Spark Networks SE closes its $258M acquisition of dating brand Zoosk

Berlin-based Spark Networks, the owner of niche dating app brands like Christian Mingle, Jdate, LDSsingles, Silver Singles, Jswipe, and others, today announced it has acquired Match.com competitor Zoosk for a combination of cash and stock. The deal values Zoosk at approximately $258 million.

Spark says it will issue 12,980,000 American Depositary Shares (ADS) to former Zoosk shareholders valued at $153 million based on the closing price of Spark ADSs of $11.78 on June 28, 2019. The deal also provides for cash consideration of $105 million, subject to adjustment, which will be funded by a new $125 million senior secured credit facility, the company says in a release.

zoosk

Jeronimo Folgueira (right), CEO of Spark Networks, confirms the acquisition with Steven McArthur (left), outgoing CEO of Zoosk, Inc.

Plans for the deal were previously announced.

Following the closing of the merger, Spark has 2,601,037 ordinary shares issued and outstanding underlying 26,010,365 ADSs, with former Zoosk shareholders collectively owning 49.9% of the combined company.

The Zoosk app, available in over 80 countries, is a free download but charges users who want to send messages and chat with other subscribers, similar to Match.

Zoosk has for a long time struggled to compete against Match Group and its top-ranking dating apps in the U.S., led by Tinder. A few years ago, the company laid off a third of its staff and even had to call off its IPO, as Tinder decimated its business.

Today, it lists itself in the App Store’s “Social Networking” category instead of “Lifestyle,” where Tinder, Bumble, Hinge, and others rank, in an effort to gain more visibility.

According to data from Sensor Tower, Zoosk has generated worldwide in-app revenue of $250 million and has seen 38 million downloads since January 2014. Half of those downloads (19M) are from the U.S., which also accounts for $165 million (66%) of the revenue.

In Q1 2019, Zoosk revenue was flat at $13 million, the firm also says. Tinder revenue, by comparison, grew 43%. And in Match Group’s latest earnings, it said its total quarterly revenue grew 14% year-over-year to $465 million.

Similarly, Spark Networks has also fought to gain footing as Match Group became an ever-larger force in the online dating market over the years. However, in the last year, the company saw its revenue grow 22%. But it still operates at a loss.

As a result of the deal, Spark says its global monthly paying subscribers will increase to over 1 million. It also says it expects to achieve over $50 million of Adjusted EBITDA in 2020.

“Today’s closing represents a remarkable milestone in Spark’s continued evolution. Four years ago, we were a small German startup with no presence in North America. Our efforts over the last few years have created an NYSE-listed business with over $300 million in total revenue that is also the second largest player in North America. We are extremely proud of the company we have built, and are also excited by the future potential of our new portfolio,” said Jeronimo Folgueira, CEO of Spark, in a statement.

Zoosk’s current CEO Steven McArthur is departing Zoosk following the deal, but will join Spark’s Board of Directors.

“I have been very impressed by Jeronimo and his team during this process and I am very confident in their ability to execute the integration plan we prepared together, and make the new combined company even more successful, driving substantial value creation for all shareholders over the next 12 to 18 months,” said McArthur.

Spark Networks SE was formed by the merger of Affinitas GmbH and Spark Networks Inc. in 2017. It’s listed on the NYSE under “LOV,” and is headquartered in Berlin, with offices in New York, Utah, and San Francisco.

Its full list of dating app brands tends to be more faith-focused or targets particular niches. These apps include EliteSingles, Jdate, Christian Mingle, eDarling, JSwipe, SilverSingles, Attractive World, eDarling, LDSsingles, Adventist Singles, Crosspaths, and Weekly Dating Insider, in addition to now Zoosk.

In terms of other exec changes, Spark CFO Rob O’Hare is relocating to Zoosk’s HQ in San Francisco to smooth the transition. Herbert Sablotny, Spark’s former Chief Strategy Officer, will also rejoin the company to assist in the Zoosk integration efforts, having previously done the same with the integrations of Attractive World and Spark Networks, Inc. Other key members of the Zoosk team are staying on as well, for the time being.

Piper Jaffray & Co. acted as the financial advisor to Zoosk on the proposed transaction and Fenwick & West LLP served as legal counsel to Zoosk. Piper Jaffray & Co. also arranged for staple financing for Zoosk. And Morrison & Foerster LLP served as legal counsel to Spark.

Match Group and Spark Networks SE aren’t the only dating app businesses that have taken a portfolio approach. Bumble’s owner in June said it was revamping its structure with the creation of Magic Lab, a holding company that includes its dating apps Bumble, Badoo, Chappy, and Lumen. It also plans to boost spending to $100 million to better compete with Match Group and soon, Facebook Dating.

 

Facebook civil rights audit says white supremacy policy is ‘too narrow’

Facebook’s second progress report pertaining to the civil rights audit conducted by former ACLU Washington Director Laura Murphy is here. Over the last six months, Facebook has made changes around enforcing against hate, fighting discrimination in ads and protecting against misinformation and suppression in the upcoming U.S. presidential election and 2020 Census, according to the progress report.

While Facebook has made changes in some of these areas — Facebook banned white supremacy in March — auditors say Facebook’s policy is still “too narrow.” That’s because it solely prohibits explicit praise, support or representation of the terms “white nationalism” or “white separatism,” but does not technically prohibit references to those terms and ideologies.

“The narrow scope of the policy leaves up content that expressly espouses white nationalist ideology without using the term ‘white nationalist,'” the report states. “As a result, content that would cause the same harm is permitted to remain on the platform.”

Therefore, the audit team recommends Facebook expand its policy to prohibit content that “expressly praises, supports, or represents white nationalist ideology” even if the content does not explicitly use the terms “white nationalism” or “white separatism.”

In Facebook COO Sheryl Sandberg’s note today, she acknowledges the recommendation.

“We’re addressing this by identifying hate slogans and symbols connected to white nationalism and white separatism to better enforce our policy,” she wrote.

Sandberg also noted how Facebook recently updated its policies to ensure people don’t use Facebook to organize events intended to intimidate or harass people.

“Getting our policies right is just one part of the solution,” Sandberg said. “We also need to get better at enforcement — both in taking down and leaving up the right content.”

Sandberg is referring to the fact that Facebook has sometimes wrongfully taken down content meant to draw attention to racism and discrimination.

As Murphy noted in her report, “the definition and policing of hate speech and harassment on the platform has long been an area of concern. The civil rights community also claims that a lack of civil rights expertise informing content decisions leads to vastly different outcomes for users from marginalized communities.”

Facebook now says it’s taking steps to address this. One step, Sandberg says, is to have some content reviewers focus just on hate speech.

“We believe allowing reviewers to specialize only in hate speech could help them further build the expertise that may lead to increased accuracy over time,” Sandberg wrote.

Additionally, Sandberg has formalized a civil rights task force at Facebook. This task force will live on beyond the audit in order to continue building more awareness around civil rights issues on Facebook.

And ahead of the upcoming presidential election, Facebook says it is working on new protections against voter interference and is adding a policy that prohibits “don’t vote” ads. That policy is expected to go into effect before the 2019 gubernatorial election. On the census side, Facebook is working on an interference policy that it expects to launch this fall.

In March of this year, Facebook settled with the ACLU and others pertaining to discriminatory job ads. Just days later,  the U.S. Department of Housing and Urban Development said Facebook was in violation of the Fair Housing Act through its ad-targeting tools. This case is still pending.

In the meantime, Facebook has since begun working on a new system so that advertisers running US housing, employment and credit ads will no longer be able to target by age, gender, race, religion or zip code.

When this system launches, there will be a limited number of options by which to target. Additionally, Facebook won’t make any new terms available without first running it by the ACLU and the other plaintiffs from the March 2019 settlement.

In order to implement this new system, Facebook will ask advertisers to explicitly note if the ad involves housing, employment or credit opportunities. If it does, advertisers will be directed to the new system. Facebook is also putting tools in place to identify ads that advertisers failed to flag.

Additionally, Facebook is working on a tool that will let users search active housing ads by the advertiser and by location, whether or not they are in the target audience. This is expected to be available by the end of this year. Down the road, Facebook plans to make similar tools available for employment and credit opportunities.

“Given how critical access to housing, employment and credit opportunities are, this could have a significant impact on people’s lives,” Murphy wrote in her progress report.

This audit began in May 2018 following one scandal after the other pertaining to misinformation, and Facebook’s policies and people of color on its platform. The first six months entailed Murphy conducting interviews with civil rights organizations to determine their concerns. This last six months largely focused on content moderation and enforcement. The civil rights audit is far from over, and Facebook says we can expect to see the next update early next year.

Facebook SDK bug crashes apps like Timehop

A malfunction in Facebook’s Software Development Kit that lets apps add Login With Facebook, sharing, and other features is causing apps that integrate it like Timehop to repeatedly crash. TechCrunch received a tip that developers were getting tons of user complaints and crash reports starting around noon pacific today due to a problem with the Facebook for iOS SDK. TechCrunch’s testing verified that products like Timehop, Joytunes’ Simply Piano, Momento GIFs, and more keep breaking when users access Facebook features or in some cases just open the app.

This is a big issue for Facebook because it relies on these apps to drive user lock-in. If people use Facebook to log into or share from other apps, they’re less likely to delete their account. But if the Facebook developer platform screws up like this morning, developers could instead highlight sharing via Twitter or SMS, and divert ad buys to other platforms. Most problematically, the bug could push developers to other login platforms like Google’s or Apple’s new Sign In With Apple.

Facebook SDK Bug

The bug was initially submitted to Facebook’s developer forums by Ryan Layne. These crashes thwart normal usage of other apps, costing their developers ad views and in-app purchases, or leading their users to uninstall or abandon them. TechCrunch contacted Facebook requesting information on the cause of the bug, a timeline for a fix, and what developers should do in the meantime. The company’s PR team is investigating, a representative tells me.

Timehop Facebook SDK Crash

Hitting the Connect Facebook button on Timehop causes the app to crash. Developers in Facebook’s bug reporting forum pile on saying their apps are breaking

The situation highlights the increasing centralization of the web as more and more companies depend on a small number of mobile, hosting, and social platforms. Earlier this month, a Google Cloud outage knocked down Snapchat and Discord. While these tools make it simpler to start a company or launch an app without having to build everything in-house, they introduce platform risk. Beyond technical outages, there’s also the concern that a platform could use its insights to copy its clients, or block them if they compete with the gatekeeper too vigorously as Facebook has done to chat and social media apps in the past.

Apple tries out the ‘choose-your-own adventure’ Twitter thread format that recently went viral

It looks like choose-your-own-adventure Twitter games won’t be a one-hit wonder, now that Apple’s social team has adopted the format. A new tweet from the @AppleTV Twitter account today helps users find a movie to watch by having them click through a series of Twitter threads. However, their effort (so far at least) pales compared with the original viral sensation — a Twitter choose-your-own-adventure style game that blew up earlier this month, where Twitter users try to not get fired as Beyoncé’s new assistant.

If you haven’t seen this masterpiece of Twitter handiwork, give yourself a break this Friday and go try it. It’s great fun.

The game is played by presenting you with a multiple choice question. You then click on your answer from among the Twitter replies presented by the original poster.

For example, you start your day by ordering Queen Bey her breakfast. You’re asked to choose between ordering a five-star breakfast or granola and yogurt. If you choose the former (spoiler alert!), you’re fired. If you click the right answer, you move on to the next task.

Further questions take you to new threads where you choose things like who Beyoncé should FaceTime, what activity you suggest while she waits for hair and makeup, what song to play for her when she asks for music, when she should get dressed for the event and where, whether you should photobomb her on the red carpet to fix her dress, where she sits at an event, and so on.

The game isn’t always simple A/B choices, either. The answers lead you down different paths. Your choice may not immediately result in being fired, but still could later on. For instance, if you send Beyoncé swimming, there’s no way to save your job when the next set of choices comes.

According to a TIME profile, the idea for the thread came from 19-year-old student Landon Rivera, who lives in L.A.

The thread, now which now has over a quarter million Twitter likes, was noticed by celebs like Chrissy Teigen and Questlove, the report also noted.

After the Beyoncé game blew up into a viral hit, the creator started new threads about being Cardi B’s bodyguard and getting away with murder. These haven’t yet taken off to the extent the original Beyoncé thread did, which today stands at over 250K Likes on the thread placeholder tweet, and 97,300 retweets.

While it’s interesting that Apple’s social media team has now copycatted the idea, their choose-your-own-adventure thread falls short.

Actually, really short.

In fact, it’s not much of an adventure at all.

Instead, the movie suggestion thread doesn’t go much further than letting your pick between two movie watching scenarios, then directs you into a genre of your choosing…then, it dead ends with a movie suggestion.

This overlooks the reasons the Beyoncé game went viral in the first place: because it was lengthy, complex, multi-branched, and funny. You could get down several threads deep into the thing and then get booted out and lose.

The questions themselves also prompted commentary from those who knew Beyoncé actual habits (or at least, thought they did.)

Social media teams looking to replicate this formula for their own success will need to do more than create a handful of quick-to-end threads with little payoff. Either invest the serious effort in designing a clever branching narrative or just tweet as usual.

 

 

 

How startups can make influencer marketing work on a budget

Influencer Marketing has ballooned into a $25 billion industry, yet many marketing managers are left confused by this, because for them, it’s really not delivering the results to justify the hype.

Here’s the thing. Influencer marketing is not a one-size-fits-all marketing strategy such as Facebook or Adwords advertising. Each company needs to take a closer look at what influencer marketing can achieve, where it falls down, and how you can do a better job with this latest form of marketing that delivers, on average, $6.50 of value for every $1 spent.

The analysis below relies on clients and case studies from our experience at OpenSponsorship.com (my company) which is the largest marketplace connecting brands with over 5500 professional athletes for marketing campaigns.

With over 3500 deals to date across clients as big as Vitamin Shoppe and Anheuser Busch, established players like Jabra and Project Repat, and new startups like Brazyn and Gutzy, we have seen a lot go wrong (who knew you could disable comments on a post!) and a lot go right (an unknown skiier’s $100 Instagram, posted right before the Winter Olympics, going viral after he won the Silver)!!

Thanks to our in-house data experts, integrations with IBM Watson, robust ROI tracking tools and 10 years+ of experience combining the learnings of sports sponsorship with influencer marketing, we have gained extensive insights into campaign strategies.

We will share our learnings about what criteria to consider when choosing the best influencer to work with, figuring out how much to pay the influencer, what rights to ask for in the deal, what terms and conditions are reasonable and how to track ROI for the deal.

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Table of Contents


Who is the right influencer? 

At OpenSponsorship, we match brands with athletes for marketing campaigns, with a view to further expand into other areas of media and entertainment such as music artists, comedians, actors. Even within the athlete world, there is the concept of micro-influencers such as yogis, triathletes, marathon runners, all the way to macro-influencers such as NFL Quarterbacks, starting NBA point guards and everything in between.

Our 3 recommendations for picking the right influencers are:

Italy stings Facebook with $1.1M fine for Cambridge Analytica data misuse

Italy’s data protection watchdog has issued Facebook with a €1 million (~$1.1M) fine for violations of local privacy law attached to the Cambridge Analytica data misuse scandal.

Last year it emerged that up to 87 million Facebook users had had their data siphoned out of the social media giant’s platform by an app developer working for the controversial (and now defunct) political data company, Cambridge Analytica.

The offences in question occurred prior to Europe’s tough new data protection framework, GDPR, coming into force — hence the relatively small size of the fine in this case, which has been calculated under Italy’s prior data protection regime. (Whereas fines under GDPR can scale as high as 4% of a company’s annual global turnover.)

We’ve reached out to Facebook for comment.

Last year the UK’s DPA similarly issued Facebook with a £500k penalty for the Cambridge Analytica breach, although Facebook is appealing.

The Italian regulator says 57 Italian Facebook users downloaded Dr Aleksandr Kogan‘s Thisisyourdigitallife quiz app, which was the app vehicle used to scoop up Facebook user data en masse — with a further 214,077 Italian users’ also having their personal information processed without their consent as a result of how the app could access data on each user’s Facebook friends.

In an earlier intervention in March, the Italian regulator challenged Facebook over the misuse of the data — and the company opted to pay a reduced amount of €52,000 in the hopes of settling the matter.

However the Italian DPA has decided that the scale of the violation of personal data and consent disqualifies the case for a reduced payment — so it has now issued Facebook with a €1M fine.

The sum takes into account, in addition to the size of the database, also the economic conditions of Facebook and the number of global and Italian users of the company,” it writes in a press release on its website [translated by Google Translate]. 

At the time of writing its full decision on the case was not available.

Late last year the Italian regulator fined Facebook €10M for misleading users over its sign in practices.

While, in 2017, it also slapped the company with a €3M penalty for a controversial decision to begin helping itself to WhatsApp users’ data — despite the latter’s prior claims that user data would never be shared with Facebook.

Going forward, where Facebook’s use (and potential misuse) of Europeans’ data is concerned, all eyes are on the Irish Data Protection Commission; aka its lead regulator in the region on account of the location of Facebook’s international HQ.

The Irish DPC has a full suite of open investigations into Facebook and Facebook-owned companies — covering major issues such as security breaches and questions over the legal basis it claims to process people’s data, among a number of other big tech related probes.

The watchdog has suggested decisions on some of this tech giant-related case-load could land this summer.

Facebook’s content oversight board plan is raising more questions than it answers

Facebook has produced a report summarizing feedback it’s taken in on its idea of establishing a content oversight board to help arbitrate on moderation decisions.

Aka the ‘supreme court of Facebook’ concept first discussed by founder Mark Zuckerberg last year, when he told Vox:

[O]ver the long term, what I’d really like to get to is an independent appeal. So maybe folks at Facebook make the first decision based on the community standards that are outlined, and then people can get a second opinion. You can imagine some sort of structure, almost like a Supreme Court, that is made up of independent folks who don’t work for Facebook, who ultimately make the final judgment call on what should be acceptable speech in a community that reflects the social norms and values of people all around the world.

Facebook has since suggested the oversight board will be up and running later this year. And has just wheeled out its global head of policy and spin for a European PR push to convince regional governments to give it room for self-regulation 2.0, rather than slapping it with broadcast-style regulations.

The latest report, which follows a draft charter unveiled in January, rounds up input fed to Facebook via six “in-depth” workshops and 22 roundtables convened by Facebook and held in locations of its choosing around the world.

In all, Facebook says the events were attended by 650+ people from 88 different countries — though it further qualifies that by saying it had “personal discussions” with more than 250 people and received more than 1,200 public consultation submissions.

“In each of these engagements, the questions outlined in the draft charter led to thoughtful discussions with global perspectives, pushing us to consider multiple angles for how this board could function and be designed,” Facebook writes.

It goes without saying that this input represents a minuscule fraction of the actual ‘population’ of Facebook’s eponymous platform, which now exceeds 2.2BN accounts (an unknown portion of which will be fake/duplicates), while its operations stretch to more than double the number of markets represented by individuals at the events.

The feedback exercise — as indeed the concept of the board itself — is inevitably an exercise in opinion abstraction. Which gives Facebook leeway to shape the output as it prefers. (And, indeed, the full report notes that “some found this public consultation ‘not nearly iterative enough, nor transparent enough, to provide any legitimacy’ to the process of creating the Board”.)

In a blog post providing its spin on the “global feedback and input”, Facebook culls three “general themes” it claims emerged from the various discussions and submissions — namely that: 

  • People want a board that exercises independent judgment — not judgment influenced by Facebook management, governments or third parties, writing: “The board will need a strong foundation for its decision-making, a set of higher-order principles — informed by free expression and international human rights law — that it can refer to when prioritizing values like safety and voice, privacy and equality”. Though the full report flags up the challenge of ensuring the sought for independence, and it’s not clear Facebook will be able to create a structure that can stand apart from its own company or indeed other lobbyists
  • How the board will select and hear cases, deliberate together, come to a decision and communicate its recommendations both to Facebook and the public are key considerations — though those vital details remain tbc. “In making its decisions, the board may need to consult experts with specific cultural knowledge, technical expertise and an understanding of content moderation,” Facebook suggests, implying the boundaries of the board are unlikely to be firmly fixed
  • People also want a board that’s “as diverse as the many people on Facebook and Instagram” — the problem being that’s clearly impossible, given the planet-spanning size of Facebook platforms. Another desire Facebook highlights is for the board to be able to encourage it to make “better, more transparent decisions”. The need for board decisions (and indeed decisions Facebook takes when setting up the board) to be transparent emerges as a major theme in the report. In terms of the board’s make-up, Facebook says it should comprise experts with different backgrounds, different disciplines, and different viewpoints — “who can all represent the interests of a global community”. Though there’s clearly going to be differing views on how or even whether that’s possible to achieve; and therefore questions over how a 40-odd member body, that will likely rarely sit in plenary, can plausibly act as an prism for Facebook’s user-base

The report is worth reading in full to get a sense of the broad spectrum of governance questions and conundrums Facebook is here wading into.

If, as it very much looks, this is a Facebook-configured exercise in blame spreading for the problems its platform hosts, the surface area for disagreement and dispute will clearly be massive — and from the company’s point of view that already looks like a win. Given how, since 2016, Facebook (and Zuckerberg) have been the conduit for so much public and political anger linked to the spreading and accelerating of harmful online content.

Differing opinions and will also provide cover for Facebook to justify starting “narrow”. Which it has said it will do with the board, aiming to have something up and running by the end of this year. But that just means it’ll be managing expectations of how little actual oversight will flow right from the very start.

The report also shows that Facebook’s claimed ‘listening ear’ for a “global perspective” has some very hard limits.

So while those involved in the consultation are reported to have repeatedly suggested the oversight board should not just be limited to content judgement — but should also be able to make binding decisions related to things like Facebook’s newsfeed algorithm or wider use of AI by the company — Facebook works to shut those suggestions down, underscoring the scope of the oversight will be limited to content.

“The subtitle of the Draft Charter — “An Oversight Board for Content Decisions” — made clear that this body would focus specifically on content. In this regard, Facebook has been relatively clear about the Board’s scope and remit,” it writes. “However, throughout the consultation period, interlocutors often proposed that the Board hear a wide range of controversial and emerging issues: newsfeed ranking, data privacy, issues of local law, artificial intelligence, advertising policies, and so on.”

It goes on to admit that “the question persisted: should the Board be restricted to content decisions only, without much real influence over policy?” — before picking a selection of responses that appear intended to fuzz the issue, allowing it to position itself as seeking a reasoned middle ground.

“In the end, balance will be needed; Facebook will need to resolve tensions between minimalist and maximalist visions of the Board,” it concludes. “Above all, it will have to demonstrate that the Oversight Board — as an enterprise worth doing — adds value, is relevant, and represents a step forward from content governance as it stands today.”

Sample cases the report suggests the board could review — as suggested by participants in Facebook’s consultation — include:

  • A user shared a list of men working in academia, who were accused of engaging in inappropriate behavior and/or abuse, including unwanted sexual advances;
  • A Page that commonly uses memes and other forms of satire shared posts that used discriminatory remarks to describe a particular demographic group in India;
  • A candidate for office made strong, disparaging remarks to an unknown passerby regarding their gender identity and livestreamed the interaction. Other users reported this due to safety concerns for the latter person;
  • A government official suggested that a local minority group needed to be cautious, comparing that group’s behavior to that of other groups that have faced genocide

So, again, it’s easy to see the kinds of controversies and indeed criticisms that individuals sitting on Facebook’s board will be opening themselves up to — whichever way their decisions fall.

A content review board that will inevitably remain linked to (if not also reimbursed via) the company that establishes it, and will not be granted powers to set wider Facebook policy — but will instead be tasked with facing the impossible of trying to please all of the Facebook users (and critics) all of the time — does certainly risk looking like Facebook’s stooge; a conduit for channeling dirty and political content problems that have the potential to go viral and threaten its continued ability to monetize the stuff that’s uploaded to its platforms.

Facebook’s preferred choice of phrase to describe its users — “global community” — is a tellingly flat one in this regard.

The company conspicuously avoids talk of communities, pluralinstead the closest we get here is a claim that its selective consultation exercise is “ensuring a global perspective”, as if a singular essence can somehow be distilled from a non-representative sample of human opinion — when in fact the stuff that flows across its platforms is quite the opposite; multitudes of perspectives from individuals and communities whose shared use of Facebook does not an emergent ‘global community’ make.

This is why Facebook has struggled to impose a single set of ‘community standards’ across a platform that spans so many contexts; a one-size-fits all approach very clearly doesn’t fit.

Yet it’s not at all clear how Facebook creating yet another layer of content review changes anything much for that challenge — unless the oversight body is mostly intended to act as a human shield for the company itself, putting a firewall between it and certain highly controversial content; aka Facebook’s supreme court of taking the blame on its behalf.

Just one of the difficult content moderation issues embedded in the businesses of sociotechnical, planet-spanning social media platform giants like Facebook — hate speech — defies a top-down ‘global’ fix.

As Evelyn Douek wrote last year vis-a-via hate speech on the Lawfare blog, after Zuckerberg had floated the idea of a governance structure for online speech: “Even if it were possible to draw clear jurisdictional lines and create robust rules for what constitutes hate speech in countries across the globe, this is only the beginning of the problem: within each jurisdiction, hate speech is deeply context-dependent… This context dependence presents a practically insuperable problem for a platform with over 2 billion users uploading vast amounts of material every second.”

A cynic would say Facebook knows it can’t fix planet-scale content moderation and still turn a profit. So it needs a way to distract attention and shift blame.

If it can get enough outsiders to buy into its oversight board — allowing it to pass off the oxymoron of “global governance”, via whatever self-styled structure it allows to emerge from these self-regulatory seeds — the company’s hope must be that the device also works as a bolster against political pressure.

Both over particular problem/controversial content, and also as a vehicle to shrink the space for governments to regulate Facebook.

In a video discussion also embedded in Facebook’s blog post — in which Zuckerberg couches the oversight board project as “a big experiment that we hope can pioneer a new model for the governance of speech on the Internet” — the Facebook founder also makes reference to calls he’s made for more regulation of the Internet. As he does so he immediately qualifies the statement by blending state regulation with industry self-regulation — saying the kind of regulation he’s asking for is “in some cases by democratic process, in other cases through independent industry process”.

So Zuckerberg is making a clear pitch to position Facebook as above the rule of nation state law — and setting up a “global governance” layer is the self-serving vehicle of choice for the company to try and overtake democracy.

Even if Facebook’s oversight board’s structure is so cunningly fashioned as to present to a rationally minded individual as, in some senses, ‘independent’ from Facebook, its entire being and function will remain dependent on Facebook’s continued existence.

Whereas if individual markets impose their own statutory regulations on Internet platforms, based on democratic and societal principles, Facebook will have no control over the rules they impose, direct or otherwise — with uncontrolled compliance costs falling on its business.

It’s easy to see which model sits most easily with Zuckerberg the businessman — a man who has also demonstrated he will not be held personally accountable for what happens on his platform.

Not when he’s asked by one (non-US) parliament, nor even by representatives from nine parliaments — all keen to discuss the societal fallouts of political disinformation and hate speech spread and accelerated on Facebook.

Turns out that’s not the kind of ‘global perspective’ Facebook wants to sell you.

Daily Crunch: Reddit quarantines Trump-focused community

It’s NEWSLETTER TIME get pumped! I know I am – it’s my first Daily Crunch in over a year. That’s right, your friendly neighborhood Anthony Ha is otherwise occupied today so I’m back to deliver this baby to you, devoted readers. And there’s news: Plenty o’ News.

1. Reddit puts r/The_Donald in a corner

Reddit has long had an uncomfortable relationship with one of its communities, a subreddit called r/The_Donald which focuses on all things related to the current U.S. President (still seems like a totally crazy thing to say).

quarantined

The so-called ‘front page of the Internet’ has finally had enough – or at least, the stage before truly ‘enough.’ It’s quarantined r/The_Donald, meaning that its content won’t ooze beyond the community into the rest of Reddit’s multi-community surfaces. So you have to choose to wallow in that filth, going in eyes wide open.

2. Apple makes a key chip talent hire

Apple loves using its own chips in its products, and keeps adding more chips all the time to handle things like on-device security and wireless connections with accessories. Now it’s brought on a leading ARM chip designer, which is obviously fuelling speculation that Apple could replace Intel with its own ARM-based processors to power next-generation Macs.

3. Live stream selling app expands to in-person sales

NTWRK is a weird hybrid of QVC and HQ Trivia, with people selling you stuff via live stream. The app is now expanding into physical events, which I guess will resemble flash sales mixed crossed with concerts?

4. Station F is launching a co-living space for startups

Station F is a gigantic co-working space in Paris that seemed like an unlikely proposition when it was first revealed. It got made and has been operating for years now, however. So maybe there’s a chance that its new ‘Flatmates’ co-living space, which can house up to 600 people in shared apartment arrangements, can do the same.

5. Amazon debuts counter pick-up at Rite Aid

Amazon is introducing a new counter pick-up service for packages at stores in the U.S, starting with 100 Rite Aid locations. Amazon has hollowed out the bodies of its retail hosts and is now parasitically using their corpses to propagate.

6. TripActions raises $250M and is now valued at $4B

That’s four unicorns stacked atop one another, if you’re counting. TripActions is an enterprise booking platform, which is big business, and if it’s at all an improvement over the various legacy ones I’ve used over the years, then it’s probably worth that high value assessment.

7. Volkswagen launches all-electric car sharing

A car sharing network made up of only electric vehicles?! Now there’s one from Volkswagen, called WeShare. It’s only live in Berlin as of today, and it probably isn’t destined for U.S. shores anytime soon, but it’s definitely a sign of the times.

Twitter tests out another desktop redesign with trends on the right, navigation on the left

It was in January that Twitter announced that it would be rolling out a new, simplified desktop redesign to its users. Hopefully, no one was holding their breath for the big official reveal. Six months later, we can confirm that Twitter is… still rolling out tests as it tinkers with a new look for its Twitter.com desktop interface.

In the latest version — which appeared to get teased earlier in the year but now appears to be getting rolled out to a wider number of people (see here, here, here, a tipster who sent us screenshots from Canada, and many others) — Twitter’s desktop appears as three columns, with trends shifted to the right column, and all of the menu and navigation items (plus a link to your profile) that had been at the top now listed on the left. The timeline stays front and center.

(An earlier version rolled out in January shifted the layout to two columns, although that was a limited rollout and not everyone saw it.)

A Twitter spokesperson confirmed to us that it is currently testing new experiences in the open that it is thinking of bringing to Twitter.com, for feedback with a small set of people. He didn’t provide a date for when it will roll out more broadly, “but stay tuned.”

twitter desktop redesign test

As you can see in the screenshots, the new look it’s testing out right now has three columns. As with other redesigns, the center continues to house the main timeline, with all the chops and changes affecting everything else around it.

In this case, all of the trending items have moved over to the right side, from their old place in the left column.

The Home, Explore, Notifications, Messages, Bookmarks, Lists and Profile are in a column, with “More” taking you to another set of options.

Screen Shot 2019 06 26 at 11.38.10 AM

Note that Mentions, which had already had a downgrade on iOS some months ago when a Moments creation option was removed from the iOS app due to lack of use, is relegated to this second menu. But for those of you who might wonder what the point is of Mentions, the spokesperson confirmed that it is not going away altogether.

Underneath that, you get direct links to promoting and advertising, analytics, Twitter’s Media Studio, Settings and privacy, the option to switch to “legacy Twitter” and Dark mode.

So far, the responses we’ve seen to the design have been on the less enthusiastic side.

‘”What’s happening?” is the question I want answered about this redesign…!,” wrote Chris Messina (a product designer who’s credited with creating the concept of the hashtag). “What is this? Google+?”

“Twitter, I do not like the new new new new new new new new new new new new UI you have on web. Please change back,” said Ken Yeung, an editor at Flipboard.

Twitter’s ongoing test mode — which has also been carried out on mobile, by way of its twttr prototyping app — is part of the company’s bigger effort to build a version of Twitter that works for everyone, or at least more people, more of the time.

One point of Twitter’s various experiments with its user interface is to try to address some of the issues the company has had with making the site easier to use for new users, and to also make it more user-friendly for those who are already there, whether it’s to make it easier to follow conversations (see Twitter’s experiments around threads), easier on the eye (dark mode introduced). easier to shut down trolls, and so on.

The reason for that is not just to be a good housekeeper: it’s to help Twitter grow.

Twitter has lately been on a bit of a high when it comes to its financials, last quarter flying past its estimates on both revenue and earnings per share. But monthly active users — a perennial issue for the company — continued to slide. (It’s a metric that Twitter will magic away by focusing instead on another one: monetizable daily active users, which were up.)

We’ll be on the lookout for more updates, but in the mean time, let us know what you think.

Facebook squeezes money from Instagram with new ads in Explore

Half of Instagram’s billion-plus users open its Explore tab each month to find fresh content and creators. Now the Facebook-owned app will do more to carry its weight by injecting ads into Instagram Explore for the first time. But rather than bombard users with marketing right on the Explore grid, Instagram will instead only show ads after users tap into a post and then start scrolling through similar imagery.

The move feels like a respectful way to monetize Explore without annoying users too much or breaking the high visual quality of the space. Instagram’s director of business product marketing Susan Bucker Rose tells me she believes the ads will feel natural because users already come to Explore “in the mindset of discovery. They want to be exposed to new accounts, people, and brands.”

Instagram Ads In Explore Tab

Instagram will test the ad slots itself at first to promote its ailing IGTV feature before they “launch to a handful of brands over the coming weeks” Rose says. That includes both big name corporations and smaller advertisers looking to drive conversions, video views, or reach. Instagram hopes to roll the ad format out broadly in the next few months.

Advertisers will buy the slots through the same Facebook ads manager and API they use to buy Instagram feed and Stories space. At first advertisers will have to opt in to placing their ads in Instagram Explore too, but eventually that will be the default with an opportunity to opt out.

Here’s how ads work in Instagram Explore. When you open the tab it will look the same as always with a scrollable grid of posts with high engagement that are personalized based on your interests. When you tap into a photo or video, you’ll first see that full-screen. But if you keep scrolling down, Instagram will show you a contextual feed of content similar to the original post where it will insert photo and video ads. And if you tap into one of the themed video channels and then keep scrolling after watching the clip to check out more videos in the same vein, you may see Instagram video ads.

Instagram describes the introduction as “slowly and thoughtfully” — which makes it sound like the volume of ads will ramp up over time.

Explore was first launched in 2012, some two years after Instagram itself, as a merger of the app’s search and “popular” tabs, with an aim of using algorithms that were informed by your existing interests to give you a new way to discover new people and themes to follow in the app beyond those you might pick up by way of you own social circles. It’s had a few revamps, such as the addition of topical channels and hashtags, and the addition of Stories, the format that has proven to be such a hit on Instagram itself. There won’t be any ads in Stories that recently started appearing in Explore.

But interestingly, through all of that, Instagram stayed hands-off when it came to advertising and Explore. The idea is that the content that each person sees in Explore is individualized, with algorithms detecting the kinds of things you like to show you photos, videos and subjects you might most want to see. Apparently Instagram didn’t want to deter browsing of this content.

On the other side of the coin, this has meant that up to now, individuals and brands have not been able to proactively request or pay to be in anyone’s specific Explore tab — although that doesn’t mean that people don’t game this situation (just Google “how to get on Instagram Explore” and you will find many how-to’s to show you the way).

Instagram Explore Ads

The move to bring ads into the Explore experience has some logic to it. Even before monetization made its way to Instagram in the form of feed advertising, shoppable links and sponsored content posted by influencers, brands and businesses had started using the platform to promote products and to connect with customers. Instagram says that today, 80 percent of its users follow at least one business on Instagram. Now instead of trying desperately to game the Explore algorithm, Instagram can just sell businesses space instead.

With Facebook’s News Feed usage in danger as attention shifts to Stories that it’s still learning to monetize, the company is leaning more on Instagram to keep revenue growing. But Instagram must be sure not to suffocate the golden goose with too many ads.