Chloe Popescu 

Welcome back everyone. We've got two sessions less left on this stage and our next session will feature two companies that are longtime CES and species. Space partners. This will be moderated by Allison Murphy, Senior Vice President of ad innovation at the New York Times. And our panelists will be Mark Reed CEO of WP and Philip Schindler SVP and Chief Business Officer at Google. They will discuss business transformation and emerging trends and marketing. Please join me in welcoming them to the stage.

 
Allison Murphy 

So welcome. Thank you. I am delighted to be here at the sea space and particularly, to get to be in conversation with two leaders of some of the most influential companies in marketing and advertising today. So what better conversation could we have here at CES? I wanted to begin I thought about beginning with a softball, but instead we want to begin with a big question, which is here we are. We're at the end of the decade. We're in the middle of this festival of innovation and new ideas. And so I'm interested in what's keeping you up at night, not from an anxiety perspective, not the things that we all worry about as business leaders, but that you are excited about and that you see as potential in the years ahead.

 
Mark Read 

Allison, thank you. So I just actually managed to get to the floor, which is an achievement and, I mean, call me an idealist. But I did see a lot of potential for technology to make people's lives better. And actually a lot of technology aimed at sort of technology, helping people live their lives. There was a sort of a system for helping people rehabilitate, you know, through through physio with problems, they were connected wheelchairs, a lot of technology that helps people sort of live people with disabilities. So I think there's a lot going on. It's not just screens, thank god anymore.

 
Allison Murphy 

So easy to forget that as we're all in the advertising space, that the same tools that are enabling as marketers are doing phenomenal work like this and accessibility. Yeah, Philip, what about you?

 
Philipp Schindler 

Yeah, so what's keeping me up at night, at the moment, mostly my kids. On the personal side, I have three little kids. And I'm really trying to find the right balance for them to understand and learn how to deal with technology, the good side, and also the challenging sides of it, I can highly recommend like family link and other Parental Control approaches to this. But on a serious note on the on the business side, I am really excited about machine learning and AI. And that's what you often hear. But it's not just the core research and the core technologies, but it's really the application of it and the application of leading to really serious breakthroughs that we can touch and where we can see where we can make a difference on people's lives. And things like application of machine learning into the world of healthcare, for example. We've worked for many, many years. We've shared this before, trying to improve the diabetic retinopathy assessment. For example, last week, we've published a major breakthrough in terms of breast cancer detection. So you know, for the first time see things that before for many years we actually talked about, you see really coming to live and really having an impact. And we see this across a whole bunch of different areas. There are areas we don't even talk that often about. But take, for example, the world of accessibility. We have like 16% of the world's population that's illiterate. And we've now managed to compress machine learning algorithms to such a small size that we can run them on a $50 phone. So if you're illiterate, you can literally point your camera at any text and have it read out to you and even like have it translated if you want to. We have made massive progress in applications where you can take a phone and hang it around your neck, put a little earpiece in and it will read the environment to you based on the camera input if you're visually impaired. I mean, just think about it. Think about hearing impaired people when it comes to live captioning that you know have on most phones again, based on True valuable application of machine learning and AI. So there's so much interesting stuff in this world. That's that's what I really find exciting.

 
Allison Murphy 

And it's remarkable. We're right at that moment when we're moving and on the cusp from theoretical experimentation into real solutions that are changing how people around the world live their day. Absolutely, exactly. And when I think about the kinds of companies in places that will have the impact and the scale to be able to create that sort of change, it's easy to look at WP P and Google as two major players, even more so when I think of your partnership together. So here we have two phenomenal actors in this space. But you also have a very deep relationship together. That's shaping the way we think about what we can do in marketing. What drives that partnership and what do you think the future will hold and what you're able to do together?

 
Mark Read 

Something from from WP piece fetches three things drive it, you know, the first is our clients, you know, our clients and living in this district. world, and we need to help them succeed. Second is innovation. And the third are results. And in many ways they come together in our relationship with Google, because Google, you know, by definition, and in particular alphabet more broadly is driving a lot of the innovation in the world. As you know, Philip, I talk about something Phillip can discuss solving breast cancer, teaching people. You know, that every industry and I'd say in industry after industry, the biggest challenge facing our clients is disruption in automotive, retail, packaged goods, you know, you can go through the list. So, understanding how Google works, and how clients can take advantage of it to deliver results, I think is the best thing that that we can do for our clients. You know, and and to be not to suck up to fill it all the people at Google, but if I think if we were the bet, if WP was the best company understanding Google for our clients, Then we would, then we would succeed. And I don't think there's a conflict between doing that and doing what the right thing is to do for our clients. I think that's, that's very much our goal. It doesn't mean that we don't have conversations in private about, you know, brand safety and viewability. And all the things privacy and technology we may touch on. But I think really being the best company in the world and understanding how to take advantage of Google. And, you know, there are options and alternatives. Sorry, Phillip, but there are, you know, understanding those, I think, is the right thing for us to do.

 
Allison Murphy 

And that DNA of results and innovation strike me is also very much part of what's in the culture at Google. Is that what helps you work? Yeah,

 
Philipp Schindler 

we really have a cultural fit here in the sense that we deeply care about making our customers successful. Everybody seems to say that superficially, but we're actually obsessed with it. I mean, we compensate our teams based on this. I mean, this is like I when I talked to my teams, I talk about one thing all the time, let's make our customer successful, and we have a long standing release. worship with WP p but it has significantly accelerated in the last I'd say year. year plus. And, and we really look at the disruption that you mentioned from an industry perspective. But also, if you take a look at the whole marketing value chain anywhere from the insights to planning to building creating, to buying, to measurement to optimization and so on, we see change like frankly, we've never seen before. And I don't I don't see any signs of this slowing down. And we're really going very deep on each of those aspects and trying to optimize and create a better product for our clients. And it helps that you've recently moved a big part of your your infrastructure to the Google Cloud, which makes the integration of course with some of the solutions a lot easier. But in general, it's just a very, very deep and successful partnership that we want to build out even more in the future.

 
Allison Murphy 

salutely you talked about this obsession with customer results. In addition to the customers you have course for at CES, we all love our acronyms. It's easy to forget that the sea is for consumer here. We're all paying attention. The things, the latest innovations and these ideas that are blowing our minds, but it's really about consumers at the end of the day, besides coming to the show here at CES and being part of these conversations, what is it that you do as leaders and as companies to stay oriented on where consumers are headed next? And on what's going to matter to them?

 
Mark Read 

And I think that it's easy to forget that I think today, consumers are driving technology change, you ever used to think with the adoption curve, you know, companies would launch things and consumers would adopt them? Now, we should have the adoption curve related to companies, you know, how fast are companies adopting the technologies that consumers are using? And so I think it's incumbent on us to as you say, really understand consumers and actually understand almost unsign consumers modern technology, you know, people say oh CMOS, the thing CMOS really understand need to understand today is technology, know things CMOS transcend today's consumers, there's plenty, help them in their organizations do not stand with technology. I think that really, you're absolutely right. That's that's our, that's our focus.

 
Philipp Schindler 

Look at the rate of change of last few years has been intense. And again, as I said before, on the marketing value change, I don't see this slowing down in any way or shape or form and the big, you asked a bit about the trends and that the big trends we're seeing, I'd say the three biggest ones I would mention at the moment you see a lot about this year at CES. The first one is the move towards more assistive computing, just assistance, being smarter, be more universal, sitting across multiple devices, ambient computing, more in the background, more helpful, more intelligence, and so on. So that's a massive, massive trend we're seeing. We've just announced that we have like 500 million monthly actives in our system. So that is, that is a deep it's a very profound change to computing number one. The second big one we're seeing is the shift towards audio visual information. Every minute We look at whether it's for own platform YouTube, we're having like, 2 billion monthly logged in users think about it like a billion hours of watch like time every single day. Those are like crazy big numbers. And we see this on mobile a lot. 70% plus on mobile 250 million hours a day on TV screens. So it's moving towards all the different screen formats. Those are pretty, pretty disruptive changes. And the third one I would mention is, there's obviously the world of cloud computing, and everything that comes with a machine learning that you can then build on top of it, and the world of measurement, dramatically changing. But the real current one where we spend incredible amount of time thinking about is how do we all make this work in an even more privacy sensitive world? And how can we make sure that we really, really, really, we feel as a company we've already been a leader and put the bar really high on the privacy side, but we need to evolve this we need to even go to the next step. And that's that's one thing. How do you make this world work in a next generation privacy world? That's what we spent a lot of time on. At the moment,

 
Mark Read 

I think that's part of, you know, part of the, I think interesting that how is our relationship developing, I think part of the relationship is about connecting our companies technologically. So our systems talk to each other. And so we're not sort of sucking data out of the Google system in a way that sort of doesn't respect consumers privacy, but we can, you know, we can measure the impact of the work that we're doing for our clients on their systems rather than off of their system. So I think that for both of us, for both companies, you know, really understanding how you do that is critical,

 
Allison Murphy 

and advising clients accordingly. I love what you said that you can have smart people advise on technology that includes partners at Google at WP p advisor, but that's needed to as all of this is changing. You know, you mentioned privacy, and you mentioned these things that we know consumers are thinking about. The other area, though, is as anxiety, which I think we're all seeing is from consumers a sense of, I don't understand what's going on. Who can I look to as a guide? And what should I expect from brands in that dimension? So in addition to thinking about the opportunities coming from consumer trends, how do you think about advising brands and grappling with that sense of consumer anxiety?

 
Mark Read 

Yeah, I think there is growing technology anxiety in order for us to have kids feel it. And perhaps as we grow up and grow up a bit more, that's why people in on the west coast of America are more concerned about it, and maybe they were 10 years ago. But we all have it and and actually, some of the ways that firms are dealing with it, I didn't create more anxiety in every time I get a pop up on my phone that says, you're sharing data with this company or your is that is that really helpful or not? Or does that just create, create more anxiety so I think that we have to have more simplicity, just consumer electronics, it needs to be more likely old consumer electronics companies for the consumer to show that Perhaps technology companies and the thing they did very simply was, you know, help create simple products for consumers. And some of that is things what we need to do.

 
Philipp Schindler 

Look, I mean, privacy obviously matters to consumers like addiction, there's no doubt about it matters to us. That's one of the most important things as part of the core principles of how we run our company. We have to see that in a world where you're moving from desktop to mobile to more assistive devices, where all your interactions become more personal, the quality of the information that you expect as a consumer is significantly increasing. And that's frankly, also goes for the quality of what we traditionally used to call advertising. Maybe we should call it the quality of really meaningful commercial experiences in the future or something along those lines. And for that, you need to have a little bit of data and use a little bit of data because frankly, I don't want to be targeted with diaper ads anymore now with my kids being a little bit older. So but but there is a fundamental misunderstanding in how we He was data on what type of data Vu is, especially when it comes to, to some of our core products. Just give you a simple example. It's known to everybody, they would never sell the users personal information. But what's not so known is that actually nearly all of the data that we have, we never use an advertising when you use products and our end, whether it's Google Photos, or drives, or email, and so on, we don't touch all this, for advertising and the amount of data we actually need to basically run our core advertising business models is extremely small. I mean, it's kind of obvious, because when you look at a search engine, we obviously have the intense signal. And without having to give us any personal information, you're giving us a very strong signal of what you care about. But I think that's a really important point. So we are really trying to minimize the amount of data we use to then deliver really meaningful commercial experiences in general. And then the other thing is, and I think that's probably obvious to everybody as well, this but the data in the end belongs to the user and we're just the stewards of it and we need to do everything to create transparency and control in order to protect protect that data. And we've done this, we've started in 2009, we've we've created the privacy dashboard 2011, we created a product lets you take all your data away from Google, if you want to. And we've continued on this track over the years, and just in the last few months, we have launched a lot of, for example, auto delete products with location history, you cannot auto delete your location history, and you can auto delete your YouTube history. And you can turn on anonymous mode, from maps and so on all in the spirit of giving user this transparency and control over what they can do with their data and, and be really empowered here.

 
Allison Murphy 

All such important moves. And it also makes me think every conversation I'm in around privacy has this element of fear among marketers of all of these tools we thought we had, we're no longer going to be able to have, they look at moves like that. And they think okay, well, maybe we weren't using that data in the first place. Maybe we don't need it in the first place. So my question to the two of you and Mark, maybe you have thoughts is, is was all of this data overvalued. You'd to begin with, have we overrated? What data can provide in the land of effective marketing?

 

Mark Read 

I think it comes back to, to trust and respect. And I think if consumers trust you, and you respect consumers and the two sides of the same coin, then then they'll let you use the data. You know, I think we do worry that like the internet will become like daytime television, like linear old fashioned analog television. But I think if we didn't want to end up in that place, it's incumbent upon us to respect how we use consumers information and, and build trust with them by responding to the issues that concern them. So yeah, I think there is some truth in what you say that, you know, we had that vibrant ecosystem. And you know, there were people that thought that GDPR would, you know, in Europe would make life tougher for the you know, technology giants. If anything, is made life easier for them. So, but I think that is because they have a trusted and respected relationship with consumers, which is what we what we need to build at the end of the day.

 
Philipp Schindler 

I just give you a clear answer. I think a lot of the data has been overrated. As I said before, most of the data we have on consumers has never been used for advertising, I think you need a very, very small subset to deliver really those high quality commercial experiences over time. But in general, I think it's good that we're tightening privacy legislation we have we have a very actively asked for, especially in the US National privacy legislation offer, I think over a year and a half or something, to to bring some consistencies to some of the trends that we're seeing around ccpa and others. So in general, I fully agree with what you were saying in the end. It's about creating this trusted relationship with the consumer and give them the transparency and control and not on a superficial level in a really deep and meaningful level. It's not easy to do creating those tools and explaining it in a simple way. Actually, it takes a lot of time and energy, and they don't need, they need to be really true honest tools for the consumer to understand what's going on. And in certain cases say no, I don't want tracking here or there, I don't want to give you this data, and also fully understanding what that means for them.

 
Allison Murphy 

And when it comes to brands that makes sense for how we communicate to consumers in the relationship we have, when we think about how we work with an advise brands, what does that mean in in the data we provide and, and how we help them think about using data to the best effect.

 
Mark Read 

One of the every brand today wants to try and build a direct relationship with the with the consumer, you know, and I think they have to ask themselves why and why would that be valid to the consumer? And if they can't answer that question, then they probably won't have one. If they can answer that question. You know, then then they then they will have one and we all have that experience of Simon signing up to a newsletter when you leave a retail outlet, and then you get a newsletter every single day of the year and if it's closed, I don't even remember Woman, you know. So I think that it is incumbent on brands to really understand why it is they need to have that direct relationship and maybe it opens up different types of business opportunities for them to build those relationships.

 
Philipp Schindler 

So so on our end, so that's one principle is very clear, we will never compromise users privacy, even if we have even if it means potentially not being able to support brand advertisers and so on. The positive side of it is that we have a whole lot of new approaches now where we can develop really and deliver really deep insights based on aggregate data. And that has nothing to do with personalized individualized data points. We're also making incredible progress on new technologies and going a bit deeper but on products we have like ADH with double blind encryption, like really think about it like Swiss style data marts for different entities can put in data but nobody can take out any data. And we've really found privacy sensitive way of doing a lot of the computations and doing a lot of insights generation to a point that is actually better than what we ever had before. But in a really, really privacy sensitive way, which it was already before. But we're really taking it to the next level here. So, yeah,

 
Mark Read 

my thinking is like you're trying to give a client example, like look at the world. Let's see that Unilever done with Google and YouTube with this platform all about hair. And you could say, we're going to collect data on people who are interested in hair, which would be one way of thinking about the problem. And you could say, well, actually, there's tons of content on YouTube about hairstyles and trends. How do we how do we use that? So I think that it just depends, there has to be something in return for the consumer, in the way of form of content to build that relationship. I think back

 
Allison Murphy 

to we talked about the idea that some of the data is not as valuable as we maybe thought in the first place, and maybe we don't need it. But then, Philip, you also alluded to all of the new opportunities that are emerging as we look ahead at what we can do. We were talking backstage around Alberta. them's an AI and machine learning, which seems like that next place of where there is so much value yet to uncover. What are you looking forward to there? And how will that change the way we think about the use of data and marketing?

 
Philipp Schindler 

Look, there's a whole bunch of different areas in this world. And I alluded a little bit on the healthcare side. But the reality is also we're using our most sophisticated name machine learning across the whole marketing value chain, and every different piece of it. If you just look at the product, roadmap, every Friesian recently launched on the creative side, all the different activities that we're doing, we have no products that are basically built on the backbone of machine learning and artificial intelligence, whether it's director makes, whether it's at sequencing, whether it's a whole lot of those other ones. So so that's a super exciting world. And we will continue to invest and do more there. We were seeing a lot of success with our cloud business actually empowering other companies to use our machine learning and AI tools to be more successful on whatever core application they want to build. So so so we're very happy with that as well. So that's an interesting world. I mean, I have to, of course, also say there is a side of AI machine learning where we have to be very cautious and where we have to really be aware of the societal responsibility that we have. And we can talk about that one as well. So it's not only positive 100%, there's a lot of areas that we also need to pay attention to, that we get them right, whether it's on the unconscious bias side, whether it's on job displacement, whether it comes to some of the abilities of running deep fakes, synthetic media, those kind of things. So where to actually use ai, ai regulation, ai principles, and so on. So there's a whole world, we're reinvesting a lot of research and time and energy to make sure we steer this ship in a very responsible way. But in general, when it comes to all world, the world of advertising, consumer engagement, and actually even privacy, there's models with federated learning now where you can keep so much data, basically on device only exchange algorithms and so on. We're actually machine learning and AI will drive the next generation of privacy sensitive products that I'm quite excited about

 
Mark Read 

it. So I think it's something interesting, I had this idea that one day you'll be able to, you know, you can take the whole process of marketing and turn it into a computer problem and you'll feel your feed ideas in this end, and you'll get results out that end and most of what we do, could eventually in some way be automated. Now, you know, you can be optimistic or you can be pessimistic about that for me from the perspective of WP P. But I think ultimately will what will drive differentiation for clients that environment, our ideas? And I think that, you know, that is where in a sense, WP P and Google have a complimentary relationship, because I think we are ultimately in the idea of business. Yeah, yes, we have to understand technology. But just as we have to understand how consumers adopt technology, you have to understand how ideas work. And if every client is just feeding the same old ideas into the same algorithm. The thing is going to make one company more successful in the other company, which is ultimately what we will need to do our ideas. And that is a Think hard what we need to focus on.

 
Philipp Schindler 

I agree. And this is where the complementor relationship comes in, because we want to be in the technology business. And we want to supply the tools to basically, in this case, make the people who are the creative ones who are actually having the ideas more productive, give them better insights, give them better tools, to then take it completely to a new level. And not at all predicting, in the foreseeable future that machine learning oil will replace any of this, the only thing that's going to happen is that machine learning AI will replace very automated, that's where we'll start very automated, like like I would say, very repetitive tasks, mostly at the lower end of the value chain, which then allow everybody will allow everybody to spend more time on the higher higher parts of the value chain.

 
Allison Murphy 

So far, no algorithm yet for genuinely valuable idea. And I can't think of a better way to end our conversation than there. I know we wanted to take a few questions from the audience. If there are any and would welcome those. I think we have microphones coming around if there are any questions actually can't see. So none at all. All right, well, in that case, we will conclude with all of us thinking about what will be that next great idea that data machine learning technology can facilitate. That helps propel us forward to next year, CES. Thanks very much.

 
Mark Read 

Thank you. Thank you, everybody, for listening.

 

Chloe Popescu 

Thank you so much to our panelists. We really appreciate everyone being here at see space. We've got one more panel on this storyteller stage today and our next session will begin in 15 minutes at 230. We will be hearing from storytelling pros who will discuss new ways to connect brands to their audiences. Stay tuned.

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