Morgan Stanley’s Internet Trends report - March 2008

Mary Meeker, someone I very much respect the opinion of (not to mention Morgan Stanley) has released their new deck for Spring, 2008. It has a great slide show. I'm including it here. Its long, but some of the slides are very revealing about trends on the internet and where it all may be headed.

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Invisible advertising is coming to a web page near you.

So very connected we are becoming on the web by joining social networks, communities, groups, boards, IM clients (like the infectious 'twitter') and other software services that our personal data is being spread to more databases and sites than ever before. This information that we give up each time when we register for one of these services was thought to be JUST info, is really about some VERY personal data mining of each individual, which in the end is not a bad thing.

This data mining will make advertising become invisible over time, which is what we really want anyway. Advertising that is directly targeted to each of us becomes just information. The ad becomes 'invisible'.

We complain about ads and commercials, but won't when they don't appear like ads and commercials. The only way TV could do this for us is with humor. See a really clever and funny ad on TV and you don't mind. The web can do this with data. The more data it collects on what we read, view, places we travel to, products we purchase and media we watch, the easier it becomes to tailor advertisements personally.


I must have signed up for somewhere between 20-40 or maybe even more, different web services over the last few years. Some have faded away, some still exist, some I don't use anymore and some I use all the time. For each of these, I have had to place the same information into their registrations fields many, many times. When I don't use the service anymore, sometimes I just don't visit the site and sometimes I go back and try to delete my account. More often than not, I can close the account, but all of my personal data still lives in that sites database.

We are moving towards being allowed to 'own' our data. To be in control of where is gets sent to and when it doesn't get sent. Change something about my personal details, habits, likes, etc. and it changes across all 'services' I use (or ones I can choose to change). This issue of data 'control' will allow advertisers to reach me in a more personal direct way. Ultimately making it simply sending me or exposing me to their information - or something I really might find useful.

VRM, or Vendor Relationship Management is one of the new web 3.0 tools

The core of VRM (the opposite of CRM, customer relationship management) is about equipping individuals with tools of independence and engagement. It is, indeed, paradigm inversion. The idea is to equip customers with tools of both independence and engagement. That is, independence from sellers and better ways of engaging with sellers. A badly needed tool-set for the next gen web 3.0.

It will take a while for our society to re-balance - and even invert some paradigms - given the fact that we as individuals are now computerized too. It used to be ONLY large companies were 'computerized'.

So why is this needed? Because it will empower the masses on the web to engage directly with many, many more people and business's than before. Its a power tool for the 'edge' economy. It will provide an 'in-check' mechanism to help prevent deception and general inconsistencies throughout the web. And when a common set of rules emerge, everyone will know how to play and what's expected of them.

For example: copyrighted works and piracy

'VRM could involve agreements made on an individual basis — ones that could involve actual relationships between copyright holders and their customers. For example, if I buy an open (non-DRM’d) copy of an album by Jon Anderson (my favorite classic rock singer from the band, Yes), it might involve letting him know who I am, what I listen to, the fact that I really enjoy his music, my commitment not to duplicate it beyond my own personal use, and some other possible options: including re-distributing it for pay that would get us both portion of the net revenue. The options are wide open. What matters is that there would be a relationship based on mutual interest, trust and control. More than what we have now, an unconnected interested consumer. Make this a bit more personal and you might have MUCH more cooperation, less piracy.

As important as Data Portability will be, this holds a close second. Next: Why is Data Portability so important and how can it effect you?

Person Jon Anderson

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