Thursday, February 26, 2015

Ad-Free Ello - Too Good to Be True?

This week we discussed the ins and outs of data mining. I learned it's a thriving industry. At its core, data mining creates a win-win scenario for both businesses and consumers. According to the McKinsey Global Institute, big data can increase profits in the retail sector by 60%. By providing personal data, consumers benefit from greater business efficiencies and new products. This is a result of the consumer making contact with some well-placed ad in a targeted mailer, email, search engine, or promoted post on a given network. So what happens when the ads don't exist?

You get Ello.


Ello is the social network that prides itself on providing an 'ethical' ad-free experience. This article details how they've gone so far as to become a Public Benefits Corporation, legally binding itself to never data mine, make money from selling ads or sell user data. It's all a commitment to "benefit society as a whole, not just make money from its investors." This 'society' it claims to benefit, however, is limited since users can't join without an invite.  (Links to an external site.)

After a year of operation, Ello is still in beta testing. Just last month they were putting final touches on sharing video and audio media (Vimeo, Soundcloud, Dailymotion, etc.) into their posts. Ironically enough, Ello's cannot entirely eradicate ads from their platform... specifically those embedded within YouTube videos. Ello polled their users to find out what their opinions were on the matter. 

You know what they found out? Their users didn't care about the occasional ad - they just wanted to share the content with their friends. I'll admit, I was surprised to read that since this blatantly goes against their no-ads policy (isn't that why the users are there in the first place?!). I just imagine social networks like Facebook, Twitter, or Instagram sticking their noses up and saying "I told you so" to Ello for thinking they could truly rid themselves of ads on their site. And who is to say that these other video and audio mediums will not also incorporate embedded ads somewhere down the line? 


Ello was thoughtful enough to further compromise by allowing users to manage their settings - providing the option to toggle off from embedded media - to protect themselves from even accidentally seeing an ad. Perhaps social giants can take a page out of Ello's book and add some of these settings to their own platforms, cutting down on the "noise" that bombards users' timelines. 


My thoughts on Ello's future? It may not be the next Facebook, but it'll work for those who use the platform as well as any other. Robert Wringham says, "(Ello is) superior to its competitor but failing to win popular traction...[but] a social network doesn't need approval from everyone to work." I certainly agree with that. 

4 comments:

  1. Hi there - I agree with your thinking: "It may not be the next Facebook, but it'll work for those who use the platform as well as any other." In my post I talk about some of the issues that Ello is facing. Although they are a niche network that has a strong positioning and a specific target audience, their engagement stats are low. Although this is something that some of the other networks (Twitter and Instagram) were facing in their early years, I believe this pattern is likely to continue for Ello. I would say that people that are on Ello don't engage with it every day. Also, not all of their friends are on Ello, which makes it less of an incentive to visit the site. In the long run, I think that Ello will survive, but stay a niche network.

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    1. Hi Aldona, thanks for commenting! I liked that you mentioned how Twitter and Instagram initially struggled gaining traction with users. Any new platform needs time to build a community. I think the founders were wanting to create buzz and have others idealize the ad-free experience. It's unfortunate they weren't prepared for the influx of signups or able to immediately draw people to keep coming back. It'll be interesting to see whether Ello remains a niche network once it becomes more accessible than its current invite-only setup.

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  2. Tiffany,
    It's interesting that users don't care about the occasional ad. If the goal for users is to share content with their friends, and ads aren't a big deal, then Ello is definitely in for an uphill battle. It's going to take a lot to get users to leave Facebook, the platform where all of their friends are and where the last decade of their lives has been documented.
    In my research, I learned that Ello appeals to a niche "fringe" user base who values anonymity enough to join the fledgling network, but I don't see how this small group will allow the company to sustain its app-based business model. It just doesn't seem there will be enough users to buy enough apps to make it work.

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    1. Hi Kim! I agree with you - I'm not really sure how they can plan to stay in business with so few engaging (never mind paying) users. But I think they are trying to prove themselves as committing to a greater service of protecting their users. As I mentioned to Aldona, it'll be interesting to see what happens as Ello becomes accessible to everyone and not just those with an invitation. Every platform initially starts out as a niche network (just as Facebook was only for college students), but in order to continue gaining traction with users, it will need to find a way to evolve with them.

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