Showing posts with label World Wide Web. Show all posts
Showing posts with label World Wide Web. Show all posts

Tuesday, December 26, 2017

Amazon And Google Employees Busted In Asian Sex Trafficking Sting

Several Seattle employees of both Google and Amazon were busted after using their corporate accounts to send emails to local brothels and pimps looking to purchase services from sex workers trafficked from Asia, according to emails obtained by Newsweek.










"[E]mails obtained by Newsweek reveal another sordid corner of the tech sector’s treatment of women: a horny nest of prostitution “hobbyists” at tech giants Microsoft, Amazon and other firms in Seattle’s high tech alley." 



Many of the emails were swept up in a 2015 sting operation which targeted online chat rooms and message boards in which customers rate sex workers - resulting in the arrest of 18 of these "prostitution hobbyists," including several high level Amazon and Microsoft directors - two of which are currently scheduled for trial in March. 



Seattle brothels had been catering to Microsoft employees through several "backpage.com" ads located nearby the company"s Redmond, WA headquarters, in what is becoming a booming business. 








A study commissioned by the Department of Justice found that Seattle has the fastest-growing sex industry in the United States, more than doubling in size between 2005 and 2012. That boom correlates neatly with the boom of the tech sector there. It also correlates to the surge in high-paying jobs, since this “hobby” (the word johns use online to describe buying sex) can be expensive: some of these men spent $30,000 to $50,000 a year, according to authorities.


 


The tech sector has not only employed a significant number of men who pay for sex with trafficked women, it has also enabled traffickers to more easily reach customers and to hide their business from cops by taking it off the streets and into computers and ultimately, hotel rooms, motels or apartments. In one 24-hour-period in Seattle, an estimated 6,487 people solicited sex on just one of the more than 100 websites that connect buyers with sellers, according to a 2014 study.



Of note, Backpage.com shut down its adult sections in January, citing government pressure following a 2016 Senate report on commercial sex services fingered the website as a hotbed for criminal activity, and stating that "Backpage officials have publicly acknowledged that criminals use the website for sex trafficking, including trafficking of minors." 



Backpage.com CEO Carl Ferrer (Texas AG)


In October, 2016, Backpage CEO Carl Ferrer was arrested in Houston and the company"s Dallas headquarters searched. NPR reported at the time that Ferrer, 55, was charged with pimping a minor, pimping and conspiracy to commit pimping. Two controlling shareholders of Backpage — Michael Lacey and James Larkin — also are charged with conspiracy to commit pimping." 


The prostitutes trafficked from Asia typically don"t speak much English, relying on translation apps to offer services such as "girlfriend" experiences and "Nuru" (nude massage). Many of the women are working their way out of debt bondage, and feared for their lives or those of their families - according to one pimp interviewed during the 2015 sting.


A spokesman for Microsoft said of the emails "Microsoft has a long history of cooperating with law enforcement and other agencies on combating sex trafficking and related topics, and we have employees who volunteer their time and money specifically to combat this issue as well. The personal conduct of a tiny fraction of our 125,000 employees does not in any way represent our culture. No organization is immune to the unfortunate situation when employees act unethically or illegally. When that happens, we look into the conduct and take appropriate action. Microsoft makes it clear to our employees they have a responsibility to act with integrity and conduct themselves in a legal and ethical manner at all times. If they don’t, they risk losing their jobs."


Amazon told Newsweek it"s investigating the matter, and that "It is against Amazon"s policy for any employee or Contingent Worker to engage in any sex buying activities of any kind in Amazon"s workplace or in any work-related setting outside of the workplace, such as during business trips, business meetings or business-related social events." When Amazon suspects that an employee has used company funds or resources to engage in criminal conduct, the company will immediately investigate and take appropriate action up to and including termination. The company may also refer the matter to law enforcement."









Wednesday, December 6, 2017

What Are Retail Investors Buying Right Now?

Submitted by Nicholas Colas of DataTrek Research


Today we want to expand on our recent thoughts on “What are retail investors buying right now?” We showed last week, courtesy of Fidelity Investments data, that mom-and-pops are still adding to positions even on breakouts in US equities. Further, the names at the top of the retail investor league table tend to be single stock Tech names rather than ETFs. Yesterday, for example, Fido’s retail customers were net buyers of NVDA, AMZN, and BABA and those names were the most heavily traded.


One way to assess general interest in any topic is to see what “Autofills” as you start typing into a search engine box. For example, enter “Buy a” into Google, and in NYC the autofills are: "Star", “bitcoin", “car”, “domain”, “dog”.


We assume the first is a holiday gift idea and the second a reflection of the ongoing crypto craze. And “Bitcoin bites dog” does seems to capture the spirit of the age… Autofill works, after all, by using Big Data analysis to guess what you might type next based on how other users in your area completed the same initial text.


To see which specific equities search engine users express the most interesting in purchasing, we typed “Buy stock in” and then noted what Google, Yahoo and Bing came back with in terms of autofills.


For Google “Buy Stock In” the autofills were: Amazon, bitcoin, Apple, Tesla, Weed


For Yahoo!: Marijuana, Amazon, Facebook, Disney, Tesla


For Bing: Amazon, Nike, Wal-Mart, Google, Netflix


Not surprisingly, technology companies dominate popular investment interest; do not, however, slough this off as less-informed retail investors just buying what they know. The point here is that the general population thinks these are the most attractive investment ideas – stocks they want to, or wish they could, own.


This is one (of several) reasons we question the sustainability of any rotation out of the large cap Tech sector in the context of a continued bull market for US stocks generally. Simply put, for many individual investors technology IS the US equity market. And if those stocks do not continue to rise, their enthusiasm for allocating incremental capital to equities may well diminish. Will they trust a US stock market where financials or industrials are the leadership names?


It is hard to imagine “Buy stock in Citibank/JP Morgan/Wells Fargo” ever making it to the top of the autofill charts.









Tuesday, December 5, 2017

Quixey Makes Sense Now

From the Slope of Hope blog: The main drag here in Palo Alto is University Avenue, which is lined with pricey restaurants and retail. One city to the south of us, Mountain View, has their own main drag, and it"s called Castro Street (not to be confused with the gay mecca in San Francisco, half an hour"s drive north).


I"ve walked Castro many times (again, let"s not confuse the two), and I would often pass a very nice building which was neither a restaurant nor a retail store; on the front was a large sign, QUIXEY, and inside the building were dozens of young engineers, all of whom I"m certain were earning great six-figure salaries, working away at their keyboards. Beneath the "Quixey" name was the tag line: "The Search Engine for Apps"



Now this didn"t make a great deal of sense to me. Why would anyone need a search engine for apps? I mean, if I needed to search for an app, I"d go off and do something crazy like this:


SEarch


You know......like........do a search. Quixey bragged, "The technology allowed users to search across multiple platforms, eliminating the need for multiple searches using different mobile devices." Ummm, sorry, if I"m an iPhone user, I don"t give a crap about, say, Android apps.


But people with far more money and far more intelligence than me felt otherwise, and thus:


Finance


Yes, countless tens of millions poured into the Quixey coffers, valuing the company at way over half a billion dollars for what I"m convinced has to be one of the stupidest and most useless ideas in history. But how are you going to fund free lunches and ping pong for your overpaid twenty-somethings without all this cash, people??



Indeed, although I could only see bits and pieces of Quixey from outside the building, it was apparently a fairly spiffy place for a startup. Its office had themed conference rooms constructed by local set designers, such as Ski Lodge, Picnic, Movie Theater, and Wild West. Hell, they even had Up and Down escalators so the little darlings didn"t have to move their legs to change floors.



So color me surprised when this finally happened:


done


Strategic options. Got it. Like wondering where your $133 million went.


But this is all too common in the Silicon Valley. VCs, armed with far more billions to throw at ideas than they know what to do with, will just keep hurling the cash until the next Facebook or Google comes along. One home run makes up for a multitude of past sins. And, for those ideas that are too stupid or fraudulent to make it........they just disappear without a trace.


HolmesMilk









Tuesday, October 10, 2017

Home Depot Panics Over Millennials; Forced To Host Tutorials On Using Tape Measures, Hammering Nails

As wall street analysts celebrate the coming of age of the millennial generation, a group of young people who were supposed to lead another revolutionary wave of consumerism if only they could work long enough to escape their parents" basement, retailers like Home Depot are panicked about selling into what will soon be America"s largest demographic...but not for the reasons you might think. 


While avocado resellers like Whole Foods only have to worry about creating a catchy advertising campaign to attract millennials, Home Depot is in full-on panic mode after realizing that an entire generation of Americans have absolutely no clue how to use their products.  As the Wall Street Journal points out, the company has been forced to spend millions to create video tutorials and host in-store classes on how to do everything from using a tape measure to mopping a floor and hammering a nail.


Home Depot"s VP of marketing admits she was originally hesitant because she thought some of their videos might be a bit too "condescending" but she quickly learned they were very necessary for our pampered millennials.





In June the company introduced a series of online workshops, including videos on how to use a tape measure and how to hide cords, that were so basic some executives worried they were condescending. “You have to start somewhere,” Mr. Decker says.



Lisa DeStefano, Home Depot vice president of marketing, initially hesitated looking over the list of proposed video lessons, chosen based on high-frequency online search queries. “Were we selling people short? Were these just too obvious?” she says she asked her team. On the tape-measure tutorial, “I said ‘come on, how many things can you say about it?’ ” Ms. DeStefano says.



And just in case you think we"re joking and/or exaggerating, here is Home Depot"s tape measure tutorial in all its glory:




Meanwhile, Scotts Miracle-Gro has been forced to start training classes to remind frustrated millennials, who can"t seem to keep their flowers alive, that plants need sunlight to grow (apparently not a single millennial ever took biology in grade school).  Commenting on the tutorials, a defeated VP of Corporate Affairs, Jim King, admitted "these are simple things we wouldn’t have really thought to do or needed to do 15 to 20 years ago"...sorry, Mr. King this is your life now.





The Scotts Miracle-Gro Co. has started offering gardening lessons for young homeowners that cover basic tips—really, really basic—like making sure sunlight can reach plants.



“These are simple things we wouldn’t have really thought to do or needed to do 15 to 20 years ago,” says Jim King, senior vice president of corporate affairs for Scotts. “But this is a group who may not have grown up putting their hands in the dirt growing their vegetable garden in mom and dad’s backyard.”



“They grew up playing soccer, having dance recitals and playing an Xbox,” says Scott’s Mr. King. “They probably didn’t spend as much time helping mom and dad out in the yard as their predecessors or their predecessors’ predecessors.”



Companies such as Scotts, Home Depot Inc., Procter & Gamble Co. , Williams-Sonoma Inc.’s West Elm and the Sherwin-Williams Co. are hosting classes and online tutorials to teach such basic skills as how to mow the lawn, use a tape measure, mop a floor, hammer a nail and pick a paint color.



Unfortunately, at least for the Home Depots of the world, millennials now represent the largest demographic in America with 4.75 million 26 year olds roaming the streets of New York, San Francisco and Los Angeles without a clue as to how to use a tape measure.





The biggest single age cohort today in the U.S. is 26-year-olds, who number 4.8 million, according to Torsten Slok, chief international economist for Deutsche Bank . People 25, 27 and 24 follow close behind, in that order. Many are on the verge of life-defining moments such as choosing a career, buying a house and having children.



Millennials as a whole are America’s latest demographic bubble, overtaking the baby boom generation and, like them, transforming popular culture, retailing, media and lifestyles. They make up about 42% of all home buyers today, and 71% of all first-time home buyers, according to Zillow Group . Some 86% of millennial home buyers reported making at least one improvement to their home in the past year, more than any other generation, Zillow says.





While we have our doubts that it will save their business, retailers like J.C. Penney and West Elm are trying to adapt to the millennial generation by offering basic in-home services like installing televisions or hanging wall art.





J.C. Penney Co. says the group is willing to hire others for projects. The retailer has pushed into home services, including furnace and air-conditioning repair, water-treatment systems and bathroom renovations, and expanded its window-covering installation.



“They’re much more of a ‘Do-It-for-Me’ type of customer than a ‘Do-It-Yourself’ customer,” says Joe McFarland, executive vice president of J.C. Penney stores. “You don’t need a ladder or a power drill, you don’t even have to wonder if you measured your window right.”



Home-furnishings retailer West Elm offers service packages, which start at $129, to provide plumbing and electrical work, painting, installing a television and hanging wall art and mirrors.





All that said, at least some millennials are trying to be more self-sufficient...as an example, the WSJ notes the case of 26-year-old Breanne Loes who recently borrowed her dad"s power tools to craft a wooden headboard...which went really well AFTER she realized the saw blade was on backwards.





Ms. Loes enjoys do-it-yourself projects, and two summers ago built with her now-husband a wooden headboard in her parents’ garage, with help from an online tutorial, her dad, two older brothers and their tools.



The saw wasn’t working at first because the blade was backward. “That was embarrassing,” says Ms. Loes.



Congrats, Breanne, really great job...really.

Saturday, October 7, 2017

YouTube "Tweaks" Its Search Algos After Las Vegas Conspiracy Theories Go Viral

In Silicon Valley"s ongoing crusade to make sure that you only consume mainstream media propaganda, you know because $100,000 worth of Facebook ads crushed Hillary"s campaign and changed the course of human history forever, YouTube has joined the likes of Facebook and Twitter in saying that it will promote more "authoritative sources in search results" going forward.  All of which, once again, begs the question of who gets to determine who is an "authoritative source?"


As the Wall Street Journal points out today, YouTube searches for "Las Vegas Shooting" earlier this week included a video from "End Times News Report" with the title "Proof Las Vegas Shooting Was a FALSE FLAG Attack - Shooter on 4th Floor."  The video, created by Jake Morphonios who posts YouTube videos in his spare time, quickly went viral and amassed over 1.1 million views in just 27 hours...but all that changed when YouTube decided to censor Morphonios" content and replace it with mainstream media videos...you know for your protection.





For example, the fifth result when searching “Las Vegas shooting” on YouTube late Tuesday yielded a video titled “Proof Las Vegas Shooting Was a FALSE FLAG attack—Shooter on 4th Floor.” The video said there were multiple shooters in Sunday’s mass shooting, a claim dismissed by law enforcement. Posted by a channel called the End Times News Report, it amassed more than 1.1 million views in about 27 hours.



The high search ranking of the End Times News Report video claiming there was a second shooter in Las Vegas helped it gain 371,000 views over four hours late Tuesday. On Wednesday, YouTube removed the video.



Jake Morphonios, who runs the End Times News Report along with a damaged-inventory-liquidation business in Kernersville, N.C., said the video eventually reached 2.5 million views. “It was a hot topic, of course, and was going to get some views anyway, but it really did get caught in [YouTube’s] algorithm and went viral from there,” he said. “Clearly it got into featured videos or something.” The 43-year-old said he has posted about 800 videos and typically gets about 5,000 views each.



He said he aims to offer viewers information on news events that mainstream news sources won’t. “It’s my opinion, it’s my analysis, and everyone’s got an opinion, and I can understand that maybe they don’t want me to be considered the equivalent of The Wall Street Journal or the New York Times or something like that,” he said. “But still, I’m not presenting myself as mainstream media. I’m just a guy with a computer offering an opinion. And to be punished for that is, well, it’s draconian.”




Not surprisingly, YouTube said the the "tweaks" made to their search engines were designed to promote more "authoritative sources," especially when searches are related to "major news events."





In response to criticism on social media of some search results this week, a person familiar with YouTube said the company is accelerating the rollout of planned changes to its search engine. On Wednesday night, the video service began promoting more authoritative sources in search results, especially pertaining to major news events, the person said. YouTube doesn’t disclose how it determines which sources are authoritative.



But while YouTube refused to offer any insights into how they plan to decipher "authoritative sources" from "non-authoritative sources", running the same search for "Las Vegas shooting" today, after YouTube"s "tweaks", provides some clues on their methodology...



Conclusion, YouTube"s "tweaks" have turned it into nothing more than a mainstream media echo chamber.

Monday, October 2, 2017

Google Reports Record Level Of Government Data Requests

Google has just released its biannual transparency report disclosing the number of requests governments send for users" private data.


As Statista"s Niall McCarthy details, in the first six months of this year, the search engine giant received 48,941 requests for data while 83,345 accounts were specified in those requests.


Infographic: Google Reports Record Level Of Government Data Requests | Statista


You will find more statistics at Statista


That has broken the record for the most Google user data requests in a six month period.


The company complied with 65 percent of the requests, meaning over 54,000 accounts were impacted.

Sunday, October 1, 2017

To Increase America's Productivity, Ban This...

Aside from short-lived booms in the 1990s and 2000s, US productivity growth has averaged just 1.2% from 1975 up to today after peaking above 3% in 1972.


As we detailed previously, adjusting for the WWII anomaly (which tells us that GDP is not a good measure of a country’s prosperity) US productivity growth peaked in 1972 – incidentally the year after Nixon took the US off gold.



The productivity decline witnessed ever since is unprecedented. Despite the short lived boom of the 1990s US productivity growth only average 1.2 per cent from 1975 up to today.


If we isolate the last 15 years US productivity growth is on par with what an agrarian slave economy was able to achieve 200 years ago.


As we reported last year, users spent 51% of their total internet time on mobile devices, for a total of 5.6 hours per day snapchatting, face-booking, insta-graming and taking selfies.



It"s an everyday sight - people using their phones while sitting on the train, waiting for a bus, or even having a meal with their partner.



What exactly are they doing the whole time though?


When it comes to social networks, Verto Analytics may have the answer. The most time spent in the U.S. on a "mainstream" app is the 899 minutes per month of the average Facebook user.


The social network whose users invest the most time though is a networking app for gay, bi, and curious men - Grindr. WIth a huge 1,040 minutes on average, that"s over 17 hours every month.


In third place, Growlr is also a networking/dating app for homosexual men. The average user here spends 665 minutes per month.


In eighth, Twitter"s struggles are again highlighted, with only 176 minutes in Q3 2017.


Figures refer to usage across all platforms, not just mobile.


Infographic: The Most Time Consuming Social Networks | Statista


You will find more statistics at Statista


So, maybe in their next wide-ranging study, economists could include a test group of workers who leave their phones in a locker at the beginning of the work day, and try to measure how much their “productivity” improves. So, while every effort can be made by Ivory Tower academics to solve the problem of American worker productivity, perhaps it can be summed up simply as "Put The Smart-Phone Down!"

Thursday, September 14, 2017

Facebook Promises To Censor All Material That Makes Zuckerberg Sad

Earlier this morning, Facebook Vice President of Media Partnerships shared a new blog post on the company"s website detailing precisely how they intend to censor content with which they happen to disagree.  Apparently all content providers who share "clickbait or sensationalism, or post misinformation and false news" will be deemed ineligible to monetize their efforts over Facebook.





To use any of our monetization features, you must comply with Facebook’s policies and terms, including our Community Standards, Payment Terms, and Page Terms. Our goal is support creators and publishers who are enriching our community. Those creators and publishers who are violating our policies regarding intellectual property, authenticity, and user safety, or are engaging in fraudulent business practices, may be ineligible to monetize using our features.



Creators and publishers must have an authentic, established presence on Facebook — they are who they represent themselves to be, and have had a profile or Page on Facebook for at least one month. Additionally, some of our features like Ad Breaks require a sufficient follower base, something that could extend to other features over time.



Those who share content that repeatedly violates our Content Guidelines for Monetization, share clickbait or sensationalism, or post misinformation and false news may be ineligible or may lose their eligibility to monetize.



Ironically, the biggest peddlers of "clickbait or sensationalism, or misinformation and false news" these days seems to be the largest, and "most respected" mainstream media outlets...presumably there is a carve out for the likes of CNN, NYT and Wapo?


Zuck


Of course, we first noted the efforts of Facebook to combat the spread of "fake news" over social media back in December 2016 when they first introduced a filter intended to flag "fake" content so that users wouldn"t have to go through the hassle of critically analyzing information on their own.  As we noted at the time, it was a genius plan, except for one small issue:  who determines what is considered "fake news" and how exactly do they draw those conclusions?  From our prior post (see "Facebook Launches Campaign To Combat "Fake News""):





The first problem, however, immediately emerges because as NBC notes, "legitimate news outlets won"t be able to be flagged", which then begs the question who or what is considered "legitimate news outlets", does it include the likes of NYTs and the WaPos, which during the runup to the election declared on a daily basis, that Trump has no chance of winning, which have since posted defamatory stories about so-called "Russian propaganda news sites", admitting subsequently that their source data was incorrect, and which many consider to be the source of "fake news".



Also, just who makes the determination what is considered "legitimate news outlets."



Luckily, Zuckerberg cleared up all the confusion in a subsequent post in which he basically admitted that all "fact-checking" would be outsourced to disaffected Hillary voters and the completely impartial, "myth-busting" website Snopes.com.





Historically, we have relied on our community to help us understand what is fake and what is not. Anyone on Facebook can report any link as false, and we use signals from those reports along with a number of others -- like people sharing links to myth-busting sites such as Snopes -- to understand which stories we can confidently classify as misinformation. Similar to clickbait, spam and scams, we penalize this content in News Feed so it"s much less likely to spread.



Keep in mind folks, this entire Facebook witch hunt has been prompted by $50,000 worth of ads that "MAY" have been purchased by Russian-linked accounts to run "potentially politically related" ads. 

Tuesday, September 12, 2017

A Startling Anecdote About Online Ad Spending From Restoration Hardware

Category 1 storm clouds are gathering over what has traditionally been one of the most lucrative, and perhaps only profitable, sectors to come out of Silicon Valley in decades: online advertising.


Two months ago, it was P&G which fired the first shot across the "adtech" bow when not long after it announced it was slashing its digital ad spending because it thought it was not getting the kind of return on investment it desired, it made a striking discovery: “We didn’t see a reduction in the growth rate.” CFO Jon Moeller said “What that tells me is that that spending that we cut was largely ineffective.”


Speaking to the WSJ, P&G CEO David Taylor echoed Moeller when he explained that cuts on digital ads are part of a larger strategy to more quickly halt spending on things – from ad campaigns to product development programs - that aren"t working: “we got some data that said either it was in a bad place or it was not effective,” Taylor said of the digital cuts. “And we shut it down and said, ‘We’re not going to follow a formula of how much you spend or share of voice. We want every dollar to add value for the consumer or add value for our stakeholders.”


Previously P&G"s CFO had said that “the reduction in marketing that occurred was almost all in the digital space. And what it reflected was a choice to cut spending from a digital standpoint where it was ineffective: where either we were serving bots as opposed to human beings, or where the placement of ads was not facilitating the equity of our brands."


Moeller also touched on the two most common complaints about digital advertising scams: advertisers are paying for ads that are viewed and clicked on by bots, not humans; and ads are placed by thousands of automated “ad exchanges” that are out of control of the advertiser on sites and pages that don’t match the advertiser’s products.


Commenting on this, in late July, Wolf Richter summarized the state of affairs as follows:





Marketing executives of other companies too have long riled against the murkiness of digital advertising, the false promises, the intractability of the Internet, the clicks and views by bots on which advertisers are wasting their money, and the billions of dollars that get blown without results. But getting a grip on what works and what doesn’t is hard.



There’s a larger issue: Retail spending (not adjusted for inflation) has grown on average 2.4% per year in the US over the past five years. Over the same period, digital advertising nearly doubled to $72.5 billion in 2016. Clearly, even digital advertising – despite the lure of Facebook and the like – cannot induce consumers overall to spend more and increase the size of the overall pie for advertisers. It can only, at best, divide up the pie differently.



And when one of the most sophisticated high-tech advertisers in the world decides it is overspending on digital advertising and is able to very carefully remove the rot, thus bringing down its cost without hurting its revenues, other companies will follow, with some consequences for the relentless but often ineffective surge of digital advertising dollars.



Of course, the implications to this admission that online advertising was either being gamed by bots, or generally underperforming were significant, as it jeopardized the future revenue streams of two of the biggest companies in the world, Alphabet (aka Google) and Facebook, both almost entirely reliant on online advertising. How long before other anchor names decided to similarly cut back on their online ad spending?  In short: slowly but surely, chronic buyers online advertising space, are slowly waking up to the fact that "adtech" may be one of the biggest hype (and hope) bubbles in history. Not all of it, but a material, substantial portion: one that may be responsible for a significant chunk of Google"s or Facebook"s cash flow and market cap.


A separate, if just as concerning problem emerged last month, when the WSJ reported that online ad giant, Google, would issue refunds to advertisers for ads bought through its platform that ran on sites with fake traffic, and generated no actionable advertising "clicks." Just how much of Google"s ad revenue (and thus profits and market cap) had been inflated over the years by said "fake ads"?


* * *


So fast forward to last week, when during Thursday"s Global Retailing Conference organized by Goldman Sachs, Restoration Hardware delightfully colorful CEO, Gary Friedman, divulged the following striking anecdote about the company"s online marketing strategy, and the state of online ad spending in general (courtesy of @parsimony16). What Friedman revealed - in brief - was the following: "we"ve found out that 98% of our business was coming from 22 words. So, wait, we"re buying 3,200 words and 98% of the business is coming from 22 words. What are the 22 words? And they said, well, it"s the word Restoration Hardware and the 21 ways to spell it wrong, okay?"


Stated simply, the vast, vast majority of online ad spending is wasted, chasing clicks that simply are not there.


Here is the full must read excerpt from the conference (full link here):





I"ll share a little anecdote with you on this point.



We had our marketing meeting in the company several years ago and the online marketing team was pitching to double their budget, right, and at the time, say, look, nobody in the company is doubling their budget. But tell me why you believe that"s the right thing to do. And they said, well, look, our customer acquisition cost and our ad cost is the lowest in the company. And I said, well, tell me about the data, show me how. And they said, well, people who click through the words that we buy on Google, the ad cost was lowest. And I said, how do you know that they"re clicking on the word and going to the website because of the word you bought versus they saw a store or they received a source book? They said, oh, we know.



I said, well, how many words do you buy? They said 3,200. 3,200 words. I said, well, what are the top words? How are they ranked, the ranking of the words? Oh, we don"t have that, right. And I was getting the look at like, oh, Gary is kind of one these old brick-and-mortar guys. He just doesn"t get it.



And I said, well, what are the top 10 words? And they didn’t have the information. I said, why don"t we cancel the meeting and come back next week when you have the data? I"m sure that Google sales representatives who are taking you to the expensive lunches and selling you the 3,200 words have that data. So why don"t we get the data and then let, review the data?



And they came back the next week and we sat in a meeting and all of a sudden, I can tell you there"s a little change in the faces. They had to wear it kind of down. Everybody kind of came in. I said, so what did we find out?



And they said, well, we"ve found out that 98% of our business was coming from 22 words. So, wait, we"re buying 3,200 words and 98% of the business is coming from 22 words. What are the 22 words? And they said, well, it"s the word Restoration Hardware and the 21 ways to spell it wrong, okay?



Immediately the next day, we cancelled all the words, including our own name. By the way, we are paying for the little shaded box above our words and said, oh no, we have to hang on to that because Pottery Barn might squat on top of us. I said, excuse me? I said, if someone goes to a mall or a shopping center and they"re going to Restoration Hardware and there"s a Pottery Bam there, they"re already squatting, okay? It doesn"t mean they"re going to go into their store. If somebody wanted to buy a diamond from Tiffany and just because Zale"s is sitting on top of them in a shaded box doesn"t mean they"re going to go to Zale"s and buy a diamond.



I mean, I can"t believe how many companies buy their own name and they"re paying Google millions of dollars a year for their own name, like maybe if this is webcast, right, a lot of people are going to go, holy crap. They"re going to look at their investments. They"d go, maybe we don"t need to buy our own name. Google"s market cap might go down...



One wonders how long before all retailers - most of whom are notoriously strapped for revenues and profits courtesy of Amazon - and other "power users" of online advertising, do a similar back of the envelope analysis, and find that they, like RH, are getting a bang for only 2% of their buck? What will happen to online ad spending then? And what will happen to the online ad giants, if the vast majority of ad spending that justified their hundreds of bilions in market cap is exposed as "bloat"? As Friedman politely, yet sarcastically put it, "Googles market cap might go down"...

Saturday, September 2, 2017

"Yes, Google Uses Its Power to Quash Ideas It Doesn't Like - I Know Because It Happened To Me"

Authored by Kashmir Hill via Gizmodo.com,


The story in the New York Times this week was unsettling: The New America Foundation, a major think tank, was getting rid of one of its teams of scholars, the Open Markets group. New America had warned its leader Barry Lynn that he was “imperiling the institution,” the Times reported, after he and his group had repeatedly criticized Google, a major funder of the think tank, for its market dominance.


The criticism of Google had culminated in Lynn posting a statement to the think tank’s website “applauding” the European Commission’s decision to slap the company with a record-breaking $2.7 billion fine for privileging its price-comparison service over others in search results. That post was briefly taken down, then republished. Soon afterward, Anne-Marie Slaughter, the head of New America, told Lynn that his group had to leave the foundation for failing to abide by “institutional norms of transparency and collegiality.”


Google denied any role in Lynn’s firing, and Slaughter tweeted that the “facts are largely right, but quotes are taken way out of context and interpretation is wrong.”


Despite the conflicting story lines, the underlying premise felt familiar to me:





Six years ago, I was pressured to unpublish a critical piece about Google’s monopolistic practices after the company got upset about it. In my case, the post stayed unpublished.




I was working for Forbes at the time, and was new to my job. In addition to writing and reporting, I helped run social media there, so I got pulled into a meeting with Google salespeople about Google’s then-new social network, Plus.


The Google salespeople were encouraging Forbes to add Plus’s “+1" social buttons to articles on the site, alongside the Facebook Like button and the Reddit share button. They said it was important to do because the Plus recommendations would be a factor in search results—a crucial source of traffic to publishers.


This sounded like a news story to me. Google’s dominance in search and news give it tremendous power over publishers. By tying search results to the use of Plus, Google was using that muscle to force people to promote its social network.


I asked the Google people if I understood correctly: If a publisher didn’t put a +1 button on the page, its search results would suffer? The answer was yes.


After the meeting, I approached Google’s public relations team as a reporter, told them I’d been in the meeting, and asked if I understood correctly. The press office confirmed it, though they preferred to say the Plus button “influences the ranking.” They didn’t deny what their sales people told me: If you don’t feature the +1 button, your stories will be harder to find with Google.


With that, I published a story headlined, “Stick Google Plus Buttons On Your Pages, Or Your Search Traffic Suffers,” that included bits of conversation from the meeting.





The Google guys explained how the new recommendation system will be a factor in search. “Universally, or just among Google Plus friends?” I asked. ‘Universal’ was the answer. “So if Forbes doesn’t put +1 buttons on its pages, it will suffer in search rankings?” I asked. Google guy says he wouldn’t phrase it that way, but basically yes.



(An internet marketing group scraped the story after it was published and a version can still be found here.)


Google promptly flipped out. This was in 2011, around the same time that a congressional antitrust committee was looking into whether the company was abusing its powers.


Google never challenged the accuracy of the reporting. Instead, a Google spokesperson told me that I needed to unpublish the story because the meeting had been confidential, and the information discussed there had been subject to a non-disclosure agreement between Google and Forbes. (I had signed no such agreement, hadn’t been told the meeting was confidential, and had identified myself as a journalist.)


It escalated quickly from there. I was told by my higher-ups at Forbes that Google representatives called them saying that the article was problematic and had to come down. The implication was that it might have consequences for Forbes, a troubling possibility given how much traffic came through Google searches and Google News.


I thought it was an important story, but I didn’t want to cause problems for my employer. And if the other participants in the meeting had in fact been covered by an NDA, I could understand why Google would object to the story.


Given that I’d gone to the Google PR team before publishing, and it was already out in the world, I felt it made more sense to keep the story up. Ultimately, though, after continued pressure from my bosses, I took the piece down—a decision I will always regret. Forbes declined comment about this.


But the most disturbing part of the experience was what came next: Somehow, very quickly, search results stopped showing the original story at all. As I recall it—and although it has been six years, this episode was seared into my memory—a cached version remained shortly after the post was unpublished, but it was soon scrubbed from Google search results. That was unusual; websites captured by Google’s crawler did not tend to vanish that quickly. And unpublished stories still tend to show up in search results as a headline. Scraped versions could still be found, but the traces of my original story vanished. It’s possible that Forbes, and not Google, was responsible for scrubbing the cache, but I frankly doubt that anyone at Forbes had the technical know-how to do it, as other articles deleted from the site tend to remain available through Google.


Deliberately manipulating search results to eliminate references to a story that Google doesn’t like would be an extraordinary, almost dystopian abuse of the company’s power over information on the internet.


I don’t have any hard evidence to prove that that’s what Google did in this instance, but it’s part of why this episode has haunted me for years: The story Google didn’t want people to read swiftly became impossible to find through Google.


Google wouldn’t address whether it deliberately deep-sixed search results related to the story. Asked to comment, a Google spokesperson sent a statement saying that Forbes removed the story because it was “not reported responsibly,” an apparent reference to the claim that the meeting was covered by a non-disclosure agreement. Again, I identified myself as a journalist and signed no such agreement before attending.


People who paid close attention to the search industry noticed the piece’s disappearance and wrote about it, wondering why it disappeared. Those pieces, at least, are still findable today.


As for how effective the strategy was, Google’s dominance in other industries didn’t really pan out for Plus. Six years later, the social network is a ghost town and Google has basically given up on it. But back when Google still thought it could compete with Facebook on social, it was willing to play hardball to promote the network.


Google started out as a company dedicated to ensuring the best access to information possible, but as it’s grown into one of the largest and most profitable companies in the world, its priorities have changed. Even as it fights against ordinary people who want their personal histories removed from the web, the company has an incentive to suppress information about itself.


Google said it never urged New America to fire Lynn and his team. But an entity as powerful as Google doesn’t have to issue ultimatums. It can just nudge organizations and get them to act as it wants, given the influence it wields.


Lynn and the rest of the team that left New America Foundation plan to establish a new nonprofit to continue their work. For now, they’ve launched a website called “Citizens Against Monopoly” that tells their story. It says that “Google’s attempts to shut down think tanks, journalists, and public interest advocates researching and writing about the dangers of concentrated private power must end.”


It’s safe to say they won’t be receiving funding from Google.


*  *  *


Update, September 1, 1:55 p.m.: Yesterday, we asked Google’s communications team for a response to this story. Initially, after reviewing contemporaneous internal Google emails about the Forbes story, two PR reps told us there was no way to know whether Google was responsible for deleting the cache and issued a short statement saying only that Forbes took down my story because it was “not reported responsibly.”


This morning, Google’s vice president of global communications, Rob Shilkin, emailed me to say definitively what two of his colleagues wouldn’t: “We had nothing to do with removing the article from the cache.” When I asked Shilkin how he came to that conclusion, he said it was based on old internal Google email threads. Since his colleagues had old email threads about the issue but never denied that Google took down the cache, I asked Shilkin if I could see the threads myself. He declined. His entire email, which he agreed to publish, is below.





Hi Kashmir



I wanted to clear the air on this. We have always enjoyed working respectfully with you and are sad to hear that you’ve carried this since 2011. I’m sorry about how this went down, and wanted to give you the tick-tock from our end.



From our perspective, this was a disagreement over whether a meeting was held under NDA. As you know, you attended a Forbes business meeting with the Google sales team, which was presenting on the (then) new +1 button. It didn’t strike our sales team as unusual that someone from Forbes’ editorial was in the meeting because they’d often attend these types of meetings - Editorial is often involved in a publication’s social strategy.



However, like most of our client meetings that discuss new features, it was held under an NDA (it sounds like Forbes didn’t inform you of this before you attended and had we known you were going to report on the meeting, we would have raised that concern).



Our sales team called their fellow attendees of the meeting from Forbes to express surprise that the article was based on a meeting held under NDA. I understand that one of our PR reps raised this concern to you, and then your editor. I understand that our PR rep asked that the piece come down from Forbes’ website, as it was reporting on a confidential business meeting.



Your editor agreed - he told our PR rep that the article was being removed because it involved reporting on an NDA meeting. As for the Google cache, it’s trivial for a website owner to request its cache to be cleared (see here). I assume this is what happened because we had nothing to do with removing the article from the cache. I hope our team has enough credibility, among those who work with us, that you know that we couldn’t and wouldn’t engage in this type of behavior - never have, never will.



You have long held our and the tech industry’s feet to the fire on privacy issues. And you have written (more than) a few critical stories about Google+ and many other things Google-related :) To my knowledge, never have we had any issues like this, with even the most critical story. On this one piece, there seems to have been an unfortunate misunderstanding over whether all the attendees at a meeting believed they were under an NDA.



I won’t pretend to love how you shared your concern about this incident but - after a stiff drink - I’m glad you raised it. I hope that in the intervening six years, we’ve re-earned your trust. And if not, we’ll keep trying.



Regards


Rob



 

Thursday, August 24, 2017

ESPN Prez Defends Idiotic Decision To Create A National Controversy That Never Existed

ESPN President John Skipper should probably lookup the meaning of "primum non nocere."  Medical school students all across the country are taught this Latin phrase, meaning "first, do no harm," on their first day of classes as a reminder that, given any problem, their first priority should be to simply not make it worse than it already is.


Unfortunately, Skipper doesn"t seem to subscribe to this theory because if he did he would realize that sometimes the best way to address a controversy that never should have happened is simply to keep your mouth shut and "do no further harm."  Alas, Skipper"s clearly not a doctor and thus we"re all stuck having to read another statement from ESPN attempted to explain why they made a truly moronic decision.


Here"s the new statement in which ESPN now makes it seem as if it wasn"t actually their decision to pull Robert Lee off the air in Virginia, but rather Lee"s decision intended to avoid "social media hectoring and trolling"....





"Given the amount of media attention being generated by on of the countless, routine decisions our local production teams make every day, I wanted to make sure you have the facts.  There was never any concern - by anyone, at any level - that Robert Lee"s name would offend anyone watching the Charlottesville game.



Among our Charlotte production staff there was a question as to whether - in these divisive times -- Robert"s assignment might create a distraction, or even worse, expose him to social media hectoring and trolling.  Since Robert was their primary concern, they consulted with him directly.  He expressed some personal trepidation about the assignment and, when offered the chance to do the Youngstown State / Pitt game instead, opted for that game -- in part because he lives in Albany and would be able to get home to his family on Saturday evening. 



I"m disappointed that the good intentions of our Charlotte colleagues have been intentionally hijacked by someone with a personal agenda, and sincerely appreciate Robert"s personal input and professionalism throughout this episode."





...because this path worked out really well for avoiding "social media hectoring and trolling."



Of course, Skipper"s new statement, which makes it seems as if the decision was all Lee"s idea, somewhat contradicts ESPN"s original statement that said it just "felt right to all parties."





“We collectively made the decision with Robert to switch games as the
tragic events in Charlottesville were unfolding, simply because of the
coincidence of his name. In that moment it felt right to all parties.
It’s a shame that this is even a topic of conversation and we regret
that who calls play by play for a football game has become an issue.”



Skipper, do us all a favor and read the first sentence of this post again...


* * *


For those who managed to ignore this story line so far, below is our post from yesterday.


We"ve been saying this a lot lately, but just when you thought the political climate in this country couldn"t get any more wacky ESPN has to go and pull an Asian-American announcer, who just happens to be named Robert Lee, off the William and Mary vs. University of Virginia college football game because of concerns they might create a mass-triggering of America"s snowflakes. 


Is this even real life anymore?  So the fragile millennial culture now demands that you should be thrown in jail if you call them by the wrong pronoun but it"s totally fine if their insecurities literally derail a person"s career because they refuse to be "assaulted" by the name his parents happened to give him?


Outkick the Coverage broke the story last night with this summary:





In a story that seems made for The Onion, but is actually true, according to multiple Outkick fans inside ESPN MSESPN decided to pull an Asian college football announcer named Robert Lee off the William and Mary at University of Virginia college football game because they were concerned that having an ASIAN FOOTBALL ANNOUNCER NAMED ROBERT LEE would be offensive to some viewers.



Did I mention that Robert Lee is Asian?



Is this even real life anymore? This might even be worse than MSESPN apologizing for the fantasy football slave draft a couple of weeks ago.



To avoid offending left wing idiots Robert Lee, the Asian college football announcer, not the Confederate General who died in 1870 and shares a name with him, was switched to the Youngstown State at Pittsburgh game and Dave Weekley will now call the William and Mary at University of Virginia game.



Robert Lee



Meanwhile, ESPN issued the following statement:





“We collectively made the decision with Robert to switch games as the tragic events in Charlottesville were unfolding, simply because of the coincidence of his name. In that moment it felt right to all parties. It’s a shame that this is even a topic of conversation and we regret that who calls play by play for a football game has become an issue.”



Not surprisingly, ESPN has been mercilessly mocked on social media for their truly moronic decision as #RobertLee quickly shot to the top of Twitter"s trending board.





Of course, ESPN may be a little sensitive to race issues after being blasted all last week for hosting a fantasy football auction that many people likened to a slave auction...


Wednesday, August 16, 2017

"March On Google" Protest Postponed Due To "Credible Terrorist Threat"

A protest march planned for Saturday at Google in Mountain View has been postponed, according to a blog post by its organizers, who said they had received "credible" terrorist threats.


As the Mercury News reports, the “Peaceful March on Google” has been postponed “due to credible Alt Left terrorist threats for the safety of our citizen participants,” the group wrote in a blog post. The group is protesting against the recent termination of engineer James Damore over a memo claiming which slammed the search giant for its "anti-conservative" bias and claimed a biological basis for the gender gap in tech.


From the blog:





Despite our clear and straightforward statements denouncing bigotry and hatred, CNN and other mainstream media made malicious and false statements that our peaceful march was being organized by Nazi sympathizers. Following the articles, credible threats from known Alt Left terrorist groups have been reported to and relevant authorities have been notified.



In one instance, an Alt Left threat was made to use an automobile to drive into our peaceful march.



The blog also notes that in addition to the Mountain View campus, there were protests planned at Google offices in eight other cities, including New York City, Washington D.C., Boston, Austin, Atlanta, Los Angeles, Pittsburgh, and Seattle. The group hopes to hold its protest in a few weeks.


Complicating scheduling, the original protest was announced before violence erupted over the weekend in Virginia episode. That violence has now led to a counterprotest scheduled for the same time this Saturday, about three miles away from Google’s headquarters. On Tuesday, Mountain View police released a public statement saying the a planned protest was scheduled “for two hours Saturday afternoon at Charleston Park known as the March on Google”, the Mercury News reported.





“The organizers of this protest are not connected to the participants or to the events that led to the tragedy in Virginia last weekend,” police said in a release. “The Police Department has a responsibility to uphold everyone’s Constitutional right to free speech, and we want you to know that we are working with both Google and with the event planners to ensure the protest is a peaceful one.”



Elsewhere, the counterprotestors chose Mountain View’s Civic Center Plaza for the 1 p.m. event because it’s far enough away from the “March on Google” to prevent overlapping events and reduce the chance of confrontations, said organizer Lenny Siegel, the city’s vice-mayor, adding that this counterprotest is not an official city event.

Visualizing The Diversity Of The Tech Industry

With the recent leak of the “Google Manifesto” and the maelstrom of media backlash that followed, Visual Capitalist"s Jeff Desjardins notes that it seems that concerns around diversity in the technology industry have finally reached a boiling point.


Today’s infographic from Information is Beautiful breaks down the demographics of 23 major tech companies, based on statistics from 2016. It also provides comparisons to the composition of the U.S. population in general, the top 50 U.S. companies, Congress, and Fortune 500 CEOs.





WHICH COMPANIES EMPLOY THE MOST WOMEN?


With just a focus on the major companies on this list, here is a breakdown that shows which companies employ the most women:



The above list already illustrates why diversity is such a concern for many observers of the industry: even the companies with the most women on their rosters have proportions lower than U.S. population average of 50%.


In contrast, here are the companies on the list that employ the fewest women, as a proportion of their workforce:



Google, which is at the center of debate right now, did not make the list of the companies with the fewest women – but it’s not far off with a workforce comprised of 31% women.


WHAT’S CHANGED IN THE LAST 12 MONTHS?


According to Information is Beautiful, here is what has changed in the last 12 months as of their last update (April 2017):


  • Facebook, Apple, eBay, and Microsoft all had their ratio of women increase by 1%.

  • LinkedIn had their ratio of women increase by 3%.

  • Google’s gender ratio stayed the same.

  • Microsoft increased the ratio of non-white employees by 3%, and Facebook by 2%.

  • Google, Apple, and eBay increased ratio of non-white employees by 1%.

  • LinkedIn lost 3% of its non-white employees.

  • Asian staff accounted for the majority of increases in ethnic diversity, while the ratio of Hispanic employees remained static.

To get an even better sense of the data, we recommend visiting the interactive version of Information is Beautiful’s graphic, which shows numbers for 2014 and 2015 as well.

Sunday, August 13, 2017

Error 404: Visualizing The Internet's Digital Decay

In 2005, one of the most intriguing advertising stunts of the internet age was hatched.


As Visual Capitalist"s Nick Routley explains, Alex Tew launched the The Million Dollar Homepage, where anyone could “own a piece of internet history” by purchasing pixels-plots (minimum of 10×10) on a massive digital canvas. At the price of just one dollar per pixel, everyone from individual internet users to well-known companies like Yahoo! raced to claim a space on the giant digital canvas.



Today, The Million Dollar Homepage lives on as a perfect record of that wacky time in internet history – or so it seems. However, the reality is that many of the hyperlinks on the canvas are now redirects that send incoming users to other sites, while over 20% of them are simply dead.


Here are the links that still work on the Million Dollar Homepage today:



The revealing graphic above, via John Bowers, raises the question – how do hyperlinks disappear, and what implications does this “digital decay” have?


DIGITAL DECAY


The internet is stitched together by an incalculable number of hyperlinks, but much like cells in an organism, the sources and destinations have a finite lifespan. Essentially, links can and do die.



Most “link rot” is the result of website restructuring, or entities going out of business and pulling their website offline.


A high-impact example of this is when Yahoo! pulled the plug on GeoCities, one of the first popular web hosting services. In one fell swoop, roughly 7 million websites (containing a plethora of animated gifs, auto-playing midi files, and traffic counters) went dark forever.


Links can also die because of more deliberate reasons, as well. In 2015, the editor-in-chief of Buzzfeed, Ben Smith, came under fire for deleting thousands of posts from the site (including content that was critical of Buzzfeed advertisers). Journalism has traditionally acted as a public record, so this type of “decay” has serious implications on the credibility of media brands.


WHO CARES?


This idea of a public record is at the heart of why digital decay is an issue worth addressing. Once millions of links simply burn out, what will people in the future know about society in the early-ish days of the internet? What record will remain of people’s thoughts and feelings in that era?





I worry that the twenty-first century will become an informational black hole.


– Vint Cerf, Internet pioneer



Perhaps more urgent are public records that live in the digital realm. Supreme Court decisions and academia lean heavily on citations to build their arguments. What happens when those citations simply vanish? A Harvard study found that 49% of the hyperlinks in Supreme Court decisions are now broken.


Even that ubiquitous resource, Wikipedia, has serious issues caused by digital decay. Over 130,000 entries link to dead pages – a troubling development, as linked citations are what lend entries their credibility.


BACKING UP THE INTERNET


A handful of people are taking steps to archive the internet.


The most well-known solution is Internet Archive’s Wayback Machine, which has archived hundreds of billions webpages over the past 20 years. Even the The Library of Congress – which is well known for archiving digital information such as tweets – contracts Internet Archive to do its web crawling.


The academia-focused Perma is another example of a company looking to create permanent records of the web sources (particularly citations).


Many of the weird and wonderful forums and hand-coded homepages of early internet lore may be gone, but we’re finally taking steps to combat digital decay. As awareness grows, avoiding an “informational black hole” may be possible.

Saturday, August 12, 2017

James Damore: "This Is Why I Was Fired By Google"

Fired Google engineer Jame Damore has penned an op-ed for The Wall Street Journal explaining how his good-faith effort to discuss differences between men and women in tech couldn’t be tolerated in the company’s "ideological echo chamber," adding that self-segregation with similar-minded people has grown in recent decades as we spend more time in digital worlds "personalized to fit our views."




I was fired by Google this past Monday for a document that I wrote and circulated internally raising questions about cultural taboos and how they cloud our thinking about gender diversity at the company and in the wider tech sector. I suggested that at least some of the male-female disparity in tech could be attributed to biological differences (and, yes, I said that bias against women was a factor too). Google Chief Executive Sundar Pichai declared that portions of my statement violated the company’s code of conduct and “cross the line by advancing harmful gender stereotypes in our workplace.”



My 10-page document set out what I considered a reasoned, well-researched, good-faith argument, but as I wrote, the viewpoint I was putting forward is generally suppressed at Google because of the company’s “ideological echo chamber.” My firing neatly confirms that point.



How did Google, the company that hires the smartest people in the world, become so ideologically driven and intolerant of scientific debate and reasoned argument?



We all have moral preferences and beliefs about how the world is and should be. Having these views challenged can be painful, so we tend to avoid people with differing values and to associate with those who share our values. This self-segregation has become much more potent in recent decades. We are more mobile and can sort ourselves into different communities; we wait longer to find and choose just the right mate; and we spend much of our time in a digital world personalized to fit our views.



Google is a particularly intense echo chamber because it is in the middle of Silicon Valley and is so life-encompassing as a place to work. With free food, internal meme boards and weekly companywide meetings, Google becomes a huge part of its employees’ lives. Some even live on campus. For many, including myself, working at Google is a major part of their identity, almost like a cult with its own leaders and saints, all believed to righteously uphold the sacred motto of “Don’t be evil.”



Echo chambers maintain themselves by creating a shared spirit and keeping discussion confined within certain limits. As Noam Chomsky once observed, “The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion, but allow very lively debate within that spectrum.”



But echo chambers also have to guard against dissent and opposition. Whether it’s in our homes, online or in our workplaces, a consensus is maintained by shaming people into conformity or excommunicating them if they persist in violating taboos. Public shaming serves not only to display the virtue of those doing the shaming but also warns others that the same punishment awaits them if they don’t conform.



In my document, I committed heresy against the Google creed by stating that not all disparities between men and women that we see in the world are the result of discriminatory treatment.



When I first circulated the document about a month ago to our diversity groups and individuals at Google, there was no outcry or charge of misogyny. I engaged in reasoned discussion with some of my peers on these issues, but mostly I was ignored.



Everything changed when the document went viral within the company and the wider tech world. Those most zealously committed to the diversity creed—that all differences in outcome are due to differential treatment and all people are inherently the same—could not let this public offense go unpunished. They sent angry emails to Google’s human-resources department and everyone up my management chain, demanding censorship, retaliation and atonement.



Upper management tried to placate this surge of outrage by shaming me and misrepresenting my document, but they couldn’t really do otherwise: The mob would have set upon anyone who openly agreed with me or even tolerated my views. When the whole episode finally became a giant media controversy, thanks to external leaks, Google had to solve the problem caused by my supposedly sexist, anti-diversity manifesto, and the whole company came under heated and sometimes threatening scrutiny.



It saddens me to leave Google and to see the company silence open and honest discussion. If Google continues to ignore the very real issues raised by its diversity policies and corporate culture, it will be walking blind into the future—unable to meet the needs of its remarkable employees and sure to disappoint its billions of users.


Friday, August 11, 2017

Google Cancels "Diversity Meeting" After Employee Leaks To "Right-Wing" Websites

Following the debacle of James Damore"s "Diversity" memo and subsequent firing, Google decided a companywide townhall meeting was necessary to address staff concerns with executives planning to field employees’ questions voted on by their peers. The questions with the most votes would get asked.


A sampling of some of the most popular questions as of Tuesday, according to employees, reflects the spectrum of views on the memo and its fallout.


One question asks how Google will protect female employees who have been harassed online for criticizing the memo.


 


Another asks whether Google lowers the bar for diversity candidates.


 


Some questions complain about how conservatives aren’t welcome at Google.


 


And one asks how Google plans to stop leaks to the press.


 


A person familiar added that an additional top question was: “What can we do to clarify for the entire company that there is one hiring bar,” regardless of race or gender?



However, as The Wall Street Journal reports, the meeting has been cancelled because right-wing websites published the names of employees who had proposed questions, raising security concerns.


Google Chief Executive Sundar Pichai said in an email to employees that the company decided to cancel the highly anticipated meeting after employees expressed concerns “about their safety and worried they may be ‘outed’ publicly for asking a question in the Town Hall.”



The implications of this are clear - there"s a leaker at Google.


Ironically, while the national liberal media speaks with one voice against Damore"s temerity to unleash some free speech bombs, and tech CEOs lined up arm in arm to support Pichai in his firing of Damore, Google employees are split over management’s dismissal of Mr. Damore, according to interviews and informal polls of employees. The Journal notes that some employees say Google executives didn’t go far enough to denounce Mr. Damore’s stance. Others say it is difficult to openly discuss diversity issues at the company because of a liberal bias among managers and colleagues at Google, a unit of Alphabet Inc.


And one employee said his managers’ reaction to Mr. Damore’s firing “has made it explicitly clear that any view not left (of) center is not welcome.”



There are “definite mixed feelings” inside the company, one employee said.


“There are people of all political stripes, and there’s outrage at the extreme of both ends of the spectrum and more sanity in the middle.”


 


Moderate liberals at the company don’t believe the memo threatens the rights of women at the company, while moderate conservatives don’t think his firing means they can’t express themselves, this employee said.


 


“But ultimately the loudest voices on the fringes drive the perception and reaction.”



As The Wall Street Journal concludes, however, Google’s liberalism was clear at an internal town-hall meeting after the presidential election, where top executives commiserated with employees over Donald Trump’s victory, according to a recording of the meeting viewed by the Journal.


Alphabet Chief Financial Officer Ruth Porat, who publicly supported Hillary Clinton, called the election results “a kick in the gut.” Executives fielded a variety of questions over the hourlong meeting but none of the questions were in support of Mr. Trump’s victory.


Which makes the following even more troubling for giant tech firm, in the mobile app Blind, where users must use their work email addresses to verify they are employees at a given company, a survey of Google employees reflected the divisions.


Of 440 Google employees who responded to a Blind survey on Tuesday and Wednesday, 56% said they disagreed with Google’s decision to fire Mr. Damore.










Wednesday, August 9, 2017

Leaked Internal Messages Reveal Co-Worker Support For Fired Google Engineer's Controversial Memo

James Damore, now a former Google employee, caused outrage when he circulated a manifesto on Friday, complaining about Google’s “ideological echo chamber” alleging women have lower tolerance for stress and that conservatives are more conscientious. The chess master, who studied at Harvard, Princeton and MIT and worked at Google"s Mountain View HQ, was fired on Monday after the search giant’s chief executive, Sundar Pichai, said portions of Damore’s 10-page memo “violate our code of conduct and cross the line by advancing harmful gender stereotypes” despite saying in the same memo that Google employees shouldn"t be afraid of speaking their minds.


But, according to screenshots obtained by Wired, internal discussions that followed Damore"s memo and its fallout show Google employees both embracing and advancing its views. Damore himself indicated in the following message that his former coworkers had reached out privately to express "their gratitude for bringing up these very important issues." Others chimed in publicly as well.




As an example, the following Google employee blasted the inability of some people to understand and/or acknowlege "how distribution differences aren’t stereotypes and can’t be applied to individuals...it’s basic statistical logic." 





I put almost agree on go/pc-considered-harmful-poll. I thought it needed way more citations. Also, I would have left off anything about “marxism”. You could have made the same points about diversity/psychological safety without them. Adding them in just made the doc seem political. Although, I don’t think either would have changed the reaction.



My biggest concern is the number of people who don’t understand how distribution differences aren’t stereotypes and can’t be applied to individuals. It’s basic statistical logic. Regardless of wether [sic] or not there are differences and if they are biological or cultural, this is just a blatant logical fallacy.



For example, men’s average height is higher than women’s average height. You would never just assume a woman can’t be taller than 5’9”, but you would expect more men to be above 5’9”.



Of course, intellectual honesty isn"t the point of the "progressive" movement, is it?  The talking heads of the Left are all too eager to put on their science hats when discussing climate change but are less eager to entertain scientific facts when they"re deemed "inconvenient."




Meanwhile, the following Googler tied the whole Damore controversy back to the 2016 Presidential election.





For example, there is broad consensus in all American companies that everyone should be treated the same regardless of race and gender and that sexual harassment or other mistreatment of employees should not be tolerated. But I do not think there is consensus on the following things, which are treated as obvious and noncontroversial at Google.



  1. Different recruitment/hiring process for employees on color of their skin

  2. Open stereotyping of employees by race and gender on internal sites without public outcry that makes such instances rare over time

  3. Weekly public (though thankfully anonymous) shaming of employees for misdeeds as slight as anachronistic use of “guys” for a mixed gender group

  4. Frequent references to documents that stigmatize open disagreement with a a rage [sic] of positions

  5. Call for employees to give each other hugs at an all hands meeting because the wrong candidate won a presidential election in the country, following by a mass mailing on how to help your kids deal with grief due to the same occurrence

We could go on, or start a centithread on any of these subjects. I understand that these things feel normal and necessary to many holding strong progressive values, especially coming from colleges which are largely run along these norms today. Many feel that the country suffered a huge setback in 2016 and sick to use [sic] other venues, including workspaces with largely sympathetic employee base, to advance their values forward. Google as shining light in the sea of darkness right?



But then, what do you propose to do about Googlers who are well within general norms of the country, and many other businesses like IBM, Oracle or whatever - but who do not agree with progressive consensus which is currently in effect in our internal discourse? This consensus, while pretty strong, is also often overstated. During the election season, progressives have been very active at Google, including (sadly I think) draconian responses to anyone who disagreed with their core ideas. Now that passions are subsiding, we can see from polls like the recent one that Googlers have widely varying opinions on go/pc-considered-harmful.





Of course, we can only assume these supportive Googlers will soon find themselves unemployed.