Previously: reinventing Gosplan

Doc Searls went to Tieman Tire in Bloomington, Indiana to get a tire fixed. Tieman Tire is clearly a post-surveillance business, far out ahead of the innovation curve.

surveillance myth: the most valuable parts of a business are based on personalization
reality: for almost all brands the most valuable parts are common to most or all customers (there aren’t some people who want leaky tires and some people who want the fixed kind)

surveillance myth: small businesses want social media advertising
reality: they wanted social networking and got switched over. Policy changes that limit surveillance will make independent businesses better off.

surveillance myth: it’s cheaper to acquire new customers with surveillance ads than to keep customers
reality: even if it ever was cheaper, customer acquisition costs on big platforms keep increasing (platforms are growth stocks, which means they have to grow faster than the economy as a whole, which means faster than the rate at which people buy stuff. So each attributable “conversion” has to keep costing more, and more and more of the economy has to go to the big surveillance ad platforms. Do the math, I don’t make the rules). Meanwhile customer acquisition and retention done in-house has the same kinds of learning curves as other skills, so will trend down over time as employee expertise increases.

surveillance myth: content is fungible, targeting algorithms are uniquely valuable
reality: expert brands such as King Arthur Baking and Tieman Tire have product and service knowledge that differentiates them, and that the company can keep and build on.

More: living with a bigger ad duopoly