Ben Bajarin Archives

Thought Starters: Moore’s Law, Snapchat, questions about online advertising and the perils of Donald Trump

Thought Starters provides me with a chance to look through the articles, research and opinion pieces I’ve read, highlighting the more interesting trends, developments and changes in the world you and I live in. This edition looks at Moore’s Law, the ins and outs of Snapchat, some of the questions being raised out online advertising and the threat Donald Trump poses to politics among other things.

Nature recently published an article profiling Moore’s Law and how semiconductor manufacturers are looking at avenues beyond simply adding more transistors to chips. It’ll be interesting to see how the technology industry adapts given the cornerstone that Moore’s Law and the associated industry roadmap of innovation has provided in enabling the computing infused world we live in today.

One of the challenges the semiconductor industry has had to face is the transition from PC to mobile which can be clearly seen in the following graph from Creative Strategies’ Ben Bajarin with the rapid growth of Android, iOS and AOSP:

Quartz’s recent release of a mobile app provides an interesting example of publishers adapting to mobile, offering a stripped back feed of notifications and advertising, familiar to anyone using mobile messaging services:

Snapchat can prove baffling for the uninitiated, with a user interface and visual language that sets it apart from the more traditional social networks (I’m looking at you Facebook and Twitter). Ben Rosen provides a handy guide, drawing on sage advice from his 13 year old sister:

Whilst mobile, PCs and tablets are the dominant paradigms, we’re also beginning to see the emergence of a growing array of new devices blurring the boundaries of what a computing device is. The Amazon Echo is one of the more interesting devices to hit the market recently with the Uber integration providing an indication that the world envisioned in Her isn’t as far off as some people would have you believe:

The online advertising industry has been one of the clear winners over the last ten years with Google and Facebook in particular coming out ahead according to analysis from the Be Heard Group:

That’s not to say the online advertising industry is away laughing. The sector has come under growing scrutiny for failing to deliver for advertisers with Bloomberg last year pointing to growing click fraud with some advertising networks clearly dominated by bot rather than human traffic.

Another key metric is advertising viewability – there’s no point serving an advert to a human if the creative can’t be seen. Research from Meetrics points to a large proportion of European advertising not meeting IAB and the Media Rating Council (MRC) viewability, food for thought for media buyers:

Ben Thompson in a recent posting points to the stranglehold that Facebook and Google have on the online advertising market, offering greater effectiveness, reach, and ROI than their smaller competitors:

Here’s the kicker, though, and the big difference from the era of analog advertising: the Facebook and Google platforms turn TV and radio’s disadvantages on their head:

Facebook and Google have the most inventory and are still growing in terms of both users and ad-load; there is no temporal limitation that works to the benefit of other properties (and Facebook in particular is ramping up efforts to advertise using Facebook data on non-Facebook properties)

It is cheaper to produce ads for only Facebook and Google instead of making something custom for every potential advertising platform

Facebook and Google have the best tracking, extending not only to digital purchases but increasingly to off-line purchases as well

Facebook doesn’t always get its way with the recent judgement by the Indian Government’s blocking the social network’s Free Basics service. A case of neocolonialism by a hungry multinational or an honest attempt to widen internet access to the digitally excluded? I’ll let you be the judge.

Another social network that’s taken a hit recently is Twitter. Whilst the company has been improving its monetisation of traffic, latest figures point to negative user growth which definitely takes some of the shine off things for investors:

Twitter isn’t the only tech company that’s taken a battering of late with talk of a popping of the tech bubble. A more careful examination of stock performances suggest that investors’ FoMO (Fear of Missing Out) has fueled the valuation of some companies well above what they were worth, whilst the fundamentals of others hold up to closer scrutiny:

Donald Trump’s run for president has kept many of us well entertained over the last few months but Ezra Klein gives a pointed reminder of why we shouldn’t be taking his candidacy lightly:

Trump answers America’s rage with more rage. As the journalist Molly Ball observed, “All the other candidates say ‘Americans are angry, and I understand.’ Trump says, ‘I’M angry.'” Trump doesn’t offer solutions so much as he offers villains. His message isn’t so much that he’ll help you as he’ll hurt them.

As Britain’s decision on Brexit looms, President of the European Parliament Martin Schulz provides an impassioned defence of British membership of the European Union:

Dan Fox provides a valuable defence of pretentiousness in The Guardian, suggesting that it typically says more about the accuser than the accused:

Being pretentious is rarely harmful to anyone. Accusing others of it is. You can use the word “pretentious” as a weapon with which to bludgeon other people’s creative efforts, but in shutting them down the accusation will shatter in your hand and out will bleed your own insecurities, prejudices and unquestioned assumptions. And that is why pretentiousness matters. It is a false note of objective judgment, and when it rings we can hear what society values in culture, hear how we perceive our individual selves.

The featured image is a GoddoG mural from LED Thionville in France.

Thought Starters: Facebook keeps on developing, augmented reality and a declining Saudi Arabia

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

As mentioned in the last Thought Starters column, ad blockers pose a serious challenge to the online media industry which has traditionally relied on giving away content in return for providing eyeballs for online advertising. Ben Bajarin puts the case for native advertising and sponsored content as a potential panacea for the industry’s problems.

Whilst the media industry’s confidence has taken something of hit with all the talk of ad blockers, at least comScore’s figures from the US point to a growing appetite for content online driven by growth in mobile consumption:

Quartz profiles research by Helani Galpaya into consumers’ use of internet in the developing world. Among the findings are a considerable proportion of users didn’t see access to Facebook as being part of the internet and the inevitable disparity between the revenues Facebook receives from developed and developing world consumers:

Speaking of Facebook, the social network has been busy. October has seen the launch of the brand awareness optimization tool enabling marketers to understand audiences that have spent more time watching campaigns on Facebook, providing a more nuanced view than simply counting Likes. Facebook has also expanded what consumers can do with their profiles which includes using animated GIFs for their profile photos, allowing people to be a little more expressive with how they present themselves:

Gil Dibner’s quarterly roundup of the European venture capital sector provides a valuable look at where money is going in the region’s startup sector:

Andreessen Horowitz General Partner and WealthFront co founder Jeff Jordan looks at why startups need to singlemindedly focus on growth if they’re to succeed and need to quickly adjust course when growth stalls:

Why? Because the unexpected slowing of growth in a “growth” business presents an existential risk to the company. Growth rates over a company’s history tend to move only one way over time (down); even in hypergrowth companies, growth rates tend to fall to earth … which is why I’ve referred to this effect as “gravity.”

Once gravity takes hold, it’s very hard to reaccelerate the growth of the business. Slowing growth portends a strong possibility that the company will never again experience prior levels of growth going forward.

The last ten years has seen a lot of talk about the experience economy as consumers look to define themselves increasingly by what they do (rather than what they own). This presents a real opportunity for a platform that could bring the right events to consumers’ attention but Hugh Malkin provides a valuable look at why this problem hasn’t been ‘solved’ yet.

Norman Chan’s coverage of the Oculus Connect 2 conference provides a valuable window into developments in the virtual reality sector. Oculus’ Medium platform was among the more mesmerising developments that caught my attention:

A recent holiday where I ran out of reading material had me temporarily reassessing whether a Kindle would be a smart purchase. Given my own thoughts, it was interesting to read Craig Mod’s review of his own digital reading habits which are seeing no shortage of articles being read on mobile devices but a disenchantment with digital books:

As our hardware has grown more powerful and our screens more capable, our book-reading software has largely stagnated

Saudi Arabia presents an interesting case study of the resource curse where an abundance of natural resources delays the need to address structural problems within society. Nafeez Ahmed points out that Saudis won’t be able to put their head in the sand for too much longer as its oil exports fail to keep up with its expanding population:

Like many of its neighbours, such deep-rooted structural realities mean that Saudi Arabia is indeed on the brink of protracted state failure, a process likely to take-off in the next few years, becoming truly obvious well within a decade.

Urban sprawl typically leads to growing dependence on the car but think tank Sustainable Prosperity point out some of the other costs associated with less compact urban forms:

It was disheartening to hear about the mass shooting at a community college in Roseburg, Oregon. Unfortunately Google Trends results point to Americans’ limited attention span when it comes to the issue of guns and gun control (at least until the next tragic shooting):

The AOI World Illustration Awards exhibition is on at Somerset House. Among the pieces that caught my eye were Oliver Kugler’s portraits of Syrian Refugees in Iraqi Kurdistan. Beautiful work and very topical:

The featured image is Legacy by Alexey Luka for the Cibus in Fabula project in Milan.

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:

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:

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:

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:

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

Content that has caught my eye recently, which includes coverage of Amazon, Apple Pay, Facebook’s financial results, the music industry, income inequality among other things.

Vanity Fair has a feature article focusing on the increasingly fraught relationship between Amazon and the publishing industry. The piece charts how Amazon was originally seen as a counterbalance to to the growing power of Borders and Barnes & Noble, but over time it was Amazon that upset the relatively cosy relationships within the publishing industry (albeit at the expense of the consumer).

Whilst Amazon’s hold on the publishing industry appears relatively secure, the company has received a bit of stick recently for its performance in other market segments (most notably the Fire Phone) .

Bezos’ sterling reputation kept few questioning these initiatives, but in recent months that has started to change. A number of recent initiatives seem to be costing more money while not necessarily showing signs of sure success.

Benedict Evans made a strong case a couple of months ago for Amazon’s approach of putting off profits as it invested in new market segments, but Amazon needs to have more winners if this strategy is to work over the long term.

Ben Thompson takes a valuable look at how Apple has carved out a strong strategic position in the payments space by creating a situation of mutual advantage for its customers, credit card networks, banks, and to a lesser degree, merchants:

Technalysis has forecasted healthy growth in the wearable computing category. Whether its enough to provide a lifeline to Samsung and other besieged smartphone manufacturers remains to be seen:

Facebook’s revenue results reported by Benedict Evans point to the company doing a good job of adapting to consumers’ increasing time on their smartphone:

What Facebook is doing a less good of is reducing its reliance on the North American market as reported in Inside Facebook, despite the continued growth of internet and mobile internet penetration in the rest of the World:

Whilst Western consumers are relishing increasing mobile internet speeds, it’s a rather different story for many consumers in the developing world where the cost of data makes internet access a relative luxury. Ben Bajarin talks about the ‘light web’ in which mobile experiences are carefully optimised to reduce the data usage for consumers wary of:

Much has been made of the move by brands from an era of disruption to engagement, enabled by broadening array of interactive digital channels. Given these changes, its valuable to read Tom Doctoroff’s spirited defence of more traditional marketing agencies.

An interesting counterpoint to Doctoroff’s view is Faris who points to the lack of interactivity in the majority of digital advertising, pointing to Honda’s The Other Side campaign as where things should be heading:

You get the idea. I guess I just miss ideas that work on the web, where the user is in control of the interaction. Where everyone gets an interactive experience.

Bradley Leimar takes a look at how banks will look to improve their offering using enhanced digital channels that go beyond simply putting a customer interface online:

We are moving away from a banking relationship defined by the goal of being a customer’s primary financial institution to one where we focus on becoming their primary financial application. It’s no longer about wallet share. It’s about app-driven mindshare – as our customers reach into their pockets for their mobile device or use their glasses or other form of wearable technology and think about their financial relationship choices – before, during, and after a financial moment of truth.

The music industry is adjusting from an ownership to a streaming model. Mark Mulligan argues that the music industry needs to drop the pricing of streaming music if it wants to maximise overall revenues:

Felix Salmon on the other hand focuses his attention on the value of having three dominant record labels in facilitating streaming music services, arguing that an oligopoly in this case serves the interests of consumers.

We take globalisation for granted in the increasingly interconnected world we live in. Given this, it’s interesting to see analysis from Pankaj Ghemawat and Steven Altman which compares how globalised information, trade, people and capital is over the last 10 years:

Thomas Piketty’s Capital in the Twenty-First Century has sparked renewed interest in the issue of income inequality. Oxfam has looked into correlations between income and inequality and health outcomes pointing to some of the more tangible negative outcomes associated with income disparities within countries:

Sorapop Kiatpongsan and Michael Norton’s research points to the vast gap between the income of CEOs and their unskilled workers across different countries, with the wage gap being much larger than most people saw as being appropriate:

The featured image is 25% Black by Elian in Cordoba, Argentina and found on eksoystem.

Tag: Ben Bajarin

Thought Starters: Moore’s Law, Snapchat, questions about online advertising and the perils of Donald Trump

Thought Starters: Facebook keeps on developing, augmented reality and a declining Saudi Arabia

Thought Starters

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