One of the highlights of many great sessions at Cannes yesterday was seeing thirty minutes of the founder of L2, Scott Galloway, informing us of the fact that brands and the media industry are doomed. The ‘Oligopoly’ formerly known as the ‘Four Horsemen of the Apocalypse’ – Google, Facebook, Apple and Amazon – are going to wreak even more disruption than he had previously predicted in 2017 and beyond.
Here are some choice ‘doom-bites’ from the great man. First up he compared the four to vital organs in the body. Google is the brain and has replaced the supreme being of many faiths. Apparently one sixth of questions asked to Google have never been asked before. Our appetite for divine enlightenment is ever growing. Facebook is love, bringing empathy and connections to our lives. These represent the most important drivers of longevity above genetics and lifestyle, according to Scott.
Apple is sex. It is a way for men to demonstrate their suitability as mating partners by displaying their Apple wares. Make no mistake: Apple is a luxury brand now. It has an iconic founder, is sold in retail temples and uses press and poster ads. Apple’s profit margin sits between Hermes and Ferrari right now.
Last and not least – in fact, last and most scary – is Amazon. Here are some Amazon thoughts for you. Amazon is going after a whole range of sectors: distribution, retail, media content and advertising. Take this astonishing fact: Amazon Prime has signed up 55% of all US households, compared to only 44% who own a gun and 55% who vote. Amazon’s content budget for 2017 is $4.5bn, second only to Netflix with $6.0bn. Let’s end with a really juicy one. Amazon is killing value for brands and will continue to. Voice activated Amazon search will be the killer. According to Scott, all roads will lead to Amazon own label no matter how many times you protest and ask for your favourite brands.
On a more cheerful note, Scott isn’t always right. Last year he predicted Amazon was in trouble as it didn’t have any stores. However, the big point looks pretty unassailable. Making the oligopoly work for brands and not just for themselves is the biggest challenge marketing will have ever faced.
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