Scott Galloway - Best Practice: 0 or 1 - Winners & Loosers in a Digital World

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It‘s never been easier to be a billionaireor harder to be a millionaire as a digitalecosystem fosters a “winner takesall“ environment. Professor Gallowaywill explore key trends in mediaconsumption, demographics, emergingplatforms and their cumulative effectof business. Specifically, who benefitsfrom the shift and who is on the wrongside of this tectonic shift (i.e., the losers)?

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  • Can we do pull up Google data, and then the bars from the newspaper classifieds data (I want them to guess who has been negatively impacted, then (another click) brink in an icon of newspapers.Please find 2011 data
  • Can we do pull up Google data, and then the bars from the newspaper classifieds data (I want them to guess who has been negatively impacted, then (another click) brink in an icon of newspapers.Please find 2011 data
  • Can we do pull up Google data, and then the bars from the newspaper classifieds data (I want them to guess who has been negatively impacted, then (another click) brink in an icon of newspapers.Please find 2011 data
  • Can we do pull up Google data, and then the bars from the newspaper classifieds data (I want them to guess who has been negatively impacted, then (another click) brink in an icon of newspapers.Please find 2011 data
  • Update!
  • http://insights.chitika.com/2011/report-google-traffic-fails-to-rebound-after-dip/http://searchengineland.com/behind-the-numbers-of-googles-monumental-rise-to-25-million-unique-visitor-88076
  • Fix image
  • https://plus.google.com/112418301618963883780/posts/D2Rz5rdciWEhttp://google-plus.com/2291/google-user-base-has-crossed-40-millions-and-growing-official-statistics-from-google-ceo/
  • https://plus.google.com/112418301618963883780/posts/D2Rz5rdciWEhttp://google-plus.com/2291/google-user-base-has-crossed-40-millions-and-growing-official-statistics-from-google-ceo/
  • Looks to dark—why no color?
  • Please fix
  • If we look at the number one city for “buzz” on brands’ Facebook pages, it’s not where you think.For Chanel, it’s TaipeiFor Armani, it’s Mexico CityVuitton, BangkokBurberry, IstanbulAnd so onThe important thing here, is that, Dior doesn’t have a store in Tunis. But people are most talking about the brand there.The world of luxury is shifting from the Northern hemisphere and West, to Southern hemisphere, and East
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  • --However looking at traffic data from Facebook to popular luxury brand sites you start to see a different picture.--Every brand on this graph has aggregated massive communities – led by Burberry who reached 10 million fans just after the New Year--In September 2012, just 1.9% of traffic to Burberry.com came from the Facebook platform; Fast forward a year and a whopping 29% of traffic comes from Facebook; it is hard to think that a significant percentage of that traffic is not incremental--With search engine marketing costs continuing to skyrocket, Burberry is also likely generating traffic at a fraction of the cost of some of its competitors
  • The next question out of most executive mouths is whether their Facebook fan base overlaps with people purchasing their products--Analysis by comScore suggests that Burberry fans and friends of fans are 10 times more likely to visit the Burberry website than the average internet user -- suggesting they are more than just advocates
  • Module 3 MM
  • Topic: Industry obsessed with youth / youth obsessed cultureNotes on image: Image is of ThylaneBlondeau, a 10-year-old French model. Caused a stir this summer when she was photographed in very adult clothes, which appeared in French Vogue. The image on the right is from that issue. There are others.I get what you are trying to do, however this feels disturbing. Switch with pictures of young, but legal models.
  • Topic: Introducing what centenarians have in commonNotes on image: George Burns (he lived past 100)
  • Topic: Genes / genetic codeNotes on image: DNA
  • Topic: LifestyleNotes on image: Okinawan woman. Okinawans have the longest life expectancy in the world. Greatly due to lifestyle – when Okinawans move to other locales/cultures, they lose their longevity.
  • Can we get image of old people at a dance?
  • Topic: diving into topic of genes / evolution / source code … then going into the fact that it can be fooled (in the short term)Notes on image: DNA
  • Topic: Fooling the source code: Exercise/Physical fitness … productivity … again, source code believes you are adding valueNotes on image: Grandma Moses – the pre-eminent American folk artist (prolific) … lived over 100 years.
  • Topic: Fooling the source code … as long as you’re adding value to the next generation, you get to stick around a little longerNotes on image: family, generationsMaybe images of hunting, gathering, raising children, inventing something, etc.
  • Topic: source code knows that you’re sharing in a robust way. Humans have the ability to share a level of granularity of no other species. Ultimate socialization of our species is the relationship between mother and child. When women over 40 have children they are more likely to live to 100.Notes on image: mother and child
  • Topic: Fooling the source code: Fitness. Fitness is a youth serum…fools source code into thinking you are younger than you are.Notes on image: centenarian water skiing
  • Topic: Fooling the source code: Mental fitness … when you have exceptional periods of concentration (60-90 minutes of intense work and 15 minutes of rest)Notes on image: chess game
  • Topic: Fooling the source code: Exercise/Physical fitness … the sprinters workout. Sprinter trains at exceptional intensity and then sleeps for 8-9 hours.Notes on image: I can get the name of this sprinter – this is from the olympics.
  • Have the word “gratitude” fade in on a click of the mouse
  • Topic: How do you feel gratitude and optimism in these troubled times?Notes on image: Occupy wall street
  • c
  • Topic: How do you feel gratitude and optimism in these troubled times?Notes on image: Greek debt crisis
  • Topic: Despite media images of war and violence….if you look at the data, you are less likely to die at the hands of another man than ever before.Notes on Image: Iraq War
  • Add this one:http://www.edge.org/3rd_culture/MC11slides/sp-Slide052.jpgAnd this one:http://edge.org/3rd_culture/MC11slides/sp-Slide059.jpg
  • End
  • Topic: Fooling the source code: Happiness / Optimism. Centenarians - another commonality – optimistic…Notes on image: glass is half full…
  • Scott Galloway - Best Practice: 0 or 1 - Winners & Loosers in a Digital World

    1. 1. Facebook/l2thinktank @profgallowayBEST PRACTICE: 0 or 1 --Winners & Losers in a Digital World Scott Galloway | July 10, 2012
    2. 2. Intro:Winners, and losers, have emerged.
    3. 3. Info@L2ThinkTank.com Web Dead, Internet Thriving Share of Global Online Time Spent (2007–2010) 18.0% 16.0% 14.0% Facebook 12.0% 10.0% 8.0% YouTube MSN 6.0% 4.0% Google Yahoo 2.0% 0.0% 2007 2008 2009 2010“The top 10 Web sites accounted for 31% of US page views in 2001, 40% in 2006, and about 75% in 2010” --Wired Magazine, August 2010 Source: Mary Meeker, Internet Trends, April 10, 2010
    4. 4. Info@L2ThinkTank.com Powering the Print Industry Leading Magazine Advertising Category Growth (Q1 2011 vs. Q1 2012) +13.2% +7.1% -3.8% -3.0% -1.0% -.2% -5.6% -4.4% -15.2% -5.5%-34.6% Source: Publishers Information Bureau (PIB) with Kantar Media as city MPA, April 4, 2012
    5. 5. Info@L2ThinkTank.comTaking on Foursquare
    6. 6. Info@L2ThinkTank.comTaking on Foursquare August 2010: Facebook launches “Places” December 2011: Facebook acquires Gowalla
    7. 7. Info@L2ThinkTank.comAnd Pinterest?
    8. 8. Info@L2ThinkTank.comAnd Pinterest? February 2011: Facebook launches “Pinned Posts”
    9. 9. Info@L2ThinkTank.comWhat about Google +?
    10. 10. Info@L2ThinkTank.comAnd Tumblr?
    11. 11. Info@L2ThinkTank.comAnd in April…
    12. 12. Info@L2ThinkTank.com The E-commerce OpportunityIn 2010 68% of affluentsindicated they purchased a productor service via the internet… …in 2011 the percentage jumped to 92% Source: Affluent Consumers and How they Use the Internet, Social Media, and Mobile Devices, Unity Marketing, November 2011
    13. 13. Info@L2ThinkTank.com A more daunting Giant?Their favorite websites? Source: Affluent Consumers and How they Use the Internet, Social Media, and Mobile Devices, Unity Marketing, November 2011
    14. 14. Info@L2ThinkTank.com The New Retail Giants Percent Reach of Global Internet Users (June 2011) North America Europe Asia Pacific Middle East / Africa Latin America20.4% 16.2% 11.3% 9.7% Amazon eBay Alibaba Apple Source: comScore Media Metrix
    15. 15. Info@L2ThinkTank.com Referral Traffic: 2011 Digital IQ Index®: Beauty Upstream & Downstream Traffic to Beauty Sites To and From Sephora.com and Amazon.com (2010 vs. 2011) 36.36% 27.50% 25.45% 22.50% 21.82% 20.00% 17.50% 16.36% 2010 2011 2010 2011 2010 2011 2010 2011 % of Brands % of Brandsfor whom the following are a top eight for whom the following are a top eight source of upstream traffic source of downstream traffic
    16. 16. Overview:The Digital IQ Index ®
    17. 17. Info@L2ThinkTank.com Digital IQ Index ®The only brand audit that benchmarks the digital performance of brands Ranks brands on the following dimensions: SITE & DIGITAL MARKETINGE-COMMERCE Search, Email, Display, Innovation 3rd Annual Study Published MOBILE SOCIAL MEDIA October 11, 2011
    18. 18. Info@L2ThinkTank.comMethodology
    19. 19. Info@L2ThinkTank.com Categorizing ResultsBrands parsed into five categories based on Digital IQ score: 140+ Genius: Digital efforts are a point of competitive differentiation 110–139 Gifted: Engaging and brand-enhancing; takes risk 90–109 Average: Predictable, few innovation leaps 70–89 Challenged: Limited innovation, experimentation and engagement Nascent digital footprint; Investment does not >70 Feeble: match opportunity
    20. 20. Overview:The Rankings
    21. 21. Info@L2ThinkTank.com Digital IQ Index ®: Fashion (2011)RANKING: Challenged
    22. 22. Info@L2ThinkTank.com Digital IQ Index ®: Fashion (2011)RANKING: Average
    23. 23. Key Findings
    24. 24. Info@L2ThinkTank.comShifting Centers of GravityPeople Talking About This: Global Luxury Facebook Pages (April 2012) London v Paris Istanbul Tunis Bangkok Mexico City, Mexico Taipai Kuala Lumpur
    25. 25. In the Company of Genius
    26. 26. Four SeasonsReallocation of capital.
    27. 27. Digital and the Balance of Power Cost Per Booking by Distribution Channel (2010)
    28. 28. Digital IQ = Growth in RevPAR Relationship Between 2012 Digital IQ & 2010- 2011 growth in RevPAR (Hotels with Published Data, N=22)
    29. 29. The End of Command and ControlOnly 17% of hotelbrands host user reviews……brands with reviews sent39% less traffic to OTAs
    30. 30. In the Company of Genius: Four Seasons
    31. 31. In the Company of Genius: Four Seasons
    32. 32. Allocation of Capital
    33. 33. FragranceThe Importance of Ownership
    34. 34. Info@L2ThinkTank.com Fragrance: Digital IQ by Ownership Digital IQ by Ownership Structure: Fragrance IQ (June 2012)110 31 108 35105 30 22 25100 2095 90 1590 1085 580 - Licensed Owned n = 39 n = 24 Average Standard Deviation
    35. 35. Info@L2ThinkTank.comHuge digital assets… Average Facebook Community Size by Ownership (May 2012) 8,762,020 1,028,899 894,165 Celebrity Licensed Owned
    36. 36. Info@L2ThinkTank.com…But considerably underleveraged
    37. 37. BenefitLeapfrogging in China.
    38. 38. Estée LauderA focus on the organization.
    39. 39. Info@L2ThinkTank.comAnd in Beauty Digital IQ Index®: Beauty (2011) 5 OF TOP-10 BRANDS: Estée Lauder Companies
    40. 40. L2 Digital IQ Index®: Beauty (Social Media) Overall: Beauty IndustryAnalysis includes top 55 (Digital IQ Index®: Beauty 2011)Global Beauty & SkincareBrands across Channels To date brands have focused on FB & Price-point Facebook: Community Size Growth + Programs + Online Buzz Facebook: Programming + Online Buzz Best Practices Digital Marketing Facebook: Engagement Innovation Facebook: Global YouTube Integration Limited Digital Marketing Innovation Twitter
    41. 41. Dove has focused on FB fan acquistion Beauty Industry vs. Dove (Digital IQ Index®: Beauty 2011) Facebook Advertising + Programming Strategy: Grew from 300k fans to 4.3 MM Facebook: Community Size fans over 2011 Facebook: Programming + Online Buzz Best PracticesDigital Marketing Innovation Facebook: Engagement However…low Facebook engagement Facebook: Global YouTube Integration Twitter
    42. 42. Clarins: Strong Programming Leads to Engagement Beauty Industry vs. Clarins (Digital IQ Index®: Beauty 2011) Facebook: Community Size Facebook: Programming + Online Buzz Best PracticesPrimarily organic growthstrategy has resulted in Strong FB engagement rates 180,000 fans in category; Experimenting with gamification, Facebook Commerce and Product- focused contentDigital Marketing Innovation Facebook: Engagement Facebook: Global YouTube Integration Twitter
    43. 43. Lancôme: YouTube Dominance Beauty Industry vs. Lancôme (Digital IQ Index®: Beauty 2011) Facebook: Community Size Facebook: Programming + Online Buzz Best PracticesDigital Marketing Innovation Facebook: Engagement Facebook: Global Michelle Phan YouTube Integrationpartnership generates platform-centriccompetitive advantage Twitter
    44. 44. Chanel: Organic Buzz + Long Form Video Beauty Industry vs. Chanel (Digital IQ Index®: Beauty 2011) Facebook: Community Size Facebook: Programming + Online BuzzUnderinvestment across Best Practices the board, but brandequity equates to huge organic buzz Digital Marketing Innovation Facebook: Engagement Coupling TV Commercials with Long Form Video leads to strong YouTube Facebook: Global YouTube engagement Integration Twitter
    45. 45. Clinique: Top Overall Scores Beauty Industry vs. Clinique (Digital IQ Index®: Beauty 2011) Facebook: Community Size Facebook: Programming + Online Buzz Best PracticesOverall #1 aggregate scores across dimensionsDigital Marketing Innovation Facebook: Engagement Facebook: Global YouTube Integration Twitter
    46. 46. ELC Demonstrates Enterprise Dominance Beauty Industry vs. Estée Lauder Company Brands (Digital IQ Index®: Beauty 2011) Facebook: Community Size Facebook: Programming + Online Buzz Best PracticesStrong aggregate scores across dimensions suggests ELC is fast followerDigital Marketing Innovation Facebook: Engagement The corporation lags in ELC Brands: FB engagement Aveda Bobbi Brown Clinique Estée Lauder Facebook: Global YouTube MAC Integration Origins Smashbox Twitter
    47. 47. BurberryShareholder value.
    48. 48. Info@L2ThinkTank.comEngines of Growth
    49. 49. Youth
    50. 50. Commonalities?
    51. 51. 3. Genes
    52. 52. 2. Lifestyle
    53. 53. 1. Social
    54. 54. Source Code (can be fooled)
    55. 55. Productivity
    56. 56. Adding Value
    57. 57. To the next generation
    58. 58. Fitness
    59. 59. Mental
    60. 60. Amplitude
    61. 61. Gratitude
    62. 62. How?
    63. 63. Conflictinfant mortality
    64. 64. Genocide in the 20th Century
    65. 65. Battle Deaths in Wars 1946–2008
    66. 66. Democracies & Autocracies 1946–2008
    67. 67. International Peacekeeping 1948–2008
    68. 68. Vegetarianism 1984–2009
    69. 69. Approval of Spanking 1954–2008
    70. 70. Scott@stern.nyu.edu

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