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

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.

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."

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."

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."

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.