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May 30, 2017 | 3 min read

Economy

This Week in GAFAnomics, May 30th

“This week in GAFAnomics” features top articles from FABERNOVEL’s internal Slack discussions. Read here your weekly dose of curated news about the Network Economy.

Joachim Renaudin

Project Analyst


FABERNOVEL INNOVATE
GAFAnomics [ga-fɑː-nom-iks], noun: A modern, networked, economic system spurred by the eponymic GAFA (Google, Amazon, Facebook, Apple) but also encompassing Unicorns, Chinese tech giants and all other companies changing our lives through computer technology

 

#The week of May 30th

So what happened this week in GAFAnomics ?!

Facebook opens its neuroscience lab to understand how you behave online

Facebook will open next month a « Center for Marketing Science Innovation », a research lab whose goal is to help advertisers and brands understand how their content / ads are consumed online.

Facebook will leverage neuroscience technology and use your biometric data (eye tracking, heart rate, facial expressions…) to measure precisely how you react to content. In its quest for your attention, Facebook already knows how much time you spend on its platform, and what type of content you like. But knowing precisely how every piece of content makes you feel, what you like and what you hate can help Facebook become more attractive for advertisers. That’s the same reason why facebook introduced the « wow » « love » « sad » emojis last year. With neurosciences, that’s another level.

Google wants to know everything you purchase offline

Google already knows most of your online behavior, by analyzing your search history, your geolocation data (thanks to Maps, and google apps). Now it wants to know what you buy offline, in order to measure more precisely the impacts of its digital ads campaigns on overall sales (both online and offline).

Google announced last Tuesday a technology that collects and encrypts the credit card data from retailers, and compares it with the millions of credit cards information that it has registered from its users, and partner companies. Google is therefore able to bridge the gap between digital advertising and physical purchases. The company stated that privacy is one of its priority. Yet it seems that the more intrusive Google seems to capture about our online behaviour, the more secret it is about the use of this data gold mine.

Amazon killed bookstores, now it wants to reinvent them

Amazon opened its first NYC bookstore last week, it’s seventh in the US. A decade ago, Bookstore chain Borders filed for bankruptcy because of the competition of online pure players like Amazon. Today, Amazon is building bookstores, just like Borders. It may seem ironical, but Amazon’s physical store strategy is linked to its online strategy. Amazon uses its online data to recommend books, provides incentives to subscribe to Amazon Prime, and sells devices like kindle and Echo speakers, to lock you in the Amazon ecosystem.

Online, Amazon started by selling books and then expanded to everything else.

Is Amazon applying the same strategy offline? starting by opening bookstore and then everything else? Its grocery stores are suggests exactly this!

How late is Facebook on its mission to change the world?

During the Afternoon Program at the 366th Commencement, Mark Zuckerberg, Commencement Speaker, gives an address to the Annual Meeting of the Harvard Alumni Association at the Tercentenary Theatre. Kris Snibbe/Harvard Staff Photographer

Last week, Facebook’s founder Mark Zuckerberg gave a commencement address at Harvard University Graduation. The former Harvard student gave out a political vision of engagement and how the youth show tackle the world’s problems:

« Today I want to talk about three ways to create a world where everyone has a sense of purpose: by taking on big meaningful projects together, by redefining equality so everyone has the freedom to pursue purpose, and by building community across the world. ». Over the past two years Zuckerberg kept telling us that  Facebook’s vision is to build a global community and make the world a better place. Yet, beyond the speeches and the vision, Facebook’s current strategic focus seems to be on providing better advertising tools for for brand and capturing a higher share of your attention. Surely Facebook’s brand new neuroscience marketing research lab isn’t about building global community.

That’s all for this week, but see you next week for more news about GAFAnomics!

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