Video above published Nov 3, 2016, by L2inc.com. NYU Stern marketing professor Scott Galloway presents his take on this week's biggest winners and losers in digital:
- What do winning companies have in common? They don't just have a lot of users - they also glean data about those users' behavior and use it to improve the consumer experience.
- The biggest winner here: Amazon.com, which could soon be the first trillion-dollar company. The site's algorithm constantly looks at what you're shopping for and displays the most relevant products, in addition to ensuring that prices are the most competitive on the Internet. Compare to lame Walmart.com.
- A loser: Snapchat.com. While the platform is innovative, they're not using their algorithm to personalize the experience--watch out for Facebook.com's Instagram.com.
- Another surprising loser: Apple.com. The company's music algorithm has changed little since the early days of iTunes, opening the door for Pandora.com and Spotify.com.
YouTube.com auto-generated transcript:
0:00 what do winning companies have in common
0:04 we think a lot about that here at l2
0:06 eight of the 13 companies that have
0:08 outperformed the S&P 500 years straight
0:11 have a few things in common specifically
0:13 they don't just have a lot of users they
0:15 also clean data about those users
0:17 behavior and use the data to improve the
0:19 consumer experience seamlessly the
0:22 combined receptors their number of users
0:24 with intelligence to implicitly inform
0:27 and improve the product google pioneered
0:29 this concept of the original gangster
0:32 here every time you conduct a search you
0:34 make the algorithm point 000000 three
0:40 percent better
0:42 so who's the biggest winner here who
0:43 brings together receptors and
0:45 intelligence like no one else
0:47 amazon the platform's algorithm constant
0:49 looks of what you're shopping for and
0:51 then displays the most relevant products
0:53 for you these three users see vastly
0:56 different home pages due to differences
0:58 in their shopping behavior and contrast
1:00 here's the homepage for the same users
1:03 on walmart what you see the exact same
1:06 thing it's similar in a bad way amazon's
1:08 algorithm also caused millions of sites
1:10 to ensure the details prices are the
1:12 most competitive best buy and walmart
1:14 change prices 50,000 times per month in
1:18 comparison
1:19 amazon changes prices across categories
1:21 more than two-and-a-half million times
1:23 each day prediction amazon will be the
1:26 first trillion dollar company and will
1:28 reach this milestone in 2018 based on
1:32 our algorithm we believe snapchat is
1:34 going to decline in value in 2017 their
1:37 innovative no doubt but they're not
1:39 using their algorithm to push content or
1:42 personalize the experience a lot of
1:44 receptors but not a lot of intelligence
1:46 here meanwhile rival Instagram recently
1:48 changed its news feed from chronological
1:50 to algorithmic Instagram also reaches
1:53 more people Nikes most viewed snap got
1:55 around 70,000 views while the company's
1:58 Instagram story racked up a whopping
2:00 800,000 views and its first 24 hours
2:04 unless snapchat can come up with a
2:05 smarter way to leverage user data
2:08 facebook is going to steal it standard
2:11 the world is going to fail
2:13 facebook and google so who is losing
2:16 when you look at companies through this
2:17 lens of receptors times intelligence
2:20 apple itunes 2001 large brought Apple a
2:24 huge surgeon value but the platform's
2:26 algorithm is not involved opening the
2:28 door for Pandora and Spotify Spotify is
2:31 implicit intelligence is more robust and
2:33 introducing listeners to new music as a
2:35 result Spotify has 40 million
2:37 subscribers more than double the
2:39 subscribers of apples music offering
2:42 they're also better targeting ads here's
2:44 what Pandora no joke serves me and over
2:47 40 have you tried to GNC award-winning
2:50 innovation designed to invigorate your
2:51 body and increase your libido
2:53 we'll see you next week
feedback & comments via twitter @DomainMondo0:00 what do winning companies have in common
0:04 we think a lot about that here at l2
0:06 eight of the 13 companies that have
0:08 outperformed the S&P 500 years straight
0:11 have a few things in common specifically
0:13 they don't just have a lot of users they
0:15 also clean data about those users
0:17 behavior and use the data to improve the
0:19 consumer experience seamlessly the
0:22 combined receptors their number of users
0:24 with intelligence to implicitly inform
0:27 and improve the product google pioneered
0:29 this concept of the original gangster
0:32 here every time you conduct a search you
0:34 make the algorithm point 000000 three
0:40 percent better
0:42 so who's the biggest winner here who
0:43 brings together receptors and
0:45 intelligence like no one else
0:47 amazon the platform's algorithm constant
0:49 looks of what you're shopping for and
0:51 then displays the most relevant products
0:53 for you these three users see vastly
0:56 different home pages due to differences
0:58 in their shopping behavior and contrast
1:00 here's the homepage for the same users
1:03 on walmart what you see the exact same
1:06 thing it's similar in a bad way amazon's
1:08 algorithm also caused millions of sites
1:10 to ensure the details prices are the
1:12 most competitive best buy and walmart
1:14 change prices 50,000 times per month in
1:18 comparison
1:19 amazon changes prices across categories
1:21 more than two-and-a-half million times
1:23 each day prediction amazon will be the
1:26 first trillion dollar company and will
1:28 reach this milestone in 2018 based on
1:32 our algorithm we believe snapchat is
1:34 going to decline in value in 2017 their
1:37 innovative no doubt but they're not
1:39 using their algorithm to push content or
1:42 personalize the experience a lot of
1:44 receptors but not a lot of intelligence
1:46 here meanwhile rival Instagram recently
1:48 changed its news feed from chronological
1:50 to algorithmic Instagram also reaches
1:53 more people Nikes most viewed snap got
1:55 around 70,000 views while the company's
1:58 Instagram story racked up a whopping
2:00 800,000 views and its first 24 hours
2:04 unless snapchat can come up with a
2:05 smarter way to leverage user data
2:08 facebook is going to steal it standard
2:11 the world is going to fail
2:13 facebook and google so who is losing
2:16 when you look at companies through this
2:17 lens of receptors times intelligence
2:20 apple itunes 2001 large brought Apple a
2:24 huge surgeon value but the platform's
2:26 algorithm is not involved opening the
2:28 door for Pandora and Spotify Spotify is
2:31 implicit intelligence is more robust and
2:33 introducing listeners to new music as a
2:35 result Spotify has 40 million
2:37 subscribers more than double the
2:39 subscribers of apples music offering
2:42 they're also better targeting ads here's
2:44 what Pandora no joke serves me and over
2:47 40 have you tried to GNC award-winning
2:50 innovation designed to invigorate your
2:51 body and increase your libido
2:53 we'll see you next week
Follow @DomainMondo
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