Inside e.l.f. made, e.l.f. Beauty's new entertainment arm

Summary

The Digiday Podcast: Inside e.l.f. made, e.l.f. Beauty's New Entertainment Arm

Release Date: December 17, 2024
Host: Tim Peterson
Guest: Patrick O'Keefe, Head of Marketing at e.l.f. Beauty

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1. Industry Updates and Market Movements

Omnicom's Attempted Acquisition of IPG: The podcast begins with Tim Peterson and Kimiko McCoy discussing the significant industry news of Omnicom's planned acquisition of IPG. Tim highlights the historical context by referencing the failed Publicis-Omnicom merger over a decade ago, suggesting that the current deal might have a higher chance of success due to its structure and the evolving regulatory landscape.

Tim Peterson [03:20]: "Omnicom is going to acquire IPG in a deal that they hope to close by the end of next year... This one seems somewhat more likely because this appears to be less a merger of equals than The Publicis Omnicom 1 was billed to be."

Kimiko adds insight into the broader implications of this acquisition, pondering potential shifts in agency-client relationships and the impact on ad spending dynamics.

Warner Bros. Discovery's Restructuring: The conversation shifts to Warner Bros. Discovery's recent announcement to restructure by separating its TV networks from its streaming and studio operations. Kimiko expresses concern over the decline of linear television, emphasizing the ongoing transformation within the media landscape.

Kimiko McCoy [08:42]: "Not another nail in the coffin of a linear TV happening here... I have never seen a slower death than I'm seeing with linear television."

BuzzFeed's Divestiture of First We Feast: Another major update discussed is BuzzFeed's decision to sell off First We Feast, the publication behind Hot Ones. Tim attributes this move to BuzzFeed's need to address its substantial debt by focusing on high-margin businesses like programmatic advertising and affiliate marketing.

Tim Peterson [11:16]: "BuzzFeed is carrying a lot of debt and so it just needs to sell off some things in order to pay down its debts."

These discussions underscore a period of significant mergers, acquisitions, and divestitures within the media and advertising industries, highlighting the ongoing consolidation and strategic repositioning of major players.

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2. In-Depth Interview with Patrick O'Keefe: Launching Elfmade

Genesis of Elfmade: The core of the episode features an engaging conversation with Patrick O'Keefe, who oversees marketing at e.l.f. Beauty. Patrick delves into the creation and evolution of Elfmade, e.l.f. Beauty's newly established entertainment arm, born out of the brand's viral success on TikTok with the "Eyes, Lips, Face" song.

Patrick O'Keefe [15:25]: "...we created this viral song that really changed the trajectory of our business and our brand."

Expanding Entertainment Through Elfmade: Patrick explains how Elfmade serves as a strategic framework to amplify e.l.f. Beauty's presence in cultural conversations through various entertainment mediums, including music, gaming, movies, and sports. He highlights initiatives like the "Get Ready with Music" album, partnerships with platforms like Twitch and Roblox, and involvement in events such as the Indianapolis 500.

Patrick O'Keefe [17:44]: "Within the spirit of Elf Made... we launched Get Ready with music album with 13 incredibly talented people that were underserved."

Collaborations with Creative Agencies: A significant portion of the discussion focuses on e.l.f. Beauty's collaborative approach with multiple creative agencies to foster unique and impactful campaigns. Patrick emphasizes the importance of working with agencies that align with the brand's mission to shape culture and connect with diverse communities.

Patrick O'Keefe [21:17]: "...we like working with multiple agencies because each one brings a unique flavor to whatever project that we're creating."

Maintaining Brand Purpose Amidst Market Shifts: Patrick underscores the unwavering commitment to brand purpose, even in the face of potential backlash or changing market sentiments. He shares e.l.f. Beauty's stance on diversity and inclusion, citing their board's composition and campaigns aimed at empowering marginalized communities.

Patrick O'Keefe [28:38]: "We are a purpose-led brand... when you believe in something and you show up to a community and you do it in a way that connects with them deeply, they will rally with you like you've never seen before."

Measuring Success and Future Outlook: Discussing success metrics, Patrick outlines e.l.f. Beauty's comprehensive approach, which includes earned media value, social engagement, PR impressions, and overall campaign impact. Looking ahead, he shares plans to continue leveraging entertainment to drive brand growth and maintain cultural relevance.

Patrick O'Keefe [25:45]: "In the first six months of this year we had done 15 campaigns already... It's about making sure that we are providing something that leans into our purpose."

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3. Lessons Learned and Strategic Insights

Adapting to Rapid Cultural Shifts: Patrick highlights the importance of agility in marketing strategies, emphasizing that e.l.f. Beauty's ability to quickly respond to cultural trends has been pivotal in their success. The rapid rollout of diverse campaigns ensures sustained engagement and relevance.

Patrick O'Keefe [32:27]: "The lessons that we've learned is that we know that when we continue to find something that talks to the audience, it sparks a conversation, and then we learn more, and then we do more."

Quality Over Quantity: Emphasizing thoughtful and strategic content creation, Patrick notes that each campaign is meticulously planned to ensure it aligns with the brand's mission and resonates with the target audience.

Patrick O'Keefe [32:27]: "It's got to be quality. It's got to be thoughtful, it's got to be strategic, and it's got to be insightful."

Commitment to Diversity and Inclusion: The conversation reaffirms e.l.f. Beauty's dedication to fostering an inclusive brand environment, both internally and externally. This commitment not only defines their corporate culture but also enhances their connection with a diverse consumer base.

Patrick O'Keefe [28:38]: "We wanted to make sure that we did a call to action to challenge companies to become more centric with women and diversity."

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4. Conclusion

The episode concludes with Patrick O'Keefe expressing gratitude for the opportunity to discuss e.l.f. Beauty's innovative marketing strategies and the pivotal role of Elfmade in shaping the brand's future. The hosts thank Patrick for his insights, leaving listeners with a comprehensive understanding of how e.l.f. Beauty is leveraging entertainment to drive brand growth and cultural impact.

Kimiko McCoy [34:05]: "I have so appreciated you stopping by to gab with us here at the Digiday Podcast. Thank you so much for stopping by."

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Key Takeaways:

• Strategic Acquisitions: The media industry is witnessing significant mergers and acquisitions, impacting agency-client dynamics and market competition.

• Embracing Entertainment: e.l.f. Beauty's launch of Elfmade exemplifies the trend of brands creating in-house entertainment arms to foster deeper cultural connections.

• Purpose-Driven Marketing: Maintaining a strong brand purpose, especially regarding diversity and inclusion, remains crucial despite potential market pushback.

• Agility and Quality: Successful marketing in 2024 hinges on the ability to swiftly adapt to cultural trends while ensuring content quality and strategic alignment.

This episode provides valuable insights into the evolving landscape of brand marketing and the innovative approaches brands like e.l.f. Beauty are adopting to stay relevant and impactful in the digital age.

Transcript

[Tim Peterson]

Hello and welcome to the Digiday Podcast. My name is Tim Peterson. I'm the executive editor of video and audio at Digiday Media, and I am.

[Kimiko McCoy]

Kimiko McCoy, Senior Marketing Reporter here at Digiday.

[Tim Peterson]

Kimiko, welcome back. How was your time off?

[Kimiko McCoy]

You know, I spent the last week on a cruise ship. My first time on Virgin Voyages cannot speak highly enough of that. However, I don't know what the effect or if there is even a name for it where you still feel like you're on the boat after having disembarked quite literally days ago. I still feel like I'm rocking back and forth on the sea, but it was a good trip overall.

[Tim Peterson]

Okay. Yeah. Sealegs. Is that what that's called? Or is there, like, a more specific name for. I know what you're talking about, though. I don't. I've never experienced it. I don't spend much time on boats, but yeah. So where all did you go on the boat?

[Kimiko McCoy]

Good question. We went to the Dominican Republic, which. Fantastic. That was the first stop, and the second stop was in the Bahamas. So really, really nice to escape Atlanta's cold weather. I'll say, having grown up in Atlanta, hasn't been this cold in a while. So to be able to get away from that and experience warmer weather's snowbird behavior, if you will, I enjoyed it.

[Tim Peterson]

Yeah. What the hell is going on with the weather in the South? I was in Nashville for our programmatic marketing summit a couple weeks ago, and it was snowing when my flight got in.

[Kimiko McCoy]

Yeah. I don't know when. The first week of December, we had freezing temperatures. Like, I had to go early and go buy, like, whatever that little gizmo is to cover up, like, your outside hoses. And we had to, like, the HOA sent out notifications being like, please leave your water dripping all night lest your pipes burst and freeze. Last year, we had that in, like, January this week, first week of December. Now, I doubt Atlanta's seeing any Christmas snow this year, but it has been so no Snowmageddon hopefully for us here, but Lord have mercy, it's been cold. So I was glad to escape that.

[Tim Peterson]

Yeah. We're only halfway through the month and winter hasn't even officially started.

[Kimiko McCoy]

So, yeah, my bones are shaking.

[Tim Peterson]

Kimiko, you have the interview this week. Who'd you speak with?

[Kimiko McCoy]

I Talked to Patrick O'Keefe, who oversees marketing at Elf Beauty. It was really interesting conversation. I was glad to have the opportunity to chat, but I don't know if you remember when TikTok first started popping off, there was this Eyes, Lips, Face song that everybody was singing that was done by elf. From that, the company built out an entertainment arm, which is something that's interesting that you've seen more brands starting to do Coke, I think was the latest one to do that. So I talked about kind of building out that entertainment arm, what that meant, and the latest campaign that they've got happening with that entertainment arm and why do it as opposed to working with an external agency? So really interesting conversation, right?

[Tim Peterson]

Yeah. I mean, speaking of external agencies, I wonder if they'll be changing up their agency mix because one of the big stories of the past week, one of the stories that just keeps giving Digiday has been all over this across a bunch of our reporters and editors. But is the Omnicom IPG news when you were in the Bahamas or doctor did any of this catch your way?

[Kimiko McCoy]

I turned on the news for two seconds and then turned it quite literally off so fast. So please catch me up on what I've missed. It sounds like a lot. What's quite going on.

[Tim Peterson]

Yeah, it's funny because at this point it feels like, oh my God, that announcement feels like it's so long ago because I think there have been three or four other massive pieces of news since then, or big pieces of news and news cycles. So Omnicom is going to acquire IPG in a deal that they hope to close by the end of next year. Whether it's actually going to go through, we'll have to see because decade ago, a little over a decade ago, Publicis and Omnicom were set to merge. That didn't go through. This one seems somewhat more likely because this appears to be less a merger of equals than The Publicis Omnicom 1 was billed to be. Plus, I think the regulatory environment's a bit different too.

[Kimiko McCoy]

Yeah, that's a big thing here because I think mergers and acquisitions have been. I feel like it's shown up in the last couple of topics that we've done just bits and pieces. So this is a really big one. What are some of the bigger stories or bigger happenings that you guys expect to come out of that?

[Tim Peterson]

With Omnicom ipg, there's all kinds of questions like what does that do when it comes to the other big agencies? Because them coming together, they become bigger, at least by revenue, at least based on the clients they're able to hold onto. Then WPP and then publicist. So what response, if any, do Publicists and wpp, Dentsu, Horizon, Stagwell Just on down the list. What are the knock on effects there? Do any clients change hands? I think Johnson and Johnson just announced a review this week or they may have landed on a new agency this week. Will there be more of that kind of thing? And yeah, just. And then what does this do to ad spending going forward with. You have a lot of media budgets that'll then consolidate to one agency holding group which should make. Well, probably not next year's upfront because I don't think this will have closed in time for that. But definitely the following years and then possibly in time for next year's upfront deals to take effect. It'll be the story that keeps coming up.

[Kimiko McCoy]

I was about to say a lot of tea leaves to be read here. A lot of tea leaves. I know there was one other acquisition, this one I did happen to catch that was. Well, is not expected to go through anymore, which was Kroger and Albertsons. Did you guys catch that too?

[Tim Peterson]

Not an acquisition. Yeah, yeah, that one's not going to happen. So. Which I think as someone who eats food better for my grocery budget, probably because my concerned with that one is like what's that going to do to grocery prices? But that's also a big one when it comes to retail media because the whole one of the ideas there was oh, these two coming together. That's a lot of retail data coming together as well. And these two can then be on the level of a Walmart or a Target when it comes to retail media. Not so much anymore. I mean, you know the retail media space better than I do.

[Kimiko McCoy]

Yeah. That is, if nothing else, Lina Khan is going out with a bang here. I think when that first got up for debate, I don't know if anybody really expect to be able to go through because like you said, those are two pretty, pretty big behemoths of companies to be coming together. So I'm not surprised. And what that would have meant for the retail media landscape. Now don't get me wrong, every time that I talk to media buyers in this space, the prediction is that there's going to be some, we'll use the word consolidation in these spaces, but in reality there's going to be almost kind of like the streaming platforms where you've got the titans and then everybody else. And I think you're starting to see the through lines of that happening right now. Who's to say if it'll go through with the next, the next FTC chair? But you know, that's to be seen. And more, more tea leaves to be. To be read. Not for Kroger and Albertsons. That one's been ready.

[Tim Peterson]

Yeah, yeah, we'll see. And it's funny because, like, we have the Omnicom IPG coming together. But as in the case of Kroger Albertsons, it seems like the trend this past week has been more corporations coming apart in respects or not coming together because Kroger Albertsons, like we were just talking about. And then Warner Brothers Discovery announced that it's restructuring. And what it's going to do is take its TV networks, except for hbo, put them into one division, one side of the company, and then take its streaming and studio operations and put them in another side of the company. So separate those two. Which seems to be step one towards pulling a Comcast of just taking these traditional TV networks that are still pretty good business, but definitely not a growing business, and saying, okay, and now you go off on your own, we're not going to carry you anymore, kind of deal with the deterioration of those businesses.

[Kimiko McCoy]

Oh, man. Not another nail in the coffin of a linear TV happening here. I'm not going to lie. That makes me a little bit sad. But I mean, at the same time, you know, I feel like linear. I have never seen a slower death in anything that I've watched in all of my 32 years on this earth. I have never seen a slower death than I'm seeing with linear television. And this just seems to be, like I said, another nail in the coffin there.

[Tim Peterson]

And what's wild about this one is, I mean, we're Only less than three years since WarnerMedia and Discovery came together. And what this basically sets up is WarnerMedia effectively, like offloading its TV network so TBS, TNT, TruTV onto Discovery and then like pushing Discovery back off onto its own.

[Kimiko McCoy]

Yeah, I was gonna say.

[Tim Peterson]

And just keeping.

[Kimiko McCoy]

They've been doing the tango. They've been doing a dance here with these networks for a while now. So I wonder if this will be kind of like their final resting.

[Tim Peterson]

Yeah, we'll have to see because, I mean, we also. So this is. The restructuring isn't happening until middle of next year and they'll still be part of Warner Brothers Discovery at that time, at least looking at it now. But seems inevitable that WBD just spins off those into a separate company or preps them for a sale to some other company. But I mean, Comcast is spinning off its cable TV networks, sans Bravo, into its own company. Do these two traditional TV network companies end up coming together? Does someone come in and snatch up these businesses? Anyone Want. Does anyone want these businesses?

[Kimiko McCoy]

And that's the most TV business.

[Patrick O'Keefe]

Right.

[Tim Peterson]

So we'll have to see about that. But speaking of another company that has decided it doesn't want to be in a certain business, buzzfeed sold off First We Feast, you know, publication behind Hot Ones.

[Kimiko McCoy]

Yep, got it, got it, got it. Yeah, they've been pushing. I did see a couple of reports about this this morning. Just like in the pursuit of AI technologies and more AI content and whatnot that is being rearranged. But I don't know if AI is going to be able to solve that mystery of content. You got to got this feeding the beast mentality that's happening here. So it'll be interesting to see how that all kind of shakes out and how viewers go about that consumption.

[Tim Peterson]

Yeah, this one seems more about BuzzFeed is carrying a lot of debt and so it just needs to sell off some things in order to pay down its debts. That seems to be the primary motivation. But then Zaragoaglione, our senior media reporter, was reported on this deal and I think she cited buzzfeed's CFO saying that the company is focusing on high margin businesses going forward. Programmatic advertising, affiliate marketing, not so much the low margin businesses like content and First We Feast. It does a lot obviously with Hot Ones like we were mentioning, it also had some in person event things as part of complex con and those are lower margin businesses which if you're a media company that's struggling when it comes to costs and revenue, you probably don't want to be in low margin businesses right now.

[Kimiko McCoy]

Well, need to say a lot of changes happening here and I appreciate you for catching me up on all of said changes as I still continue to get my sea legs or land legs, I don't know how you say it.

[Tim Peterson]

Whatever it is. Yeah, hopefully, hopefully you get some stability. Although, God, I think we all could use some stability without the past week's been.

[Kimiko McCoy]

Agreed. Agreed. Art imitates life.

[Tim Peterson]

All right, let's get to the interview. Thanks Kimiko.

[Kimiko McCoy]

Thank you. Hello. Hello and welcome to the digital podcast. Pat. Happy to have you. How are you?

[Patrick O'Keefe]

I'm doing great. How about you? How are you doing?

[Kimiko McCoy]

Doing all right. Excited for this conversation today. I like to start all of my conversations with a fun question, so I'll do that here as well. That cool?

[Patrick O'Keefe]

That's very cool. Love it.

[Kimiko McCoy]

One of the things that I like to ask is kind of about social marketing trends, right? Given this is your purview of practice, I'd love to know personally what is one viral trend that you would either like to see killed off forever, never make a return, or brought back?

[Patrick O'Keefe]

Oh, wow. Okay. Viral trend. I am obsessed with everything that's happening on TikTok. The one that really stands out for me right now is, well, I say this, being in beauty. I love the trends around Get Ready With Me and I love how we have transformed Get Ready With Me with our new album called Get Ready With Music. So that inspires me to watch people getting ready and then when they're listening to music, how it just changed their mood.

[Kimiko McCoy]

Yeah. I would imagine Get Ready With Me are like the backbone of TikTok.

[Patrick O'Keefe]

Yeah, true. Right.

[Kimiko McCoy]

One of the parts of this conversation or that led to this conversation was elf's viral moment years ago with the Eyes, Lips Face. Right. Talk to me about kind of what. How that has impacted marketing strategy since then. You know, how have you guys been thinking about marketing since that viral moment?

[Patrick O'Keefe]

Elf. You know, I've been with Elf now for five years. Elf is, you know, vision is always to figure out how to shape culture, and entertainment is just one of the biggest megaphones and ways which we do to stimulate an impactful and meaningful conversation with our community. So Elf made. You know, when I think about what we've done, we have a. I remember when I interviewed with Corey five years ago, and she said, you know, we have a big responsibility. We have 15 million people that wake up to us every day. And, you know, when you stand for every eye, lip and face, you need to make sure that you're connecting with them on a level that relates back to what they. Who they are and what they stand for. So that's kind of how we've been showing up and we've been doing it and we feel good about it.

[Kimiko McCoy]

Well, actually, let me backtrack. I. I feel like everybody should have seen it at this point. But for those that didn't explain what the Eyes Look Face viral moment was, it blew up on TikTok. But tell us kind of what. What that was, what happened there.

[Patrick O'Keefe]

So there was a. There's. There was an insight that, you know, we've been around, we've been in business, and we've been in business for about 20 years, and people did not know what ELF stood for. And ELF stands for Eyes, Lips, face. And we thought, what better way to kind of communicate to a Gen z audience through TikTok than through sound and music? And that was a form of entertainment. So we created this viral song and it was really about. We partnered with a Grammy Award Winning writer and singer, and he created the song. And it was at the time, it was in 2019, in September, when people were just starting to figure out what TikTok was all about, There were some people that didn't believe that it was going to take off like it did. But we showed up loud and proud, and we created a viral song that. That really changed the trajectory of our business and our brand.

[Kimiko McCoy]

Yeah, I'd say one of the things that came out of that is Elf's entertainment arm, which is now Elfmade. Right. So walk me through kind of the process of having that viral moment and then saying, you know what? We've got to kind of crystallize this viral moment and recreate that magic with Elfmade.

[Patrick O'Keefe]

Yeah. So in full transparency in 2019, when we started really doing. Looking at how we were going to show up to a community when you have to address every eye, lip and face, we knew that we had to show up in a way that was very unique and different. And so if I take us through the journey of the years, of the different types of programs we've done or content we've created, it really has been from the lens of entertainment and to really entertain in a way that is really unique to the brand. We don't take ourselves too seriously. We love the fact that we can bring humor into our conversations that relates back to our community. And, you know, today what we've created with Elfmade is that it's in the spirit of. It's through music, it's through gaming, it's through movies, it's through sports. We have an immersive arm under the gaming arm, which is, you know, we have the Twitch channel as well as a Roblox channel. And we've really expanded that area to really connect with all different types of communities.

[Kimiko McCoy]

Walk me through kind of the nuts and bolts here. When did Elfmade officially launch and kind of what's. What falls under its purview? You listed a couple of them.

[Patrick O'Keefe]

Yeah. So within the spirit of Elf Made. And again, this is going to be an evolution. The world is changing every day, and we want to move at the speed of what we think is unique in culture. And so under the purview of what I oversee is really the music. And we launched Get Ready with music album with 13 incredibly talented people that were underserved. And what I mean by that, I mean, these are people that have been trying to make it in the music industry, and we wanted to help support them. We did a movie called Cosmetic Criminals. That's just one Example, our Super bowl commercials and other examples that I can share with you that have really kind of changed the way that we really communicate with our audience and our communities in the gaming world. I mentioned the immersive part, which is what we're doing on Twitch, Roblox and Discord in the world of sports. We showed up at the Indianapolis 500 and what we've done in that space and we can talk about that a little bit later. But also what we're doing with Billie Jean King and how she's changed conversations. So those are kind of some of the unique ways that we are showing up in the world of Elfmaid. In addition to that, you know, I do have artistry under this umbrella and artistry is really a way of form, of self expression. So we have a very talented makeup artist who is part of our family. And what she does every day is she helps us create rich content in a way that is in a form of entertainment.

[Kimiko McCoy]

Yeah, there's a handful of tentacles that I'm hearing here that I think kind of speak to why elfmate exists. But I'll let you tell me. Right. Talk to me a little bit about why it's important to have that internal in house elf owned entertainment arm.

[Patrick O'Keefe]

It's really important that we start to really create a framework as we're building out what we think is going to be the next chapter of our growth with the organization. So we knew that we were doing it, we wanted to formalize it. Like I said, we've been doing it for years and this was really a time and a place for us to formalize it. And I think the album was a perfect launch point for us to really create the framework and create the spirit behind what Elfmade could become.

[Kimiko McCoy]

Yeah, the framework is a part of it. I'm wondering if this is something that we'll see more brands start to do as kind of the pressure to create content becomes, you know, you've got to create a lot across several different platforms because entertainment is kind of the name of the game right now. We're, I would almost say, feeding the beast. Right. So talk to me about the importance of it from that perspective. You got the framework. Does that make it easier and faster to put that content out to keep folks engaged?

[Patrick O'Keefe]

Listen, it is getting harder and harder every day to really create content that is going to really impact a community of people that have different tastes and different likes. And we know the importance of doing that. We work with incredible agencies across the board and these agencies all bring something unique and different to the table. We like working with multiple agencies because each one brings a unique flavor to whatever project that we're creating. You know. So for example, you know, we work with the Shadows. They're a PR and a marketing agency. They created our super bowl commercial commercials. I should say the one with Jennifer Coolidge and the one with Judge Judge Judy. And those two were really again, a very unique way to approach the way that we wanted to connect with our community and those that maybe may not have known and now they do. Because we were on the largest platform out there. We work with Madwell, which is another creative agency and marketing agency. What they do really well is they create, they created the album. You know, they are bold disruptors with a kind heart. They take very unique ways to approach every eye, lip and face. So if you look at the album, it does reflect a lot of different genres. We work with 72 and Sunny. They've created the campaign we just did for Skin Skin Sins. We work with movers and shakers. They create a lot of rich content around what we do. Linked to TikTok and they created cosmetic criminals. So again, it's really finding those, those agencies that are really like minded like Elf and really want to be a part of cultural conversations and change the.

[Kimiko McCoy]

Conversation are these kind of the, you know, the agencies and obviously I'd imagine yourself as well on your team, but kind of the cooks that are in the kitchen when it comes to, you know, who's behind Elf Made it is.

[Patrick O'Keefe]

Definitely a broad team of people. I give a lot of credit to our brand team and to our creative teams and then the integrated marketing team and of course Corey, our CMO under her vision. But the reality is the trifecta of creative, brand and marketing teams working together really is the magic secret sauce of how we get stuff out there fast and in a timely matter to really address in the moment of what's happening in culture.

[Kimiko McCoy]

One quick technical question here. Cause I'd be curious to kind of see the trajectory. And you've already started talking about future plans here. So I see we've got next steps. But when was ELF made officially come together? Kind of so I can get a sense of what the growth has been since then.

[Patrick O'Keefe]

We officially launched when we launched the Get Ready With Music album in October. So I mean it hasn't been that long, so it's fairly new in the spirit of the shaping of the team and building out the team and really creating the formal structure, if you will, internally. So it's something that we've been talking about. Corey and I have been talking about for probably the last eight to 10 months. And it was just at this time when we knew that we were launching this album, this was the time to really put a stake in the ground and jump in and formalize the structure.

[Kimiko McCoy]

What are some of the, I guess, success metrics around this? Right. I would imagine that you're able to get that feedback a lot faster given this is partly an internal matter. But is it having many projects we put out or the views on these projects or how many album downloads or does it depend? Walk me through that.

[Patrick O'Keefe]

Yeah, no, it's very fair. So there's a couple ways that we continue to look at our marketing. We spend roughly 25% of our overall net sales on marketing and digital. And so there's been a big investment over the last five years to change and it really has changed the way that we are doing in the market. And we're a publicly traded company, so we are very careful about how we spend our dollars and how we make them efficient. So I had to put that caveat out there. But every campaign has its own unique metric, KPI. You know, our investors are trained to look at earned media value, which is through influencers and creators. And earned media value is one metric of how we show up and how we show up in ranking against our competitive set. We also look at, you know, how our. If it's a social campaign, to your point, it's around views, it's around engagement metrics. There are also KPIs to support from a PR impression. We get billions and billions of PR impressions. I can give you examples of those. But that's another way I give so much credit to the team internally around how it really is a 360 approach. We have a going to market team that's like a machine. When we come up with a concept, every channel gets involved and we really pull the teams together. And it's a fluid conversation where everyone gets to weigh in and have impact on whatever campaign it is. So they, everyone feels like they're a part of the success of the campaigns.

[Kimiko McCoy]

I would imagine that a big part of that success goes back to the idea that you mentioned of being able to move quickly with culture. Right. To have a viral marketing moment with the eyes lipped face and to crystallize that and build an arm out of it. Talk to me, I guess, about the importance of maintaining that momentum for your brand. Right. Keep people engaged, keep people interested and to always keep people coming back.

[Patrick O'Keefe]

Yeah, I mean in the first six months of this year we had done 15 campaigns already. And like I said, every campaign has something different. So whether it's something we've done on Roblox, on Twitch, whether it's something we've done in the spirit of sports, whether it's something we've done with entertainment, creating a movie, the super bowl commercial, the content that we're creating, you know, it could be for one unique channel, but everything has some sort of form of entertainment around it. And in the spirit of Elfmade, it's about making sure that we are providing something that leans into our purpose. You know, we are very purpose led. We are bold disruptors with a kind heart. We disrupt norms, we shape culture and we connect communities. That is the framework in which every project is looked at. And we want to make sure that the underserved are being served. So we're finding those places where people are not being served and we show up. And I would love to give an example, like one that really is near and dear to my heart is what we did with Katherine Legg at the Indy 500. And I've shared this story before, but there are 350,000 people that show up at the Indy 500 every year. 48% of them are women and young girls. And no one was talking to them. Goodyear was there. You had waste management. And then we show up with a DJ celebrating Katherine Legg, the only woman driver in the race, and the other nine that had followed. So we created a wall to support these incredible women. We showed up with a Twitch live stream streamed the entire time we were there. We had a Snap filter to support girls on Snapchat with, making them race car drivers. We did the same thing with Roblox. And, you know, it was so powerful to see moms bringing their daughters into the space and feeling proud. They were able to get a makeover or get something around SPF to protect your skin. So it was our way of educating a new generation around the protection piece. We called it the Lip Oil Exchange. So we gave out our lip oil, which was really, really fun. And then dads were bringing their daughters and they were bringing their sons. The lines were incredible. And like I said, we had a dj, people were dancing and having fun. We're the only brand, the first brand, I should say, that did a drone show in Indiana. They've never had a drone show before. And again, it was to celebrate Catherine. So again, the entertainment arm is to lean in to purpose. And that is really going to be the framework in which we can consistently show up.

[Kimiko McCoy]

I want to double down in that space. Right. Because right now, I can't even say right now, for the last couple of years, we've seen a change in how brands approach brand purpose. And there's been some divestment from, you know, diversity and brand purpose. And just in kind of facing backlash, we saw it with John Deere, Target, Bud Light and a handful of other brands. But talk to me a little bit about, you know, why maintain brand purpose in light of all of that?

[Patrick O'Keefe]

Oh, wow. No, I love that question. It's, it's such a. It's a great question. And again, it's taken time for us to establish the vision of Corey and Terang and the C Suite around what we do internally and what we do externally. We are such a purpose led brand. And I say that with so much support and love. And I love that we are showing up in the way. And I think brands have to do it and to find their way in, to do it and show up authentically in the way. And I know that word's overused, but the reality is when you believe in something and you show up to a community and you do it in a way that connects with them deeply, they will rally with you like you've never seen before. And one of the campaigns that I'm truly, truly proud of, another one is around Change the board Game. There was a campaign and it was really around the fact that our board of directors comprised of 78% women and 44% diverse, and we were one of four that was doing that, that has that. And so we wanted to get out there and make sure that we did a call to action to challenge companies to become more centric with women and diversity. Because we know, and we've seen it, we have proof to show it that when you put women and diversity at the high seats of decision making, that it can change your business, it can change conversations, it can change the way that you can impact the world. And so finding your way in, like I said, and once you establish it, it becomes kind of part of your DNA.

[Kimiko McCoy]

Yeah. How do you. I'm sure people listening to this would be curious about what for elf toeing that line between standing in brand purpose, working with marginalized communities. Right. While also avoiding pissing off shoppers and potential shoppers. What does that line of towing look like?

[Patrick O'Keefe]

Yeah, listen, I think there, like I said, when you stand for every eye, lip and face, you know, some sometimes you're going to not necessarily make, you know, put something out there that's going to resonate with Everybody. But it will resonate with some. And, yeah, there are times when people don't agree with, maybe it might be a model shot or whatever it is, and they have feedback. We listen to that feedback and we respond to it, and, you know, it's their choice. You know, I think when people feel heard and you listen, you know, it really does go a long way. And I always go on this framework of we listen, we learn, and we lean in, and sometimes, you know, we will make some, you know, we will make a decision on something that may not, like I said, resonate with everybody, but, you know, we want to make sure that, you know, we're representing every eye, lip, and face.

[Kimiko McCoy]

Yeah. Does the idea of brand purpose look any different going forward into 2025? You've got new year, new administration, that type of deal.

[Patrick O'Keefe]

No. Our framework is going to continue to be that we stand up for what we believe is a brand, and we are going to continue to create value and quality products to serve every eye, lip, and face. And so. I know. I mean, our framework is our framework, and we believe in it, and we stand behind it, and it really does resonate with a large part of the consumer population, and we continue to see great results with the work we're doing in this space.

[Kimiko McCoy]

Absolutely. The last thing that I want to ask is to get kind of a look ahead. Right. Or actually maybe a look at the past and look ahead. 2024 seems like a really, really long year. So talk to me about what marketing shaped up for you guys, like in 2024, how that went, and kind of the lessons that we're taking into 2025.

[Patrick O'Keefe]

The lessons that. There are two things. One is this year, I mean, like I said, I've been here for five years. This year, we've done more campaigns and created more entertainment than we had in the previous four years. And the lessons that we've learned is that we know that when we continue to find something that talks to the audience, it sparks a conversation, and then we learn more, and then we do more. So it's got to be quality. It's got to be thoughtful, it's got to be strategic, and it's got to be insightful. It's got to have all those layers. It's not just for the sake of putting something out, just for the sake of doing it. That's not what we do here at elf, but we always are looking at ways to really ensure that we're maximizing the storytelling in a way that really does resonate. And for me, the lessons are continue to do what's working and stop doing what's not. And you know, I think of many, many examples that we've done over the course of this year. Like I said with the super bowl, what we did with the Indy 500, what we're doing with Billie Jean King, what we've done on Roblox, what we've done on Twitch, the cosmetic criminals, the movie. These things are so important to building the character of our brand and making sure that we're doing it with purpose. And it's just really cool to be part of something where I had the freedom to do really cool shit.

[Kimiko McCoy]

I think that is a fantastic way to end the conversation. I have so appreciated you stopping by to gab with us here at the Digiday Podcast. Thank you so much for stopping by.

[Patrick O'Keefe]

No, thank you. Appreciate it. Cheers.

[Kimiko McCoy]

Well, that brings us to the end of this episode of the Digitay Podcast. Thank you to everyone for listening. And please don't forget to share this episode with someone who you think would enjoy it. You can even rate us and leave us a comment on Apple Podcasts. We'll be back next week with another episode of the Digiday Podcast. Thank you so much for joining us.

[Patrick O'Keefe]

Sa.