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with you. With that back to the show.

Well, hello and welcome to another edition

of the E-Commerce Evolution podcast.

I'm your host, Brett Curry, CEO of OMG

Commerce. So we've had the privilege,

my agency, we've had a pro. You're

working with some really cool brands.

So Native Arctic. I'm going to break

down an Arctic case study here in a bit.

Dude wipes, just doing a really cool

campaign right now for little dudes.

They're kind of their

answer to baby wipes,

but cooler called Little Dudes.

And so we have a full

service Amazon agencies.

We'd manage Amazon, we do meta, we

do email, we do retention. But man,

YouTube,

YouTube is this piece that people are

missing and the people don't understand

and the people don't exactly

know how to leverage.

And so we've had the privilege,

we manage about a hundred million dollars

a year and ad spend want some awards,

and I share that to say all the strategies

that I'm going to walk through here

are based on data, real appliance,

real experiences that are going to

break this down for you. But here's the

real issue,

why more people are using YouTube.

It's different. Not the same as

Meta, not the same as TikTok.

It's very, very different

from Amazon advertising.

It's just a different beast.

And so if we want to understand

how can we use YouTube to influence

shopping behavior,

how can we use YouTube to get people to

be aware of our brand, to buy our brand?

They don't understand how people are

using. How are people using YouTube?

And it really comes down to four key

activities or modes that people are

in when they're running YouTube

ads. So there's searching,

there's streaming, there's

scrolling, and there's shopping.

So kind of break this down a little bit.

YouTube is the number two

search engine behind Google.

So more people do searches every day

on YouTube and on any search engine

including AI search other than

YouTube people trying to learn stuff,

find stuff,

that sort of thing.

Scrolling right on the YouTube mobile app

or if we're on YouTube

shorts, we're scrolling.

That's the mode that's most like other

social platforms. Then there's streaming.

How many of you guys watch YouTube on

connected TV is on your TV screen or your

kids do? I know for my kids,

we let them have TV time.

Several of them just want to watch

their favorite YouTube creators.

They're not watching cable, they're

not watching any of that stuff.

They want to watch YouTube on

tv and then they're shopping.

We're researching products. We can

actually discover products on YouTube.

We could click it, buy

product directly from YouTube.

So it's really these four modes,

but they're all different.

And so we again understand

how we interrupt people.

Now, this is kind of crazy.

I've been doing this for a long time.

This number has been changing over the

last couple of years. So this is market

share of streaming platforms

specifically on connected

TVs.

YouTube has been the leader for two

years and the lead is extending.

So even last year was 10%. Now

it's 12.4% therapeutic Disney,

they'll be paramount. They're bid

NBC, they're crushing Netflix.

Take all the smaller ones

combined. YouTube is bigger.

This is based on time spent on TV screen.

So if you want to influence

people through tv,

you use YouTube. And so this element

though, this element of YouTube,

it's way more like TV because it's on tv.

So you can't just take your meta

ad and translate it directly here.

You can't just take your TikTok, add it,

translate it directly to a TV street.

It needs to be a little

bit different. Also,

YouTube is the number

one podcast platform.

My guess is if you've

got a podcast you love,

they're on YouTube and that's maybe

where you watch. I have a podcaster.

I run the E-Commerce Evolution

podcast talk to a lot of podcasters.

And most of the people that I talk to

say that their YouTube viewership for

their podcast is growing and audio in

some cases is staying kind of flat.

So YouTube is a podcast platform and

we're in a different frame of mind.

We're watching a podcast. It's long

form. We're in it for the whole episode,

most likely great place to advertise

someone, show them new product.

This is also a little bit different,

right? I'm a huge TikTok fan.

My buddy Josh ha is going to

be talking about TikTok shops.

There's a difference though, between

YouTube creators and TikTok creators.

You may be served an ad on TikTok or

see a video just because of its viral

nature. You've never followed that creator

before. You may never see them again,

but you see that ad or

that video with YouTube,

it's usually creators that

we've got a relationship,

this is a creator that we've watched

5, 10, 15 videos. We're subscribing,

we really get to know them. So

it's a different trust factor.

So 98% of people say they trust

YouTube influencers more than

any other influencer

on any other platform.

But ultimately the reason YouTube is

different and the way we have to approach

is there are different creatives.

So the way we structure our ads,

it's different because there's

different modes and different screens,

different campaign structure,

different algorithm, different bidding.

All of that does not sponsor product

ads, not even sponsor brand video.

This is something different. And then

this is where a lot of people lose heart,

give up, abandon ship, say YouTube is

not for me. It's because of measurement.

It's a different beast to measure.

You got to kind of be ready for that and

up for the task or else it's not time

to look at YouTube,

but I believe it's the most powerful

growth engine your likely missing right

now. Can you give a couple

examples here, Dr. Squa,

anybody blown away by their valuation,

we saw that Unilever 1.5 billion,

freaking crazy. So we did

not work directly with them,

but Raindrop agency close partner of ours,

they did all the original Dr. Squat

ads and one of the original ones won

YouTube out of the year in 2020.

Just found out recently that

during that hypergrowth stage

when Dr. Squash was

crushing it on YouTube,

their media buyers were

following my YouTube course.

So I put out a YouTube course with Ezra

Firestone, he's speaking later today.

And the guy told me just a few

months ago, I was like, oh yeah,

we were consuming your course and just

doing what you said. And so I was like,

oh, sweet. Would love to get

some equity, maybe some shares.

But that didn't not work out native.

We didn't work directly with them.

So they were a client for about six years.

When we started with them, they were

about a hundred billion dollars in sales.

Modi a founder, awesome

guy. He tweeted recently,

beginning of this year they

did a billion dollars in sales.

Last year ne did on

about 20% EBITDA margin.

So 200 million in profits,

they bought native for like one

23 million that paid off for them.

That was a good investment

then just pretty crazy.

But we mapped out their YouTube

strategies for retail and for D two

C and then boom, my city

Joseph, like I said,

you'll hear from Measure Firestone

later today is one of the keynotes.

We ran all their Google their YouTube

but still do for maybe 10 plus years.

We launched them on Amazon,

so they were not on Amazon.

We built out storefront listings,

Amazon ads strategy did all of that.

They did 6 million in sales the

first year on Amazon and it did not

cannibalize their D two C

business very much. But the

reason that all happened is because

they're spending a lot of meta spending a

lot on YouTube.

They had this demand

creation engine flowing.

There's a lot of people that wanted boom

and a lot of people that wanted boom,

went to Amazon, didn't see it

there and bought something else.

So we were able to capture that.

But really this speaks to just the

power of building a brand off of Amazon.

Now, can you win in this scenario?

So you want to win on

best wheeled coolers.

I'm a big fan of the

coolers with wheels, right?

You got to lug in something around

that's just full of ice and drinks.

You got to use wheels. Can

you win in this scenario?

Can you win on a purely search basis?

I think you can and I think you should,

but I also think slugging it

out in the SERP can feel like a

knife fight sometimes versus is really

brutal. It's just brutal and it's harm,

right? So you got to do that, but I

think it's even better to do this.

I'm going to break down

Arctic in a minute,

but what if you showed people how

awesome your coolers are and they end up

looking for you on Amazon

now they largely skip your

competitors. You dominate this

resolve and now you win the sale.

So ideally you want to do both,

but I think you gained real advantage

when people are coming to Amazon looking

for you. Totally changes again.

So you have three keys to

make YouTube work for you.

You're going to break those down

right now. We're really some examples.

Watch some ads and have some fun.

But the first part is you got

to nail your creative strategy.

This is really where the

battle is won or lost.

It's with your creatives and there's

a few things to consider here. So I'll

go a little bit technical,

I'm going to give you a formula and

then I'm want to watch some as I think

that's the best way to

learn. So what's interesting,

I know the trend on meta

has been shorter ads,

although I hear that's kind of maybe

reversing with the Andromeda release,

but YouTube, 45 seconds

up to three minutes,

that's the sweet spot.

We've never seen 15 second

ads really crush it.

The shorter ads though, they

usually don't drive conversions.

People need to stick with the

video, see your product in action,

get all the features and benefits and

then they're more likely to purchase.

So a little bit longer.

There are elements of your ads that can

feel like a meta ad and elements that

feel like tv, I'll show

you, you'll see that.

And then you want both the vertical as

on by 16 for shorts and mobile and then

16 by nine for tv,

desktop and also part of mobile.

And I will say the core of YouTube,

the foundation of YouTube

is that 16 by nine video

because 50 to 6% of views are on tv.

Sometimes we're watching a longer

form piece of content on our phone,

we're still pooling it in landscape mode.

And so that 69 is core

for YouTube. Alright,

here's create a formula.

I don't like to get super formulaic

because I think sometimes you got to

do something that fits for the product

and you don't want all your work to be

just a copycat of somebody else, but

these are elements that have to be there.

So first of all, the hook.

This is where we spend the most

time word with a creative partner.

We're reviewing the performance of

a campaign. How strong is that hook?

You got five seconds, right?

Five seconds and then that magic skip

ad button pops up. Some people are

hovering over the button to

press that they hate you for

interrupting them, but you have

five seconds to win 'em over.

You have five seconds to make

them say, well, a little bit,

maybe just maybe this ad is worth

watching. We've all done that, right?

We're all like we're ready to skip.

Maybe I'll give this another 10 seconds

and see what's here. And by the way,

that is actually the point of the hook.

The point of the hook is not to close

the deal. The hook can close the deal.

The point of the hook is to get them

to keep watching and to stay to get the

right person to keep washing. So

logos, important product demo.

We want to see the product in action,

either an actual demonstration

of the product. So I'm using it,

I'm using the cookware,

I'm putting on the makeup,

or you're showing the end state of

what your product will do. Taking a

supplement out. I feel better now I'm

running, now I'm lifting my kids up,

whatever. So show me the product of

action. Some kind of social proof.

It could be reviews, could be actual UGC,

but I need some kind of social

proof that other people like me,

I've used this product and it's

worked for them. Got bust objections.

I'm from Missouri. Anybody else here

from the state of Missouri, right? St.

Louis from Springfield. Yeah.

So Missouri for those know the

show me state and it's very

charming. Our state animal is the mule.

So we are all a bunch of

donkeys out there in Missouri.

But the key there is like

you've got to show us.

So we're not going to believe you

right there. We all have objections.

And I think when you're picturing

your customer in your mind,

think about people from Missouri, right?

They're stubborn,

you got to show them or else

am not going to believe you.

And so we got to overcome

those objections.

Objections left unaddressed

will prevent someone from

clicking and taking action.

They just won't do it if there's

still objections that are there.

And then finally some kind of call to

action, some kind of offer, some kind of,

hey, do this next thing.

And if you don't have that,

people will not take action. So

here is something to keep in mind.

How many you guys are

advertising on meta right now?

How many guys advertising on

TikTok? Alright, yeah, great.

So your best social ads on meta

on TikTok, you take those videos,

those may become your

best books for YouTube.

So that's one way to leverage those ads.

Now I'm going to show you a few ads.

I'm going to show you three

ads. This first was for Arctic.

I'm going to break down a case study.

We helped Arctic grow

in Walmart with YouTube,

but it also lifted Amazon D, you see?

But this is one style of video.

This is a creator that I'm going

to play the whole video since this

works.

This is the 65 chord ultra.

Its off our dick goer and I actually put

it to the test and in quite a few fun

different ways. And

this thing is ultra top.

I am April Wilkerson and I'm a builder.

I am always running and gunning,

whether it be in my work or in my hobby.

And I put a high value on function,

durability, and high quality.

And that's why I resonate with ATech

here because they are overbuilt

but not overpriced.

So that video crush, this

was a shorter version,

straight to the shorter version

because that's easier for presentation.

Longer versions actually worked better.

What did you like about that ad?

So this would be audience participation

bar. What did you like about that ad?

What's that concise tagline? I like

that overbuilt not over press. Yeah,

Brandon, immediate action.

Like how this right in,

right in the action. And that's an

excellent point. Learn this from Google.

Years ago they say, Hey, if

you're building a YouTube ad,

think like a movie trailer, right?

This is not a normal story arc where

there's like a slow buildup and then it

builds to a climax. No, no, no.

Think about a movie trailer.

What happens at the beginning of a

James Bond movie trailer explosion.

He's jumping out of a plane,

something crazy's happening and then

maybe it'll back up and tell the story and

then something intense again, right?

You don't to have special effects,

you don't have to be change bond,

but start high immediate action.

Somebody else. What else did you like?

Maria, sir, it's a single problem.

Durability. Yeah. Really

focused on one problem, right?

She's chucking this thing

down the bank of a levee.

She's kicking it off her deck. She's

parking her F three 50 on it, right?

This thing is durable, right? If

you're going to invest in a cooler,

this thing is going to hold up

and it just absolutely crushed.

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Also, anybody a fan of home

improvement from back in the nineties?

I know it's been, she is like a Tim Theto

man Taylor, but way more trustworthy.

I kept telling the Arctic, we still work

with Arctic, they're great. We're like,

get me more April Wilkerson videos.

I'm like the super fan. So great video.

This is one from Native. This

is not their top product,

but this ad,

and you'll kind of see this is

a mashup of a whole bunch of

creators and Instagram creators,

but woven together in an ad.

And I think this format

will work for a lot in for.

Brands. Maybe Moisturizing Nation helps

my skin to feel so hydrated and stewed.

I just love the fact that I keep

your skin moisturized all day.

What they new and improved formula.

And I just love how rich

and creamy the formula is.

They provide a dehydration with a

lightweight field. It is super irony,

but also lightweight and secret

to your skin is super fast.

You're going to love it.

The formula absorbs in the skin so

easily without leaving a residue.

And don't even get me started on how

good they smell. Just smells so yummy.

And also actually haveland seven of

their best stuffs. You smell good.

It's quite literally the best compliment.

Awesome. So what you like about that one

constant movement? Not to the

point of being overwhelming,

but you almost can't look away. It's

movement. It's moving a lot, right?

There's always two panels, you bet

that has kind of at three panels,

two panels are almost always moving.

One is static, one is kind of branding,

showing the product, showing some design

elements. The other two always moving.

What else sir?

The count.

Yeah. Yeah, the count.

The number of UGC elements.

I remember sitting in a room showing

this ad for hair products to a group of

women and one of them said,

my hair's not like that.

I don't think it'll work for me. And so

that's something we got to keep in mind.

If we're showing UGC,

you need to show a variety because

the person you want to buy,

they've got to see themselves in that

ad. So if you're watching this ad,

you're probably seeing someone with

your hair type, your skin type,

maybe your personality. I

resonate with that person.

So this will likely work for

me. Here's another similar one.

This is for oppo pop. This is one we

just launched some on YouTube. Listen,

a month ago, this video is

absolutely ripping right now.

I'm going to go and play it.

I had no idea popcorn could get that

good. I have a thing for you to eat.

It's called opo Pop. Beautiful.

Step right on sea go.

It's just so cool.

Alpa Pop where every kernel is

individually wrapped in flavor.

No more half flavored popcorn.

How glue can it really

be? It's just popcorn.

I had weird flavors like

C Delicious, fancy Butter,

KLE mustard, that ones sounds good.

Wow, you need to try this.

Popcorn oppa pop.com, you min.

So it really is Ray Popcorn. I recommend

you try it. You kind of see, again,

that's a variety of influencers.

There's some quick pitting clips.

Then there's the one clip of the

girl trying the pickle monster.

And she's like pauses. Usually it goes

quiet. She's munching. You're like,

what's she going to? A little bit of

suspense built up there. But yeah,

you see that. And if you're a popcorn

fan like I am as my favorite snack,

you're like, I should

probably check this out.

Should probably give this a second. Look,

the Drew Barrymore piece helps as

well. Getting some celebrity in there,

but not necessary. Just

a bonus if you have it.

And so this is what we

build for our clients.

This is what you need to do with

your team, with your agency,

or we're using for YouTube

creative feedback loops.

So the good news is with YouTube,

it is dependent on creative.

You'll live or die by the creative,

but you don't need dozens or hundreds of

ads running to make YouTube work.

And that's what I know from

my meta team is that, hey,

some accounts you need hundreds,

thousands of creatives to make meta work.

Not the case with YouTube,

you need a handful to get started and

then maybe a handful a month testing

from there on out.

But what we're really looking at is

these three things we're watching what's

called the view rate.

So the percentage of people that see

the ad that actually watch the ad,

so they choose to watch

the ad, they don't skip.

What is that view rate that

view rate's going to tell us?

And it's more relative to your brand

than it is based on a benchmark.

But how good is that view

rate? That's going to tell us,

does this book resonate? Does this

book resonate with this audience?

We all get the view rate,

the product demo piece.

We're really going to see if that's

working by the duration of the video that

they watch. How long do they watch

the video? And then do they click?

Because if they're bailing

early, the demo's not good.

Or if they're not clicking, could be

it's on tv. TV doesn't get clickthroughs,

but it could be that the demo wasn't

developed and I didn't see enough there to

make you click. And then of course,

conversion rate really kind

of wraps into all of it.

We are trying new calls to action,

new offers all the time

to see what wins. Alright,

so number one is creative. Number two,

we got to look at campaigns and the right

campaign structure to win on YouTube.

I break down this Arctic case study

for you. We were approached by Arctic I

guess almost two years

ago. They said, Hey,

can you use YouTube to grow Walmart sales?

We've been succeeding on Amazon to

grow online. We're in Walmart town,

coast to coast. Can you help

us grow there? We said, yes,

that's what we built for

Native back in the day.

And so these were kind of the five

ways we measured success on YouTube.

But this is really how almost everybody

needs to look at measuring success on

YouTube minus the Walmart

piece if you're not in there.

But we number one objective

was Walmart sales.

Can we lift in a meaningful measurable

way, Walmart sales using YouTube ads?

So we create a search lift.

And what that means is,

and Google will measure this for

you, people that see your YouTube ad,

are they more likely to

search for your brain?

So they'll actually measure the lift

from YouTube that drove increased

searches for your brands.

Can people visit the store?

And so something you do

if you're in Walmart,

it's harder or Lowe's

or some big operation,

Google can measure someone saw

the ad and then visited the store.

So in store visits,

online sales of course.

And then post-purchase surveys

for those are selling D two C.

How many of you guys are

running post-purchase

surveys? It's huge data point,

especially as some tracking

goes away in some areas,

like you got to be doing post-purchase

surveys. If you are D two C,

this is something that I'm happy to

run. If you're a bigger brand, eight,

nine figures, I can run this for

you for free. Google will do this.

Basically they'll look at where across

the country your category has high and

low demand. So sell wheeled coolers.

Where are wheeled cooler searches

popular? Where are they not popular?

Where is it kind of the middle?

And where is your brand popular?

Where are people searching for your brand?

Where are they not search of your brand?

You start to look at where that overlaps.

And this gives you opportunities of,

Hey, I need to lean more into

these areas to sell more.

So if there's high category

demand, a low brand demand,

I need to go for it there.

And sometimes if there's high

category and high brand demand,

I can get even more from those markets.

And so we use this for Arctic

to kind of map out the strategy.

Here's what we saw after running

YouTube for about six weeks,

we saw 230% lift on mobile

searches. So people

that saw the YouTube ad,

two 30% lift in Arctic brand terms,

and then two 31% lift on YouTube

where people were searching,

and this was just one of

the test sales we ran in,

but they saw a two 45% sales lift in

Walmart. So we kind of a geo holdout.

So they got statisticians on our data

team, data science team at Arctic.

They measured this, but they said, Hey,

comparing these markets to

other comparison markets,

25% Lyft driven by YouTube. It was

the only variable in those markets.

A couple of callouts, little rock,

44%. And I just threw up Stringfield,

Missouri where I live, and I think

that was all my wife, she was like,

let's get art to COAs for

everyone in our family Drake wear.

And I think that was all me. But

anyway, this was how we measured.

Did YouTube actually work and drive sales?

We won an agency excellence award

from Google, which is really cool.

And now we're doing this for

a bunch of different brands,

omnichannel growth with YouTube.

And then the third thing,

last thing is how do we

measure for success? I kind

of showed that a little bit,

but I want to break this down a little

bit more here in the last few minutes.

Anybody heard of House Analytics or

has anybody seen this podcast with

Olivia Corey? My buddy Andrew Ferris said,

yeah, there's a yes back there. Yeah,

this was awesome. So I'm a

huge house analytics fan.

They do incrementality tests

based on geo holdouts, right?

So you got to test set of geos,

you got a control set of geos.

You're measuring the difference because

here's what's frustrating about ads.

Even if you're using a tool

to measures click-based data,

you don't really know

what made this person buy.

Was this ad the reason they bought or

was this just the last piece of the

process?

So the most scientific way to

figure out did this ad cause a lift

is an incrementality study.

They're actually kind of expensive,

but here's what house said,

190 incrementality tests rolled

with eight and nine figure brands.

Israel brands spending about 30% of

their meta budget. They were investing in

YouTube,

so they were not just spending

a few thousand dollars

here and there on YouTube,

they were investing in it. But then

they measured, okay, how do these geos,

where they reign YouTube, how do

they compare to other markets?

And here's what they saw.

They saw that the actual

incremental performance,

the performance in their data was

3.4 times better what they saw in

YouTube.

So to transl that if you saw a

one x row ass in your YouTube

data and platform,

this group was actually getting

a 3.4 x roas. Okay? Now,

if they were advertising or if

they're also selling on Amazon,

you could add a full a

hundred percent to that.

So you may be seeing a one in platform.

It was actually a 442% lift,

including all of DSC and all of Amazon.

And also 76% were new customers,

net new customers to these brands.

They maybe thinking what,

why is YouTube so bad at measuring

their own platform and measuring their

own performance? Really it

comes out to a few things. One,

we're all logged into a bunch

of different Gmail accounts.

We have Vision one meta account,

we all prep dozen Gmail accounts.

Our kits are logged into things and it's

a bit of a mess. So that's part of it.

But the other thing is people

don't really click on YouTube ads.

If we're on YouTube, we're there for a

purpose. We're not that likely to click.

And so even at its best, YouTube

has half the click-through rate,

less than half the click-through rate of

meta. And so if you don't get a click,

it's really hard to measure what happens

after that unless you get creative.

50% of views, it's up to 60%.

I've seen in some studies now are on tv.

You don't click your tv, right?

TV has never been measured by click data.

You got to measure that a different way.

And so that's where you look at

search lip, brand, lip sales lift,

things like that. You got to get

sciencey to make that all work.

And so it's just a

different beast to measure.

A couple quick examples that I'll

wrap up. This is for Haircare brand.

We ran all of their Amazon or

we ran all of their YouTube.

They had to pause their YouTube

ads for a bit to kind of,

they were retooling a few

things. When they did,

we were measuring because we

were running their brand search,

we're running everything

on Amazon for them.

Their brand is search

volume got cut in half.

So people searching for them by name

on Amazon volume got cut in half when

we paused Amazon. And then over time

they had a data science team as well,

pretty big brand. They believed

that for every 1D two C subs,

we were driving traffic action to

their D two C store with YouTube.

But they were confident. They said, Hey,

for every 1D two C sale

we're getting here,

we're getting two on Amazon as

people just like to buy on Amazon.

So they see the ad, they explore,

they learn within they buy on Amazon.

So really to look at YouTube,

you got to look at what we call the

trifecta of lift for the results

here. So we're not just measuring

the click data in YouTube,

we're not just measuring with Triple

Whale and North Baer or another multitouch

attribution tool like that. We're

looking at all of these things.

How can I create a baseline with my

Amazon sales and look at growth rate and

then how can I see lift above that?

How can I look at search lift? That's

something Google will do for you for free,

something we can help set up.

And then how are my overall

sales trending up as well?

It's not the same. And you

got to just be okay with that,

that it doesn't look the same as

sponsor product or sponsor grand ads.

It is a different piece,

but it's a very powerful tool

and that's why brands lean into

it. Brands like Dr. Quach, it

was their big growth lever.

It was the new growth lever for

Arctic and many, many others.

And so how can we help? I'm going

to be around rest of the day,

be around tomorrow as well. So

we can do these things for you.

Kind of a YouTube readiness. So if

you want YouTube, read this audit.

We can look at your creatives, look at

what you're doing now and say, okay,

you would need to do these things to be

ready for YouTube. We can talk about the

combo of YouTube and Amazon

and overall just help you

get ready for this. So I think

I am officially out of time.

Thank you for kicking off.

Innovate with me and look Port

as always, thank you for tuning

in. We'd love to hear from you.

What would you like to

hear more of on the show?

Leave us that review if you've not

done. And with that, until next time,

thank you for listening.

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