Leak shows Facebook’s business model needs regulating, says MEP

The European Parliament’s lead and shadow rapporteur for a major reboot of the bloc’s digital rulebook have called for an investigation following the Facebook whistleblower leaks.

One of the MEPs has also called for incoming EU rules to directly tackle business models that favor “disinformation and violence over factual content”.

In a joint statement, the lead rapporteur for the EU’s Digital Services Act (DSA), Christel Schaldemose (S&D), and Alexandra Geese (shadow rapporteur for the Greens/EFA), said they are in touch with the former Facebook employee turned whistleblower, Frances Haugen.

In an interview with 60 Minutes today, Haugen revealed herself as the source of a raft of recent leaks to the Wall Street Journal which has reported on the internal documents for a number of stories — including that Facebook’s internal research suggested Instagram made teenage girls’ anxiety and body image issues worse and that the tech giant operated policy carve outs for whitelisting celebritie.

The two MEPs said the leaks make it clear that Big Tech must not be allowed to continue to regulate itself.

The EU’s executive moved forward in December last year with a major reboot to the digital rule book — introducing the DSA and another piece of regulation that’s specifically targeted at tech giants’ market power (aka the Digital Markets Act), kicking off a process of (ongoing) negotiations between EU institutions to amend and adopt legislation to extend platforms’ accountability.

The support of the European Parliament is required to pass the digital policy packages. And Geese is unlikely to be alone in calling for stronger measures than were contained in the Commission’s original DSA proposal in light of the latest ugly Facebook revelations.

In the joint statement, Schaldemose said that large tech companies have shown they are “simply not capable” of responsible self regulation.

“The governing of our shared spaces on social media must be done through democratically controlled institutions just as we have done in the parts of our society that do not lie in the digital realm. We must demand transparency from the tech companies and we must allow civil society, law makers and scholarly experts to have insight into the building blocks of the algorithms. This is the only way that we can have a public debate about the effects of these algorithms,” she also said. 

“Today, we know this from the files, there are arbitrary protections of celebrities and a huge focus on negative, wrong and conflict-ridden content that threaten to undermine the very democratic conversation that we once hoped, the social media platforms could strengthen. To keep that hope alive and to allow all voices the ability to join in on the conversation, we must put firm demands to the companies governing these spaces.”

Geese went further — calling for the DSA to be strengthened in light of Haugen’s whistleblowing — arguing that the exposures are game-changing and make the case for regulating whole business models when they benefit from the amplification of disinformation at the expense of truthful content.

“I am extremely grateful for the courage of the whistleblower that finally gives us insights we need to effectively legislate. The revelations couldn’t be more timely for the work on the DSA,” said Geese. “The huge volume of documents and the person’s deep expertise are impressive. Until now, neither the public nor legislators have been able to gain such a deep insight into the mechanisms that have become far too powerful. The documents finally put all the facts on the table to allow us to adopt a stronger Digital Services Act.

“The conversation confirms my view that we need strong rules for content moderation and far-reaching transparency obligations in Europe. In a democracy we cannot tolerate an internet where some people have the right to promote violence and hatred in spite of the rules and others see perfectly legal content taken down by automated filters.

“We need to regulate the whole system and the business model that favours disinformation and violence over factual content – and enables its rapid dissemination. We also need consistent enforcement in Europe. It is naïve to appeal to corporate self-regulation and responsibility. We as elected politicians have the responsibility for democratic discourse and must exercise it in the legislative process.”

In her interview with 60 Minutes, Haugen was quizzed about a complaint made to Facebook in 2019 by major political parties across Europe — which were said to have raised concerns with the tech giant that its algorithmic preferences was forcing them to “skew negative” in their communications on its platforms and that was leading them to adopt more extreme policy positions.

“You are forcing us to take positions that we don’t like, that we know are bad for society, we know if we don’t take those positions we won’t win in the marketplace of social media,” said Haugen, summarizing the parties’ concern in the interview.

Facebook was contacted for a response to the MEPs’ joint statement.

In a statement to Reuters, the tech giant reiterated its customary claim that it has “been advocating for updated regulations where democratic governments set industry standards to which we can all adhere”.

Haugen has said that she made the decision to turn whistleblower after becoming frustrated that Facebook was not responding to such concerns and that executives at the company were instead prioritizing its financial performance over making changes to its content-sorting algorithms that could reduce the platform’s negatively polarizing effects on society.

“Facebook has thousands of [content] options it could show you. And one of the consequences of how Facebook is picking out that content today is it optimizing for content that gets engagement or reaction. But its own research is showing that content that is hateful, that is divisive, that is polarizing — it’s easier to inspire people to anger than it is to other emotions,” Haugen also told 60 Minutes.

A year ago the European Parliament voted to back a call for tighter regulations on behavioral ads — such as those which power Facebook’s content-sorting social media business — advocating for less intrusive, contextual forms of advertising and urging EU lawmakers to consider further regulatory options, including asking the Commission to look at a phase-out leading to a full ban.

With ever more ugly revelations coming out of Facebook — seemingly on a weekly basis — momentum could well build in the European Parliament for taking a far tougher line on engagement-based business models.

Facebook founder Mark Zuckerberg got a frosty reception from MEPs back in 2018 — the last time he took an in-person, publicly streamed meeting with a part of the institution, in that case in the wake of the Cambridge Analytica data misuse scandal.

Asked about the MEPs’ statement today, a Commission spokesperson told the Reuters news agency that its position in favor of regulation is “clear”, adding: “The power of major platforms over public debate and social life must be subject to democratically validated rules, in particular on transparency and accountability.”

What a community means in the modern world of startups

“We believe that a thriving community is a company’s most valuable asset,” Community-led writes in its Declaration. “Community scales your business, resources and presence in ways that traditional marketing or advertising channels can’t. When done right, community enables and improves customer acquisition, streamlines support and success, bolsters retention, and provides crucial product insights. Community is the beating heart of the business that keeps the rest of the team running.”

It’s a matter-of-fact document, aiming to emphasize the importance of community in building a forward-looking startup, while highlighting the concept’s elasticity. But it leaves a lingering question: What, precisely, do we mean when we use the word “community” in the world of startups?

You’d think that’d be a question answered easily by a panel titled, “How to Cultivate a Community for your Company that Actually Lasts” during TechCrunch Disrupt 2021 last week. But if I’ve learned anything from moderating said Disrupt panels, it’s that there’s no easy answer to the question, due in part to the aforementioned elasticity. So, is this just one of those “we know it when see it” things, to paraphrase a famous Supreme Court ruling?

“It depends on the person, the context and the company,” says Commsor’s chief community officer, Alex Angel. “But ultimately, to me, community, at its most basic, is a group of people who’ve come together with a shared purpose. That shared purpose could be your product, it could be a company, it could be a topic, it could be whatever, but they’re all there intentionally around that thing to gather and talk and learn.”

“Community” has grown into one of those buzzy Silicon Valley terms over the past few years, but long-time advocates explain that the concept is fundamental in entrepreneurship and venture capital investments.

“Last October, when we launched Community Fund, people were asking investors and founders in the industry, ‘What is this community thing?’ It’s very fluffy,” says Lolita Taub, corporate Development VP at Catalyte, and co-founder and general partner at The Community Fund. “All of a sudden, we started seeing companies like Reddit, Peloton and Glossier become unicorns. You’re seeing the real generational wealth that exists in community-driven companies.”

ProductWind raises $1.67M to connect your brand with hundreds of influencers

Some big brands spend millions of dollars on marketing each year and may only drive thousands of dollars in sales as a result. At the same time, influencers are steering thousands, or even millions, of their followers to certain brands.

ProductWind aims to connect brands with influencers in one click. The company is building a platform to enable brands to launch influencer marketing campaigns. Today, it announced $1.67 million in seed funding led by Early Light Ventures.

Co-founder and CEO Jason Kowalski is familiar with the marketing challenges facing brands. He was building Amazon’s self-service marketing platform and saw the disconnect between marketing and sales.

“We want brands to come in and have 100 or 200 influencers working with them,” he said. “Before, you might go on a platform and sort through a list of influencers and find them, but not know who would drive sales the best. It was mostly at the top of the funnel rather than the bottom.”

Kowalski brought in former Uber engineer Tom Hirschfeld as his co-founder, and together, applied automation and other proprietary technology to a database of influencers so that brands can join the ProductWind platform, describe what they want to achieve and set up a 100-influencer campaign within minutes versus the traditional weeks.

On the influencer side, they have their own platform and receive notifications when brands want to work with them. Rather than the old way of calling and texting with a brand, the influencer can see a list of available sponsorships, apply and get approved. They can purchase products online, or set up to receive them, and integrate with social media. ProductWind monitors when the posts appear and then pays the influencer through the platform.

As a result, ProductWind is able to generate better return on investment, for example, boosting a product from page 5 to page 1 on Amazon, because the platform creates a flywheel effect: the more value created brings in more sales and more influencers joining the campaign, Hirschfeld said.

For the company’s first 18 months, Kowalski and Hirschfeld bootstrapped the company, which was profitable from the first day, Kowalski said. During this period, revenue increased 10 times. The new funding will be invested in hiring more technology and sales employees to join ProductWind’s 15-person workforce.

“Profitability is key for us because we are producing big campaigns,” Kowalski added. “We are driving marketing and sales, and we want to be the next paradigm shifter.”

Early Light principal Mike Leffer said the company’s profitability came as a result of not only Kowalski and Hirschfeld being scrappy, but also due to Kowalski attracting some of ProductWind’s early customers by walking through a trade floor and talking to companies even before there was a finished product.

The status quo in influencer marketing is slow, but ProductWind is able to unlock influencer sales predictions. When speaking to customers and potential customers, Leffer said they were already seeing value and ROI. On the influencer side, the company is able to democratize access to the creator economy so that the opportunities aren’t just limited to professionals, he added.

“The company was in the right place at the right time and bootstrapped from nothing to a lot of revenue,” Leffer said. “They hit upon a need in the market where brands are knocking on their door to launch campaigns and then a space for the creator economy where anyone can be an influencer.”

Meanwhile, as the e-commerce aggregator market continues to heat up, the U.S. e-commerce industry is on track for its first $1 trillion year by 2022. At the same time, marketing channels are getting expensive: Amazon ad costs are up 30% since the beginning of the year.

Joining Early Light Ventures in the round was Ben Narasin, who recently spun out of NEA to launch Tenacity Fund, and Broom Ventures.

Narasin says the influencer market is huge and considers ProductWind the “DoubleClick of influencer marketing.” He explained via email that the company reminds him of what he saw during the start of the internet in the early 1990s when DoubleCLick allowed brands to aggregate relevant sites across a diverse and cluttered landscape with one relationship. Similarly, “Product Wind does that for the ‘wild west’ of influencer marketing,” he added.

 

Twitter for Professionals will begin to roll out this week for businesses and creators

Twitter really can’t go a day without releasing new products. But if you’re running an account for a business or a public figure, its latest addition might capture your interest. Soon, businesses and creators will be able to opt into “professional accounts,” giving them additional tools to distinguish their profile, quickly promote content through ads, and capitalize on Twitter’s future e-commerce efforts.

Though Twitter has introduced monetization options for popular tweeters, it hasn’t widely introduced different profile types for businesses, which its competitors at Facebook, Instagram and TikTok have already had for a while.

Twitter for professionals account flow image from Twitter. The image shows how you can select a category of your profile, choose if you're a business or a creator, and make your professional account.

Image Credits: Twitter

Twitter classifies anyone who uses Twitter for work as a professional — to qualify for a professional account, users have no repeated history of violating guidelines, and they must be authentic, with an account name, bio, and profile picture. That means no fictional characters, parody accounts, or pet accounts allowed (but some pets do have enough of a social following to make their owners money, in which case… is the dog a professional? 🤔 ).

Not all users have the capability to switch to a professional account just yet. But, when it’s available, users will be able to find a Twitter for Professionals tab by swiping open the sidebar from the Home timeline on the app. A “Switch to Professional” tab will also appear under profile settings. Then, select the most accurate category and either a business or creator account type. Once you’ve converted to a professional account, you will be prompted to follow topics, promote a tweet in an ad campaign, or customize your profile with modules. These include an about module, a shop module, and a newsletter module for users on Revue, the newsletter service Twitter acquired early this year.

Professional Twitter accounts can add modules for shopping, their newsletter, or more info about their business.

Image Credits: Twitter

If you decide that maybe you’re more of an amateur tweeter than a professional, it’s possible to switch your account back by navigating to edit profile, then edit professional profile, then switch account type. You can also toggle between whether you’re a business or a creator account, because at this point, sometimes it’s hard to tell! Twitter also wrote in its FAQ that you can only convert an existing Twitter account to a professional account (you can’t make a new account professional to begin with), and as of now, Twitter doesn’t have plans to allow for ads targeting professional accounts specifically.

Facebook grilled in Senate hearing over teen mental health

Last night, Facebook published two annotated slide decks in an attempt to contextualize the documents that the Wall Street Journal published this month, which reported evidence that the company is aware of its negative impact on teen mental health. These documents were released in anticipation of today’s Senate hearing on the mental health harms of Facebook and Instagram.

The Senate Committee on Commerce, Science, & Transportation questioned Facebook Global Head of Security Antigone Davis over two and a half hours, but lawmakers grew frustrated with Davis’ reticence to answer their questions directly, or provide much information that hasn’t been written in Facebook blog posts rebuking the WSJ reports.

“I congratulate you on a perfectly curated background,” Tennessee Senator Marsha Blackburn chided Davis. “It looks beautiful coming across the screen. I wish the messages that you were giving us were equally as attractive.”

Davis insisted that research from Facebook and Instagram has shown 8 out of 10 young people say they have a neutral positive experience on the app, and that her team wants 10 out of 10 young users to have a good experience. But Senators pushed back with other findings from Facebook’s own data, like the fact that among teenagers with suicidal thoughts, 13% of British users and 6% of American users said they could trace those thoughts to Instagram. Senator Richard Blumenthal (who serves as Chair of the Subcommittee on Consumer Protection, Product Safety, and Data Security) said that his office did their own research by creating an account pretending to be a thirteen-year-old girl. Senator Blumenthal said they followed “easily findable accounts associated with extreme dieting and eating disorders.” Within a day, he said, the account’s recommendations were solely composed of accounts promoting self-harm and disordered eating.

“That is the perfect storm that Instagram has fostered and created. Facebook has asked us to trust it. But after these evasions and these revelations, why should we?” Senator Blumenthal asked.

But in the midst of filibustering tactics that fit right in on the Senate floor (“We’re pretty good at filibustering in the Senate, too,” Senator Klobuchar told Davis), the Facebook Global Head of Safety did elaborate on some of the company’s plans to improve young users’ experience, which Head of Instagram Adam Mosseri previously mentioned on Twitter.

“Young people indicated that when they saw uplifting content or inspiring content, that could move them away from some other issues that they’re struggling with,” Davis said at the hearing. “So one of the things that we’re actually looking at is called ‘nudges,’ where we would actually nudge someone who we saw potentially rabbit holing down content towards more uplifting or inspiring content.”

In addition to a “nudges” feature, Davis said that the company is looking at a “take a break” feature, which would encourage users to stop looking at the app if they’ve been browsing certain content for too long. In 2018, Instagram introduced a “you’re all caught up” notice, which would appear when the user had scrolled through all posts from the last two days. This feature was introduced alongside “do not disturb” toggles, which helped users control when they wanted to receive notifications. These updates were part of “Time Well Spent” initiatives, designed to curb screen time and encourage healthier social media habits. But by 2020, the space beneath the “caught up” notice was turned into a feed of suggested posts and ads.

At the hearing, Massachusetts Senator Ed Markey (a social media star in his own right) announced that he would reintroduce legislation with Senator Blumenthal called the KIDS (Kids Internet Design and Safety) Act, which seeks to create new protections for online users under 16. The bill would prohibit platforms directed at children from leveraging follower and like counts, push alerts that encourage users to use the app more, auto-play settings, badges that award elevated levels of engagement, or any design feature that unfairly encourages a user (“due to their age or inexperience,” the bill specifies) to make purchases, submit content, or spend more time on a platform.

Previously introduced in March 2020, Facebook has known about the proposed legislation for almost a year and a half.

“I think our company has made its position really well known that we believe it’s time for the update of internet regulations, and we’d be happy to talk to and work with you on that,” Davis told Senator Markey.

But when Markey directly asked if Facebook would support the KIDS Act, Davis said that Facebook would follow up on the question later.

“Well, your company has had this legislation in your possession for months. And you’re testifying here today before the committee that would have to pass this legislation,” said Senator Markey. “I just feel that delay and obfuscation is the legislative strategy of Facebook, especially since Facebook has spent billions of dollars on a marketing campaign calling on Congress to pass internet regulations, and Facebook purports to be committed to children’s well being.”

At the end of the hearing, Davis said that she hopes the Senate will have hearings with companies that have kid-focused apps, like TikTok and YouTube. Currently, Facebook has a Messenger Kids app, but the company but its Instagram for kids product on hold in light of WSJ’s reporting. Though WSJ has published six leaked documents from Facebook, the company itself only annotated and re-published two of them.

TikTok’s new ad products invite users to interact with taps, swipes, likes and more

TikTok this week presented its new plan to ramp up advertiser investment in its video platform with the expansion of e-commerce, a new promise of “brand safety,” and the launch of several new and interactive ad formats, ranging from clickable stickers to choose-your-own-adventure ads to “super likes” and more. The additions, the company says, will make TikTok’s advertising more interactive and creative, much like the TikTok experience itself.

The company demonstrated its new additions at an online conference aimed at the advertising and marketing community on Tuesday.

Here, TikTok also announced several new e-commerce partnerships beyond its pilot partner Shopify to make online shopping a more native experience, with the ability for users to go from product discovery to checkout without leaving the app. It noted it’s making live shopping available to brands and offered several ad products made just for e-commerce brands. And, in some markets, TikTok is offering to take on the responsibilities of shipping and fulfillment, as well.

Meanwhile, TikTok’s broader ads business is getting a jolt with the launch of several new products designed with the goal of making TikTok better differentiated from other social media rivals.

On this front, TikTok introduced a new product called “instant page,” which is a quick-loading landing page that the company claims will load 11 times faster than a typical mobile website. This allows a user who clicks through on an ad to be immediately taken to a page where they’ll be able to see more information from the brand, watch more videos, and swipe through other content — all without leaving the TikTok app. This could compete with Instagram’s Link Sticker which recently stepped in to replace the swipe-up gesture in its app.

Image Credits: TikTok (instant page)

Another new product, “pop out showcase,” aims to make engaging with ads a more interactive experience.

With “pop out showcase,” advertisers can access a library of stickers and images that can be superimposed on top of their TikTok videos to illustrate the products they’re demonstrating or other key story elements. For instance, a beauty brand may add a sticker of a makeup brush to its content that, when tapped, takes the viewer to a page where they can buy a makeup brush from the brand.

Image Credits: TikTok (pop out showcase)

Other new formats encourage TikTok users to tap on the ads themselves.

One of these is TikTok’s “super like.” This offers a way to make “liking” a video a more engaging experience. When users tap the like (heart) button on a TikTok video, the Super Like can display different types of icons that appear on viewers’ screens. Users are also invited to visit a landing page where they can learn more about the brand’s product or service being featured.

Image Credits: TikTok (super like)

There are also gesture ads that will reveal rewards or other information to users who either slide or tap on videos. Like the “pop out showcase: and “super like,” these ads play to the familiarity that TikTok users — particularly its young Gen Z and millennial demographic — have with how to navigate their smartphones. It’s second nature for younger people to know to tap, swipe, and drag, and these ads offer some form of immediate gratification for doing so, whether that’s an explosion of icons or even a real-life reward.

Image Credits: TikTok (gesture ads)

The final new product is TikTok’s “storytime tool,” which encourages users to become a part of the brand’s storytelling experience. Some streaming services, like Hulu, have experimented with ads that ask the users to play along — but not quite to the extent of controlling the story. Instead of just watching a TikTok ad, this choose-your-own-adventure style format lets users tap to direct the action in the video to shape the narrative and personalize the outcome.

Image Credits: TikTok (storytime tool)

“All these solutions are a part of our goal to enable advertisers to create the most engaging ads in ways that taps into their creativity and fun that exists on the platform,” said Jaclyn Fitzpatrick, TikTok Product Strategist, Global Business Marketing, when introducing the new lineup.

Of course, performance and measurement capabilities are just as important to marketers as the ad creatives themselves. To address these concerns, the company touted its TikTok Ad Manager, editing suite, trends and insights, and other new tools for buying, scaling, and analyzing their campaigns. It launched a new buying type called Reach & Frequency, which allows advertisers to target a higher volume of users through extended reach, or get more impressions with the same number of users by opting into a higher frequency for their ad placements.

TikTok also made a commitment to brand safety — an issue that’s plagued YouTube in the past — with the launch of a proprietary brand safety inventory filter.

The solution leverages machine learning technology to classify a video’s risk based on the video’s content, text, audio, and more, so advertisers can make decisions about which kind of inventory they want to run adjacent to, the company explained. TikTok says the new filter is aligned with the Global Alliance for Responsible Media (GARM)’s industry framework and it partnered with Integrate Ad Science (IAS), Zefr, and OpenSlate to help it to ensure ads run next to brand-safe content.

The message to advertisers, clearly, is that TikTok should be considered not only because of its sizable audience — now 1 billion monthly actives, it says — but also because of its advertising toolset.

To date, marketers haven’t carved out as much of their spending for TikTok compared with other major platforms, like Facebook and Instagram. But TikTok parent company, ByteDance, has been making inroads in the global ad market, with annual revenue across its apps more than doubling in 2020 to reach $34.3 billion. In the U.S., TikTok was expected to bring in $500 million in 2020, up from $200-$300 million in the year prior, according to a report by The Information. (Some of that is from in-app purchases, of course.)

As TikTok has scaled its ad business, its ad prices have been steadily increasing, too. Bloomberg noted this summer it was jacking up home page takeover ads, its most valuable real estate, to more than $2 million on top days — like holidays. Reuters also noted that TikTok saw a 500% increase in the number of advertisers that were running campaigns in the U.S. from the start of 2020 to the end, though ad sales were still small compared with other major platforms.

Image Credits: eMarketer

That continues to be the case in 2021, as TikTok’s U.S. ad revenues are dwarfed by other social brands. In fact, TikTok was not even broken out in eMarketer’s recent tabulation of U.S. ad revenues, where it’s instead lumped into an “Other” category with other, smaller social networks which, combined, are expected to reach $1.3 billion in 2021.

Facebook Messenger releases cross-app group chats, further integrating with Instagram

Facebook Messenger is releasing a bundle of products this morning — most notably, including cross-app group chats. Last year, the company introduced cross-app messaging between Messenger and Instagram, but now, users will be able to start group chats among Instagram and Messenger contacts.

Other additions today include polls in Instagram DMs, building off of the poll feature that exists in Messenger. Messenger is also adding a group typing feature to group DMs — regardless of which app you’re chatting on — to help users see when their friends are typing at the same time. Plus, as Instagram embraces video content, users will now be able to use Messenger’s existing Watch Together feature to view Instagram posts like Reels and IGTV videos at the same time.

Image Credits: Messenger

These updates come just hours before the company is set to testify before the Senate about the mental health harms of Instagram and Facebook. But these additions have more to do with a separate government probe into Facebook’s operations. Facebook is facing a lawsuit from the Federal Trade Commission, alleging that Facebook is a monopoly and must be broken up. But as individual products under the Facebook umbrella rely on each other more and more, it could allow the company to argue that these apps are dependent on one another and cannot be separated. Last month, as Facebook Messenger celebrated its 10th anniversary, a Facebook spokesperson told TechCrunch that the company is thinking of Messenger as a “connective tissue regardless of the surface.”

Image Credits: Messenger

Aside from updates that further integrate Facebook and Instagram, Messenger threw in a few fun ones for those of us who love customization and fear Mercury retrograde. Now, there’s a cottagecore chat theme, as well as an astrology-themed suite of chat themes, stickers, and Instagram AR filters. Because what do the teens love more than cottagecore and star charts?

Seeking to respin Instagram’s toxicity for teens, Facebook publishes annotated slide decks

Facebook has quietly published internal research that was earlier obtained by the Wall Street Journal — and reported as evidence the tech giant knew about Instagram’s toxic impact on teenaged girls’ mental health.

The two slide decks can be found here and here.

The tech giant also said it provided the material to Congress earlier today.

However Facebook hasn’t simply released the slides — it has added its own running commentary which seeks to downplay the significance of the internal research following days of press commentary couching the Instagram teen girls’ mental health revelations as Facebook’s ‘Big Tobacco’ moment.

Last week the WSJ reported on internal documents its journalists had obtained, including slides from a presentation in which Facebook appeared to acknowledge that the service makes body image issues worse for one in three teen girls.

The tech giant’s crisis PR machine  swung into action — with a rebuttal blog post published on Sunday.

In a further addition now the tech giant has put two internal research slide decks online which appear to form at least a part of the WSJ’s source material. The reason it has taken the company days to publish this material appears to be that its crisis PR team was busy figuring out how best to reframe the contents.

The material has been published with some light redactions (removing the names of the researchers involved, for example) — but also with extensive ‘annotations’ in which Facebook can be seen attempting to reframe the significance of the research, saying it was part of wider, ongoing work to “ensure that our platform is having the most positive impact possible”.

It also tries to downplay the significant of specific negative observations — suggesting, for example, that the sample size of teens who had reported problems was very small.

“The methodology is not fit to provide statistical estimates for the correlation between Instagram and mental health or to evaluate causal claims between social media and health/well-being,” Facebook writes in an introduction annotation on one of the slide decks. Aka ‘nothing to see here’.

Later on, commenting on a slide entitled “mental health findings” (which is subtitled: “Deep dive into the Reach, Intensity, IG Impact, Expectation, Self Reported Usage and Support of mental health issues. Overall analysis and analysis split by age when relevant”), Facebook writes categorically that: “Nothing in this report is intended to reflect a clinical definition of mental health, a diagnosis of a mental health condition, or a grounding in academic and scientific literature.”

While on a slide that contains the striking observation that “Most wished Instagram had given them better control over what they saw”, Facebook nitpicks that the colors used by its researchers to shade the cells of the table which presents the data might have created a misleading interpretation — “because the different color shading represents very small difference within each row”. 

If the sight of Facebook publicly questioning the significance of internal work and quibbling with some of the decisions made by its own researchers seems unprepossessing, remember that the stakes of this particular crisis for the adtech giant are very high.

The WSJ’s reporting has already derailed a planned launch of a ‘tweens’ version of the photo sharing app.

While US lawmakers are also demanding answers.

More broadly, there are global moves put child protection at the center of digital regulations — such as the UK’s forthcoming Online Safety Act (while its Age Appropriate Design Code is already in force).

So there are — potentially — very serious ramifications for how Instagram will be able to operate in the future, certainly vis-a-vis children and teenagers, as regulations get drafted and passed.

Facebook’s plan to launch a version of Instagram for under 13s emerged earlier this year, also via investigative reporting — with Buzzfeed obtaining an internal memo which described “youth work” as a priority for Instagram.

But on Monday CEO Adam Mosseri said the company was “pausing” ‘Instagram kids’ to take more time to listen to the countless child safety experts screaming at it to stop in the name of all that is good and right (we paraphrase).

Whether the social media behemoth will voluntarily make that “pause” permanent looks doubtful — given how much effort it’s expending to try to reframe the significance of its own research.

Though regulators may ultimately step in and impose child safety guardrails.

Contrary to how the objectives have been framed, this research was designed to understand user perceptions and not to provide measures of prevalence, statistical estimates for the correlation between Instagram and mental health or to evaluate causal claims between Instagram and health/well-being,” Facebook writes in another reframing notation, before going on to “clarify” that the 30% figure (relating to teenaged girls who felt its platform made their body image issues worse) “only” applied to the “subset of survey takers who first reported experiencing an issue in the past 30 days and not all users or all teen girls”. 

So, basically, Facebook wants you to know that Instagram “only” makes mental health problems worse for fewer teenage girls than you might have thought.

(In another annotation it goes on to claim that “fewer than 150 teen girls spread across… six countries answered questions about their experience of body image and Instagram”. As if to say, that’s totally okay then.)

The tech giant’s wider spin with the annotated slides is an attempt to imply that its research work shows proactive ‘customer care’ in action — as it claims the research is part of conscious efforts to explore problems experienced by Instagram users so that it can “develop products and experience for support”, as it puts it.

Yeah we lol’d too.

After all, this is the company that was previously caught running experiments on unwitting users to see if it could manipulate their emotions.

In that case Facebook succeeded in nudging a bunch of users who it showed more negative news feeds to to post more negative things themselves. Oh and that was back in 2014! So you could say emotional manipulation is Facebook’s DNA… 

But fast forward to 2021 and Facebook wants you the public, and concerned parents everywhere, as well as US and global lawmakers who are now sharpening their pens to apply controls to social media not to worry about teenagers’ mental health — because it can figure out how best to push their buttons to make them feel better, or something.

Turns out, when you’re in the ad sales business, everything your product does is an A/B test against some poor unwitting ‘user’…  

Screengrab from one of Facebook’s annotated slide decks released in response to the WSJ’s reporting about teen Instagram users’ mental health issues (Screengrab: Natasha Lomas/TechCrunch.)

Gamitee becomes Joyned as it secures $4M for social shopping platform

Joyned, formerly known as Gamitee, announced Wednesday that it raised $4 million in seed funding to continue developing its e-commerce platform that puts merchants in the driver’s seat of social engagement.

CEO Jonathan Abraham explained that Gamitee means “joined” in Hebrew, but the Jerusalem-based SaaS company decided to spell it “joy” because it aims to “spark joy in its customers’ experiences.”

Leading the round is Arthur Stark, former president of Bed Bath & Beyond, Yair Goldfinger, founder of Dotomi and ICQ, and Rafael Ashkenazi, managing director and executive chairman at Hard Rock Digital.

“Arthur is a legend in retail, and he is helping us a lot in the U.S. market,” Abraham said. “Yari was the first to build a messaging app, and with Rafael we will penetrate the U.S. market and build our brand there.”

Rather than helping e-commerce companies do a better job advertising on social media, Joyned enables retailers to offer a collaborative shopping platform experience right from their websites without having to rely on the social media platforms, Abraham said. Now shoppers can stay on a retailer site and bring in friends to check out products with the click of a button.

Interestingly enough, Abraham came up with the idea for the company four years ago while planning his wedding. He had to pick out a suit to wear, and after appointing family members to help, his life became inundated with suit options and his computer had hundreds of tabs open. That’s when he had the idea for co-browsing and began developing the company with co-founder Michael Levinson.

Though co-browsing is not a new concept — Abraham said Netscape, Google and Zoom all attempted or did something similar to create collaboration on the web — Joyned is doing something more specific.

Using the company’s technology, a merchant can inject some Javascript into their website, essentially a plug-and-play for Shopify and other websites, and it will put a “shop with me” button on the website where the shopper can invite friends to a shared shopping cart, mood board and speak with the merchants.

“The essence of joy is to empower merchants to own their shopping experience and let people shop together,” he added. “Joyned puts the social part into online shopping and narrows the gap between online and offline.”

Using Joyned, retailers are able to lower customer acquisition costs, optimize conversion rates and build loyalty. On average, retailers can expect overall sales increases of between 6% and 15% after users invite friends to join them, while also experiencing up to 250% in retention rates and a 40% increase in traffic, according to Abraham.

The new capital will lay the foundation for Joyned’s large-scale U.S. expansion, where the company is already seeing impact. The company wants to build on its marketing team in Florida and add sales and support functions.

Over the last year, the company launched its platform and saw sales grow rapidly, close to $500,000 and is on target to hit $1 million in sales, Abraham said.

Looking forward, Joyned will be going after a Series A as it closes three or four major brands in the U.S. to begin using the platform.

“Today, social media marketing is making big companies exist, but merchants are dependent on it,” Abraham added. “Instead of having a blackbox of engagements, we are bringing a new perspective that gives merchants the ability to go into the black box, and that gives them a huge competitive advantage.”

Mark Cuban and Coinbase back Eternal, an NFT marketplace for trading Twitch streamer clips

The NFT world collectively seems to be trying to turn internet memories into one big game — with a lot of cash involved of course. The original “Doge” image sold for $4 million back in June, the original “Pepe” comic image sold for $1 million in April, in short, people are becoming meme millionaires. Buying and selling six-figure JPEGs is a weird phenomenon but in the end doesn’t do a ton to convince the average internet user that NFTs are worth caring about though.

Eternal wants to turn trading internet history into a game, but it’s focused on a very particular slice of the web — popular clips from game streamers. In a user interface that functions and feels very similar to NBA Top Shot, users can buy packs of serialized clips from Eternal’s network of game streamers they’ve partnered with. The marketplace is built by startup Zelos Gaming, helmed by co-founders Jeffrey Tong and Derek Chiang, which has pivoted from building out a sort of cross-platform battle pass (which we covered here last year) towards now embracing the wild world of NFTs with Eternal.

The startup is building up a pretty wide roster of crypto investment firms and personalities as its backers including Mark Cuban, Coinbase Ventures, Gary Vaynerchuk, Dapper Labs and Arrington Capital, who have invested $4.5 million in the startup in its latest funding round. The team was previously backed by Y Combinator.

It’s very much a Top Shot for X type platform at the moment — which is apparent in the site’s design — but the team has big ideas for how the platform evolved down the road. Unlike Top Shot, which was able to nab deals with the NBA and Players Association, there’s no overarching esports or Twitch equivalent, leaving Eternal destined for a fairly complicated weave of partnerships with streamers and streamer networks designed to ensure they don’t take their business elsewhere. The startup says they’re largely focused on popular streamers operating in the top 0.05% of Twitch.

Streamers can sell top clips, which are conveniently already tracked by platforms like Twitch, as well as videos from their social media, “immortalizing” the moments on the blockchain. The company hopes that by pairing up-and-coming streamers with more established personalities they can bring awareness to more creators and help build a network of users that “own a piece” of them and have a vested interest in their success.

Image: Eternal

“I think Top Shot is a great model but it works way better for creators because it gives creators a brand new way to monetize,” CEO Jeffrey Tong tells TechCrunch.

Building a closer relationship between fans and creators has shown early promise as an exciting nuance of the NFT world as investors showcase their investments pumping up creators in the process, what’s less clear is how this looks on a smaller scale when users have tens or hundreds of dollars of investment in a creator versus thousands or millions.

A big selling point of the platform is that it’s built on Dapper Labs’ Flow, a consumer app-friendly blockchain which cuts back on complexity (and a bit of decentralization) in favor of building an onboarding flow users actually make it through. Living outside the Ethereum ecosystem and trading in USD means moving further away from a sizable network of crypto rich NFT acolytes, but it also means approaching what is potentially a much larger consumer audience. The company wants Eternal to end up on more blockchains down the road by next year, though cross-chain maneuverings seem to get tricky pretty quickly today.

Flow has a pretty low-key suite of active marketplaces on its chain at the moment, but Eternal has shown early momentum. According to Cryptoslam, the marketplace has done about $300k in transactions this summer.