Bob Iger of Walt Disney on Digital Business Models

Summary

The transcript covers an insightful discussion on the evolving landscape of online advertising and behavioral marketing. The speaker emphasizes the potential for improved monetization through targeted advertising, driven by technology and user behavior tracking. They highlight the contrasting attitudes toward privacy between younger and older generations, pointing out that younger people are less concerned with online data sharing. The speaker also references successful business models, such as iTunes, Amazon, and Hulu, while touching on corporate responsibility and sustainability as key considerations for global companies in the future.

Takeaways

• 😀 There's potential to improve monetization from online advertising by leveraging technology for better tracking and targeting of consumer behavior.
• 😀 Direct marketing is growing, with more money being spent on it than traditional advertising in the past five years, showing a shift towards behavior-based advertising.
• 😀 Behavioral tracking can be used to serve highly relevant ads, such as showing targeted automobile ads to users who have been researching cars online.
• 😀 Despite privacy concerns, younger people (like the speaker's children) seem less worried about sharing personal information online and are more open to it.
• 😀 The speaker believes that technology will enable more precise and effective behavioral tracking, making it valuable for both marketers and consumers.
• 😀 Companies that excel in user interface design, like iTunes, Amazon, and American Express, are seen as leaders in creating seamless consumer experiences.
• 😀 There is respect for competitors like News Corp and NBC for their work with Hulu, showcasing a successful model for online media streaming.
• 😀 Blizzard's subscription model with World of Warcraft is praised as a significant achievement in the gaming industry.
• 😀 Corporate social responsibility and sustainability are increasingly important in today's business environment, with major companies like Walmart leading in sustainability efforts.
• 😀 The speaker is optimistic about the future of marketing and sees ample opportunities in the evolving landscape of online advertising and direct marketing.

Q & A

What is the speaker's view on monetization opportunities in the online space?

The speaker is optimistic about the potential for improved monetization through online advertising, particularly by leveraging technology for behavioral tracking and direct marketing. They believe that targeting consumer behaviors can increase the return on investment for advertisers.

How does the speaker describe the role of behavioral tracking in advertising?

Behavioral tracking allows advertisers to monitor consumer actions online and target them with relevant ads based on their interests. For example, if a person has researched different automobiles, they could be served an ad for a car, increasing the likelihood of a sale.

What does the speaker think about privacy concerns in online advertising?

The speaker acknowledges privacy concerns but suggests that younger generations, particularly those under 30, are less concerned about sharing their personal data online. They believe that there is an opportunity to utilize this data for marketing purposes.

Which companies does the speaker cite as examples of getting user experience right?

The speaker highlights **iTunes**, **Amazon**, and **American Express** as companies that excel in user experience, particularly in terms of user interface and customer relationship management.

How does the speaker view the impact of direct marketing on the advertising landscape?

The speaker sees direct marketing, especially through the tracking of consumer behavior, as a rapidly growing area. They believe that this approach has significantly outpaced traditional advertising spend and offers vast opportunities for marketers.

What are the speaker's thoughts on sustainability and corporate social responsibility?

The speaker emphasizes that sustainability and corporate social responsibility are critical for large companies today. They believe that any global company must focus on these issues to remain competitive and responsible.

Who does the speaker think gets it right when it comes to subscription-based models?

The speaker commends **Blizzard** for its work with **World of Warcraft** and mentions it as a great example of a company that understands and executes the subscription-based business model successfully.

What does the speaker think about the future of online marketing?

The speaker is very optimistic about the future of online marketing, especially with advances in technology that allow for better behavioral tracking and more personalized advertising. They believe these developments will lead to more effective monetization for businesses.

How does the speaker compare the importance of marketing to the traditional business models they use?

The speaker notes that the company spends a significant amount on marketing, just as much as they do in traditional business models like selling movies, DVDs, and theme park experiences. This shows a strong focus on the value of effective marketing.

What role does consumer behavior play in the speaker's approach to marketing?

Consumer behavior is central to the speaker's marketing approach. By understanding and tracking consumer activities, businesses can serve personalized ads, creating greater value for both the consumer and the advertiser. The speaker believes that tracking behavior is key to improving marketing results.