Yahoo's Core Business Is in Decline: NYU's Galloway

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May 8 (Bloomberg) -- New York University Marketing Professor Scott Galloway picks his winners and losers in the digital world. He speaks on Bloomberg Television's “Market Makers.” (Source: Bloomberg)

People actually buy and want to buy from instagram.

Why couldn't facebook do that on its own?

You have to establish the relationship with the brand.

You have to understand what it is about pictures that make people buy.

Explain how it works.

How would i interacted with it?

You want to buy a pair of shoes and you would see a product you want to buy.

Everybody sees that same picture.

What if i could offer you instagram shots of the same shoes in context?

Real world settings.

Essentially, what that does is entice you to make that last minute decision and purchase.

Doesn't not matter that it could kill facebook?

It's not going to kill facebook.

It is their growth vehicle.

Facebook now has the largest community in the world and now they have a growth vehicle.

Facebook -- what was the killer app on facebook that took it from a fledgling to a skyrocket?

Photos.

You could argue, if there was -- i can't stand people's mindless updates.

Their political rants on facebook.

I hate them.

It is nice to see pictures of kids.

If you look at the power index of social media platforms, one axis would be mobile individual.

It the people taking these photos who subsequently get monetized by instagram/facebook, do they get consideration?

Is it just free content?

They get the attribution by the brand.

People love brands -- new balance comes to her instagram and says, we like your shot.

Can we use it on our website?

That is cool.

If you're a 19-year-old and new balance as, i love your shot, i want to make you a model.

You would definitely say yes.

If you are savvy, you would say, that's great, that's $10,000. we are in business because more people say yes and no.

Ultimately, it's about benefiting the community.

If brands can bubble up the community and make the commerce experience more about community and less about the brand, there is a positive affect.

Good as instagram hurt the most?

By far, pinterest.

Pinterest broke our heart.

They were the leader in visual web and have been blown by.

Loan off the road by instagram.

I have never used pinterest.

The thing about facebook, it is the most nimble $10 billion company in the world.

Great engineering talent, did not have a mobile product two years ago.

How does pinterest look any different than it did call months ago.

They sat on their hands and watched the world blow by them.

Pinterest has blown it in my view.

Do you work for pinterest?

We don't. it's a closed network.

They don't allow third-party developers to build on top of that.

The second aspect of interest is it's not a network of creators.

The content is owned by the brands already.

Instagram was born as a way of creating content.

That is where we tap into.

How long until consumers wake up to this idea that things that they create are the joy being monetized for cash and are getting nothing?

They see it as a badge of honor.

It ends up on the site and they see it as a badge of honor.

People like -- the 99.9% of them think it's cool when they put it on their site.

It was, take a selfie in the store and it will be on instagram.

People love it.

Nobody was asking to get paid.

That is giving away money.

You could already argue -- instagram may already be the most powerful platform in the world.

Has 15 times the engagement rate of facebook.

15 times is makeable like, share a comment a piece of content at 25 times the engagement of twitter.

You take community size on engagement, it's already the most powerful platform on the world.

Is twitter when more photo and video -- went more photo and video, could they be a competitor?

You can't count him out.

So far, it's not working.

Twitter has the least viable traffic of almost any platform.

Is that because of the delay?

On instagram, it's all there for me.

It's more enjoyable and instagram.

Sometimes you see the picks, sometimes you don't. do you think twitter could become a visual medium?

It depends on how you are born.

If you are born, it's very challenging.

They spoke managed to do that because early on, it was.

?

This text has been automatically generated. It may not be 100% accurate.

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