Unintended Consequences — February 25, 2019

Creators need to understand the potential impact of their actions, as evidenced by Honorius and Mary Shelley; skills needed in the age of A.I.; understanding the breadth of autonomous technology is important; the state of influencer marketing includes more scrutiny on relationships and authenticity; retail growth predictions; making Facebook ad-free is difficult; Pinterest is going public; TikTok is the latest advertising casualty; Vox and Sticther expand their partnership; the companies that are sneaking cameras into home devices and airplanes; how much hashtags matter on Facebook and Instagram; treat your weekends like vacations; remembering Sluggy; and more in the Unintended Consequences edition of The Full Monty for the week of February 25, 2019.

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Announcements

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Top Story

When you're creating something, there's got to be some consideration for its impact on humanity. Whether it's a new communications method, a transportation breakthrough, or a piece of entertainment. Part of intelligent design is understanding how it will be used by the masses (should you be successful enough to see mass adoption).

It's where Facebook tripped up and didn't anticipate the nefarious uses of its platform for election manipulation and fake news. And they're still struggling.

YouTube and Pinterest are making strides in this direction after running into similar issues. YouTube is demonetizing anti-vaxxing channels, deleting channels that led to questionable pedophile-related comments, and creating a one-strike warning and stricter rules for punishment. Pinterest simply "broke" its search tool for anti-vaccine searches. Facebook has also taken strides to reduce a number of fake news pages.

But each of these platforms is self-serve: that is, they each allow users to create their own channels by design. The utopian view was that they'd be used to bring people together. It seems they're doing just that — but perhaps for the wrong reasons.

Economists in particular assume that humans make rational decisions. But if history has taught us anything, it's that emotion will always supersede rationality. As much as we like to pontificate from the sideline or armchair, we're driven by emotions.

Philosophers refer to innocent evil: people with moral intentions make decisions that result in immoral consequences. And this is why the technology industry could do with a dose of history, psychology, classics, and philosophy.

Or Timeless Wisdom.

"I had begun life with benevolent intentions and thirsted for the moment when I should put them in practice and make myself useful to my fellow beings. Now all was blasted; instead...I was seized by remorse and the sense of guilt."

— Mary Shelley, Frankenstein

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About this week's image: In The Favourites of the Emperor Honorius by John William Waterhouse (1883), Honorius feeds his pigeons, indifferent to the news that Rome has fallen. According to Gibbon, "the amusement of feeding poultry became the serious and daily care of the monarch of the West" and who "passed the slumber of his life, a captive in his palace, a stranger in his country, and the patient, almost the indifferent, spectator of the ruin of the Western empire, which was repeatedly attacked, and finally subverted, by the arms of the Barbarians." (The History of the Decline and Fall of the Roman Empire, Edward Gibbon, Chapter XXIX)

Artificial Intelligence / Autonomous

The latest in A.I., machine learning, and bots; mobility and autonomous everything.
Aʀᴛɪꜰɪᴄɪᴀʟ Iɴᴛᴇʟʟɪɢᴇɴᴄᴇ / Mᴀᴄʜɪɴᴇ Lᴇᴀʀɴɪɴɢ

As A.I. continues to change the workforce, Microsoft says these three skills are what business leaders will be looking for. (CNBC)
If we want to align advanced A.I. systems with human values, it will require resolving many uncertainties related to human psychology. If we want to train A.I. to do what humans want, we need to study humans, and that means A.I. needs social scientists. (Distill)
Frank Chen's presentation on A.I. + Humanity and the need for careful, thoughtful, empathetic design. (a16z)

Aᴜᴛᴏɴᴏᴍᴏᴜs / Mᴏʙɪʟɪᴛʏ

There's more technology in cars today than ever before. But what you don't understand about it might harm you. (Axios) It's worth spending some time exploring this guide, as there's a lot of misinformation out there.
In fact, 40% of Americans wrongly think a partially automated driving system like Autopilot, ProPilot or Pilot Assist means it can drive the car itself. (AAA) By comparison, on every flight you take, there's always a pilot in the cockpit when autopilot is engaged.
Related: Elon Musk announced that Tesla will have all of its self-driving features by the end of 2019. (CNBC) What could go wrong?
Recent hacks of connected vehicles can teach autonomous vehicle developers how to design cybersecurity measures that are cued by anomalies in vehicle behavior. (Axios)
Lime has hired Morgan Stanley to help create more fundraising opportunities for the electric scooter company. (Bloomberg)

Communications / Marketing / Business Strategy

Industry developments and trends, including advertising & marketing, journalism, customer experience, content, and influencer relations.

Sᴛʀᴀᴛᴇɢʏ / Mᴀʀᴋᴇᴛɪɴɢ / Cᴏɴᴛᴇɴᴛ

It’s ironic that companies often spend significant resources on external strategy advice while ignoring one the most fruitful sources of strategic insights: their own employees. Unfortunately, employees whose ideas about strategy aren’t listened to may quit — and take their ideas with them. (MIT Sloan Management Review)
This year will mark a major milestone in the world of advertising. For the first time, digital ad spending in the U.S. will exceed traditional ad spending. (eMarketer)
The Global State of Influencer Marketing 2019 from Talkwalker found that brands will continue to invest in influencer marketing, but will focus on long-term relationships and will be on high alert regarding authenticity (and the bot-generated boosts some influencers generate). (MarTech Today) Those who game the system are eventually found out.

Authenticity matters. (Timeless Wisdom)

The top 10 CPG categories in 2018 were largely dedicated to our pets and our self-care. (Marketing Charts) Advice: f you've got an idea for a new product, make it be for how we look or feel, or how we take care of our pets.

Jᴏᴜʀɴᴀʟɪsᴍ / Cᴏᴍᴍᴜɴɪᴄᴀᴛɪᴏɴs / Rᴇᴘᴜᴛᴀᴛɪᴏɴ

Budding communications professionals may wince at the focus on video lately, but there's good news: video requires captions and transcripts. (Wistia) I recently addressed a college communications class and mentioned the importance of becoming good writers, above all — it's what will track to any corner of the profession.
If it's a day that ends in 'y,' there's outrage online somewhere. And when big brands have to deal with angry netizens, it's a matter of acknowledge, apologize, and investigate. (WSJ) And of course, it's a matter of knowing what to respond to and what to leave alone.

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Retail Apocalypse

Humans are a transactional species, and the practice — if not the very notion of what retail is — is undergoing a historical metamorphosis.

We're seeing more retail layoffs, as the sector flatlines while the rest of the economy is adding jobs. This is due to store closings and a shift to more ecommerce, while fewer Americans are electing to fill vacant retail jobs. (CNN Business)
Pressured by Amazon, retailers are experimenting with dynamic pricing, where algorithms spit out different figures based on factors that could include time of day, demand, location, competition, and customer buying patterns. (Digiday)
Walmart is doing just fine online, thank you very much. The retail giant's latest numbers show a 43% increase in ecommerce. (CNBC) The multi-pronged online strategy is paying off.
Microsoft is teaming up with Albertsons, America’s second-largest grocery chain, to implement a “frictionless” shopping experience for customers. (The Verge)
Grocery chain Aldi is expanding across the U.S. and is using private label products to help. (Digday)
Two comparative predictions on how much retail sales will grow in 2019. (eMarketer) It's worth paying attention to the difference in numbers and where it comes from.
Most retailers need to learn this lesson: the relationship doesn't end with the sale. (AdWeek) In fact, it begins. Yeah, I'm looking at you, car dealers.
An Atlanta man was arrested for putting fake arrows on the floor at IKEA, creating a labyrinth with no exit. (9gag) First thought: I always assumed that was IKEA's design. Second thought: this man is the hero we need.

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Platforms

News to know about relevant social media and technology platforms that may affect your business.

Fᴀᴄᴇʙᴏᴏᴋ / Iɴsᴛᴀɢʀᴀᴍ / WʜᴀᴛsAᴘᴘ

If you want a sense of Facebook's values, just look at its internal propaganda arm. (Fast Company) Remember: culture eats strategy for breakfast. Also: "What you are screams so loudly in my ears I cannot hear what you're saying" — Ralph Waldo Emerson.
Facebook wants to make a voice assistant that's smarter than Siri or Alexa. (CNBC) "Yes, I'd like to give more of my data to Facebook." - No one ever.
Mark Zuckerberg says an ad-free Facebook isn't as easy as it sounds. (Recode) On the contrary. I'm sure giving up all of that advertising money isn't easy at all.
Despite having less than half of Facebook's monthly active users, Instagram's top 10 accounts generate 5 times more interactions than Facebook's most-engaged accounts, according to data from CrowdTangle. (Axios)
What would you do for your dream home? Nearly half of Millennials would swear off Instagram forever. (The Digital Hub) But then we wouldn't have Instagram photos of those beautiful homes.

Tᴡɪᴛᴛᴇʀ

Users can apply to be part of Twitter's beta test group and get a first look at new features. (Social Media Today)
Twitter's co-founder Ev Williams is leaving the board. (CNBC) Williams is the CEO of Medium, which will likely command more of his attention.
A man was arrested for the 1973 murder of an 11 year-old girl after police recreated her last day in tweets. (NBC Southern California)

Oᴛʜᴇʀ

Pinterest secretly filed paperwork with the Securities and Exchange Commission for an IPO this year. The company saw a 50% increase in revenue over the last year. (TechCrunch) Get in line, along with Lyft, Uber, and Slack.
TikTok has told agency partners in the U.S. that it is working on a biddable advertising option on the platform, signaling it is looking to further open up to advertisers.

Related: here's a short version of the TikTok playbook sent to brands, agencies and influencers. (Slideshare) It's happening again...

Media

The latest in the world of streaming video, audio, and the advertising, pricing and bundling models related to them.

Vɪᴅᴇᴏ

Just as Amazon shocked the retail industry into wokeness, Neflix did the same to the entertainment industry. Hollywood is racing to catch up with Netflix, with Disney in hot pursuit. (Variety) Good longread about the state of the industry.
Spectrum cable subscribers can get streaming access for just $15 a month. (The Verge) Another move showing how cable companies understand the threat and need to change if they don't want to be disrupted out of business.

Aᴜᴅɪᴏ

Vox Media is expanding its partnership with Stitcher, one of the biggest end-to-end podcast companies, to produce a new technology news podcast from Recode as part of a multimillion dollar deal. (Axios exclusive) The Vox podcast lineup is impressive and growing.
Barstool Sports has 25 podcasts that brought in $15 million last year. (Digiday)
No longer just a destination, SoundCloud now helps artists distribute their music to other streaming platforms. (The Verge)
Program of the Week: The featured show is The Allusionist, a podcast that's all about words, hosted by Helen Zaltzman.

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Privacy / Security / Regulatory

Business disruptions in the legal, regulatory, and computer security fields, from hacking to the on-demand economy and more.

Pʀɪᴠᴀᴄʏ / Sᴇᴄᴜʀɪᴛʏ / Hᴀᴄᴋɪɴɢ

Google says the built-in microphone in Nest was never meant to be a secret. (Business Insider) Google: "Our bad. We forgot to tell you about the microphone we accidentally included in your device."
Singapore Airlines and American Airlines confirm that seatback screens have cameras, but say they are disabled. (BuzzFeed News) They're disabled? Well that's a relief.
Google knew that real-time ad exchanges break Europe’s data protection laws, according to emails unearthed by privacy watchdogs. (The Register)
You give apps sensitive information like weight, blood pressure, or menstrual cycles, and they tell Facebook, even if no Facebook account is used to log in and if the end user isn’t a Facebook member. (WSJ) Nothing should surprise us any more. As a matter of fact, Facebook knows what I'm thinking right now.
Internal emails reveal that Facebook planned to spy on Android users. (Computer Weekly) Good grief.

Rᴇɢᴜʟᴀᴛᴏʀʏ / Oɴ-Dᴇᴍᴀɴᴅ Eᴄᴏɴᴏᴍʏ

DoorDash is now valued at $7.1 billion. Food delivery is huge, as more consumers spend money on eating in. (Axios)
UberEats is in the process of selling its Indian business to rival Swiggy. The transaction would give Uber a 10% stake in the company. (Economic Times)

Measurement / Analytics / Data

The future is not in plastics, but in data. Those who know how to measure and analyze it will rule the world.

Gartner has identified augmented analytics, continuous intelligence, and explainable A.I. as the top trends that could disrupt data and analytics industries in the next few years. (Tech Circle)
What's on the adtech and martech horizon in 2019? More valuable data and more accountability in advertising and marketing. (SmartBrief)
StitchFix has a radical data-driven way to sell clothes. They sold $1.2 billion worth last year. (Fast Company)
How much do hashtags matter on Facebook and Instagram? (Trust Insights) Great research here.

Speaking

How can you energize your team and give them actionable ideas for boosting customer engagement? It's all about applying Timeless Wisdom to your process — practical and relatable lessons drawn from historical and literary contexts, updated to inform business growth.

Combine this with Fortune 10 executive experience and some great stories, and you'll be happy that you spent a fraction of what it costs to send your team to a major conference. I'll spend anywhere from an hour to a whole day with your team and give them the power to develop trusted, lasting relationships with your customers.

Let's chat and see if I can customize a session for you.

Mental Nourishment

Other links to help you reflect, improve, or simply learn something new.

Since 2015, Jeff Wysaki has been making fake toys and signs and leaving them in public. Now you'll be able to enjoy them in person at the Museum of Toys pop-up in Los Angeles. (The Verge) I want a bag of Muppet Screams.
The sculpture of ancient Greece has captivated us for centuries. Why we've been fascinated by it for so long.
When we think of our Saturdays and Sundays as vacations — rather than days we’re simply not at work — we return on Monday happier and more refreshed, according to research. (UCLA Anderson)
If you're a public speaker and you want to know how to make people laugh, you need to employ twists in your stories. Twists come in several different flavors: the put-down, the aside, and the exaggeration. (The Accidental Communicator)
Joe Sirola passed away recently. You may not recognize the name (or even the face), but odds are you saw or heard him in a commercial. I remember him fondly for his turn as Sluggy Patterson, a fictitious character developed by Volkswagen, who supposedly invented the "Punch Dub" (or Punch Buggy or Slug Bug) game. (Vimeo) These videos were a favorite of mine during my time at Ford.

Top image credit: The Favourites of Emperor Honorius by John William Waterhouse, 1883 (Google Art Project - public domain)

Monday, February 25, 2019