophobia of various aspects of contemporary society. Given this, I’ve watched with considerable interest recent debates around political correctness particularly in American universities of today with commentators pointing to activists overreaching and the silencing of broader debates. Whilst I feel too far removed to give a considered judgement, Greg Lukianoff and Jonathan Haidt’s article in The Atlantic and Lauren Modery’s commentary on Medium gave me plenty of food for thought.

Tim Harford has become one of my favourite commentators, separating the truth from fiction in news reports via the More or Less radio show/podcast and his regular column in the Financial Times. A recently penned feature article profiles the distortion of statistics and outright lies by politicians looking to shore up support among the general public – something well worth reading as UK approaches the Brexit referendum and the US head towards their presidential elections:

Perhaps the lies aren’t the real enemy here. Lies can be refuted; liars can be exposed. But bullshit? Bullshit is a stickier problem. Bullshit corrodes the very idea that the truth is out there, waiting to be discovered by a careful mind. It undermines the notion that the truth matters. As Harry Frankfurt himself wrote, the bullshitter “does not reject the authority of the truth, as the liar does, and oppose himself to it. He pays no attention to it at all. By virtue of this, bullshit is a greater enemy of the truth than lies are.”

Whilst we’re on the subject of politics and its impacts, CEPR have had a look at the economic impacts of Brexit and it’s unsuprisingly not positive:

The economic consequences of leaving the EU will depend on what policies the UK adopts following Brexit. But lower trade due to reduced integration with EU countries is likely to cost the UK economy far more than is gained from lower contributions to the EU budget.

Even setting aside foreign investment, migration and the dynamic consequences of reduced trade, we estimate the effects of Brexit on trade and the UK’s contribution to the EU budget would be equivalent to a fall in income of between 1.3% and 2.6%. And once we include the long-run effects of Brexit on productivity, the decline in income increases to between 6.3% and 9.5%. Other possible political or economic benefits of Brexit, such as better regulation, would have to be very large to outweigh such losses.

Diet is one area where we’ve seen the media and public opinions shaped by evidence that often falls well short of gold standard in scientific research. Ian Leslie’s fascinating coverage of attitudes to sugar points to a situation where strong scientific wasn’t enough to change societal norms with personal politics getting in the way of the truth (see below). Unfortunately many countries are now paying the price with growing obesity rates:

It is a familiar complaint. By opening the gates of publishing to all, the internet has flattened hierarchies everywhere they exist. We no longer live in a world in which elites of accredited experts are able to dominate conversations about complex or contested matters. Politicians cannot rely on the aura of office to persuade, newspapers struggle to assert the superior integrity of their stories. It is not clear that this change is, overall, a boon for the public realm. But in areas where experts have a track record of getting it wrong, it is hard to see how it could be worse. If ever there was a case that an information democracy, even a very messy one, is preferable to an information oligarchy, then the history of nutrition advice is it.

There’s been growing awareness of discrimination faced by women in the workplace, reflected in the lack of women in leadership roles and the gender pay gap. Whilst a lot of attention focuses on the need for flexibility in the workplace and familial demands, research from ICEDR suggests that what thirtysomething women are really interested in is better pay:

The top 5 reasons people in their 30s leave companies

London has long had a character that set it apart from the rest of the UK both in terms of its international character and its economic output. One of the more recent consequences of this is the growing squeeze on poorer residents, reflected in the decline in the number of children eligible for free school meals as London’s central boroughs increasingly gentrify (see below). It’s no surprise that first time buyers are finding it increasingly hard to get on the property ladder compared to the rest of the country with regulation compounding the problem of population pressures:

Free school meal eligibilitySilicon Valley with its sea of office parks provides a rather different development model to London. Hunter Oatman-Stanford provides a fascinating look at the growth of this suburban corporate campus model as companies looked to flee inner cities. Unfortunately by sealing themselves off from the rest of society, businesses risk losing touch with the noisy and chaotic world they’re in many cases trying to serve:

While many modern office developments specifically include lounges or multipurpose zones where employees might randomly interact with one another, these spaces are entirely limited to office staff—with the aim that conversations would further relationships or spark ideas beneficial to the business. “I look at Apple’s Norman Foster building, and it’s 1952 all over again,” Mozingo says. “There’s nothing innovative about it. It’s a classic corporate estate from the 1950s, with a big block of parking. Meanwhile, Google is building another version of the office park with a swoopy roof and cool details—but it does nothing innovative.”

Online dating is reshaping the way people meet their flings / boyfriends / girlfriends / future partners. You can see this in Michael J. Rosenfeld and Reuben J. Thomas’s research from the US (see table below). The 2009 cut off date suggests the graph is substantially underreporting the current situation given the growing penetration of smartphones, services such as Tinder and growing social acceptance of online dating.  Alex Mayyasi reports on some of the consequences of this trend including a likely growth in assortative mating which is ultimately likely to undermine social mobility:

How straight couples met their partner

Whilst we’re on the subject of relationships, it’s worth reading Gay Talese’s account of one motel owner’s voyeurism. You might not learn a whole lot about human relationships, but it does makes for an entertaining read.

The featured image is a GoddoG mural from Bordeaux published in ekosystem.

 

Who to follow on Twitter

There’s been a lot of talk in the press recently about Twitter’s move to an algorithmic feed. There’s definite potential if it eases the burden of sifting through our current feed but there’s a real risk that in doing so, Twitter might loose the ‘special sauce’ that makes it so attractive to its current users (it’s worth reading Adam D’Angelo on this).

I figured now might be a good time to give a plug for the Twitter accounts that provide me with a healthy signal to noise ratio and generally avoid double posting (my current pet hate).

Tech, Startups, Media and Marketing

Balaji S. Srinivasan tech analyst, CEO of 21 inc of, board partner of Andreessen Horowitz and blockchain fan.

Ben Thompson technology analyst behind the Stratechery blog and host of the Exponent podcast.

Benedict Evans technology analyst with a focus on mobile who is now working as partner at Andreessen Horowitz. Apparently not a great fan of cultural world of San Francisco despite living there.

Chris Dixon Hunch founder and another Andreessen Horowitz with pointers on the world of technology and startups.

Ian Maude UK based technology, media and internet analyst working for the Be Heard Group.

Marc Andreessen cofounder of Netscape, Loudcloud and now Andreessen Horowitz with strong opinions on technology, economics, the world of startups and politics (libertarian). Bit more noise to signal than the other recommendations.

Om Malik technology analyst, founder of GigaOm and now partner at True Ventures

News and Analysis

If You Only…  Matter cofounder Bobbie Johnson provides a recommended long form journalism read each day.

Max Roser: typically provides an antidote to the naysayers of the world with data that point to human development around the world.

The Economist Daily Charts: provides a regular feed of charts, maps and infographics shedding light on issues in the news.

Tim Harford, journalist who writes as the Undercover Economist at the Financial Times and presenter of More or Less on Radio 4. Great for shining light on some of the issues that matter.

Cycling

Inner Ring: providing updates on the Inner Ring website and announcements from the world of professional cycling

And Me…

Finally, if you’re interested in following me on Twitter, more digital content can be found here and if you like riding bikes there’s here as well.

The featured image is No Amnesia by Pastel in West Palm Beach, Florida, USA

Thought Starters

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

The European Commission has released the Sixth Report on Economic, Social and Territorial Cohesion. The title might not roll off the tongue but it provides a broad range of European statistics including health outcomes, the environment, human development, demographics, crime, the economy and education among other things:

Change in Population The Economist has created an index of where the best country to be born is by looking at a range of quality of life indicators. Care to move to Switzerland?

Where to be born

Retale have pulled together an interactive infographic using U.S. Bureau of Labor Statistics data to providers users with the opportunity to see how the activities of different audiences vary by demographic in the US:

Time Survey

JWTIntelligence has pulled together a report looking at changing family structures in the US. Among the trends highlighted is the evolving nature of the nuclear family, growth in solo living, multigenerational and silver families and the rise of friends as part of family type networks:

The Internet of Things has been getting a lot of attention from the technology sector. The Wall Street Journal looks to pour some cold water on things by pointing out the failure to institute common standards as providing devices interacting that aren’t from the same brand:

Without a common software standard, devices will remain locked into what the German industry experts calls “island solutions”– brands that have a portfolio of products that can talk with each other but won’t be compatible with other brands.

The number of apps available to smartphone and tablet consumers keeps on expanding, but the average consumer only users four according to research from Nielsen:

App Usage

The GlobalWebIndex continues to infographics providing a window into global consumers use of digital.  Recent releases have looked at where WhatsApp, Vine and Pinterest are making an impact:

WhatsApp

Zeynep Tufekci gives an impassioned defence of Twitter in its current form, pointing to the advantages of surfacing content by the human flock rather than an algorithm:

I honestly doubt that there is an algorithm in the world that can reliably surface such unexpected content, so well. An algorithm can perhaps surface guaranteed content, but it cannot surface unexpected, diverse and sometimes weird content exactly because of how algorithms work: they know what they already know. Yet, there is a vast amount of judgement and knowledge that is in the heads of Twitter users that the algorithm will inevitably flatten as it works from the data it has: past user behavior and metrics.

As Twitter broadens its offering to partners by integrating ecommerce functionality with consumers’ Twitter stream with the  trialling of a Buy now button. Whilst the trial is relatively limited in scope at this stage, we can presumably expect to see it rolling out more widely soon:

Research from AOL Platforms points to Youtube as having an important role in introducing products and closing the sale when compared to other social media:

Purchase Funnel

Facebook’s quarterly earning figures released in July pointed to the company as doing a good job of growing its revenues. Analysis from Neustar suggests this position may well continue given that Facebook’s network offering is proving a leader in terms of reach efficiency and average cost although its position is trumped by ad exchanges in the quality of its audience:

Cost Index Online Advertising

Facebook is looking to be more sensitive to consumers’ privacy concerns with the  launch of its  Privacy Checkup to help users better manage their privacy settings:

A report from PageFair points to a 69% increase in the number of consumers using adblock software in the US, raising concerns that online media may be increasingly threatened by declining ad revenues.

Adobe recently released its U.S. Mobile Benchmark Report providing a range of charts shedding light on how users and marketers are taking advantage of mobile. Among the interesting statistics is the use of GPS location data and use of beacon technology:

Location Data

Another interesting data point to emerge from the Adobe presentation is the flatlining of tablet’s share of page views. This provides further ammunition to some commentators’ arguments that tablets are getting squeezed between phablets (smartphones with screen size between 5.01 to 6.9 inches diagonally) and PCs:

Tablet vs Mobile Usage

The growing importance of phablets is given further credence by Flurry’s recently released figures which point to growing market share and TECHnalysis Research’s forecast for forecasted sales in the coming years:

Unit Forecast by Sales notebooks desktops tablets smartphones phablets
Unit Forecast by Sales notebooks desktops tablets smartphones phablets

Apple’s launch of the iPhone 6 and 6 Plus is likely to provide a boost to its smartphone marketshare.  Samsung on the other hand is likely to find itself increasingly squeezed between Apple above and a growing array of Chinese based manufacturers (Xiaomi, Lenovo, Huawei, Coolpad etc) at the mid to lower end:

Smartphone Market Share

Amazon’s Fire Phone was released with much fanfare in late July but the fact that it’s now dropped the price by $200 suggests it hasn’t been a winner among consumers.

Putting this all in perspective is Benedict Evans’ valuable blog post looking at Amazon’s failure to post a substantial profit despite its large revenues:

Amazon Revenue vs Income

Evans points to Amazon’s willingness to reinvest any potential profits back into the business. Some of these investments aren’t going to be an immediate success, but others such as the Kindle have enabled Amazon to gain a market leading position:

Amazon Profit Model

Reddit gets strongly criticised by T.C. Sottek following its failure to take action on the release of nude celebrity photos:

Reddit, he wrote, is “not just a company running a website where one can post links and discuss them, but the government of a new type of community.” So, then, what type of government is Reddit? It’s the kind any reasonable person would want to overthrow.

Tim Harford looks at how we can improve our forecasting, pointing to better understanding probabilistic reasoning, working collaboratively and being open minded as key contributors:

Masha Gessen looks at how the Russian population is being squeezed between declining birth rates and falling mortality rates, pointing towards a loss of hope as a key contributor:

If this is true—if Russians are dying for lack of hope, as they seem to be—then the question that is still looking for its researcher is, Why haven’t Russians experienced hope in the last quarter century? Or, more precisely in light of the grim continuity of Russian death, What happened to Russians over the course of the Soviet century that has rendered them incapable of hope?

The featured image at the top of the page is a PARKER by GoddoG and DelwooD in Biarritz and found on GoddoG’s Flickr stream.