The latest study from Pew Research Center takes a look at the impact mobile technology, including the use of smartphones and social media, is having on the diversity of people’s social network in emerging markets. For the purpose of the study, Pew surveyed mobile users in 11 key markets: Mexico, Venezuela, Colombia, South Africa, Kenya, India, Vietnam, the Philippines, Tunisia, Jordan and Lebanon. It found that users in these markets had broader social networks than those without smartphones and social media.
In the U.S., we’ve been concerned with social media’s ability to create “filter bubbles” — meaning how we surround ourselves online with people who hold the same opinions as us, which is then reinforced by social media’s engagement-focused algorithms. This leads us to believe, sometimes in error, that what we think is the most correct and most popular view.
According to Pew’s study, emerging markets are experiencing a somewhat different phenomenon.
Instead of isolation, the study found that smartphone users in these markets, and particularly those who also used social media, were more regularly exposed to people with different racial and ethnic backgrounds, different religious preferences, different political parties and different income levels, compared to those without a smartphone.
In Mexico, for example, 57% of smartphone owners regularly interacted with people of other religions, while only 38% of those without a smartphone did. And more than half (54%) interact with people who supported different political parties. They were also 24% more likely to interact with people of different income levels, and 17% more likely to interact with people of different ethnic or racial backgrounds.
These sorts of trends help up across the nations studied, Pew noted, with a median of 66% saying they interacted with people with different income levels, 51% saying they interacted with a those of different race or ethnicity, 50% saying they interacted with those having different religious views and a median 44% saying they interacted with those who supported a different political party.
The use of social media and messaging apps was found to be a huge contributor here, as it made people more likely to encounter people different from them, the study also said.
The report, however, isn’t claiming that smartphones and the related social media use are the cause of this increase in diversity in these people’s lives. There may be other reasons for that. Smartphone owners, in general, may have more resources and money — they own a smartphone, after all — and this alone could help expose them to a more diverse group of people.
That said, smartphones are helping people stay connected to distant family and friends, and build out online networks of people they don’t ever see in person.
More than half the people in most of the surveyed countries said they only see in person half — or fewer — of the people they call or text. Indeed, 93% said they keep in touch with far-flung contacts. And a median of 46% said they see few or none of their Facebook friends regularly.
All this connecting isn’t seen as being fully positive, however.
An earlier Pew report found that users in these 11 countries believe the internet and social media are making people more divided in their opinions and only sometimes more accepting of different views. Exposure to diversity and acceptance of it are different things.
The new report also gets into how smartphones are used. For example, a median of 82% said they texted, 69% took photos or videos, 61% looked up health information, 47% looked up news and political information and 37% looked up information about government resources.
It also examined smartphones’ impact on digital divides, noting that people with access to these devices and social media, as well as younger people, those with higher levels of education and men, were gaining more benefits than others.
The study is based on in-person interviews conducted by D3 Systems, Inc. and the results are based on national samples, notes Pew.
The full report is available here, with deeper dives on activities and data by individual countries.
Facebook launches rap app – TechCrunch
Facebook unveils another experimental app, Atlassian acquires a data visualization startup and Newsela becomes a unicorn. This is your Daily Crunch for February 26, 2021.
The big story: Facebook launches rap app
The new BARS app was created by NPE Team (Facebook’s internal R&D group), allowing rappers to select from professionally created beats, and then create and share their own raps and videos. It includes autotune and will even suggest rhymes as you’re writing the lyrics.
This marks NPE Team’s second musical effort — the first was the music video app Collab. (It could also be seen as another attempt by Facebook to launch a TikTok competitor.) BARS is available in the iOS App Store in the U.S., with Facebook gradually admitting users off a waitlist.
The tech giants
Atlassian is acquiring Chartio to bring data visualization to the platform — Atlassian sees Chartio as a way to really take advantage of the data locked inside its products.
Yelp puts trust and safety in the spotlight — Yelp released its very first trust and safety report this week, with the goal of explaining the work that it does to crack down on fraudulent and otherwise inaccurate or unhelpful content.
Startups, funding and venture capital
Newsela, the replacement for textbooks, raises $100M and becomes a unicorn — If Newsela is doing its job right, its third-party content can replace textbooks within a classroom altogether, while helping teachers provide fresh, personalized material.
Tim Hortons marks two years in China with Tencent investment — The Canadian coffee and doughnut giant has raised a new round of funding for its Chinese venture.
Sources: Lightspeed is close to hiring a new London-based partner to put down further roots in Europe — According to multiple sources, Paul Murphy is being hired away from Northzone.
Advice and analysis from Extra Crunch
In freemium marketing, product analytics are the difference between conversion and confusion — Considering that most freemium providers see fewer than 5% of free users move to paid plans, even a slight improvement in conversion can translate to significant revenue gains.
As BNPL startups raise, a look at Klarna, Affirm and Afterpay earnings — With buy-now-pay-later options, consumers turn a one-time purchase into a limited string of regular payments.
(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)
Jamaica’s JamCOVID pulled offline after third security lapse exposed travelers’ data — JamCOVID was set up last year to help the government process travelers arriving on the island.
AT&T is turning DirecTV into a standalone company — AT&T says it will own 70% of the new company, while private equity firm TPG will own 30%.
How to ace the 1-hour, and ever-elusive, pitch presentation at TC Early Stage — Norwest’s Lisa Wu has a message for founders: Think like a VC during your pitch presentation.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.
Yelp puts trust and safety in the spotlight – TechCrunch
Yelp released its very first trust and safety report this week, with the goal of explaining the work that it does to crack down on fraudulent and otherwise inaccurate or unhelpful content.
With focus on local business reviews and information, you might think Yelp would be relatively free of the types of misinformation that other social media platforms struggle with. But of course, Yelp reviews are high stakes in their own way, since they can have a big impact on a business’ bottom line.
Like other online platforms, Yelp relies on a mix of software and human curation. On the software side, one of the main tasks is sorting reviews into recommended and not recommended. Group Product Manager for Trust and Safety Sudheer Someshwara told me that a review might not be recommended because it appears to be written by someone with a conflict of interest, or it might be solicited by the business, or it might come from a user who hasn’t posted many reviews before and “we just don’t know enough information about the user to recommend those reviews to our community.”
“We take fairness and integrity very seriously,” Someshwara said. “No employee at Yelp has the ability to override decisions the software has made. That even includes the engineers.”
He added, “We treat every business the same, whether they’re advertising with us or not.”
So the company says that last year, users posted more than 18.1 million reviews, of which 4.6 million (about 25%) were not recommended by the software. Someshwara noted that even when a review is not recommended, it’s not removed entirely — users just have to seek it out in a separate section.
Removals do happen, but that’s one of the places where the user operations team comes in. As Vice President of Legal, Trust & Safety Aaron Schur explained, “We do make it easy for businesses as well as consumers to flag reviews. Every piece of content that’s flagged in that way does get reviewed by a live human to decide whether it should should be removed violating our guidelines.”
Yelp says that last year, about 710,000 reviews (4%) were removed entirely for violating the company’s policies. Of those, more than 5,200 were removed for violating the platform’s COVID-19 guidelines (among other things, they prohibit reviewers from claiming they contracted COVID from a business, or from complaining about mask requirements or that a business had to close due to safety regulations). Another 13,300 were removed between May 25 and the end of the year for threats, lewdness, hate speech or other harmful content.
“Any current event that takes place will find its way onto Yelp,” acknowledged Vice President of User Operations Noorie Malik. “People turn to Yelp and other social media platforms to have a voice.”
But expressing political beliefs can conflict with what Malik said is Yelp’s “guiding principle,” namely “genuine, first-hand experience.” So Yelp has built software to detect unusual activity on a page and will also add a Consumer Alert when it believes there are “egregious attempts to manipulate ratings and reviews.” For example, it says there was a 206% increase in media-fueled incidents year-over-year.
It’s not that you can’t express political opinions in your reviews, but the review has to come from first-hand experience, rather than being prompted by reading a negative article or an angry tweet about the business. Sometimes, she added, that means the team is “removing content with a point of view that we agree with.”
One example that illustrates this distinction: Yelp will take down reviews that seem driven by media coverage suggesting that a business owner or employee behaved in a racist manner, but at the same time, it also labeled two businesses in December 2020 with a “Business Accused of Racism” alert reflecting “resounding evidence of egregious, racist actions from a business owner or employee.”
Beyond looking at individual reviews and spikes in activities, Someshwara said Yelp will also perform “sting operations” to find groups that are posting fraudulent reviews.
In fact, his team apparently shut down 1,200 user accounts associated with review rings and reported nearly 200 groups to other platforms. And it just rolled out an updated algorithm designed to better detect and un-recommend reviews coming from those groups.
Chinese mobile games are gaining ground in the US – TechCrunch
Over the past year, the coronavirus crisis has spurred app usage in the United States as people stay indoors to limit contact with others. Mobile games particularly have enjoyed a boom, and among them, games from Chinese studios are gaining popularity.
Games released on the U.S. App Store and Google Play Store raked in a total of $5.8 billion in revenue during the fourth quarter, jumping 34.3% from a year before and accounting for over a quarter of the world’s mobile gaming revenues, according to a new report from market research firm Sensor Tower.
In the quarter, Chinese titles contributed as much as 20% of the mobile gaming revenues in the U.S. That effectively made China the largest importer of mobile games in the U.S., thanks to a few blockbuster titles. Chinese publishers claimed 21 spots among the 100 top-grossing games in the period and collectively generated $780 million in revenues in the U.S., the world’s largest mobile gaming market, more than triple the amount from two years before.
Occupying the top rank are familiar Chinese titles such as the first-person shooter game Call of Duty, a collaboration between Tencent and Activision, as well as Tencent’s PlayerUnknown’s Battlegrounds. But smaller Chinese studios are also quickly infiltrating the U.S. market.
Mihoyo, a little-known studio outside China, has been turning heads in the domestic gaming industry with its hit game Genshin Impact, a role-playing action game featuring anime-style characters. It was the sixth-most highest-grossing mobile game in the U.S. during Q4, racking up over $100 million in revenues in the period.
Most notable is that Mihoyo has been an independent studio since its inception in 2011. Unlike many gaming startups that covet fundings from industry titans like Tencent, Mihoyo has so far raised only a modest amount from its early days. It also stirred up controversy for skipping major distributors like Tencent and phone vendors Huawei and Xiaomi, releasing Genshin Impact on Bilibili, a popular video site amongst Chinese youngsters, and games downloading platform Taptap.
Magic Tavern, the developer behind the puzzle game Project Makeover, one of the most installed mobile games in the U.S. since late last year, is another lesser-known studio. Founded by a team of Tsinghua graduates with offices around the world, Magic Tavern is celebrated as one of the first studios with roots in China to have gained ground in the American casual gaming market. KKR-backed gaming company AppLovin is a strategic investor in Magic Tavern.
Other popular games in the U.S. also have links to China, if not directly owned by a Chinese company. Shortcut Run and Roof Nails are works from the French casual game maker Voodoo, which received a minority investment from Tencent last year. Tencent is also a strategic investor in Roblox, the gaming platform oriented to young gamers and slated for an IPO in the coming weeks.
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