Marketecture: Get Smart. Fast.
00:29:51 · Eric Franchi, Chris Harihar
[00:29:51] S1: Chris, what you got? [00:29:52] S2: Yeah. I I think it's... I would not bet against Google. I mean, at the end of the day, they... I think they're they're essentially subsidizing all... Like, they're they're they're figuring it out, I think, on the... How to monetize some of the AI features and functionality that they're rolling out. I mean, like, they will take the time to understand how to better roll out, like, ad experiences across that... Across some of those capabilities and features. It just feels like, you know, they're... It's early days on how they're gonna monetize that and at some point they're gonna flip several switches and they're gonna be making like trillions of dollars. Like, feel like we're... Any any like, pullback on Google to me seems very, like, much, like, short term thinking. I mean, like, this is... When you see an an... Anthropic like s one and you understand that Google has so much data, so much opportunity to actually be a bigger player in the AI space just given how entrenched they are, it just seems like they will at some point absolutely crush it in terms of monetization on AI.
00:30:57 · Ari Paparo, Chris Harihar
[00:30:57] S0: I'll make two other points. One is that there's no evidence from any other company that there's a slowdown in advertising. So the macro picture does not appear to be slowing down. Although the YouTube number is only growing 9% is concerning. And then the second point I'll make is that the growth in cloud is just astounding. And I think Google as a public company is a much more attractive company if they have two legs of a stool in the hundreds of billions of dollars a year in revenue as opposed to, like, Meta that's 99% advertising. [00:31:28] S2: For sure. The YouTube members are kind of interesting to me just given how... Like, I I will say YouTube is an ad heavy experience. Mhmm. They are rolling out features every single day for creators, for advertisers. It feels like they've jammed a lot in there. And and I do wonder what's going on in terms of in terms of that slowdown. But YouTube seems... YouTube is is absolutely massive. You see the pressure that it's putting on a business like Netflix. And I feel like they have... They're still possibly scratching the surface on how to make more money off of YouTube and we'll, you know, we'll see. I think more premium programming is... You know, like there's gonna be more investment on that front. We'll see. But YouTube, it's kind of interesting just given what the experience looks like today.
00:31:28 · Chris Harihar, Ari Paparo
[00:31:28] S2: For sure. The YouTube members are kind of interesting to me just given how... Like, I I will say YouTube is an ad heavy experience. Mhmm. They are rolling out features every single day for creators, for advertisers. It feels like they've jammed a lot in there. And and I do wonder what's going on in terms of in terms of that slowdown. But YouTube seems... YouTube is is absolutely massive. You see the pressure that it's putting on a business like Netflix. And I feel like they have... They're still possibly scratching the surface on how to make more money off of YouTube and we'll, you know, we'll see. I think more premium programming is... You know, like there's gonna be more investment on that front. We'll see. But YouTube, it's kind of interesting just given what the experience looks like today. [00:32:11] S0: And now we don't have in the notes, the show notes, the... What I think is really big news, which is that Instagram's going to be doing long form content and coming to your TV. You know, this is something we talked about in our annual predictions episode, Eric. We were thinking YouTube... I mean, Meta was gonna get into... I was thinking Meta was gonna get into CTV as a... As an ad network. We knew they were doing something, but I I think they have a very viable opportunity to displace some YouTube viewership, with long form content, you know, broadcast on a... In an app on a TV.
00:32:11 · Ari Paparo, Eric Franchi, Chris Harihar
[00:32:11] S0: And now we don't have in the notes, the show notes, the... What I think is really big news, which is that Instagram's going to be doing long form content and coming to your TV. You know, this is something we talked about in our annual predictions episode, Eric. We were thinking YouTube... I mean, Meta was gonna get into... I was thinking Meta was gonna get into CTV as a... As an ad network. We knew they were doing something, but I I think they have a very viable opportunity to displace some YouTube viewership, with long form content, you know, broadcast on a... In an app on a TV. [00:32:45] S1: Absolutely. And we might give you that prediction by the way, because, you know, like, getting the consumer app and getting that at scale, like, is the way you build a a big CTV business. On the meta front before we get into the other stuff, Chris, are you a Muse guy? Yes or no? [00:32:59] S2: Love Muse. Muse is Muse is actually [00:33:02] S1: Interesting. In [00:33:03] S2: in in the time that I've like played with AI tools, ChatGPT was like, when I first wrote a press release for me or Claude, was like holy shit, like this actually worked. Muse is the other moment for me where I've I've... I was... I'm just blown away. I use Muse more than... Possibly more than any other AI platform right now on a daily basis. It it is mind boggling how much it can do and how good it is at... From a harness perspective in terms of understanding and remembering tasks on an ongoing basis. It's it's shocking to me how good it is.
00:33:03 · Chris Harihar, Eric Franchi, Ari Paparo
[00:33:03] S2: in in the time that I've like played with AI tools, ChatGPT was like, when I first wrote a press release for me or Claude, was like holy shit, like this actually worked. Muse is the other moment for me where I've I've... I was... I'm just blown away. I use Muse more than... Possibly more than any other AI platform right now on a daily basis. It it is mind boggling how much it can do and how good it is at... From a harness perspective in terms of understanding and remembering tasks on an ongoing basis. It's it's shocking to me how good it is. [00:33:38] S1: You might need to do a call with our friend Ari over here. [00:33:40] S0: Yeah, I might need a tutorial, I just... I'm just having a hard time with it. [00:33:44] S2: I have it sends me talking points for for conversations with... My wife doesn't know this, but every day at 5PM sends me talking points for conversation for conversations with my wife that night, where we talk about our daughter because it's it's ingesting all of these school emails, and it's putting things on my calendar and it's it's in... From a work perspective, it's hugely helpful. It runs our daily monitoring for a number of our companies at this point that we're working on. It's it's fascinating how good it is.
00:33:44 · Chris Harihar, Eric Franchi, Ari Paparo
[00:33:44] S2: I have it sends me talking points for for conversations with... My wife doesn't know this, but every day at 5PM sends me talking points for conversation for conversations with my wife that night, where we talk about our daughter because it's it's ingesting all of these school emails, and it's putting things on my calendar and it's it's in... From a work perspective, it's hugely helpful. It runs our daily monitoring for a number of our companies at this point that we're working on. It's it's fascinating how good it is. [00:34:10] S1: Let's move on. Microsoft. Won't spend too much time on this one. Basically, Microsoft kinda advertising business search is... Search and, you know, ads like LinkedIn and and Bing, growing basically the same rate as Google, 12%. So less than half as much as Meta. But the story here with Microsoft similarly to Google is the cloud. Azure up 48% year over year, just, you know, big numbers. So to your point, you got two legs in the stool. There's, you know, I think a strong story to be to be said here. And Microsoft just wanna keep going. [00:34:43] S0: I'd love to learn more about their ad business. It seems like a big agglomeration of random things. Have Bing, the old app Nexus, like, just don't know what what's going on there. [00:34:52] S2: They've got what the... They've got games in there. It's like, what is happening there?