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The Next Thing - Issue #161

Hi <<First Name>>,

I did a bit of influencer marketing (aka posting on LinkedIn and Twitter) today, so welcome to all the new subscribers. It’s so nice to have you here.

For the OGs, you’ll notice I’ve dropped all the Metaverse/NFT news under its own heading. These buzzwords are getting a lot of attention right now, so I figured I’ll bundle them up so you can skip over if they’re not your thing.

Onwards…

Passport please?

The Australian government continues to misunderstand the internet. The latest own goal is draft legislation compelling social media companies to hand over the identities of people accused of trolling.

There are so many problems with this. But I couldn't possibly have put it better than Chris Cooper, director of internet advocacy group Reset Australia. So here he is:

“The most pressing problem here is not trolls, it is the disproportionate reach of their content enabled by the algorithms of social media companies that prioritise sensational, outrageous and conspiratorial content – the form which defamatory content usually takes.
Forcing social media companies responsible for coughing up the identity of individuals does not hold the platforms accountable for their profit-making amplification that enables that content to go viral.

Well said Chris! 👏🏻

As with previous government own goals (including encryption backdoors, the news media bargaining code, publisher accountability for Facebook comments, and the GDPR-ish changes to the online privacy bill) it's the right idea executed in completely the wrong way. The consistent theme in all of the above is a complete lack of understanding of how the internet actually works.

One outcome of this war against reality is that Australia will become a digital backwater. Rather than dealing with any legislation, companies will just leave. And when they leave, Australia will not just lose talent, but also the opportunity for new and innovative companies to be built. That's definitely not great.

For publishers, this will be doubly bad. Platforms (all of them, not just Facebook) are essential to the future success of publishing. We are still in the early days of discovering workable revenue models that enable the media to operate sustainably and effectively within the social platforms that thrive on their content. To have all the major platforms disengage from Australia would hurt all media companies. Also not great.

To give some credit to Canberra, the planned inquiry into social media and mental health is a good thing. So they're not complete muppets.

This inquiry is where brands should be paying attention. An increase in public awareness of the damage social platforms are doing could see a big shift in public perception. When Facebook is already the most distrusted brand in the country, brands simply being present on some platforms will create negative connotations for customers.

Jack be gone.

Jack Dorsey has stepped down as CEO of Twitter. Jack reckons Twitter should "stand on its own, free of its founder’s influence or direction". In reality he was pushed out by activist investors who weren’t super keen on a part-time CEO.

So many hot takes on this, but from a media and brand perspective it’s great news. While under his watch (but arguably not his influence) Twitter has recently been shipping new product like never before. Under new leadership (from previous CTO Parag Agrawal) this should likely accelerate.

Despite huge potential, Twitter has always been an also ran for brands. It is the only major social platform that hasn't been able to tap into the DTC media model and the creator economy frenzy. With a fresh CEO who shows up five days a week, there's a good chance that could change.

A bonus interesting (but super long-play) twist? In his final move Dorsey instated Saleforce's Bret Taylor as Chairman. An acquisition by Salesforce and close integration of the two companies would create quite the proposition for many brands. 🤔

Metaverse! NFTs! Future!

  • Even though nobody can quite define it, brands continue to go nuts for the Metaverse. This great summary of recent earnings calls has it all - Roblox says it’s "human co-experience", Warner Music thinks it's already here (and it's called Roblox and Fortnite), Chinese video-sharing giant Bilibili says you're already "a little bit too late", Coinbase thinks it's all about crypto (surprise) while Hasbro says it's all about digital games (surprise). Disney will definitely be using it for "storytelling without boundaries" and (refreshingly) Tencent's president admits "this is actually sort of a very exciting, but a little bit vague concept". Regular readers have probably picked up my vibe - The Metaverse is already here, and it’s whatever you do on the internet. For the young folk that looks like Roblox, for cool kids Discord, and for me it’s writing newsletters.

  • For all of the PR and palaver, the reality is that Roblox (and Fortnite to a degree) are nailing this space with real campaigns and actual outcomes. A recent NASCAR campaign in Roblox had 24 million visitors across 10 days. The most impressive part is that Roblox aren't even driving these campaigns - a whole industry of developers has sprung up to ideate and build them.

  • An Australian wag created a torrent file containing every NFT on the Ethereum and Solana blockchains. Titled "The Billion Dollar Torrent", the description ends with the rather zingy "WTF? We destroyed our planet for THIS?!"

  • Your regular reminder that most NFTs are not what they seem: Miramax launched a lawsuit against Quentin Tarantino after the director offered up a few cut scenes from Pulp Fiction as NFTs. The studio is pretty sure they own the assets (perhaps they are unaware that selling things you don't own as NFTs is par for the course? 🤷🏻‍♂️)

Happenings…

  • More data is surfacing around the impact of Apple's iOS changes on Facebook advertising. The latest from a US political group that saw the percentage of conversion-based ads delivered to iOS devices decline from 64% of their campaign in 2020 to 37% in 2021.

  • OpenAI's GPT-3 is arguably the first truly impressive text-generating AI tech. It can write things that are sometimes quite good! GPT-3 had a long waiting list for developers wanting to try it out, but has now opened up to all and sundry. Expect to see a lot of interesting AI-driven dynamic creative tools for brands spring up in the next 12 months. (also expect misinformation to level up a few notches 🙄)

  • Brands are increasingly asking publishers to put some skin in the game and get paid on performance outcomes - a signal that major brands are really starting to adopt DTC media and marketing tactics.

  • Black Friday / Cyber Monday / Hectic eCommerce festival sales were down a bit this year. Two angles on this - either the whole idea is oversaturated, or Covid meant plenty of shopping was already done come the end of November. My money's on the second.