you can break them that’s a really good
question do I think I think the answer is no but I think you to pick up the
rules as you go in the beginning to then break them I think it’s ok to break the
rules with naivete and I think about being a media I don’t know anything
about the rules of agency world and I was breaking them without knowing that I
was breaking them and then as I pick them up the last four years I continue
to bring the ones that I wanted to break and I also learned quite a bit from the
first eighteen months when I didn’t know if I knew the walls when I first started
the intermedia I don’t think we would have innovated just as much as we
actually did so in a weird way I would actually say knowing the rules up front business and dot com I’m actually gonna
go with the different way often talk about naive eyes not knowing anything I
think the really great pattern is not knowing but then I respect the game I
respect the advertising industry it’ll just say oh we do it better i watch I learned I pay attention and so
it’s fresh money buys I don’t know the rules break them because you don’t even
know you’re breaking them and then as you mature into your 23456 journey from picking up the rules and
they continue to bring the ones that you think are worth breaking a special
because what you learn in the first eighteen months of not knowing the rules
will allow you to make really smart decisions of which was to break over
months 19 through 72 yep just smart I every one of them and I’ll take too much
credit

“in the world we live in now,
how would you go about it?” – Well I think Maple, a
startup I invested in, Mike I’m not counting,
is doing it, which is, it’s a restaurant in New York City that doesn’t have a
place to actually go in. So it realizes that by
percentage if you play the math, especially in New York City if
I was to open it in New York, your economics are so much
better being a delivery company than actually having the
overhead of the restaurant. This is something I think
about a lot with Wine Library, which is a bricks and clicks organization. We have a lot of overhead to
run the store versus the dotcom and that’s how much energy
you wanna put against it, so I’d probably launch a restaurant that was very unique in
the way that it served patrons locally in a physical
restaurant environment, maybe open on Saturday’s only, and then the rest was delivery. Something clever, something
that gave it pizazz based on when I was open, and then, and then the delivery
would be the backbone and the infrastructure,
in a New York environment. Somewhere else, I’d probably go for, I’d find an amazing chef and go for, like, porridge, it’s what
I brought up the other day. I’d try to win on
something that other people aren’t doing a bunch of, like, obviously tacos and premium burgers, I still don’t think
there’s a hot dog winner. You know, it feels like there’s somebody that can win the
shake-shack hotdog game, so. – [Voiceover] Chris asks, “is
it more effective to market

“largely the same messaging, safety. “Is their sheer size saving
them from disruption for now?” – Yea, I’ll jump in on this
one because I’m spending a lot of time with Silicon
Valley and that’s really, what’s going on in Silicon Valley now with
start ups that are looking to attack banks, and if you look
at what’s going on in general with like Venmo and so many
other things that we’re living through, yea I mean,
I think banks have enormous infrastructure and have
a value prop, but there’s enormous amounts of destruction. I think the question alludes
to a marketing message, and I think it’s actually gonna be more of a utility message. When you start layering,
you know it’s funny, BitCoin has been not a top
of mine in the start up world recently, but block chain
mentality and just the innovation around financing
and the financial sector is going to be pretty aggressive. I actually think a lot of
bank’s messages are not necessarily just about safety. I think it’s about creating
indulgence and empowering you to do the things that you want to do. I’ve watched a lot of
the banking messaging, as we start planning on
getting into a couple of clients in that sector. I think what’s way more
important is that bank’s brands in our society are very poor,
because of what happened with the Wall Street melt down
and things of that nature, and I think a lot of banks
have been very slow to properly transition to mobile and so there’s a lot of
white space and a lot of innovation coming that, and it’s funny I can see the sharks circling around the banking sector in SF
and it’ll be interesting for the next decade. Keep it going. – [Voiceover] Alex asks, “What
do you want to be remembered

– Question. Twitter Moments. – Jesus Christ, calm down, guys. – Now that Twitter Moments
is a week since launch, exactly one week, what
are your initial thoughts, and do you think this is their attempt to take on Snapchat Live Stories? – I think it’s an absolute
Snapchat reaction, though I have a feeling they
were working on it before, which I think is the problem
in itself at Twitter. I think the last five years,
they’ve been slow to innovate. So whether it is a reaction to
what’s working for Snapchat, or it’s always been in place,
they’re both bad answers. I don’t think it’s some
great, unbelievable thing. I don’t know how much
you’ve looked at Moments. As a matter of fact while you’re all in the show.
– [Ben] They need Periscope support.
– [Gary] I don’t feel like the Moments stuff has been
that compelling of content. which I think scares me. I don’t think, if you’re
not compelled to watch it, it doesn’t matter where
it is in the UI or the UX, the content has to be right. It feels like a slapped
together, random skew of different videos and
pictures around a theme with weak editorial
curation at this point. I think if they can get that down, it’s like being a great programmer, right? NBC wins when their lineup is
the best in the 80’s and 90’s, and I think what Twitter needs
for that to be successful is somebody who really
knows how to curate content at that level. For me, it hasn’t hit the mark, and I’ve gone in there a lot already. I think the UI in the
app is very important. It’s work that’s maybe
go in there quite a bit. But I haven’t been
compelled by the content. And the thought of brands
integrating in there, in the same way that I don’t
think Snapchat’s right move is these 15 or 10 second video ads, I think that that’s gonna be
the more interesting part, which is back to the last
question that Sasha just asked. A 10 second video that’s
just like, “Eat Extra gum,” is not as interesting
as what we saw there. I think that’s gonna be their
problem because, don’t forget, they have to build a business around this. So far, I’m not super excited about it. What about you? – I think they need to
add Periscope support. I think that would make
it a lot more compelling. – Why? ‘Cause you’re gonna be
going through a Moments story, and then you’ll see something live, and that will captivate you to stay? – Yeah.
– [Gary] I think the problem with Periscope is, most people
suck a doing live video. – Yeah, but I like the
behind-the-scenes, intimate, sort of rawness of Periscope. It works out nicely that that
content lasts for 24 hours. So do the Moments, so I think
the timing works out too. – Cool, I’m sure they’re debating that. Thanks for your question.
– [Ben] Thanks, man.

“What’s the next industry
to be turned upside down “because they aren’t
adjusting business models “to fit changes in technology?” – I mean, the answer is everything. You need the breakout product. The reason the hotel industry and the limousine service
industry have been thrown upside down is because entrepreneurs came and
attacked it full-throttle. You know, the refrigerator, appliances, smart appliances are coming
so all appliances are on-call. Retail. Brands now can go direct to consumer. So, you know, I think
we’ll see that play out over the next 10 years. TV, big media conglomerate companies have to adjust to the
over-the-top networks and all the infrastructure
they have in place to be very expensive to produce
television-like products when people can just do it like this. Or over-the-top as a
new distribution game. The internet is the middle man. Period. And so anybody who was in the middle is on-call. And that’s most things. And so I think every industry
is prime for disruption. It’s why I’m so excited
about this generation. It’s why, back to the film, it’s why I do believe
a 48-year-old who has a nine-to-six job can
do something about it from seven to two in the
morning if they wanna be an entrepreneur because
there’s so much opportunity, so ripe. So many things are convoluted. The way we get wills. There’s a start-up I got
involved with that’s incredible. Abortion. Abortion is such an emotionally
tough thing to begin with. If you’re in that position oftentimes, generalizing obviously, it can
be an offensive move as well, but when you’re going
through something like that, and then you have to go through
the convoluted paperwork where an app can solve
everything in a minute. Like, literally anything that takes time. The DMV. Like, anything that takes time that is predicated on paper or legacy or keeping humans in jobs, like toll-booth collectors. Like, come on, it’s 2016. I mean, like seriously? No disrespect and you might be watching and you are or have a friend or relative that’s a toll-booth collector. Like no joke, they could make that money doing something that can
probably do them more upside than sitting on their
phone playing Angry Birds. I mean, it’s insanity. And there’s a lot of insanity out there. And I’m excited about insanity
getting punched in the mouth by innovation. Innovation, insanity.

You know, let’s do a
podcast exclusive today. – [India] You should bring that up. – Is this the guy who
ac– did I see this right? Is this the guy who, like, switched? (mumbling) Two and a half hour drive or whatever? Or is that somebody? – [India] Yeah, that was him. – Do I do a good job paying
attention to Mike, India? – Great job, excellent work. – Thank you, India. But I don’t know, the answer is, that happens with me all the time. Like, I stop and start
things all the time. I love when people are
like, oh you said you were always gonna, yeah okay, and what? Like, Jesus Christ. When you’re innovating at scale, some things hit the ground
and so it lost momentum. That’s the answer to your question. And good news, I’m gonna
do one after this episode ’cause I feel guilty, okay? Great, you feel good about yourself? Yeah, I feel guilty, we’ll
do an exclusive podcast question today. Big ups to everybody on
their treadmills and driving in their trucks.

“You don’t talk much about Tumblr. “Do you think it’s losing relevance?” – Yes. You keep asking quest– (laughs) Yes, I do think it’s losing relevance. I think Tumblr lost its moment, which is tough for me ’cause I was an early investor in Tumblr. I made a lot of money
when it sold to Yahoo! but it’s part of a bigger company that’s selling media in a traditional way even though it’s Yahoo! And I think that it lost to Instagram in the mobile translation much like many people did. It is still a very high
rated app in the app store, if you look in the top 100, it’s usually around number 90 to 110. But I do think it’s losing relevance. I think there’s a lot
of people that love it, it’s still a very big platform but I don’t say huge growth in it. I don’t see it. I think it’s a niche now, where a lot of creative
people are doing their thing, it’s a great creative outlet. A lot of people are doing
their anonymous work on it. But then Snapchat came along and kinda created a world– India, what’s going on behind me? – [India] Nothing, I was just waving to– (slaps table) – What, no, no, you were laughing before. – [India] No, I wasn’t. – Okay, I’ll have to watch
that part of the show. (laughs) I think, the show. I do think Tumblr’s lost its momentum and would need to have
some real innovation to get going again. Yes, I don’t talk about it a lot because it’s not atop of mind. And it’s a current show, right.

“How do you think people will
consume news in the future “and how can small publishers
like ourselves monetize “on our content if it is
consumed on a native platform?” – Raymond great question. You’re going to have to find
ways to integrate advertisers in a way that if you’re not
the platform where you’re monetizing the eyeballs, well then you don’t
deserve the dollars because all the advertisers want
is the awareness, right? I mean they’re not smart
enough to recognize they want the actually engagement
and the sell through. Unfortunately right now they
still want the awareness. So, if your news is
being consumed on Twitter and not on your platform, and there’s no ad opportunity
for your advertisers in that format and
that’s going to Twitter, well then you’re fu—-
and that’s exactly what you are alluding too. I think what you need to do is A, find ways to drive people to your world, which is extremely difficult. Or B, rethink the model all together. Do you actually, you know, when was it that media
and news companies decided they were in the advertising business? A long time ago. But are you maybe in the events business? Are you maybe in the consulting business? Are you maybe in the
content production and compete with VaynerMedia business? Are you in the stand up comedy business? I know that was weird, but like that’s really where I’m going. You and everybody else selling
news has defaulted into, “I sell advertising.” Why? Why are you romantic about
the way you make your money? Why are you using 80 years
of history to make your money when the world is clearly
changing at a scale that we’ve never seen? Why? Why? Because innovation and innovators are rare and far and few in between aren’t they? And so, I challenge you in this show, at this moment, and everybody else
trying to monetize news. Recognizing news is now
being consumed on Facebook. Recognizing news is now
being consumed on Twitter. You’ve lost your power of people
coming to your destination. There’s a couple of
ways to think about it. Are you thinking about
virtual reality video? Are you thinking about 3D printing? Are you thinking about
mobile only society? Are you thinking about the
next thing after mobile which might be, I can do it right here in thin air. Or, more importantly,
’cause all of that stuff is probably 10 years away. Are you thinking about
different ways to make money? Meaning, you have a news
outlet and because you’re good at producing news
and getting people to consume it on the web, maybe you help advertisers
get their content consumed on Facebook and Twitter. Rethink the game. And by the way, that was advice for everybody here. Always rethink how you make your money. Wine Library has a big
second floor right now and I’m trying to sell it out as space for events and things of that nature. I’m making money on the real estate. So rethink the way you make your money. (car engines revving)

have to do to make it rival
Facebook, Twitter, Instagram? (inaudible) – Steph? – [India] Steph. – Steph, what they’re gonna
have to do is win the 12, 13, 14, 15, 16-year-old imagination. There’s no winning after
it hits a certain point. Social networks over the next foreseeable future, in my opinion, have to win the youth, they need to make Snapchat feel like that person’s older brother’s app, and this new thing is even cooler, and that’s how you win, in my opinion. I think you have to under arbitrage, or build off of a utility, I think people don’t recognize how much of a utility Instagram was. Instagram made everybody
better photographers. Which brought a huge,
huge group of people, and then it started getting social. So my two answers are: under arbitrage the 12,
13, 14, 15, 16-year-old, or build a utility, that
starts as a utility, builds a big base, and then flip it, and create the social
network underneath it. Yea, it was a good answer.

I’m from Queens. I’m co-founder of a brand
of vodka called Pruv. – Are you a Jets fan? – I love the Jets. – Are you telling the
truth cause that felt soft? (audience laughing) – No, I absolutely love the Jets. – I need you to name
two offensive linemen. – Two offensive linemen? Could I talk about Wide
Receivers or Running Backs? – No, dick. Because “people that love a football team” know the offensive line. – Should I have meant to say like? I like, I like the Jets.
– [Gary] Respect. (audience laughing) – It’s given that you’ve
started your career with Wine Library
– [Gary] Yes. – I wanted to see where do you
see the biggest opportunity for innovation for Wine and Spirits brand in the market today? – So, look, you’re going into, first of all, I like you already because that’s ballsy to go into vodka because vodka is past it’s trend which I actually think
begins it’s next opportunity. Two, it’s crowded. Three, it’s really, really
financially intensive. You need money. Right, so I think you know, the nice thing is this falls perfectly aligned
to the world we live in. Right, like you being
part of this community, that’s your only prayer. Your only prayer is to know
what’s going on Meerkat. Your only prayer to win is
knowing what’s going on Yik Yack. Right, and all these things. So, I think place to
innovate is in story telling it’s not about huge billboards anymore. It’s not about going to wholesalers and giving them tons of
dollars for their sales people to kick in the store. It’s about creating a grounds well, but you’ve got to create content and you’ve got create
it in relevant places. You’ve got to find micro-influencers there’s a ton to be done,
but it’s a tough game, man. It’s a real tough game. – It’s tough and I guess
one of the episodes that you said kind of
clearing out the cave – Yes. – before (mumbling)
– [Gary] Yes. – That’s something that
we’re trying to do is just go where other brands are
not going to right now. – 100%, there’s a ton you
need to become the vodka of like elderly Lego builders. (audience laughs) – Like you’re gonna
have to go super niche. – We’re going more
towards like dance music so like EDM influencers,
everybody is there dick face. (audience laughs) – What are you talking about? You’re finished you’re out of business. Next. (audience laughs) – Let’s go up here. We’re going to where other people aren’t. right, like EDM. That’s it, you’re out of your Mike.