Sep 142014

“I was a closet tech guy until the 2000s,” says Vintank’s founder Paul Mabray in describing how digital technologies are changing the wine industry to the Decoding The New Economy YouTube channel.

We’d spoken to Paul before about the forces changing the wine industry and visiting him in the Napa Valley gives some perspective on the opportunity the sector has in capturing the enthusiastic US wine market.

Paul’s first venture into wine technology was with Inertia Beverage Group in 2002, “when I started Inertia I said ‘hey, there’s this thing called the internet'”, Mabray recalls. “They said ‘hey Paul you’re so cute, the internet won’t be around in a couple of years.'”

The internet being a fad turned out not to be the case and Vintank evolved out of the rising importance of social media to industries like wineries.

“Vintank is the mission control of social media, the one stop engagement platform for the wine industry,” says Paul of his social media listening service which he and co-founder James Jory established in 2009.

Wine is lagging other industries in adopting social media and other digital technologies because it’s avoided many of the disruptions other sectors have had to deal with.

“The wine industry is the last industry that hasn’t been changed by the internet,” Mabray says. “If you look at hotels with or restaurants with Yelp or Open Table, that hasn’t happened yet.”

A key facet of Vintank is its use of the freemium business model in offering a basic service for free; a common practice in the consumer (B2C) market but fairly rare in business (B2C) software services.

“It’s a very different way to do freemium in B2B. Freemium in B2C you do mass adoption — that tiny fraction that pay makes it profitable because so many people have it.”

“In the B2B freemium model what you have to do is distribute it for free and then you measure the usage; who is using it the most is where you send the sales team in.”

For Mabray, we’re in early days of using digital media and the wine industry is one of the sectors that needs to adopt the technologies quickly: “The driver for me is this horribly complex problem that needs to be solved — the wine industry needs digital to survive.”

Sep 112014
what do we share on social media sites

“LinkedIn is the world’s biggest publishing platform,” states Olivier Legrand.

Legrand, LinkedIn’s Head of Marketing Solutions for Asia Pacific & Japan, was speaking at the company’s Connectin Sydney conference where the service was demonstrating its credentials as a marketing and advertising service to Australia’s largest corporations.

The view that LinkedIn is a publishing platform is problematic for content creators — it creates a conflict for those using the service to distribute or publicise their work and again it shows social media services are not your friends.

It’s understandable LinkedIn wants to get corporate advertisers on board seeing the business’ stock currently trades at eighty-four times revenue, however a focus on becoming an advertising driven media company at a time when advertising driven media companies are heading the way of the wooly mammoth seems to be a risky strategy.

Another risk for LinkedIn as a publishing platform is that user generated services can, and will be, gamed resulting in a dramatic decline in quality and value in the site.

Every social media service now sees itself as a media company and it may turn out they are correct, however that future of publishing will be very different from last century’s newspaper and broadcast models they are trying to emulate.

Even if the dreams of social media services do come true, the advertising driven media industry, an the publishing world, will be very different to the world they hope to be part of.

Aug 302014

Yesterday the Search Engine Land website broke the news that Google Authorship is dead.

The quiet abandonment of Google Authorship once again shows why businesses and creative workers shouldn’t trust online services to reward their work.

Google Authorship was a subset of the company’s Google Plus service that let writers and journalist claim their work.

For authors Google Authorship was a useful tool in the battle against the verminous ‘content scrapers’ whose business lies in stealing other peoples’work. It was also a good way of building an online portfolio.

Google benefited from a huge improvement in the quality of its data as its algorithms authorship made it easier for the algorithm to identify original sources.

Using Google’s Authorship tool wasn’t easy, like many of the company’s services it was cumbersome to setup, opaque and subject to arbitrary rules.

Many journalists, bloggers and writers went through the process however as they saw the benefits and trusted Google to maintain the service.

Trusting Google to maintain any service is risky with the company’s well deserved reputation of axing services the moment management’s attention turns to the next shiny thing.

Which is exactly what’s happened to those who’ve invested their time in Google Authorship and they join the disillusioned masses who’ve been burned by the company previously with services like Google Wave.

The lessons from Google’s dropping of Authorship shouldn’t be lost on those working hard to build Google Plus profiles.

Right now, despite the propaganda for those with a lot invested in the service, Google Plus is not travelling well and it’s in a dangerous zone within the company with the departure of its internal management champion Vic Gundotra earlier this year.

The risk of investing too much time on Google Plus is clear, however it would be unfair to single Google out as being alone in presenting this risk.

Every social media service and publishing platform carries the same risk.

Those spending hours creating Facebook communities or carefully crafting LinkedIn or Medium posts need to remember they are only their by the grace and favor of the service.

Nothing replaces your own website as an online property. Your mission is to drive as much traffic to it as possible. Social media platforms can help you do this, but they are not your friends or business partners.

Don’t forget this.

Aug 102014

On the web, no-one likes being forced into downloading a new app. That could be the main lesson from Facebook’s splitting messenger into a new app.

Users aren’t happy and it shows in the product reviews as Mashable reports. Across the world the new Facebook Messenger app is getting the thumbs down in App Store reviews.

Which goes to show how the public now have the power to strike back when they believe a corporation isn’t behaving fairly.

The ball’s now in Facebook’s court to win back trust with an app that delights users. If they don’t, there’s always another disrupter on the horizon.

Aug 072014

“Everyone’s a critic” is the old saying. Today this is truer than ever as anyone can post a review online.

One of the notable things about business in the internet age is how sensitive people are to criticism.

A good example of this is a story going around the web this week of a Dallas chef, John Tesar, who had a magnificent breakdown over a review of his restaurant in the local newspaper.

This set off a chain of claims and counterclaims including some truly bizarre pieces on various blogs about ‘chefs winning the war against critics.’

Probably the strangest thing with this whole debacle is the review by Leslie Brenner in the Dallas Morning News is actually quite constructive and certainly no AA Gill style demolition of the establishment.

This silly little spat illustrates how business people, not just temperamental chefs, have glass jaws. Another story going around the web this week is of Union Street Guest House in Hudson, New York, that fines guests for bad reviews

Tesar’s response is pretty typical of many business owners – attack the critic instead of addressing the problems. Given Tesar threw the Twenty Rules of Social Media – which apply to businesses as much as social media – out the window, he was lucky not to find his reaction backfiring horribly on him.

What business owners have to understand is that you will get criticism, unfortunately most of it you will never know about as unhappy customers tell their friends and relatives.

If you get the opportunity to hear that criticism, then you have the opportunity to fix the problem.

This is something business owners need to understand about review sites and social media; it’s an opportunity to get some honest feedback about how things are going.

So start listening to what your customers are saying online and stop being so defensive.

Jun 292014

The revelation that a Facebook research team lead by Alan Kramer experimented with users’ emotional states is a disturbing story on many levels, the immediate consequence is a further erosion in the public trust of social media services.

Facebook, like many social media services, has received a lot of criticism in recent times as the company tries to make enough money to justify its $160 billion valuation.

Most of that criticism has been around the re-arranging of users’ feeds with Facebook’s algorithm deciding what information should be displayed based upon a user’s history with a liberal sprinkling of advertising thrown in.

The Kramer research though takes Facebook’s manipulation of users’ information to another level, along with raising a range of ethical issues.

One of the most concerning issues is the claim that the experiment’s subjects had given informed consent by agreeing to Facebook’s Terms of Service. This is dangerous ground.

The dangerous ground, apart from the gross overreach of customer terms of service this behaviour risks losing the market’s trust; once Facebook or other social media and cloud computing services are viewed as untrustworthy, they are doomed.

For Facebook it might be that the abuse of user trust is the biggest social experiment of all: How far can the company push the public?

We may soon find out.

Jun 102014

Today I spoke about online safety to the Australian Seniors’ Computer Clubs Association about staying safe online.

Hopefully I’ll have a copy of the presentation up tomorrow but what was notable about the morning was the concern among the audience about security and safety of cloud services.

The ASCCA membership are a computer savvy bunch – anyone who disparages older peoples’ technology nous would be quickly put in their place by these folk – but it was notable just how concerned they are about online privacy. They are not happy.

Another troubling aspect were my answers to the questions, invariably I had to fall back on the lines “only do what you’re comfortable with”  and “it all comes down to a question of trust.”

The problem with the latter line is that it’s difficult to trust many online companies, particularly when their business models relies upon trading users’ data.

Resolving this trust issue is going to be difficult and it’s hard to see how some social media platforms and online businesses can survive should users flee or governments enact stringent privacy laws.

It may well be we’re seeing another transition effect happening in the online economy.