about the candidates, i should say. that's going to do it for us. "outnumbered," noon eastern tomorrow. look, mom. no hands. technology is changing our world. driverless cars will transform commutes. >> people are going to be reading the paper. >> already robots run some hotels. techies have changed election campaigns. >> a slick hollywood tv ad has its limits. >> and now some republicans say we've caught up. >> that's the power of technology. >> technology totally has changed entertainment. >> you saved my life. >> tada! >> this is amazing. this is real. >> imagine that. like feeling that. >> these young people plan to fix education. >> technologies are evolving so

rapidly and schools can't keep up. >> the future is beginning to be full of surprises. >> politicians often fight the future. >> ridiculous and it's grotesque. >> you say it's exciting. some people say this is creepy. >> and i don't disagree in any way. but it's 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. >> we're 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 data-driven, data-analytic 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 close-minded 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.

>> obama's data operation was lead by harper reid. >> the obama campaign's real heroes, harper reid, the technology mastermind behind obama's win. >> i'm an incredible person.ed, technology mastermind behind obama's win. >> i'm an incredible person. this is a very straight forward thing here. >> you got credit for obama's victory. >> i was just a cog. i just looked differently so the media didn't know what to do with me. >> the media same the romney campaign was high-tech. >> 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. it's kind of a joke, really. once it leaked, nobody knew what

to do. suddenly there was this mythical narwhal. then everyone was like, what's narwhal? >> meanwhile, romney's 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 haven't caught up, it's their fault. >> she's definitely considering ted, which is fantastic. >> we have caught up, says the cruz campaign. >> i went and bought a copy of obama's campaign manager's book, the audacity to win, gave it to our senior team. said we are going to nakedly and shamelessly emulate this. that's 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 cruz's 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. >> we're going to be working in west des moines. >> each volunteer's phone tells him where to go. >> see your neighborhood. you're in here for a reason. you've 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 question-wise. >> can ted cruz count on your support at caucus in february? >> i haven't quite made up my mind. >> the phone tells steven what to say next. >> is ted a candidate you're 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 volunteer's phone

told him don't knock on this guy's door. the man was curious why. >> i'm a democrat. >> that's why you're not on our app. >> the data determined that knocking would have been a waste of volunteers' time and the campaign's money. they know a lot about each voter. >> thank you, bye-bye. >> if they subscribe to this magazine or watch this tv show, then you know they're more likely to vote for ted? >> that's 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? >> that's 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. she's in high school. you're encouraging her to get pregnant. the manager just felt terrible. he said i'm 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 she's 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 they're 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 -- >> who's going to vote, how they're 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. it's 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 that's the case, you can craft a message that hits the why they care about it. if you're a single mom. if you're carrying a revolver in your purse because you don't 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 -- >> we've 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, you'll get a thousand points and you're only 900 points from making the next level. >> what do you get from points? you can't 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 i'm 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.

>> obama's campaign is watching you. sounds like orwell. >> i don't remember any ire, but i do remember a lot of people who wanted to volunteer for the campaign. innovation doesn't 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 they're telling you that they are going through your friend list and they ask for your permission and they tell you everything they collect. >> shouldn't we be nervous that our candidates are spying on us? >> some people feel it's 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. >> i'm 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 i've done a complete disservice to you as a voter because you don't 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. >> that's 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. that's the key to winning in politics in the 21st century. >> winning in politics. i see where that's important to him, but let's remember that in politics, there's just one winner. the good news is that in the rest of life, the best of life, we have choices. everyone can win. and that's what the rest of this show is about. coming up, the robot car. this is exciting and scary.

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comcast business. built for business. when it comes to the fithings you love,. you want more. love romance? get lost in every embrace. into sports? follow every pitch, every play and every win. change the way you experience tv with x1 from xfinity. three years ago, amateur baker rosanna panzino decided to post videos of her adventures in

baking. i'd 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. i'm envious. i've worked all my life. i never reach nearly that many people. >> you have more twitter followers than i do. >> how come you're 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 extr >> she got a job as a dancer in the tv show "glee." >> there wasn't a career? >> being a union dancer wasn'tl. i wanted to do more. >> so she posted baking videos that she posted at home. >> it's going to take about a half-hour, so i'm going to play some super mario world! >> it was just a creative outlet for me. >> she told her agent about it and he wasn't happy. >> my agent really made it easy

for me. >> he told her -- >> if you don't stop making youtube videos, we're 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 you're creating. it makes me and my daughter so happy. you inspired her to start baking. and i was trying to tell my agent that there's 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 i'm not that funny. on the internet, if a couple minutes, they're like oh, she's 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. >> it's such a good platform for people who are starting out who want to create content and don't have investors. >> youtube keeps about 40% of the money? >> uh-huh. and that's fine. >> this is a new way to discover unknown talent. >> journalist steve napper covers the music business. >> youtube is the great equalizer right now. it's like if you have an idea and you're 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 you've 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. >> they're 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? i'm really good at the violin. >> but she did. she was turned down. >> that's right. so all of a sudden she becomes a youtube sensation. fills stadiums now. you can't argue with that. that is when the crowd decides. >> i think that people are very smart. i think they're very intuitive and they pick up on when you love what you're doing, they can see it.

>> this direct connection to the audience threatened the music industry. >> the record industry's 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 toto 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 13-year-old girl and her family. it turned out to be some pretty bad publicity for the music industry in the end. >> appetite for self-destruction. now the record labels license their music to streaming

services like apple, spotify, pandora. >> these changes now happen so fast. >> how does a musician make money? >> going on tour. >> doesn't that mean that fewer people can make a living this way? not everybody can go on tour. >> it does. it's a very diminished business than what it was ten or 15 years ago. however, there are many opportunities for younger bands to get big. >> and the audience wins, too. >> we have all the music we could ever want for free or for a minimal price on our fingertips. >> it's the golden age for consumers right now. >> but it's not yet a golden

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clearly needs to be faster, better, cheaper is education. and the tech revolution has plans for that, too. >> where are we at with this? where we at? >> these young people have gathered to hold a hack-a-thon called hacking edu. it's usually a weekend-long gathering where computer nerds try to invent something better. >> hack sounds like a criminal enterprise where you're breaking into people's computers. >> what we mean is build. >> hack just means build? >> exactly. hack means build something quickly without worrying about polish or making it look pretty. >> this hackathon happened because alex corey e-mailed 50 friends who were frustrated by the education system. >> alex always had this grand vision of we would have this huge event with over a thousand people. >> and you got this. >> and we kdid. >> we had people fly in from india, from singapore, from

kuala lumpur, from all over the world because they were so frustrated and so fed up and said finally, a chance for me to actually express my ideas. a chance for me to actually build and do something about these issues that i see. >> what he sees is something that both the left and right complain about. >> our educational system has failed our children. >> this is the fight we have to win for our kids. >> for years, politicians promised to fix education. >> we're going to cut out unnecessary forms, applications, red tape. >> when that dream disappeared, ronald reagan promised. >> the national campaign to restore excellence in american education. >> when students still performed miserably, another president promised -- >> no child will be left behind. >> but billions in top-down tax dollars accomplished nothing. >> there's a lot to be pissed off about. >> at hackathons, young people compete for days to try to create something unique. >> boom. imagine that. like feeling that. >> people work all weekend? >> oh, yeah.

>> 36 straight hours. they're eating junk food. drinking soda and red bull. and you're up all night having this crazy competition happening is really what pushes innovation and pushes the envelope. >> why can they create better stuff in this big room with a bunch of other hackers that they can't do in their basement? >> when you get all these programs together in one place, the energy is there. >> for three days, everyone competed to invent a better high-tech education. some build iphone ads. this group worked on a robot. >> kids can learn how to program and use real life robotics and hardware. >> the hacking education winner was this. it's kind of like uber for tutors. it lets you compare tutors and hire them anywhere. >> we have a list of all the tutors nearby. >> meeting with potential investors. >> is this real? >> i still can't believe it. >> think about it like sports for nerds. >> nerds who don't just talk about new ways to educate.

>> we actually built it and implemented it. they said that's great, let's take this code and push it live. >> many people here wanted to improve college education, but they learned that the university resists new ideas. >> i would go and pitch them to my professors. they're like, those are great ideas. but good luck with the red tape. >> technologies are evolving so rapidly and schools can't keep up. >> you're never going to get there with all this bureaucracy. >> so it's the people my age who are in charge, holding you people back. >> it's the mentality, this is how we've always done it. this is how we're going to continue to do it. they don't have this start-up mentality. >> higher education is powerful because it owns the power of credential. but today, most graduates don't get jobs that require a degree. >> the best i do is working for $10 an hour at a grocery store. >> david morris got top grades