The Works’ Douglas Nicol: “Why The US May Just F@ck Up Its Global Tech Leadership”
Douglas Nicol is a partner at Sydney creative agency The Works and is presently neck-deep in all things new and techy at SXSW. However, judging by this cranky column, he’s not particularly loving what he’s seeing over their in Texas…
On the surface things look just fine, the tech industry gathers for its annual SXSW shindig here in Austin, Texas. The coders, ad execs and social media hipsters happily queue together to get into the convention center, amazing speakers preach the tech gospel, and everyone has an invite to a boozy party.
But dig beneath the surface and there are significant global changes that will send shockwaves through the industry because the future of tech may not be owned by the USA
There are four forces at play that could mean that future tech leadership could well come from China.
1. Trump is an AI denier
While Donald Trump tries in vain to revive the manufacturing sector in the US, there is a lack of government leadership in the US on new tech and AI. While America is distracted China is winning on AI development. Former WPP China boss Bessie Lee spoke on this at SXSW. They have more AI patents filed than the US, more skilled workers to fuel the tech sector (4.7 million STEM graduates per annum), more freely available data for machine learning in AI. The Chinese government has a national AI development policy that sets KPIs for AI business growth in every city and district in the whole country. Meanwhile, the US President tweets nonsense.
2. Tech giants in the US are under threat in 2020
One of the leading Democrat candidates for the 2020 presidential election, Elizabeth Warren made an astonishing policy statement at SXSW. She intends to break up the cozy monopoly of the big tech companies like Facebook and Google. She thinks they exhibit monopolistic behaviours and need to be pulled apart. This would mean, for example, that Facebook might have to be split up from Instagram. Certainly, it’s true that there are very few US startups in sectors the big tech companies play in, as VC money does not like the risk of their start up being squeezed out by the big guys. If this break up happens we will witness years of distraction in the US tech industry as the tech titans split into smaller enterprises.
3. Privacy – Facebook has lost trust in the US
Guess how many paid ads the average WeChat user in China sees in 24 hours? Precisely two ads. Really. They are well targeted, highly personalised and infrequent. Compare that with your Facebook newsfeed. China has no privacy policies and a culture that is accepting of personal data being shared by everyone including government. Yes, it is a totalitarian regime with a questionable track record, but the fact is that in the marketing tech space China is stealing leadership in future thinking in areas from research groups moderated by AI chatbots, through to AI programmatic media deployment and voice-based customer service. Meanwhile in the US, the California parliament is about to enact legislation that allows individuals to sue companies like Facebook in the event of a data breach (previously prevented under Facebook T&Cs when you sign up). US law firms are licking their lips in anticipation of years of legal complexity and class actions in the tech space.
4. Social media finds a new home
The biggest global hit in social media in the last six months is without doubt the TikTok app, with over 80 million US downloads and 3.8 million US downloads in October 2018 alone. Globally the app, which showcases user generated 15 second short form videos of a user’s lip synching or athletic feats, has had over 1 billion downloads. And the owner of this app? Not a geeky Silicon Valley man-child but a Chinese company called Bytedance. The TikTok user data gathered is used to fuel sophisticated AI media targeting on and off the platform. Don’t be deceived by the fun exterior ByteDance is only three years old and is turning into a social media giant.
This all has the potential to be a time bomb for the US tech industry. For us in Australia it means we need to stop the cultural cringe of always looking to the US and UK for our tech thought leadership and inspiration and instead start looking north to The Peoples Republic. The reality of the China threat to the US is starting to sink in with the 75,000 who have made the trip to Austin this week.
Latest News
The Mars Agency Announces Latest Findings Of Retail Media Report Card
The Mars Agency has developed a scorecard that assesses the capabilities of leading platforms across key criteria required to optimally plan, execute, and measure effective retail media programs. The scorecard aims To help brands efficiently evaluate their spending options across retail media networks in Australia (and New Zealand). With spending on retail media advertising in […]
‘It’s The Lesser Of Two Evils’ – NRL Eyes US Betting Market As Aussie Regulators Circle
US betting firms will be delighted by the circa 50,000 Americans who could soon watch the NRL on their favourite app.
A-League In Deep Discussions With New Partner To Keep Games On TV After Production Company Enters Administration
The A-League's insatiable appetite for scoring own goals continues.
TV Ratings (27/03/2024): Jungle Members At War Over Concealed Lipstick
A heated argument between two jungle members did the numbers for Ten last night, with I’m A Celeb obtaining a total national reach of 1,282,000. Fans were delighted as Candice Warner and influencer Skye Wheatley got into it over a stick of lipstick, leading Warner to dub the Instagram star “selfish.” Wheatley, best known for […]
Is The Australian Music Industry In Trouble? Inquiry Launched Following Splendour Cancellation
Earlier this week, an inquiry was launched into the challenges and opportunities currently facing the Australian live music industry in the wake of multiple festival cancellations. On 25 March 2024, the Minister for the Arts, the Hon. Tony Burke MP, asked the Committee on Communications and the Arts to inquire into and report on the […]
Liana Dubois, Leandro Perez, Aimee Buchanan & More Gather For Inaugural Compadres Leadership Event
Didn't get the invite? Perhaps you're not as important as you thought.
Cathay Captures The Unforgettable Thrill Of Cathay/HSBC Hong Kong Rugby Sevens, Via Publicis
Nobody does rugby like Hong Kong, apparently. Certainly nobody does it as badly as Australia.
Cocogun Nabs Christine Watts, Kirsty Reynolds & Shev Tan Bolstering Management & Creative Teams
Cocogun bolsters its team with new hires. Committed to purchasing a bigger sofa, too.
The Media Store’s Jacquie Alley & Sam Cousins Take The Plunge With Pro-Bono Work For Cure Cancer
B&T chats with The Media Store bosses about their great pro-bono work and sponsored swim.
Hawke’s Brewing Co. Taps Rocket Comms For PR Agency Following Competitive Pitch
We're expecting Rocket Comms productivity to crash in spectacular fashion following this win.
Spotlight On Sponsors: Patties Serves Up A Taste Of Home For Olympians & South Sydney Rabbitohs Recommit To Gambling Reform
While the Rabbitohs commits to gambling reform, B&T reckons the team should commit to a decent auto sponsor.
Google: “Inevitable” That Bad Actors Will Abuse Ads Platform As Advertiser Account Suspensions Double
Google maintains it's simply impossible for it to entirely stop bad people placing & paying for ads using its service.
Quantcast Expands APAC Sales Team With Appointment Of News Corp Account Manager
No pressure at all when you are appointed as a client success manager.
Publicis Sapient Tests Microsoft-Powered Gen AI Search Tool With Homes & Villas By Marriott Bonvoy
Given Gen AI's record for mangling stuff, B&T cannot see the problem with letting it decide your next holiday digs.
Volkswagen & DDB Group’s “Roo Badge” To Reduce Kangaroo Related Road Collisions
Watch out for RooBadge as Cannes Lions' most debated campaign this year.
Twilio Launches Unified Profiles & Agent Copilot Features To Boost Productivity & Engagement
Agent Copilot sounds like James Bond's less interesting cousin.
Reebok & Honda Among New Clients For onetwo agency
OneTwo finally lives up to its name with this double billing.
Ogilvy Report: Throw Out The Social Strategy Rule Book, The Rules Of The Past No Longer Apply
B&T was puzzled that all 'influencers' aren't, effectively, 'virtual', but here we are.
WhiteGREY & AKQA Merge In Australia, Lee Simpson Departs
Fortunately, the combined agencies aren't opting for a trite portmanteau for the new name.
Splendour In The Grass 2024 Music Festival Cancelled!
Music fans all over the country reportedly relieved they can pack away their rain coats and gumboots for another year.
TV Ratings (26/03/2024): “Fairy Bread, F***ing Disgusting”: Gordon Ramsay Slams Aussie Food In Food Stars Launch
Ramsay not one for mincing his words, even when it comes to minced meat pies.
Paramount+ International Boss Doubles Down On Aussie Content, Says Ad-Tier will Grow Audiences And Revenue
Good news as Paramount will not be binning I’m A Celebrity for re-runs of Frasier.
Brent Smart: Telstra Pushing For 50-50 Brand-Performance Split But Warns Numbers ‘Won’t Look Great’ Initially
The old brand vs performance debate continues. But here, Brent is firmly sitting on the fence.
Crowded House, Tones And I & Dom Dolla Win Big At The Shure Rolling Stone Music Awards
B&T staffer reports back with humdinger of a hangover & feeling seriously uncool after mixing with music types.
Opinion: Dyslexia “A Hidden Gem” For Brands & Agencies
Dyslexics offer underappreciated benefits in the corporate field, according to this op-ed.
David Jones Taps Criteo To Power Online Retail Media Arm
Want to see ads for things you probably can't afford? David Jones has got you covered with new retail media play.
oOh!media Sets Up Team To Target Business Audiences Across Airports & Offices
oOh! wants brands to harass you every minute of your next business trip.
QMS Launches Australian First DOOH & TV Partnership With Samba TV
Samba TV, of course, is not a channel dedicated to dancing. Much to our dismany.
Slew Of New Hires At Amplify
Four new faces join the Amplify offices. Team say desk scarcity becoming "acute".
Adobe Announces Content Authenticity Initiative Expansions To Counter Deep Fakes
Try as they might to enlighten them, we suspect Trump supporters will continue to watch and believe Fox News.
The PR Group Appoints TechCrunch Senior Reporter Catherine Shu As Director Of Content & Media
Catherine Shu makes the bold leap from journalism to PR. Says inevitable pay bump was "unrelated".
HERO Nabs Ebony Santin From AMPR
Rumours Santin cleared out the stationery cupboard before departing are as yet unconfirmed.
Karena Noble Checks Out Of EVT Hotels & Resorts To Launch Comms Consultancy
Noble still managed to squeezed in a continental breakfast before departing.
Canva Acquires Design Platform Affinity To Bring Professional Design Tools To Every Organisation
Canva & Adobe face off continues. We're not picking sides but keenly aware that Canva's office is next door to ours.
“Lean On Our Team To Help You Find An Audience”: Why Understanding Audience Engagement Is Essential In Journalism
Engaging the audience is critical to journos, apparently. We'd thought self-loathing & alcoholism were key.
Adobe Summit: Major Gen AI Developments, Data Concessions & Partnerships
What happens in Vegas stays there. Unless it's the Adobe Summit and then you get to read about in B&T.