The second method she describes is called compounding, which is basically just taking two English words and squishing them together to form a new word. An example she gives is "sandcastle", which is just two normal words ("sand" and "castle") that were moved next to each other to become just a single word. Another method that Erin describes is blending, and it is used by taking two English words and simply sort of melting them into each other. "Motel" and "brunch" are two examples of this, and in both words some letters were taken off of the original words in order to blend them together. Lastly, she describes how a new word can also be formed by taking a word and changing how it is used, called functional shift. The examples she gives are words like "commercial" and "green", that have changed their previous meanings.
Overall, the video was really entertaining to watch and I loved her enthusiasm about getting people to create new words. In my opinion, I think it is a great way for people to express their creativity and for us to have some fun while communicating. When groups use words that they have created, it brings them closer together and helps bring a sense of common understanding. There will never be a day when someone out there won't be thinking up new words, because our language is constantly evolving.