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kelloggs-corn-flakes

Just to start: my father worked for a consumer products company, one that made biscuits and the like. Cookies, crackers, breakfast cereals, that sort of thing. And when I was a small boy, he used to say to me, in that cryptic way that dads often distribute nuggets of gnomic wisdom, things like: “See that cereal that you’re eating? Do you know that when mum pays for that, mostly what she’s paying for is the box.”

What he meant is that the cereal (or cookies or what have you) itself was incredibly inexpensive to manufacture. (Or, as his company always called it, to “bake.” They had bakeries, not factories.) Most of what it cost the company to bring their goods to market and to sell them on that market went into PR – the design of the packaging, the composition of the ad campaigns, and of course the price to place the advertisements where they appeared. When you buy the Corn Flakes, mostly you’re paying for the iconic rooster on the box, etc.

And so: today, from a Huck Magazine post, which seems to be inspired by Paul Mason’s new book, called “Five postcapitalist projects that offer a blueprint of a new world.”

When was the last time you saw an encyclopaedia? Upsetters Wikipedia have destroyed the old model of profiting from information by locking it away and charging people to access it. Wikipedia not only allows anyone to read for free, but its open editing has allowed it to grow faster than a commercial operation ever could and its advertising-free setup is believed to deprive the ad industry of $3 billion per year. See also: Wikileaks who are using open source principles to revolutionise access to information and hold governments to account.

There is something – and something I’ve long been preoccupied with on this blog – incredibly strange about one of the sentences in this paragraph. It is this one: Wikipedia not only allows anyone to read for free, but its open editing has allowed it to grow faster than a commercial operation ever could and its advertising-free setup is believed to deprive the ad industry of $3 billion per year. 

If you want to see the face of the new, or not really that new but at least burgeoning drive to establish new enclosures of the commons, it is visible here. There’s an odd mysticism, or dark metaphysics, that is at play. Wikipedia, in providing content without advertisements, is actually stealing away or squandering income that might have been derived, in private hands, from advertisements or sales. Which, in a certain sense  – a sense highly palpable if, say, you were the owner of the failing Encyclopaedia Britannica business – would seem pressingly true.

But of course it is not true, not in the least. No more than the fresh air that we breathe is stealing from the possible fresh air companies that might be formed to sell it to us, or the water we drink is stealing from corporations that, improbably, bottle the same stuff that comes out of our taps only to label it and sell it back to us for prices that are often higher than petrol. (Oh wait…)

But while (fortunately) the Britannica people didn’t, it seems, have the money to fight the market encroachment of the Wikipedians nor, perhaps, a leg to stand on argumentatively, this sort of attack on the state sector – in this case not as inefficient but as all too efficient – has become increasingly prevalent of late. The entire funding crisis at the BBC is grounded in attacks of this sort. There’s the kiss of death logic of the “If it’s popular, it’s beyond their remit to show it” argument. Strictly Come Dancing or Wimbledon could well be generating profits for Sky or someone else, and besides, they actually make people feel like the license fee isn’t such a bad deal after all.

But it’s not just the BBC that’s targeted by this “logic.” There’s a gathering storm regarding higher education “state monopolies” and the mystifying message that they’re blocking access to the “market” through their accreditation  cartels. It’s further absolutely clear that the animus against the NHS that exists amongst many Tories is equally based on anti-welfare-state ideas and the sense that there is big money to be made, that’s currently not being made, in the business of medicine. I’m sure if the cost of housing wasn’t so absurdly and eye-wateringly high, we’d be hearing attacks on the few vestiges of social housing left here and in America for inciting “market distortion.” And there are undoubtedly loads of bureaucratically subterranean aspects of the state sector, here and abroad, that are suffering from the same sorts of sorties.

Cynical ploys all of them, and in that sense no more interesting than any of the other hypocritical, fallacious, or just plain cruel attacks on the state sector than any of the others that we’ve seen during our age of austerity. But there is one thing that’s perhaps a bit interesting, as it’s a bit complex, about them.

In addition to the pretext of this line of argument, that state entities suck up market share without generating profit from it, there is an important subtext as well. Namely, that advertising costs us nothing. That is, of course it costs the corporations that advertise, but for the end user of the content that is funded by advertising, it is free.

This, of course, is little discussed. Certainly the media men aren’t going to bring it up. When Murdoch and his lobbying minions and PR flacks say, for instance, that “the BBC is a publicly funded entity that partially destroys our ability to sell advertising,” they of course never continue on to say, “advertising, that given the price that is paid for it, obviously must extract a huge amount of capital out of those that would be watching our channels instead of the BBC.”

When you ride on public transportation, that the bus interior or the carriage of the train is festooned with advertisements, does it cost you money, beyond the fare, to do so? Does it cost you money to use gmail, given all of those little ads that you ignore (but, we can assume, someone’s not ignoring them) on the sidebar? How much more does your newspaper cost you, given all of the car and mobile phone and supermarket advertisements that you find inside of it? How much do you spend, beyond the satellite bill and / or license fee, on spending a night in in front of the television?

I’m absolutely positive that corporations sometimes waste money on advertising, and I’m pretty sure that I’ve never clicked through a “sponsored ad” on Google. But on the other hand – they simply can’t be dumping all of that money, can’t have been dumping, for ages, all of that money, if someone, somehow, isn’t making it back in profit. If Wikipedia is running content that otherwise could generate $3 billion per year, then presumably the attention captured by this content, if not in the hands of the Wikipedias, is worth at least $3 billion per year to the companies that would have been advertising on these sites.

It all, it seems to me, goes back to what my father used to tell me all those years ago. “Mostly the price of the Cornflakes is the box of the Cornflakes.” What I’d like to work on (although sometimes it seems to me to be potentially a project of Kapital-like demands on my brain-power and time, neither of which I have at this point) is a study of just this quasi-mystical value equation. What does the ad before the YouTube video cost us to watch? What would we “save” were the ad not there, were YouTube a public institution rather than an arm of a massive profit-seeking corporation? 

I want to do this because I’ve long believed that the leap from Why not ads on the side of the bus to Let’s dismantle the remains of the welfare state is not only a short one, it’s one in which each step is informed by the selfsame logic. That is, it’s informed by a deep misapprehension about the value of the commons and the sort of life that is lived on them.

UPDATE: Armando Ianucci is on the case this morning in the Guardian

“It’s Facebook and Google who came along and ate up all newspapers’ classified ads. Yet it’s the BBC, who run no ads, that gets the blame, while it’s Google and Facebook that get the helpful tax arrangements from HMRC.”

While on the other hand, in the same paper on the same day, we have Sturgeon and the SNP showing her/its true colours:

“One of the things the last 12 months has demonstrated is that the old model of public service broadcasting – important though I think it is – doesn’t work well enough. It no longer reflects the complex, varied and rich political and social realities of the UK.”

Written by adswithoutproducts

August 27, 2015 at 12:07 am

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