Digital Advertising Fundamentals: MarketStar/Pinterest Sales Champion Competition Training – Part 1
>> All right. John, do we need to do a sound check online, are we good? Okay. Great. Hey, just give me a real quick idea of by raise of hands, sales students? Marketing? Then what other different disciplines would be in here? Good. >> Parks and Recreation. >> Wow. That's pretty cool. All right. Anyone else? >> Art. >> Art. >> Management and Permission Systems. >> Nice. Yeah? >> Psychology. >> Psychology. Wow, you're going to analyze me this whole time, aren't you? All right.
Hey, listen, I'm grateful to be here. Had the opportunity to do this last year as well. I want to thank Dr. Bone, John Ambrose, Tanya Davis, and the entire University for what they've done for us, working with MarketStar, working with Pinterest and so forth. Our sales competition last year was the first time that we had done this. As with anything that you do the first time, we learned a lot from it and I think we'll do better this time around, but we'll probably learn from this time as well. So for those of you who are competing I look forward to you coming and helping us to make that even better, for those of you who aren't, perhaps you'll consider that for the next year because we want to continue to grow this and make it that much better.
So Dr. Bone, how long do I need to take so I can leave time for questions and everything else, and more than anything else before people just get up and leave? >> Around 15. >> Okay. >> You manage how you want to do that. >> That's great. Then welcome to all of those who are online, that maybe one, there maybe more than one. I think we're going to have you just send any questions that you are going to have and John will yell those out. But what I want to do for the next little while is talk to you all about digital media, advertising, sales, marketing, everything else, and try to bring some real world experience as well. What I hope that this will do will give you some information for those who are competing that will help you with that.
We're going to follow up with a presentation from the Pinterest team specifically to the ad units on Pinterest and how they sell them and so forth, and another presentation about creating proposals and selling which many of you I know have a pretty good feel for anyway. What I really want you to know is that this needs to be interactive, if I'm up here til 4:15 and you're falling asleep, then I haven't done what I really want to do. I want it to be high-energy, I want you to enjoy it, I want you to ask a lot of questions.
There's more material than I can get through in this time, so if I skip through a couple of slides to get to some meaty things, just understand that. I'm happy to share the deck with you because I know that there's nothing you'd rather do than read this tonight when you get ready to go to bed. So that said, how many of you have ever worked anything from an advertising standpoint? Done anything in advertising, either graphics design or sales, or whatever? Interesting. Was this all in the Valley here? Anybody outside the Valley? Where? >> Las Vegas in Florida. >> Las Vegas. Remind me your name because I know we had you last year. >> Kent Nelson. >> Kent. Las Vegas in Florida. >> Yeah. >> Okay. >> I got my first degree in Florida and then moved to Las Vegas and I've been working at advertising. >> Nice. Others outside the Valley here? How about inside the Valley? Tell me some of the businesses you've done advertising for in the Valley here. Anyone? >> Most in biotech, Thermo Fisher Scientific.
>> Thermo Fisher. On the way in. >> Quansys Biosciences, GE Healthcare. >> Nice. Anyone else? Go ahead. >> A small auto mechanic shop. >> Cool. So maybe social media and so forth? >> Social media and then designing a few just things like printing material [inaudible]. >> That's pretty cool. How about you? >> Done some radio ads for the city's. >> Nice. Were you the voice talent? >> I wasn't, a few of longer there and then they recruited somebody better. >> That's cool. All right. So what I want to do is help you understand what my principle is, which is that two things when it comes to business and when it comes to advertising, nothing happens till someone sells something. If you're not a sales major, if that's not what you want to do, I get that, that's fine.
There are a lot of other things out there, but I'm going to say that from a sales standpoint, most anything that happens happens because something was sold. The laptop you have that you're taking notes on someone's sold that to you. The clothes you have you bought at the store or whatever the case may be, the building gets sold if you will from donors, everything else. Sales really is the lifeblood of business, that's what keeps businesses going and helps them to grow.
So for those of you who are sales majors I want you to think about that with regards to digital advertising and digital media. For those of you in marketing or other disciplines I want you to think about, you don't need to sell it, but how would you position it? How would you use digital advertising, digital media advertising in general to help to move a product, to educate, to drive interests in awareness, and ultimately to ring the cash register? Because if you are going to go into any business discipline, if you go into a business that doesn't have any sales, you're not there very long.
Businesses have to have sales because without that they don't survive. So as we go through some of this like I said please throw up some questions. But three things that I want to make sure that you feel comfortable with is, this is just foundational. There's a lot of things that we're going to go really quickly through and you can't possibly feel really great after this that you just know everything and that's okay.
Get a base level. But if you have other questions afterwards or if you want to send me an email and I can answer something, I'm happy to do that. We're going to give you a lot of terminology. The ad tech world is full of acronyms and so forth. What I love about it is it's very dynamic, it's changing all the time. But because of that it's hard to get your arms around everything because it is changing all the time. So I'll give you a little bit of that. Then finally just want you to understand the technology. So who was the MIS right there, MIS. So the technologies and so forth, not just how do you sell it or how do you position it, but a little bit about the tech behind that. But this is one of my favorite quotes, I'm an advertising guy and I believe this. This is from a guy named as you see there, Howard Luck Gossage, who was an advertising executive in the '50s.
He simply said, "Listen, folks don't read anything that doesn't interest them, but sometimes it's an ad that interests them." So I'm going to ask you by a raise of hands, how many of you absolutely love being served ads online and loved commercial breaks? How many of you love ads? Raise your hand. I get it. Ads are not something that we love. But let's be completely honest. Whether or not you like the NFL, why do you watch the Super Bowl? Let's be honest. Maybe it's your team that's playing and if it isn't and you still want to watch it for that, but I guarantee you you're watching the ads. So you might say that you don't love ads, I get that, and I'm not asking you to change that. What I'm saying to you is this, ads can be content just as anything else. If you read the news, if you watch TV, if you do anything that's entertainment, and that can be just as entertaining.
In fact it should do something that touches you to give you a message about a product or cause you to have interests in it or want to buy it or whatever. So what I hope you'll consider is that I'm not talking about bad ads, I'm not talking about bombarding people and making them feel like it's really creepy, what I'm talking about is getting the right ad to the right person at the right time. So let me give you an example. I worked for six years that Digital Media, which is the parent company of KSL.com, Deseretnews.com, Utah.com. I guarantee everyone of you has been on at least one of the sites probably. When you've been there you've seen ads. You go to KSL.com for the classifieds, it's free, you don't pay a thing. What's the currency? It's your eyeballs.
The trade-off is you can come to our site and sell and buy things for free, but in return we want to put an ad in front of you. Let me ask you this by raising hands. How many of you if ads went away tomorrow would pay 999 a month to go to KSL.com to look at items to buy? You're saying in effect, "I'm not willing to pay 999, but I'll give you my attention instead." So if you're saying I don't like ads, I get it. I'm not saying that I need you to love adds. What I'm seeing is that's a currency. You've chosen to forego pain so that you can actually be able to see something on TV, in a newspaper, or in a magazine or something like that in return for your attention. So let me ask you this then. If you are on castle.com and you have to see an ad, wouldn't you rather see an ad that speaks to you? Wouldn't you rather see an ad that makes sense for who you are and what you have interest in and so forth? So that's the idea and the job that ads have to do, which is if you're going to have an ad in front of you anyway, why not make it to be something that's relevant? So you heard that I'm a cyclist and I love writing motors every year from Logan here.
So when I see an ad I'd much rather see something about a new bike, helmet, shoes, or something like that, than maybe something that I'm not all that really great at which is fishing. Fishing pole for me probably isn't going to do it. I'm not going to have all that much interest in it, I'm going to go right past it. But there's someone in here who probably does like fishing and would like to see that and wouldn't want to see my bicycle ad, because we all have our different interests and so forth. That's what advertising is there to do, is to help you to have the opportunity to see products and so forth that makes sense to you and when they don't that's why among other things that you don't like ads.
Now sometimes you don't like ads because they also insult your intelligence. I've seen some of those ads as well. But how many times have you seen an ad that's really fun or that you enjoyed and it's been something that's been at least worthwhile for, a little bit of time in [inaudible] , just like the Super Bowl. So this is something that I want you to take a look at that happened in 2016.
Prior to 2016 TV was king. TV commanded more advertising dollars than any other medium. But as you see here, 71.29-72.09, just barely in 2016 digital surpassed TV for the most dollars from an advertising standpoint, and from here on out it's going to continue to be that way. In fact this year mobile itself is going to do more than TV will do. Now mobile is clearly the biggest part of digital, but understand that newspaper, TV, radio, all of those, it's digital now. That's where the dollars are coming from. So that's why we think it's really cool when we do this sales competition with Utah State and Pinterest, because that's what's going to happen in the future, is all going to be about digital.
If you're interested in advertising, you're interested in sales, digital is a great place to be. Now I'm not saying for anybody who is listening that that doesn't mean that TV, or a newspaper, or radio or other type of ads aren't a good place to be, it's just that they won't grow the same way that digital will. So if you want to be where the growth is you're going to want to be with digital.
So let me ask this question, and I'm not above giving out some gifts to get some answers. I've brought some nice MarketStar swag here. So we're going to go for a MarketStar bottle. You see a question here and you've got four answers. Someone who would raise their hand and go out on a limb and tell me what you think the answer is. What have you got? >> C, 88.5. >> C, 88.5. That answer's locked. Anybody want to guess anything else? You've got three other chances and there's still a water bottle there. What do you got? >> I'll go with B. >> Your going to go B. All right. Because it's a bottle.
You want it. Go ahead. >> I'm going to go with D. >> You're going to go D, and I guess you're going to go A or you're out. One or the other. So here's what it looks like. The answer is C. Tell me your name. >> [inaudible]. >> Hey, [inaudible] congratulations. >> Thank you. >> So absolutely by far, you can see here that Americans are online. We know that. We know that we spend more time on our phones than on our TVs, than on desktops, than on anything else. There's more time consumed on a phone than any other thing that we do with regard to entertainment and news and so forth.
Why is that? >> Accessibility. >> Accessibility, that's great. We're going to talk a little bit more about mobile and desktop and everything else. I don't even want you to tell me how old you all are because I know you're way young, and it just is going to make me feel bad. But some of you may remember some of these. A lot of these brands up here are still around and we interact with them, but take a look at that timeline, 1994, I actually worked for AOL which was back then called America Online, when they acquired Netscape and the first Netscape browser, and it was on dial-up. I know you guys don't even know what it is, you do, but let's be honest.
It was slow as it can be, but it was the coolest thing in the world because it gave us access to something that we had never been able to see before. All the way to the other end of Snap. Snap completely gives you different access to different people and to all of the things that you can do on your story and discover and so forth. In between all of that, there's been a lot of really great things that have happened. Most every one of those you see there, you don't pay for. You pay for a couple, you pay for iTunes, you may pay for Amazon music. You could now pay for YouTube. In the past, you couldn't pay for YouTube, you just got it for free. So there's been a lot of innovation that's going on and you can see some of the growth of Internet users, two billion users in 2010. High-speed Internet took a long time to get there. You guys don't even think about high-speed Internet anymore, that's just a given.
If there is no Wi-Fi, you're like ''I'm out of here." When you go to Starbucks, and they've got a Wi-Fi that's great, or McDonald's, or somebody who's got free Internet access. You're not going to a place that doesn't have it. I go to Target and I'm getting a free Wi-Fi. So that's part of what keeps things going with regard to advertising, is that you have these products that you're accessing and in return for your attention, you're giving your eyeballs so that you can have the opportunity to hopefully see a good ad, one that will speak to you. Don't worry about all of these here, that's a lot of noise and everything else, I just want to call out three things here that I've pointed out here for you. This is where I'm going to sound really old and you guys, I get it, 1993, it took 10 minutes to download one song and 30 minutes at low-speed, one song. Nobody even downloads them anymore, we just do Apple Music, we do Spotify, we don't even need all this music anymore, we don't care.
Over here, a low-quality movie would take 28 hours at full speed or 3-5 days at low speed. Netflix, it's immediate. Amazon Prime, they're immediate. Things have changed completely because of this technology and that's part of what you have an opportunity to consider with regard to advertising and everything else that goes on. We won't worry about the rest here, but check this one out. In 2011, seven years ago, AOL still added 200,000 dial-up customers. Seven years ago. Where do you suppose most of that comes from? Let me just tell you because I'm not asking the question well. It comes from rural areas, where broadband maybe isn't there, way out in North Dakota in the plains there where maybe you still have dial-up. There are still people using dial-up because that's the way that they get to the Internet. So take a look at this. It's pretty daunting, but that is the growth of, as you see here, worldwide of Internet users from 1995-2017.
If you were a business owner and that were the sale stats of your company, would you be pleased? Absolutely. That's incredible growth. I did some calculations here just really quick and all I'd ask you to do is, look at that very last column on the right-hand side there, the time that it took from one step to the next. I just went in deciles from 10 percent, 20, 30, 40, 50. What do you notice there? As you're going from 10 to 20 to 30, what's happening? It's taking less time. It's taking less time as the growth is going on there, which means it's becoming exponential. Now, at some point, we get to the point where everybody's on. So that's a little bit different. So let's talk a little bit about the formats of advertising and how that works. I want to get some terminology in front of you that it probably makes sense, but I just want to make sure that you think this through. So when we talk in digital advertising about desktop, it's both laptop and desktop, but most of the time it's just a laptop.
We rarely use desktops anymore. Most or everybody in here is either taking notes is probably on a laptop or maybe on a phone or tablet. Mobile is phone and tablet. But are there other options that you can receive ads on digitally, what else? >> Watch. >> Right there. Right, my Apple watch. What else? You've got connected TVs. You've got Amazon Alexa, which is really cool. They now are starting to have ads even on Alexa. Anywhere you can put an ad, people are going to put an ad. But there's all different kinds of ways that you can reach consumers. It's not just about the right message, it's about getting them at the right time. That's going to be on all these different devices when it makes the most sense. Do you think that ads on an Apple watch do all that well? Dan, you're shaking your head no, why? >> Well, I just feel like it's so easy to just put my wrist down with the intentions go on.
>> Right. So you don't have me as a captive audience, and how often do I look at my watch? I have to be looking at the right time to see the ad and even if I do, it's tiny. It's not going to do a lot for me versus on a big screen TV when I might see something on a commercial break when I'm watching a program. So another test, and we'll do another water bottle here. So we've got four answers there. I want you to tell me what you think gets the greatest amount of its traffic, 80 percent of its traffic, or where the traffic comes from? Finance, social media, retail, and entertainment. Who's going to give me an answer? What you got. >> I want to go with D. >> You want to go D, entertainment? That's a good one. That one's out. Someone else, what do you got? >> B, social media. >> Social media, B.
Anyone got an A or a C? >> C. >> C. >> A. >> A, there we go. Nice. So 80 percent social media, 80 percent from mobile, tell me why? Tell me who that was. See, that's how quickly I forgot it. Thank you. Tell me your name. >> Morgan. >> Morgan. Why does mobile get 80 percent traffic from social media? Go ahead. >> Well, there's several of the social media platforms that are optimized for mobile like Instagram.
It's basically make mobile, you can do a lot of things, and that's true for a lot of the different >> Okay. So I love that. When's the last time you took a photo and said, "I can't wait to get home and put this on Instagram"? It's just not how it happens. As you said, it's optimized for that format. So social is very good in driving traffic for mobile and mobile gets its traffic from social and so forth. But there are other options. Entertainment, retail, finances are all things you also do on your phone. I'm an America First member, I'm doing my banking on my phone all the time. I'm sure you all are doing something like that as well.
But social media is absolutely driven by mobile. A couple of things on this it's somewhat of an eye chart, but let me just point out a few things here. Again, in the 18 range, so the orange is mobile-only, the light-ish blue is multi-platform, meaning mobile and desktop and so forth, and then desktop-only. Someone point out a couple of things that you quickly glean from this about who uses what, and what their ages are, and if it's growing or shrinking. Just tell me what you find there when you look at that. What do you see? Go. >> People are using everything. >> Okay. >> We are not isolating just to one device, especially that 35-54. They're connected with all sorts of different platforms, so it's not a one size fits all. >> So first of all I love that. A lot of folks don't necessarily think that through. If you think the desktop and laptop you don't need to optimize for your advertisements and your sales and so forth, you're wrong.
Right there in the middle. What else? I think there was a hand over here. Somebody here. Go ahead. >> Just the younger population has more mobile-only and more multi-platforms comparing it to the old population which is heavier than desktop. >> Absolutely. So if you just look dark blue versus dark blue, very little desktop, a lot more desktop. But the flip is also the same if you look at mobile versus mobile.
It's over here a lot more and a lot less there. Just keep that in mind because not only do you need to serve the right ad to the right person at the right time, you need to do it on the right platform as well. There are ads that don't make a lot of sense even on Instagram, because you're flipping through your feeds so fast, that's one of the most difficult things to do, is to try to get somebody's attention when they're going through a news feed.
But you can do it. So you've got to think through how these things get done. So think about a couple of things real quick. By the way if you don't have a desktop, that's okay. Desktop and laptop. That's why I wanted to get the terminology out there. Think about what you access on desktop that's different on mobile. Somebody tell me something that you do more on desktop or laptop than you would do on mobile, that you would access. Here we go. >> I respond to e-mails on my desktop while I will read most of them on my mobile. >> That's cool. Because why? >> Because I like to read it right away, then I want to make sure that I have it typed, and grammar, and everything on desktop. >> That's really cool. So you're consuming content this way and then you're pushing out the other way based on what makes most sense for you.
You want to read it and get it right now, but then I want to make sure the punctuation and spelling everything else is great and stuff like that. What else? Someone else? Yeah. >> Streaming like Netflix, Hulu. >> You actually do more on desktop? >> Yeah. On my laptop. >> Wow, that's cool. Why not on a phone? >> Usually if I'm going to sit down and watch an episode or something, I'm going to be at my house anyway, and it's going to be a bigger screen, better sound. >> That right there is a key for you to think about when you think about formats, when you think about the size of screen and everything else.
Phone is great, but if I'm at home and I've got broadband, so it's not about data plan anyway, I might as well get it on a bigger screen. But could you have Netflix on your TV at home? >> Absolutely. Yeah. >> But you're still choosing your laptop. Why? >> Maybe someone else is on the TV streaming something else. >> That's cool. Yeah. Please. >> Facebook. I don't like the app and so I never had it. >> That's cool. So for you it's about you like the aesthetic, or you like the usage, or something about the desktop version of Facebook more than the app? >> There's so much content on Facebook, there's all smash and it's hard to see and navigate. >> Tell me your name. >> Veronica. >> Veronica. If you're a marketer, you're an advertiser and you want to target Veronica on Facebook and you create the ad for mobile, you're never going to get her.
Literally, you don't even have the app? >> No. >> You're never going to get her. You think I'm looking for a female in this age demographic, we'll just call it really young because it is. If I'm looking for a female and a really young demographic and I want to get her on Facebook and so I'm going to create a mobile ad, I'm going to miss someone. You're thinking, "You know what? Kids are only on mobile, let's not do desktop." Well obviously it's wrong. So the next one is, what are the types of things that you use your browser for on your phone? Not on app. What are the things you would actually go to a browser for that you don't open it up for. I get that Safari and Chrome are apps, I get that, but let's call them browsers in this case because I'm talking about not a self-contained app, and maybe you don't.
What do you open up your browser for on your phone? Please. >> I generally get on to look up information like Wikipedia. >> Are you going directly to Wikipedia or are you googling it? >> Often I'll google. >> That's cool. Someone over here. Yeah? >> I'll look for restaurants on it. I'll just google different restaurants near me. >> All right. Yeah? >> I actually do use it to get on social media, but only to look at things, not to interact. I only interact on my desktop. >> So that's somewhat similar here. So you actually aren't using the app on your phone to interact with it, you just go on browser, and then when you want to interact with it then it's on your laptop. That's really cool. There was one more over here. Yeah. >> I google store hours and phone numbers for any business that I want to go to because it's better on Google than it is on the actual store's page.
>> Isn't that true? But now let's ask you this; when you're googling, how many of you aren't even doing this or this anymore? What are you doing? >> [inaudible]. >> Google. It's voice. You're doing the voice search as well. Then the last one. If you have a tablet, and many of you don't, and that's okay, maybe some of you do, what do you use it for? Go ahead. >> Netflix. >> Do you use it for anything else but Netflix? >> Well, it's the only thing I can use at this point. I used to use it for Facebook, just because it was easier. >> So it's basically a mini TV? >> Yeah. It is a mini TV. >> Anyone else? Yeah. >> Note-taking. >> Note-taking. Do you handwrite the notes, do you type them? Anyone else? Yeah. >> I use my Kindle to read books on. >> All right. So think about that, very specific use cases. So if you think to yourself I want to target somebody on a tablet and if it's not an app that's ad supported, Netflix, you have to pay for, although they're going to start putting ads in as well, and in this case Kindle sometimes would have an ad.
>> They have ads, before you open Kindle and on their pages, on your browsing page. >> All right. I'm going to speed up because I can see that I'm already going a little too slow because you all are interacting really well. But I want you to just look at this. You may have seen this before. This is the corollary to that earlier graph. Take a look at based on ages what the top eight apps are that are being used.
This is by unique visitors, so this is by traffic. This is not by page views, this is just by unique people. Notice that YouTube, it's all across there, Facebook is all across there. What do you find interesting in this? Throw at anything you see there that's interesting. What insights do you glean from this. Please. >> The interesting thing is for ages 55 and up, they actually have a news app where the other three don't have. >> I love that. So let's go with that for a second. So Apple News for these old 55 guys, I'm getting there eventually, but I'm not quite there. So what you're saying is 18-24, 25-34, 35-54, don't care about news, they don't need news? Go ahead. >> Well, that's actually wrong. They just get their news through different sources. >> Right. So they're getting news through Facebook, maybe YouTube, maybe Insta, all different ways.
>> Also Snapchat. >> Snap as well. Someone else give me one more insight that you get from this? Then I'll tell you one if you don't get this one. Go ahead. >> So what I find interesting is I have a younger brother who's obviously younger than 18, and I know Facebook is not even on that list for him. He's all about YouTube, he's always watching videos, so it's interesting to see how different it can be going back [inaudible] >> I love that. Here's a really interesting thing. My youngest daughter just graduated from high-school. She's 18, and so she got off Facebook for one reason, anybody know why? Because the parents were on it. She got off Facebook because it wasn't cool anymore, because adults were on it, so she went to Snap, actually she went to Twitter, and then from Twitter to Snap and so forth. So that's really interesting based on age and so forth.
Here's the other thing I want you to look at real quickly. If I go vertically here, 1, 2, 3, all of them by Google. One, 2 Insta is not there, there's three by Facebook. Understand this, 66 percent of all digital advertising goes through two players, Google and Facebook. Sixty-six percent of $325 billion in digital advertising goes through those two. Now, 33 percent of $335 billion, still lot of money. Let's call it a $100 billion. But those to take more than anyone else. So we won't spend a lot of time on this.
I just want you to be thinking about this. You've got Alexa, you've got your Apple watch, at home I've got a Nest thermostat. We've got all different types of ways that we're connected to the Internet and things that can help us with that. But it's not going to take long before any one of those could have an ad on it. Any one of those. But it's got to be the right place, the right time, the right opportunity, and so forth. So real quick quote here that is from a little while ago, but what she's saying is this, "We can't do things the way we've always done them from an advertising standpoint.
If we were still trying to do advertising on a laptop like we did in a newspaper, it wouldn't work." You guys are young, but when the Internet really took off, it literally looked like a newspaper on the screen, Dr. Bone. It was laid out the same, and when we start talking about display ads, that's why display ads are rectangles, because the internet followed newspapers.
When you look in your newspaper or magazine, rectangles and squares, nothing has changed when it comes to display, because they simply followed the way that newspaper works. So I love to show this slide. This is a huge one in the digital advertising industry. Everybody knows, these are called the Lunascapes. Everybody knows them. There's one for video and display, native advertising and so forth, but they're all set out the same way. Here's an advertiser or a marketer on this end, and here's a consumer they're trying to reach on the other end. Every one of those logos is a company in between those that does something to facilitate it. Either it's a publisher that actually has ad space, or an ad tech company that does measurement or whatever. Look at that, and tell me you don't want to work in a place like that. That's pretty cool. It's crazy. There is so much opportunity when it comes to something like this, but that's also a real problem too, because everything is so fragmented, as we said.
So let's start talking about digital advertising. Actually this is just straight up advertising, but we can think from a digital standpoint. Brands are looking to sell their product. So we'll say these brands here, I would venture that maybe except one, maybe except Oscar Mayer, everybody in here knows all the rest. Maybe you haven't had an Oscar Mayer hot dog or whatever, but you would know the rest. Those brands are very well known and they're looking to sell products. There are a lot of different ways that can happen. There's consumers down here, and so oftentimes they go through ad agencies. Now, I've called one out there, Omnicom Group with the little orange dotted circle there, because that's the parent company of Marketstar. It's one of the world's largest advertising holding companies, and they bought Marketstar in the early 2000s. So that's what's really cool for us, is we get to actually be part of this really great advertising machine that's doing what it's doing.
But there's five different holding companies there that have a lot of agencies underneath them. A lot of different ways that we can get to these consumers, media of all kind, and we're trying to reach all different folks, male, female, young, old, interested in cycling, interested in fishing, whatever the case may be. But everyone's basically trying to do this. I have a product, you have a need, let's connect the dots. That's really what sales is all about. Sales is simply you have a solution for someone who has a need, and if you start selling and they don't have the need, don't worry about it. Go find someone who does have the need. Not everyone has a need for your product. That's fine. Here's a different way to look at it. You'll hear a lot of times what's called the buy-side and the sell-side. It's simply this, sell-side are the folks who have the inventory, they've got the slots to sell the ads, they sell those and the advertisers or the agencies, they buy them.
Buy-side, sell-side, should be pretty simple to understand that. But these are the folks who have inventory. So KSL.com. You've all been on that. KSL.com has plenty of ad space, and they sell that ad space. When we first started blowing out KSL and growing it, we went to RC Willey. Everyone knows RC Willey? Most of us. We said, "Hey, you guys really need to be on KSL.com." They were doing TV, they're doing newspaper, everything else, and here's what they said, "No way. We sell new stuff. I don't want to be on KSL.com, that's used stuff." It's not bad. As a seller, how do you overcome that? Someone gives me a way you would overcome that. I sell new stuff that's a whole bunch of old stuff. Go. >> Those people that are selling old stuff might be able to buy those new products. >> Boom. You need to get a job right now in advertising.
If you didn't hear that, that's the right answer. Just because it's used product RC Willey, someone who is selling a couch is probably doing what? Buying a new. Someone who's looking for a used couch might want two for a couple of $100 more on a special buy your new couch, instead of that use couch. Nice answer. So it doesn't really matter what it is as far as the need of the consumer and what the product is. You've got folks who sell stuff and folks who are facilitating that, and the idea is, again, like you've heard me say over and over and over.
It's getting the right ad to the right person at the right time, because that's what the Super Bowl is for you. It's the right time, it's the right idea there. No one ever says, "I hate Super Bowl ads." Everybody loves them. They might be dumb, but then you're like, "Oh my gosh, I got to sit through four minutes of commercials on TV." Because that's not necessarily the right ad at the right time for the right person. So here's another one. Let's see if we've got a different one here. How about a notebook? Nice Marketstar notebook. Someone tell me, go out on a limb, who's got the first guess? Go.
>> I'll go with B. >> B, 100 million. >> D. >> Sorry. D, 1.5 billion. D is closed out. Anyone else? Go. >> I'll do B. >> You'll do B. All right. D and B. >> C. >> C. Who's got A? 1.5 billion plus. Anybody know what the mission statement of Google was when it started? Organize the world's information. With 1.5 billion sites that makes sense. It makes sense with that. So you're BMW and there's 1.5 billion sites out there. In the US we have 330 million people, how in the world do you get that done? All these different sites, and all these different people, and I need to sell a BMW to this guy or this girl, it gets pretty difficult if you think about. That's why I love the challenge of it. So you know all of these publishers or at least some of them, but sometimes you don't think about some of these as actually being publishers. In the olden days publishers was like newspaper or magazines. Publisher means anybody who is publishing news, or information, or entertainment, or anything else, and some of these you may not even think of necessarily as publishers, but they are.
Did you know that you can actually be on a DMV site and you can get an ad? Not every DMV site, some of them, no. Apple, is Apple a publisher? Absolutely. Now maybe they aren't doing most of their business via ads, but they are charging for their product. If you like Apple music and you don't want to pay, what do you have to put up with? >> An ad. >> An ad. If you like Spotify and you don't want to pay, what do you have to put up with? Pandora, same thing. It's just a quid pro quo of, "I've got something you want. You are someone that I want, and let's make a transaction here. Give me your attention and I'll let you listen to my songs for free before I show you an ad every four songs." That's just how it goes. So there's publishers of all kinds out there.
Most of the time we think about these news in editorial folks as being publishers, everyone up here is a publisher of some kind. Just so you know what this one is, I've got a calculator app on my phone that's ad-supported. How many of you when you get a chance to download the free app or the paid-up, which one do you download? >> The free app. >> Why? >> It is free. >> It is free. $0.99 or free, it's still free. I want to introduce a new term for you here in just a minute. But if I go back to this and these 1.5 billion sites, then we take a look at this and this is a concept called The long tail.
You may have heard of this before, maybe yes, maybe no. How many of you know TED Talks? Chris Anderson who started TED Talks was a journalist with a company called Wired Magazine. Some of you may still read Wired Magazine. Back in the days it was HotWired and then it became Wired Magazine. Chris Anderson is the one who came up with the terminology for the long tail, and what it refers to is that whole long tail thing that way. If you look at this, CNN, NBC, BuzzFeed, WeatherBug, they get a lot of people coming but there's only a few of those sites.
Then there's a whole bunch of sites who get a few people coming. One of the perfect examples of the long tail that Chris Anderson brought out was Amazon early in the day. I know it's cool to buy Vinyl right now records, but not long ago records nobody's buying them. So if you wanted to buy a record and you went to a local music store, how good were your chances of finding the record that you wanted? But if you went to Amazon how good were your chances of finding it? Someone tell me why. >> More sellers. >> More sellers. That's absolutely part of it. There are more sellers on Amazon than that one records store, it's absolutely, great. Go ahead. >> The physical store of limited storage space, they probably wouldn't carry it, but Amazon has lots of them.
>> That's perfect. If you are the record store owner and you can only put 300 records in your store you got to be selective. You're going to get the ones you think are going to sell. Maybe they're not even the ones you like, but they're the ones you think are going to sell. If you're Amazon and you've got these ginormous storage facilities all around the world, you store anything. That's where Amazon came in. Retail has to have a very limited amount of product that a whole bunch of people will buy, Amazon can have a whole bunch of products that only a few people will buy. That's a long tail. So here's how it fits within digital media. Don't mock my skills, this was me breaking it up. That's the same thing, I know that looks just like it. But just go with me. Within the long tail there's what's called the head, the torso, and the tail.
This holds true for any technology or anything else that you think of at scale, and if you think it through it would make a lot of sense. There are only a few sites that get a whole bunch of traffic, there are some that get some traffic, and then there are those that get a little traffic. So throw apps out for a minute, just throw out some names of websites that you all go to on a semi-frequent basis. >> Twitch. >> What's that? >> Twitch. >> Twitch. ESPN. >> CNN. >> CNN. KSL.com. >> Usu.edu. >> Usu.edu, I am there every day. So someone throw out a site that you go to, I don't know, every once in a great while, six months, nine months.
Think of a site that you only go to every once in a while. If you don't feel like you can say it, that's fine. Go. >> Apple.com. >> Apple.com. So you and I don't get along because I'm on Apple every frequent day. I'm an Apple fan boy. Why do you go to Apple every once in a while? >> When there is a new product release.
>> New product release. That's perfect. For you it would be done in the tail. For me it's like number 4 or there, because I'm that guy. Give me another one, another site that one of you goes to very infrequently but from time-to-time you do go. Go. >> KSL Classifieds. >> KSL Classifieds. You should try to make me feel better. Why do you go KSL Classifieds? >> I only go there when I'm looking to buy something. Looking for something specific. >> Looking for something specific. So you are actually not in the majority, most folks who go to KSL.com are just there to browse and browse.
So that's perfect. Do you go when you have a specific use case? I need new something for my something, or used something for my something, and then I go other than that I'm not there. Perfect. So that's what the long tail is all about. So if you are an advertiser where would you say your best bet is to place your ads? You got one to three choices, head, torso, or tail. If you're an advertiser where should you place your ads? >> Head. >> The head? Dr. Bone, tell me why I would want to go down in the tail. If I'm an advertiser why will I go down here? What's your thought? >> The intent is going to be great. Meaning they're looking for something specific individually. >> Dead on.
Let's say that Dick's Sporting Goods is up in here or somewhere because it's a lot of traffic. So that would be in the head and you'd be, "Okay. I'm going to go there to advertise for someone who's buying a fishing rod." That's pretty legit, Dick's Sporting Goods carrys fishing rods and people who go to Dick's Sporting Goods probably are interested in sporting goods. Well let's say that way down here on the tail you've got FlyFishingRods.com. You see what I'm saying? Where are you going to advertise? Because it's the intent. Unless you fat fingered what you typed into the browser. I've never been to FlyFishingRods.com, but probably it does exist, I've never there because I'm not a fisherman. But if you go there you're probably into fishing. So if I can throw my ad on here where Dick's Sporting Goods is, where maybe it's soccer, maybe it's campaign, maybe its fishing, maybe it's baseball, or whatever, I got a one in something chance, or I go all the way down here.
Now let me ask you this, if you're Dick's Sporting Goods or you're a Fly Fishing Rod or whatever I just said, who could charge more for their ad? You got it right. Tell me why this one. Why? >> Well again the intent is really high. If someone is going there there's probably a huge percent chance of actually getting a fishing rod. >> Okay. So it's all about the targeting. It's all about the targeted audience and who you're trying to reach. Dang, it's going way too fast. So we'll skip some of these because I want to get to some meat of some things here. Really quickly, because I want you to understand this.
In the advertising industry or in media in general, there's three buckets of media called earned, paid, and owned media. Make it really simple for you. Owned media is your own website. Let's say for just a moment that Utah State is not a university, it's a retailer. Any ads that show up on your site would be owned media. Or actually anything that shows up on your site would be owned media. But let's say that Utah State as a business, advertises on kasl.com, that's paid media. They're paying someone else for that media. So what do you think earned media would be? Go. When they publish any story about us. Boom. You got it. So when KASL publishes a story about whatever our business here as Utah State, we earned that.
We didn't pay for it. It wasn't on our site. So when you think about owned, earned, and paid media, you also have to think through which of those are going to be the ways that you could find users as well. So let me just walk through this with you. Four different use cases here, and there's one more that I threw in here that's called shared media.
I think you can figure out what that one is. So tell me what you think. Upper left-hand corner, this is some website with little dancing people and other things, Awkward Family Photos, Awkward Family Photos, and it's a [inaudible]. Is that paid, earned, owned, shared? [inaudible]. Why? It's not [inaudible] site. It's not [inaudible] site. It's a [inaudible] on someone else's site. Unless Awkward Family Photos gave it to them for free, which I don't think they did, they charged them, therefore, it's paid. Very good. So now I'm on starbucks.com and I've got an ad of my own for some new Frappuccino.
What is that? Owned. Owned. It's my site. I can run all day long. Why wouldn't I want to put a lot of ads on my own site. People are coming there. It's my site. So this one down here in the lower left-hand corner, Marisa said, "Hey, you ought to take a look at this Gerber Photo Search. What would you call that one? Shared. Shared. Then that's earned. When someone says something on Facebook about your brand, that's earned. What's the risk with earned media? You don't control it. What's that? You don't control it. You don't control it, so it might not be a good thing. I know you guys probably don't watch a lot of TV, but you might know Bill Gephardt.
Bill Gephardt used to come in and tear businesses apart. He'd be the one who'd come in and say, "Hey, how come you didn't give them the refund or whatever?" If you are on Gephardt, that is the worst possible earned media you could want because someone just laid you out in front of everyone else for a crook or whatever the case may be. So you've got to think that through. All right. So while we keep on going, let's talk a little bit about digital ads. There's a lot of different types of digital ads. You've seen a lot of these, and I'm just going to walk through a few of these for you.
You've seen search ads. Every time you go to Google, you see a search ad. But there are other places where you search. Because you're searching, someone wants to put an ad there. Why? Go. Because they have a target. They see you're searching for your product there. In the purchase funnel, I'm just learning about it, I just bought it. Where is search? It's way down. Because I'm actually typing in something I'm searching for. Maybe I'm not ready to buy it, but I've got the name of it or I've got some specifics about it, it's further down there.
So search is a really great way to do that. If you've spent any time on Google or any of the other search engines, you'll know that the paid ads go up here and the organic ads go down here. You don't have to pay for organic ads, but how do you become the very first listing in the organic ads? SEO, SEM. So SEO is going to get you there. If you don't think you pay to get their, you absolutely paid to get there because you've got to have a lot of things that get you there.
But those are the ads and these are the free ones, if you will. So just some things that I put together with some ads that I see on my laptop for bikes and for Teslas and for Delta and things like that. I see these ads all the time because I'm getting targeted for things that I like. You all would see different ads on your machines. But here's where it comes in. This way, the Internet looks like it does because it grew out of newspapers. You had newspaper publishers who said, wait, there's this really great thing called the Internet, and I want to reach all those folks out there, so let me pick up a newspaper and put it on the screen.
It's pretty much what it is. That's why it looks like this, and it hasn't changed all that much. Now you get a Facebook and some other things that are all about feeds, Facebook, Twitter, BuzzFeed, and so forth. But this was the model. Every one of those ads there has a name and it has a dimension and it has a different price and so forth. Which of those do you think would be the most expensive ad? Go. [inaudible]. This one here? Yeah. Why? It's taking up the most space. Because it's big. That's very good. Which do you think would be the least expensive? The top buttons. The top buttons right there? That's actually a very good thought and probably right. But what are the buttons have that the big ad doesn't have? [inaudible]. That's actually good. These wouldn't but that's okay. I didn't ask my question all that well, but two things. First, there's two of them. They're paired up together. They're actually working together. Notice it's different creative, they're working together, but they're right next to the brand's name.
They're right next to the New York Times, versus maybe down here with something that you weren't paying attention to. So the way you charge for ads has a lot of things that goes into that. It's not just about who you're trying to target or what they're looking for or whatever. You've got static ads, you've got rich media ads, you've got all different ads that are going to do all kinds of things.
You've got mobile ads. Would mobile ads cost less or more than a desktop ad? Depends. Depends. If you were paying by size, you and pay a lot for that one. Because that's pretty tiny. But if that is the right ad at the right person at the right time, you could charge a whole bunch for that, even more than that big one that was in the center of the other screen. Desktop and mobile, web and app, there's a lot of different ways to think about how you're going to advertise. Then you've got responsive ads as well.
So if you've noticed over the last several years, you'll go to a website and no matter what device you're on, it looks perfect. It's called responsive design. Then the ads get designed that same way as well. Because what used to happen was, you guys probably remember this, I'd be on my phone and I'd go to a website and it was actual desktop site and it was so tiny that could read anything. Terrible user experience. So now we've fixed that. We serve the ads are right way, no matter what the size of the screen is. Take just a minute on native advertising. Native advertising is also known as content advertising, sponsored advertising, and so forth. How many of you here have ever looked at BuzzFeed? I love BuzzFeed. It's really cool. BuzzFeed was really one of the originators of the strong native advertising push.
When you go to BuzzFeed, what do you normally get? What are they known for? Listicles. Articles that are lists, 10 things that do this and five things that do that and so forth. But a lot of times those are brought to you by an advertiser. They're sponsored by someone. I'll give you a perfect example. Carousell.com, we launched native advertising product and one of the advertisers that would work with us was Siegfried & Jensen, personal injury attorneys. When's the last time you ever had to call a personal injury attorney? Hopefully, not. But they advertised with us for one reason, which is what? When I do need a personal injury attorney, I know Siegfried & Jensen. So we did an article that was called 10 Ways To Know That You're a Utah Driver sponsored by Siegfried & Jensen. While there are car crashes, Utah driver, everything else, didn't want to say, "Hey, come to us when you need us?" It was just sponsored by Siegfried & Jensen.
But it went viral. It was an incredibly great article and they got to be attached with that. So when you look at native advertising, it's not always a banner. It could be searched. It could be in feed. It could be all these things. You've seen Twitter ads. You've seen Facebook ads. Those are native. They fit in with the format instead of standing out like those banner ads did, because they'd been designed for that site that they're on. For publishers and for advertisers and for users, there's benefits for every one of those, every one of those. Here's what they say about native advertising. You guys are millennials. I know you believe this way. You need to be authentic. You need to be authoritative. When you are doing native advertising, if it doesn't look authentic, people aren't in. It can't be something that doesn't fit within either the function or the format or what they're sponsoring. So let's talk about video. Where do you guys watch most your video? YouTube. What else? Netflix. Hulu. Hulu.
How many of you only watch video where it's free and don't pay for video. I'm not talking about your parents give you the Netflix code. Let's not talk about that. How many of you watch video, but you don't have to pay for it? So where do you watch video? Just YouTube videos. So just the free stuff. That's great. Hulu costs how much these days? [inaudible].
799. That's right. Yes, that's good. Netflix is 11.95, now, 13.95. >> Well, I don't want of the CBS and ABC. >> Those apps are great, right? They got commercials, but you've said "Fine, I'm going to go with this," right? So video has some great benefits and video has some really wonderful things it'll do. If you think about video, what does video do that a banner ad can't do? It's got sound, normally. It's got motion. Go ahead.
>> It's a form of entertainment as well. >> It's a form of entertainment, you can actually tell a story. One of the biggest, fastest-growing video ads, Google has what they call bumpers that are six seconds long. I would encourage you, when you have an opportunity, to Google "Google six seconds bumper ads", there's an article that's got like the top 25, and some of them are amazing. Six seconds ads, you are like, "No, you can't tell a story in six seconds." Absolutely, you can. There's a really great one from Under Armour.
There's a really great one from one of the dryer sheets, Downey. Six seconds, and they're getting the ad across versus 15-30, whatever the case may be. So video, absolutely, is good for that. You've got audio. So we actually sell ads at market start. We sell ads for Pandora. Pandora is a client of ours. We call small businesses and we say, "Hey, do you want to reach a user by a certain genre or certain demographic or whatever," and we sell ads.
So like this ad here, could have been us. You've got things like SoundHound that have ads now. This one, I put up here because you don't actually see an ad, but this is actually iHeartRadio, the streaming of the radio, so I'm going to hear a radio ad. They are still going to let me have it for free, but I'm going to have to listen to the radio ad because it's a live stream of the terrestrial radio. So lot of things you can do with audio. You can have audio with a banner, you can have video. Here's what's really cool about Pandora; it's like if a tree falls in the forest and no one there to hear it, right? So if I show an ad and no one sees it, does that do me any good? I'll be out in my garage working, and I've got my phone on the workbench that I'm over working on something, I'm listening to Pandora. Did you know that Pandora isn't serving any banner ads to me? The accelerometer says his phone is still, the screen is off, don't serve a banner ad.
Why would I serve a banner ad and charge an advertiser for something he's never going to see? I'll get the audio ads, but then I pick it up because I need to search for something real quick, boom, I get an ad. Tell me how you can do that in newspaper, in magazine, or anything else. That's why digital is so cool, the things that it can do. I want to leave a couple of minutes for questions. So I'm going to wrap up a couple things here real quick. We should do more time. This is where people say it's creepy.
How many of you have ever searched for a pair of shoes on Zappos? Then what happens for three weeks afterwards? You see that same pair of shoes everywhere you go. People think it's creepy. You know why I don't think it's creepy? Because if you're going to show me an ad and I search for the shoes, show me that ad versus something that I don't care about. Why it's creepy is, because some companies are good enough to be able to tie the purchase data together to know that two weeks ago actually bought the shoes and stopped showing me stupid shoes. But if you could stop showing me the shoes, but show me for a week, if I've searched for it, it makes perfect sense. So you're on a site, the site will put a cookie on your machine. Cookie is a simple term for a piece of code that goes on your machine. You come back later and reads the cookie, it says, "You saw my ad, but you haven't been on my site." So since you've seen my ad and you haven't been on my site, I know you've seen what I'm showing, and then it can actually still offer that offer to you.
Again, can't do that with traditional media. You can't do that with a billboard, right? That doesn't work. You drive pass the same billboard all the time, but you can't do something like this, so digital really has some really great power. We talked a little bit about how ads get priced. If I'm just buying everyone out there, it costs a lot less than if I'm buying males only because now, I've cut off half of society. So I've targeted, that cost me more, if I say male plus 18-54, that costs me even more. Male 18-54 in New Jersey costs me a whole bunch more. But if I am at Pizza Joint on a Friday night before pay-per-view boxing match, that's what I want to be. Because that's probably going to be a dude in New Jersey who is hungry. So why would I charge more and why wouldn't I, as an advertiser, pay more? We can target all different kinds of things. We can target people, we can target location, we can even target something's called look-alike.
Here's a really cool thing, if you're trying to reach a 100,000 users and this media site only has 75,000 users, they'll find you 25,000 users based on look-alike. So look for other people who act and behave like you do, and then they'll throw those in there. That doesn't necessarily mean that's going to be the right ones, but it's better than just saying, "Hey, spread my ad all over and find me 25,000 people." We can target a whole bunch of different ways how we do this.
We're not going to spend time on this because there's just too much and that's not going to get us there. So let me give you a last couple things, and then I want to leave it open for some questions. John, has anybody asked any question we need to worry about right now? >> Not yet. >> Okay, cool, because I don't know if there's anything out there. So all right, Ad Blocking. If you guys were ad blocking, it's cool, I get it. You do it. I get it. But if you stop and think about it, ad blocking is a symptom of a bigger problem, that is, really bad ads. People don't really mind ads if they're good ads. It's when I get followed by that pair of Zappos shoes or whatever the case may be. Ad blocking is an issue, it's flattening out. But if you stop and think about publishers out there who are selling ads and you're not paying for it, now, they don't get the money because they can't sell the ads. You get the content, they don't get anything for that as well.
I'm not saying that you shouldn't use ad blocker, that's up to you. What I'm saying is this, the industry has to do a better job of making it, so you don't mind watching ads in return for the content that you're getting, whatever that content may be. Add Fraud. There's a lot of that going on. There's a lot of what's called NHT, Non-Human Traffic. There's a lot of bots out there. Here's what'll happen, you go to a site, and you scroll down, and there's a video there, and the video starts to play. But this is maybe a really disreputable website. They've actually stacked three more videos behind it. You don't even see it, but it starts to play all of them, and an ad goes, and they charged four people for an ad for one person, that's ad fraud, happens quite a bit.
To the tune of somewhere between $5.5-$9.5 billion worth of advertising that's lost on an annual basis because of fraud, because of bots, because of things like that. So to wrap this up, I want to do two more real quick. So one of the things you have to do if you're going to sell media is know how to price it. There's a lot of different ways that it gets priced. So if you are not a math major, don't worry about it. It's okay, because it's pretty easy. One of the most frequent one is called cost per thousand, CPM. If you speak a latin language, Mille is 1,000. So cost per 1,000. So if I show 1,000 ads, I get charged for that 1,000 ads in, and in another 1,000, and in another 1,000. So here's how this works. If I'd been quoted a five-dollar CPM, cost per 1,000, and my ads are shown 5,000 times, someone tell me what that would cost? Say it again. >> Five dollars. >> Five dollars. Nice. But what is not getting there? >> Time. >> Yeah.
There you go. That's okay. Everybody when they first do this is like, wait, it doesn't make any sense. If I charge you five dollars for every thousand ads and I show you five ads, five dollars times five, 25 bucks. People have a hard time at first. Pretty soon, you're all good with it. Here's an easier one. Cost per click. You've quoted me a five dollar cost per click and I've got 500 clicks. Someone can do that one for me. Say it loud. Twenty five hundred. Let me see what we got in here. How about a pen? How about an orange pen? >> Sure. >> Twenty five hundred bucks. Every time someone clicks, I pay for it. Who bears the risk when it comes to a cost per click? If I sold the ad and no one clicks, do I get paid? I don't get paid. So the publisher bears a lot of risk on that. In this prior one, I show the ads and no matter, if there are no clicks, I get paid as a publisher, so the advertiser bears the risk.
There's risk on both sides here. But let's do one more. You know what? i don't think we're going to have time because we haven't set it up. So we won't worry about it. That's fine. Just know that there are a lot of different ways that ads get sold and a lot of ways that they're calculated. You do not have to be a math major. If you can make a calculator work, you're going to be fine. After you've done it for a while, it's going to work for you. So let me wrap up with this. A quote by Thomas Jefferson. I can't 100 percent certain say it's from him. Never mind. Thomas Jefferson. If you think about it, this happens all the time with businesses.
My advertising isn't working, so what I'm going to do? I'm going to stop advertising. It's the worst thing you could do. If your advertising isn't working, don't stop advertising, fix the advertising; start targeting the right people, start going to the right sites to buy your ads. The last thing you should do is to stop advertising because if the lifeblood of a company is sales and you don't have any advertising, you don't have any sales. So I'm going to end with this that I started with. I'm going to tell you this. You're going to leave here and go, "That dude was so full of it.
I hate ads. That was a big waste of my time," and that's okay. What I'm here to say to you is this; I love the media world, that's the world that I work in. I absolutely love it. I love everything about what I get to do when it comes to selling ads and everything else, because I do believe that people read what they're interested in and sometimes that's an ad. I do believe that nothing happens until someone sells something, and so the sales have to occur.
I'm a capitalist at heart. That's what businesses are for, is to sell something to solve a problem for someone, and to enrich the owners, and the workers, and everything else. I'm simply going to close with this; if you're participating in the Pinterest contest, I hope you kill it. I hope you have a really great time. If you're not, I hope you got something from this that was a value to you, and if you didn't either of those, you're not going to participate, you're not getting any value, just don't tell me. It's cool. We'll be all right. It's really okay. But any questions that I can answer with the last five minutes? It was not a lot of time to leave for questions. I'm sorry. The question is, can I get out of here? Please. Yeah. Go. >> So two kinds of stories I've seen recently. One was somebody was in an emergency situation and had to go to a hospital, and the first ad that was on Google Maps was actually twice as far because that hospital paid more.
Then another one was somebody's grandma was choking and they tried to watch a YouTube video on whatever and there was an ad first. So how do you think those things where these advertisers are paying to be first on the list or to show an ad before the video is impacting the users in potentially a life threatening situation? Is that going to affect things in the future? >> I love that question and I could go on and on. That's absolutely great. Let me try to answer it a couple of ways. End of 2016/2017, YouTube had an absolutely terrible time because it was found out that a whole bunch of ads were being shown next to ISIS beheading videos and so forth. One of the things that you always deal with in advertising is brand safety. Do I want my ad next to that content? So you want to make sure that your ad is only going to be seen where it should be seen.
I go back to my days at ksl.com and we would have stories about murder, we'd have stories about crashes and so forth, and there was an ad right there. Some people are like, I don't want to do that. I absolutely get that. The YouTube thing, yeah, YouTube is set up to make money and I'm not being flippant, I guess that means if someone's choking, YouTube is probably not the place to go because there's going to be an ad there. I don't know how to solve that. Then if I'm buying the ad and I paid more than the hospital right there and someone got that ad, I get all of that. I don't have a really great answer right now, but there's probably a way that we could do a better job of targeting. If I knew that you were watching that choking video because you needed to save someone, I could turn that off, but I just don't know that.
If I knew that you had blood gushing out your arm and you needed to get to a hospital, that's why, for me, targeting is so important. That's why knowing about who's there and what their intent is could help me to do what I need to do. Great question though. Someone else. Yeah. >> So I don't know if you can answer this question for me, but It seems to me that we could be having a conversation, pick up our mobile device, and there's an ad that relates to that conversation, yet the devices claim they are not listening to us. Are they? >> I can't tell you with certainty, but there's been enough in the news situations where someone said something to a spouse and it got played back. How can Alexa answer when you call her name if she's not always listening? My watch right now, if I say Siri.
She's going to wake up. They have to be always listening. That's something that might be an issue. Absolutely. What else? Go ahead, John. >> I have a question. So for those that are computer, there's a ton of media containers that you went on. What are some top principles that they need to understand to be successful? >> Number one, first and foremost, if you want to be successful with an advertiser, you have to understand what they're trying to do. What is success and how do they measure it? If this advertiser is trained to do branding, branding is different than direct response. Branding, I get my name out there and hope one day you'll think about me. Direct response, I need a call to action that will get you to buy something right now. A brand ad and a direct response ad are completely different. They're also measured differently. So number one is, make sure that you understand what the advertiser is trying to do and how they're going to measure success so that at the end of the campaign, it's as successful as possible.
Second of all, understand that the ad matters, the creative matters. If it's a branding ad, it can be nice, and pretty, and everything else. If it's a direct response ad, it's got to have a call to action that makes you do something; download now, call now, do this, do that. I've seen direct response ads that forgot the phone number, literally. Call now for 15 percent off, no phone number. That's a big mistake. So the creative really matters. Then the third thing is, there's many, but the third that comes to mind right this moment is make sure that you are getting absolutely brand safe media, that you aren't putting that ad, obviously, in Pinterest case, that's a perfect medium. But if you are working with other media companies, that that really great ad that you designed that does have a phone number doesn't show up next to some piece of content that you don't want to be associated with.
So those are a couple, John. Any last questions? It's 4:15. Listen, thanks, guys. I really appreciate it. You have been great. You asked some really great questions and if I can answer anything afterwards, please, but go do what you need to do. Thanks a lot..
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