In episode #2687, Eric Siu, Ralph Burns, Kasim Aslam, and Neil Patel discuss various strategies and insights related to AI in marketing. They share their experiences and highlight what has been working for them in terms of leveraging AI tools and techniques. The guests discuss the power of long-form YouTube ads and the importance of utilizing the high watch times on the platform. They also explore the concept of the Lindy effect and its implications for businesses. Additionally, they delve into the significance of staying on platforms like Instagram and Facebook to drive conversions and engagement. The episode concludes with a discussion on the importance of leadership in building and scaling successful organizations.
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Speaking of the AI stuff, what's been working for you guys? I you know what you guys have been so Ralph Castum, you guys.
Weren't warding before, right for years?
Okay, we should do a wicked smart section for this towards the end. Neil you probably remember that what that is. Neil's been a warroom before too. But on the AI stuff that's going on, like, what's been working for you guys? You guys share a lot of stuff there too, So let's start with you, Cassam.
He doesn't actually do any work. Yeah, he has to say, Oh dude, I've got a couple of really good ones, so long form. I'm actually you know, it's so funny. I'm stealing this. This is a wicked smart presentation that just happened at Driven, which is the new one.
That means he's never done it quick somebody else.
Yeah, no, I'm stealing it from. This is Dimitri, my buddy, Dmitri Smirnoff, Big life Marketing, wicked smart cat. You guys should have him on the podcast. Dmitri presented a wicked smart that I loved and I've actually done. He's taking long form YouTube ads. Here's what's really interesting about YouTube ads. The watch times on YouTube ads are inordinately higher than all other media platforms. So if your watch time on like you know, meta ad is I don't know what, fifteen twenty seconds or whatever, your watch time on YouTube ads can be minutes long. And the average time on site for YouTube is twenty minutes, which is insane. The average time on site across all websites is sub sixty seconds, so like average time on side on YouTube is unfreaking believable. And if you have long form ads, we have one of our highest performing ads across. We spend one hundred and fifty to tw hundred thousand dollars a month just in YouTube. One of our highest performing ads is an hour long. It's a one hour long video of John Moran explaining media efficiency ratio.
John Moran, basketball player.
No, John ran my business partner. I don't know there was at Joe didn't.
Know it was a media buyer. Yeah, an NBA star, John Moran.
That's funny. Yeah, he moonlights. So we have this hour long YouTube video. But the point that Dimitri makes is if you've got these watch times, especially if your watch time is getting close to sixty seventy eighty percent. Whatever, why would you like people are watching, allow them to continue to watch. And then the other thing that can be really interesting too within YouTube. Following that kind of same ethos is run ads to other YouTube videos, which is counterintuitive. Everybody thinks, you know, the click should go to the website, the funnel, the offer or whatever. But there's Google has the seven eleven four rule. Have you all heard this?
You know, I haven't. It sounds familiar, Go ahead, it's it's interesting.
Google did this multivariate study across basically all purchasing behavior. But the seven eleven four rule states that a customer needs to spend seven hours engage with seven hours of content across eleven different moments in four locations before they're ready to engage with you.
Ah him, don't be shy, say hi, don't be shy, say hi.
I'm gonna say hi Hi.
I'm she doesn't want So what this does is it gives you the opportunity to kind of really boost those numbers and instead of going straight for the throat and you know, the jugular of buy now, using high end content to have them engage with more high end content. It's a way to invest in your customers give value first, and it's showing quite a bit in the way of results for us.
I love that.
Was that a wicked smart winner.
He placed in the top three. The winner was actually Rachel Miller this year.
That name sounds familiar to dude.
Rachel's maybe one of the smartest people the whole Wade world. You guess you ever on too. She just launched an AI product called busy dot Ai. That's insane. Shout out to my.
Friend r what does it do?
Tell us what it does? You get a double ate.
The product, the funnel, the list, the follow up for everything that you need to launch an info business in a fraction of a second. It's like a business in a box. Creator. It's unbelievable.
So if you have a products, you can launch a business.
Emma, Yeah, it will be Emma's business. We could do in fifteen minutes about together. It's pretty cool.
I love it all right, Ralph hit us far more like see the ball hit the ball here, like you know, I look at AI right now. Is just a force multiplier for people that I already have on staff, as opposed to replacing them. But I just replace some content writers with some of the AI tools. I mean one of the biggest video tools that we use, like talk about content just at top of funnel, like we're really talking about the more content you can get out there as much as possible from an organic perspective. And you guys know this, and obviously you know you guys rank for lots of keywords, but it's not even that. It's just being out there and multiplying your content and taking what you've already done. In our case, we use a lot of video I know you guys do as well, but I think one of the best tools. And I'm surprised that people actually at our mastermind didn't know about this one because I thought everybody did. Which is Opus, Opus dot pro, and we use all this all the time. It's like it's it's absolutely fantastic. So you just so for people that don't know what it is. Let's say you have a video like this is a video podcast here, you basically throw it into Opus dot pro and it pulls out the segments for the small short form videos with the most relevant content. Maybe it's you know, in our case, it might be you know something well, probably not something that Costum said, probably something that I said I'm sure it pulls out like the most relevant chunks and then recreates that in a short form video with some slight editing, and then you have your person go in there and do the refinements, and then we can multiply stuff like so quickly, so fast. I think it's it's getting to be known a little bit too much because the some of the short form videos are done in sort of that Hermosi style, which Homosi is now sort of changing his style to, which is kind of cool. He's going more long form. The point is is it's a great way for you to take one piece of content and multiply it, especially in the video side, and syndicate it. We do the same thing with blog posts with another tool that we use content at Scale AI. It's been a sponsor for potetual traffic for years and years. I think any of those tools, if you google AI tools for content multiplication like it is, or for syndication, it's a great way of being able to do what we've been talking about here for the last hour or so. And you know, very small budgets with tiny teams. I literally have one video editor and he pumps out like twenty videos a day, and they're high quality, so we don't know which ones are going to hit, which ones are going to get, you know, engagement. But the point is is the more we put out, the more leads we see, the more visibility, the more opportunity we have to scale.
Yeah, I see that all as like a I told Neil this, we see social media is like a slot machine. Now you just keep the more you put out, the more chances you have to hit the triple sevens. That's all it is at the end of the day. By the way, Neil and I have an agency owners group called the Agency Owners Association. All you have to do just go to marketing school dot ioslash Agency. Once again, it's Marketing School dot ioslash Agency to learn more. And now back to the show on my end and I'll let me go next. So we've been doing with this podcast specifically, so we're gonna go ninety minutes here, right, So Riverside's gonna give us AI transcript here and it's called AI assisted content, right, And now I think from this experiment, now it's driving like up to five six hundred clicks per day and it's starting to really ramp up, right, And so what we're doing is this podcast is daily and we are just taking the trending topics and then taking the transcript making it into a blog post using AI. But then you have a human in a loop that's going to add context to it. It's gonna add links, it's going to add pictures to it. And then we're also cross linking to other recent, you know, new publications. But our costs come down a lot. We're able to put the content out a lot faster. Now what we're doing too is we're using the XML site maps of marketing news websites too to get trending topics and then well we might get like a quick overview and then our writers will just go in and start writing. That way, we might not necessarily need to idate every single time, right, So that this is a way for us to build more top of the funnel content, while we use programmatic SEO to build more content around more bottom of the funnel stuff.
Right.
So like, for example, if your trip Advisor they get one hundred and twenty seven million visits per month from organic all SEO, they rank for like twenty million keywords, right, and they rank for everything on their fun things to do in Rome things to eat in Japan, fun things, fun attractions, right, all these things, and anybody can do that now, right, and so it just depends like not anybody. But if your business has a lot of these different permutations, there's a lot of different demands. There's locations and things like that. You can do programmatic SEO that's more bottom and funnel. You add in these two combos.
One thing you're gonna be really hard to beat because most people. People are not doing this for as.
It's selling on the platform. So if you look at most ads, whether their brand awareness or performance bace ads, the intention is is people try to drive people to a website and get them to convert. What we're seeing is right now. If you just keep people on the platforms, it's way cheaper. So for example, if you're running ads and stories on Instagram, don't have one story, have multiple stories that gives the pitch, gives all the copy that they would get on the landing page from your website. But keep them on Instagram longer and let them stay in the native platform that they're used to and they're consuming everything that they need to know, and then when they go to your website, they go to buy right, and some of these platforms are making it where they can just buy on that platform. But what we're finding that is working extremely well right now is take what marketing material you would put on your website and don't think if your ads is just an AD to drive people back to your website. How can you have an AD that engages them and give them the information on the platform that they're on so they don't have to go to your website other than to make the purchase. And we find that to convert really well and be much more cost effective, especially in a time where Casen gave the example of it used to be you spend ten dollars and you make thirty dollars sale, and you make ten in profit, and then you're breaking even and then you're losing money on the front end, and then you're really losing money on the front and hoping to make it back on the LTV. But we're seeing this make the numbers more favorable to the advertisers.
Again, cool love it cost them.
Ralph rate that one through ten.
Do that in app. You don't know Depesche Mendelia. No, he's a smart guy. I heard him talking about staying an app a year ago, and at the time I thought, like, how I'm lazy, But since then, I've seen it move more and more in that direction and to the point that Neil's making everything gets better. Engagement is better and higher, you keep people where they want to be. And what's nice is you're tracking you know, it's their lead indicators. So it's vanity metrics, but that's better than nothing, which is what I feel like we're getting. And so as vanity metrics become meaningful because if somebody's watched a myopic ad, well who cares. But if somebody's watched something that constitutes the majority of your funnel, that's really meaningful data. So I think it's I think it's a brilliant note.
I'd go, yeah, I would agree with that. I think we've used that with video ad sequences on YouTube on YouTube ads, and it works really, really well. Sometimes it's seven, eight, nine individual videos and they may or may not and there's a way in which you can actually track it. Am I watching the first one, the fifth one, the seventh one, then back to the third one. The point is it's like people just still don't think people get the fact that people just don't look at a video, click to a land, engage and then see a retargeting ad and buy and that's three in three days.
You know, within a thirty day sequence.
It's like people are chaotic and there's just it's chaos out there. You have no idea what people are doing. But if you actually try to set up and this is where the smart marketers are really going to thrive in the next few years with AI and into the future. Is thinking it through, Like if I was going to buy this thing, you know this whatever is that, like you know, my ear earbuds, Like what would I need to know in order for me to finally make that buying decision? Not like does anybody in the world that doesn't know what AirPods are? The point is is like what is that thing that will engage them to start? You know, we're going back to basics here. We're going back to like David Ogivie, like talk about their pain points and their desires in your ads. Dice talked about this to trafficking conversions. Sum it actually call out in your ads to your avatar and their problem and then pull them through on a sequence of events. And it's not linear. Expect them to go all over the place, and I think you know what Nail's talking about with with videos and social same kind of thing, because you have to sort of think in reverse. People don't click, click, and then buy. It's like they they watch, they click, they they click again, they watch here, or it's a it's chaos. And if you just don't expect people to do exactly what you want them to do at all times when it comes to performance marketing, I think you're going to be in a better place. But if you think it through logically, especially through sequences, I think you're going to be that much closer to.
This scess Ralph. You show the example of the air pods that you were hurrying up.
We got one more an be My first ever set of AirPods was some on the internet, read some articles, some on the Apple website, didn't want to spend the money, and you know, time goes on.
You see people wearing was at the airport.
There was a little kios thing and I literally wiped their credit card and I bought AirPods right then and there. How are they going to track that I bought that in the kiosk at the airport because I thought all previously, you know, online, like that's how buying works these days, And you guys are spot on.
But it's funny. Some of this stuff is really hard to track.
Yeah, so here's the last question for everyone here, Uh, what's something really interesting that you learn recently? And costome you get to go first?
Oh goodness, what was that? What was that thing, Ralph that Perry Marshall was talking about. It's based off of New York stage plays and actors would sit around saying how long do you think this play is going to run? And if it's ran for a week, then we'll give it another week. If it's ran for thirty years, we'll give another thirty years. It's a it's an economic principle that says the amount of time that something's been around is the amount of time it will continue.
Lindy effect, Lindy, that's it.
Yeah.
So Marry Marshall spent an hour going on and on and on about the Lindi effect. And I can't stop thinking about it now because it's so And then when you when you google it, there's a bunch of rabbit holes you can dive down. But I found this video the Lindi effect explained in one minute from this one minute economics YouTube channel, and it's it's fun, especially given where she's got.
You're good even if.
To play Lindya effect with shit, you know what I mean? Like it's just oh, forgive me, Neil, I realize your kid is trying to teach her.
Sure, Neil's never said bad.
Lendi effect is what I learned.
Yeah, got it? Love that love it costme? You know what I'll go next on this one. So I'm reading a book right now called Working Backwards. Have you guys read this book before?
Okay?
So one guy was the chief of staff for Jeff Bezos. So these are two Amazon guys. One guy followed Jeff Bezols for two to three years, he shadowed him everywhere. The other guy he worked at Amazon for fifteen years. He ran like he started Prime, he started you know, video and all that, and these guys were just going through It's the entire frameworks, like all the secrets behind how Amazon operates, and there's all these things right, Like you hear about these two pizza teams, like you don't think much of It's like, oh yeah, no, team shouldn't be larger.
Than two pizzas.
It actually goes way further than that, and it keeps evolving and it goes into like this thing called single threaded leadership. I'll give a takeaway for everyone, and I'll just move this on. There's like so many things in there, but one thing is they talk about the six page narrative, right, and they don't allow power points at Amazon, and the reason for that is because they powerpoints are for lazy people, right. It doesn't It allows the presenter to be lazy, and it puts more of the onus on the audience. Their whole thing is you got to write a six page narrative if you want to push a thing through and if we approve it, great, If not, then like you know, too bad, your shit out of luck. Right, So just you see how the evolve over time. It's like everything's chaotic, but they slowly, methodically get to something that makes a lot of sense. And that's why they're the machine that they are. And I highly recommend it doesn't matter if you're a startup or if you're a scale up.
It's a good book. But let's go with you. Ralphie.
Next, there was a book that I read recently. I think that just changed my whole thinking on what it is that we do as a business, and I think any business that I run after this, because obviously, I mean, at.
A certain point, I'm gonna get tired of doing this.
Probably we are looking at some point to obviously exit and do a transaction. But the idea of how to make a brand legendary, I've always sort of thought like it's this black box, like how does Steve Jobs actually do it? How does Chick fil A do it? How does like Volvo do it? How does Lego do it? And a book that I read is make Your Brand Legendary by Scott Wozniak, not a very well known author. But we've patterned our whole business around this whole idea that every great business has four components to it, and the component number one component is operational excellence. The next one is memorable moments that your customers and clients talk about and like they get this great feeling about you. The next part is custom deep customer insights, which is he refers to as sort of flash surveys like every now and then, just out of the blue, not like an NPS score that you send once a year or whatever it happens to be, but just deep customer insights. It's all layered by this whole sort of uh you know, track all the way around it, which is your leadership team, which enables all of this to come together. And one of his best examples of this is how Chick fil A operates. Chick fil A operates not because you know they are the largest. McDonald's is obviously is the largest. But why does Chick fil A on an individual franchise gross revenue double the average revenue of McDonald's. It's because they have these raving fans, because they have a customer experience engine. They have you know, that person who comes out with the eye pad and takes your order. Every time you say thank you, they say in my pleasure.
You know, every part of it.
They actually measure on their their videos instead of like how much order how much your average order value is, how many smiles they have per hour. It's this complete and utter focus on the client and the customer itself. And that's what makes a company like Chick fil A so great. And our whole process right now is like our ole leadership team read this book and we're like, we want to become this in the agency space, and it's just it's somewhat obvious, but it's taking us away from where the agency space has been in the past. And for me, it's a book that I highly recommend that I think it can be applied to any business. And it just blew me away how simple it is not easy to implement. The operational excellence part is just all about just making sure that what you deliver is consistently great, not sometimes great, sometimes not so great. But the whole idea of it is probably one of the best ideas I've read in the last year.
Yeah, so one of the hardest lessons I learned as an entrepreneur.
Or right, Neil, go for it.
I know you talked a lot of.
Leadership really is everything in the organization.
Like, if you're trying to solve a problem and grow your company, there's someone that's probably already.
Done it in your space. And I thought, you know, years and years ago, I raised.
Venture capital and the vcs would tell me your only job is to higher amazing talent, right, And it took me a long time for to click. And then I had the model of let me just go find people who work for my competitors, and they continually got promotions because everyone says they're amazing, but people who got continual promotions, it showed that the company felt they were valuable at least in most cases. And then if they worked for a few of your competitors and they kept getting promotions, there's a good chance they really are valuable. And if they are a cultural fit for you, they can do wonders. And that's what's caused my organization to grow nicely over the last six years. But what I learned in more recent times is as you scale organization to five hundred thousand plus employees, you know, we're getting close to hitting a thousand soon, or we'll be there. I think in a few months, is my guess, Like within three four months. When you start looking at numbers like that. You know what I learned from some of my friends who've sold their companies to really large organizations like MasterCard and like people who have like fifty thousand employees one hundred thousand employees. You know, I had friend who soul takes centric et cetera. You're not going to actually get all rock stars. You don't need amazing you don't need an amazing team of one hundred thousand people to build a big organization. What you need is amazing leaders at the top that can train and instill values and create systems and processes that bring up your C players and turn them into B players and turn your B players into A players, et cetera. That's how you build a big organization. You're never going to have an organization filled with all amazing people. Your leaders should be people who know how to solve problems and have already done it in your industry before, because there's less chance that they'll make less mistakes and they'll be more successful in your organization. But they also need to be able to create systems and processes to bring up the D players and make them C players, and make the C players B players, and make your B players A players.
And that's how you create a big company.
Neil, we talked about this before, but there's a you're really lucky at the end of the day, like people think, oh, we can have like eighty percent A players, and there's really good you're maybe like players like most of the times fifteen percent because a lot of times the D players are new graduates from college and they're just learning.
They're not going to be a rock starter.
That knows how to add ten million in revenue when they just graduate college and they've never had a job.
D is not a bad mark, it's just where they are in their career.
And it's more so you need leaders in the organization to bring all of those people up and make sure they're heard and you're there for them, versus just like whatever, they'll figure out, they're another cog in the wheel. Right that that model, there's just another cog in the wheel doesn't work. You need people to bring others up.
Sell you what click that moment and throw it on your LinkedIn. Let's see what reactions you get. Well, I look, I think that's a good That's a good place for us to wrap. But guys, this collapse been really good. I definitely would like to do more in the future. Hopefully we can do them in person. But Ralph, what's the best way for people to find you online? Same for u cosm.
You go first, Ralph, Yeah, you could probably follow me on LinkedIn. I guess that's probably the best place to follow me. But of course Tier eleven dot com t I E R spell out eleven. The guy who has the Tier eleven with the number is holding me ransom for hundreds of thousands of dollars for that ur L. So anyway, so Tier eleven dot com Ralph Burns, you can find me there are LinkedIn.
I read why he paid five hundred grand for one domain that readirects to him.
I realized what I was talking to her. It was like, no price is high enough.
Yeah, I was about to say, you're talking to the wrong guys. They can find me socially at cost some awesom all socials. The one that I engage with the most is Facebook because I'm old, all.
Right, So my social chandles are all eric O s I U so eric Osiue Agency, single Brain and everyone. Go subscribe to marketing School. Listeners, go subscribe to Perpetual Traffic and perpetual Traffic graic listeners.
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