#AskGaryVee Episode 45: Retail, Super Bowl Ads, & Telemarketing

should brick and mortar
stores be paying attention to over the next 12 to 18 months?” – Joe, that’s a great question. You know, for me a lot of
people have been talking about the second screen
situation with television. People watching TV with their phone. And the funny part is they refer to this as the second screen. I think we’re about,
probably about there now, but this is very much the first screen and that’s the second screen. And we’ll get into that
on a different show. That was kind of a little gateway drug for somebody if they
want to get on the show. That would be a good question to ask. The trend in retail for me is kind of now the second
screen shopping opportunity. What I mean by that is, this, your eyes, are the first screen, what you’re actually looking at. But think about this. One of things that caught
my mind a few months ago was I was in a supermarket
and I watched somebody go from one aisle to the other, and the whole time, she was. Sorry, DRock. She was shopping and she was doing this and she went around the, sorry, India, and she went around the end cap. Now, look, brands pay a crap-load of money to get those end caps, or to have to have the hottest
product in the world going. But usually at big
stores, big supermarkets, big-box stores, they’re
paying for that positioning ’cause it’s the best position
in the store, those end caps. And so the second screen
shopping opportunity is really, really fascinating to me. Geolocated. Beacons in the store. You’re in the store,
you’re shopping about. You’re getting messaging. I mean, there’s a lot of people who don’t want to be
annoyed on their phone, but I’m sure plenty of people, when they’re in Best
Buy or Target or Costco or Albertsons or Wal-Mart, wouldn’t mind getting a quick
little text or notification, or, if they’re in their Twitter stream, they’re using that
geolocated data to understand to push a tweet. You’re in Wal-Mart; you
get a tweet from Wal-Mart that’s telling you there’s this deal and if you click this
button, scan it, Apple Pay. Second screen shopping opportunities. One of the big things I’m
thinking about for Wine Library is I’m kind of getting a little
flirty with the wine world. more and more. I’m kind of inching back in slow. Steve loves it. Show Steve’s happiness of a face. As I’m inching and
thinking more about wine, I’m starting to rethink about the store and the thought of walking
in and getting content and paying for wines across
the board at the store at a lower price if you
have the app at register. Just, second screen
shopping is a very big deal.

“Gary, awesome segment with Seth Meyers.” Lisa asks, “With all this
talk about Snapcash, what is the one thing you’ll
teach your kids about money?” – Thanks for the love, Lisa. That’s an interesting question. You know, my parents taught, my mom, actually, really
taught me to respect money. You know, my dad, for an immigrant, was a big thinker with
money in the business. He really let me splurge and take chances. I give him a lot of credit for that. You know, it’s funny. I have a
weird relationship with money. I want it. I’m aware of its benefits. But I’m much more into the PR legacy. You know, where’s my place in history. Much more so about the dollars. I think if you try to
put yourself in history, the money finds you very quickly. You know, I don’t know. My biggest fear is my
kids are going to be rich versus what I grew up with and so I’m trying to figure out some level of creating respect around it. I guess the only thing that’s
defaulting into my mind is I’m going to make those two work. They’re going to work so they earn their own cash and then they can figure out
what their relationship is with their cash. – Hey GV, it’s TF.

– Hey GV, it’s TF. Got a question for you for all my friends in the real estate space around the world. And the question is, how much of my advertising / marketing dollars should I be spending on
salespeople, telemarketing efforts, versus direct mail, print, traditional, versus online. You know me, buddy. I’m a no-wrong-way-to-generate-leads
kind of guy. What’s your take on it? (person claps)
(people chat) – Hey, you know, TF, I
gotta tell you, I agree. I mean, obviously I push
new forward ways of thinking about selling stuff, whether
it was ecommerce back in ’96, email marketing in ’97,
Google AdWords in 2000, banners, then content marketing in 2006. I mean, people are talking
about content marketing now. I started Wine Library TV
on February 21st, 2006, to do content marketing, so
obviously all the social stuff. I’ve got peeps in the background, too. You know, I get it. Yeah, I think that if you’ve got a way. I know we’ve talked in
the past that direct mail really works for you as a channel. Agreed. Do it, if that’s working for you. I even did direct mail for Wine Library seventeen months ago, just to make sure it didn’t bring any ROI,
and it was a disaster. It was scary to me. We used to be direct mail juggernauts in ’98, ’99, 2000, where we’d get three, four, five, six,
seven percent redemption of how many fliers we’d sent out. People coming to the store. We had six people bring
the coupon to the store and we had a big value prop in it. So direct mail clearly died for us and then other places that have grown. And, SEM works, and Facebook
dark posts are working, and content clearly has worked. So, I’m a no-romance-over-the-lead
kind of guy, as well. I mean, here’s my thing, though. People fall in love with the way they’ve made their money, right, because it’s working right now. I’m thrilled when I think that Instagram and Facebook dark posts and Twitter suck. Can’t wait for that. Can’t wait for 2024, you know,
when I’m dissing on that. I’m like, it’s all about
this, the virtual reality. Great. Can’t wait, in the words of Bart Scott. And so, I think the biggest thing that I get scared about is that people get romantic
and don’t try new things. Every person watching here
should always be spending between five to twenty
percent of their money, if that’s what you’ve got, or your time, if that’s what you’ve got,
on new and innovative things, because they need to be prepping for 2016, 2018, 2022. And here’s the biggest key, TF. No matter what you tell me, your direct mail response
and telemarketing response is not as good as that
same action 10 years ago. If you were doing that same
calling in the background and that same direct
marketing 10 years ago, it would have had a bigger ROI because more people were paying
attention to those channels, their actual home phone and their mailbox, then they are now in
a world of this, this, and everything pulling away. Not to mention, the costs
are higher in direct mail because, you know, the
post office is subsidizing that loss of money. So, these are the things
that I think about it. It’s the arbitrage of
the value of the ROI, not necessarily the action itself. – [Voiceover] Damian asks,

– [Voiceover] Damian asks, “Gary, do you script answers or improvise? How much time do you invest in
prep and production per show?” – Damian, you know,
here’s how it goes down. Steve, you know, or India in the future might, you know, just run through the questions. I do want to have once, you know, it’s funny, I just did the Rapid Fire on Bloomberg. As a matter of fact, it’s
weird that we actually even read the questions because I actually
prefer them coming cold. We may even go to that. I’m not sure why I do that. But that’s it. Here come the questions. Cool. Maybe gives me a minute or two while I’m answering this question to think about the next one, ’cause I want to give the
best answers I possibly can, but I’m very comfortable in improv. I prefer it. I feel like they’re fresh. I think one of the main reasons
you guys watch this show is because I bring it fresh and real, and I think that matters, and that’s pretty much where
I’m at with the prep time. And the production,
that’s DRock, Staphon,

– [Voiceover] Marius asks, “Hey Gary, can you explain in more
detail your statement from Market Makers that Super
Bowl ads are underpriced?” – I sure can, Marius. I appreciate the question just moments after I got off the set. (Gary laughs)
(people laugh) You know, I care about attention, just like the questions we just answered, and so I think, almost
everybody in America, when the Super Bowl,
at a Super Bowl party, they’re watching it, and then
when the commercials comes on you hear at parties, (hushes). The event is to consume the
commercial at the highest scale. Couple of years ago, so I did not watch both
Super Bowls that included, or no, that’s not true. The last Super Bowl that the
Patriots and Giants played in, I didn’t watch it. I just laid in my bed, silently. And it was surreal, because I knew that all of
America was doing one thing, and me and AJ were doing another thing, which was sitting in silence. And so, I remember that really
drills home the fact for me, that all of America watches this game and then watches those commercials, and the attention put on those commercials is overwhelming, and
just the bottom line is, in that arbitrage of the ROI, I truly think that when you
compare a Super Bowl ad, four or five million,
compared to other ads, hundreds of thousands, that
this return is so much greater than hundreds of thousands of
dollars, millions of dollars, that people spend on television
during the regular year when everybody’s DVRing. When a commercial comes
on, everybody’s in here. And so I think it’s
underpriced by today’s market. I just really do. I think a Super Bowl ad, if
it’s four or five million, or what they’re charging these days, I think it’s worth 10 to 20. I really do. Just the way it is. Question of the day for
#AskGaryVee four five.