How Google, Amazon and Facebook are Changing Digital Marketing
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Transcript of How Google, Amazon and Facebook are Changing Digital Marketing
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How Google, Amazon and Facebook are Changing
Digital MarketingBill Wagner
President, AMA MilwaukeeDirector, Product Marketing, ARI Network Services Inc.
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About Bill• Chicago transplant, Marquette alumnus,
Long-time marketer• Have done a bit of everything: MarCom,
Research, Digital, E-Commerce, Strategy, Client/Agency, etc.• Currently providing digital marketing for
over 7,500 customers around the world
@milwagnerNote: all opinions and forward-looking statements in this presentation are my own
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The pace of change will never be slower than it is now… and now… and now… and now…
- Raphael Louis Vitón, Maddock DouglasAMA Keynote Lunch on Innovation, 2014
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It took electricity over 30 years to reach 80% of American households
It took the Cell Phone less than 10
NYTimes, Diffusion Rates of Technologies, 2006
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KPCB State of the Internet, 2016
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KPCB State of the Internet, 2016
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dis·in·ter·me·di·a·tionnoun: disintermediation;reduction in the use of intermediaries between producers and consumers, for example by investing directly in the securities market rather than through a bank.
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KPCB State of the Internet, 2016
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While Amazon has put Walmart on the defensive and is worth 59% more on the stock market,
Walmart is actually 647% more profitable than its online rival.
Other companies with greater profits than Amazon:Home Depot, CVS, Target, Walgreens, Lowe’s,
Priceline, Costco, TJ Maxx, and Kroger
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Blackrock is the world’s largest asset management firm (that most people have probably never heard of)
They control a fund with over $4.6 trillion dollars in it…
and it actively seeks technological disintermediation opportunities
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KPCB State of the Internet, 2016
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FacebookMarket Cap: 350 Billion Dollars
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FB is growing more than 6 times faster than the Dow Jones
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FB is growing more than 30 times faster than the Nasdaq
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AmazonMarket Cap: 360 Billion Dollars
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AMZN is growing more than 10 times faster than the Dow Jones
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AMZN is growing more than 40 times faster than the Nasdaq
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Google / AlphabetMarket Cap: 560 Billion Dollars
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GOOG is growing more than 6 times faster than the Dow Jones
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GOOG is growing more than 14 times faster than the Nasdaq
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KPCB State of the Internet, 2016
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“Great, what does this any of this have to do with me and / or my business and / or my
business’ digital marketing?”
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This is youThis is them
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Facebook wants to connect everyone via the internet
Amazon wants to help people make purchasing decisionsGoogle wants to organize and provide all of the world’s data
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Facebook makes money by selling impressions to businessesAmazon makes money by owning the way people shop onlineGoogle makes money by selling conversions to businesses
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Facebook is now a pay to play platform for business
Average reach of a business post on Facebook – less than 6%
And, their ad revenue jumped 57% in the last quarter,fueled by growth in mobile ads
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“If you could rate everything that happened on Earth today that was published anywhere by any of your friends, any of
your family, any news source…and then pick the 10 that were the most meaningful to know today, that would be a
really cool service for us to build.” - Chris Cox, Facebook’s Chief Product Officer
“Make it indispensable for users, then make it indispensable for businesses, then make money by charging businesses for
it.”- Sheryl Sandberg, Facebook COO
4% - the percentage of businesses that advertise on Facebook
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If you want to be a player on Facebook, know that the days of a free lunch on social media are over.
You’ll have to commit advertising budget and start building skills and capabilities (or pay for them) around Facebook’s advertising toolkit for FB and Instagram, or start ramping down your investment in social media.
And, keep an eye on:• Facebook Messenger for Business (now powered by AI and
Bots)• Instagram in General• Facebook as an ISP
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Amazon has done more to impact the way the average American consumer feels about your business than any other company.
Amazon provides amazing customer service and can do it at a loss because of their market cap
And, they continue to innovate in adjacent spaces
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“We don’t make money when we sell things. We make money when we help customers
make purchase decisions.”- Jeff Bezos
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Realize that you’re competing with Amazon, even if you’re not directly competing with Amazon.
Every additional website visit to Amazon.com, conversation with Alexa, Prime purchase or download impacts the way your customers feel about the way your business creates the customer experience.
And, keep an eye on:• Amazon Machine Learning for Analytics• Amazon Alexa• Advertising-subsidized experiences
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Google is an advertising company. Not a smart phone company, not a driverless car company, not a mapping company, not a search engine, not a non-profit.
Google is leveraging powerful machine learning platforms to organize, control and disseminate information at unprecedented scale
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“Google’s mission is to organize the world’s information and make it universally accessible
and useful.”- Google’s Mission Statement
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Realize that Google controls the way the average American interacts with data on the internet.
Google is compiling massive data warehouses that are location-aware and they are building complex artificial intelligence that can determine intent with speed and accuracy… and it is constantly improving.
And, keep an eye on:• Google My Business• Google Store Visits• Google Project fi
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A few facts about Google and Facebook’s current revenue strategyFacebook and Google want to control all of the internet’s traffic so they can monetize that traffic by selling advertisingThey’re continuing to grow really fast and need more and more opportunities for revenueSo, they’re pushing further down the market with solutions for smaller and smaller businessesBoth Facebook and Google would love to get more business content inside their ecosystemsAnd, both Facebook and Google have successfully made a pact with users to get their data in exchange for free services that make their lives better/easier/etc.
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“Ultimately, it's good that there are a whole lot of design decisions that have become standardized.
But what that means is designers' jobs are changing — what they're going to focus on is how the thing works and less about how it looks.
This is what enables you to create products that can scale to meet billions of people.”
- Jon Lax, Director of Product Design, Facebook
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Let’s focus on Google• SEO is dead, long live SEO• Organic SERP is evolving rapidly thanks to RankBrain, the
KnowledgeGraph and more• Page speed, schema.org tags, and machine to machine
communication are the new “Coin of the Google Realm” for SEO• Local businesses are the target for the next wave of ad
revenue and GPS and GMB are acronyms you need to know• Google sort of snuck back into social when no one was looking
• Apps are dead, long live Apps• PWA and AMP are acronyms you need to know
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Google - SEO• SEO is now all about intent driven by use cases• It is a paradox in that it has gotten both less complex and more
complex at the same time• Easier - Content marketing, usability, satisfying intent and use cases• Harder - You have to stay on top of highly technical tools like JSON,
schema.org and JavaScript• 10 blue links in SERP is a thing of the past (only 3% of latest
Moz test)• Driven by Mobile (right rail ads example)• Driven by Local (Google My Business dominates SERP for buying
intent)• Driven by Knowledge Graph (“How Tall Was Abe Lincoln?”)
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Google - Local• Google is now the 400lb. Gorilla for local info• Yelp, Trip Advisor, etc. woke the sleeping giant, who took Google+
and turned it into the Yellow Pages on steroids• Google My Business is absolutely critical if you’re brick and mortar
• Will increasingly be the first thing most people see about your business• Google is actually in your store right now (through iPhones and Androids)
• The next wave of advertising tools will be focused on local business• Ads in Local Search results• Store Visits• Ads in Google Maps
• We’re all waiting to see what happens with the anti-trust suit in Europe
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Google - Apps• Apps are evolving into something new
• “The Web is an app”• Apple went native, Google/Android went native and web• Lines are increasingly blurry and you now need to hedge your bets across a wider
range of platforms and toolkits• PWA – Progressive Web Application
• Looks like a responsive webpage• But it can access “service workers” to behave like an app• Installs to your home screen like an app• Speed, speed, speed
• AMP – Active Mobile Pages• Originally built for news outlets• Became a nascent internet standard• Speed, speed, speed
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“The Trump campaign is not a bad campaign. It’s not a messed-up campaign. It’s not a dysfunctional campaign. There is
no campaign.
Everybody that’s done this for a living and got paid to do it is, like, ‘Oh, my gosh, suppose this works. We’re all rendered
useless.’ He will have destroyed an entire profession.”
- James Carville
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Google - SummaryIt would suck to get caught off guard by all this stuff, wouldn’t it?
These three narrowly specific examples have a big impact on your:
• Strategic plans• Resource allocations• Professional development
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• The rate of change in the world we live in is accelerating rapidly• Money and power continues to consolidate in the hands
of a chosen few (companies)• Google, Facebook and Amazon have enough funding to
continue disintermediating entire markets• You need to stay on top of the strategy and direction of
these three giants• The ‘internet’ will look vastly different within smaller
and smaller time windows• The opportunity for each of you lies in being ahead of
the rate of change, not behind it
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Questions?