Rapidly and schools cant keep up. The future is beginning to be full of surprises. Politicians often fight the future. Ridiculous and its grotesque. You say its exciting. Some people say this is creepy. And i dont disagree in any way. But its still happening. Exciting or creepy . The Tech Revolution is now. I assume many of you, maybe most of you own one of these smart phones. Because of these, political campaigns today are different. Were volunteers with the ted Cruz Campaign. Door knocking is old, but the way steve and debbie do it now is new. They are at this door, only because their phones told them the people who live here might vote for ted cruz. We have set out the objective at the outset of the campaign to run the most datadriven, dataanalytic campaign in the history of politics. Obama did that both times he ran. The Obama Campaign had a secret weapon it used to defeat mitt romney, a highly technical sophisticated data mining operation. Beyond anything that modern political campaigns have seen. The Campaign Manager for the Obama Campaign said the biggest institutional advantage they had over the Romney Campaign was its use of data. Emily eakin studies how data influences politics. Many republican insiders tended to be very exclusive and a little bit closeminded when it came to using new methodologies. However, after 2012, that changed. They are a Super Bowl Team we ought to respect deeply. The Obama Campaign tested everything. They said they conducted more than 500 different experiments on their website. When they had a picture of president obama with an inspirational quote, they raised significantly more money than when they had the same page, but just a picture of obama. Obamas data operation was lead by harper reid. The Obama Campaigns real heroes, harper reid, the technology mastermind behind obamas win. Im an incredible person. Ed, technology mastermind behind obamas win. Im an incredible person. This is a very straight forward thing here. You got credit for obamas victory. I was just a cog. I just looked differently so the media didnt know what to do with me. The media same the Romney Campaign was hightech. On election day, the campaign will activate a sophisticated system for tracking their get out the vote efforts. But we know how that story ends. Romney had four people working in data analytics. Obama had 50. And he had something called project narwol. A data program with a code name. He named it narwhal. We wanted a code name that would be fun to say. Its kind of a joke, really. Once it leaked, nobody knew what to do. Suddenly there was this mythical narwhal. Then everyone was like, whats narwhal . Meanwhile, romneys team had orica, a database name for another sea creature. Ca, a data another sea creature. On election day, it crashed. You literally have 35,000 volunteers whose job is to get out the vote, wandering like zomb zombies. Have the republicans caught up . If they havent caught up, its their fault. Shes definitely considering ted, which is fantastic. We have caught up, says the Cruz Campaign. I went and bought a copy of obamas Campaign Managers book, the audacity to win, gave it to our senior team. Said we are going to nakedly and shamelessly emulate this. Thats very much the plan. He made it very clear that this was an area, the use of data and analytics, that he would not fall behind in. Kris wilson runs cruzs technology operation. Why do you think the democrats were ahead of the republicans . The Silicon Valley environment. It tends to be more vulnerable. The founders of google have been aggressive about taking some of their technologies and applying them and helping the Democrats Use them. Were going to be working in west des moines. Each volunteers phone tells him where to go. See your neighborhood. Youre in here for a reason. Youve caucused before as a republican. Earlier at headquarters, steven explained how it works. We click on each individual house. It pops up. The names of the People Living there. Their ages. We hit their name. It gives us a script to go by questionwise. Can ted cruz count on your support at caucus in february . I havent quite made up my mind. The phone tells steven what to say next. Is ted a candidate youre considering . Very much so. Totally different than what we used to do. In the past, if i had my little piece of paper with the thing on there, i might be able to write down. But this is instantaneous. Here, the volunteers phone told him dont knock on this guys door. The man was curious why. Im a democrat. Thats why youre not on our app. The data determined that knocking would have been a waste of volunteers time and the campaigns money. They know a lot about each voter. Thank you, byebye. If they subscribe to this magazine or watch this tv show, then you know theyre more likely to vote for ted . Thats two factors of 50,000 to 70,000. They even know what you eat. For someone who buys arugula, they tend to be more democratic. Someone who buys iceberg lettuce tend to be more republican. Trucks tend to be driven by republicans. Democratic cars, volvos. How do you know this . This is information on the open market. There are companies that consume enormous amounts of consumer data. Based on transactions that you and i make. Whether we opened a store loyalty card. Whether we subscribe to a magazine. All of this is logged when you get a knock on your door from canvassers. The message you receive is likely informed by this kind of data analytic. Do voters mind being targeted because a campaign has specific data on them . Thats the scary thought. Use every tool we can because we have to defeat those people. The corporate world has done this for years. One day an angry father showed up at a target store and asked to speak to the manager. The manager came out and the father said you have been spending my High School Age daughter ads and coupons for baby cribs and diapers. Shes in high school. Youre encouraging her to get pregnant. The manager just felt terrible. He said im so sorry. But one week later the manager called the father back to apologize again, and the father said, actually, i owe you an apology. I just spoke with my daughter. My teenage daughter. It turns out shes pregnant. Target knew before dad did. Target had identified 25 different products, that when people start to buy those things in combination with each other, it means that theyre likely pregnant. Ted cruz for president. How may i help you . The Cruz Campaign says it knows even more. What your personality is like. We are doing things that no one else is doing. Like . Like the use of personality modelling. Personality modelling tells chris and his team whos going to vote, how theyre going to vote, and what issues they care about. Chris shows us the database that tells him what voters care about. They respond to different colors. They respond to different pictures. So to reach personalities, the campaign determines to be more traditional. They use blue or neutral tones. We use words like alarmed, vulnerable, authority. So your foot soldier goes to his door. They know what buttons to push. They do. Its different from when the male or female comes to the door. We know where they are on moral issues. On immigration. Where they may be on gun rights. Not just where they are, but why. Maybe one person supports the Second Amendment because when they were a child, they went hunting with their grandfather. So for them, it brings back nostalgia, a sense of family. If thats the case, you can craft a message that hits the why they care about it. If youre a single mom. If youre carrying a revolver in your purse because you dont want to get mugged, a duck hunting ad is not going to do a thing to connect with you. So just on the Second Amendment, we have a dozen different messages. We have a cruise app that thousands of people have downloaded on to their phones. The Obama Campaign did that, too. By signing up for the app, they were able to identify the friends of the supporters and would send messages to their supporters saying hey, would you click this button to share with this friend . And it reached about five Million People. And having friends talk to friends is apparently most preswasive. The best way to connect with a voter is not through a tv ad, although that helps. But to hear why a person is important to them weve made it a game, so we have grass roots activists competing to spread the word. Reach out to ten of your friends today. If you do so, youll get a thousand points and youre only 900 points from making the next level. What do you get from points . You cant buy anything with them. You get badges. You get to move up the ranks and compete about who can be the best ted cruz. This motivates people . It absolutely does. There are some that are always the way up to leader and patriot and im working my way there. My producer back there tricked me into putting it on my phone. So now my friends are going to have their privacy invaded by you . Absolutely not. However, by 2012, obama supporters did have their privacy invaded. You may not know much about the campaign and how much it knew about you. Obamas campaign is watching you. Sounds like orwell. I dont remember any ire, but i do remember a lot of people who wanted to volunteer for the campaign. Innovation doesnt work without it being accessible. But people were very uncomfortable. As a result, facebook decided to shut down this feature. Sounds like ted cruz is doing something pretty close. The difference is this time theyre telling you that they are going through your friend list and they ask for your permission and they tell you everything they collect. Shouldnt we be nervous that our candidates are spying on us . Some people feel its a little manipulative. That campaigns are trying to shape behavior, trying to tell you what you want to hear. This is sleazy. It just lets you pander to certain people. Give them what they want. Im talking to you about common core. The only thing you care about is foreign policy, defeating isis, making sure the iran treaty is thrown out on the first day in office, then ive done a complete disservice to you as a voter because you dont know where ted cruz stands. Despite running fewer commercials than other candidates, cruz, by using data to target potential supporters and then convincing those people to go to caucuses, won a surprising victory in iowa. Thats the power of technology, is it amplifies the voice of each of us. A slick hollywood tv ad has its limits. Using technology to communicate with, to empower the grass roots. Thats the key to winning in politics in the 21st century. Winning in politics. I see where thats important to him, but lets remember that in politics, theres just one winner. The good news is that in the rest of life, the best of life, we have choices. Everyone can win. And thats what the rest of this show is about. Coming up, the robot car. This is exciting and scary. But next, how youtube lets people make money doing what they love. Pressure. Thats why theres coricidin® hbp. It relieves cold symptoms without raising blood pressure. So l Cold Medicine with a heart. Coricidin® hbp. Then you might beformance laptogearcentric. E bff . Right now, all pcs and printers are on sale like this hp laptop for just 199. 99 office depot officemax. Gear up for great®. What hand paired with even getmore lobster . Ked, you get hungry. And you count the seconds until red lobsters lobsterfest is back with the largest variety of lobster dishes of the year. 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If you sign up for better car replacement™, well pay for a car thats a model year newer with 15,000 fewer miles than your old one. See Car Insurance in a whole new light. Liberty mutual insurance. politely wait, wait, wait you. You have to rinse it first. Thats bakedon alfredo. Bakedon . Its never gonna work. Dish issues . Trust your dishwasher with cascade platinum. It powers. Through. Your toughest stuckon food. Better than finish. Cascade. Cant afford to let heartburn get in the way . Try nexium 24hr, now the 1 selling brand for frequent heartburn. Get complete protection with the new leader in frequent heartburn. Thats nexium level protection. Three years ago, amateur Baker Rosanna panzino decided to post videos of her adventures in baking. Id call this a cute hobby, except that today 5 Million People subscribe to her Youtube Channel and her videos have been seen more than a billion times. Im envious. Ive worked all my life. I never reach nearly that many people. You have more twitter followers than i do. How come youre the most popular baking show . I have no clue. That is a good question for everybody. She did not plan to bake for a living. She started working odd jobs in the movie business. I worked at a p. A. I worked as an extra. She got a job as a dancer in the tv show glee. There wasnt a career . Being a union dancer wasnt fulfilling for me. I wanted to do more. So she posted baking videos that she posted at home. Its going to take about a halfhour, so im going to play some Super Mario World it was just a Creative Outlet for me. She told her agent about it and he wasnt happy. My agent really made it easy for me. He told her if you dont stop making youtube videos, were going to drop you. Why did you decide youtube . I was getting more and more comments. And the community kept growing. It was the first time i ever went to target and i got recognized by a gal who worked at the store. She said i love the content youre creating. It makes me and my daughter so happy. You inspired her to start baking. And i was trying to tell my agent that theres value here. This is amazing. This is real. Comedian glozel green is another performer who caught on youtube. Youtube saved my life. It was not going that well. Because im not that funny. On the internet, if a couple minutes, theyre like oh, shes great. She even got to interview the president. Her silly Youtube Channel makes her 50,000 a year. This swedish guy makes 12 million just by talking while playing video games. No, no, drink the coffee. He leads forbes list of highest earning. Rosanna is number eight. She makes 2 million. Its such a Good Platform for people who are starting out who want to create content and dont have investors. Youtube keeps about 40 of the money . Uhhuh. And thats fine. This is a new way to discover unknown talent. Journalist steve napper covers the music business. Youtube is the great equalizer right now. Its like if you have an idea and youre talented or not talented, and you can put something up on youtube. Justin bieber got his start posting this video. The youtube numbers grew. And then a record label called. Every now and then, youtube creates a star. It used to be there were gate keepers. Some fat guy with a cigar says youve got to please me, maybe sleep with me to get the record. They dominated the record business for many, many years and they were the gate keepers. Because it costs tens of thousands of dollars. Right. Costs money to market your album. Costs money to put your song on the radio. Today you can get your album to millions of people around the world with just the click of a button. Theyre not asking for permission. Max runs a conference that Showcases New Technology and new artists. Look at lindsay sterling. She plays the violin. Imagine her showing up in one of the big Music Studios in new york saying hey, please, can i get a record deal . Im really good at the violin. But she did. She was turned down. Thats right. So all of a sudden she becomes a youtube sensation. Fills stadiums now. You cant argue with that. That is when the crowd decides. I think that people are very smart. I think theyre very intuitive and they pick up on when you love what youre doing, they can see it. This direct connection to the audience threatened the Music Industry. The record industrys traditional model has been selling pieces of plastic that contain all the music. And hundreds and hundreds of millions of records were being sold all the way up to the Britney Spears and Backstreet Boys era and people were making money hand over fist. Not anymore. Not anymore. In the late 90s, suddenly the internet kicks in. How many mp3s you have on your computer . About 6,000 or 7,000. Napster came in and allowed people to share all the music in the world for free and that was a threat to the business model. The Music Industry sued. They started by suing napster and others. So they freaked out and sued these people and sued their own customers sometimes. They sued a 13yearold girl and her family. It turned out to be some pretty bad publicity for the Music Industry in the end. Appetite for selfdestruction. Now the record labels license their music to streaming Services Like