I really appreciate the venture capitalists (VCs) in Silicon Valley subsidizing my soapbox at Twitter. Seriously, it is an absolutely awesome platform for getting a message out to the masses. But at some point I worry that the gravy train will come to an end and that users will have to start picking up part of the tab. After all, will those VCs continue to subsidize Twitter if it never turns a profit? According to the Wikipedia entry about Twitter:
In total, Twitter has raised over US$57 million from venture capitalists. The exact amounts of funding have not been publicly released. Twitter’s first round of funding was for an undisclosed amount that is rumored to have been between $1 million and $5 million. Its B round of funding in 2008 was for $22 million and its C round of funding in 2009 was for $35 million from Institutional Venture Partners and Benchmark Capital along with an undisclosed amount from other investors including Union Square Ventures and Spark Capital. Twitter is backed by Union Square Ventures, Digital Garage, Spark Capital, and Bezos Expeditions.
Again, thank you VCs! But, like them, I do wonder when and how Twitter will bring in some cash. Is there a “freemium” model that could work? Perhaps. “Pro” or corporate accounts have been rumored to be in the works. Getting someone else to pick up the tab that way might bring in enough cash for Twitter to allow the free ride to continue for the rest of us. But what about advertising? It’s been the “mother’s milk” of most online media and platforms for some time now, and Twitter seems perfectly suited to insert a few banner ads or contextual ads here and there. It could be happening sooner than you think. Austin Modine of The Register notes in a new piece, “Twitter ‘Leaves Door Open’ for Targeted Ads,” that: Continue reading →
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!
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With the publication of Understanding Privacy (Harvard University Press 2008), George Washington University Law School professor Daniel J. Solove has firmly established himself as one of America’s leading intellectuals in the field of information policy and cyberlaw. Solove had already made himself a force to be reckoned with in this field with the publication of important books like The Future of Reputation: Gossip, Rumor, and Privacy on the Internet (Yale University Press 2007), The Digital Person: Technology and Privacy in the Information Age (NYU Press 2004) and his treatise on Information Privacy Law with Paul M. Schwartz of the Berkeley School of Law (Aspen Publishing, 2d ed. 2006). But with Understanding Privacy, Solove has now elevated himself to that rarefied air of “people worth watching” in the cyberlaw field; an intellectual — like Lawrence Lessig or Jonathan Zittrain — whose every publication becomes something of an event in the field to which all eyes turn upon release.
Like those other intellectuals, however, my respect for their stature should not be confused with agreement with their positions. In fact, my disagreements with Lessig and Zittrain are frequently on display here and, we have been critical of Solove here in the past as well. [Here’s Jim Harper’s review of Solove’s last book, with which I am in wholehearted agreement.] In a similar vein, although I greatly appreciate what Prof. Solove attempts to accomplish in Understanding Privacy — and I am sure it will change the way we conceptualize and debate privacy policy in the future — I found his approach and conclusions highly problematic.
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The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.