Are You An Internet Optimist or Pessimist? The Great Debate over Technology’s Impact on Society

by Adam Thierer on January 31, 2010 · Comments

[I’ve been working on an outline for a book I hope to write surveying technological skepticism throughout history. I first started thinking about this topic two years when I noticed that a great number of recent books about Internet policy could generally be grouped into one of two camps: Internet optimists vs. Internet pessimists. I subsequently penned an essay on the subject that generated a fair bit of attention. So, I figured I must be on to something, and the more Net policy books I read, the more I realized that the divisions between these two camps were growing wider and increasingly heated. Thus, I thought I would share this very rough draft (much of it still in outline form) of the opening chapter of that book I want to write about this great intellectual war over the impact of technology on society. I invite reader input.]

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The impact of technological change on culture, learning, and morality has long been the subject of intense debate, and every technological revolution brings out a fresh crop of both pessimists and pollyannas. Indeed, a familiar cycle has repeat itself throughout history whenever new modes of production (from mechanized agriculture to assembly-line production), means of transportation (water, rail, road, or air), energy production processes (steam, electric, nuclear), medical breakthroughs (vaccination, surgery, cloning), or communications techniques (telegraph, telephone, radio, television) have appeared on the scene.

The cycle goes something like this. A new technology appears. Those who fear the sweeping changes brought about by this technology see a sky that is about to fall. These “techno-pessimists” predict the death of the old order (which, ironically, is often a previous generation’s hotly-debated technology that others wanted slowed or stopped).  Embracing this new technology, they fear, will result in the overthrow of traditions, beliefs, values, institutions, business models, and much else they hold sacred.

The pollyannas, by contrast, look out at the unfolding landscape and see mostly rainbows in the air. Theirs is a rose-colored world in which the technological revolution du jour is seen as improving the general lot of mankind and bringing about a better order.  If something has to give, then the old ways be damned! For such “techno-optimists,” progress means some norms and institutions must adapt—perhaps even disappear—for society to continue its march forward.

Our current Information Revolution is no different. It too has its share of techno-pessimists and techno-optimists. Indeed, before most of us had even heard of the Internet, people were already fighting about it—or at least debating what the rise of the Information Age meant for our culture, society, and economy. Continue reading →

Comments Posted in: Digital Policy Reading List, Philosophy & Cyber-Libertarianism

Behavioral Advertising Industry Practices Hearing: Some Issues that Need to be Discussed

by Berin Szoka on June 17, 2009 · Comments

by Berin Szoka & Adam Thierer

This morning, the House Energy & Commerce Committee will hold a hearing on “Behavioral Advertising: Industry Practices And Consumers’ Expectations.” If nothing else, it promises to be quite entertaining:  With full-time Google bashers Jeff Chester and Scott Cleland on the agenda, the likelihood that top Google officials will be burned in effigy appears high!

Chester, self-appointed spokesman for what one might call the People for the Ethical Treatment of Data (PETD) movement, is sure to rant and rave about the impending techno-apocalypse that will, like all his other Chicken-Little scenarios, befall us all if online advertisers were permitted to better tailor ads to consumers’ liking. After all, can you imagine the nightmare of less annoying ads that might actually convey more useful information to consumers? Isn’t serving up “untargeted” dumb banner ads for Viagra to young women and Victoria’s Secret ads to Catholic school kids the pinnacle of modern online advertising?  Gods forbid we actually make advertising more relevant and interest-based!  (Those Catholic school boys may appreciate the lingerie ads, but few will likely buy bras.)

Anyway, according to National Journal’s Tech Daily Dose, the hearing lineup also includes:

  • Charles Curran, Executive Director, Network Advertising Initiative
  • Christopher Kelly, Chief Privacy Officer, Facebook
  • Edward Felten, Director, Center for IT Policy, Princeton University
  • Anne Toth, Chief Privacy Officer & Vice President, Policy, Yahoo!
  • Nicole Wong, Deputy General Counsel, Google

That’s an interesting group and we’re sure that they will say interesting things about the issue. Nonetheless, because four of them have a corporate affiliation that fact will inevitably be used by some critics to dismiss what they have to say about the sensibility of more targeted or interest-based forms of online advertising. So, we’d like to offer a few thoughts and pose a few questions to make sure that Committee members understand why, regardless of what it means for any particular online operator, targeting online advertising is very pro-consumer and essential to the future of online content, culture, and competition.  As Wall Street Journal technology columnist Walt Mossberg has noted, “Advertising is the mother’s milk of all the mass media.”  Much of the “free speech” we all cherish isn’t really free, but ad-supported!

Continue reading →

Comments Posted in: Advertising & Marketing, E-Commerce Taxation & Regulation, First Amendment, Free Speech & Online Child Safety, Media Regulation

The Lord’s Prayer of Internet Pessimist Orthodoxy

by Berin Szoka on May 11, 2009 · Comments

A few months ago, Adam Thierer penned The Pragmatic (Internet) Optimist’s Creed in response to calls from “Internet pessimists” for increased regulation of the Internet on many fronts. Adam’s recent 4-way debate with pessimists Larry Lessig and Jonathan Zittrain (as well as optimist Declan McCullagh) inspired me to pen the following cheeky homage to Lessig, the Father of Internet Pessimism, whose work has launched a thousand efforts to increase government control of the Internet in the name, ironically, of “freedom:”

Our Lessig, who art in Harvard,
Hallowed be thy blog.
Thy Free Culture come.
Thy Code be done,
In Washington as it is in thy Ivory Tower.

Give us this day our Net Neutrality.
And forgive us our trespasses against Internet Openness,
As we forgive those who question thy genius,
And lead us not into trusted systems of perfect control,
But deliver us from digital rights management and architectures of identity.

For thine is the wisdom,
and the clairvoyance, and the coolness,
for ever and ever.
Amen.

Lest I become the Salman Rushdie of pragmatic Internet optimists/regulatory-skeptics, let me emphasize that my techno-blasphemy is meant in good humor.  But then, that’s probably what poor Rushdie said…

Comments Posted in: Copyright, Internet Governance & ICANN, Media Regulation, Philosophy & Cyber-Libertarianism

Search Advertising Dropped 8% in 2008: Why Users Should Care

by Berin Szoka on January 19, 2009 · Comments

The WSJ reports that a study will be released tomorrow noting an 8% drop in total “paid search” revenues in 2008.  Google’s Fourth Quarter results will be released Thursday.  While this is clearly bad news for Google, Yahoo!, Microsoft and other companies that sell ads next to the results of their search engines, it’s also terrible news for the Internet users who have come to take for granted not just these free search engines, but the other free services and content cross-subsidized by search ad revenue.  A quick look at the offerings pages of Google,  Yahoo! and Microsoft (downloads and some services) should remind you of a few of these ad-supported offerings.

What’s even worse for users is that search ad spending may be the “canary in the coalmine” for online advertising overall:  A drop in search ad spending may suggest that display ad revenue for 2008 may have fared even worse.  While search ad revenue funds offerings from search engine providers, display ad revenue is the bread & butter of millions of websites, from the “short head” (big websites like ESPN.com) to through the “long tail” (small websites).   As advertisers cut back on buying web ads, there will be less funding available for “Free!” culture—and we’ll all suffer from the resulting decline in creativity and innovation.  

Let’s hope 2009 is a better year for advertising—both search and display—than 2008.

Comments Posted in: Advertising & Marketing

PFF Launches Center for Internet Freedom

by Berin Szoka on October 24, 2008 · Comments

The Progress & Freedom Foundation has just launched the new Center for Internet Freedom.  CIF offers an alternative to the proliferation of advocacy groups calling for government intervention online by offering timely analyses and critiques of proposals that diminish the vital role of free markets, free speech and property rights.  We aim to drive the Internet policy debate in new directions by emphasizing a layered approach of technological innovation, user education, user self-help, industry self-regulation, and the enforcement of existing laws consistent with the First Amendment.  Such an approach is a less restrictive—and generally more effective—alternative to increased regulation.  

Here are some of the issues I’ll be working on as CIF’s Director in conjunction with my esteemed colleagues Adam Thierer, Adam Marcus, and adjunct fellows: 

  • Defending online advertising as the lifeblood of online content & services, especially in the “Long Tail”;
  • Emphasizing market solutions to problems of privacy protection, especially regarding the use of cookies and packet inspection data;
  • Protecting online speech and expression both in the U.S. and abroad;
  • Defending Section 230 immunity for Internet intermediaries;
  • Opposing online taxation and legal barriers to e-commerce and digital payments, especially at the state and local levels; and
  • Ensuring that Internet governance remains transparent and accountable without hampering the evolution of the Internet.

Comments Posted in: Advertising & Marketing, Broadband & Neutrality Regulation, E-Commerce Taxation & Regulation, First Amendment, Free Speech & Online Child Safety, Inside the Beltway (Politics), Intermediary Deputization & Section 230, Internet Governance & ICANN

Online Advertising & User Privacy: Principles to Guide the Debate

by Berin Szoka on September 24, 2008 · Comments

By Berin Szoka & Adam Thierer
Progress Snapshot 4.19 (PDF)

Since the fall of 2008, a debate has raged in Washington over “targeted online advertising,” an ominous-sounding shorthand for the customization of Internet ads to match the interests of users.  Not only are these ads more relevant and therefore less annoying to Internet users than untargeted ads, they are more cost-effective to advertisers and more profitable to websites that sell ad space.  While such “smarter” online advertising scares some—prompting comparisons to a corporate “Big Brother” spying on Internet users—it is also expected to fuel the rapid growth of Internet advertising revenues from $21.7 billion in 2007 to $50.3 billion in 2011-an annual growth rate of more than 24%. Since this growing revenue stream ultimately funds the free content and services that Internet users increasingly take for granted, policymakers should think very carefully about what’s really best for consumers before rushing to regulate an industry that has thrived for over a decade under a layered approach that combines technological “self-help” by privacy-wary consumers, consumer education, industry self-regulation, existing state privacy tort laws, and Federal Trade Commission (FTC) enforcement of corporate privacy policies.

In an upcoming PFF Special Report, we will address the many technical, economic, and legal aspects of this complicated policy issue-especially the possibility that regulation may unintentionally thwart market responses to the growing phenomenon of users blocking online ads. 

We will also issue a three-part challenge to those who call for regulation of online advertising practices:

  1. Identify the harm or market failure that requires government intervention.
  2. Prove that there is no less restrictive alternative to regulation.
  3. Explain how the benefits of regulation outweigh its costs. 

Continue reading →

Comments Posted in: Advertising & Marketing, E-Commerce Taxation & Regulation, First Amendment, Free Speech & Online Child Safety, Inside the Beltway (Politics), Open Source, Open Standards & Peer Production, Technology, Business & Cool Toys

Grouping Recent Net Books: Internet Optimists vs. Pessimists

by Adam Thierer on September 6, 2008 · Comments

A number of very interesting books have been released over the past year or two which debate how the Internet is reshaping our culture and the economy. I’ve reviewed a couple of them here but I have been waiting to compile a sort of mega-book review once I found a sensible way to conceptually group them together. I’m not going to have time to cover each of them here in the detail they deserve, but I think I have at least found a sensible way to categorize them. For lack of better descriptors, I’ve divided these books and thinkers into two camps: “Internet optimists” versus “Internet Pessimists.” Here’s a list of some of the individuals and books (or other articles and blogs) that I believe epitomize these two camps of thinking:

Adherents & Their Books / Writings

Internet Optimists

Internet Pessimists

Yochai Benkler, The Wealth of Networks

Andrew Keen, The Cult of the Amateur

Chris Anderson, The Long Tail and “Free!”

Lee Siegel, Against the Machine

Clay Shirky, Here Comes Everybody

Nick Carr, The Big Switch

Cass Sunstein, Infotopia

Cass Sunstein, Republic.com

Don Tapscott, Wikinomics

Todd Gitlin, Media Unlimited

Kevin Kelly & Wired mag in general

Alex Iskold, “The Danger of Free

Mike Masnick & TechDirt blog

Mark Cuban

And here’s a rough sketch of the major beliefs or key themes that separate these two schools of thinking about the impact of the Internet on our culture and economy:

Beliefs / Themes

Internet Optimists

Internet Pessimists

Culture / Social

Net is Participatory

Net is Polarizing

Net yields Personalization

Net yields Fragmentation

a “Global village

Balkanization

Heterogeneity / Diversity of Thought

Homogeneity / Close-mindedness

Net breeds pro-democratic tendencies

Net breeds anti-democratic tendencies

Tool of liberation & empowerment

Tool of frequent misuse & abuse

Economics / Business

Benefits of “free” (“Free” = future of media / business)

Costs of “free” (“Free” = end of media / business)

Increasing importance of “Gift economy

Continuing importance of property rights, profits, firms

“Wiki” model = wisdom of crowds; power of collective intelligence

“Wiki” model = stupidity of crowds; errors of collective intelligence

Mass collaboration

Individual effort

So, what to make of this intellectual war? Who’s got the story right?

Continue reading →

Comments Posted in: Philosophy & Cyber-Libertarianism, What We're Reading