Hello! Here are top advertising and media articles for July 21. Lucia Moses here, filling in for Lauren Johnson, who's on a well-earned vacation. Sign up for this daily newsletter here. In today's edition: Where media startups VCs are placing their bets, Red Bull's diversity deck, and how MAC Cosmetics is dealing as store foot traffic crashes.
19 media startups that top VCs say are poised to take off in 2020, as the pandemic reshapes the industry
The shuttering of movie theaters, production studios, live sports, theme parks, and film and music festivals has cut into media companies' earnings. But investors are continuing to pour money into companies they think are poised to take off and emerge stronger as consumer habits shift. Here are 19 startups focused on areas like livestreaming, short-form video, podcasting, and esports that investors are bullish on.
Read the full story here.
Red Bull execs outlined plans to increase diversity efforts a month before being fired. Here's their slide deck.
About a month before being fired July 13, two top Red Bull executives announced ambitious plans to increase Black representation in the company, its marketing, and community outreach. Multiple employees saw their firing as an act of retaliation by Red Bull corporate leadership in Austria. The executives' firings, along with layoffs in cultural marketing, have thrown into question the future of the diversity program.
Read the full story here.
MAC Cosmetics' global CMO on how it's reevaluating its stores, adapting to online shopping, and advancing diversity and inclusion
MAC Cosmetics is known for its in-store experience, but the coronavirus pandemic has changed all that as people migrate to shopping online. Global CMO Ukonwa Ojo described how the Estée Lauder brand is adapting by using AR to let people try on makeup virtually and other features. She also addressed how the company continues to advertise on Facebook despite MAC's taking a stance against hate speech.
Read the full interview here.
More stories we're reading: Coronavirus Rewrites the Disney Playbook (Wall Street Journal) Morgan Stanley thinks Walmart's new subscription service will boost its ability to take on Amazon Prime (Business Insider) While growing an empire, Shopify manages to play nice (Modern Retail) A YouTuber with 250,000 subscribers explains how much money she makes from her videos, which is more than her salary from her day job as a teacher (Business Insider) Linkin Park's Mike Shinoda on how he used Twitch to create a new album with fan input and how musicians can make money on the livestreaming platform (Business Insider) Thanks for reading and see you tomorrow! Remember you can subscribe here. — LuciaJoin the conversation about this story » NOW WATCH: Pathologists debunk 13 coronavirus myths
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Red Bull names its first Black CMO and shakes up its marketing team after internal Black Lives Matter controversy
Summary List Placement Red Bull has named a new CMO and laid off more than 50...Summary List Placement Red Bull has named a new CMO and laid off more than 50 people around the world, mostly in its culture marketing department, following internal controversy over the company's response to Black Lives Matter and the leak of a racially offensive presentation slide. The culture marketing department is known for organizing and sponsoring concerts, festivals and other events with a big focus on hip-hop music and breakdancing. Multiple employees said leadership credited this work with helping Red Bull perform well during the pandemic, and a June presentation from North America CEO Stefan Kozak and CMO Amy Taylor showed that the company had outperformed its chief rival, Monster. But then Kozak and Taylor were fired in July. It was widely believed they were fired because Red Bull corporate leaders in Austria blamed them for leaks and the internal tensions behind them. The month before, 300 employees had signed a letter to them that was leaked to Business Insider and that urged the company to more explicitly support BLM. Kozak and Taylor subsequently announced plans for diversity efforts. Also in June, an offensive slide that was shown at a company meeting was leaked to Business Insider. Along with Kozak and Taylor, the company also fired the marketing exec, Florian Klaass, whose team was responsible for the slide, according to multiple people. Multiple people said several of the employees involved in organizing the Black Lives Matter letter were among the roughly 50 who were let go. The most recent round of layoffs hit the US on September 1. On Sept. 30, Red Bull promoted its brand marketing head Ken Turner to North American EVP and CMO, making him Red Bull's highest-ranking Black executive. His promotion followed another key change. Erin Woody, VP of culture marketing who reported to Taylor and led many of Red Bull's most visible projects, resigned a few weeks ago after 10 years at the company. Woody did not respond to requests for comment. Asked for comment on the recent changes, a spokeswoman for parent company Red Bull GmbH said the company restructured its culture marketing team to focus on programs that have the most impact. She said some of Red Bull's dance competitions and local efforts, like a Detroit-based artist residency program, would continue. Got more information about this story or another ad industry tip? Contact Patrick Coffee on Signal at (347) 563-7289, email at firstname.lastname@example.org or email@example.com, or via Twitter DM @PatrickCoffee. You can also contact Business Insider securely via SecureDrop.SEE ALSO: Bain Capital-owned Kantar is cutting 10% of staff as the research firm takes a hit in the pandemic Join the conversation about this story » NOW WATCH: What makes 'Parasite' so shocking is the twist that happens in a 10-minute sequence
Red Bull has shaken up its US leadership and global marketing operation. Here's how the energy drink company has responded to turmoil over Black Lives Matter and calls to increase diversity.
Red Bull has been through a series of executive-level changes over the past two months due...Red Bull has been through a series of executive-level changes over the past two months due to internal tension over the energy drink giant's diversity efforts and its response to Black Lives Matter. The company's North American CEO and CMO were fired while working to expand outreach to the Black community. Insiders said the turmoil reflects a cultural divide between Red Bull leadership in Austria and the US, its largest market. Visit Business Insider's homepage for more stories. In July, energy drink giant Red Bull fired three top executives, including its North American CEO and CMO, and dissolved the cultural marketing divisions that organized events like live music festivals. These moves came after internal tensions over Black Lives Matter went public and an offensive slide from a company presentation that was first published by Business Insider and drew attention from major media outlets like The Wall Street Journal. The departed execs had been working on a plan to increase Red Bull's diversity and outreach to the Black community, but insiders said that project's future is now in doubt. An interim team has been named to run the organization in North America while Red Bull seeks new leadership. The turmoil came as Red Bull's sales continued to grow. The company said it sold nearly one can for every person on earth in 2019 and bounced back from a brief coronavirus-related dip to gain market share over chief rival Monster this year. In recent weeks: More than 300 employees signed a June 1 letter addressed to North American CEO Stefan Kozak and president, CMO Amy Taylor that questioned the company's "public silence" regarding the Black Lives Matter movement. It asked for more detail on how the company, which has often partnered with Black celebrities, would support its Black employees and the Black community at large. Employees later leaked a slide from a February corporate event that used a world map that described India as "call centers," Africa as "zoo animals come from here," and the Middle East as "evil doers." Employees said colleagues warned organizers not to use it and made complaints to human resources. Three weeks after the leak, Red Bull's corporate leadership in Austria fired Kozak, Taylor, and global head of music, entertainment, and culture marketing Florian Klaas, whose team was said to have chosen the slide. It also dissolved the teams that organize sponsored music festivals and other cultural events. Insiders called the firings acts of retaliation. "We reject racism in every form," Red Bull's board wrote in an all-staff memo. An internal video from June 17 laid out the diversity programs Kozak and Taylor were developing when they were fired. They included collaborations with Chance the Rapper's charity and a consulting firm that specializes in diversity as well as new employee resource groups. SEE ALSO: Fewer than 3% of US executives at ad giant Havas are Black. Read the deck outlining its ambitious plan to increase diversity. Join the conversation about this story » NOW WATCH: Swayze Valentine is the only female treating fighters' cuts and bruises inside the UFC octagon
Red Bull execs outlined plans to increase diversity efforts a month before being fired. Here's their slide deck.
Red Bull's North American CEO and CMO outlined plans to grow the company's diversity efforts June...Red Bull's North American CEO and CMO outlined plans to grow the company's diversity efforts June 17 before being fired on July 13. The plans came in response to Black Lives Matter and promised to grow Black representation at the company and in its marketing and work with organizations like Chance the Rapper's SocialWorks. They also followed a June 1 letter signed by 300 employees that asked the company to take more action on diversity. Red Bull employees said the plans' future is uncertain since the executives were fired and the company's US cultural marketing division was dissolved. Visit Business Insider's homepage for more stories. About a month before being fired July 13, former Red Bull North American CEO Stefan Kozak and president and CMO Amy Taylor announced ambitious plans to increase Black representation at the company, its marketing, and community outreach. Multiple employees saw their firing as an act of retaliation by Red Bull corporate leadership in Austria, who the employees believe were less interested in the project and unhappy about the leaks of an employee letter urging more public support for Black Lives Matter and an offensive slide from a corporate event in February. Asked for comment for this article, a Red Bull spokeswoman said: "As colleagues, when we have things to say to each other, we speak to each other directly. We trust that you will appreciate this." CEO Kozak said he wished Red Bull had taken more action on BLM In a video presentation June 17, Kozak said he wished Red Bull had been more vocal in its support of Black Lives Matter. "Tangible change is the only thing that counts," Kozak said. Regarding corporate leadership in Austria, he said, "while we may not always like everything that is being decided, we work very closely with our global counterparts." H also said Red Bull had already emerged from the "storm of COVID," gaining market share over chief rival Monster with US sales down by only 2.1% in the first half of 2020 but up more than 15% in the first half of June. The company hired a consulting firm to help with internal conversations about diversity Taylor said in the presentation that Red Bull had remained "respectfully quiet on social media" regarding Black Lives Matter while working on the diversity project. She said the company would grow Black representation in its staff, marketing, and work with social justice organizations like Chance the Rapper's Chicago charity SocialWorks and New Orleans-based Overcome Racism. She also said Red Bull recently hired consulting firm Rewire to facilitate conversations about diversity. Taylor also announced the launch of a program that would match employee donations to nonprofits and employee resource groups that would "foster inclusivity" through mentorship programs, networking events, and cultural development workshops. "Our goal is not to drive representation through quotas and percentages," she said. "It's to fundamentally change the way we play." Rewire's founder did not respond to a request for comment on the firm's planned collaboration with Red Bull. Red Bull also dissolved its cultural marketing teams The executives' firings, along with layoffs in cultural marketing, have thrown into question the future of the diversity program. The company dissolved its cultural marketing divisions in the US, whose activities included sponsoring Black-focused cultural events, and elsewhere, according to an email viewed by Business Insider. "While we are starting a new chapter at [Red Bull North America], what has not changed is your resilience, drive and commitment to the brand," read an email sent to Red Bull's distribution team by VP of finance Tomasz Nowakowski on July 15. The employee who shared that email called it "tone deaf" for not mentioning the events that led to the execs' departures. One employee said staff were told that they could either accept new roles or receive exit packages but that no new jobs have been announced. Employees say the executive firings alarmed US staff A Red Bull employee who worked on the BLM project called Taylor a "beacon of light" on matters of diversity and said her sudden departure has staff concerned about whether leadership will make additional restructuring moves. Another employee said Red Bull achieved much of its success in the US by sponsoring events like hip-hop shows and b-boy dance competitions and that by firing Kozak and Taylor, Red Bull "got rid of the only people to even acknowledge that there might have been a problem" with diversity. "I got the message loud and clear," this person said. Got more information about this story or another ad industry tip? Contact Patrick Coffee on Signal at (347) 563-7289, email at firstname.lastname@example.org or email@example.com, or via Twitter DM @PatrickCoffee. You can also contact Business Insider securely via SecureDrop.SEE ALSO: More than 300 Red Bull employees signed a letter expressing 'concern' about the company's response to Black Lives Matter and asking for 'internal action.' Read their note to executives. A slide showed how Red Bull has outperformed chief rival Monster during the pandemic. Online and convenience store sales made up for a drop in sales at bars and venues. Sales shot up in June after a brief coronavirus-related dip. CMO Amy Taylor said the diversity project would focus on Black voices within and beyond Red Bull. Red Bull hired consulting firm Rewire to help the company act on plans to diversify its marketing work. Red Bull planned to collaborate with SocialWorks, whose founder Chance the Rapper has performed at company-sponsored events. The presentation highlighted Overcoming Racism; founder Matthew Kincaid was a winner of Red Bull's 2017 social entrepreneurship competition. According to the video, employee groups would "range from celebrating ethnicity to gender, sexual orientation and more."