Summary of The Underground Marketing Strategy Getting Billions of Views (Right Now)

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00:00:00 - 01:00:00

The video showcases an entrepreneur's journey from being CMO of a toy company to launching his toy brand, Pudgy Penguins, capitalizing on the NFT business. By leveraging mass retail distribution and industry knowledge, they secured deals with major retailers like Walmart within a short timeframe, successfully transitioning into the physical toy market. The speaker emphasizes the power of influencer partnerships, viral marketing hooks, and strategic expansion plans, highlighting the importance of offline and digital marketing tactics in achieving significant sales growth. Additionally, the discussion delves into the success of their Gel Blaster brand , marketing strategies involving Amazon and Walmart collaborations, and the application of innovative approaches like leveraging Giphy for brand exposure. The entrepreneur's focus on community building, digital presence, and embracing web3 technologies underscores their commitment to evolving and expanding their brands.

00:00:00 In this section, the entrepreneur shares the story of how he transitioned from being the CMO of a successful toy company to launching his own toy brand, Pudgy Penguins. The idea stemmed from his belief in the brand potential of Pudgy Penguins, acquired as an NFT business, and recognizing the popular appeal of penguins as a character. Leveraging his expertise in mass retail distribution and understanding of the toy industry, he licensed the NFTs, manufactured and distributed the toys, and secured a deal with major retailers like Walmart within 13-14 months of launching the brand. The success of Pudgy Penguins in the NFT space provided a proof of concept for building a valuable next-generation brand in the physical toy market.
00:05:00 In this section, the speaker recalls a memorable time when their project was featured in the New York Times and gained a lot of attention, leading to a positive community atmosphere. They discuss the success of their project, Gel Blaster, at Walmart, attributing it to a combination of mass distribution, marketing, and influencer placement. The strategy involved showcasing the unique features of Gel Blaster, such as being environmentally friendly and fun to use. The speaker's experience with finding winning products and leveraging their powerful gifting list, acquired through previous ventures like Von Dutch, helped drive the success of Gel Blaster. The speaker emphasizes the importance of product quality, branding, and influencer partnerships in achieving success in the marketing and deal-making aspects of their business endeavors.
00:10:00 In this section, the speaker discusses their underground marketing strategy of leveraging gifting to build a network effect for brands. They explain how they built a gifting list by partnering with influencers and leveraging brands like Von Dutch to reach a wider audience. By sending free merchandise to celebrities and influencers, they were able to run targeted ads to their followers, resulting in a significant boost in conversions. This strategy allowed them to cheat their way into building a massive network and gain billions of views for their brands.
00:15:00 In this section, the speaker discusses their marketing strategy involving the Orbeez challenge, where people would engage in playful shooting activities with Orbeez guns. While the challenge initially gained popularity, it spiraled out of control when some individuals took it too far by using gel blasters resembling AK-47s, leading to negative outcomes. Despite this, the Orbeez challenge boosted sales and attracted the attention of major retailers like Walmart through strategic placement and effective marketing tactics. The speaker also highlights the challenges of dealing with large purchase orders from retailers like Walmart, where payment delays can strain cash flow and require additional financing to meet demands. The speaker emphasizes the importance of creating viral marketing hooks that generate views and engagement, ultimately driving interest and sales for the product.
00:20:00 In this section, the speaker discusses a marketing strategy involving hiring actors or people to spread the brand message across meme pages, creating a self-fulfilling prophecy that leads to product promotion. They explain how the brand evolved from creating Orbeez products to licensing deals like the Halo Needler, highlighting the success of their Gel Blaster brand through innovative product development based on existing concepts. The conversation then shifts to the launch of Pudgy Penguins as an IP brand, with the speaker sharing insights on the initial investment process and the decision to start with toys as the first product line, driven by market conditions and strategic planning.
00:25:00 In this section, the speaker discusses the importance of attending trade shows like licensing Expo and toy conventions to secure licensing deals and distribution channels for their products. They emphasize the significance of building relationships and making deals behind the scenes to grow the business, even if it means spending significant amounts of money on booth setups for events. The strategy of starting with high-end collectibles and expanding into mass-market toys is also highlighted, showing a deliberate approach to catering to a wide range of customers. Through their efforts in brand awareness at events like ComicCon and securing deals with major retailers like Walmart, the speaker illustrates the strategic growth trajectory of their business.
00:30:00 In this section, the speaker discusses a successful marketing strategy involving launching a toy on Amazon, becoming the top-selling toy, and catching Walmart's attention. Despite initial rejection, Walmart contacted them for a last-minute Q4 collaboration, granting them prime retail space in stores. The challenge then became selling out stock in 2,000 stores within 90 days, focusing on areas with low sales without direct conversion metrics. Leveraging a loyal online community and strategic marketing efforts like radio, TV, and local ads, the team navigated the unique challenge of reaching customers in rural areas and meeting the sales target, showcasing the complexity and importance of offline marketing tactics in addition to digital strategies.
00:35:00 In this section, the speaker talks about leveraging underground marketing strategies to boost sales on Amazon by syncing the launch of a new toy to trigger algorithmic dominance and drive network effects through scarcity. They also discuss their successful expansion to 3,500 stores, highlighting the importance of timing, assortment, and leveraging proof of concept for growth. Furthermore, the speaker delves into their marketing tactics, such as using characters on Instagram Reels and dominating the platform Giphy for meme distribution, creating an omnipresent touchpoint for their brand. They explain how billions of Giphy views translate to significant brand exposure and credibility, even though it may not directly convert to sales, showcasing their digital and crypto-native approach to marketing.
00:40:00 In this section, the speaker discusses how animated images indexed as gifs on platforms like Giphy can be a powerful marketing tool, especially in the character business. They highlight the success of companies in Asia like Line and Kakao, whose multi-billion-dollar empires started with viral stickers and gifts. The speaker emphasizes that using gifs and stickers can be a meaningful and impactful marketing spend, particularly for building familiarity with a character in the IP business. They explain that maximizing shares on platforms like Instagram is crucial for driving conversions, as shares lead users to engage with content and ultimately spend money within the app's ecosystem. The speaker also touches on the strategy of creating characters and cute stories to encourage sharing and engagement, highlighting the importance of the share as a valuable conversion metric.
00:45:00 In this section, the speaker discusses the importance of team in creating and sharing content, highlighting the role of the creative team member, Peter Cook, in developing content that resonates with audiences. The conversation shifts towards the NFT side of marketing, emphasizing the value of community engagement and the concept of aligned financial incentives in driving success. The speaker shares the journey of pudgy penguins NFTs and how limited supply and increasing demand have led to significant price appreciation. Despite initial skepticism around NFTs, the speaker emphasizes the cultural significance and value of digital collectibles like pudgy penguins in the web3 space, attracting a diverse and intelligent holder base that is reshaping internet interactions.
00:50:00 In this section, the conversation delves into the complexities of navigating market conditions and building a successful brand in the digital space. The focus shifts to the game Pudgy World and the upcoming mobile game aimed at leveraging the IP brand's digital presence. The discussion also touches on the importance of fostering a thriving community, while teasing new arcade games and partnerships with well-known establishments like Castle parks and Chuck-E-Cheeses. Additionally, the conversation explores the transition towards making the IP brand more digital native and the potential for incorporating web 3 technology to bridge the gap between physical and digital worlds.
00:55:00 In this section, the speaker discusses the importance of maintaining a core base of supporters for their various companies, including Pudgy Penguins and Overpass. They explain how Overpass licenses products on-chain, leading to a seamless and transparent process that could potentially expand into a significant business. The speaker also mentions Cube Labs' contribution to the blockchain abstract ecosystem, aiming to simplify the blockchain experience for end consumers by abstracting away complexities like fees and restrictions. They emphasize the focus on user interface (UI) to make blockchain technology more user-friendly, envisioning a future where consumers are unaware they are interacting with blockchain technology. The discussion shifts towards their goal of integrating physical and digital experiences through gaming, aiming to create a seamless loop of buying toys, scanning QR codes, customizing characters, and engaging in gameplay within the Pudgy world.

01:00:00 - 01:10:00

The video discusses innovative marketing strategies focused on incorporating blockchain technology, NFTs, and AI to enhance user experiences and incentivize creators. It highlights the potential of Abstract Rails to empower various blockchain applications, emphasizing borderless liquidity and censorship resistance. The speakers delve into the importance of peer-to-peer deployment through blockchain, the concept of composability, and combining AI with blockchain technology, aiming to tokenize intangible assets. The interview concludes with admiration for the entrepreneur's future impact and gratitude for their insightful marketing strategies addressing important industry challenges.

01:00:00 In this section, the speaker discusses a scenario where purchasing a physical toy at Walmart can lead to unlocking NFTs in a game, multiplying the value of the initial purchase. They explain how this concept will be applied in Pudgy World, a game similar to Club Penguin, where players can scan QR codes to access characters and traits. The speaker also introduces Abstract Rails, a platform aiming to empower various blockchain applications, starting with a Twitch-meets-Google Play Store app. They highlight the potential for Abstract to incentivize creators and streamline transactions, ultimately envisioning it as the backbone for consumer applications in the future. With Abstract, developers can provide unique incentives and experiences, such as borderless liquidity and censorship resistance, that traditional platforms like Steam may not offer, leading to a more seamless and rewarding user experience.
01:05:00 In this section, the speakers discuss the importance of peer-to-peer deployment of in-game assets through blockchain technology, highlighting the concept of composability and how it can enhance user experience. They touch on the difference between centralized and decentralized blockchains like Solana and Ethereum, noting the need for control and consumer experience. The conversation shifts towards the potential of combining AI and blockchain technology, especially in tokenization to make intangible things tangible, like cultural coins or influence. There is excitement about creating a platform for creators that leverages these advancements, aiming to make a significant impact within the industry.
01:10:00 In this section, the interviewer expresses admiration for the entrepreneur, predicting that he will become one of the most well-known and respected entrepreneurs of their time. There is a brief discussion about AI and Worldcoin, with the entrepreneur seeing potential for NFTs to help combat AI misinformation. The conversation concludes with gratitude and appreciation for the entrepreneur's insightful marketing strategies and the important problems they are solving.