# The Difference Between Digital Marketing and Traditional Advertising

## Метаданные

- **Канал:** Gary Vaynerchuk
- **YouTube:** https://www.youtube.com/watch?v=G9FGwnr4-lQ
- **Дата:** 29.12.2018
- **Длительность:** 21:54
- **Просмотры:** 96,432
- **Источник:** https://ekstraktznaniy.ru/video/18068

## Описание

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. 

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## Транскрипт

### Segment 1 (00:00 - 05:00) []

I regret tremendously not spending all my money on Google in 2001 to 2004 when I rewound how I built my dad's business it was because I was handed a full house it was called Google day one five cents a click my kak was 10 cents my LTV was $8 I didn't understand you got your prospective be happy don't you want to be happy something's become very obvious to me only in the last couple of weeks that maybe I'll pontificate a little bit here which is I think the biggest reason so many people within the marketing landscape do 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 happens 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 result of what everybody in this room is trying to achieve I just think that marketing and communications is an incredible way to get there to put away their thanks T right and so what is for a lot of you that don't know my career I was born in the former Soviet Union I came to the US and my father grew from being a stock boy to owning a small liquor store in New Jersey and when I joined that business I fell it first I fell in love with wine and wine collecting which was great because it's always good if you like what you're doing but I built my dad's business from a three to a sixty million dollar business very quickly in the late 90s without any B C capital even without a credit line when I think about how remarkable that growth was it was completely predicated on practicality which is really my North Star today no man you know if I had the luxury to sit and have dinner or breakfast with you one-on-one for four hours and we actually talked about what you're trying to achieve in your business so much of what I believe in whether it's Facebook or Instagram or content or you know text messaging is starting to really be fascinating to me because in the US and many other markets for about a decade we haven't allowed marketing inside of our text numbers and all of a sudden I'm seeing if I'm willing to do that which you can imagine is attractive for us marketers and business people so I think the biggest reason I'm you know interesting and debating in the marketing landscape is I'm not a product or a son of Nielsen ratings or data logics or brand lift studies or impressions or drop you know if you knew nothing about marketing and you were a normal business person you wouldn't be attractive to low CPMs you would be attractive to high CPMs because it would lead to what you're trying to achieve so I sit in marketing meetings in from major clients around the world I sit at conferences events like this and people pontificate on data in the middle that has nothing to do with the 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 I'm of the business result I'm not you know it's really interesting by only running businesses for myself my whole life I only care about long-term branding 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 thank you so much for being a part of this but I think that they're doing a not a good job in expressing how much branding is done in their channels because the conversion is so obvious for math and sales when I think about this room whatever it may be the business result that one's trying to achieve I watch so many of your behaviors globally in overspending for a list celebrities in Hollywood that don't have the value they used to in overspending in Qantas transactional Google and Facebook behavior where CAC and LTV are the religion and branding is not i watch a lot of things that if I bought your business or if I ran it I wouldn't believe in but everything in the system everything that the marketing industry has been built on for the last half century values things that I just don't think are mapping to reality I'm um fresh eyes to this industry I've only been in an environment where big companies have been part of my life for the last decade prior to that it was only entrepreneurship in Silicon Valley and so it's been an amazing journey for me the last half decade in watching what is put on a pedestal in an environment when you don't see every dollar spent where it goes to what happens when you fall too deep and they're just caring about the value of every dollar in the short term it's you know to be honest too for my DNA it's a bizarro world you know an industry that

### Segment 2 (05:00 - 10:00) [5:00]

goes to the south of France to celebrate itself on subjective creative and uses those awards to justify hundreds of millions of dollars and spend this fascinating this you know and I think the giggles and the giggles come from a deep understanding of the truth you know and so here we are in 2019 whether in the UAE America Europe all over the world you have a game of two individuals you have people who are spending money and it's not their business and you have people that are spending money and that's how they feed their family and those two people the way they spend their money and what they believe in have never been more opposite than today and that's what I'm fascinated by the people that are incentivized of the health of the business in the short and long term versus the people that are incentivized on the KPIs within the machine that they have to navigate through i deploy empathy I used to judge a lot of 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 playing a different game I'm running a marathon in perpetuity I put out content to be historically correct so I can trade on reputation in a decade not on what pays my bills in the short term so I have the advantage of the framework that I've stumbled into within this environment but it doesn't make it any less true and so a couple things that I would tell you know if you leave with anything then the one word I would leave with if you're in here today is volume the sheer volume of content that is needed by the businesses in this is staggering it's staggering if you get you're above the line creative agency to interpret your TB and make a ton more content for the internet if you have a digital shop that there's a lot of content if you do publishing deals where Conde or Hearst or refinery or pure Wow or giving you content if you build internal capabilities for content if you have all four of those things humming you're still 90% short on how much content you need in a 20-19 world if you understand how the googles and Facebooks and snapchats actually work if you are a deep practitioner of the media capabilities of 2019 across the biggest platforms which oh by the way in this region have so much attention it's uncomfortable if you really understand that you'll realize oh my god I need 20,000 8,000 unique pieces of content for different psychographic demographic individuals and as you all know even Vayner which I'm trying to move in the direction of being the disproportionate leader in quality and quantity there's no engine 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 in the last six months the thing that is absolutely synthesized which is my god if you really did it perfect you know and you really spent it every penny the way I did for my father's business perfect you need 20,000 pieces of meaningful content for a year that's about 19900 more than most people have and so that I think will be the debate over the next half decade how do you have quality content at scale to take advantage of the grossly underpriced media capabilities of the youtubes the snapchats the Facebook's and the instagrams over the next half decade then consumer behavior will change either to our hosts hope the prices become appropriate like they did a Google search or people's attention will move 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 look at the sheer data of what's happening in this region typically this is global outside of mainland China and Russia if you look at the sheer actual consumption not a GRP or an impression which is a potential reach but actual reach if you just look at YouTube Facebook Instagram and snapchat this is the golden era to market in this region and most people are not taking advantage of it because either a they've allocated dollars to traditional places based on reports of yesterday or B even if they are it's not successful because they don't have enough content to fill the pipes of the media distribution that to me is what's going on how much is made for them or for yourselves I think utility and entertainment can be made for them I think that if you look at a lot of the communications in this room I'm sure if you were to self audit you'd be surprised how much is self-serving that's very hard you do

### Segment 3 (10:00 - 15:00) [10:00]

that by whoever runs the company sets that tone every company's DNA is predicated on the CEO whoever she or he is they're gonna dictate that so she or he or disproportionally egotistical around subjective creative the whole organization will go up that I think that you know that's something outside the pay grade of like marketing that is just absolutely operational throughout the entire world you know what is being held up as a religion internally as fascinating. i looking at the you know knowing who's in this room you're either math doubt or your art out you know they're very few organizations that have a 50/50 balance you either have a DNA internally that disproportionately wants celebrities from Hollywood and wants a one-minute video that feels good or you're disproportionately Google and emailed out for CAC and ltb and I'm fascinated why most organizations haven't found that 50/50 balance and understanding how both matter and then more importantly how do we actually score within that right creative scorecard is laughable it's human subjectiveness or reports that are so laughably outdated or finally awards or finally three or four magazines that say it's a good piece of creative like the way we judge is meanwhile we live in a world where you can put this creative in a Facebook or YouTube environment and you can get qualitative feedback at scale and just listen to the customer instead the problem is most people start top down not bottom up so you overspend so heavily on one video that you're at the mercy of reporting or if so sir base testing or all these things that are just again if you don't know anything about him like I did an eight years ago when you actually study you know first time I ever heard award-winning work leads to business results which was like a big debate I heard in the advertising world I just had some two people on my team in research and strategy find out where that started it was funded by agencies sounds right and so I think those are the themes of today well I think everybody here should take a very simple stance like I did a long time ago which is that the internet will eliminate the middle-right if you actually understand what the internet does in its most basic form it eliminates anybody in the middle that provides no value that's the squeeze so for me I think everybody in this room needs to think about a couple things if the internet squeezes the middle that's how it plays out Airbnb makes so much sense to me if you think about it it's just inventory that exists that the internet connected to parties to no different than uber no different than everything else and so listen if you're an airline you know obviously somebody has to then own a plane and that becomes a cog that's more expensive than other but you know rules have less costs involved as we've seen play out and then you start getting into experiences and other variables but you can't just rely on the utility part of that you've got to layer it it's kind of how I think about what's happened with television it's the reason I knew that commercials were going to be in trouble it's not that I'm predicting it's every day that you see Netflix and YouTube consumption numbers go up that's a problem for a network television and then you just live in common 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 USA but sports commercials are good meanwhile the data is very black and white the biggest spike on social media is during the commercials of major sporting events because everybody wants to talk about LeBron or Messi or Tom Brady did right and so you know it just feels like one big game of inside baseball where there's a lot of financial incentives to hold up a facade that no longer exists and unfortunately for the biggest brands in the world the executives making the financial decisions are not incentivized to do the right thing they're incentivized to follow the scoring that's been created internally that's on the CEOs head if

### Segment 4 (15:00 - 20:00) [15:00]

you know it's funny a lot of people razz on me for 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 boy because this is what I was a kid when this happened I am unbelievably regret tremendously not spending all my money on Google in 2001 to 2004 when I rewound how I built my dad's business it was because I was handed a full house it was called Google day one 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 seemed normal to me I was digitally native this seemed like it made sense why wouldn't everybody do this and then it went away and then two thousand seven eight nine happened so for me we're sitting in that moment right now Instagram story ads are so grossly underpriced it's almost uncomfortable I've hi I'm running actually this is amazing mihari Union where yeah you know this in four minutes in five days my follow COUNTA my Gary the Arabic page went from nine hundred people to thirty thousand seven because we found a single piece of content that I converted into Arabic from a piece of content that is achieving 1. 9 cent follows on Instagram if you understand how like the friction to get somebody to follow you based on an impression think about how inexpensive I'm getting in front of every Arabic speaking person that is on Instagram to get one point nine cent follows so when I found out on a $200 spend that was working I just poured all my money into it and I the way I'm gonna pour all my money into it in perpetuity because I want to extract the underpriced nature of the media and I figured out how to create the volume of content that broke through to eventually get me a 1. 9 said follow because we've gotten on our xxx piece of content we got there not on our first people are running what making one video and then putting it on YouTube and Facebook and then saying is it work or not we're not producing creatively natively contextually to the platforms that we're advertising on we're using television mentality for the internet it's just it's remarkably wrong and not even Vayner and let alone all the traditional agencies are not in a position to create the work needed for the realities of the marketplace you mentioned Instagram and obviously there's a shift towards video talk us through creating great content for that and also in an increasingly mobile world can you build a brand involve all along of course you can because you can build a brand on attention and the sheer amount of attention on mobile is extraordinary as a matter of fact why would you know to me like 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 like outdoor but I don't like outdoor pricing in a world where while I saw my little outdoor piece I looked around the cars on the way here and every single person not driving was looking at their phone um even the drivers to your point I'm a very simple guy tell me where the attention is tell me what the cost is associated with it do I think that's right can I then create creative to fill it at a low enough cost that I can test 7 10 15 this is not a bee testing this is a to quadruple Z testing so for me it's about producing quality content at a low enough cost quality being contextual and empathetic not high production let me say that very slow cuz it's super important quality being contextual to the distribution and being empathetic you have to know how to overlay a sticker or animated Jeff on an Instagram story to get people's attention because that's native to that platform not doing matching luggage of your TVC for a short form 15-second video for youtube that's what big companies do they start with television you've already lost so you make a TBC or a brand campaign and then you ask somebody whether it's that agency or somebody else or internally to cut it down for Facebook and Instagram and YouTube you're already in trouble for a couple reasons by nature brand campaigns and television are Vennela because you're trying to reach everybody with the reach of that campaign if you start from the bottom you can go after expats from the UK versus expats from the US as you can imagine if you know that that's who you're gonna reach your message is gonna be slightly different I'm filming right now everywhere I go me and I rock like I'm standing outside with these beautiful views we're here a little early and I'm saying hey snapchat find out why I'm here at the UAE I'm literally filming for the

### Segment 5 (20:00 - 21:00) [20:00]

distribution just by saying what's up Facebook as my opening line disproportionately increases the share ability and earned media because I made the creative native to the distribution I didn't make one video that's gonna be super glossy and then try to use everything everybody views these channels as distribution I view them as contextual creative platforms I'm not trying to get reach that isn't achieved because I didn't make content for it everybody's playing in a GRP and reach world without having a common sense layer over it of are you actually getting that reach and then number two does your content speak to that reach we didn't have that with television but now I can attack the 7 million people in this market in 31 cohorts that matter men and women are different 18 year-olds are different than 40 tinier holes making a million dollars a year is different than making $40,000 a year we do not take that into account and creative because creative costs are too high the machines for creative aren't built for scale that is the rub in our industry the media people know this when I announced our framework 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 before somebody else does it was the media people that most like this creative strategy the creative people like to hold to the political power of making a subjective call not letting the market its reactions quant and qual dictate creative adjustment so it's a very interesting time right now we have way too many conversations in the ad world about the media side of things we are not having the proper conversation of the subconscious bias against the wrong creative process for this room