Branding in the Age of Co-Creation [10]Post-Capitalist Branding: Co-Creating Value in the Web 3.0 Era
Hiroto Kobayashi
Infobahn Inc.
Keisuke Konishi
Dentsu Inc.
As discussions about the nature of post-capitalist societies gain traction and the internet society reaches a major turning point with developments like the enactment of the GDPR (General Data Protection Regulation) ( *1 ), what will become of branding and value co-creation? We spoke with Hiroto Kobayashi, CVO of Infobahn ( *2 ).
What are the trends in the digital society post-GDPR?
Konishi: I've long wanted to speak with you, Mr. Kobayashi. For this final installment of our "Branding in the Age of Co-Creation" series, I'd like to hear your thoughts on the theme of " Value Co-Creation in the Web 3.0 Era. "
The media outlet "WIRED," where you served as the first Japanese editor-in-chief in the 1990s, was a pioneer of the new internet era culture for our generation. It conveyed the fervor of the times and had a profound influence, changing the values of readers and society. How do you perceive the current state of the mature, evolved internet?
K obayashi: The U.S. Congress authorized commercial internet access in 1992, and WIRED launched in the U.S. in 1993. The following year, 1994, Japan's Ministry of Posts and Telecommunications (now the Ministry of Internal Affairs and Communications) approved commercial internet access here, and we launched the Japanese edition that same year. Back then, there was a palpable sense that the internet was the new frontier. However, it took time for many people to realize that.
During that dawn of the internet, many idealistic visions were frequently seen. For example, it was said that the world would be connected by peer-to-peer nodes ( ※4 ), ensuring various possibilities, diversity, and diverse values.
Nearly 30 years have passed since then, but that hasn't actually happened. Social media algorithms have instead promoted the fragmentation of values. And ultimately, the primary way internet businesses make money is still advertising, no matter how you slice it. I'm not saying advertising is inherently bad, but in terms of business model diversity, it hasn't changed much from the pre-internet era.
Personal data acquired through free services is monetized as a highly precise targeting advertising tool. This data-driven advertising model exploded with automation technology and AI. Consequently, platform giants like Facebook and Google, which monopolize personal data, gained immense power within the advertising model.
Konishi: The free, open, and voluntary culture of the internet that was once celebrated has, unnoticed, given rise to mechanisms for free-riding on user and publisher content and collecting personal information under the pretense of service use. This has ultimately created a dominant, oligopolistic, data-driven mega-industry. However, Europe put the brakes on this trend with the GDPR.
Reclaiming sovereignty over personal data is the "Me Too movement" of marketing.
K obayashi: It finally confronted the reality that personal data on digital platforms—conveniently exploited for platformers' advertising businesses—belongs to its rightful sovereign: the individual user. I see this, including GDPR and the ePrivacy Directive ( ※5 ), as a historic turning point in the US-led digital economy.
The "right to be forgotten" ( ※6 ) was also first raised as an issue in Europe. Breakthroughs in ideas and philosophy concerning humanity consistently originate from Europe.
Many Japanese companies and individuals still don't place much importance on this, viewing it as a phenomenon occurring in a distant country. Simply put, I believe what will likely happen next is a "Me Too movement" in marketing. If GDPR was imposed by the state, future movements could originate from individuals. In other words, long-standing business practices are now being questioned, and a foundation is emerging where each individual can voice their opinion. Marketers should recognize that the underlying concepts have changed.
Konishi: This isn't just about the marketing layer anymore; it's a fundamental shift in the rules governing digital society and human rights. GDPR is merely the beginning. As shown in the EU-led "Digital Single Market Strategy" (Figure 1), encompassing laws like the ePrivacy Directive and Digital Copyright Act, we're at a turning point where societal rules around digital information usage will undergo significant global transformation.
Kobayashi: Even within Japanese companies and government, I see arguments suggesting we should emulate China's approach to integrating personal data. This isn't about controlling citizens, but rather about analyzing commerce and behavioral history to advance marketing sophistication, and so on. I find this extremely frightening. Sociologist Zygmunt Bauman ( ※7 ) states in his work that privacy is the last domain where we can distinguish ourselves from others. I believe abandoning that is tantamount to abandoning oneself.
When this debate arises, a significant number of Japanese people say, "I have nothing to hide, so it doesn't matter if they eavesdrop." However, considering what the Stasi (secret police) did in East Berlin during the Cold War and how it restricted citizens' lives, entrusting your privacy to others could easily lead to abandoning political participation and free will.
What truly constitutes happiness for each individual? Is it having AI extract even email conversations for convenience (as Google does with Gmail), or having every word spoken to Alexa analyzed? This isn't a matter to be discussed secretly within platform companies; it's a question of society's overarching design philosophy.
Therefore, pushy marketing that unilaterally demands sacrificing privacy for convenience must also change. In reality, retargeting ads that repeatedly show you an ad you accidentally clicked on don't seem to offer much benefit to the advertisers either.
Konishi: I see. The internet has made connecting people easier, and for companies and brands, connecting with customers has become incredibly simple. Data is often called the currency or oil of the 21st century, but aren't we starting to see people as just data? I wonder if that's why advertising has changed and become so disliked.
Kobayashi: That's why I believe marketers must avoid becoming narrow-minded, confined only to their own business domains. In education for innovators, we emphasize cross-disciplinary understanding, listening to experts from various fields, and conducting fieldwork with users. I think the marketing industry has reached a point where it needs to consider brand value more multifacetedly.
Technology and profit-driven capitalism have gone too far, creating friction around the environment, society, and human rights. GDPR is one part of this movement. But how many Japanese marketers are aware of the global backlash? Examples include support for Elizabeth Warren's pledge to break up Facebook, and the emergence of cooperatives in response to high fees and irresponsibility by sharing service providers ( ). I believe we are at a critical juncture where we must consider value for society, culture, and humanity more deeply.
The reason I organize the annual Berlin TOA (Tech Open Air) tour is precisely to expose people to these European-born values and actions, hoping they will ask fundamental questions.
※Continued in Part 2.
※1 GDPR (General Data Protection Regulation): A comprehensive EU regulation enacted in 2018. Its purpose is to restore EU citizens' rights regarding their personal information. It establishes obligations for consent regarding data collection and usage purposes, pseudonymization, legal obligations for data breaches, the right to erasure, and data portability.
※2 Infobahn: Supports domestic and international companies with all aspects of digital marketing, including launching and operating web media. Known as a pioneer in content marketing and owned media. Since 2016, it has been the official Japanese partner of TOA (Tech Open Air), Berlin's largest tech conference.
※3 Web 3.0: A concept known as the decentralized web, characterized by open, individual-driven distributed data management, permissionless access, and device-free functionality. Utilizing blockchain technology, various services and platforms have emerged in recent years, attracting significant attention.
※4 Peer-to-Peer (Model): An architecture for communication between multiple computer terminals, meaning "terminals sharing information on equal footing." Terminals (or participants) connected to the network are often called "nodes."
※5 ePrivacy Directive: An EU regulation requiring private companies handling emails, cookies, messenger services, voice data communications, etc., to comply with EU citizens' privacy rights. It is currently under review with the aim of implementation within 2019.
※6 Right to be forgotten: The right to have personal information or defamatory content removed from the internet. Proposed by Europe as a new privacy protection right, it was codified as the "right to erasure" in the GDPR.
※7 Sigmund Bauman: A world-renowned sociologist of Polish origin (1925–2017). Professor Emeritus at the University of Leeds, UK, and the University of Warsaw. Author of numerous works including The Individualized Society (Seikyusha), Liquid Modernity: The Liquid Society (Otsuki Shoten), and Identity (Nihon Keizai Hyoronsha).
※8 TOA (Tech Open Air): An innovation-themed conference launched in 2012 and held annually in Berlin, Germany. Known for its social and cultural perspective extending beyond the technology industry, it features diverse speakers from various sectors worldwide.
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Author
Hiroto Kobayashi
Infobahn Inc.
Professor at Business Breakthrough University, Publisher of Business Insider Japan. Launched numerous media outlets across both print and web platforms, including "Wired" and "Gizmodo Japan." Founded Infobahn in 1998, a company supporting corporate digital communications. Established Unchained in 2018 to network innovators from business and government. He runs social implementation programs for blockchain, cross-disciplinary events, study groups, and overseas study tours. Major publications include "New Century Media Theory" (Basilico), "Why Do Media-Savvy Companies Thrive?" (Gijutsu Hyoronsha), and "The Web Is the Blueprint for the Future of the Real World" (PHP Shinsho). He also oversaw and contributed commentary to "Free," "Share," and "Public" (NHK Publishing).
Keisuke Konishi
Dentsu Inc.
In 2002, he was seconded to Prophet LLC in the United States, where he worked with David Aaker and others to develop brand strategies for global companies. Currently serving as Senior Solutions Director, he supports numerous clients with their brand and marketing strategies while advocating new brand and marketing strategy models for the digital age through extensive speaking engagements and publications. His authored works include Brand Community Strategy in the Social Era and translated works include Database Marketing for Customer Lifetime Value (both published by Diamond Inc.), among others.
