JayWeintraub.com - Internet Advertising Analysis and Commentary

Political Global Warming: SOPA - The Internet in "Hot Water"

2012-01-19T08:20:42-08:00

Kevin Rose's tweet about SOPA was one of the funniest, "didn't shower today, avoiding all things SOPA sounding." I have to give my chemist mom credit, though, for coming up with the non-obvious, Mexican soup angle. (Tangentially, I'd like to thank every incubator, tech blog, and startup for having me misspell "angle" half the time.)

Until yesterday, I could not adequately describe SOPA or PIPA - this, despite the amazing efforts of the Electronic Frontier Foundation, noted bloggers, and even a few more mainstream publications willing to risk corporate wrath for expressing views against the bills. That is why this post focuses less on a topic about which I am absolutely unqualified to voice a meaningful opinion and more on my thanks for not just the connected universe but some of the largest platforms deciding to get together to help educate and raise awareness en masse (as well a way for me to memorialize said appreciation.)

Yesterday, was eye opening and inspiring. The internet got together to defend itself and to make us aware of what it does for us. It got together to show us how lucky we are, how the internet is the Constitution 2.0, how it is a framework that enables innovation, helps keep us all in check, and despite the glaring power controlled by a few, still promises the American dream of anyone being able to create a better life for themselves and others.

Of the articles I read about SOPA and PIPA, I like the explanation/opinion given by MythBuster's Adam Savage in a December 20, 2011 article in Popular Mechanics, where he says:

Make no mistake: These bills aren't simply unconstitutional, they are anticonstitutional. They would allow for the wholesale elimination of entire websites, domain names, and chunks of the DNS (the underlying structure of the whole Internet), based on nothing more than the "good faith" assertion by a single party that the website is infringing on a copyright of the complainant. The accused doesn't even have to be aware that the complaint has been made.

Wikipedia, on their page explaining the blackout says:

SOPA and PIPA represent two bills in the United States House of Representatives and the United States Senate respectively. SOPA is short for the "Stop Online Piracy Act," and PIPA is an acronym for the "Protect IP Act." ("IP" stands for "intellectual property.") In short, these bills are efforts to stop copyright infringement committed by foreign web sites, but, in our opinion, they do so in a way that actually infringes free expression while harming the Internet.

The Electronic Frontier Foundation adds:

The “vigilante” provision, which would grant broad immunity to all service providers if they overblock innocent users or block sites voluntarily with no judicial oversight at all. Intermediaries only need to act “in good faith” and base their decision “on credible evidence” to receive immunity. The MPAA and RIAA to create literal blacklists of sites they want censored. Intermediaries will find themselves under pressure to act to avoid court orders, creating a vehicle for corporations to censor sites—even those in the U.S.—without any legal oversight.

PIPA and SOPA also still allow copyright holders to get an unopposed court order to cut off foreign websites from payment processors and advertisers. As we have continually highlighted, copyright holders already can remove infringing material from the web under the DMCA notice-and-takedown procedure

PIPA and SOPA would also give the Attorney General new authority to block domain name service. The Attorney General would also be empowered to de-list websites from search engines.

As Reddit co-founder Alexis Ohanian explained, PIPA and SOPA are “the equivalent of being angry and trying to take action against Ford just because a Mustang was used in a bank robbery.” Adding that, "Congress Is Going To Obliterate An Entire Tech Industry."

Reading the descriptions of the bills and opinions of business and tech thought leaders (these stories are a mix of fact and opinion), makes me sad.

I'm said because the fight around SOPA & PIPA further illustrate that while the past two administrations have completely screwed up this country... yet, but were that their job, they are performing admirably. At least I know who to thank in 20 years time, when we are no longer the preeminent country in the world. I will thank them for their political global warming. Well done guys. Well done.

The government’s love of publishing and acronyms and publishing acronyms has a somnorific effect on the nation’s populace, ensuring that we ignore much of what is put out. Nor do we understand what the wordy mix of legalese and erudite phraseology is about, often because of the self-pleasing name it was given. Such is the case with SOPA and PIPA.

More cynically, and perhaps more accurately, these two bills represent specific big businesses, aka old Hollywood, who got clobbered by innovation, trying yet again to compete. Yet again, they are doing so through the continued corruption of our political system. It’s ironic that the framework that has allowed for the country’s success is being attacked when it doesn’t work in the favor of certain businesses. For me, this battle is not just about the internet. It’s a new battle of church and state, not religion and politics but money and politics and the American dream turning into a nightmare.

Is There A Service Where Idea People Meet Executors

2011-12-21T10:08:33-08:00

I went to a meeting with CarrieHammer.com recently, and what I heard from them was not unlike what I have heard before - you are an idea guy. Never is a compliment been such a curse, because having now built a business, I can more properly value ideas versus the execution of the ideas.

Maximizing value for me means growing the business I have, but as an "idea guy," I still have projects that I'd love to see exeucted. Join the club I know. I was thinking though of something like a Prosper for people like me who have an idea, would fund the idea, but want to find the proverbial jokey. Unlike the the tech world, people like me seem to focus on less product / tech, i.e., we don't need a partner. We need the doer. Similarly, there are people with domain expertise who need some direction and financial de-risk in order to try something new.

There are so many marketplaces, even ones for small tasks like Taskrabbit, but is there something that would be Biz Buy Fund as opposed to Biz Buy Sell?

Because We All Love a Good Online Marketing Scam

2011-12-08T12:54:51-08:00

It's examples like this one that, while they make for great stories, they are a blight on the performance marketing space. They are sheer evil genius but also the reason people associate lead gen / affiliate marketing with shady.

The Setup

So, you want to see shady? Here it is. The formula starts with this conundrum - making money online is tough. Making money when taking the media risk is even tougher. It is why many individuals and small companies that rely on arbitrage all too a turn to the dark side. It's much easier to tweaking messaging that building technology. And, messaging is a social phenomenon. Once, one person starts, others feel compelled to follow, especially if that other message appears to convert better. Sooner or later, we hit the bottom, which is what happened in the world of acai flogs. That scam may be almost extinct, but there area always enterprising people to jump in, especially if they can minimize the media risk. That's what is happening here. While it was on paid search briefly, this one runs through spam. Not the compliant commercial messages people call spam but pure spam.

The Scam

The unlucky ones have received a message like this:

---------------------------------------------------------------------------------------------------
Dear applicant

Thank you for submitting your details for available work options.
We look forward to reviewing your application, but can not do so until you complete our
internal application.

The pay range for available options range from $35.77 pr hr to $57.62 pr hr.
Prior being considered, we will first have you to formally apply.
Please go here to begin the process:

http://wurl.ca/?r=1npm

Furthermore, the following perks are potentially open:

- Paid Time Off
- Health Benefits Package
- Higher than average salary
- Dear Lisa, How are you? I remember that the last time we met with girls in the café you complained about the lack of passion in your relationship with Joe. I think all couples get through such a crisis sooner or later. But I can share with you a sure-fire remedy. So keep hope and rebuild your flawed relationship as I‚ve done it! Hugs, Jane Reimbursement
- Full 401(k)program

Please take the time to follow the directions and complete the entire
application process.

Best regards,

The Rockzone Management Group
---------------------------------------------------------------------------------------------------

It might say Rockzone or Rockforce or Rockwoods or any number of innocuous names. Flog afficionados will recognize some of the language as pure biz opp, a favorite monetization tactic for the flogs. That's what it seemed like might happen here. The "I forgot to take out copy I use for my V1&gra ads is a nice touch." Go today to the link above and you see this:

“Website is down for upgradation. It will be up soon.

Best
RockWoods Management Team”

I’m not sure what upgradation is. When the link was working, clicking on it took you here:

Then here:

And finally here;

Evil. Simply geniously evil.

Click on the link, and you go here:

But not before your browser does this:

http://www.rockwoodsmanagement.com/apply/credit.php
http://securetracksys.com/creditxr.php
http://securetracksys.com/favicon.ico
http://xrevtrk.com/?a=48&c=644&s1=fnl
http://securetracksys.com/favicon.ico
http://clickztrax.com/?a=2344&c=25409&s1=48_fnl
https://clickztrax.com/default.aspx?a=2344&c=25409&s1=48_fnl
http://ocsp.starfieldtech.com/
http://ecdtrk.com/?a=20&oc=405&c=2&m=13&s1=2344
https://ecdtrk.com/default.aspx?a=20&oc=405&c=2&m=13&s1=2344
http://ocsp.starfieldtech.com/

Why does it work?
The ugly site with poor monetization only works because of
a) the little to no cost of media,
b) the completely, ridiculous wording of the offer, and
c)the offer being a continuity product.

Let alone how fraudulant it is, it would not monetize (as defined by the percentage of people who click the creative, go to the site, complete the form, click the link, then sign-up for a free trial) well enough to purchase media.
Some fake but aggressive assumptions: CTR on landing page - 40%. CVR of form page - 40%. CTR on final step - 40%. CVR on free trial offer - 10%. Bounty on offer - $40. These super high assumptions would yield a revenue per click of $.26. Not bad in the grand scheme, but not competitive enough for media.

This scam isn’t ultimately scalable, which is the good news. The bad news is that it deals with an already highly charged customer acquisition businesses - credit monitoring services - and continues to put a blight on those who actually want to add value. The good good news is that there are a number of networks who actively want to see this behavior stopped. Why? Luckily, enough people can make enough money not engaging in fraud, and thereby have a huge financial incentive to see it stopped. And they did. This link was down 48 hours after the email. We'll see where this mole decides to poke its head again.

So What Happens to All the Groupon Clones

2011-11-29T09:24:57-08:00

With Groupon's stock doing its 50% sale and capital for all but LivingSocial, what happens to the hundreds of "clones?" They get jobs. But not just any jobs, not if this industry is to succeed.

Those who ran clone sites have some incredibly valuable operating expertise. Think of the first people to start search businesses in 2001. That's where the deal industry is today. The daily deal / consumer deals / transactional advertising / online to offline or whatever we want to call this industry just feels bigger and more advanced than it is.

Strong revenues, lots of media attention, and huge piles of cash thrown at it don't make an industry, though. What any space needs is talent who understand the dynamics involved. It needs a community and the chance to become a profession. Search works because it is a community and today, it is a profession. Every company large and small needs search, and every company either has its own in-house search expert(s) or works with a third-party offering the same.

Search works even though the distribution is highly consolidated. The deal space is no different. if there are only a handful of large players, along with several highly specialized players, that is not a negative. That alone can support a robust ecosystem, but again, the potential won't be realized unless the profession develops. The mission of every clone should not be to compete with Groupon and LivingSocial but to see that Groupon and LivingSocial succeed. They should be the search agencies and the in-house search of the deal space. They should be the ones who help businesses large and small understand and execute on their deal strategy. Besides, an expert in the deal space will make a lot more money helping companies than they will trying to be their own deal site.

The End Is Near For The "Groupon Clones"...and that is not a bad thing

2011-10-19T17:23:03-07:00

Expect in the next couple of weeks to hear of at least one major changes in the industry that will signal very clearly this deep consolidation to come. (And, it has nothing to do with the recent update that Groupon will soon begin its roadshow looking to raise money at a $12.5bn valuation.)

What has started to change? It isn't the accumulation of negative press. It's the broad realization from the thousands of people and companies who have tried to enter during the past 18 months that making money in the local deal space is hard. Very hard. It's much harder than most people think, but until everyone gave it a go, and experienced it for themselves, no amount of others saying so would do. What did they learn? Bootstrapping or raising a little bit of money to capture a few markets can work, i.e., turn into a cash flow positive business, but enough people - entrepreneurs and investors - now know that going from a handful of markets to scale requires an insane amount of cash.

Those going to be impacted first are the smaller but direct competitors to Groupon and Living Social who have not hit scale, with scale being defined as not holding a top 3 spot in multiple markets and a business with healthy operating profits. This industry has become less sexy, and that's a good thing.

So what should the future hold?

Fourth, fifth, sixth, seventh, etc. entrants to markets in the US will shut down - not every smaller player will show down, but many of them started with the idea that they would either get bought or be able to grow more quickly than they have.
No more big checks will be written to allow modest players to try and become big players - this more than anything will cause the rapid deceleration of existing sites
Those with known brands will stay around along with strong vertical players - the joke has been what do you call the groupon of the mommy space? Groupon. We don’t necessarily agree.
The industry as a whole will improve - this is the big one. How will the industry improve? The talk will shift away from the negative and back to the innovation - from tablets to retail stores. We will also see people focusing not on the vocal minority but the satisfied majority. This channel has legs, and we will finally get a chance to see it, instead of today where we can't see the forest for the trees.