Media Curmudgeon

« Amusing Oursleves to Death With The Help of Fox | Main | NY Times, Half In and Half Out Of the Kitchen »

March 09, 2007

Guess What, Google, Media Is Hard

The investment banking firm Bear Stearns had their annual Media Conference earlier this week in Palm Beach where a bunch of top media moguls answered questions from Bear Stearns clients. I listened to several sessions on the conference’s website and thought Disney’s Bob Iger came across better than anyone else I listened to.

The reason I listened to the streaming audio of the speakers was because I read the following headline in Advertising Age: “Why Google’s Schmidt Finds Media Harder Than Technology.” The subhead was “And What Other Moguls Had to Say at Bear Stearns Media Conference.”

I was intrigued by the headline and wanted to find out more about what Eric Schmidt had to say after I read Ad Age’s summary of his remarks written by Claire Atkinson. Schmidt said, “I have learned that as a part of being a player in the media industry, the way one negotiates is everything is leaked and you are sued to death. This is news to me. It may be because there’s a lot of lawyers or because that the way we are running the business, I don’t really know. It’s not normal in the technology industry, I can assure you.” I wanted to hear more about “why Schmidt finds media harder than technology,” because his quote sounded like a dumb thing to say.

So I listened to what Schmidt (CEO of Google) had to say. I also listened to Bob Iger (CEO of Disney), Jeff Bewkes (COO of Time Warner), and Les Moonves (CEO of CBS). I learned a lot—not only about the strategies and management styles of these media moguls, but I got a sense of them as people, which was cool because I would never get to meet them face to face.

When listening to Eric Schmidt, I realized that Ad Age had picked the wrong lead—one that would titillate a reader but that didn’t capture the essence of Schmidt’s remarks. It was lazy, misleading reporting, in my opinion, but, of course, I could have been a lousy listener (not the first time I’ve been accused of that).

Here’s what I think Schmidt was trying to get across: Google is trying to create a new way of doing targeted advertising. He asked the audience, “Did anyone read a newspaper this morning?” And he then asked an even more leading question, “Does anyone remember an ad?” Of course no one was willing to be put on the spot or spoil Schmidt’s point. He then went on to say that TV and radio advertising was “completely untargeted” and “highly inefficient.” He said that “no one else is targeting media advertising like we’re trying to do.”

Schmidt also talked about how ads on Google were more measurable than traditional advertising. His two themes that he hammered home were that Google ads were more targeted and more measurable, and he made sure he positioned newspapers, television, and radio (the three biggest media in ad revenue) negatively.

Schmidt was introduced as Dr. Eric Schmidt (he has a BS from Princeton and an MS and PhD from Cal Berkley) and he sounded like a bright, arrogant geek that was talking down to his audience from a $4.8 billion pedestal (the 129th richest person in the world). Even though he is CEO and the adult in the room, he still works for Google’s two young founders, Larry Page and Sergey Brin, who are mathematicians. He talked as though Google were in the media business, but he clearly didn’t understand it. His silly remark about being sued to death was probably said in pique at being sued for copyright infringement by content providers who wanted to get paid for content being posted on Google’s YouTube (understandably).

You could tell he was a scientist (an electrical engineer, in which a lot of math is involved) because he was pushing targeted and measurable advertising, since that’s what mathematicians do, they measure stuff. If it isn’t measurable, if you can’t put a number on it, it’s no good. He never once mentioned creativity, impact, or engagement. He was a boring, arrogant stiff who I would pay not to hang out with, and he was introduced as “Dr. Eric Schmidt.”

The CEO of the Walt Disney Company was not introduced as Robert Iger, but as “Bob Iger.” He didn’t go to an Ivy League college (he went to Ithica College) nor have a PhD. He has worked for ABC and Disney his entire career. He was considered a suit by many critics who thought Michael Eisner had named Iger as his successor because Iger would fail, thus making Eisner look good.

Iger’s answers to questions were not arrogant but were, smart, informed, and straightforward. He seemed relaxed, almost conversational, and not defensive. Most important, it was clear Iger understood the media business, especially network television, a business on which Google is trying to encroach because the smart mathematicians from Google believe they know how to do it better. Iger came across as a bright guy who encouraged his people and talked about creativity and building and protecting the Disney brand. I liked him and I'd enjoy hanging out with him.

What the arrogant mathematicians and brains from Google don’t get is that selling advertising to large advertisers is not about math, it’s about relationships. Ad agency buyers and their clients buy from people they like and trust, not from people who talk down to them, bore them with philosophical, goody-goody BS, and tell them they (the mathematicians) know how to do it better.

The reason “Google’s Schmidt Finds Media Harder Than Technology” is not because there are more lawyers initiating lawsuits in the media but because for stiffs it is harder.

I have a feeling if I was introduced to the two of them, Schmidt would ask to be called “Dr. Schmidt” and Iger would say, “Call me Bob.” That’s essentially why Google will fail to sell radio and television advertising—it’s not about math, it’s about relationships, and the nice guy from Ithica College and the good, average street guys like him who Google would never have hired will kick Google’s ass.

Posted by Charles Warner at March 9, 2007 01:31 AM

Comments

Rob C at March 15, 2007 09:55 PM writes:

Post a comment