Key Moments
GaryVee x Poppi Co-Founder: The Only Marketing Video You Need To Watch | Fiserv w/ Allison Ellsworth
GaryVeeKey Moments
Big brands are failing by clinging to outdated marketing playbooks from 1991, while social media offers the real chance for attention and connection, but only if you're willing to be scrappy and authentic.
Key Insights
95% of marketing campaigns are expensive failures, a reality that private equity often struggles to grasp, viewing marketing as a cost rather than a value proposition.
Poppi spent nine months on brand development after their Shark Tank deal, resulting in a 180-page brand book, demonstrating a deep commitment to understanding their identity.
Gary Vee's business, VaynerMedia, was founded on the principle of understanding Fortune 500 companies, not to emulate them, but to either disrupt, buy into, or sell to them.
Large companies often fail because they focus on 'potential reach' rather than 'actualized reach,' assuming their message lands when consumers are mostly on their phones.
Entrepreneurs are advised to allocate 20% of their budget to opportunistic cultural moments, as demonstrated by Poppi's rapid response to viral trends like the 'Amay Papaya' meme.
Replying to every DM and comment received on social media for four years was a core tactic that fueled Gary Vee's early growth and community building.
The disease of potential reach versus actualized reach
The core problem plaguing large corporations is their reliance on marketing strategies developed in 1991, which fail to account for the fragmented media landscape and the pervasive use of smartphones. These outdated playbooks, often based on concepts from books like 'How Brands Grow,' prioritize reaching a large audience through channels like banner ads, TV commercials, and billboards, assuming this 'potential reach' equates to actual engagement. However, in a world where consumers are constantly on their phones, this reach is often unrealized. Gary Vee argues that this disconnect is the primary reason for the failure of many Fortune 500 companies. He emphasizes that 'attention' is the true currency, and it is currently found at scale on social media platforms. This obsession with attention over sheer reach is what drives successful modern marketing and brand building, a principle that Poppi's co-founder, Allison Ellsworth, also champions.
Branding as an emotional connection, not just sales
For brands to truly 'bite,' they must move beyond purely transactional sales and focus on building an emotional connection with their consumers. Allison Ellsworth highlights that while a great product is foundational, it's the brand that creates lasting resonance. Poppi invested nine months post-Shark Tank into a rigorous brand exercise, resulting in an 180-page brand book. This detailed approach allowed them to define their identity as 'soda for the next generation,' offering 'freedom to love soda again.' They consciously chose a visual identity with colorful, juicy cans to evoke the nostalgic taste of soda, differentiating themselves from the 'clean girl aesthetic' of sparkling waters. This strategic branding ensured that even when retailers were unsure where to place them, Poppi remained true to its core identity, much like Nike's 'Just Do It' slogan focuses on emotion rather than just footwear.
The crucial role of product quality in marketing
Gary Vee stresses that even the most brilliant marketing efforts are futile if the underlying product is poor. He illustrates this by noting that VaynerMedia sometimes advises clients that they would be better off not working with them, specifically when product quality is lacking. He states, 'all that good marketing does against a bad product is speeding up everyone knowing that your product sucks.' This underlines that marketing and branding are only two pieces of a larger equation, and they must be supported by a fundamentally sound product. Entrepreneurs must ensure their offering is robust before investing heavily in promotion, as a flawed product will inevitably lead to failure, regardless of marketing prowess.
Day trading attention: a strategy born from scarcity
Gary Vee draws a direct line from his experience managing his father's liquor store in the late 90s to today's marketing landscape, coining the term 'day trading attention.' Without capital or credit, he grew the business from $3.8 million to $60 million by strategically leveraging emerging, underpriced marketing channels. This included being an early adopter of websites, email marketing, Google AdWords, and eventually social media. Today, this translates to mastering platforms like TikTok, YouTube Shorts, and even the potential of AI interfaces like ChatGPT. The principle remains the same: identify where attention is currently inexpensive and abundant, and aggressively capture it. This requires continuous learning and adaptation to new platforms and technologies, a scrappier approach often learned out of necessity by small businesses.
The 80/20 rule for brand relevance and cultural moments
Poppi's success in a crowded beverage market is partly attributed to their strategic use of an '80/20 rule' for marketing. They allocate 80% of their budget and planning towards structured campaigns tied to cultural moments or retail calendars. However, they deliberately reserve 20% for opportunistic engagement with rapidly developing cultural trends. An example of this is their swift response to the 'Amay Papaya' meme, which they translated into a flavor and saw viral success within three months. This flexibility allowed them to capitalize on moments like 'Love Island' or celebrity endorsements at Lakers games, even when logistical challenges existed, demonstrating a willingness to take calculated risks and invest in culturally relevant opportunities, even without immediate ROI certainty.
Big brands vs. scrappy startups: a different game
Gary Vee strongly advises entrepreneurs aiming for growth from zero to 100 million to avoid mirroring the strategies of large corporations. He argues that big brands' successes are often tied to scale, massive budgets, and established distribution, elements unavailable to startups. The internal workings of large companies are frequently hampered by politics, outdated systems, and bonuses tied to metrics like TV reach, making them inherently less agile. While understanding what large companies need might inform an exit strategy, their operational playbooks are not directly applicable. Vee suggests that startups can learn more from scrappier entities, even drawing a provocative parallel to learning from a 'drug dealer' due to their resourcefulness and adaptability. He specifically warns against investing in startups founded by individuals transitioning directly from large corporations like P&G or PepsiCo, as they often bring 'corporate thinking' to a startup game, which is a fundamental mismatch.
Community as the ultimate brand-building engine
Gary Vee asserts that community is the future of marketing and business building, emphasizing that small businesses must actively engage with their audience. He likens community building to working out: it requires consistent effort and cannot be achieved through mere talk or reading. He criticizes businesses that fail to reply to comments and DMs, highlighting this as a major missed opportunity. Drawing a parallel to Coca-Cola's classic formula recall, where 20,000 loyal customers' feedback forced a change, Vee argues that cultivating just 20,000 'crazy people' devoted to a brand can be incredibly powerful. His own success is partly attributed to replying to every single person who tweeted at him for four years. The tactical advice is clear: reply to every DM and comment to foster genuine connection and loyalty.
Humility and growth: the entrepreneur's secret weapon
When asked for one piece of advice, Allison Ellsworth emphasizes that entrepreneurs should 'not let your ego get in the way of growth.' She equates this to Gary Vee's 'never get high on your own supply' philosophy. Humility, she explains, is not a contradiction to confidence but rather a vital component of sustained success. Successful entrepreneurs, she suggests, understand their superpowers and build teams to fill their gaps, rather than trying to do everything themselves or clinging to a CEO title. This willingness to delegate and learn from others is crucial. Gary Vee adds that humility is an unseen weapon that allows for balance with confidence. The message is that while bold action and knowing your audience are key to creating memorable brands, continuous humility and a focus on growth over ego are fundamental to long-term success.
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Building a Brand That Bites: Key Strategies
Practical takeaways from this episode
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Common Questions
'Branding that bites' refers to marketing and branding efforts that are highly effective and generate significant impact. It's crucial because effective branding connects emotionally with consumers, builds trust, and is often more impactful than sales alone, leading to sustainable business growth.
Topics
Mentioned in this video
A reality television show where entrepreneurs pitch their business ideas to investors. Allison Ellsworth appeared on the show and later returned as a guest shark.
A reality TV show used as an example of a cultural moment Poppy leveraged for a viral marketing campaign.
A popular online video game. Poppy partnered with Fortnite streamers to reach a male audience.
The speaker known for his marketing expertise and advice on social media, attention, and community building. Co-founder of Vayner Media.
A celebrity whose presence courtside at a Lakers game was leveraged in Poppy's marketing.
Co-founder of Poppy, a beverage brand. She shares insights on brand building, marketing, and scaling a business.
A sportswear company used as an example of strong branding, particularly its 'Just Do It' slogan which connects emotionally with consumers.
A major beverage company, cited for its 'New Coke' failure and the importance of listening to its customer community.
A soda brand founded by Allison Ellsworth, known for its branding and marketing strategies.
A large beverage corporation that acquired Poppy. Mentioned in the context of large budgets and portfolio strategy.
A grocery store chain in Florida where Poppy eventually gained distribution after a buyer's daughter recommended it.
A large beverage corporation. Poppy was acquired by PepsiCo. Discussed in terms of large budgets and corporate thinking.
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