Stratechery AI's Uneven Arrival
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Jan 13, 2025 Discover the challenging journey SaaS companies face towards their IPO, emphasizing customer relationships and advertising strategies. Explore Procter & Gamble's pivot from precision targeting and its effects on traditional marketing. Delve into the financial shifts caused by major brands boycotting Facebook and the advancements of OpenAI's O3 model, which enhances task adaptation and efficiency. Finally, consider how AI agents may transform workplaces by 2025, highlighting the stark contrasts between nimble startups and traditional corporations in leveraging AI technology.
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P&G Pulls Back on Targeted Ads
- P&G reduced targeted Facebook ads in 2016, finding them less effective than broader reach.
- Their CMO, Mark Pritchard, admitted they "targeted too much and went too narrow."
CPG and Shelf Space
- CPG companies prioritized shelf space, driving brand awareness through mass advertising and coupons.
- Their model, unlike digital advertising, wasn't focused on individual consumers.
Facebook's Individual Focus
- Facebook's strength lies in understanding individual consumers, unlike traditional advertisers.
- The 2020 advertiser boycott barely affected Facebook due to its diverse, long-tail advertiser base.