Dating Apps, Winners, Losers, Traditional Advertising No Longer Works

Goliaths vs. Innovators

Video above: Scott Galloway, NYU Stern Marketing Professor. Video published July 28, 2016, by L2inc.com.
  • Loser: Established CPG [ConsumerPackaged Goods] companies. Brands like L'Oréal Paris and Gillette are rapidly losing share to smaller, more agile rivals skilled at maximizing search visibility.
  • Loser: Specialty Retail brands who email too much. Retailers sent 15% more emails in Q1 2016 than during the holiday season, but the resulting open rates proved that sometimes less is more.
  • Winner or loser? Parents now spend less on food, transportation, and clothing than they did fifty years ago. However, childcare and education costs have soared.
  • Who's winning in dating apps? Match Group, which owns 64% of the app ecosystem, including OKCupid and Tinder. 


A loser: established CPG [consumer-packaged goods] brands. 90 of the 100 largest CPG brands in the US lost share in the past year and two-thirds registered sales declines. The reason? Traditional advertising no longer works. Who's winning? Smaller brands with agile product innovation that digital - specifically search - rewards.

Two examples: NYX, who outperforms L'Oréal Paris 3 times in organic search visibility despite only bidding on 129 terms, versus 60,000 terms for L'Oréal Paris or Harry's, who in 5 short months jumped from number 9 in organic search visibility to number 3 as Gillette fell to second and Amazon secured the top spot.

So what's going on here? In sum, the diligence vehicles of Amazon reviews and Google search make it easier to connect you and the right product without having to default to the safety of a brand.

A loser: Specialty Retail brands who email too much. If your inbox feels overwhelmed, that's because it is. Retailers sent 15% more emails in Q1 2016 than during the overwhelming holiday season. But more isn't always better. With each additional email campaign, open rates declined by 15 basis points. Asking consumers explicitly and implicitly for additional information - such as you can customize the content and the email - is a winning strategy.

Everyone knows raising a child is expensive, but the complexion of that cost has changed dramatically in the past 50 years. I've told both my sons they need to start pulling their weight. Lorde wrote a Grammy-nominated song when she was 13. My kid at nine still lets the bath overflow - even when he's in it. Parents are spending less on food, transportation, and clothing but childcare and education costs have surged, accounting for a fifth of parental expenses - a big change from 1960, when they were just 2%.

The most affordable place in the US to raise a child? Morristown, Tennessee, where a family of 4 can meet their basic needs on $50,000 a year. That's half the required income necessary to raise a family in New York or Washington, DC.

Dating apps: winners or losers? By the way, my nickname around here is Swipe Left. It depends which one you're on and what you're looking for. Let''s look at some of the data.
  • Tinder is the most popular and Happn has the most daily engagement.
  • Christian Mingle has the highest proportion of women.
  • Grindr has the lowest churn rate and eHarmony has the highest.
But who really wins? Match Group, which owns 64% of the dating app ecosystem.

I can save you some money. This is literally a fail-safe way to approach women. You walk up. Scott. Scorpio. Never fails.

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