Things Are Changing
I think we all know things are changing. Things have changed with the Internet, things have changed with social media, and things are continuing to change. What does that mean? Let’s go back in history.
We had the Industrial Revolution. We went from an agrarian type of economy to this industrial economy. At one point, we’re making all these cars in Detroit and that has changed a lot, hasn’t it? We had this Industrial Revolution where we have all these factories and all these stuff going on, and now all the factories are somewhere else.
They’re in China or wherever. We had Ford created the assembly line and he destroyed the horse cart and wagon wheel industries. Did you even know that those industries existed? I mean they’re not very popular anymore.
When is the last time you heard about the wagon wheel industry? It doesn’t exist anymore. It’s gone because of Henry Ford and the assembly line.
That was disruption.
What Does Disruption Look Like?
Then Goodyear started telemarketing and they knocked off a whole bunch of other tire companies. If you’ve ever been to Akron, Ohio, you can see what happened. Depressed area, it’s … I mean I love Ohio and I love Akron, but you drive around and you could see it. They’re still not recovered from tire companies going under. Firestone is gone because of telemarketing. Crazy. PC came along and before that salespeople were using Rolodexes.
You just had your Rolodex, had all your people in it, then the PC comes along, you’re like, “I got all my salespeople on my floppy. I got all my customers on my floppy disk and I can contact then whenever I want. Cool.” PC destroyed the Rolodex. Now, we’ve got Salesforce. All that stuff is changed.
Google turned the yellow pages into a really effective doorstop or maybe a seat, a booster seat for short people like me. Google has displaced the yellow pages and they’re still trying to scramble to figure a good revenue model out. I mean companies like that had tried to sell Google AdWords services at a certain point. Netflix pretty much killed Blockbuster.
Blockbuster Video is gone. I mean if you’re a certain age, you probably don’t even remember being able to go to Blockbuster, Like Borders was shut down by Amazon.
Borders made the mistake at a certain point of sending all their web traffic to Amazon. They’re like, “If you want to buy online, just go to Amazon.” Completely different company, why would you send your traffic to another company? Ah, okay, but Barnes and Noble succeeded and survived business copying Amazon a little bit. They created the Nook just like the Kindle.
People now have a ton of smartphones. Now, if you go to a live event, people aren’t just watching it, they’re filming it on their thing.
Make sure you film a copy of this concert that you’re never going to watch again. It’s going to be a horrible version of the concert that you’re never going to watch. Everybody is taking a horrible video of a concert that they’re never going to watch, whatever. We have all those things now.
Social Marketing Is Disrupting Every Industry
Everything has changed. We got social marketing; we’ve got Facebook marketing; we’ve got a lot of mobile changes. Finally, mobile is huge and a lot of Facebook ads, if you don’t choose specific desktop placements, like maybe 90% of your Facebook ads are going to show up on mobile. That’s a huge change. Things have changed dramatically.
If you watch that movie with Tom Cruise, Minority Report, there’s a point where he’s walking through a mall and the advertising things like clear glass and they scan his eye and identify him and show him a personalized ad. That’s pretty cool, and there are certain billboards now that can detect who’s on the road. They’re working on that now. The billboards are going to be more customized to show people ads based on who is on the road. Maybe they’ll be connected to your car and all that kind of stuff.
There’s cool stuff around the bend and I personally think that stores are going to have trouble keeping up with Amazon until they create a more personalized experience. I was just at Lowes the other day and I thought, “I need to buy a leaf blower.” I looked at these two and I’m like, “Well, let me look at the reviews. There’s no reviews. I don’t know if these are any good.” I went to Amazon to look at the reviews for them and while I was doing that I discovered they were much cheaper than they were at Lowe’s, so I left Lowe’s and didn’t buy there.
That’s not good news for Lowe’s or Home Depot or any of these places. They need to adapt to the fact that someone can walk in with a smartphone and look up information and then want to leave the store without buying. Very disruptive.
Shiny Object Syndrome
There’s a lot of change constantly happening. Now, this can be a problem too. Though, it can be tempting to say, “Well, we got to get on the next thing. We got to get on all the new things, shiny objects,” and that can be bad. I think it’s bad when there are people out there who are saying you need to be on Snapchat right now, some of the people saying that have stock in Snapchat and they’re not telling you that. That’s not very responsible. There’s like maybe one case study of people making any kind of profit with Snapchat. Some of the advertisers I’ve talked about who are doing Snapchat advertising is not open to everyone and those who’ve been on it, some of them say it’s not worth doing.
Part of the problem with going with super new stuff is it’s not proven yet. I believe there’s like being a late adopter, there’s being an early adopter and then there’s like prudently early, and that’s what I believe in. Like I am a little skeptical and a little slow with certain things. By slow, I mean I was on Facebook doing Facebook marketing in 2011, not in 2009, not in 2010. I’m like a year or two behind it because I want to make sure that it can be profitable for my clients. I’m not going to recommend Snapchat marketing for my clients right now in 2016 because it’s not there yet. It’s not a wise or prudent use of your money, but Facebook is and Google still is for certain things. Although Google has become so competitive that you wouldn’t spend as much money with them now as you would back in 2005.
You have to be smart about which platforms you use based on how mature they are and who’s on them or is your customer on there, and is there a proven system yet for profiting on them, okay, which is why Google and Facebook are the biggest ones right now.
LinkedIn, there are a lot of problems. If you don’t spend more than $30,000 a month, then you can’t get the big enhanced personalized ads. Their self-serve ads are not that effective.
Twitter, a little bit of effectiveness but a lot of work for a little bit of return. Spending a lot of time with Google and Facebook are going to be your biggest best bets.
What’s The Return On Investment?
When you hear about Snapchat or you hear about Blab, suddenly people jump on Blab, they’re like, “This is the next big thing.” I’m like, “How do you know?” I mean you don’t really know that yet. There’s nobody on there. They get mad at me. They’re like, “How can you be a thought leader and not embrace every new thing?” I’m like, “Because I care about profits and ROI.”
What happens to Blab, they changed direction and then Facebook puts out some features that are going to make Blab completely irrelevant when Facebook has two person live video, Blab is dead, okay? All those people that got on Blab and said, “Blab is the next big thing, it’s amazing” were wrong, because they didn’t really know that. They just guessed it was going to be.
That’s not responsible. That’s not responsible, in my opinion.
My job, I think, as a thought leader is to tell you what works really well now and how you do that.
What’s coming down the pike? I can tell you this may or may not turn out but why would you spend all that time and money being an early pioneer, getting shot in the back with arrows or in the front, wherever, getting shot in the head. I don’t know where you’re going to get shot with arrows, but why would you do that? Let some of these people who want to try Blab, who want to try Ello. Like people thought Ello is going to be a Facebook killer. There are a lot of people out there who want to jump on the latest new thing. They don’t know what they’re talking about, okay?
If you want to make money and yourself want to profit, you want to spend your time and your money wisely, you need to make sure that there are case studies of companies making money and doing well with that network.
Invest in platforms that are mature. Don’t invest in premature possibilities. Don’t gamble on that.
Invest in mature realities; don’t gamble on premature possibilities.