A loser: Facebook, which has messed up ad metrics ten times since September and is refunding advertisers for its
miscalculations. To their credit, they did learn about crisis management: they are acknowledging the issue and overcorrecting. In contrast, Google’s advertising products keep getting more sophisticated – and creepy. By the way, creepy is synonymous in the marketing world with relevant. The tech giant can now tell when someone who clicks on a search ad makes a credit or debit purchase at the corresponding physical store. Think about that. The ad world has finally figured out attribution, which traditional advertising has never been able to do – which is the reason for their success, because you don’t know which 50% of your advertising budget is wasted. Well, now we know. Google can tell you. According to the search giant, people who click on a search ad are 25% more likely to buy something inside a physical outlet. Google will also begin tracking YouTube to see if video ads trigger retail visits. We here at L2 have implemented the same technology and have found that our viewers over-index on Abilify, downloads of Cheap Trick at Budokan and Pusheen. A big winner: Best Buy, which is proving to be an oasis in a desert of bad news in the retail sector. The brand’s US online sales grew 23%
year-on-year, offsetting declining in-store sales. While online sales represent just 11%, if they continue to grow 23% a year, it’ll be a pretty big business pretty fast. There’s a huge opportunity here to change the tenor of messaging from the retail community. Rather than reporting year-on-year store sales growth or declines, they should be talking about the sales growth of their new core business: online sales which in many cases is growing double
digits, supported by this incredible marketing vehicle that oftentimes breaks even or makes money: stores. A winner: Airbnb, which is now drawing more traffic than any hotel brand or metasearch site. We predict Airbnb will be worth more
than Uber. Their valuations of $30 billion and $70 billion respectively may in fact flip. Airbnb is a global demand model that cannot be easily replaced. There’s liquidity for Airbnb globally, meaning you need supply globally to get reservations to fill the demand in Austin whereas you and I could likely start with $10 or $20 million a ride-hailing company in any one market because you can build supply and demand in just one market. Airbnb has global barriers of entry versus regional barriers of entry. Just try deleting your Airbnb app and see how easy it is to find a replacement. It’s not. Versus Uber can be taken off your home screen and replaced with any number of local
alternatives. A winner: ayahuasca. The hallucinogen is gaining mainstream
appeal. Okay, let’s try it. I feel deeply insecure and angry so
nothing’s changed. I feel the same. So the things that I thought were really the obstacles to true self-actualization in fact don’t exist. Fear of what other people think of you, fear of failure, these aren’t real things. they’re made up, they’re perceptual, they’re intangible, they don’t really exist. The only thing that stands between me and true self-actualization is knowing what I want. Who do I want to be? I want to be Cher. We’ll see you next week.