The video above is from a conversation at The Recount’s SHIFT event last month, between Nick Clegg, Facebook VP, Global Affairs and Communications, and myself. If you can’t bear to watch 30 or seconds of video, the gist is this: Clegg says “Thank God Mark Zuckerberg isn’t editing what people can or can’t say on Facebook, that’s not his or our role.”
Marketers – especially brand marketers: Too many of you have lost the script regarding the critical role you play in society. And while well-intentioned TV spots about “getting through this together” are nice, they aren’t a structural solution. It’s time to rethink the relationship between marketers, media companies (not “content creators,” ick), and the audience.
If you’ve read Shoshana Zuboff’s Surveillance Capitalism, you likely agree that the most important asset for a data-driven advertising platform is consumer engagement. That engagement throws off data, that data drives prediction models, those models inform algorithms, those algorithms drive advertising engines, and those engines drive revenue, which drives profit. And profit, of course, drives stock price, the highest and holiest metric of our capitalistic economy.
So when an upstart company exhibits exponential growth in consumer engagement – say, oh, 3,000-percent growth in a matter of two months – well, that’s going to get the attention of the world’s leading purveyors of surveillance capitalism.
As the coronavirus crisis built to pandemic levels in early March, a relatively unknown tech company confronted a defining opportunity. Zoom Video Communications, a fast-growing enterprise videoconferencing platform with roots in both Silicon Valley and China, had already seen its market cap grow from under $10 billion to nearly double that. As the coronavirus began dominating news reports in the western press, Zoom announced its first full fiscal year results as a public company. The company logged $622.7 million in revenue, up 88 percent from the year before. Zoom’s high growth rate and “software as a service” business model guaranteed fantastic future profits, and investors rewarded the company by driving its stock up even further. On March 5th, the day after Zoom announced its earnings, the company’s stock jumped to $125, more than double its price on the day of its public offering eleven months before. Market analysts began issuing bullish guidance, and company executives noted that as the coronavirus spread, more and more customers were flocking to Zoom’s easy-to-use video conferencing platform.
But as anyone paying attention to business news for the past month knows, it’s been a tumultuous ride for Zoom ever since. As the virus forced the world inside, demand for Zoom’s services skyrocketed, and the company became a household name nearly overnight. Zoom’s “freemium” model – which offers a basic version of its platform for free, with more robust features available for a modest monthly subscription fee – allowed tens of millions of new users to sample the company’s wares. Initially, Zoom was a hit with this new user base – stories of Zoom seders, Zoom cocktail parties, and even Zoom weddings gave the company a consumer-friendly vibe. Just like Google or Facebook before it, here was the story of a scrappy Valley startup with just the right product at just the right time. According to the company, Zoom’s monthly users leapt from 10 million to more than 200 million – an unimaginable increase of 2,000 percent in just one month.
If predictions are like baseball, I’m bound to have a bad year in 2019, given how well things went the last time around. And given how my own interests, work life, and physical location have changed of late, I’m not entirely sure what might spring from this particular session at the keyboard.
But as I’ve noted in previous versions of this post (all 15 of them are linked at the bottom), I do these predictions in something of a fugue state – I don’t prepare in advance. I just sit down, stare at a blank page, and start to write.
Those of us fortunate enough to have lived through the birth of the web have a habit of stewing in our own nostalgia. We’ll recall some cool site from ten or more years back, then think to ourselves (or sometimes out loud on Twitter): “Well damn, things were way better back then.”
Then we shut up. After all, we’re likely out of touch, given most of us have never hung out on Twitch. But I’m seeing more and more of this kind of oldster wistfulness, what with Facebook’s current unraveling and the overall implosion of the tech-as-savior narrative in our society.
Mark Zuckerberg is in a crisis of leadership. Will he grasp its opportunity?
It seems like an eternity, but about one year ago this Fall, Uber had kicked its iconic founding CEO to the curb, and he responded by attempting a board room coup. Meanwhile, Facebook was at least a year into crisis mode, clumsily dealing with a spreading contagion that culminated in a Yom Kippur apology from CEO Mark Zuckerberg. “For those I hurt this year, I ask forgiveness and I will try to be better,” he posted. “For the ways my work was used to divide people rather than bring us together, I ask for forgiveness and I will work to do better.”
More than one year after that work reputedly began, what lesson from Facebook’s still rolling catastrophe? I think it’s pretty clear: Mark Zuckerberg needs to do a lot more than publish blog posts someone else has written for him.
Well, Walmart vs. Amazon is all about big business – a platform giant (Amazon) disrupting an OldBigCo (Walmart and its kin). Over the past two decades, Amazon bumped Walmart out of the race to a trillion-dollar market cap, and the OldCo from Bentonville had to reset and play the role of the upstart. The Token Act levels the playing field, forcing both to win where it really matters: In service to the customer.