How TikTok Killed Marketing - Company Forensics

[Music] foreign marketing is probably one of the fastest changing disciplines in the world over the last 10 years something vastly different and much more transformative has happened please and I shared our Jolly Ranchers a true shift in a thousand-year-old industry has happened right under our noses right under our watch in the last 10 years newspapers died all print media is dying television as we grew up is dying too and for a while this shift into digital marketing was a dream for advertisers more data to collect from users more ways to Target them to guess what they want and to push it to them but privacy is more and more crucial to customers using digital devices these days we're blocking those tracking pixels the ads on those media pages are noise that we're evolving to ignore or that we just can't pay to get rid of ads have become attacks for the poor or for The non-tech Savvy and so Brad fans are left with fewer and fewer places to get in front of people and that's great for people but it's bad for Brands and it's made a very specific group especially powerful which ultimately brings us all to this blue Jolly Rancher are superior don't even at me I told her we will make baby number two so this is how Tick Tock is killing marketing [Music] Tick Tock is the result of a perfect storm a storm that has flipped marketing as we know it on its head estimates say that today the average human will see four thousand to ten thousand ads in a single day and if that number is hard to believe it's because we've evolved to ignore most of them most studies agree we only really notice about 10 of them but many still get stuck in our subconscious so here's what I'm gonna do for this video I'm gonna count every single brand impression that you will see in this video This is how many you've seen so far and we're not going to intentionally cram more Brands up that are needed we're just going to use the ones that we need for the context of the story except for one which is our sponsor for today Maple when we started sleeping I was the one tasked with the job of getting users and customers selling or marketing and I've gotten lucky with a couple of ideas and haven't been able to keep my job but finding a marketing lead isn't easy and today's sponsor helps solve precisely that they've shortlisted about 600 marketing experts across a bunch of different disciplines and they are real peer-reviewed experts that you can hire to lead or assist in your company's marketing and the cool thing is they operate in this Middle Ground where they're not an in-house team and hiring one would be too risky or too expensive for a company but then a marketing agency would probably be too far and too disconnected from The Core Business metrics so they have experts around SEO or social media or paid and email marketing and of course influencer marketing which actually makes it kind of cool that they chose to hire us for this deal they've published over 3 000 case studies on their website these are real company stories that you can read real companies that you can check and see how they helped grow and once again their biggest Advantage is this thorough vetting process which ensures that the marketer that you're matched with actually knows what they're doing they operate on packages so you can pick and choose what you're signing up for based on your budget and your company needs you just need to head out to maple.com to learn more okay that's that's enough of me being an influencer let's get back to our story okay so as I was saying Tick Tock is this mashup of five different storms five major shifts in the way advertising Works which have transport marketing from this to teach the world [Music] [Applause] into this so this was a huge mistake I do not speak Chinese but I put the cups together and then test it out to see if the sex will work let's go back in time for a second you know we'd like to go back in time this time it's real we need to show you how we came from this to this when we started slight being my job was pretty simple get customers to our presentation Builder I would go on Google I try a bunch of keywords I'd see which one drove conversions for the right price and then just double down on that same keyword just spend more money and and the fuel that made Google or alphabet the giant company that it is today is precisely that kind of AD it's called direct response if someone searches Google for a rode microphone like the one we use here they're very likely ready to buy one and that is called moment of intent so Amazon or Best Buy or B H they all know that you want this microphone the choice now is where are you gonna buy since the moment of intent was high they were willing to bid a lot of money for that click and that equals profits for Google a lot of profits even better if you visit that website we marketers can now Target you across a bunch of other websites with this amazing thing called retargeting so now you can remind people who visited your website about that product they saw and that tracking got really really good with time more importantly platforms like Facebook started collecting a lot of information from us information that we gave them willingly and so now they could figure out what we might want and allow advertisers to Target US based on those assumptions all through the 2010s brands got really really good at this targeting until it went one step too far the justice department and the FBI are investigating the now defunct political data firm Cambridge analytics quietly crunching away 5 000 pieces of data about every American adult so what we did is we then took that data to look at relationships between how you answer on a psychological survey and what your Facebook profile says we don't work with Facebook data we don't have Facebook data was your data included in the data sold to the malicious third parties your personal data now Cambridge analyticus is one of many scandals that brought a lot of awareness to how much these digital companies know about us when the data a single company owns can flip elections around the world maybe maybe there's a problem people started paying attention people lost trust in companies like Facebook Browser developers and device manufacturers starting to allow you to control what data you share with the products that you use or to block Those ads altogether at the same time people learned to pay less attention ads are noise and we got better at just ignoring them from the websites that we navigate every day highly targeted ads aren't gone but they're much harder to do nowadays and for us advertisers things inevitably got harder I mean probably the reason why this YouTube channel even started is connected to this because the backbone of our growth the marketing channel the direct response that got us our first 10 000 users just stopped being effective we have to find other places to get in front of potential customers and here we are but I'll come back to this in a sec the death of TV the reason why this digital ad era was so relevant was so important for us advertisers was that before that ads were pretty much untraceable marketing has existed for centuries from sales promotions to packaging design to town criers used truly thousands of years ago by the Greek or the Egyptian Merchants marketing started to become much more sophisticated or at least closer to what we know today with the Industrial Revolution print media started becoming popular around the 1600s but these newspapers these magazines this medium wouldn't have gotten very far if it wasn't foreign advertisers TV and radio came next moving into the mid 20th century but all of these marketing channels shared this common trait you're consuming a piece of content that's useful or important to you the news the sports game the soap opera and then these ads are interrupting that experience to sell you something and that sucks of course but it's the price that you have to pay for either the free or the discounted content TV series at this time even had slots built in the script good luck Angels keep in touch look what happens when you buy three boxes of Purina catch out you get one box free and then when all these ads were trying to do was generally brand awareness there wasn't a lot of action to take from just listening to an ad on the radio or watching an ad on TV so making you aware that this product existed or slowly convincing you that you needed it that's what the ad was for this wasn't an easy feat it was this mix of of creativity of art Innovation and it paid very well if there was ever a golden era of TV advertising it was the 60s and it's not a coincidence that this is the period selected and romanticized on series like Mad Men but everybody else's tobacco was toast no everybody else's tobacco is poisonous Lucky Strikes is toasted for decades marketing focused precisely on that the message the perfect tagline the perfect brand identity but TV advertising is dying today that's fantastic or was I just acting no es bueno okay for a local or for a regional TV channel most of the revenue is from marketing from Brand deals on an average cable channel even the subscription doesn't pay for that show that you like it's common that 30 to 50 of their revenue even on a cable channel comes from advertising except of course HBO which is awesome and has some of my absolute favorite shows of all time but anyway cable is dead in the developed world people still have cable either because it's bundled on their internet connection or because there's something that they watch maybe sports that still hasn't moved to a Digital streaming platform but it will soon enough we've adopted Netflix and Disney and HBO and Amazon all of which run without a single ad at this point this has become more expensive than cable itself but that's a topic for another the day which we're actually doing a video on why everything today is a subscription for platforms like Hulu which still have an ad supported version ads are once again tax for the poor because now we want to binge watch on the opportunities for ad placements are fewer you start seeing these Desperate Measures like putting ads on existing shows as in literally editing the original Source material to place an ad radio obviously suffered the same fate thanks to iTunes and then Spotify and I'm not even going to stop in that story now some consumer decisions are much harder TV or radio aren't enough to convince someone some product decisions aren't made based on features or or who has the best ad some consumer decisions have a much deeper thought process and that's something that TV and radio were able to influence in the past but not completely defined for example one of the most powerful and valuable brands in the world today objectively is Apple you buy an Apple computer for a lot of reasons you buy it for performance or for utility but also because it says a little bit about you because you see other people use it maybe people you look up to subconsciously you maybe want to be a little bit like those guys in the ad right like the creative kind hello I'm a Mac and I'm a PC I've been doing fun stuff like movies music podcasts stuff like that I also do fun stuff like timesheets and spreadsheets and pie charts on the other hand you might intentionally not buy Apple devices because you don't want to be associated with that customer Persona which brings me to a fun social experiment which is asking you what phone do you think I own anyway Brands can achieve that with a good ad or through years and years of strengthening that brand presence but one incredibly effective way to do it is through other people we trust others especially people that look like us the first real influencer in the world in history might have been the English crown in the 1700s this English tea brand Wedgewood created a tea set for King George III and they were able to advertise that their brand was royally approved that of course worked moving a few hundred years forward Mark Twain became an endorser of cigars and whiskey and Pence and in the early 1900s Coca-Cola was one of the first brands in the world to leverage characters for their advertising Babe Ruth was the first celebrity athlete endorsed by a brand this back in 1930 Red Rock cola this trend accelerated in the 1940s with the Hollywood star system and it finally exploded in 1965 with TV in the 80s Nike decided to reach out to this popular basketball player to collaborate on a pair of sneakers this was reportedly a sponsorship worth 250 thousand dollars to Nike which seemed like crazy money at the time and they expected to sell somewhere around 3 million dollars worth of Air Jordans and in year one they sold 126 million dollars [Music] on September 15th Nike created a revolutionary new basketball shoe on October 18th the NBA threw them out of the game fortunately the NBA can't stop you from wearing them by the end of the 80s 75 of all sports related products were being endorsed by athletes people think I catch the ball with my hand foreign [Music] but again this was reserved for celebrities athletes TV film personalities but something incredible happened in the early 2000s it's not the internet itself it's web 2. an internet where content is generated by the users not by the brands not by the site owners The Innovation that for good or Worse gave us social media when YouTube was released in 2005 it opened the doors for more people regular people to influence others for the first four years of YouTube there was no way to make money with it I feel funny it was just this community of creators having fun and then you would watch them because you liked them or because they were funny and you were inevitably exposed and influenced by their interests it felt and it probably was a very genuine thing but even YouTube had a gate you didn't have to be a celebrity to become a YouTuber back then but you needed some things you needed a camera you needed a decent computer to edit the videos and you needed to be good on camera and those things that weren't easy to come by in 2005. all right so here we are one of the elephants all right welcome to my first video how's it going everyone goodbye here what's up guys it's currently October 4th 2015. I'm probably like a freaking grown man when you see this plus you have to respect the format the standard There are rules that you need to follow so that a video gets caught by the YouTube algorithm in our case we actually created a whole manual that we follow for every video that we write even the video that we wrote about the manual itself but YouTube was just one of many social media platforms released in the 2000s and some didn't have the barriers that YouTube has content creation for everyone began growing with the introduction of fan pages in Facebook in 2007 and it truly opened the floodgates with the release of Instagram in 2010. so here's an instagramed year-end Roundup for you the most a company with only 13 employees bought today by Facebook for one billion dollars Instagram was truly for everyone post a photo add a filter you just made something blah beautiful and likable online it's not only the user experience Instagram came along when smartphones were getting better and cameras were evolving so this ability to publish was really in the palm of everyone's hands suddenly if your food photos were good you'd have a growing follower base your dog could have a profile of its own Instagram gave a lot of people the tools to reach a lot more people it gave them a platform to share their talents artists and photographers and Brands by now already knew how profitable influencer marketing could be so they started jumping into this too sending freebies to relevant people who had an audience and this quickly spiraled out of control the problem is not all influencers were constructed on Talent OR expertise many just saw the opportunity to jump in and get rich because there were no barriers so it matters little if you have a talent or not it's about your followers and your reach and whether they're driven by Envy whereby lust people flocked to this new generation of influencers and Brands followed from 2019 to 2022 the money Brands spent on influencer marketing almost tripled and this is a mix of all of these factors that we've been talking about influencer marketing works it's effective brands are running out of options on where to target people and you've probably figured out what the last piece of the puzzle was guess what being stuck at home changed all of our behaviors no more Billboards no more sports venues just us stuck in our houses looking at our phones finding ways to connect with other humans at least remotely but Instagram had to stop providing those human connections for the past few years Instagram has been less and less about our friends and more and more about these influencers selling pushing Brands and products but more importantly being fake the influencer boom of the 2010s had to stop I want to believe that it's dying because again we want to see real people and nothing on Instagram is real be real by the way it's a funny alternative to this let me open my phone to you I'm really on Instagram these days made out or Facebook obviously know that so they figured that the best content that they can show me is cleavage and some tennis check out the search bar this is what I get tennis and semi-naked people I'm a straight guy so Instagram obviously knows this and they also apparently believe that I'm into blondes yes some of my behavior has probably triggered this but I don't intentionally go looking for that I don't even use Instagram anymore this has become a platform where I don't want to hang out I was originally here to share some of my photos my little hobby but photos are no longer pushed on timelines I was here to gossip when one of my friends were doing but I have to go through an ad every five seconds to do that I don't want to be here anymore it's fake it's a copycat and millions of people seem to agree [Music] and so here we are we're somewhere around 2020 and let's recap we got rid of cable in favor of the streaming services we got rid of radio in favor of Spotify these are billions of people who Brands can no longer reach with these ads that they had been perfecting over decades we are sick of Facebook and Instagram influencers who are just influencers plagued the platform and we get ads every three posts or stories plus the platform is not the photo sharing app that we signed up for originally it's kind of like Snapchat now or reels but on the web front 40 of Americans use ad blocking software plus our phones our browsers now block tracking so advertisers can't retarget you across websites like they used to and then the pandemic comes so we are not leaving our homes we're not seeing Billboards or other people we're spending more and more time on our phones than any other time in history and lo and behold this new platform comes along a platform where the format doesn't matter where the followers don't matter where video length doesn't matter where the algorithm is Almighty and much powerful than ever it's a platform where anyone truly anyone can reach thousands millions of people sometimes out of insane Talent sometimes out of luck sometimes out of Randomness but definitely tailored to who's watching because you just realize how much I want your Tick Tock feet says about you the first 10 Tic Tacs that you see like would you would you be proud of what you get like would you show other people what you get when you just open Tick Tock I'm not proud of what I get on Instagram let's do the let's play this game [Music] wow okay better mascara was uh Victor number one we're gonna guarantee eight minute delivery or um he does like these really good like business case experiments good stuff it knows not what it says Professor Casey expresses a view that's actually quite common among AI researchers [Music] I don't think this is a great Tick Tock but if it becomes it becomes famous because of our video then I guess it was worth it I normally would skip a tick tock if it has like too few likes I know it's not it's not been embedded any tough year sales rush you in here movie trailer oh my gosh what Will Smith just slapped Chris Rock Live this is a great point for the video okay okay so true foreign [Music] for me it's usually comedy or science or astronomy film pop culture the stuff that I actually really like great so how the hell does an Advertiser get into this thread I don't know as a Creator as an Advertiser we just haven't figured out short form content yet we're trying but we're just not good yet I don't have the answer to that but some brands are moving ahead morning Brew created this character that turns The Daily News into Fun comedy skits I love it Duolingo is cleverly capitalizing on everyone's crush with Dua Lipa I've seen solid ad Integrations on call me Chris's and Sac King's content feeds where the Creator still has this solid creative control over how the integration looks not to mention these are really talented creators that built their solid user bases on their talent what is more memorable a six million dollar Super Bowl ad or Mr B's planning your flag on a mountain in Antarctica the recipe for these influencer endorsements is not new it's not new at all the difference is that it's no longer reserved for celebrities with platforms like Tick Tock everyone can suddenly be a celebrity even Tick Tock ads seem to try and respect and adapt to the format brands have been forced to reinvent themselves for this content era and that is kind of a good thing now a mandatory break with some caution Tick Tock is not without its dangers it's banned in India and in many other countries and for good reason there's a real chance that other countries will do the same in the coming months Tick Tock is too tied to China and everybody is naturally worried the CEO has been called to testify before Congress in a couple of weeks and one of the biggest fears is how much of a silo Tick Tock is it's hard to know what everyone is watching the algorithm is kind of spookily good in the same way that Facebook and Twitter became these Echo Chambers for for the far right or for the far left not just in the US Tick Tock could do much worse if China is somehow in control of the content that we're consuming we have already seen some proof of tiktok's algorithm excluding content that criticizes their government for example and they could do the same in other countries and there's probably enough content for an entire video on that analysis but the point here is that marketing as we've known it our whole lives is about to disappear as an Advertiser this is exciting but also extremely dangerous we are already very late to this short form content game as creators which is another name for influencers this is really an opportunity this is a job that didn't exist when I grew up half of my daughter's friends want to be YouTubers or tick talkers when they grow up and I'm pretty sure that they're not watching our business analytic videos but who am I to tell her that this isn't a real career path it's about the type of content that you choose to consume as much as we like to hate on these influencers who don't add value who don't seem to have any real talent well people still watch them we are giving them that power platforms like Tick Tock even more than Instagram end up becoming a mirror of who we are and if we don't like what we see well maybe it isn't the social media that needs to change foreign

Channel: Slidebean

Views: 107,290

Keywords: slidebean, caya slidebean, company forensics, caya, startups, startups 101, history of tiktok, influencer marketing, influencer marketing bubble, influencer marketing instagram, influencer marketing vs digital marketing, instagram vs tiktok

Id: 8d5FGhEDj60

Length: 24min 15sec (1455 seconds)

Published: Wed Mar 08 2023