A New Google: Why Content is King

A New Google: Why Content is King

In the ever-evolving landscape of technology and the internet, it's important for companies to find their niche and establish themselves as a force to be reckoned with. One way to do this is by focusing on a specific vertical and building a platform that excels in that area. This is what Google did back in 2000 when it emerged as a superior search engine compared to its competitors like Lycos and Excite.

However, as the saying goes, "Come for search, stay for something else." Google's success wasn't solely based on its search capabilities. It became a part of people's daily lives because it offered something more. This is a key question for any company looking to challenge Google's dominance – how can they build habitual recall and make users choose their product over Google?

One solution lies in the concept of community. By creating a platform that not only serves as a search engine but also offers something else, companies can capture the attention and loyalty of users. This "something else" could be anything from travel recommendations to code tutorials or even a marketplace for electric products. The idea is to make the search app a destination for a specific vertical, providing users with a comprehensive experience they won't find elsewhere.

But why is content so important in this equation? It's because content has the power to create strong moats for businesses. Just as broadcasting created real money on the internet, great media businesses have the potential to do the same. There are several reasons why content is king:

1. Scale Economies: The bigger a company gets, the more it can invest in creating high-quality content. This, in turn, generates more cash, allowing for further investment in quantity and quality. Companies that prioritize research and writing tend to outcompete those that only allocate a few hours a week to content creation. While low-budget winners like Joe Rogan and Blumhouse exist, they are the exception rather than the rule. Most successful media brands aim for quality and develop creative ways to reduce the risk associated with producing high-quality content.

2. Network Economies: Network effects are often associated with communication platforms like Facebook and YouTube. However, narratives can also have network effects. When people share experiences, it creates a sense of belonging and mutual understanding. Each new unit of content becomes a unit of culture that, when popular, becomes woven into the fabric of society. This is why content with a potential to connect with many people should be amplified and extended, rather than diluted with unrelated content. Building a skyscraper, rather than a strip mall, is the way to go.

3. Counter Positioning: Startups have an advantage over incumbents when it comes to content. Incumbents can't simply copy the startups' content without potentially alienating their existing customers. By being willing to do things that established competitors wouldn't consider, startups can differentiate themselves and attract a new audience. On the other hand, incumbents can gradually stretch towards new, younger audiences to stay relevant and expand their reach.

Switching costs in the world of content are typically high. Once people reach adulthood, their interests tend to stabilize, making it harder for them to switch to new platforms or creators. This is further amplified when communities form around specific content or creators. Brands play a crucial role in navigating the vast sea of content. They act as signals for quality and allow people to communicate something about themselves through the content they consume. Recommendations from respected individuals also play a significant role in content consumption decisions.

Ultimately, the cornered resource in the realm of content is creative talent. Creators are inseparable from their creations, which is why we've seen numerous journalists breaking away from their publications to go independent on platforms like Substack. Their fans value their creativity more than the company they used to work for, making it possible for them to thrive independently.

The creative process itself is complex and opaque, much like a company's proprietary process that creates superior value. Successful creators have their own information ecosystems, prototyping processes, and methods for refining their work. Mastering this process power is critical for creators and businesses alike.

In conclusion, challenging Google's dominance requires a strategic focus on a specific vertical and providing users with a comprehensive experience that extends beyond search. Content is the key to creating strong moats and capturing users' attention and loyalty. By utilizing scale and network economies, counter positioning, branding, and leveraging creative talent, companies can carve out their own space in the digital landscape.

Actionable advice:

1. Double down on your wins and amplify content that has the potential to connect with a wide audience.
2. Differentiate yourself by doing things your competitors wouldn't consider, or gradually stretch towards new, younger audiences if you're an incumbent.
3. Focus on building a strong brand that signals quality and attracts users who want to associate themselves with your content. Listen to recommendations from respected individuals and cultivate a loyal community around your brand.