“Regret tremendously not nspending all my money on google in 2001 to 2004. When i i rewound how i nbuilt my dad s business. It was because i was handed full house. It was called google day none five cents a click my cac was 10 cents.
My ltv was 8. I didn t understand you got your perspective audience cheering. I just wanna be happy don t you wanna be happy something that s become very obvious to me only in the last couple of weeks that maybe i ll pontificate na. Little bit here.
Which is i think the biggest reasons. So many people within the marketing landscape. Ndo have disagreements with some of my points of view. Is because i really don t think of myself as a marketer for say.
I no question think of myself far more as a business operator. Who nhappens to have a knack or an intuition towards marketing. Which has helped me throughout my career. But everything i believe in is predicated on the final nresult of what everybody in this room is trying to achieve.
I just think that marketing nand communications. Is an incredible way to get there put it right there thanks d rock for a lot of you that don t nknow my career. I was born in the former soviet union. I ncame to the us and my father grew from being a stock boy nto owning a small liquor store in new jersey.
And when i joined nthat business first i fell in love with wine and wine ncollecting. Which was great because it s always good if nyou like what you re doing. But i built my dad s business nfrom a three to a 60 million business. Very quickly in the late 90s without any vc capital neven without a credit line.
When i think about how nremarkable that growth was it was completely npredicated on practicality. Which is really my north star today. If i had the luxury to sit nand have dinner or breakfast with you one on one for four nhours and we actually talked about what you re trying to nachieve in your business. So much of what i believe in whether it s facebook or ninstagram or content text messaging is starting to nreally be fascinating to me because in the us and many nother markets for about a decade.
We haven t allowed marketing ninside of our text numbers and all of a sudden. I m seeing npeople willing to do that which you can imagine is nattractive for us marketers and business people i think the biggest reason ni m interesting and debating in the marketing landscape nis. I m not a product or a son of nielsen ratings or ndatalogix or brand lift. Studies or impressions.
If you knew nothing about nmarketing. And you were a normal business person you wouldn t nbe attracted to low cpms. You would be attracted to high ncpms because it would lead to what you re trying to achieve. So i sit in marketing nmeetings from major clients around the world.
I sit at nconferences events. Like this and people pontificate non data in the middle that has nothing to do with nthe end business. Result that is my problem. That is why i m an outlier that s why i m different.
I m not of the machine ni. m of the business result. It s really interesting nby only running businesses for myself my whole life. I only care about long term.
Nbranding and marketing. A lot of times people think about digital as a short term sales funnel. I think of it as reverse. I think facebook and instagram nand.
Thank you so much for being a part of this but ni think that they re doing not a good job in expressing nhow much branding is done in their channels. Because nthe conversion is so obvious for math and sales when i think about this nroom whatever it may be the business result that none s trying to achieve i watch so many of your behaviors nglobally in overspending for a list celebrities in hollywood that don t have the value they used to and overspending in quant based ntransactional. Google and facebook behavior. Where ncac and ltv are the religion and branding is not i watch a lot of things that nif.
I bought your business or if i ran it i wouldn t nbelieve in but everything in the system everything that nthe marketing industry has been built on for the last nhalf century values things that i just don t think nare mapping to reality. I m fresh eyes to this industry. I ve only been in an nenvironment where big companies have been part of my nlife for the last decade prior to that it was nonly entrepreneurship and silicon valley. So it s been an amazing journey nfor me the last half decade in watching what is put on na pedestal in an environment when you don t see every ndollar spent.
Where it goes to what happens. When you fall ntoo deep into just caring about the value of every ndollar in the short term to be honest for my dna..
Nit s a bizarro world. An industry that goes to the nsouth of france to celebrate itself on subjective creative nand uses those awards to justify hundreds of nmillions of dollars in spend is fascinating audience laughing. It is and the giggles come from a deep understanding of the truth here we are in 2019 whether nin. The uae america europe all over the world.
You have na game of two individuals you have people who are spending money and it s not their business nand. You have people that are spending money and that s how they feed their family and those two people. The nway they spend their money and what they believe in nhave never been more opposite than today. And that s nwhat.
I m fascinated by the people that are nincentivized of the health of the business in the short nand long term versus the people that are incentivized on nthe kpis within the machine that they have to navigate through i deploy empathy. I used to judge a lot nof people in this room on paper a decade ago. I thought i was smarter. I know i m not smarter.
I just know that i m nplaying a different game. I m running a marathon in perpetuity. I put out content to be nhistorically correct. So i can trade on reputation in a decade nnot on what pays my bills in the short term so i have the advantage of the framework that i ve stumbled into nwithin this environment.
But it doesn t make it any less true so couple things if you leave nwith anything the one word. I would leave with if you re nin here. Today is volume the sheer volume of content. Nthat is needed by the businesses in this room is staggering.
It s staggering. If you get your above the line ncreative agency to interpret your tv and make a ton more ncontent for the internet. If you have a digital shop nthat does a lot of content. If you do publishing deals where nconde or hearst or refinery or purewow are giving you content.
If you build internal ncapabilities for content. If you have all four of nthose things humming you re still 90 short on nhow much content you need in a 2019 world. If you nunderstand how the googles and facebooks and snapchats actually work. If you are a deep practitioner nof.
The media capabilities of 2019 across the biggest nplatforms. Which by the way in this region have so much nattention. It s. Uncomfortable if you really understand nthat you ll realize my god i need 20000.
8000. Unique npieces of content for different psychographic demographic. Nindividuals and as you all know even vayner which i m trying nto move in the direction of being the disproportionate nleader in quality and quantity. There s no nengine in the world right now that s even remotely close to the needs that we actually have so that to me is the big one that to me is in the nlast six months.
The thing that is absolutely nsynthesized. Which is my god if you really did it perfect nand you really spent it every. Penny the. Way i did for nmy father s business.
Perfect you need. 20000 pieces. Nof meaningful content for a. Year that s about 19900.
Nmore than most people have so that i think will be the debate over the next half decade. How do you have quality content. Nat scale to take advantage of the grossly underpriced nmedia capabilities of the youtubes. The nsnapchats.
The facebooks and the instagrams over nthe next half decade then consumer behavior will nchange either to our hope. The prices become appropriate nlike. They did on google search or people s attention will nmove on like it was on myspace that i don t know i don t guess i only trade on the day. We live in what i know is if you nlook at the sheer data of what s happening in nthis region.
Specifically. And this is global outside nof mainland. China and russia. If you look at the sheer nactual consumption.
Not a grp or an impression. Which nis a potential reach..
But actual reach if you just look at nyoutube facebook. Instagram and snapchat. This is nthe golden year to market in this region. And most people nare not taking advantage of it because either a nthey.
ve allocated dollars to traditional places based non reports of yesterday or b. Even if they are nit s not successful because they don t have enough content to fill the pipes of nthe media distribution that to me is what s going on you mentioned about nhow. Much of the content is actually made for utility. Nor.
How much was actually made for ourselves right how much is made for nthem or for yourselves. I think utility and entertainment ncan be made for them. I think that if you look at na lot of the communications in this room. I m sure if nyou were to self audit.
You d be surprised how nmuch is self serving exactly. And that s the npoint. I wanna come to there s a level of awareness. Nthat companies need to have in terms of what they re ndoing inside the organizations for their own ego and how ndo you instill something a culture in an organization nthat.
They re actually aware of what they re doing for nthemselves versus for all that s very hard you do that by whoever runs nthe company sets that tone every company s dna is npredicated on the ceo whoever she or he is nthey re gonna dictate that so if she or he are ndisproportionately egotistical around subjective creative. The whole organization will go up that i think that that s something noutside the pay grade of marketing. That is just nabsolutely operational throughout the entire world. What is being held up nas a religion.
Internally is fascinating knowing who s in this room nyou re either mathed out or you re arged out. There are very few organizations nthat have a 50 50 balance you either have a dna internally nthat disproportionately wants celebrities from nhollywood and wants a one minute video that feels good or you re ndisproportionately. Google and emailed out for cac nand ltv and i m fascinated why most organizations haven t nfound that 50 50 balance and understanding how both nmatter and then more importantly. How do we actually score within that creative scorecard is laughable.
It s human subjectiveness or nreports that are so laughably outdated or finally. Nawards. Or finally three or four magazines that say nit s a good piece of creative. The way.
We judge is nmeanwhile we live in a world. Where you can put this ncreative in a facebook. Or a youtube. Environment.
And you can get qualitative feedback. At scale and just listen to the customer instead. The problem is most people nstart top down not bottom up. So you overspend so heavily non one video that you re at the mercy of reporting.
Nor ipsos or ace testing or all these things that are njust again. If you don t know anything about them like ni didn t eight years ago. And you actually study first time i ever heard naward winning work leads to business results which nwas like a big debate. I heard in the advertising world.
I njust had two people on my team in research and strategy nfind out where that started it was funded by agencies sounds right. I think those are the themes nof today. No question and themes in terms of nrisks. We re seeing this huge disruption across lots nof different industries.
Uber airbnb etc. How do ncompanies try to identify the shifts that are gonna ncome. These tectonic shifts that are taking place and nwhat should they do about it well. I think everybody here should take a very simple stance nlike.
I did a long time ago. Which is that the internet nwill eliminate the middle. If you actually understand nwhat the internet does in its most basic form it neliminates anybody in the middle that provides no value that s the squeeze. So for me i think everybody nin this room needs to think about a couple things if the internet squeezes the middle that s how it plays out airbnb made so much sense nto.
Me. If you think about it it s just inventory that exists that the internet nconnected two parties to mo different than uber. No ndifferent than everything else listen if you re an airline nobviously. Somebody has to then own a plane and that becomes a cog that s more expensive than other things.
But rooms have less costs ninvolved as we ve seen play out. And then you start ngetting into experiences and other variables..
Nbut you can t just rely on the utility. Part of that you ve gotta layer it it s how i think about what s nhappened with television. It s the reason. I knew that commercials were gonna be in trouble it s not that i m predicting nit s every day that you see netflix and youtube nconsumption.
Numbers go up that s a problem for a network television. And then you just live in ncommon sense. Like consuming a commercial during a television program is a very wild rarity in 2019 when we all have mobile devices. I always laugh when people in the us say but sports commercials are good meanwhile.
The data s nvery black and white. The biggest spike on social media is during the commercials nof major sporting events because everybody wants to talk about what lebron or messi or tom brady. Did it just feels like one big ngame of inside baseball where there s a lot of nfinancial incentives to hold up a facade that no longer exists and unfortunately for the nbiggest brands in the world. The executives making nthe financial decisions are not incentivized nto do the right thing they re incentivized to follow the scoring.
That s been created internally that s on the ceo s head. Given the shifts that nyou re talking about explain some of the other nsteps that you would take if you were a marketer given the environment you just painted. You know it s funny a lot of people razz on me nfor my absolute statements. But i think of marketing like poker.
If you have the best hand you go in i m a boy and i say a nboy because i was a kid when this happened i am. Unbelievably. I regret tremendously not nspending all my money on google in 2001 to 2004. When i rewound how i nbuilt my dad s business.
It was because i was handed a full house it was called google day none five cents a click my cac was 10 cents. My ltv was 8. I didn t understand because i didn t know i didn t have experience yet. I didn t know how to quantify it it seemed normal to me.
I was digitally a native this seemed like it made sense. Why wouldn t everybody do this. And then it went away and then 2007 8 9. Happened so for me.
We re sitting nin that moment right. Now instagram story ads are nso grossly underpriced. It s almost uncomfortable actually. This is amazing maha you in here n.
Maha yes. I m right here well you know this in four minutes in five ndays my follow account on my gary vee arabic page went nfrom 900 people to. 30000 maha. 700 people 700 people to 30000.
Because nwe. Found a single piece of content that i converted. Ninto arabic from a piece of. Content that is achieving n19.
Cent. Follows on instagram. If you understand the friction nto get somebody to follow you based on an impression nthink about how inexpensive. I m getting in front of nevery.
Arabic speaking person that is on instagram to nget 19. Cent. Follows. So when i found out on a 200 nspend that that was working.
I just poured all my nmoney into and by the way i m gonna pour all my nmoney into it in perpetuity cause. I wanna extract the nunderpriced nature of the media and i figured out how to ncreate the volume of content that broke through to eventually. Nget me a 19. Cent.
Follow. Because we ve gotten on nour 30th piece of content. We got there not on our first people are making one video nand then putting it on youtube and facebook. And then nsaying does it work or not we re not producing creatively nnatively contextually to the platforms that nwe re advertising on we re using television nmentality for the internet.
It s remarkably wrong not even vayner and let alone nall the traditional agencies are not in a position to ncreate the work needed for the realities of the marketplace. Talk us through a ncouple of things..
There. You mentioned. Instagram and nobviously. There s a shift towards video talk us through creating ngreat content for that and also in an increasingly mobile.
World can you build a brand on mobile. Alone of course you can because nyou can build a brand on attention. And the sheer namount of attention on mobile is extraordinary as a matter of fact to nme when i look at outdoor and i like outdoor. There was a nice little digital outdoor of me speaking today i get excited about that i nlike outdoor.
But i don t like outdoor pricing in a world nwhere while i saw my little outdoor piece. I looked around nthe cars on the way here and every single person not driving was looking at their phone. Even the drivers to your point. I m a very simple guy tell me where the attention nis tell me what the cost is associated with it do i think that s right can i then create creative to nfill.
It at a low enough cost that i can test seven 10 15. This is not a b testing this nis. A to quadruple z. Testing so for me.
It s about nproducing quality content at a low enough cost quality being contextual and empathetic not high production. Let me say that very slow ncause. It s super important quality being contextual nto. The distribution and being empathetic you have to know how to overlay na sticker or an animated gif on an instagram story to nget people s attention cause that s native to that nplatform not doing matching luggage of your tvc for a nshort form 15 second video for youtube.
That s what big companies do yeah talk us through. How ncompanies are getting it wrong you mentioned. There. What we can do they start with television.
You ve already lost you make a tvc or a brand ncampaign and then you ask somebody whether it s that agency or nsomebody else or internally to cut it down for facebook nand instagram and youtube you re already in trouble nfor. A couple reasons by nature brand campaigns. Nand television. Are vanilla cause you re trying to reach neverybody with the reach of that campaign.
If you start from the bottom nyou can go after ex pats from the uk versus ex pats from the us as you can imagine if you know nthat that s who you re gonna reach your message is ngonna be slightly different. I m filming right now neverywhere. I go me and d rock. I m standing outside with nthese beautiful views and we re here a little nearly and i m saying hey snapchat find out nwhy.
I m here at the uae. I m literally filming for the distribution. Just by saying. What s up nfacebook as my opening line disproportionately nincreases.
The shareability and earned media. Because ni made the creative native to the distribution. I didn t make one video nthat s gonna be super glossy and then try to use everything everybody views these nchannels as distribution. I view them as contextual ncreative platforms.
I m not trying to get nreach that isn t achieved because i didn t make content for it everybody s playing in a grp nand reach world without having a common sense layer over it nof are you actually getting that reach and then number ntwo does your content speak to that reach we didn t have that with ntelevision. But now i can attack the seven million people in this market. In 31 cohorts that matter men and women are different. 18 year olds are different nthan 49 year.
Olds making a million dollars na year is different than making 40000. A year. We do not take that ninto account in creative because creative costs are too high the machines for creative naren t built for scale that is the rub in our industry. The media people know this when i announced our nframework that leads off of what i m talking about in september.
Where i started my company meeting with i m gonna put us out of business nbefore somebody else does it was the media. People that most liked this creative strategy. The creative people like to nhold onto the political power of making a subjective call nnot letting the market. It s reactions quant and qual ndictate creative adjustment.
So it s a very very ninteresting time right now we have way too many nconversations in the ad world about the media side of things we are not having the proper conversation of the subconscious bias against nthe wrong creative process for this story. ” ..
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“Nobody, including myself, Is putting out enough content to take full advantage of social media marketing. If you are a business that spends hundreds of thousands of dollars on just one add that you push to everybody on the internet, you are going to lose. Businesses need to start making ads in a much greater volume that are designed for different demographics and even sub-demographics that can relate to a specific ad, instead of one extremely broad message that nobody really connects with. nn nIf you haven t joined my #FirstInLine community, you need to jump on it ASAP! By joining #FirstInLine, my messaging program, you get details on exclusive giveaways that I m doing, updates regarding my keynotes/conferences, and more 😉 You can join here:nhttps://garyvee.com/JoinFILnnThank you for watching this video. I hope that you keep up with the daily videos I post on the channel, subscribe, and share your learnings with those that need to hear it. Your comments are my oxygen, so please take a second and say Hey ;).n nGet my newest shoe here:nhttps://garyvee.com/GaryVee003n nFollow my journey as an #entrepreneur here:nhttps://www.youtube.com/playlist?list=PLfA33-E9P7FA-A72QKBw3noWuQbaVXqSDn n Subscribe to my channel here: http://www.youtube.com/subscription_center?add_user=GaryVaynerchuknn Check out my second channel here:nhttp://www.youtube.com/askgaryveen nGary Vaynerchuk is the chairman of VaynerX, a modern-day media and communications holding company and the active CEO of VaynerMedia, a full-service advertising agency servicing Fortune 100 clients across the company s 4 locations. nnIn addition to VaynerMedia, VaynerX also includes Gallery Media Group, which houses women s lifestyle brand PureWow and men s lifestyle brand ONE37pm. In addition to running VaynerMedia, Gary also serves as a partner in the athlete representation agency VaynerSports, cannabis-focused branding and marketing agency Green Street and restaurant reservations app Resy.nnGary is a board/advisory member of Ad Council and Pencils of Promise, and is a longtime Well Member of Charity:Water.nnGary is a highly sought after public speaker, a 5-time New York Times bestselling author, as well as a prolific angel investor with early investments in companies such as Facebook, Twitter, Tumblr, Venmo, and Uber.nnGary is currently the subject of DailyVee, an online documentary series highlighting what it s like to be a CEO and public figure in today s digital world, as well the host of The GaryVee Audio Experience, a top 100 global podcast, and host of #AskGaryVee, a business and advice Qu0026A show which can be found on both YouTube and Facebook.nnGary also appeared as judge in Apple s first original series Planet of the Apps alongside Gwyneth Paltrow, Jessica Alba and Will.i.am.n nCheck out my Alexa skill!:nhttp://garyvee.com/garyvee365n nFollow Me Online Here:nn2nd YouTube: http://www.youtube.com/askgaryveenInstagram: http://instagram.com/garyveenFacebook: http://facebook.com/garynFacebook Watch: http://facebook.com/garyveenLinkedIn: https://www.linkedin.com/in/garyvaynerchuk/nSnapchat: http://snapchat.com/add/garyveenWebsite: http://garyvaynerchuk.comnSoundcloud: http://soundcloud.com/garyvee/nTwitter: http://twitter.com/garyveenMedium: http://medium.com/@garyveenPodcast: http://garyvaynerchuk.com/podcastnWine Library: http://winelibrary.comnOfficial Merchandise: http://garyveeshop.comnnSubscribe to my VIP Newsletter for exclusive content and weekly giveaways here: http://garyvee.com/GARYVIP”,
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