I have spent a few posts thinking about this concept – the ‘why’ in Scarcity Thinking in Marketing and Feels & Fields in Marketing and some of the ‘what’ in Brand with a world view. Essentially, the idea is that as customer attention becomes increasingly more scarce, brands will have to think beyond ‘fracking’ and the efficiency driven marketing approach (with all the seemingly contextually relevant data they offer) for a sustainable advantage.
I have to confess that it doesn’t seem that way now. In Pipeline to Platform Organisations, Neil Perkin makes the point that this (pipelines to platforms) is one of the most significant shifts in internet era business economics. And the argument is indeed right, proven by the fact that Facebook, Google, Amazon, Uber, Airbnb and even Apple to a lesser extent are all great examples of platform companies. In fact, the article he has linked to states that in 2013, 14 of the top 30 global brands were platform companies. They have been built to scale, which they have achieved to a large extent by building fairly insurmountable ‘moats’, hugely powered by network effects. And there lies my problem because they are now well on their way to becoming platform monopolies (euphemistically called ecosystems) – the new intermediaries on the very web that was supposed to help level the playing field. Arguably, it’s becoming increasingly clear that a fight against them based on efficiency/network effects is either doomed from the start, or becomes unsustainable. More