This presentation from the AMA Milwaukee Expert Series was presented to Milwaukee-area marketers on August 16th, 2016.

1. How Google, Amazon and
Facebook are Changing
Digital Marketing
Bill Wagner
President, AMA Milwaukee
Director, Product Marketing, ARI Network Services Inc.

2. About Bill
• Chicago transplant, Marquette alumnus,
Long-time marketer
• Have done a bit of everything: MarCom,
Research, Digital, E-Commerce, Strategy,
Client/Agency, etc.
• Currently providing digital marketing for
over 7,500 customers around the world
@milwagner
Note: all opinions and forward-looking statements in this presentation are my own

4. The pace of change will never be
slower than it is now… and
now… and now… and now…
- Raphael Louis Vitón, Maddock Douglas
AMA Keynote Lunch on Innovation, 2014

5. It took electricity over 30 years to reach 80% of American households
It took the Cell Phone less than 10
NYTimes, Diffusion Rates of Technologies, 2006

6. KPCB State of
the Internet,
2016

7. KPCB State of
the Internet,
2016

8. dis·in·ter·me·di·a·tion
noun: disintermediation;
reduction in the use of
intermediaries between producers
and consumers, for example by
investing directly in the securities
market rather than through a bank.

10. KPCB State of
the Internet,
2016

11. While Amazon has put Walmart on the defensive and
is worth 59% more on the stock market,
Walmart is actually 647% more profitable than
its online rival.
Other companies with greater profits than Amazon:
Home Depot, CVS, Target, Walgreens, Lowe’s, Priceline,
Costco, TJ Maxx, and Kroger

12. Blackrock is the world’s largest
asset management firm
(that most people have probably
never heard of)
They control a fund with over
$4.6 trillion dollars in it…
and it actively seeks technological
disintermediation opportunities

13. KPCB State of
the Internet,
2016

14. Facebook
Market Cap: 350 Billion Dollars

15. FB is growing more than 6 times faster than the Dow Jones

16. FB is growing more than 30 times faster than the Nasdaq

17. Amazon
Market Cap: 360 Billion Dollars

18. AMZN is growing more than 10 times faster than the Dow Jones

19. AMZN is growing more than 40 times faster than the Nasdaq

20. Google / Alphabet
Market Cap: 560 Billion Dollars

21. GOOG is growing more than 6 times faster than the Dow Jones

22. GOOG is growing more than 14 times faster than the Nasdaq

23. KPCB State of
the Internet,
2016

26. “Great, what does this any of this
have to do with me and / or my
business and / or my business’
digital marketing?”

27. This is youThis is them

28. Facebook wants to connect
everyone via the internet
Amazon wants to help people
make purchasing decisions
Google wants to organize and
provide all of the world’s data

29. Facebook makes money by
selling impressions to businesses
Amazon makes money by owning
the way people shop online
Google makes money by selling
conversions to businesses

30. Facebook is now a pay to play
platform for business
Average reach of a business post
on Facebook – less than 6%
And, their ad revenue jumped
57% in the last quarter,
fueled by growth in mobile ads

31. “If you could rate everything that happened on Earth today that
was published anywhere by any of your friends, any of your family,
any news source…and then pick the 10 that were the most
meaningful to know today, that would be a really cool service for
us to build.”
- Chris Cox, Facebook’s Chief Product Officer
“Make it indispensable for users, then make it indispensable for
businesses, then make money by charging businesses for it.”
- Sheryl Sandberg, Facebook COO
4% - the percentage of businesses that advertise on Facebook

32. If you want to be a player on Facebook, know that the days of a
free lunch on social media are over.
You’ll have to commit advertising budget and start building skills
and capabilities (or pay for them) around Facebook’s advertising
toolkit for FB and Instagram, or start ramping down your
investment in social media.
And, keep an eye on:
• Facebook Messenger for Business (now powered by AI and Bots)
• Instagram in General
• Facebook as an ISP

33. Amazon has done more to impact
the way the average American
consumer feels about your
business than any other company.
Amazon provides amazing
customer service and can do it at
a loss because of their market cap
And, they continue to innovate in
adjacent spaces

34. “We don’t make money when we sell things. We
make money when we help customers make
purchase decisions.”
- Jeff Bezos

35. Realize that you’re competing with Amazon, even if you’re not
directly competing with Amazon.
Every additional website visit to Amazon.com, conversation with
Alexa, Prime purchase or download impacts the way your
customers feel about the way your business creates the customer
experience.
And, keep an eye on:
• Amazon Machine Learning for Analytics
• Amazon Alexa
• Advertising-subsidized experiences

36. Google is an advertising company.
Not a smart phone company, not a
driverless car company, not a
mapping company, not a search
engine, not a non-profit.
Google is leveraging powerful
machine learning platforms to
organize, control and disseminate
information at unprecedented scale

37. “Google’s mission is to organize the world’s
information and make it universally accessible and
useful.”
- Google’s Mission Statement

38. Realize that Google controls the way the average American
interacts with data on the internet.
Google is compiling massive data warehouses that are location-
aware and they are building complex artificial intelligence that can
determine intent with speed and accuracy… and it is constantly
improving.
And, keep an eye on:
• Google My Business
• Google Store Visits
• Google Project fi

41. A few facts about Google and
Facebook’s current revenue strategy
Facebook and Google want to control all of the internet’s traffic
so they can monetize that traffic by selling advertising
They’re continuing to grow really fast and need more and more
opportunities for revenue
So, they’re pushing further down the market with solutions for
smaller and smaller businesses
Both Facebook and Google would love to get more business
content inside their ecosystems
And, both Facebook and Google have successfully made a pact
with users to get their data in exchange for free services that
make their lives better/easier/etc. 41

42. “Ultimately, it's good that there are a whole lot of
design decisions that have become standardized.
But what that means is designers' jobs are changing
— what they're going to focus on is how the thing
works and less about how it looks.
This is what enables you to create products that can
scale to meet billions of people.”
- Jon Lax, Director of Product Design, Facebook

43. Let’s focus on Google
• SEO is dead, long live SEO
• Organic SERP is evolving rapidly thanks to RankBrain, the
KnowledgeGraph and more
• Page speed, schema.org tags, and machine to machine
communication are the new “Coin of the Google Realm” for SEO
• Local businesses are the target for the next wave of ad
revenue and GPS and GMB are acronyms you need to know
• Google sort of snuck back into social when no one was looking
• Apps are dead, long live Apps
• PWA and AMP are acronyms you need to know

44. Google - SEO
• SEO is now all about intent driven by use cases
• It is a paradox in that it has gotten both less complex and more
complex at the same time
• Easier - Content marketing, usability, satisfying intent and use cases
• Harder - You have to stay on top of highly technical tools like JSON,
schema.org and JavaScript
• 10 blue links in SERP is a thing of the past (only 3% of latest Moz
test)
• Driven by Mobile (right rail ads example)
• Driven by Local (Google My Business dominates SERP for buying intent)
• Driven by Knowledge Graph (“How Tall Was Abe Lincoln?”)

45. Google - Local
• Google is now the 400lb. Gorilla for local info
• Yelp, Trip Advisor, etc. woke the sleeping giant, who took Google+
and turned it into the Yellow Pages on steroids
• Google My Business is absolutely critical if you’re brick and mortar
• Will increasingly be the first thing most people see about your business
• Google is actually in your store right now (through iPhones and Androids)
• The next wave of advertising tools will be focused on local business
• Ads in Local Search results
• Store Visits
• Ads in Google Maps
• We’re all waiting to see what happens with the anti-trust suit in
Europe

46. Google - Apps
• Apps are evolving into something new
• “The Web is an app”
• Apple went native, Google/Android went native and web
• Lines are increasingly blurry and you now need to hedge your bets across a wider
range of platforms and toolkits
• PWA – Progressive Web Application
• Looks like a responsive webpage
• But it can access “service workers” to behave like an app
• Installs to your home screen like an app
• Speed, speed, speed
• AMP – Active Mobile Pages
• Originally built for news outlets
• Became a nascent internet standard
• Speed, speed, speed

47. “The Trump campaign is not a bad campaign. It’s
not a messed-up campaign. It’s not a
dysfunctional campaign. There is no campaign.
Everybody that’s done this for a living and got
paid to do it is, like, ‘Oh, my gosh, suppose this
works. We’re all rendered useless.’ He will have
destroyed an entire profession.”
- James Carville

48. Google - Summary
It would suck to get caught off guard by all this stuff, wouldn’t it?
These three narrowly specific examples have a big impact on your:
• Strategic plans
• Resource allocations
• Professional development

50. • The rate of change in the world we live in is accelerating
rapidly
• Money and power continues to consolidate in the hands of a
chosen few (companies)
• Google, Facebook and Amazon have enough funding to
continue disintermediating entire markets
• You need to stay on top of the strategy and direction of these
three giants
• The ‘internet’ will look vastly different within smaller and
smaller time windows
• The opportunity for each of you lies in being ahead of the rate
of change, not behind it

51. Questions?