GOP 2.0

John McCain's Chief Strategist Steve Schmidt provides some insight into what went wrong with the McCain campaign and what the Republican Party needs to do:

Well, I would say this. When you look at the campaign, one of the results of this campaign is the reality that public financing is dead. And the Obama campaign changed the scale of American politics by their fundraising operation, and their use of technology. Each party develops techniques, usually when they’re out of power, for the purpose of gaining power on the next election—need being the mother of all inventions. You saw Republicans pioneer direct mail in an earlier age. You saw, you know, the use of television advertising pioneered in an earlier age. You saw microtargeting—you know, the overlaying of consumer and consumer data against the voter file, earlier in the decade, to much effect. There’s been a profound leap forward in technology and from a community organizing perspective by the Obama campaign in this election. The Democratic Party is a generation ahead technologically. And the Republican Party is going to have to be competitive to catch up in a world where viral information is just as important as what might be in the network news.