Blogging Power Law Dynamics

Great article on blogs and power law dynamics that showed up on my desk this morning, from New York magazine.

“When [Clay] Shirky compiled his analysis of links, he saw that the smaller bloggers’ fears were perfectly correct: There is enormous inequity in the system. A very small number of blogs enjoy hundreds and hundreds of inbound links—the A-list, as it were. But almost all others have very few sites pointing to them. When Shirky sorted the 433 blogs from most linked to least linked and lined them up on a chart, the curve began up high, with the lucky few. But then it quickly fell into a steep dive, flattening off into the distance, where the vast majority of ignored blogs reside. The A-list is teensy, the B-list is bigger, and the C-list is simply massive. In the blogosphere, the biggest audiences—and the advertising revenue they bring—go to a small, elite few. Most bloggers toil in total obscurity.

Economists and network scientists have a name for Shirky’s curve: a “power-law distribution.” Power laws are not limited to the Web; in fact, they’re common to many social systems. If you chart the world’s wealth, it forms a power-law curve: A tiny number of rich people possess most of the world’s capital, while almost everyone else has little or none. The employment of movie actors follows the curve, too, because a small group appears in dozens of films while the rest are chronically underemployed. The pattern even emerges in studies of sexual activity in urban areas: A small minority bed-hop, while the rest of us are mostly monogamous.

The power law is dominant because of a quirk of human behavior: When we are asked to decide among a dizzying array of options, we do not act like dispassionate decision-makers, weighing each option on its own merits. Movie producers pick stars who have already been employed by other producers. Investors give money to entrepreneurs who are already loaded with cash. Popularity breeds popularity.”

That being said, there are a couple of implications.

If being an A-lister matters to you, you need to write quality, and write it often. And then, make sure that others can find it. As inequitable as it is, the best way to do that is get the notice of the A-listers by linking. It’s an artifact of the way PageRank, etc. works. As I’ve said before, a link is a blunt instrument and the crudest of social gestures. But it’s what we have for right now.

If writing for and serving a particular focused market is the thing that matters, just write, write often, and write on-topic. The search engines will find you.

On the other hand, notice from the above that while the “short head” gets the big traffic, the real numbers are in the long tail. Providing a way to connect those individuals en masse opens up another route to success. More on this soon.

Update: Hugh weighs in as well.

Is Nvidia Exploring The Dark Side Of Viral Marketing?

Consumerist and BoingBoing are indicating that Nvidia may (note: speculation) be working with firm AEG to create faux online personnas to develop positive reputations in online communities to pitch Nvidia products. Consumerist’s unsubstantiated indictment:

“About a week ago, The Consumerist stumbled upon claims made by various gaming websites that graphics chip manufacturer Nvidia, in cooperation with the Arbuthnot Entertainment Group (AEG), had seeded various gaming and PC hardware enthusiast sites with pro-Nvidia shills. That is to say, that AEG would hire employees to create ‘personas’ in various gaming communities, slowly building up the trust of other members by frequent posting unrelated to Nvidia, to later cash in that trust with message board postings talking up the positive qualities of Nvidia’s products.”

Now, one of AEG’s self-proclaimed skills is in:

“Strategic seeding [of] viral assets to ensure they are spread far and wide”

Ok, fair enough. And this post posits that:

“AEG, on behalf of NVIDIA, monitors a number of public hardware enthusiast communities and forums, seeking out some of the more well-respected members of these communities, those that they feel will hold sway among their peers when it comes to discussing product purchase decisions and the like.

These individuals are then approached regarding their interest in joining NVIDIA’s community outreach programme. Those that register said interest are then provided with a free NVIDIA product (graphics cards generally speaking, although as NVIDIA has noted this campaign has been diversified into other product areas) in return for these users providing feedback to NVIDIA for the product they have been given, as well as hopefully evangelising the product to other members of their community. Thus, good word of mouth about the product is spread by a highly valued member of a community among his peers, who then take his sentiments on-board, spread them on to other communities, users, friends etc, and so on – The ‘good news’ spreads quickly, acting as a perfect form of viral marketing.”

If the process above is being followed, and true enthusiasts who happen to be key members of a community are being given samples of product, with no strings or expectations attached, that is good aggressive (and smart) marketing, and is above board. (The recipients do have an obligation, in my opinion, to disclose the freebies, however. One approach is the one that Nokia is following that is covered here, here, here and here.) Now, on the other hand, if shills are being compensated to talk up Nvidia in online forums without disclosing their interests or, even worse, are being compensated to create multiple personalities to astroturf the gaming world, that is an entirely different kettle of fish altogether, and reeks of the issues that have been covered previously in this space and over at Brand Autopsy.

Nvidia, however, horribly flubbed their first attempt to publicly address the situation. After some badgering, Consumerist has received the following email from Nvidia PR Director Derek Perez:

“Hey Joel.

Boy – read your article – you couldn’t have gotten it more wrong.

Do you really not know what AEG does? Did you go to their website? Do you understand their business?

Seems before you write an editorial article on this you would educate yourself.

AEG helps us to manage the online community – we engage with some NV fans to help educate people on the web.

They are NOT hired actors!

They are NOT “shils”!

Happy to answer more questions – but it seems as if you need to do some research first.

Cheers Derek”

This is certainly not the best piece of outreach that’s ever occurred. If Nvidia is NOT engaging in below-board practices, Nvidia would be better served by coming out with a flat, unambiguous statement to that effect. The Perez response is weak and defensive, and not at all what one would expect if they were trying to address the situation in a straightforward and truthful manner. Not good.

Neville, Shel, Steve…what would you advise Nvidia to do in this situation?

(Also of note: the AEG blog is silent on this at the current time.)

Update: Email conversation between Derek Perez and Thomas Hawk on the situation. Hawk:

“I just got off the phone with Derek Perez, Director of NVidia PR, according to Perez, while NVidia has in fact hired third party marketing firm Arbuthnot Entertainment Group (AEG) to market on their behalf, Perez has denied any allegations that either NVidia, or AEG on NVidia’s behalf, has paid money to individuals for posting positive marketing news about NVidia in forums. While Perez has confirmed that NVidia has in fact given hardware to individuals in the mainstream press as well as enthusiasts in online communities, they deny that any cash has been paid to individuals for promoting their products by them or AEG to the best of their knowledge.”

The Social Customer Manifesto Podcast 3FEB2006

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Summary: Leif Chastaine and Christopher Carfi discuss Yahoo’s strategy, Google’s censorship, the remix culture and customer “co-creation” of products, the American Marketing Association’s “Ahead of the Curve” session in Scottsdale, and this week’s RIM/BlackBerry update. (33:06)

Show notes for February 3, 2006

The audio file is available here (MP3, 32MB), or subscribe to our RSS feed to automatically have future shows downloaded to your MP3 player.

00:00 : Intro

01:04 : Yahoo “quits” the search race? Or do they?

09:08 : Google image censorship and strategy

16:30 : The importance of customer “co-creation” of products

27:30 : RIM: “Non-final” judgement regarding BlackBerry is just that

31:45 : Social Networking: Ahead of the Curve (Scottsdale)

32:23 : Wrapup

Links:
Dave Taylor (“What do Yahoo, Apple and Ferrari have in common?”), Yahoo quits, Yahoo gives up, Yahoo content to be Google’s footstool, Yahoo gives up race with Google, Steve Rubel, Google image censorship, Paul Greenberg, BPT Partners, customer co-creation, NTP=”No Tenable Patents?”, RIM patent dispute, AMA High Tech Trends in Marketing

NYTimes: RSS Is Like An Email Newsletter

A timely article in the travel section of today’s Times, entitled “There’s a Popular New Code for Deals: RSS,” (grab it before it rolls behind the registration wall) shows how travel company marketers are using RSS to supplement their existing email newsletter campaigns with RSS feeds.

The interesting thing about this article is that it introduces yet another metaphor for RSS : “it’s like an email newsletter.” (We were just talking about “better” metaphors for RSS here.) While this utterly trivializes the technical aspects and capabilities of the technology, it’s a neccesary step to enable “true” mass adoption of the technology. The intricacies can be explained later, when needed.

It’s certainly a better turn-of-phrase than “RSS is like an API for content,” which is another contender.

Their elevator pitch:

“[T]hose willing to spend a few minutes to create a personalized home page on Yahoo, MSN, Google or other sites now have a useful alternative. Recently, these sites began allowing consumers to populate their home pages with similar information they’d find in e-mail newsletters, with two added benefits: all the relevant information from multiple sites appears on one page, instead of multiple e-mails, and the information is often considerably fresher, with several updates a week – or even a day.

What’s more, the most recent information is there whenever you’re in the mood to check it, not when your e-mail tells you to.”

Read the Times article if you have the time to do so. After the headline, it has to invest seven paragraphs of background before being able to make first reference of “RSS.” That’s way too long. We need to keep making this easier, and this characterization is a good start.

The Social Customer Manifesto Podcast 27JAN2006

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Summary: Leif Chastaine and Christopher Carfi discuss the American Marketing Association’s “Ahead of the Curve” session in Chicago, the marketing challenge for RSS, Salesforce.com taunts and tempts Siebel employees, launch of the “Healing Space” health and environment blog, and this week’s RIM/BlackBerry Supreme Court decision. (33:32)

Show notes for January 27, 2006

The audio file is available here (MP3, 32MB), or subscribe to our RSS feed to automatically have future shows downloaded to your MP3 player.

00:00 : Intro

01:10 : Recap of the AMA’s Ahead of the Curve session: High Tech Trends in Marketing

02:40 : What is RSS?

Metaphors:
Google search for RSS metaphors (n.b. and yes, actually these are “similes” and not “metaphors,” we know, we know…)

“RSS is like an API for content”
“RSS is like selling dogfood over the internet”
“RSS is like Tivo for the web”
“Explaining RSS is like explaining sex. You just don’t get it until you do it.” (also here)
Dave Winer

11:45 : Salesforce.com to Siebel employees: “No Future

19:30 : Healing Space health, wellness and environment blog launched

25:15 : Supremes won’t intervene in RIM BlackBerry / NTP dispute

33:50 : Wrapup

Links:

Bill Flitter, Stowe Boyd, Randy Moss, Michael Sevilla, TheCradle, Salesforce.com, Siebel, Paul Greenberg, Todd Pesek, EarthHealers, Naturaleza Foundation, eco-tourism, Craig Williams, Howard Bashman, Research in Motion, BlackBerry, Ross Mayfield, Davos, BlackBerries a matter of national security

Business Blogging At IBM

Julie Alterio at The Journal News has a decent article up on the scope of blogging initiatives within Big Blue and other organizations. Irving Wladawsky-Berger, IBM’s VP of technical strategy and innovation is quoted as saying:

“We absolutely recognize that blogging, just like the Internet, World Wide Web, Linux and open source, is a major initiative in the marketplace that we should be part of. This best way to be part of it is not to observe it passively but to do it actively.”

Sound advice.

And, although the article is primarily about the view on business blogging from within IBM and other large companies, Dave Sifry gets into the act as well. And NAILS his line. Way to go, Dave…

“In the world of the Internet, you don’t own your brand. Your customers and your users own your brand. You’re lucky if you get to shepherd it.”

Explosive Growth

Was on a call regarding the upcoming AMA Hot Topic session in Chicago (gratuitous plug: you can still register here), and a startling point was made (paraphrased).

“The number of new bloggers is growing so rapidly that we’re seeing a net decrease in the typical individual’s understanding of blogging, since the number of newcomers is expanding so wildly.”

(I think it might have been Stowe who said this, but there were a bunch of folks on the call.)

Two questions:

  • Are other folks seeing this as well?
  • If this is correct, the implications are tectonic…we need tools, education, and support that are an order-of-magnitude better and EASIER than the ones we have now if the trend is to continue.

What’s everyone else seeing?

Business Podcasting Article In The Baltimore Sun

The key line: “In what amounts to a nationwide social experiment, corporate America is testing whether this cheap and quirky medium proves useful in the battle to reach the public, communicate meaningfully with employees and keep costs down.”

link: Corporations go off a-podcasting

(Disclosure: I’m quoted in the article. Also, a huge guffaw out to Social Customer reader Dave Ritter who has the best line in the article, which was pulled from the comments here.)

Best Buy Apologizes For Strongarming Some Xbox Customers

Apparently, some customers looking for the best buy on the new Xbox 360 instead were met with less-than-stellar sales tactics at some Best Buy stores, with sales personnel “requiring” customers to purchase unwanted accessories as part of a bundle in order to get the base Xbox unit. Gamedaily reports:

“Console bundles for new hardware launches certainly aren’t unusual-many retailers (especially online) have been selling the Xbox 360 in bundle form only-but this practice is one that doesn’t sit well with many consumers and was not supposed to have been adopted by popular retail chain Best Buy. Perhaps these gamers left with a sour taste in their mouths by the selling tactics of these console retailers will be drawn towards the world of PC gaming instead where such antics are nonexistent. Sites like GameGator (check it out here – https://gamegator.net) help PC gamers get great deals on the latest releases, so they’re well worth checking out if you’re looking to make the switch from consoles – or even if you just want an additional device to game on.

Despite this, certain Best Buy stores in the U.S. apparently ignored the standalone $299 (core) and $399 (premium) SKUs and either forced consumers to buy Xbox 360 bundles or strongly suggested that they do so.”

For example, back on November 23rd, the Northwest Indiana Times reported:

“Glancing down the line Tuesday morning at the Valparaiso store, there was a sea of heads covered with knit caps or hoodies. The crowd consisted mostly of guys in their late teens to early 20s, sprinkled lightly with motivated soccer moms and young women.

It wasn’t just the weather that was unpredictable. At 8:15 a.m., after many nighttime hours spent shivering in line, a Best Buy employee announced that the unit would not be sold alone for the $399 advertised in the sales flier. Instead, those in line were told they would have seconds to decide whether to buy a higher-priced bundle, adding a game and other accessories.”

In the wake of this, did some looking around and just tripped across the following memo, penned by Brian Dunn, Best Buy’s President of Retail for North America (via Mike Antonucci at the Merc):

“TO: Open Letter to Customers

FROM: Brian Dunn, President – Retail, North America

RE: Launch of Xbox 360

CC: Best Buy Store, District and Territory Employees; All Officers and Directors

DATE: December 6, 2005

I’m writing to apologize.

While all of us at Best Buy were thrilled to be part of the recent launch of Microsoft’s Xbox 360 video game system – one of the most anticipated events in the history of electronic gaming – the launch did not go as we had hoped. We sold out of Xbox 360s nationwide in less than two hours, and most of our stores did an outstanding job of serving our gaming customers. I’d like to thank the majority of our employees, who provided a terrific experience for customers at the launch date. However, our promotional activities in certain cases failed to follow company guidelines. As a result, some of our valued gaming customers had an experience in our stores that was inconsistent with what you’ve come to expect from us, as a leader in the consumer electronics industry.

Specifically, customers in some Best Buy stores were told that they were required to buy additional Xbox accessories or services if they wanted one of the sought-after Xbox 360 consoles, even though we advertised the Xbox 360 console alone. I want to be very clear that Best Buy does not condone pressuring customers to purchase items they may not want or that may not fit their lifestyle. In fact, these behaviors are in direct conflict with our desire to serve customers’ needs better than anyone else, and our values of honesty and integrity.

We are currently investigating all leads about promotional practices that may have violated the company’s guidelines, and we will take disciplinary actions as appropriate. We also have reminded all of our stores about our policies with respect to launches of hot products. Meanwhile, on behalf of Best Buy, I’d like to offer a sincere apology to any customers who felt pressured to buy items they did not want.

Customers who are unhappy with Xbox 360-related purchases made in November 2005 may return unwanted items for a full refund at any Best Buy store. In addition, if your Xbox 360 purchasing experience did not meet your expectations for any reason, please email us at [email protected] . (Employees with information pertinent to our investigation are encouraged to call our Ethics Hot Line instead.)

Last, I would like to invite you back to our stores, particularly later this month, when Best Buy will receive more shipments of Xbox 360s. While supplies continue to be very limited, we are truly excited about this new gaming platform, and we’d like to deliver the best of that experience to you. We promise an in-store experience that is focused on your needs and the needs of everyone on your holiday gift list.

Brian Dunn”

(UPDATE: The letter has since been posted here, with a miniscule link to a PDF buried next to the garish page navigation photograph .)

So, from both the communications and customer interaction points-of-view, a well-handled episode for Best Buy. Although a few individuals tried to take advantage of customers, Best Buy corporate is doing the right thing in not only investigating (and, presumably, disciplining) the responsible parties, but also taking an aggressive tack to make whole the customers who were affected by the issue. Of course, it would have been better if this never had happened in the first place, but still an “B+” response based on relative timeliness and assumption of responsibility for the issue. (Would have been an “A” if they had done this in an even more timely manner and made the letter to customers more visible on their web site.)