To me, the competition between Microsoft and Google, which the former continues to claim it will vanquish, is more than a battle between companies…it is a classic case of power shift…similar to the way once-great nation states decline and are usurped by new powers, often more technically advanced, on the world stage. This contest between Google and Microsoft represents a titanic shift in the way of doing business.
Read the entire article on CNN.com here.
The Fifth Shockwave Targets The Pillars of Marketing: Madison Avenue and Network TV.
“Good-Bye Story Boards, Hello Algorithms”
It’s been a glorious ride. Ever since the atomic bomb rained destruction on Japan and pulled the plug on World War II, Madison Avenue has reigned as a powerful pillar of the U.S. business establishment, and a beneficiary of its swollen treasuries. The first four shockwaves – the Cold War, Mass Merchandising, Madison Avenue, and Network Television – created and defined the American lifestyle for the last 60 years. The last to succumb to change has been Madison Avenue. But suddenly, it’s all coming to an end, as the Fifth Shockwave of the post-war era has revolutionized marketing.
Another bomb — the Internet and its increasing Google-ization of marketing — is forcing the bloated and hidebound practitioners of traditional advertising to face their worst nightmare: the uber-cool “creatives” are being replaced in the pantheon of vaunted advisor’s by geeks and nerds formally known as computer scientists and mathematicians.
In short, the new way to spell Madison Avenue is M.I.T. The creatives – writers, producers, actors, photographers, songsters, jingle junkies – promise glamorous photo shoots, celebs, Clio awards. The nerds promise science, precision, results. Google CEO Sergei Brin is working toward offering advertisers a guarantee: “Give us $1million dollars and you’ll gain $100 million dollars in sales.”
The axiom “the nerds will inherit the earth” is about to prove true — increasing numbers of advertisers are voting for algorithms over aesthetics. If you think this is an exaggeration, Google already accounts for a greater advertising spend than NBC. This is a sea change, and it is because these “nerds” are focused on selling things – cars or toothpaste or ski vacations – while Madison Avenue cares little about sales.
The tipping point for the Fifth Wave isn’t here yet, but it’s arrival can be measured in months. And as Rome burns, Madison Avenue’s response is to dig up has-beens like “mellow yellow” folk rocker Donovan and shove his songs into Volvo commercials. (Like this is going to sell cars. Meanwhile, the song Madison Avenue, the Times, the networks, all of them should be singing is “Eve of Destruction.”
Read the entire article on CNN.com here.
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So the “nerds” have created a massive directory of information. Yay for them. Anybody ever seen a phone book before? So this “phone book” is searchable. What’s going to happen when *everybody’s* clammoring for the top spot on every search? 1) Price competition will make it worthless (as mentioned by Zarathustra’s Son) and 2) end-users (such as myself) will start to migrate elsewhere when every search query returns the same top 10 results. The latter is already happening. My friend was just complaining last night about searching for some rare music gear, and always having to sort through the same results, even though he knew Guitar Center, Musician’s Friend and Music 123 (large music retailers) were *not* going to have what he was looking for.
It should be noted that I am also a member of gaston mendez’s generation, and that I grew up with computers in much the same way he describes in his post. However, even in our generation there is still a distinction between the “nerds” and everyone else. I think computers are great, but only as a means to an end—not the end itself. After working with a computer all day, I am ready to get away from them when I get home.
It should also be noted that I am a creative professional, and I can hardly read Mr. Stevens’ material without taking a little offense at the massive generalities he makes regarding my profession. I think Mr. Stevens would do well to realize that, while I’m sure there are those on Madison Avenue who profit off the ignorance of companies like Ford, there is also an entire community of us who know that the real purpose of our profession is to create results. We don’t just get together to tell each other how good we are and pass out Clio’s.
Mr. Stevens bashes the creatives for using terms like “mindshare”, but then praises Coca-Cola because their logo is everywhere. Can you make a direct correlation between bottles of Coke sold and iterations of the Coke logo? Not everything in marketing can be reduced to an algorithm. I didn’t just buy my iPod because of it’s functionality (though it excels in that area), I bought it because it’s way cooler than any of the other 1000 mp3 players that are available. I digress…
I am certain the creatives will be waiting when Google becomes saturated with companies fighting for the most prominent space in the directory. They will have to do something…something *creative*…to stand out from the crowd.