Podcast Summary
Shifting focus from traditional marketing to influencer marketing on social media: Brands need to adapt to the changing media landscape and invest in influencer marketing on social media for more authentic and engaging consumer connections
The future of marketing involves a shift away from traditional methods like television and towards influencer marketing on social media platforms. According to Gary Vaynerchuk, this trend is driven by the fact that consumers no longer pay attention to traditional advertising, whether it's on television or digital banners. He believes that common sense is often overlooked in corporate America, leading brands to blame marketing for their poor results instead of addressing the underlying issues with their products. As a result, brands that are struggling are starting to shift their advertising dollars back to television. However, Gary argues that this is not a sustainable solution, as consumers' attention spans are constantly being pulled in different directions. Instead, he recommends that brands invest in influencer marketing on social media platforms like Facebook, as this is where consumers are spending their time and paying the most attention. He believes that this approach is more effective because it allows brands to reach their audience in a more authentic and engaging way. Ultimately, the key takeaway is that brands need to adapt to the changing media landscape and find new ways to connect with consumers in a meaningful way.
Exploring Alternative Advertising Channels: Native Advertising and Influencer Marketing: Consider native advertising on radio for authentic engagement and influencer marketing for cost savings. Don't overlook alternative ad channels, and evaluate potential partnerships for business development opportunities.
While Facebook and Google dominate the digital ad market, there are other effective advertising channels that should not be overlooked. Gary Vaynerchuk emphasized the potential of native advertising in radio, specifically live reads by morning DJs, which can provide a more authentic and engaging experience for consumers. He also shared his success story with influencer marketing, which he predicted five years ago and is now backed by data showing significant cost savings compared to traditional advertising methods. However, he also cautioned that sponsorship deals may not always be worth the investment based on the perceived value of the reach, but rather the business development opportunities that come with the partnership. Overall, Vaynerchuk encourages marketers to think beyond the obvious and consider a mix of advertising strategies to effectively reach and engage consumers.
Traditional media disrupted by digital platforms: Traditional media faces disruption from digital platforms, but companies can adapt and individuals can seize opportunities.
The traditional media industry is facing significant disruption and those who rely heavily on interruptive advertising, such as television, are in danger of being left behind within the next 5 to 10 years. The market is evolving, with more people consuming content online and new players like YouTube, Google, Facebook, and OTT platforms from major networks gaining ground. The economics of these new platforms favor innovation and disruption, while traditional media companies may become slow and resistant to change. However, this doesn't mean the end for traditional media. Companies like NBC are investing in digital media and adapting to the changing landscape. For individuals in the industry, layoffs and downsizing may be inevitable, but they also present opportunities to either join the new wave of media or strike out on their own as entrepreneurs. Ultimately, the key to success lies in embracing change and staying agile in the face of disruption.
The role of curators in a shifting media landscape: Media companies must adapt to new platforms and understand their unique value propositions to remain relevant.
The media landscape is constantly evolving, and traditional content providers are facing disruption as new platforms emerge. This is not a new phenomenon - we've seen it before with the transition from radio to television. The future of content consumption is morphing, and traditional media companies are essentially "renting" their place in the market. Content itself remains pure, but the role of curators will continue to change. Some may become the next Arianna Huffington or Jonah Peretti, while others may struggle to adapt. Twitter, for example, functions as a water cooler of our society, facilitating conversation and connection but generating less revenue than more ad-focused platforms. The key is to understand the unique value proposition of each platform and adapt accordingly.
Changes for Twitter and the Importance of Digital Platforms: Twitter faces challenges but will continue to exist, Facebook is a significant investment due to control and trend-setting abilities, and digital ad spending is on the rise, impacting traditional media companies
Twitter's current model and lack of innovation over the past few years have led to validating but necessary changes. The speaker believes that Twitter, despite its challenges, will continue to exist in some form, possibly under new ownership. He strongly believes in investing in Facebook, which he considers the most important company in the world, due to its control and trend-setting abilities. The speaker also mentioned that Telefonica, a major company, has recently shifted its ad spend to digital, highlighting the ongoing trend towards digital advertising. This shift in spending could have significant implications for traditional media companies and further solidifies the importance of digital platforms like Twitter and Facebook.
Media companies rely on traditional TV and programmatic banner ads for revenue: While programmatic banner ads can be effective, investing in Super Bowl commercials and a mix of traditional and digital ads may yield better engagement and impact.
Media companies like Havas make the majority of their revenue from traditional television and programmatic banner ad buying on the exchange. Programmatic banner buying refers to the automated purchasing of ad inventory in real-time through an exchange, which results in banners appearing on various websites. The key performance indicator (KPI) for this type of advertising is cost per thousand impressions (CPM). While television and programmatic banner buying are lucrative, the speaker expresses a preference for investing in a Super Bowl commercial over programmatic banner ads. The reason being that attention is a valuable commodity, regardless of whether it's for digital or traditional advertising. However, the speaker expresses concern when they hear that media companies are transitioning entirely to digital, fearing that they may allocate their budgets towards buying banner ads rather than investing in influencers or social media platforms like Facebook. It's important to note that while programmatic banner ads can be effective, they may not yield the same level of engagement and impact as other forms of advertising. Therefore, a well-rounded marketing strategy that includes a mix of traditional and digital advertising methods may be more beneficial. Additionally, leaving a rating for the podcast is encouraged as it helps spread the word and supports the content creators.
