Marketing Live ’19 Day 1: From brand to demand
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good afternoon everybody good afternoon my name is John Nicoletti I help to lead our retail strategy at Google I'm excited to talk about video and how it can help deliver better results for all of you now I realize that we are in that coveted just after lunch slot and some of you may be flirting with a bit of a food coma so we're gonna try to keep this punchy and interactive and in fact let's let's just start with a show of hands how many of you have watched at least 30 minutes of video this week an hour two hours three hours five hours 10 hours nice it is Tuesday sir for those of you that how many have used at least one of these services to watch two three anybody use all nine maybe someone in the back no all in the back so it's clear we love us some video and that is nothing new but the way with which we have consumed video has fundamentally changed in the last 10 years it's changed in the living room with the use of voice and the access that we have and it's changed obviously with mobile well we have the world's best DVR right here in our pocket to get whatever we want whenever we want it and it's a heart of that change as YouTube YouTube has continued to disrupt and improve the way that we enjoy video and that's why YouTube is where the world comes to watch video so just think about the things that you love your hobbies your passions could be vintage cars could be cooking could be working out you can find virtually anything that you love on YouTube that's because YouTube is making primetime personal for all of us now for me I love music I come to YouTube to watch a lot of music and not just to watch it I actually play music I play the drums specifically in a cover band and we come to YouTube if you don't believe me there I am and we come to YouTube to figure out what songs are trending and get help for the songs that we want to play and not just what they are but how to you know to tribute to Freddie Mercury and all of those sorts of mannerisms because it's not just about passion YouTube is also where we come for help I come for help in doing that and you and your customers come for help in a bunch of different reasons but there's a new trend that we're seeing on YouTube over the last couple of years and that's that we're also coming to shop in fact 40% of people will purchase something that they discovered on YouTube for the very first time now that creates a massive opportunity for performance marketers you think about the scale of YouTube with over 2 billion people coming every month and there's a real opportunity to lean in but I acknowledge that not everyone in this room maybe has leaned in to video and I understand that if we were here talking about video a few years ago we probably used this video sat at the top of the funnel we were talking about brand you were leaning into a media agency or Madison Avenue you'd look to your creative agency and the conversion event there was probably more about the number of can Lions that you could win versus sales that you could drive and if we're talking about performance video it probably looked a little bit more like this we're talking about the ShamWow we're talking about the Flowbee so everyone remember the flow be right put a lot of time into your cuz we got a thumbs up in the back a lot of a lot of time and you're creative you put a phone number and you hope that that thing works and we hear it it's expensive it's hard to measure it's not easy to optimize but why we're so excited is that in this room we have the best performance marketers in the entire world get excited for yourselves right come on you have mastered the ingredients around search and display and how to drive better results and we were excited to see you at a YouTube as a simple addition and to that recipe and to drive results and what you heard about earlier today from Prabhakar and what you'll hear about in just a couple minutes is exactly how that works that YouTube can help you from inspiration to building connections and consideration all the way to your path to purchase or frankly whatever that conversion event may be it could be sales could be visits could be in store traffic and in just a minute you're gonna hear from one of our partners on how they're doing it but before we go there I want to give a couple examples of other brands right here in this room let's start with Marley spoon Marley spoon is Martha Stewart's answer to the meal space they saw an opportunity they realized that the space was exploding but also that the space was crowded so they took a video first approach knowing that they had to build a brand and they had to drive subscriptions they used TrueView for action in building 6 and 15 second videos like you see here some of those were simply educational others maybe had a family and some humor sitting around the dinner table but the results were clear in launching a video first campaign on YouTube they saw a 25% increase in brand awareness a 49% increase in ad recall and more than a 50% increase in subscriptions that's a great example of the type of customer that is using performance with YouTube however we're seeing others go a step beyond this YouTube and video first is one great example but those that are putting YouTube and search together are really taking it to the next level and they're building what we call the flywheel the understanding that you can reach drive engagement and capture intent better when you put search and YouTube together and as that flywheel goes you're getting more customers better growth and you're doing it more efficiently in fact when you look at all advertisers that use YouTube and Google search together they're seeing an 8 percent increase in conversion volume on search 3 percent increase in conversion rate on search and they're doing it at a more efficient CPA and that makes sense because that's how we act as consumers right over the course of our day we are toggling back and forth between watching videos and searching as we're deciding the things that we want to purchase and so building an assistive marketing plan that uses this fly will allow you to do the same now United Airlines is another example of a great brand right here in this room that understood the opportunity to build a flywheel together with both YouTube and search they also understand that on average in the u.s.
We're only getting 10 days off a year so when we're going on vacation we want to make that count we're doing a lot of research and so for United instead of casting a broad strategy they were far more targeted they looked only at potential customers that were actively doing research on where they wanted to go either on sites or on Google and then saying let's find a way using some great 15-second creative to inspire those potential customers on making that step and taking that purchase so let's have a look at what they did [Applause] simple fun I want to go there you probably do too and in fact 17,000 potential customers became customers after searching then watching those videos and booking a flight and now that flywheel that I talked about is core to the way that they are going to market in thinking about search and video together now we've heard from you a lot of questions on how do I get started can you make this simple and easy for me you heard from both Nikki and Prabhakar earlier about discovery ads it has literally never been easy to get started in fact it is so easy you don't even need video all you need is your images maybe from your favorite social campaign you upload those into a feed and we will put them seamlessly across YouTube and Gmail and the discovery feed to help you connect with more customers and see better results immediately and for those of you that have already leaned into video and are trying to find easy and better ways to optimize your creative you heard earlier today about bumper machine it allows you to take your existing assets could be 1530s all the way up to 90 seconds we will automatically cut those into a variety of sixes using our best practices that will allow you to reach more build that flywheel and see better results so again we've heard you you want things easier from us easier to measure easier to optimize and easier to build creatives and we are committed to building solutions that will make it easier for you to drive performance with video so you can get back to innovating and differentiating your brands so that was a little bit for me but I'm excited to introduce our partner you heard a little bit about textile earlier today and we're gonna go level deeper it is a fantastic collection of brands that are marrying personalization in fashion and leaning very very hard into youtube so please join me in welcoming daniel paul vp of marketing and customer acquisition thank you John it's the first time here from me at GML and it's such an honor to be with you this afternoon I'm excited to take you through our journey with YouTube over the past two years and what we are doing to innovate so please join me for that journey with our transition from more traditional TV advertising into digital video so but let me first introduce you to textile so you might not know the parent company but you probably very well know one of our brands at least if you 18 to 65 interested in fashion and active wear and of course if you've done good job in our marketing campaigns so textile operates five friends fab kids Kate Hudson's fabletics just slap shoe dazzle and the lingerie brand we found last year of Rihanna cybertek's Fendi and in fact Saturday was our one-year anniversary thank you text I generated last year 800 million in revenue and chipboard in twenty four million units and also all of our five four five friends have their own distinct personality all of them are united in one shared mission to reimagine fashion by creating the worst molds innovators and admired fashion company we have seen tremendous growth tremendous growth over the last years and today the business is supported by more than five million active VIP members and with a massive social media social media following in the Net Promoter Score above average it's evident that our unique membership model works so with text size me VIP membership everybody wins our customers love it because they get great perks such as 50% of retail with no monthly obligation and the flexibility to skip each month we as marketers love it because it drives high loyalty and frequent engagement cassavas are coming back monthly and we can gain deep customer insights it also helps us a much much better to predict predict inventory needs but I also want to introduce myself you probably have heard it I'm not a native speaker I cannot hide my German accent so my personal journey at exa started five years ago at our European headquarters in Berlin Germany where I oversaw the European EU acquisition marketing I was very fortunate to receive an offer for transition to our la headquarter here in the United States which was a really exciting opportunity for me personally and professionally and guess what since we are talking YouTube today I watched a lot of YouTube videos to understand how to live as a European in the United States who would knew that building a credit coats credit score it's such a difficult thing to do in fact it's a lifetime challenge so when I started in the United States about 40% of our media budget we invested in television and at the early days of textile it absolutely makes sense because when we launched our first brand about 10 years ago TV was the best way to reach mass media at reasonable cost and in fact in the United States and in Europe it was the most efficient channel for quite some time but was mission critical at this time for us to raise awareness and digital video has come to his prime yet and if you remember the good old days even mobile first was in the buzzword so to be TV was the best way to showcase the look and feel of our product but things have changed rapidly and like all of you we new TV Watson on its way out we just hadn't internalized how quickly have things already changed and this is especially with younger generations so if you look at a slide you see a massive drop in TV trip over time and this for us in the absolute relevant eight age group so in harvest between sixteen and forty four percent in according to Nielsen more than half of the adults between 18 and 49 I either lie TV viewers oh I not even subscribed to TV at all in our office I'm in famous for my intercultural analogies but this looks a little bit to me like if there's a Super Bowl with the two best teams in the country playing but half of the stadium is empty so you have great content but the audience somewhere else so all these data points are major red flag for us considering that the average age group of the textile customers hovers between 27 and 42 years old but I needed some other data point so I did my own internal qualitative research so whenever new employees start a textile we have an onboarding program called Fashion Week and every prett department does a little orientation presentation I'm doing the one for media acquisition so I ask a similar question as John did earlier today and I ask please raise your hand if you watch linear TV and if I'm lucky one or two people in the room raised their hand and it's intern season with the majority of Gen Z's in the room I have even to explain what linear TV is but when I ask who watches Hulu Netflix Amazon Prime and YouTube everyone raises their hand just like you did today so with court cutters on the rise we knew we need to move quickly but we also knew that some type of video content would be part of our strategy so with those information on hand I went into office of our CMO so you met her early on the main stage talking about our great success with discovery ads so it was December 17 I walked into her office and said Laura I want to reallocate our entire TV budget within the next 12 months so knowing me and that I'm not really famous for making bold statement giving my German heritage she asked me are you serious yeah and I was because a text that we are very very data-driven so Laura and I saw a huge opportunity to reconnect with our audience and it didn't take long for a change in mindset so we agreed on a couple of conditions for this bold move and we are ready to roll so but as you all know challenges as just described they don't go away overnight no they shake there a shift the attention elsewhere so let me tell you which challenges we are facing along the way so first and foremost if you want to shift 40% of your budget you have to do it in a smart way so we needed to diversify our marketing channels and dependency on one or two marketing channels are never healthy nor are they sad heatedly smart so as representative of five friends and a 3-digit million dollar budget we had to make sure we're setting yourself up for sustainable success and secondly we needed to get a better insight to make our ads more relevant from our social media campaigns we knew a killer creative is key so we were hungry for actionable data to stand out and finally we needed to do a better job focus on strategic things while simultaneously executing our day-to-day business and I would not be on stage today and no surprise to you YouTube helped us with all of these three things let's talk about diversification 2018 was a very very transformational year for textile at the beginning of the year we spent the majority of our media dollars between Facebook and television but by the end of the year we had completely revamped our strategy diversifying our media budget across additional social like Pinterest snapchat but also streaming video influencer marketing and YouTube which brings me to a very important point I believe YouTube is an underappreciated acquisition channel YouTube reaches more 18 to 49 year olds then all TV networks combined and this is a probably not even a surprise to you I'm pretty sure almost all advertisers here in the room have tested YouTube in the past or wanted to test YouTube we all knew our audience was there but unfortunately it was too expensive at the end of 2017 beginning of 2018 the only way how you could buy advertising on YouTube and John was referring to that also known CPM or cost per view basis and this is not a viable option for performance advertisers like us with very strict GPO CPA or Ross goals so everything changed in q1 of 2018 when YouTube introduced a new way of buying advertising the solution was target CPA bidding it was a complete game changer for us you simply define a cost per X goal and the idea rhythm does it's magic finding the right audience at the right time at the right placement and at the right device but besides those changes there was also another change and this was an audience targeting and here the secret weapon is called custom intent audiences so you simply take the so how does this work you take a list of your best performing search keywords and copy and paste it into the setup of your YouTube campaigns it's really as simple as that and then those users become your audience in YouTube and it doesn't matter at all how much you bid on search your rank your performance only the audience measure matters it's copy and paste and it's as simple as that think think about all the search impressions you have lost to rank competition budget or the mysterious Quality Score all search impressions that never turn into clicks now you can reconnect with that audience on video the most engaging medium when they intend is the highest you can also add websites categories competitors your audience is shopping with the possibilities are endless and that's what I think is the most exciting about advertising on YouTube so let's move to our second challenge we needed to make our ads more relevant for our audience so it's no surprise that audience matters the recent study from Google nips are shows that people paid three times more attention to etc relevant to them than to generic ones so having said that if we have a better pulse on people's passion and preferences we can provide our audience with more personal and more relevant ads while they are waiting for their favorite cat video so what our people are searching for which types of videos are they watching which influences are they inspired by how are big moments in pop culture politics or sports translating into new trends using Google and YouTube data tools to answer those questions help us to create more relevant ads which help to protect to turn potential members into loyal customers Google Trends helped us to navigate the ever-changing fashion scene so we learned pretty quickly that leggings with pockets are absolutely on trend I see if people know what I'm talking about so by now you will see in almost every epileptics add at least one shot where the model is sliding a phone or wallet into her pocket and additionally knowing that so many influences gaining momentum over the last year's we started using their user-generated content in our ads with tremendous success and on top of that we can also copy those influencer names in the setup of our campaigns and YouTube as keywords all this and a lot more helps us to be more relevant to our target audience and it's the third and last point that helps us where YouTube helped us to solve some of our challenges is staying laser focus on the most strategic things so consumers have more choices than ever before and every brand needs to fight not only harder but smarter to stand out from competition so a textile we are very committed to turning technology into real competitive advantage for each of our brands so custom audiences and smart billing have been very critical to our recent success they have helped us to juggle a huge number of campaign variables and reach our very ambitious cost efficiency goals so and even more importantly they give us back valuable time for my important my most important topic improving the creative we knew we needed to level up our creative game because a great performing creative can always compensate a poor per game poor performing campaign structure a poor campaign structure but the best campaign structure this by the splitting algorithm on the most thoughtful set up in your audience can never compensate a poor performing creative but we also know unfortunately the creative thinking goes on the back burner when your teams are bogged down in day to day campaign management so based on my team's experience my suggestion is make the Machine make Google do it whenever it makes sense in your daily workflows these algorithms are so smart buy now you can focus a lot more on the creative strategy I'm not saying leave it completely unattended but shift the focus to the creative the YouTube YouTube algorithm values high engagement and this starts with the video ad for this for textile this strategy has helped us to accelerate our creativity and explore its full potential more deeply than ever before and the key component of created exploration is experimentation testing and iteration is core to texels DNA and when we started advertising in YouTube we basically copy and pasted our TV ads into our YouTube campaigns well what you have heard today what you know yourself about your own YouTube campaigns you can probably imagine how successful we have been with that not really that's simply not what users respond to on YouTube so between March and December of last year we tested 200 different creatives and when I say different it's a different concept a different cut a different ad length a different promo you name it and for 2019 I even expect this number to double or triple we also have dimensionalized our internal reporting now we're able to slice and dice every ad unit by its trade and can optimize even further here but they are more option more options to advertise on YouTube it has been announced today discovery ads are open now so you can buy ads on discovery but we have been very lucky to be the first advertiser globally to test this ad format and we even ramping up more on investment on discovery so you can drive conversions on the YouTube home feed by simply repurposing your best performing social media or display ad and we've been really pleased with the performance of our the Eiger oven reaches pretty fast at CPL and CBO goal and the cost per conversion is significantly lower so this is all great you might same but I want to see numbers and if I would sit in audience like you I would say exactly the same using this test an iterative approach has given us a full confidence to shift dollars away from TV and we're not looking back as a reminder two years ago we spent basically nothing on digital video and 40% on TV and as of today taking fertilizers as an example we spent 20% on digital video and only 6% on TV and for the first time this brands history we go even dark on TV for three months during the summer but at the same time our YouTube investment is on a pace to quadruple year-over-year in its response with strong performance and consistent cost efficiencies for the first 4 month we have spent for the first four months 2019 we have spent more on YouTube than in all of 2018 now you say spend is not a metric you are right it actually pays off for the first four months of this year we can generated more conversions than in all of 2018 which means of course at the same time the cost per conversion is flat so I have probably to wrap it up I want to leave you with three best practices and I hope you can take home some of them with your teams first take an honest look where target audience is spending their time in custom intent is probably the best way to dip your toe into the water with YouTube secondly make the Machine into it whenever comes to campaign tactic so that you can free up time to grow skills that really differentiate your business like improving the creative and finally foster test and learn culture within your organization teams with that natural curiosity have a much higher chance to succeed and stay ahead of the curve to be long-term successful last but not least I want to give a big shout out to our Google team to our video manager Matt without him we would not be there where we are with his dedication but also to Jody and Excel their work his their dedication goes way beyond client management thank you for that and also anchors Thank You Excel for all the help to getting settled in the United States the tips I was so helpful and last but not least I want to thank you all for having me today and I hope these insights a little bit helpful and we wish you all the best for your YouTube performance performance marketing journey thank you
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