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How to Make Money? Case Study with Fonbet and Barunov

Introduction to the Discussion

• The conversation begins with a light-hearted inquiry about making money, mentioning notable figures like Barunov and Zhukov.

• Emphasizes that people are driven by passion in their work, whether they are artists or athletes.

Insights on Financial Success

• A rhetorical question is posed regarding the amount of money needed to be considered at the top, suggesting $8 million as a benchmark.

• Discusses challenges within the industry, noting that while media creates demand, it does not always generate immediate results.

Setting and Context

• The setting is introduced: a podcast episode recorded in Paris at the Shangri-La Hotel.

• The speaker expresses humility about being called a "legend," indicating uncertainty about their status in the industry.

Marketing Strategies Explained

• Overview of their business focus on media marketing across various global regions and languages.

• Details on advertising methods including digital channels, outdoor advertising, and branding efforts for diverse products.

Personal Journey into Media

• The speaker shares their creative journey starting from selling grilled chicken in school to working as a courier before entering media production.

• Describes early experiences in design for physical media packaging which laid groundwork for future endeavors in digital marketing.

Transition from Physical to Digital Media

• Reflecting on how tactile experiences with physical media were more engaging compared to today's digital formats.

• Discusses technical aspects of DVD production as part of their academic background, highlighting innovations that allowed more data storage on discs.

This structured summary captures key insights from the transcript while providing timestamps for easy reference.

Transition to Online Media Consumption

The Shift from Physical to Digital

• Initially, music and books were downloaded, but downloading movies was tedious. By 2014, the transition to online media became evident as physical media began to decline.

• The industry faced a divide: licensed (white), pirated (black), and gray markets emerged, with some licensed producers creating slightly altered versions of content.

Industry Response to Changing Consumer Behavior

• Both sides of the film market grappled with how to adapt; skepticism existed regarding consumers' willingness to pay for online content after already paying for internet access.

• The idea of incorporating advertisements into content emerged as a solution, allowing viewers to watch films for free while advertisers paid for exposure.

Emergence of Media Advertising

Challenges in Accessing Content

• Issues surrounding access became prominent around 2014, marking a significant point in the evolution of media advertising within the industry.

• Previous attempts at media advertising existed, but this period marked a pivotal moment when slogans and calls-to-action became essential.

Regulatory Impact on Content Availability

• Problems accessing content arose partly due to regulatory actions by Rospan Nazor blocking various project mirrors starting around 2015.

• This led advertisers to focus on retargeting audiences who had previously engaged with other performance sources.

Cultural Impact of "Access Problems"

Viral Marketing Strategies

• The phrase "problems with access" unexpectedly turned into a viral marketing slogan that resonated widely across social media platforms.

• This cultural phenomenon evolved further into an actual event characterized by catchy songs and memorable characters promoting solutions.

Introduction of Brand Ambassadors

• A notable ambassador emerged in the industry during this time, bringing forth a viral message through engaging content that connected deeply with audiences.

The Rise of Memes and Parody

Popularity Through Humor

• Humorous campaigns gained traction; one particular song about making money became immensely popular and was parodied across various platforms including TV shows like KVN.

Lasting Influence on Marketing Tactics

• Despite its low-budget production quality, the campaign's relatability struck a chord with audiences, demonstrating that effective messaging can transcend production values.

Case Study: Fon Bet Campaign

Strategic Partnerships in Advertising

• A successful collaboration between Fon Bet and Baronom highlighted innovative marketing strategies coinciding with major events like Euro 2024 football championship.

Celebrity Endorsements

• The brand sought out well-known figures as ambassadors to enhance their visibility and connect more effectively with target demographics.

The Essence of Burunov's Genius

Popularity and Reputation

• Burunov is described as the quintessence of genius, widely recognized for his popularity, especially after roles in "Police Rublevka" and "Word of a Guy."

• The speaker emphasizes that while he is financially successful, there are concerns about reputational risks associated with his work.

Creative Approach

• A strong creative approach is necessary; individuals must be motivated to pursue their artistic desires.

• Burunov has a deep passion for aviation, which he often expresses in interviews, indicating a desire to incorporate this into his work.

Role Transformation

• The concept of Burunov as a pilot transformed the entire creative process.

• His improvisation on set contributed significantly to the content, showcasing moments that were enjoyable for him and enhancing the overall production.

Memorable Performances

• Notable scenes include humorous interactions with props like trophies and dance performances that highlight his immersion in the pilot role.

• The speaker recalls legendary moments from Burunov's performances that have left a lasting impression on audiences.

Collaboration Insights

Director Interaction

• Burunov actively engaged with directors during playback sessions, providing feedback on takes and demonstrating commitment to the project.

Overcoming Doubts

• Initially hesitant, once he embraced the pilot persona, Burunov fully committed to the role, leading to an energetic performance.

Case Studies: Collaborations with Other Artists

Working with Sergei Zhukov

• Convincing Zhukov took over six months due to internal conflicts; however, they found common ground through shared creative desires.

Successful Integration of Styles

• Zhukov expressed a wish to create music blending various styles (slow moments, fast beats, rap), which was realized successfully in their collaboration.

Creative Freedom and Audience Engagement

Authentic Expression

• The final product resonated well because it allowed artists like Zhukov and Burunov to express themselves authentically within their crafted personas.

Humor and Audience Reception

• Integrating humor into serious contexts helped engage audiences effectively; subtle jokes were well-received by viewers.

Conclusion: Artistic Fulfillment

Desire for Creative Satisfaction

• Both artists thrive when given freedom in their projects; mature individuals know what brings them joy creatively.

Parallel Projects

• Simultaneous content creation involving both Burunov and Zhukov showcased effective collaboration across different artistic expressions.

Insights on Working with Athletes vs. Actors

Differences in Professionalism and Responsiveness

• Athletes are described as highly professional, capable of following instructions from coaches effectively. They excel at executing tasks when given clear objectives.

• The speaker emphasizes that athletes understand the urgency of their tasks; they know that quick execution leads to success, contrasting this with actors who may not always share the same level of professionalism.

Challenges with Actors

• Working with actors can be challenging, especially those who are still developing their skills. Emotional outbursts on set can complicate production efforts.

• The speaker notes that while some actors can deliver dramatic performances, achieving a high level of emotional intensity consistently is difficult.

Exceptional Cases in Sports

• A notable exception mentioned is Alexander Ovechkin, who demonstrates exceptional professionalism both in sports and acting roles. His efficiency on set is highlighted by completing his work in just 30 minutes without indulging in personal comforts like refreshments.

Market Insights: Media Advertising and Sponsorship

Market Potential and Readiness

• The speaker discusses the vast potential for media advertising within the industry but notes that many players are not yet ready to fully engage with it due to its specific nature.

Global Comparisons in Advertising

• There’s a comparison made between local markets and global giants like American Super Bowl advertising, which commands significant attention and investment.

Financial Aspects of Advertising Slots

• A 30-second advertisement slot during major events like the Super Bowl costs around $8 million, illustrating the immense financial stakes involved in media advertising.

Audience Reach and Demographics

• The audience for these events primarily consists of viewers from the USA, emphasizing how localized demographics affect advertising strategies.

The Cost of Production and Brand Engagement

Investment in Creative Content

• Brands invest heavily—often millions—in producing engaging advertisements for major sporting events to ensure maximum visibility and impact.

Annual Spending Trends

• Companies allocate substantial budgets annually for production costs associated with creating viral content featuring celebrities or sports stars.

Emerging Trends in Digital Advertising

Shifts Towards Digital Platforms

• There's a noted shift towards digital advertising channels alongside traditional methods, indicating evolving consumer engagement strategies across platforms.

Influencer Marketing Dynamics

• The discussion touches upon influencer marketing's rise, questioning current rates for posts by top athletes like Cristiano Ronaldo as part of broader market dynamics.

How to Evaluate Industry Regulations?

Impact of Regulatory Changes on the Industry

• The speaker expresses uncertainty in evaluating industry stability due to fluctuating regulations and geo-activity, highlighting that recent bans on various media advertising types have emerged.

• There is a concern about ongoing regulatory changes that complicate the media landscape, with an emphasis on how these restrictions are evolving.

Challenges Faced by Market Players

• The discussion shifts to the shared challenges within the industry, noting that both joy and hardship affect all players equally.

• Recent years have seen tightening regulations in both regulated and unregulated markets, leading to simultaneous restrictions across different regions.

Financial Implications of Restrictions

• The speaker points out that increasing limitations hinder earning potential while simultaneously raising fiscal burdens for operators in the market.

• A warning is issued regarding potential exodus of market players to offshore locations where fewer restrictions apply.

The Consequences of Advertising Limitations

Advertising Restrictions and Their Effects

• The inability to operate transparently leads to a lack of effective advertising strategies; companies must navigate complex rules around what can be advertised.

• Specific examples include prohibitions against using images of living beings or animals in advertisements, which complicates marketing efforts.

Creative Workarounds in Advertising

• Companies are forced to innovate by creating surrogate brands or finding loopholes just to maintain visibility in restricted markets.

Branding Strategies Amidst Regulatory Challenges

Budget Considerations for Brand Visibility

• The effectiveness of brand advertising depends heavily on market conditions, brand identity, and competitive environment; there’s no one-size-fits-all budget for success.

Media's Role in Consumer Behavior

• Media advertising prepares consumer demand rather than generating immediate sales; it influences future purchasing decisions through brand recall during shopping experiences.

Case Studies: Budweiser and Coca-Cola

Examples of Successful Branding Campaigns

• An example is given where Budweiser's advertisement during a major sporting event leads consumers back to purchase at retail outlets based on prior exposure.

Coca-Cola's Dominance Through Media Exposure

• Coca-Cola exemplifies effective media strategy through omnipresence across various channels, ensuring brand recognition when consumers make beverage choices.

Competitive Dynamics Between Major Brands

Pepsi vs. Coca-Cola Marketing Tactics

• A notable rivalry exists between Pepsi and Coca-Cola characterized by creative advertisements aimed at undermining each other’s market position.

Importance of Strategic Planning Before Advertising Investment

• Emphasizing the need for thorough preparation before entering media campaigns ensures alignment with overall marketing funnels and product readiness.

Media Strategy Insights

Effectiveness of Deposits and Media Presence

• The deposit system is functioning well, with traffic directed appropriately without issues like theft or cannibalization. A stable base allows for effective media engagement.

Competitive Market Dynamics

• In highly competitive markets, significant budgets are necessary to achieve a noticeable share of voice (SOV). Marketing theories and economic principles guide these budgetary decisions.

Share of Voice Theory

• A brand needs a minimum SOV of 20-30% to be recognized; exceeding 30% does not significantly enhance brand awareness but can push competitors out.

Budget Constraints in Media Strategy

• Brands with only 5% SOV risk being forgotten amidst competitors' media campaigns. Recommendations include focusing on performance marketing and retargeting strategies to maintain visibility.

Regional Focus for Limited Budgets

• For brands with limited budgets (e.g., $50,000), targeting smaller regions can yield better results. This strategy allows for sufficient SOV while testing market responses before scaling up.

Case Study: Cyprus Shawarma Brand

Success in a Small Market

• A shawarma brand on Cyprus operates successfully with a budget below $50,000 per month due to its unique offering and strong local presence.

Audience Engagement and Cultural Relevance

• The brand's success stems from its cultural relevance; it resonates well with the local audience familiar with shawarma, leading to high engagement rates.

Performance Metrics and Challenges

• While specific sales figures are unclear, anecdotal evidence suggests strong daily sales. However, transparency about performance metrics remains an industry challenge.

Product Development Insights

• The product underwent extensive preparation involving ingredient selection and testing, highlighting the importance of quality in achieving culinary excellence within the market context.

Crisis Management and Reputation in Business

Introduction to Local Cuisine and Media Advertising

• Discussion begins with a light-hearted mention of local food options, specifically sandwiches and hot dogs, highlighting their popularity in Cyprus.

• Acknowledgment of the effectiveness of media advertising through personal anecdotes about local cuisine.

Understanding Crises in the Industry

• The speaker reflects on the inevitability of crises within the industry over 21 years, indicating that they are a constant presence.

• Defines crisis as both a problem and an opportunity; emphasizes that overcoming crises can strengthen businesses.

• Emphasizes collective problem-solving during crises, noting that challenges often affect many stakeholders rather than just one individual or business.

Collective Resilience During Challenges

• Discusses the importance of not feeling isolated during tough times; stresses shared experiences among industry professionals.

• Transitioning towards concluding thoughts on reputation management after decades in the market.

Importance of Reputation Management

• Highlights how maintaining a good reputation is crucial despite market chaos; personal recommendations reflect trustworthiness.

• Notes challenges faced when dealing with local partners and contractors, emphasizing accountability to clients.

Navigating Complex Relationships

• Discusses difficulties in managing relationships with various stakeholders while ensuring client satisfaction remains paramount.

• Points out cultural differences affecting business practices, particularly in Asian markets where perceived weakness can be exploited.

Experiences with Deceptive Practices

• Shares experiences with fraudulent practices encountered in advertising, including fake deals and misleading offers from untrustworthy sources.

• Describes issues related to evaluating media traffic quality amidst deceptive marketing tactics prevalent even among reputable organizations.

This structured summary captures key insights from the transcript while providing timestamps for easy reference.

Tournament Disputes and Legal Challenges

Issues with Player Availability

• The speaker discusses the potential for a player to become unavailable due to injury or other unforeseen circumstances, emphasizing that teams typically have contingency plans in place.

• Prior to a tournament, there were demands for full payment from the team, which raised suspicions about their intentions. The speaker only agreed to pay half initially due to concerns over complications with banks and contracts.

Miscommunication and Contractual Obligations

• Just days before the tournament, it was discovered that a key player was participating in a different league than promised, raising alarms about contractual fidelity.

• The speaker expresses frustration at the team's lack of transparency regarding the player's participation and threatens not to pay until they fulfill their obligations.

Legal Threats and Negotiation Tactics

• A legal team is mentioned as being involved; however, the speaker remains firm on withholding payment until the player is brought into compliance with their agreement.

• The situation escalates as the speaker argues that failing to deliver the player could be considered fraud under UAE law, leading them to draft an official letter outlining these claims.

Resolution and Outcomes

• After negotiations, it was agreed that the player would arrive shortly after missing one game. This resolution highlights both parties' willingness to compromise despite initial tensions.

• Ultimately, while they won in terms of securing the player's presence for future games, there remains an underlying tension regarding who truly benefits from such arrangements.

Reputation Management

• The speaker reflects on how these disputes are managed behind closed doors; clients remain unaware of such conflicts as they focus on delivering results rather than exposing internal struggles.

• Emphasizing reputation management, it's noted that maintaining a strong public image is crucial even when facing challenges internally.

Work-Life Balance Challenges

Working Dynamics with Spouse

• The conversation shifts towards working alongside one's spouse. Humorously referencing "Ocean's Eleven," it explores how personal relationships intertwine with professional life.

Communication Strategies

• Effective communication is highlighted as essential when dealing with sponsors; diplomatic language helps establish positive relationships but can complicate personal interactions.

Balancing Work and Home Life

• Despite efforts to separate work from home life, constant communication across time zones makes it difficult for both partners to disconnect from work-related issues during personal time.

Artifacts of Professional Life

• Personal spaces are filled with memorabilia from various markets reflecting their professional journeys—this serves as a reminder of their intertwined lives through work experiences.

Challenges of Working with Artists

Difficulties in Collaboration

• The speaker acknowledges the challenges of working with various artists, athletes, and performers who often do not keep their commitments.

• A humorous anecdote is shared about traveling to Paris for a podcast recording, highlighting the blend of work and leisure.

Travel Experiences

• The speaker discusses combining work with travel, mentioning a project in Chile involving a well-known Latin American rapper.

• An interesting interaction occurs where the artist explains his choice to wear sunglasses during filming, revealing insights into his stage persona.

Filming Challenges

• Despite having a long career, it was the artist's first time shooting a music video; he expressed excitement and nervousness during the process.

• The crew had to adapt quickly when the artist appeared unprepared for filming due to exhaustion from travel.

Adaptability on Set

• The team rearranged scenes to accommodate the artist’s comfort level while ensuring they captured necessary footage without compromising quality.

• The final product received positive feedback despite initial setbacks; lessons were learned about managing expectations and communication.

Cultural Insights and Local Dynamics

Understanding Local Customs

• Observations are made about local customs in Chile regarding direct communication; artists may avoid being upfront about issues like discomfort or readiness.

Casting Complications

• Issues arose with local actresses increasing their fees after initial agreements; this led to budget constraints for the production team.

On-Site Management

• One actress struggled with her role on set, prompting discussions about professionalism and adaptability within creative environments.

Lessons Learned from Production Errors

High-Stakes Mistakes

• The speaker reflects on costly mistakes that can occur during production, emphasizing how critical timing is in film projects.

Case Study: Integration Planning

• A specific case involving an integration plan that initially included another performer highlights how negotiations can shift unexpectedly.

Project Management Challenges and Insights

Initial Concept Agreement

• The team agreed on a concept where the "mood color" was red, and they set a price that was considered high but manageable.

• A scenario was developed and approved, leading to further paperwork to ensure all elements were in place for execution.

Execution Difficulties

• During execution, unexpected complications arose as team members created artificial difficulties, leading to frustration.

• The speaker decided to eliminate risks by refusing to proceed with the project when early signs of problems emerged.

Client Communication

• The speaker communicated directly with the client about halting the project due to potential issues that could arise post-contract signing.

• Concerns were raised about losing the idea to competitors; however, the speaker reassured that the concept would not be taken elsewhere.

Avoiding Major Pitfalls

• A moment of panic lasted until an unexpected turn of events occurred, preventing any contractual obligations from being finalized.

• Reflecting on this experience brought relief and gratitude for avoiding what could have been a disastrous outcome.

Learning from Literature

Influential Works

• The speaker discussed two significant literary works that influenced their business perspective, particularly in creative industries.

Recommended Reading: "Monday Starts on Saturday"

• This book by Strugatsky brothers is set in a Soviet-era research institute exploring paranormal phenomena.

• It critiques organizational systems focused solely on work without tangible results, emphasizing the need for measurable outcomes in business operations.

Key Takeaways from Literature

• The importance of having clear goals and deadlines within organizations is highlighted as essential for productivity and accountability.

Overcoming Adversity

Advice for Challenging Times

• When facing significant challenges, it's crucial to recognize that such struggles are often shared experiences among many individuals.

Persistence in Adversity

• Solutions will emerge if one continues working through problems rather than succumbing to despair or giving up hope.

Personal Reflection on Career Choices

• The speaker reflected on moments when they considered abandoning their career path but ultimately chose perseverance over complacency.

Navigating Life's Crossroads

• Choosing between stagnation or continued effort during tough times can define one's future success; opting for action led to positive outcomes.

Podcast Discussion on Future Guests and Space Travel

Guest Preferences for Future Podcasts

• The speaker expresses interest in having Dima as a guest on the podcast, indicating that it would be an intriguing episode.

• Another potential guest mentioned is Marina, who is also expected to bring valuable insights to the discussion.

• The speaker shows enthusiasm for interviewing Max Ushinsky, a notable figure from the Avangard hockey team, highlighting his unique background and expertise.

• There’s a desire to include guests from outside their industry to diversify perspectives and engage with new ideas.

• The speaker has identified several promising candidates for future episodes, suggesting plans for more diverse content next year.

Hypothetical Space Travel Scenario

• A subscriber poses a hypothetical question about receiving a ticket to space travel; the speaker contemplates this exciting opportunity.

• The conversation reveals some concerns regarding safety statistics of space travel but ultimately leans towards willingness if conditions are favorable.

• The speaker shares personal hesitations about flying into space, preferring to wait until there are more successful missions before considering participation.

Podcast Wrap-Up and Audience Engagement

• The host thanks the guest for an engaging podcast experience despite some challenges faced during recording sessions.

• An announcement is made regarding a giveaway of an iPhone as a reward for audience engagement based on questions posed during the podcast.

Marketing Insights and Audience Interaction

• A query is raised about creating effective marketing slogans for an alcoholic brand aimed at diversifying client bases; audience input is encouraged.

• A unique cricket memorabilia item signed by legendary players will be offered as an incentive for audience participation in slogan suggestions.

• The significance of this collectible item is emphasized, noting its potential value increase over time due to its rarity and historical context.

Market Focus Discussion

• The conversation shifts towards targeting Asian markets specifically in relation to promoting the discussed alcoholic brand.