 Great to be here These days if you go to America to a bar and you sit down with a bunch of guys, you know men Then what do you talk about ten years ago? We talked about, you know money cars women maybe But today when you sit down and talk to people what do they say they say look what kind of apps I have Like you're swapping apps in the bar. I mean this is pathetic, of course But that's what happens when you sit down with guys everybody pulls out their phone And compares apps, right? That's what we do now at the bar. That's a it's a very strange world That makes you wonder about where we're going. I think basically The future is going to be very very interesting Because one thing we can imagine of course now is that everyone else in Brazil and Russia India China Indonesia Worldwide all these people are coming online in vast numbers. They're called the other three billion Okay, and Google has invested in the company called O3b the other three billion they're putting 18 satellites into a low-flying orbit for the southern hemisphere to go online Without having to use a telecom So imagine this you can make phone calls without a SIM card Like if you're in Jakarta or Singapore or Lagos, Nigeria one of the most beautiful places in the world Just kidding now if you go there and you can make a phone call without actually having an operator and you can get on the Web for free. This is all coming So I work as a futurist my Twitter handle is G Leonhardt My company is called the Futures Agency and we're sort of as it says we're agents for the future We're trying to help companies to reinvent themselves. So it's a very simple mission Accomplished usually in 10 minutes, but just kidding So let's start right here. I mean you're all aware of this We have an explosion and how people use the mobile internet In fact, some people are saying that we're going to have maybe 10 15% of the internet on mobile devices in five years I think it's going to be the reverse 90% of all internet traffic will be on mobile devices Because these boxes over here computers right there for work That's what they do Mobile internet is not about work. It's about connecting. It's about banking and about buying stuff about recommending about Downloading you know all these things sharing things right so look at the traffic that we're seeing here I mean from a measly 300 petabytes or so in five years to 7,000 petabytes a month I mean just mind-boggling So let's ask a simple question How are the telecom companies the mobile operators the ISP is going to make money when they have to pay for all this throughput? Every single telecom and mobile operator around the world and we work with a lot of them is going to move up into media content entertainment and advertising It's called the telemedia economy and This will bring a huge amount of money Also into things like books and publishing and music in five years or probably sooner We will all have music bundled into a mobile phone So you subscribe to vote a phone or whatever you have here right or other local providers and the music is included So it's going to be an interesting world I mean if you see how much data we're consuming of course in Korea people are already consuming You know, I don't know 30 30 gigs a month, but look at the growth here I mean, it's absolutely mind-boggling in all countries around the world and 50 billion Devices connected to the internet in 2020 Devices right so that's also things like like cars and and Bookshelves and stuff you buy at the grocery store and subway locations and banner ads outside and so on and so on So data explosion will be absolutely huge So we're entering what I call a mobile society If you haven't gotten with the program to get your company on mobile, you're in big trouble That's basically where all the action is going to be So if your website doesn't look good on the mobile phone, it's time you fix this And this is something that's crucial because obviously most people will look at stuff on mobile devices of all different shapes and forms Not just iPads of course, but all over the world So there's this key question of course now publishers are saying what is cool because now on the mobile We can charge people but it's not so easy It's not just putting up a mobile app and saying okay people will pay five dollars for wired magazine on the iPad Turns out a hundred thousand did it for the first edition and now it's like eight or nine thousand So that didn't quite work out in the same way. So now what's happening is the question is really about mobile Not not just about apps. I mean apps are just one way to use the mobile and the open Internet HTML 5 Of course is going to drastically explode there as well open apps Clina Perkins who is an investor I think in Facebook They summarize very nicely what's going on today. It's about social. It's about local. It's about mobile and I add video Those are the four things you need to be doing if you're a branding agency if your company if you're promoting yourself if you're writing Books if you're an artist. It's all about these things and we didn't have any of this really two years ago The Internet was just the Internet of webpages, right? So it was a primitive version of the Internet you could say now It's all about this and We're looking at a global budget of roughly one trillion dollars that is spent on reaching us called advertising Advertising marketing public relations all that stuff that nobody really wants to hear You know lies and eruption those kind of things That's all going to move on to the mobile onto social networks onto interactivity and video Was a huge opportunity for all of us I think now this is basically our reality, right? I mean, it's interesting today. I read an article just this morning came in my inbox and said Facebook will beat Google because Google just has fossil fossil information old like museum type of information All right, because when you go to Google and you search for best sushi in London You'll find all kinds of stuff including the Geat Michelin and what have you right? But it's not from yesterday if you go to search or Twitter.com when you're in London You put in sushi London and you see reviews and when you get to the place. They're still sitting there eating So it's real live information And maybe sometimes a review aren't on us, but then you can go and complain to them, right? I said yesterday at the dinner when we had you know If in Germany if you go to a restaurant you put your iPhone on the table You bring up TripAdvisor put the app on you just put on the table like this you will get better service Because people are saying wow this this guy is going to make a bad comment about you know and and they know what TripAdvisor is Believe me, right? So it's about nowness And when we're searching for information and this is what apps can do of course. They're about now. They're not about yesterday There's also bad parts to this because obviously it's not always valid to just look for now You know just like it's not valid to always look on the surface But basically Facebook is of course the provider of this nowness effect It's all about what's happening now And you know this is why I have my app here. You can download for free on the internet Also for Android is because this nowness effect is really really important People want to track what you're doing where you are what you're saying and so on. It's very important. This is a very interesting app Last night never happened. It's called You can go and wipe out all of the posts from last night when you were drunk posting on Twitter and Facebook So this is a very popular app, right? I don't know. I think it's free, but I'm not sure I'm they can charge for this unless you can't sell music on the internet, but you can sell this right? It's kind of a an interesting effect. There's also a really great app I like a lot called type and walk if you have a blackberry you can download this app And you can see the street in front of you through the camera while you're typing. It's also very useful Anyway after nowness. It's also about hearing us right nowness and hearing us that people are interested Where we are and this checking-in thing is going to be absolutely huge, but it's going to be built in Into everything we do Because it's very important to share locations for example when you're out in a soccer stadium watching a game It's very useful to see where your friends are sitting Wouldn't be that useful when you're out in Amsterdam Doing all kinds of things so maybe you wouldn't switch that off But it's a different reality when you get into nowness Right basically connecting with people and this of course is mostly done by kids today And then we have this interesting convergence that's happening is Newspapers are becoming TV stations and TV stations are becoming newspapers and and record companies are becoming publishers and so on So we have this convergence right books you can watch in TV you can read So guess what if you're in the media business today? That means you're in all of the media business and That's a real challenge because most journalists aren't so happy to be on video They never signed up to be on video or to make an audio podcast, right? But that's our reality It's a multimedia world now. It's a cross-media platform And then we have this this is a huge change in terms of money This is what gives the banks up at night and companies like visa American Express PayPal Mobile apps that you can pay with I Adventure to say in five to ten years. We won't be using a lot of credit cards Here in Europe, of course credit cards are really established Just like America, but in developing countries people will use the mobile app to send money. This is Google Wallet Works with an NFC chip near field communication If you download the app you have the chip on you can go in a grocery store and pay with this thing You can already do that of course in Sweden and other places, right? But imagine this right imagine you can go somewhere Anywhere in the world you can send the person sitting next to you who has just given you a book, right? You can send them $10 through the mobile That is going to be the reality very very soon and apps will do that as well and Facebook money Facebook credits Will become the biggest currency after the dollar I'm not joking. Maybe even before the dollar Bad dollar for the bad thing for maybe the euro. You know who knows I don't hope so But basically what happened on Facebook is that you can make money and you can spend money So if you buy Facebook credits, you can already buy real-life things like Delta Airlines tickets or Warner Brothers movie downloads you can watch Batman on Facebook You can already do that. I don't know why you would do that, but you can do that So money 2.0 is a huge thing because money is content after all that money is moving on to the web into the cloud And now we have all these companies getting into apps Of course, you have noticed that now there's apps on the computer and widgets that you can install there All right very soon. We have apps on the television Every single television will be connected to the internet in the next two years There won't be a television. That's not on the internet automatically onto your wireless network Doing all these things so you can have your widgets and flicker you can really be distracted all the time But Audi now says okay, they're getting into make an app So very soon you can download an app and the speedometer can be a Disney, you know a Mickey Mouse or something You know you can change that you can change all the things in the car And the other thing that Audi is doing is they're working on something very interesting. Here's a short video on this The self-driving car Why in the world would you buy a car that you're not driving yourself, right? I mean, this is of course mad, right, but Audi knows that in the next five to ten years Self-driving cars where we just sit there and do our email or whatever or eat or other things, you know Audi knows that this is going to happen and this is going to be a big part of their business Which is cars that drive themselves So all of a sudden we're basically looking at new roles in a new ecosystem So telecom companies will get in the movie business and they will get involved with entertainment Publishers will also get involved in that end of course on with telecoms and so on so we're going to Routely change how we do things and basically what we see now is That if you have kids, you know what I'm talking about, right Kevin Kelly says we're no longer people of the book We're people of the screen and This is a whole new reality People of the screen are just not the same kind of people Because they can instantly rate things they can recommend stuff they can forward things they can share Right now 23 million uploads every day on Flickr 23 million new photos 20 22 billion minutes spent per day on Facebook That's every fourth minute on the internet and what are people doing there? They're sharing stuff, right? That's what they do there So the idea of people of the screen is going to be among us I mean we're talking about huge branding possibilities direct connections with fans There's a website called Kickstarter that you may know there used to be one here in Holland called cello band But Kickstarter allows people to fund projects that they like directly and Last year Kickstarter raised 47 million dollars for people where you can go and say I want to write a book My fans will fund my next book. I mean, of course, it doesn't work for everyone But it's a direction that we go and then of course you have people doing all kinds of things with screens, you know That's kind of aberrations, but if you have kids, you know what I'm talking about. So here you see The typical weapon of the consumer This is an app called flight tracker If you use flight tracker, you can be sitting at the gate And if there's a delay in the flight you will know about this earlier than the woman at the gate Right because flight tracker has all the cool data and the woman knows nothing and she doesn't care And this is the worst part of course, right? So this is user empowerment. So, you know the flight is cancelled you you can be the first one to rebook I mean, this is what everybody's doing now. It's total consumer empowerment So the record labels the media publishers the companies the banks insurances the governments they have to put up with us now and If you're running a company that wants to sell anything if you don't empower the user It's basically day over for you I mean, this is the whole thing you need to do is basically empower people in an environment That doesn't mean your marketing is going to be about captive customers, you know in marketing We use all these military terms, you know campaigns and targets and and mission accomplished and you know It's when the army It's not about the army. It's more about Woodstock Marketing and it's basically saying okay. We need to untie these people and empower them. This is for my iPad last week. I Love the iPad. I love Apple stuff, but many of these things are just pure prison, right? I mean, I connect my iPad to a display and it says I can't play My iPad connected to this display because it would be possible in theory to record from the display Imagine the lunacy of this, right? I mean I pay three euros for this movie I can't use a display because I could possibly record it, right? I mean, what kind of paranoia is this? I mean, this is the best way to be hated I mean talking about the music business, right? I mean four years straight in America the recording industry or association of America is the most hated company in America and Why is that because they do this every single day? You can't do this because we have other plans for you. Just sign up So that's the antidote to the empowerment and what we're seeing right now the music industry has to be greatly Complimented on this the revenues have declined by 71 percent in 10 years So mission accomplished you've made yourself superfluous There's a lesson that we can learn from this right basically don't do this Anything you do to take away the power from the consumer they will find out They will make it impossible for you to do this because now everything That we do is moving into the cloud and yesterday was the announcement from Apple iCloud in my view Not really a big deal seemed bigger than it was but But we already know this Spotify is in fi all the cool music services Netflix in America, right? Everything is moving in the cloud so music Movies television education All of our educational materials textbooks slide shows videos will all be available in the cloud already are from MIT for example In the open courseware project government records health You have an app that basically has your entire records in the phone And if you want to give your records to the art to the to the doctor when you when you're in a car crash or something You can just pull it off your phone All in the cloud I mean this is basically going to happen It's going to be a huge change in terms of how we live because what we don't have the cloud we can't do anything It's like have you ever experienced when you have car navigation and you're in the middle of a city You have to make a turn and it goes off. There's no satellite, right? So then you're in trouble is that make your own gas that's a big problem So everything moving into the cloud and then we have a big change in society as we can see now on a worldwide level We can no longer make money by ourselves This is kind of interesting because until now we have big empire's media companies banks make lots of money You know Disney Universal, you know, it was possible to run the business entirely by yourself But in the last 10 years, we've come up with companies that are essentially networked companies They're they're actually co-creating a model. That's Google eBay Skype Twitter 80% of Twitter traffic does not come from Twitter.com It comes from a thousand companies who built the tools on top of Twitter Like Hootsuite and Tweetdeck and all the cool stuff that we're using and if Twitter goes offline All of these things are gone as well So we're now entering in the interdependent society. This is a great movie They just came out connected the film calm Here's a short clip from this movie so you can understand what I'm trying to illustrate here So this is the business model of the future, right? Don't refuse this. You have no choice You cannot actually be completely independent and make it work. It's not possible Because everything is connected now every commercial process Every buying and selling is connected whether it's business to business or consumers. It's about interdependency And of course, that's what apps are teaching us as well But we have to connect to other people's databases, right? The coolest stuff today happens through API's application platform interfaces So you can you can mash up Google data and Twitter data and Facebook data and all kinds of other thing and for example Flipboard that you may know, right? It's a great app would be impossible without this The Guardian the most popular English-speaking online newspaper in the world right now They give away all of their stories and their data through an API You can just go in and create your own newspaper from their data It's very powerful So now we're also people of the cloud. I'm sure Steve Jobs very happy about this one Because now we like this right we'd like to live in a fluid society So when you go to Swiss dot com or luftron the dot com you can buy a ticket online, but you can't rebook You have to call them and guess why because they don't like you to understand how all the rebooking works Easy jet you can do whatever you want Okay, you have to pay for it 30 euros. Okay, but you can do it. This is empowerment. Now what we have here is we like fluid stuff Anybody's using Spotify here any Spotify users. This is fluid. What a great business model I mean if the record labels wouldn't be so obsessed with killing it, maybe you would have a chance of having it around for a while So Spotify Instapaper anybody use Instapaper. It's a lifesaver. It's Instapaper is an app That allows you to download webpages and articles and read them offline Ever since I started using Instapaper, which is free in the basic version I'm saving a hundred pages a day of printing All right because it makes it fluid and easy anywhere I want I mean and all the other stuff just absolutely amazing right and of course the iCloud from yesterday Very soon. I think we have this right we have I think from Apple which will connect us very deeply into the Apple universe Yeah, I'm sure that's the next plan But jokes aside This is a very serious thing right this is extremely threatening to most of us because in fact We'd like to be the network and the network meaning ABC CPS universal You know Goldman Sachs Toyota big brands right the big central entity that you see here on the left But the reality is today because we're becoming a networked society That means we can find out stuff before I go to the meeting with you I'm gonna check out LinkedIn to see if I can find who you are Everybody does that now We're becoming a networked society So all of a sudden we're going from this idea of one to many, you know broadcasting to the idea of many to many And I can tell you one thing of course many to many is quite a chaos I mean this is Twitter is like 98% garbage, right? I mean, let's be honest. It's lots of stuff happens there that you don't want to see So you need filtering but the many to many is a very very interesting proposition because what it does is like it actually Relates we're going from MTV to YouTube Took 18 months for YouTube to become more relevant for kids than MTV 18 months. I Mean if you want to watch music videos or listen to music, where do you go? YouTube and MTV is still here, but of course they're really really struggling, right? And of course the biggest part is that people will start switching the advertising budgets So what companies are saying is like, okay, we used to advertise here, you know big television print which is declining heavily I'm especially here in Holland right radio They're shifting a trillion dollars advertising budget is a trillion dollars I mean, it's absolutely it's mind-boggling how much money people spend to reach us and pitch us stuff, right? It's shifting to the networked society So we're basically looking at situation to where you know the the Dutch broadcasters have to face the fact that Facebook is a broadcaster Facebook is going public next year. They will probably raise a hundred billion dollars They could buy all of the record labels But then it'll be five dollars each But just kidding They can get into the business of broadcasting right now they're broadcasting us to each other and that's it Right, but they can add movies or television shows and they will So if you're a broadcaster in this audience, I hope there's a few you have to get with the program and become networked Because you do have a great audience, but you have to actually be both. I mean they're obviously interrelated They're not going to switch off. I mean broadcasters will be around but in this world we're going from broadcast to broadband and This is why apps are so important because apps are of course they can be on television But we're going to a world of where we like to do this that we have the choice of 50,000 TV stations on the web and Of course the choice makes it hard to choose, right? But that's we'll have to have different program guides for this and also we're doing this right Seth Godin says all of us live in tribes and this is very true because it's a human factor, of course There's about a hundred fifty people around us that are important And they can be online offline or both of course, right? But basically we're connected through mobile devices and we're now living in a broadband world Did you know that every 10% increase in broadband or mobile penetration means 1% increase in GDP? People make more money when they're connected. That's a fact every single government around the world Wants people to go online to save money and produce new economies So now in a broadband society and we're we're completely different this model will be turned upside down So one thing we have to do all of us and this is hard because becoming networked means we actually have to listen I Should be talking because I'm not usually listen. I'm usually talking But we have to start listening because in a networked society. It's about conversation. It's not about monologue This is how you do stuff. This is how you actually learn stuff. This is how you make things work, right in New York Times has allowed Millions of people to log in and create their own page in the New York Times I have my own page there great move because you know as for example the Huffington Post many of you know Social news It's obvious what people can read what I read and we can share very powerful stuff Cosmopolitan magazine on Facebook you can read Wall Street Journal on Facebook You see how many companies are already getting more leads in terms of traffic from social networks than they are getting from Google See an end USA Today people magazine The the blue bar is traffic from social networks If you're not engaged in so-called social networks, right? You have to get in because it's about the network society. It's not about Facebook or Twitter It's about having a conversation You see how many pages and I'll get in the Facebook like button. I mean you can't even get around anywhere on the web I mean now we can go to real places like like a slide In a fun park and you could like the slide, you know, you can actually like real life things, right? I mean it's absolutely mind-blowing. So this is your new television and radio. I Mean that's Twitter news network TNN be bigger than CNN in less than five years Put the fear of God into the cable guys. It's like cable television without the cable It's going to be absolutely huge and and there will be a tab here in about 12 months. It says Music you just click on the tab and off you go So brands must now also become network, which means they have to become human if you're trying to sell something You can't just be sort of an amorphous entity that pitches your stuff. You have to become human. This is American Express the open forum Really cool app hundreds of thousands of people discussing financial stuff on the web and on the app hosted by American Express That makes them human even though they're definitely not human in terms of you know, they're obviously a big company But this makes them more tangible. This is really what it's all about. That's how you create apps Now the Amazon mantra in this context and if you if you use the Amazon apps It's pretty mind-boggling how it interfaces with all the other stuff that you're doing Especially Kindle and so on right their motto is nurture extreme customer satisfaction They'll do anything literally anything to make you happy They bought Zappos the most successful company on the web in the last couple years for billion dollars You could call the hotline at Zappos. I tried it myself because I wanted to see if it's true You can call the hotline and talk about your divorce problems With the person they will hang on the line for hours and they will give you therapy and Zappos. I mean, this is amazing Amazon just two months ago went and said we're gonna get in the movie business to distribute movies like Netflix And they're giving all of the American premium users which are free shipping 5000 movies for free to watch. It's a present So if you're an Amazon user in America, you can watch 5000 movies to stream for free Imagine if we can do that here. I mean, this would be a mind-boggling way forward Kids and the iPad Clearly if we're going to get into the future and make money with this way and actually generate revenues We have to think about web mobile native products native means native. You know means starting from there Not ending there We're not on the web. We're off the web, right? We're we're coming from the web So if you're coming up with a marketing strategy for digital natives, not kids, right? You got to think about what they do already not what you want them to do. I Mean, this is a whole different cup of tea. So if we're going to come up with apps They're not supposed to make money They must be unique. They must be irresistible. They must be totally affordable. They must be a wipeout And there are a few for example, I love these two flip board, of course is not from publishers Ha needless to say they didn't invent it themselves But this is the most popular app for reading now and the other one. I really like as popular science from Bernier in Sweden They really hit a goldmine because instead of saying that you have to buy the magazine every time It's $15 a year for all of the magazines if you like this kind of stuff. It's a good deal And it's really a great app So very soon those will be free because there'll be app sponsored by advertisers and so on Now we also have this idea that we can start selling direct This is where it gets really interesting, right? I mean imagine you have three billion people using apps Which will be roughly three to four years you know worldwide and Also imagine that we're going to have automated translation So all your Dutch stuff is available. Just hit the button here in Chinese Sounds like science fiction already works Google has already demonstrated software where I can make a phone call and speak in German and it comes out of Hungarian Already works. It's just it's cumbersome and a little bit expensive But basically Selling direct becomes important now because now we can say we're like these guys some O'Reilly publishing We can add in-app commerce so when people are ready to buy they can buy from us This will be a bit, you know, maybe a year or two until this really takes off But kindle for example Amazon now allows the authors to write short books Which I love because you don't have to spend a thousand hours. You spend a hundred hours, right? You can write a 40-page book and it's a dollar or two dollars. It's a no-brainer, right? So a whole new format comes up So when you think about commerce on apps think about new formats think about new ideas rather than replicating The old stuff which won't work So apps are clearly not a magic wand. Here's our friend Rupert Murdoch He says we'll have young people reading newspapers It's a real game changer because now I can finally make more money It's not going to work They won't read newspapers. They will read news Take out the papers They're interested in use but it's all about the wrapping I mean if you look at here is like the amount spend on apps. It's quite interesting from the Wigan entertainment Congress recently But not a magic wand. This is even more depressing if you think about selling stuff, right? You're gonna have to be a bit smarter than that Like you know my way or the highway like Rupert likes to do with his new papers You know you come in you you tell to book her off and pay That's not going to work basically here paying for mobile content clear answer How much would you pay? Answer is would not pay for this 70 80 percent So what you have to do is you have to say well Let's see if we can bundle it and package it and include it and start with the free version and upsell The most successful business in this decade of the Internet is the gaming business What do they do? It's the addiction model They let us download stuff for free World of Warcraft you download you play for 10 hours and then it says now you played for 10 hours You can give us $20 and you can unlock a bunch of weapons Or you can get the next 50 levels and 80 percent of people are converting Because they're already in and it's not a lot of money So this kind of idea of packaging upselling right and clearly I get this question all the time Well, we have closed apps, you know the Apple universe or Android and open the answer is of course we'll have both Depends on what you like. We don't live in it and then yes or no world anymore This is of course unfortunate because we would like it to be more simple, but it's not right The reality is that we live in a completely fragmented world Some of us are quite happy to go with the closed Apple universe and I am part of that as well I play on both sides, right? But in general, I think it'll be easier With an open format So I wouldn't bet on closed formats being the winning proposition, but it's probably going to be in both directions So basically if you're looking to see where the money is, you know, it's the cloud the crowd and mobile devices That's our future Connect in the cloud with the crowd whatever the cloud is if your cloud is money if you're a bank You're going to connect with your users through the mobile device and do something with them create a community Calculate loans transact pay for things the cloud and the crowd and mobile devices So now we're living in this world of you know plenty of destruction and this is actually an understatement and We're going to have him so many screens that we don't even know where to look I mean, it's it's a complete as Marshall McLoone said 1971 the global village is is a village of chaos noise and discussion And that's basically what we have. I mean, it's Fragmentation aggregation and this is the most important part Any brand with a media company or a music company or a newspaper? It's about curation It's about creating meaning For example a car company Audi BMW Mercedes people don't buy these cars because they're better Clearly not because they're all equally good. I mean you could say you like brands better But it's about what you think is a fit, right? It's the curation that actually matters This is why Audi is getting into apps. There will be people buying an Audi because you can customize your speedometer Sounds bizarre, but that is one of the criteria So that's what apps do they allow us to curate And remember that in Western Europe and in America and in developed countries We don't really have a money problem We have a time problem So for us would rather have a little spent on something that is relevant and Important and timely and useful. We spent something so our time was more important than money So therefore curation is a money maker That's what newspapers all about That's what television is all about if they're good I'm gonna skip ahead a little bit because otherwise we'll be here at midnight and You know as you can see I was quite optimistic on your level of exposure here, but Okay, talk about my favorite subject right lying Okay, you can basically say that in the past we spent a trillion dollars on either yelling at people through advertising Interrupting them or just plain out lying to them We all know that Domino's Pizza isn't good So Domino's Pizza found out last year when they were relaunching that everybody thought that pizza tastes like cardboard So they said well, we can't do this the first thing before we do marketing We're going to go and ask people to actually reinvent our pizza And I think it's called rethink pizza or something like that Right and this was extremely successful because before that in any marketing they had to stop lying about their pizza They had to actually fix it so if there are issues in your company whether your bank or or or a Movie company or production company if there are things wrong we have to fix those first before you make an app Because people will find out and we can find out anything now. I Mean this is if you go to search twitter.com Just put in the name of your company or a product somebody is having a conversation about you at this very moment So no matter what you think of wiki leaks, which I happen to think it's a little bit overdone in terms of the transparency But transparency becomes essential now. I Mean essential in the sense you can't hide anything. You can't lie because it's impossible I mean basically people everyone here today is already public in our profile so we can find out things about you Right. I mean what rains right now is a principle that Jeff Jarvis called publicity That's opposed to privacy this is from far as Europeans is extremely difficult to understand right because We are interested in privacy, but There's an issue here right all of us because we're in business and you're here doing this right you want to be found That's why many of you I would bet on LinkedIn or zing or Facebook or Twitter ring or whatever you're doing, right? People are connecting with you, and that's a benefit, but the result is you're a public person We're now by default public And if we want to be private we have to go and fix it We have to change our settings and we have to take stuff out I spent 20 hours two weeks ago wiping out stuff on my Facebook profile unfriending my wife my kids Just cleaning up, right Because the public effect means we have to take responsibility It's it's about responsibility not about regulation So this is a very very big learning process because all of a sudden we have the power not just to make fools of ourselves But as you can see here this clothing store Kenneth Cole was making a joke about the Egyptian Revolution Saying that really what was happening is that they were keeling up there to buy clothes This cost them several hundred million dollars in sales this one tweet Because people were saying like there's no way I'm gonna buy anything from these people BP when the old disaster happened BB said oh, you know, it's just too bad. You know, we'll find a way to fix this, right? Within three hours you had this website come up on Twitter BP global PR, but it wasn't BP Was somebody playing the role of BP a hundred seventy thousand people already on there tweeting as if there were BP, right? Imagine the damage that that cost So the bottom line is you can engage or you can be engaged. That's your choice. Look at the music companies, right? Seventy-one percent declined because they refuse to be engaged and now they are engaged anyway It's your choice if you started or somebody is going to force you But if somebody forces you you have to have a major lawsuit for two years to get rid of this Twitter feed All right, and it's everywhere on the web. So you better get engaged quickly I'm gonna get to a wrap up because I'm I'm getting kicked off the stage here. All right Okay, let me give you a quick wrap up here I will make a the slideshow available for downloading later so you can see all the cool stuff You missed you can also go to Gertube.com and watch about 200 hours of videos Anyway, so an important principle of what's happening in apps and on the web and general is this principle freemium feels like free and free This is not new. It's just more pronounced on the web All of the success stories that we have today on the web many of them start with free I call it feels like free because it's not actually free. It's part of something else that makes money So the trick is for example linked in most of you are using it for free or Skype But linked in let mate last year made 350 million dollars Because some of us choose to pay the $20 to get more So this idea basically linked in Amazon popular science Starting with some sort of idea of creating an upside. This is a very very important principle So now let me summarize real quick and then I'll get off the stage We're living in this world We're living in a networked society of broadband culture. That's mobile. That's social. That's video and you can't refuse You can't refuse and that's sort of like, you know live off the grid on the grid like matrix or so All right, it's not that extreme, but this is our world now And it's completely interdependent That means you have to be transparent you have to talk to people you have to create conversations So this is the world of web. We need to co-invent new business models If you're a brand you have to talk to publishers if you're a publisher you have to talk to Labels I mean to ISPs and mobile operators, right? You have to connect and invent new models Google is the champion of course of this model to create new ecosystems and it's quite a hard job actually Also, it's important and when you do an app or a web page or whatever you do you create an experience Something really important. Holly Davidson for example has a website to where you can go and you can share stories about your rights It's called the writing club. You go there and you share experiences and that's really what makes it work The new money is in the cloud and the crowd And connecting the cloud and the crowd the next five years all of a stuff will move into the cloud And we're going to find interesting new ways to actually synchronize the two It's not about being noisy. It's about being irrelevant So if you're making noise stop making noise make relevance Otherwise don't bother Because we're beyond the stage of noise to where was fun just to tweet 500 times because you can Make it relevant make it meaningful Anything that's not connected To each other and to others will fail So an app that doesn't connect to the outside world most of them will fail Close guard walled gardens no matter how nice they are like apples walled garden is a great garden beautiful flowers Like they won't fail, but most of them will fail So don't build a walled garden And last but least this is the bottom line and disrupt or be disrupted That is the choice that we're having today Somebody is already looking at your business and saying wait a minute. We could do this and destroy them And chances are it'll be 1000 one of the 1000 of google's alpha projects It is going to have some impact On you in the future. So bottom line what I recommend that you do is you embrace this right user control at all times Like amazon says providing a really really top level experience, right? So that's the opportunity user control When you think about apps think about user control and empowerment. Thanks very much Here's my stuff. All my books are free on the web. Just google gert free pdf and you'll find it. Thanks very much