Red Bull names its first Black CMO and shakes up its marketing team after internal Black Lives Matter controversy
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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
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PayPal's chief creative officer Steve Simpson, its top advertising executive, left the company earlier this month...PayPal's chief creative officer Steve Simpson, its top advertising executive, left the company earlier this month after CMO Allison Johnson left in May. Both "decided to leave PayPal" as the company streamlines its global marketing functions, according to a PayPal spokeswoman. Their departures came after PayPal shifted its marketing strategy during the coronavirus pandemic, placing less emphasis on the brand and more on catering to small businesses, said a source with direct knowledge of the marketing operation. Visit Business Insider's homepage for more stories. PayPal's highest-ranking ad executive Steve Simpson left earlier this month as part of a restructuring of its global marketing business, following CMO Allison Johnson's departure in May. Simpson, who was chief creative officer, was hired about a year ago to make high-minded ad campaigns to help PayPal stand out from competitors like Square, Stripe, and Apple Pay. But this strategy changed abruptly following the pandemic outbreak and the April promotion of VP of growth marketing Leanne Sheraton, said someone with direct knowledge of the matter who is known to Business Insider but requested anonymity. PayPal began to place less emphasis on that sort of brand marketing and tried to be more like a bank catering to small businesses. In March it promoted its decision to waive fees for some merchants in the pandemic. Simpson, like Johnson, "decided to leave PayPal" as the company streamlines its global marketing functions, according to a PayPal spokeswoman. Simpson did not immediately respond to requests for comment. Simpson spent decades in the agency world before joining PayPal Prior to joining PayPal, Simpson spent 10 years at WPP ad agency Ogilvy as North American chief creative officer and nearly two decades at Omnicom's Goodby Silverstein and Partners in San Francisco, where he was a partner. He has created ad campaigns for brands such as IBM, American Express, HP, and The Gap. 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: Top ad industry salaries, revealed: How much the biggest holding companies including WPP, Publicis, and Omnicom pay employees, from junior account directors to global creative leads Join the conversation about this story » NOW WATCH: Why Pikes Peak is the most dangerous racetrack in America
Hello! Here are top advertising and media articles for July 21. Lucia Moses here, filling in...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
The move follows last year’s shuttering of Red Bull Music Academy and Red Bull Radio. It...The move follows last year’s shuttering of Red Bull Music Academy and Red Bull Radio. It also comes after weeks of tensions within the energy drink company over Black Lives Matter.