Elon Musk Criticizes Marketers
At last week's New York Times DealBook Summit, Elon Musk criticized marketers, alleging he was being blackmailed over a controversial post he had apologized for. I was interviewed for The Wall Street Journal story ("Elon Musk’s F-Bombs Make Linda Yaccarino’s Job at X Even Harder") about it where I suggested that if X offered better short-term ROI, Musk's behavior would be less of an influence. Here's my expanded take:
1. Contrary to what some might assume, marketers are intensely focused on ROI. We invest where we see tangible returns. The reality of the business pressures we face means that if X could compete with the likes of Google and Meta in advertising performance, it wouldn't be facing a loss of advertisers. This principle was evident when advertisers swiftly returned to Meta after its 2020 boycott.
2. Furthermore, in the current political, economic and social environment, marketers are understandably wary of any type of risk. The mere possibility of board members questioning our choice to advertise on a platform led by a volatile figure is enough to question the spends. This caution is natural and to be expected.
3. However, the importance of X as a platform should not be underestimated. It holds a unique position in society, without a clear replacement. While many of us wish for its success, the responsibility for its shortcomings or the possibility of bankruptcy lies elsewhere (Musk said that advertisers would be to blame if X failed).
4. For better marketing outcomes, X needs to improve its AI driven recommendation systems. It'll drive more large advertisers to the platform while fueling an advertising renaissance among smaller advertisers. Perhaps Musk can lead this change? If anyone has proven to be a product genius and deeply competent around AI in the last decade, it has been Musk.
5. Musk's abrasiveness especially his rash social media posts, only adds to the company's challenges. The kindest interpretation might be to view them as foolish missteps. As the world's richest individual, Musk's standard of conduct needs to be higher. It's on him to figure that out and he needs to.
6. Regarding Linda Yaccarino, I wonder whether gender biases influence the conversation around her. Her remarkable career is evidence of her capabilities. Her decision to join X, fully aware of its challenges, was her choice. She doesn't need anyone telling her whether to stay in role or to resign. #elonmusk #wsj #advertising #ai #x
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What I’m writing about this week
I'm in the process of writing my third book, centered on artificial intelligence in the realms of business and marketing. This week, I'm writing a chapter on Behavioral Segmentation and Lead Scoring within the AI context. Stay tuned to this newsletter for further updates and insights from my forthcoming book.