TAP Conference 2015 - Gary Vaynerchuk Keynote

morning hey guys uh so you know I I just listened to that and have a good sense of been following the tweets and I think we can probably all weirdly agree that at some level this is a pretty stupid conference right because if you think about it the thought of having a conference to like push the envelope of getting everybody to think about mobile as an important place to do things is ludicrous right the I mean for anybody to not understand that it's the closest thing to the extension of a human being right like for anybody to even debate that every you know we're now 20 years into the current state of the internet right you know like it's been 20 years since Windows 95 came out and normal people non- nerds went on the platform and so we now have the luxury of recognizing that all these things just repeat themselves like everybody thinks I've like I know some of you know me and some don't but I have a I built a large wine business mainly on web 1. 0 Dynamics right you know 1996 e-commerce site email marketing Banner Google AdWords and then social kind of came along which you know for a lot of us we remember was really just called Web 2. 0 and they just changed the word right and so these things came along and then all the Dynamics you know everyone's like oh you're so good at social media I'm like right because it's just like email marketing it's just like direct mail it's just like the same thing meaning even this company which I was an angel investor in button the theory was we did this for desktop we're just going to do it for app culture it it's I'm just curious I almost want to turn this into a weird Q& A instead of a talk I'm just curious if this is even a worthwhile conversation isn't this a complete foregone conclusion I almost feel like I'm going to start a conference called oxygen con oxygen matters of course it matters like there is nothing else like there is no other ecosystem that's going to matter in the business world this is where the money is going to be action is this is the first second I run a 600 person digital social advertising agency right now and you know there's a lot of terminology like the first screen the second screen a lot of people refer to this as a second screen because I guess the TV is supposed to be the first screen this is the first second 3D fourth fifth and sixth screen right I dropped my phone the other day and my glass cracked and so I wanted to get it changed and apple said cool you can get it changed come to The [ __ ] Genius Bar I go I get there I'm supposed to get it back in two hours they said Oh weird we have to give it to you tomorrow morning I literally ran home and walked around with my laptop because I couldn't not be connected like literally everywhere like outside took my kids to Central Park holding my laptop because I need to get my text messages in that place I mean the thought the debate that this even needs to be talked about or like there's no conference that addresses this maybe not in the most narrow sense but every conference addresses it like what do we talk about when we talk about consumer behavior and what people are happening everything and only comes from mobile app culture I don't know and then the Commerce part um maybe I'll just share something that might be interesting I started a uh I still own my family wine business I haven't really been involved with it that much but recently in the last year I've gotten a little bit more involved and I uh I started an Instagram account

called wine deals so real quickly it'd be awesome if you guys would follow that account um and so wine deals is an account that we created mainly to just sell wine at a ridiculously low price and free shipping on bottle number one there was a lot of innovation in the wine space that followed the Groupon uh Living Social model of deal of the day kind of Dynamics and I felt that Instagram had an opportunity to become the next Arbitrage of that same exact Behavior aka the same stuff just works everywhere else you just have to deploy it and make it contextual to the reality of that Marketplace as many of you guys know in Instagram because of the functionality people tag their friends all day long in the comments which creates enormous awareness because Instagram right now is dominating the attention graph which oh by the way is the only [ __ ] thing that matters always and forever it's about attention you reverse engineer it that's where the money is that's why all this [ __ ] that we'll talk about today is going to work because all our attention is directly transposed in here 24/7 365 and that's why it's going to work and then people figure out how to make it work in that environment so Instagram which owns the attention graph in a social environment because I can have 1 million Twitter followers and tweet something and 58 things will happen I can have 150,000 followers on Instagram and 4,000 things will happen that's attention that's the [ __ ] that matters 90% of the market cares about wi cuz they're [ __ ] stupid it's all about depth that's where you actually make things happen and so you should check out at wine deals because here's what's interesting as everybody's trying to figure out what's the ROI and how do you make this happen Commerce in Mobile is so phenomenal that the execution of wine deals right now is such horseshit it makes me so embarrassed that I'm associated with it right because it's Instagram you put a [ __ ] picture you can't link out if you're not running an ad so literally you push a picture of a bottle of wine you give the information there's a discount code in the [ __ ] post because wi library. com is a piece of [ __ ] because I haven't paid attention to it in a while and so you see that and then the link out is actually in your profile because it's the only way you can link it out you link it out it sends you to the current offer it's a complete disaster show there's nothing good the level of friction is so insane you get like burn on your thumb for even being involved right yet with all that we sell a [ __ ] load of wine through it because Commerce and mobile is a foregone conclusion because Commerce happens wherever attention is and that's what this whole thing is about that's what it's about it's as simple as that the only asset That Matters to everybody in this world is broken down in the following order number one you care about your family and the people you love number two you care about money right and number three and this has been the most interesting one I'll tell you a story about it that will contextualize my whole thesis on what matters here

number three is time has become outrageously important to all of us because we live in a 247 365 world now and so one of the big mistakes in my investment career is I passed on the angel round of uber twice which really hurts um and uh and the reason I invested in the next round was because my brother AJ took the first Uber in New York City when Travis came and he said hey can you guys test this out so AJ takes the Uber we're sitting in our office he takes the Uber he goes out and I used Uber in San Francisco at this point but there was just something about it working out in New York where we have the greatest transportation of all time and 100th of a second before you know AJ takes the Uber we're in the office still just jamming on what we had a jam on and he goes downstairs and it just clicked to me because it was just so in my face in real life that Uber doesn't sell Transportation Uber sells us time right and so the reason all this infrastructure matters in an app culture is it's just seamless there's less friction that 130 second matters those two seconds matter right this is really the most important part of all this what matters when you start integrating these pumps these pipes excuse me and let these apps speak together is just it brings us value and in the place where it really matters to us which is time and time is the asset it's why I'm so passionate about advertising because advertising for 60 years has done the opposite it's taken away time from you right you want to read this article you turn the page there's a big [ __ ] car ad that you know second used to not bother you as much you wanted to watch Happy Days because you like the [ __ ] fonds you're watching it they stop you they try to sell you cereal right and that we just got used to that then all of a sudden DVR came right now we have ad block incoming it's just that game right time is the asset that is why mobile 100% will win let me ask you guys a quick question let's just mix it up for a second show of hands by the way lying is the devil and two please don't be lazy like I [ __ ] hate when I ask show of hands and people head nod it's super basic show of hands ready show of hands how many people in this room now actually get pissed off when another human being calls them raise your hand raise it high just hold it for a second people in the front row I want you to look at what I'm looking at just look at this just hold it high 75 to 80% of this room is actually now mad when another human being calls them and it's based on one thing which is when I asked this question three years ago this room would have raised her hand at a 10 to 15% clip I've watched this number explode over the last 36 months the reason that is cuz you value time so much you are so angry at your best friend or your mom for calling you because you recognize that person is hitting you up on your time that they're stealing your time that you now have technology where they should have texted you or emailed you and you'll get back to them when you've got the time it is the asset everything that will play out amongst this mobile execution app ecosystem is predicated on that everything and that is the opportunity at hand that is why this is going to work and it's the combination of our disproportionate enormous value in time and the fact that this is the place where all of our attention is 1 + 1 equals 3 there's nothing else everything else that everybody talks about is just Minor Details In the scheme of it and what you need to be reverse engineering and thinking about and strategizing in this room for whatever the [ __ ] you want to happen is predicated on those two pillars period and of story thank you yeah how much time 2 minutes five nice I'd like to do Q& A because that was really two examples of doing it right two examples of companies doing it right in time whatever or Snapchats winning

attention right let's talk about Snapchat everyone's like why did Z this is where zux is so much smarter than everybody else he always has for the last seven years run his company predicated on attention Arbitrage it's why I bought Instagram when for after 500 Days for a billion dollars I was like oo [ __ ] stole it we all know it right now right when he offered 3 billion for [ __ ] Snapchat everyone's like what the [ __ ] I was like he's going to steal this could you imagine if we were sitting in a world right this second where Facebook owned Facebook Instagram and Snapchat they would literally own the entire ecos system of attention for the next 10 years and layer Facebook data on top of that attention and literally be the entire advertising industry in 10 years like scary [ __ ] so Snapchat's winning attention for all the things they're not doing right they haven't done yet they have attention 120 million [ __ ] people every day live in that [ __ ] thing you know and so when everyone's like what's the business model what are you can figure that out eventually especially when you're raising a gillion dollars at a$6 billion valuation so I so I think Snapchat is stunningly winning the attention graph they literally are the entire they're not MTV for 13 to 22 year olds in this generation they're the entire cable industry for 13 to 22 year olds do you know what a 16-year-old girl in Kansas does she gets home at 5:00 p. m. and She lays in bed looking at her phone for seven [ __ ] hours like I don't know if I'm flabbergasted at people debating things this is so obvious this is it like and the other thing that's most interesting to me how about this question sorry Robert I'm giving you only one example because I'm curious about this question how many people in this room are willing to right now instill this device into their body I mean it who here with no [ __ ] like I get being scared of cancer and other random [ __ ] who here is truly willing to install a phone not just raising your hand for shock value who really right now if given the option would instill a phone into their forearm or some other place raise your hand just curious actually stand up do me a favor I need the visual please seriously please and I'm doing this for us as a collective like let's hold on I mean like stay for a second it's good for blood flow Robert this is interesting as [ __ ] like these are [ __ ] human beings that want to put a [ __ ] phone in her body thank you could sit and here's what's scary I think for everybody that's sitting here there is nobody that's not confused that at that percentage of this overall room that is a 100% [ __ ] it an 100% indicator that this is this is the beginning of us becoming robots this is the true extension of Our Lives shut up Siri us as human beings how many people here within every 24hour period including when they're sleeping are always arms length from their phone raise your hand thank you