Video above published Nov 3, 2016, by L2inc.com. NYU Stern marketing professor Scott Galloway presents his take on this week's biggest
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
