– 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,

– [Mayanmurfee] Ben asks, “What do you think about
recent Omnicom advice to move 25 percent of ad
budgets to online video?” – So for the small businesses
or the entrepreneurs, Omnicom is a big kind
of conglomerate agency in my VaynerMedia world these days and they do a lot of what’s
called working media, the dollars you spend for distribution. Not to create content. Something we do a lot in social channels but not on TV, print, radio,
all that kind of stuff so I just want want to set the
stage for that question. The thing that scares me with that general kind of statement is that when people think of online video, they think about spending five, 10 percent of the overall budget, let’s call it 100 thousand dollars, on the video production, the quality, the stuff and 95 on the distribution and then what they spend on, and maybe up to 80. Maybe 80 to 90. Let’s say 80. I want to be polite here
today in San Francisco because it’s got a little
bit more of a polite vibe than New York. Of that 80 percent, they pounded in right hook form. What does online video
mean to most people? Let me just explain what it means. It’s pre-rolls on YouTube where people tab out and don’t actually consume it. You go to espn.com and a video pops up and takes over 30 seconds of my time which pisses me off. And so what I’m most worried about when I hear people allocating and it’s part of the bigger story which is that people talk about moving TV budgets into other places. My problem is I actually like
live television commercials more than I like banner ads on websites and pre-roll video that’s blocking the user from doing what they want. So this isn’t about
traditional or digital. This is are you bringing value and when I hear move from television and put it into online video, what I know is going on in
actual practitioner world is people are spending
that money on online video that is annoying customers and putting it in places
where they don’t want it versus putting more
percentage of the money on actually creating great video and then figuring out a more native way to distribute it. That being said, Facebook dark post video native to me is a very attractive option, especially if you’ve been seeing it, the audio doesn’t play but if you’re into it, you click it. And so that’s my overall thought, which is that in theory it’s great that we’re moving traditional dollars here but I see a lot of people
misplaying digital. – [mayanmurfee] Laura asks,