Sorry Jason Calacanis, Google Isn't the Only Game in Town (The Amazon Principle)
Next month, I'll be delivering a keynote at TruEffect's Brand Partner Summit in Boulder, Colorado, on the topic of storytelling and advertising. I've talked a bit about the future of ads in general, in particular as a service industry.
The real context I'd like to address right here -- and what will serve as the backdrop for my talk in Boulder -- is what is actually driving the media ecosystem and respective information systems as a whole.
Right now, Google seems to have the upper hand. But this won't be the case for much longer.
As you may recall, late last year Jason Calacanis wrote a really interesting piece entitled "#googlewinseverything". The post generated quite a lot of buzz in technology and venture circles for obvious reasons. In the piece, Calacanis provides a list of truisms about Google, saying rather emphatically:
"In truth, the 10 ‘facts’ I’ve outlined above are not mine; these are the opinions I’ve collected over the past year asking intelligent folks, ‘So what do you think about Google?’ These are the 'facts' as the people see them. Although, I haven’t found anyone who disagrees with these 10 facts – do you?"
Well, I'm not going to disagree with Calacanis per se (he has access to a lot more inside info than I do and I have lots of respect for him as an entrepreneur and investor), but I am going to challenge the list of assertions he provides within context.
Here they are, point and counterpoint.
1. No company has as many smart people as Google. -> Define 'smart'. In a 'wicked' complex world, creative intelligence (or 'EQ', emotional quotient) is just as important as quantitative or purely scientific chops.
2. No company is as ambitious as Google. -> Define 'ambitious'. Do you mean to say that a host of companies without Google's market cap or footprint aren't taking on significant cultural mores, or attempting to create massive social change (for the better) -- like Amazon?
3. No company is working on as many hard problems as Google. -> Define 'hard problems'. Defer to counterpoint #2.
4. No company makes as many big bets as Google. -> What kind of bets? With what intentions? Defer to counterpoint #2.
5. No company is willing to make as many crazy acquisitions as Google. -> Maybe so. But there are lots of companies that don't have to acquire as much in order to 'push the envelope' as it were (i.e. market ownership is not the same as market creation...). Defer to counterpoint #2, with the caveat that Amazon is buying a lot in order to strengthen its infrastructure and market positioning.
6. No company has more data than Google. -> Perhaps. But is it all the right/best kind of data? (i.e. Is it clean? Can it be parallel processed? Is it behavioral? Does it seamlessly connect to the knowledge/social graphs? Is it scalable through reference/inferential databases? etc.). Defer to counterpoint #2.
7. Few companies understand how to play the government better than Google. -> Probably the case. But in Google's position, and given backdoor surveillance (as just one example), is that a good thing? More importantly, is Google really influencing policy in the best interests of us (its users)?
8. No company has more global influence than Google. -> Right now, probably true. But that won't remain to be the case. Defer to counterpoint #2.
9. No company is as ruthlessly efficient as Google. -> From my own experience working with Google (Google 'proper' and YouTube), that's simply not true. Great company and great people, yes, but 'ruthlessly efficient', no.
10. Only one CEO is more ambitious than Google’s Larry Page.* -> Jeff Bezos?
As you might've gathered, I have a thing for Amazon. Don't get me wrong, I think the world of Google, but Amazon is a special kind of dark horse (if you can even call a company that big a 'dark horse'). This Atlantic piece, which came out right around the time Calacanis wrote his post, was a really good, balanced take on how Amazon is making seismic moves.
The basic premise -- and my firm belief -- is that any company which thinks the way Amazon does long-term, to include massive financial risks, will 'win' long-term.
Now of course, pundits will say that Google has always thought long-term. That's debatable. Per the (counter)points above, Google has thought long-term about experimental domains like artificial intelligence, quantum computing, sustainable cities and transit, but I would assert that it actually hasn't thought that way about its own $28bb+ core search/ad business.
Amazon has just about every asset in the new commerce toolkit, and it's only a matter of time before its search product catches up with its capabilities in content, storytelling (journalism especially), publishing, purchasing, production, cloud/quantum computing and network distribution (private, social and virtual).
Bottom line: with its advanced ecosystem, Amazon doesn't need ads or impressions to rule the web like Google does currently.
If you'd like more validation on this position, check out a wonderfully curated thread my friend Alex Schleber put together in early February -- he poses a great list of questions (probably better than those I did here), and there's lots of contextual grist to explore, replete with great data-points.
The 'battle' between Google and Amazon, as it were, will likely produce cultural tensions that will push all of us to think differently, consume differently, produce more thoughtfully and tell stories with more of a bent towards real social utility. As a result, I think we will see the emergence of a truly co-opetitive economic landscape, in which ecosystems amplify these tensions and create amazing new ways to improve our world.
It will be exciting to watch and participate.