Alexa, Make Me A Premium Ad

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by David Gonzales

There was a shot across the bow of “Brand” itself last week from NYU Stern Professor and founder of L2 Inc, Scott Galloway. 

On stage at a bespoke L2 Amazon Clinic, Galloway described what’s next for Amazon as it continues to disrupt traditional retail models and consumer behavior.  
The premise is quite simple. “[Amazon’s] attitude is that brand have for a long time earned this unearned price-premium that screws consumers,” says Galloway (10:17).  Brand investments in things like packaging and advertising are obsolete.  We don’t need a “Longest Lasting” Energizer AAA Battery, and we certainly don’t want to buy said battery off an expensive, well-designed end-cap featuring iconic pink rodents. We just want AAA batteries in our house and the phrase “Alexa, order me batteries” removes all of the friction associated with that want including the paralysis of choice.  Instead, what used to be investment in brand is now just margin passed down to the consumer in the form of cheaper batteries.  

Lots of juicy implications immediately for our CPG friends. Then again, nothing that new when it comes to the technological erosion of “premiums.”

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