Morning Brew - ☕ Won’t back down

How writers’ strike has impacted advertisers so far.
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June 12, 2023

Marketing Brew

Braun

It’s Monday. Starting today, thousands of subreddits—including some of the most popular ones, like r/science and r/todayilearned—are going dark for at least 48 hours as part of a protest against the company’s new API pricing and its impact on third-party apps and developers. Meanwhile, the company announced some advertising updates on Friday.

In today’s edition:

—Kelsey Sutton, Katie Hicks, Erin Cabrey

STREAMING

No deal

writer's strike Spencer Platt/Getty Images

There’s still no deal between Hollywood writers and the major studios. Advertisers aren’t that worried—for now.

As the writers’ strike stretches into its second month with no agreement between the Writers Guild of America and the Alliance of Motion Picture and Television Producers, most advertisers do not see the strike considerably affecting their spending decisions, according to survey data from 20 streaming and CTV advertisers by the firm Advertiser Perceptions:

  • Most of the advertisers polled, both agencies and marketers, said they felt there was enough content between sports, unscripted, and existing video-on-demand programming to get by for now.
  • Advertisers that had dedicated budgets to affected programming said they planned to move dollars elsewhere within the same media companies’ portfolios.
  • 17 of the 20 advertisers polled said they were unlikely to hold back future spending on TV or streaming because of the strike.

“It was very much a wait-and-see for the majority of those [advertisers] that we spoke to,” Erin Firneno, Advertiser Perceptions’s VP of business intelligence, said. In other words, “We’re going to stick with our plan, stick with our publishers, keep our eye on this, and pivot if we need to.”

Keep reading here.—KS

     

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RESEARCH

The industry groweth

charts Miakievy/Getty Images

When it comes to predictions about the ad market, the last year or so has felt like “hope for the best, but expect the worst.” New data shows that the worst may be yet to come…if at all.

According to GroupM’s 2023 Global Mid-Year Forecast, global ad revenue (excluding US political advertising) is expected to grow 5.9% this year, totaling $875 billion. The growth number is consistent with the company’s December 2022 prediction, at which time it was reduced from 6.4% to 5.9%. Next year, global ad revenue is predicted to grow by 6%, Kate Scott-Dawkins, global president of business intelligence at GroupM, said.

“We are still looking at slightly negative real growth, but positive nominal growth,” Scott-Dawkins said on a briefing call with reporters.

While the possibility of a recession still seems to be up in the air, the report found that some things, like digital, can’t keep growing at a high rate forever, and new technologies like AI could soon be a main driver of industry growth.

Continue reading here.—KH

     

BEAUTY

CMO chat

Beauty products and an Ipsy bag arrayed on a mirrored tabletop Ipsy

In February, Ipsy used a TikTok video with the Saweetie and Doja Cat hit “Best Friend” and two people dressed up as living beauty boxes to introduce some big changes to its business.

The beauty subscription-box company announced that BoxyCharm, another subscription box offering full-size beauty products under the same parent company, Beauty for All Industries, would merge under the Ipsy umbrella. The move united Ipsy’s penchant for personalization on its boxes of sample-size products with BoxyCharm’s focus on full-sized items and commerce, CMO Jenna Habayeb told Retail Brew.

The two companies had operated as separate businesses since Ipsy bought BoxyCharm for $500 million in 2020, with a reported 4.3 million subscribers between them.

Ipsy has since seen “positive signals” from members, Habayeb said. “We didn’t know if people were gonna be really pissed off about a merge like that. We’ve had a lot more people sign up. We’ve had a lot of inactive members re-sign up.”

Read the full story on Retail Brew.—EC

     

TOGETHER WITH ATTEST

Attest

Trending now. Marketing budget feeling a little tight? Don’t build your media plan without understanding this year’s trends. For their Essential Insight for Media Planning Report, Attest surveyed 1,000 US consumers on year-to-year changes—and shared how you can make the most of them in your 2023 strategy. Get the free report.

FRENCH PRESS

French press

Reach for the sky: How Clear is looking to leverage this summer’s travel frenzy and turn it into a “branding opportunity.”

Another day of AI: TikTok has debuted a “script generator” for advertisers that leverages AI.

Monday inspo: Ad Age’s look at five “top” campaigns circulating right now.

Does AI pose a copyright violation? Learn more about how technology intersects with media and marketing with Tech Brew. Subscribe for free today.

TRIBECA X

Get your discounted Tribeca X day pass today!

Get your discounted Tribeca X day pass today!

The power of storytelling and innovation takes center stage on Wednesday, June 14, at Spring Studios for Tribeca X, a full-day event presented in collaboration with Tubi and BrandStorytelling. This daylong event features panels, networking opportunities, the prestigious Tribeca X Award announcement, and much more.

The clock is ticking! Save $100 on your Tribeca X day pass when you use code morningbrew at checkout.

Buy your discounted Tribeca X day pass now.

WHAT ELSE IS BREWING

  • Netflix is planning its “first official presence” at Cannes Lions this year, according to Ad Age.
  • Twitter “has refused to pay its Google Cloud bills,” per Platformer.
  • TikTok content will start showing up on gas station screens through a partnership with GSTV, a video network with inventory at thousands of fuel retailers.
  • Pinterest is furthering its data clean room trial, with Wayfair being the first company to test it out.

IN AND OUT

football play illustrations on billboards on buildings

Executive moves across the industry.

  • Opinionated, an agency based in Portland, Oregon, appointed Kate Higgins as its first chief growth officer. Higgins has previously held roles at CPB and MullenLowe.
  • Time has hired Mark Howard, former chief business officer at OpenWeb, as chief operating officer.
  • Known, an agency with offices across the US, brought on Todd Triplett to serve as its first global executive creative director. He was previously ECD at Mighty Dream.

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Written by Jasmine Sheena, Katie Hicks, Kelsey Sutton, and Erin Cabrey

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