Google’s market cap is $504.6 billion and Facebook’s market cap is $301.7 billion. A USA Today article, “Facebook market cap hits $308B, worth Intel plus Cisco,” states:
That number, in fact, echoed language in the company’s original prospectus, where Facebook wrote that “total worldwide advertising spending in 2010 was $588 billion,” in the first paragraph of the document section titled “Our Market Opportunity,”
The skeptics from New York – America’s advertising capital – could be forgiven for laughing then.
Facebook sold over $1 billion more in advertising during the period than it did in the same quarter a year ago, driving total revenue up 41% to $4.5 billion.
Google and Facebook are advertising companies, nearly all of their revenue comes from advertising. Yet, they are not very good advertising companies in the sense that the best advertising in based on emotional connections. This is not well understood in Silicon Valley and also why kindergartners are often smarter than business school students.
[Silicon Valley is] a hard place to write about because there’s a lack of emotional content. It’s a cold place.
Google is an old business…. Google has never really been about human psychology.
~ Tyler Cowen
In addition to understanding the importance of emotional connections in advertising, this company will be able to bring together people with very diverse experiences and have them work together in a constructive manner.
Former Twitter Engineering Manager Leslie Miley in his post and his interview with NPR shows that even though Silicon Valley sometimes talk the talk, but they are in reality actually somewhat clueless of the real need for diversity. Miley states:
And yet there were moments that caused me to question how and why a company whose product has been used as an agent of revolutionary social change did not reflect the diversity of thought, conversation, and people in its ranks….
[H]ow I could, in good conscience, continue to work in an organization where the Sr. VP of Engineering could see himself as a technology visionary and be so unaware of this blind spot in his understanding of diversity….
The return of Jack Dorsey has the potential to change the diversity trajectory for Twitter. It is my belief that Jack understands the use case of Twitter better than anyone else, understands how diversity can be additive to growth, and is committed to making that happen.
Jack Dorsey was born and raised in Saint Louis and was in Ferguson during the protest.
A third key to outperform Google and Facebook is understanding the power of tinkering.
Nassim Taleb, author of The Black Swan and Antifragile, wrote in a Forbes article called “You Can’t Predict Who Will Change The World:“
“It is high time to recognize that we humans are far better at doing than understanding, and better at tinkering than inventing. But we don’t know it. We truly live under the illusion of order believing that planning and forecasting are possible. We are scared of the random, yet we live from its fruits.”
You can’t possibly get a good technology going without an enormous number of failures. It’s a universal rule. If you look at bicycles, there were thousands of weird models built and tried before they found the one that really worked. You could never design a bicycle theoretically. Even now, after we’ve been building them for 100 years, it’s very difficult to understand just why a bicycle works – it’s even difficult to formulate it as a mathematical problem. But just by trial and error, we found out how to do it, and the error was essential. The same is true of airplanes.
We also need to recognize that there are many people that speak about diversity but have so little empathy for the people that they are claiming to help.
In our interview with Robert Egger, founder of DC Central Kitchen and LA Kitchen, we quoted him saying:
Innovation is based on government policy and one problem being addressed by Donahue Peebles is the lack of government contracting opportunities for Blacks and Latinos in New York City. While Blacks and Latinos make up about 54 percent of the New York City population, they only received 0.43 percent ($59.9 million) of the of the $13.8 billion in city contracts given out in fiscal year 2015, according to a report from Comptroller Scott Stringer.
Don’t just say that black unemployment is four times that of whites. Say that black businesses only get 2 percent of the $1 trillion of black buying power, and then say that black businesses are the greatest private employer of black people.
~ Maggie Anderson