Google made a power move by communicating directly to Australian consumers with a pop-up on the Google search home page. The open letter to Aussies is the latest in response to Australia’s push to pass a law that would require Google and Facebook to pay media publications for their news content.
News media companies have suffered in many markets with the fall of print media and rise of online news, affecting the companies’ ability to collect ad revenue. The Australian government says that Australian news outlets have been impacted even more acutely by the coronavirus pandemic, with over one hundred local papers in the country laying off reporters and either stopping printing or closing entirely.
Google’s open letter to Aussies, penned by the Australia Managing Director, Mel Silva, warns that the rule would unfairly advantage big media industries by requiring Google to share data to help them artificially boost their rankings. This would jeopardize the quality of search results and possibly even user data, claiming “There’s no way of knowing if any data handed over would be protected, or how it might be used by news media businesses.”
The Australian Competition and Consumer Commission (ACCC), the watchdog that authored the proposed law, says the open letter contains inaccuracies. They claim that Google would not be required to share any additional use data with the media unless it chooses too, and would also not require Google to start charging for its free services like Search and Youtube.
Of course, it is any company’s prerogative to communicate directly with its customers, even its non-paying customers. But if this communication is effective in wielding the power of Google’s millions of Australian civilians to counter the government’s regulations, it behooves Aussies to leverage Google to understand the facts and verify Google’s claims against the text of the regulation.
The decision to highlight bellicose language like “at risk” and “hurting” to describe the effects of the law, without explaining the proposed law itself, is a clear attempt to manipulate an emotional reaction from users by painting the law as a threat to free services, rather than an attempt to protect a healthy democracy.
The spread of misinformation online is threatening democracies around the world, and Google should take a hard look at its role in that.
Google published a more detailed blog post on the matter on May 31, entitled “A fact-based discussion about news online.” The post essentially claims that Google Australia doesn’t gain that much revenue from news searches (only 10 percent!) so how could it possibly be ‘taking’ that money from the media? Furthermore, 2018 Google searches accounted for 3.44 billion visits to Australian news publishers – at no charge to the publishers! That’s a lot of clicks! Can’t you feed your kids with them clicks, Aussie news monsters?
This is not the first time Google has made political noise. In 2018, Google displayed Youtube notices about an EU copyright proposal and in 2014, closed Google News in Spain entirely over a similar dispute as Australia.
In the end, the question remains – in Australia, the US, and elsewhere – whether tech giants like Google and Facebook should hold outsized market control of paid advertising online.
But the lengths Google is currently taking to undermine this governmental action is a testament to just how far this company has come in 22 years. In 1998, Google’s founders Sergey Brin and Lawrence Page published an academic paper from the Stanford computer science department entitled “The anatomy of a large-scale hypertextual Web search engine.” Yes, that search engine was named Google.
The paper describes a novel approach to enhance the effectiveness of a large-scale search engine in the early days of the internet. In addition to an apropos search result example for the term “Bill Clinton,” the paper comments on paid advertising.
In Appendix A: Advertising and Mixed Motives, the authors assert that a conflict of interest could arise when a high-quality search result is counter to the goals of a paid advertiser. They conclude that “advertising funded search engines will be inherently biased towards the advertisers and away from the needs of the consumers.” In 2019, paid advertising accounted for 70.9 percent of Google’s revenue.
Sure, the internet of 2020 is not the beloved wormhole of yesteryear, when the online world was mostly made of blogs, games, and community forums. Google has grown with the times (or even ahead of them), as any smart tech company should. So perhaps holding 2020 Google to a 1998 standard is unfair.
Nonetheless, I leave you with the authors’ conclusion to the advertising discussion from their original concept: “…we believe the issue of advertising causes enough mixed incentives that it is crucial to have a competitive search engine that is transparent and in the academic realm.”
Transparency isn’t outdated, is it Google?
Keep your company’s operations lean by following these proven strategies
(BUSINESS) Keeping your operations lean means more than saving money, it means accomplishing more in less time.
The past two years have been challenging, not just economically, but also politically and socially as well. While it would be nice to think that things are looking up, in reality, the problems never end. Taking a minimalist approach to your business, AKA keeping it lean, can help you weather the future to be more successful.
Here are some tips to help you trim the fat without putting profits above people.
Artificial intelligence frees up human resources. AI can manage many routine elements of your business, giving your team time to focus on important tasks that can’t be delegated to machines. This challenges your top performers to function at higher levels, which can only benefit your business.
Consider remote working
Whether you rent or own your property, it’s expensive to keep an office open. As we learned in the pandemic, many jobs can be done just as effectively from home as the workplace. Going remote can save you money, even if you help your team outfit their home office for safety and efficiency.
In today’s world, many are opting to completely shutter office doors, but you may be able to save money by using less space or renting out some of your office space.
Review your systems to find the fat
As your business grows (or downsizes), your systems need to change to fit how you work. Are there places where you can save money? If you’re ordering more, you may be able to ask vendors for discounts. Look for ways to bring down costs.
Talk to your team about where their workflow suffers and find solutions. An annual review through your budget with an eye on saving money can help you find those wasted dollars.
Find the balance
Operating lean doesn’t mean just saving money. It can also mean that you look at your time when deciding to pay for services. The point is to be as efficient as possible with your resources and systems, while maintaining customer service and safety. When you operate in a lean way, it sets your business up for success.
How to apply to be on a Board of Directors
(BUSINESS) What do you need to think about and explore if you want to apply for a Board of Directors? Here’s a quick rundown of what, why, and when.
What does a Board of Directors do? Investopedia explains “A board of directors (B of D) is an elected group of individuals that represent shareholders. The board is a governing body that typically meets at regular intervals to set policies for corporate management and oversight. Every public company must have a board of directors. Some private and nonprofit organizations also have a board of directors.”
It is time to have a diverse representation of thoughts, values and insights from intelligently minded people that can give you the intel you need to move forward – as they don’t have quite the same vested interests as you.
We have become the nation that works like a machine. Day in and day out we are consumed by our work (and have easy access to it with our smartphones). We do volunteer and participate in extra-curricular activities, but it’s possible that many of us have never understood or considered joining a Board of Directors. There’s a new wave of Gen Xers and Millennials that have plenty of years of life and work experience + insights that this might be the time to resurrect (or invigorate) interest.
Harvard Business Review shared a great article about identifying the FIVE key areas you would want to consider growing your knowledge if you want to join a board:
1. Financial – You need to be able to speak in numbers.
2. Strategic – You want to be able to speak to how to be strategic even if you know the numbers.
3. Relational – This is where communication is key – understanding what you want to share with others and what they are sharing with you. This is very different than being on the Operational side of things.
4. Role – You must be able to be clear and add value in your time allotted – and know where you especially add value from your skills, experiences and strengths.
5. Cultural – You must contribute the feeling that Executives can come forward to seek advice even if things aren’t going well and create that culture of collaboration.
As Charlotte Valeur, a Danish-born former investment banker who has chaired three international companies and now leads the UK’s Institute of Directors, says, “We need to help new participants from under-represented groups to develop the confidence of working on boards and to come to know that” – while boardroom capital does take effort to build – “this is not rocket science.”
NOW! The time is now for all of us to get involved in helping to create a brighter future for organizations and businesses that we care about (including if they are our own business – you may want to create a Board of Directors).
The Harvard Business Review gave great explanations of the need to diversify those that have been on the Boards to continue to strive to better represent our population as a whole. Are you ready to take on this challenge? We need you.
Average age of successful startup founders is 45, but stop stereotyping
(BUSINESS) Our culture glorifies (yet condemns?) startup founders as rich 20-somethings in hoodies, but some are a totally different type.
There’s a common misconception that startups are riddled with semi-nerdy, 20-something white dudes who do nothing but sip Nitro Brews and walk around the open office showing off the hoodie they wore yesterday. It turns out that it’s extremely rare that startup offices resemble The Social Network.
However, the academic backdrop for the real social network story (AKA Harvard), produced statistics that will serve to put the aforementioned misconception to rest. According to the Harvard Business Review, the average age of people who founded the highest-growth startups is 45. Say what?! A full-fledged adult?!
In fact, aside from the age category of 60 and over, ages 29 and younger were the smallest group of founders that are responsible for heading the highest-growth startups. I guess you can accomplish a lot when you’re not riding around the office on a scooter all day.
The study also found that older entrepreneurs are more likely to succeed. The probability of extreme startup success rises with age, at least until the late 50s. It was found that work experience plays an important role.
Many will argue, “Well, what about someone like Steve Jobs?” You could easily argue right back that it took Jobs until the age of 52 to create Apple’s most profitable product – the iPhone.
The study continues to answer questions like, why do Venture Capitalist investors bet on young founders? This goes back to the misconception at the start, and there’s a notion that youth is the key for successful entrepreneurship. Wrong.
There is also the idea that younger entrepreneurs are likely working with less financial options, so it may be common for them to take something from a VC at a lower price. As a result, they could be viewed as more of a bargain than older founders.
“The next step for researchers is to explore what exactly explains the advantage of middle-aged founders,” writes Pierre Azoulay, et al. “For example, is it due to greater access to financial resources, deeper social networks, or certain forms of experience? In the meantime, it appears that advancing age is a powerful feature, not a bug, for starting the most successful firms.”
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