how google, amazon and facebook are changing digital marketing

How Google, Amazon and Facebook are Changing

Digital MarketingBill Wagner

President, AMA MilwaukeeDirector, Product Marketing, ARI Network Services Inc.

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

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

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

KPCB State of the Internet, 2016

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.

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

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

FacebookMarket Cap: 350 Billion Dollars

FB is growing more than 6 times faster than the Dow Jones

FB is growing more than 30 times faster than the Nasdaq

AmazonMarket Cap: 360 Billion Dollars

AMZN is growing more than 10 times faster than the Dow Jones

AMZN is growing more than 40 times faster than the Nasdaq

Google / AlphabetMarket Cap: 560 Billion Dollars

GOOG is growing more than 6 times faster than the Dow Jones

GOOG is growing more than 14 times faster than the Nasdaq

“Great, what does this any of this have to do with me and / or my business and / or my

business’ digital marketing?”

This is youThis is them

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

Facebook makes money by selling impressions to businessesAmazon makes money by owning the way people shop onlineGoogle makes money by selling conversions to businesses

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

“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

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

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

“We don’t make money when we sell things. We make money when we help customers

make purchase decisions.”- Jeff Bezos

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

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

“Google’s mission is to organize the world’s information and make it universally accessible

and useful.”- Google’s Mission Statement

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.

“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

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

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?”)

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

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

“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

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

• 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

Questions?