06 March 2017

Scott Galloway: Snapchat $SNAP Is a Loser & Could 'Torch the Market'

Scott Galloway: Attack of the Drones

Video above published Mar 2, 2017, by L2inc.com: adjunct NYU Stern marketing professor Scott Galloway (brand strategy and digital marketing) on digital winners and losers. (Editor's note: language in video at and after 2:28 may be offensive to some readers.) As a sidenote, check out the Bloomberg Radio Barry Ritholtz interview of Scott Galloway embedded below. Galloway is also author of the Digital IQ Index ®, a global ranking of prestige brands’ digital competence. Ritholtz gives more background info here.



Winner: Facebook. As investors focus on Snap's IPO, Facebook dominates across the board, from revenue growth to ad spend.

Winner: Burrito lovers. Chipotle has slashed wait times for digital orders as it strives to lure back diners.

Loser: Snapchat. WhatsApp has become the latest member of the Facebook family to borrow its key features.

Winner: Drone makers. With every company getting into the drone game, from UPS to 7/11, we tested one out for ourselves.

Sources:
0:10: Company Filings.
0:30: L2 Analysis of iSpot.tv, Pathmatics, and Visible Measures Data. http://bit.ly/2mxI4k0
0:38: 2016 Mobile App Report, comScore Mobile Metrics, U.S. Age 18+, June 2016. http://bit.ly/2d27iPI
0:48: “Chipotle’s Digital Orders Are Getting A Lot Faster,” Fortune, February 2017. http://for.tn/2mhCVIO
1:04: “Starbucks Debuts Voice Ordering,” Starbucks, January 2017. http://bit.ly/2jNSaIE
1:43: "Instagram Stories is Stealing Snapchat’s Users," TechCrunch, January 2017. http://tcrn.ch/2kkCijS
1:44: "Instagram Just Cloned Snapchat’s Stories Feature to Get More People Sharing," Recode, August 2016. http://bit.ly/2aNfbes
2:14: "Verizon Just Acquired a Drone Company," Recode, February 2017. http://bit.ly/2mKFVOE

Transcript via YouTube.com:
0:02  A winner: Facebook.
0:03  Despite all the attention on Snap this month,
0:05  Facebook is excelling across several dimensions.
0:08  The tech giant leads competitors in revenue growth with a 50% increase in Q4 2016,
0:15  twice Amazon's growth rate.
0:17   The law of big numbers don't seem to apply to Facebook.
0:21   Despite the recent controversy regarding Facebook's reported metrics,
0:24  advertisers are still throwing money at the platform.
0:27  According to L2 research,
0:29  Facebook registered the greatest year-on-year growth in ad spend among peer platforms.
0:34  Further cementing its hold on the ecosystem,
0:36  Facebook dominates the mobile app business.
0:40  A winner: burrito lovers.
0:42  Chipotle has cut wait times for digital orders by 50%.
0:46  Thousands of customers place digital orders before the restaurant opens
0:49  and then pick them up in a separate line, eliminating bottlenecks at the cash register
0:54  unlike Starbucks, whose popular mobile ordering system has proven problematic in store,
0:58  overwhelming baristas and frustrating customers.
1:02  Starbucks has invested heavily in mobile, which accounts for 27% of transactions.
1:06  Last month the chain launched voice ordering in its mobile app and Amazon Alexa,
1:11  but what they're missing that Chipotle gets?
1:15  Pork. The other white meat.
1:18  I love Chipotle. If I go on a first date,
1:21  I take her to Chipotle.
1:23  When I stop liking her, I just continue to take her to Chipotle and she breaks up with me.
1:28  I don't care about the health scare.
1:30  You could produce a Zika bowl
1:32  and the big dog is eating more and more of that stuff.
1:35  He loves you.
1:38  A loser again: Snapchat.
1:39  We've referenced a number of times that Instagram has borrowed features from Snapchat.
1:45  This time Facebook's offspring WhatsApp is taking a lesson from the Snap playbook with the launch of its new status feature.
1:52  Users can share disappearing photos, GIFs or videos
1:55  and add their own emojis and captions.
1:57  Sound familiar?
1:58  Let's be honest, the ecosystem would benefit from a third player.
2:02  I have a bad feeling about this.
2:05  We believe Snap could be the spark that torches the market.
2:09  A winner: drone manufacturers
2:11  as every company is getting into the game.
2:13  Verizon bought a drone startup just last week,
2:16  UPS is testing trucks with drone launching pads, although they botched one demo,
2:21  and 7-11 beat Google and Amazon to the punch with their first drone delivery.
2:26  By the way, when I go into a 7-11,
2:28  it's me screaming to the world, I am so f*cking hungover I have become a moron with respect to food and nutrition decisions.
2:35  In July, 77 customers in Reno, Nevada received their orders via drone.
2:40  The initial delivery included a chicken sandwich, donuts, coffee, candy and Slurpees.
3:08  Bitch.
3:11  We'll see you next week.


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