Summary List PlacementHi and welcome to Insider Advertising, where we delve into the big stories in media and advertising. First, if you're not a subscriber, sign up here to get this in your inbox daily.
Ad business as (un)usual The advertising world was once known for its costly face-to-face pitches, the high-end commercial shoots, and in-person networking events — much of which has been upended by the pandemic. Add a less visible part of the ad business to that list: the account review. Electronics giant Samsung began a review of its US ad-buying business earlier this summer, but it's since canceled it in response to the economic effects of the pandemic, according to sources. The account was worth about $845 million, based on Samsung's US ad spending last year, and had four of the top ad holding companies including Publicis Groupe and IGP pitting for the business. It's another reminder of how much has changed over the past several months.
The pandemic and protests against police brutality have also caused marketers to adapt their messaging (while risking blowback in some cases). Cost-cutting has affected nearly all parts of the agency landscape as holding companies have pulled their earnings estimates for 2020, frozen hiring, and cut pay. Many of the shifts are expected to endure. Data will likely take on a bigger role as marketers want to know how their campaigns are working in real time. And advertising will likely continue shifting from traditional media to influencer marketing and e-commerce platforms as people spend more time on social media and online shopping.
Read more here: Samsung cancelled a review of its $845 million US advertising business due to the pandemic. Here's what we know.
Brands come to Hollywood People are streaming more video than ever, so what's a marketer to do? For some, join 'em. Tanya Dua reports that the documentary trend has picked up in the pandemic for a few key reasons:
You can make docs while still following social distancing rules. Brands are going where the eyeballs are (streaming video). Short films are suited to brands' love affair with purpose-driven marketing. And they might be seen by people who would normally skip ads.
Read the rest here: People are doing everything they can to avoid ads, so brands like KitchenAid, Verizon, P&G, and J&J are producing more long-form documentaries
TikTok-Reels faceoff How many ways can you compare TikTok and Instagram Reels? Dan Whateley asked music marketers to size up the two in terms of their utility for music marketers, and the clear early winner is TikTok when it comes to discovery features. But don't count Reels out just yet, they said. Read the rest here: Music marketers say Instagram's Reels can help record labels reach new audiences but that it lacks some key features that make TikTok the industry leader
Other stories we're reading:
Mondelez CFO frees up funds as snack maker turns advertising back on (Wall Street Journal) Meet Katherine Power, the serial entrepreneur who's running 3 companies with more than $60 million in total funding, including one with Cameron Diaz (Business Insider) Media companies get in on the SPAC action (Axios) AMC Theatres says it will stay open as other major chains close because of its industry-shocking windowing deal with Universal (Business Insider) Inside the businesses of royal style bloggers, who bring in thousands of readers and customers a day by helping them dress like Kate Middleton and Meghan Markle(Business Insider)
That's it for today. See you next week. — LuciaJoin the conversation about this story » NOW WATCH: Why hurricanes hardly ever hit Europe
More like this (3)
Summary List PlacementHi! Welcome to the Insider Advertising daily for October 19. I'm Lauren Johnson, a...Summary List PlacementHi! Welcome to the Insider Advertising daily for October 19. I'm Lauren Johnson, a senior advertising reporter at Business Insider. Subscribe here to get this newsletter in your inbox every weekday. Send me feedback or tips at email@example.com. Today's news: The New York Post's ideological split, Fox makes bid for NFL games, and Dentsu pulls back on New York office space. Insiders at the NY Post are griping about the Hunter Biden coverage, highlighting a political divide in the tabloid newsroom Lucia Moses and I report that the publication of the New York Post's explosive Hunter Biden story last week quickly stirred questions and conspiracy theories among some Post rank-and-file. The Biden story also exposed a longtime ideological split between the leadership and the Post's newsroom staffers, many of whom do not hew to the owner Rupert Murdoch's conservative beliefs. Some say this divide has widened in recent years with longtime EIC Col Allan's return, the exit of some veteran older staffers, and increase in hiring on the digital site, where the staffers tend to be young. Read the full story here. Fox just made an aggressive bid for NFL football, and it could start a bidding war for one of TV's biggest prizes Fox has submitted its bid to renew its NFL rights contract, sources confirmed, kicking off a scramble among major media conglomerates for one of television's biggest prizes. The bid is believed to be in the $2 billion range, Bloomberg first reported, which is 50 percent higher than its current contract, said a source. The offer is said to have rankled other networks whose business has taken a hit from subscriber declines and the pandemic. Read the full story here. Advertising and PR giant Dentsu is the latest corporate tenant to cast off glitzy NYC offices as more companies rethink their footprints Daniel Geiger reports that Dentsu is seeking to sublease a glitzy new office space it leased late last year on Manhattan's West Side. The holding company is the newest firm to contemplating the future of the physical workplace due to the economic downturn. Dentsu had planned to consolidate employees from four Manhattan offices into 320,000 square feet it leased late last year at the Morgan North Post Office Building by 2023. Read the full story here. More stories we're reading: As TV giants deemphasize their legacy businesses, it may be time for them to embrace outsourcing sales (Business Insider) Procter & Gamble has a history of acquiring small but fast-growing brands, and experts think these 10 companies could be next (Business Insider) Cannabis retailer MedMen is still struggling to reverse a sales slump, and the shares are tumbling (Business Insider) Instagram will add e-commerce options to its TikTok rival Reels later this year. Influencers and marketers explain how it will impact their business. (Business Insider) Hulu gets sidelined in Disney's global streaming ambitions (Bloomberg) Social-media investors could be calling the ad game all wrong (Wall Street Journal) Thanks for reading and see you tomorrow! You can reach me in the meantime at firstname.lastname@example.org and subscribe to this daily email here. — LaurenJoin the conversation about this story » NOW WATCH: Why some Hong Kong skyscrapers have gaping holes
Summary List PlacementHi! Welcome to the Insider Advertising daily for October 12. I'm Lauren Johnson, a...Summary List PlacementHi! Welcome to the Insider Advertising daily for October 12. I'm Lauren Johnson, a senior advertising reporter at Business Insider. Subscribe here to get this newsletter in your inbox every weekday. Send me feedback or tips at email@example.com. Today's news: Postmaster General Louis DeJoy hires a consulting firm, Beyond Meat bets big on breakfast, and Instagram adds audio features to Reels. Facing Congressional investigation, Postmaster General DeJoy hires a consulting and PR firm with deep Trump administration ties Patrick Coffee reports that Postmaster General Louis DeJoy hired a consulting firm with ties to President Trump to represent him after the House Oversight Committee launched an investigation into his private business. The investigation follows a Washington Post report that the longtime Republican fundraiser may have violated campaign fundraising law. Patomak Global Partners was founded by Paul Atkins, a former SEC executive who has advised Trump on financial deregulation and served on his business council. Read the full story here. Beyond Meat thinks breakfast is the next big battlefield for plant-based meat makers — its CMO explains why Alex Bitter spoke with Beyond Meat's CMO Stuart Kronauge about why the brand will start selling breakfast sausage links at retailers like Kroger and Whole Foods, the plant-based meat company's fourth product introduction and second breakfast-themed one so far this year. Rival Impossible Foods has also spent 2020 breaking into breakfast sausage, though the company has focused on restaurants instead of retailers. Sales of fresh plant-based breakfast meats nearly tripled in the 12 weeks ending August 9, according to data cited by Beyond Meat from provider SPINS. Read the full story here. Instagram has added new audio features to Reels that solve a major pain point for music marketers and could help it compete with TikTok Instagram rolled out new products last week to make it easier for people to find trending songs on Reels, reports Dan Whateley. The company created a new song discovery page featuring "trending" tracks, added the ability to share audio pages with friends in direct messages, and created an option for users to bookmark songs for later use (similar to the "favorite" feature in TikTok). The features could help Instagram compete more with TikTok, which has a heavy focus on music. Read the full story here. More stories we're reading: Amazon is giving free Prime Day credits worth $200 to first-time ad buyers, as it tries to leverage its retail muscle to boost its advertising business (Business Insider) Shaq, MLK's son, former Disney executives team up to create SPAC (Wall Street Journal) Google tries to turn YouTube into a major shopping destination (Bloomberg) TikTok spins Ocean Spray-Fleetwood Mac viral video into a commercial (AdAge) Thanks for reading and see you tomorrow! You can reach me in the meantime at firstname.lastname@example.org and subscribe to this daily email here. — LaurenJoin the conversation about this story » NOW WATCH: Why electric planes haven't taken off yet
Samsung cancelled a review of its $845 million US advertising business due to the pandemic. Here's what we know.
Summary List Placement Samsung cancelled a competitive review of its US digital ad and media-buying business...Summary List Placement Samsung cancelled a competitive review of its US digital ad and media-buying business due to economic uncertainty caused by the coronavirus, several people with direct knowledge of the matter said. A person close to the business said Samsung wanted to focus on its core business of selling smartphones and other personal electronics during the second half of 2020 instead of spending time and money to review its advertising. They suggested the review, which started over the summer, may resume when the pandemic's impact eases. Publicis Groupe, which has held the account since 2007, was facing off against fellow holding company giants WPP, IPG, and Dentsu in the pitch. The exception was Omnicom, which has a conflict with longtime client Apple. The development is the latest big change to the marketing industry wrought by the pandemic's economic effects. Samsung is one of the largest advertisers to cancel or postpone a review due to the pandemic. In March, The Gap paused a review of its own global media-buying business just as lockdowns began in the US. Samsung launched new versions of its popular Galaxy Note 20 phones in August, the same month it cancelled the review. The previous month's earnings call saw operating profit rise 23% year-over-year despite fewer smartphone sales due to an increasing demand for memory chips as more people use computers to work from home. At the time, analysts predicted Samsung would also cut its global advertising budget due to travel restrictions. Research firm Comvergence said Samsung spent around $845 million on marketing in the US last year and $2.3 billion globally. Spokespeople for Samsung, Publicis, IPG, and Dentsu did not immediately respond to requests for comment. WPP's media division GroupM and R3, the consulting firm overseeing the review, declined to comment. Got more information about this story or another ad industry tip? Contact Patrick Coffee on Signal at (347) 563-7289, email at email@example.com or firstname.lastname@example.org, or via Twitter DM @PatrickCoffee. You can also contact Business Insider securely via SecureDrop.SEE ALSO: Red Bull names its first Black CMO and shakes up its marketing team after internal Black Lives Matter controversy Join the conversation about this story » NOW WATCH: How NASA strategically paints its vehicles for space