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The rise of user-generated content.
August 09, 2023

Marketing Brew

It’s Wednesday. Grimace’s 15 minutes of fame might be coming to an end. The bag for McDonald’s latest meal plugs shows, movies, and music the chain has been mentioned in, like Space Jam, The Office, and Seinfeld.

—Katie Hicks, Alyssa Meyers, Jasmine Sheena

SOCIAL MEDIA

I gotta figure out how to make money on this thing

UGC content imagery Francis Scialabba

Influencer rates are rising, brands are seeking communities, and people—particularly Gen Z—are growing wary of influencers’ promoted products.

In response, some marketers—particularly those in the CPG and retail space—are banking on user-generated content (UGC) to reach social audiences, encouraging people without huge followings to post about products in what may appear to be more authentic than influencer posts while also likely saving money on rates.

Some in the space said UGC has the power to replace big-budget influencer deals, while others argued it’s more of a supplement to engage audiences at all levels.

Read the full story here.—KH

     

FROM THE CREW

AI: Friend or foe?

The Crew

From HAL to Skynet, AI gets a bad rap. With its fast rise, buzzy headlines, and seemingly limitless potential, it’s hard to know if AI will help us or upend us. A pressing question on many employees’ minds: Will AI take my job?

MIT researchers offer a picture of the future of AI in the workplace. Read Tech Brew’s explanation of what artificial intelligence is capable of, what its probable use cases are, and the implications for your job. Hint: Predictions might be more complex and hopeful than you might expect. Read or listen here.

RESEARCH

Ready for takeoff

Illustration of Earth with lots of planes crisscrossing Francis Scialabba

It’s no secret that travel is back. And with it, travel advertising.

After a serious pullback in 2020, travel advertisers are spending…a lot. So much so that ad spend in the category surpassed pre-pandemic levels by Q4 of last year, according to a report from TV measurement company EDO.

From July 2022 to June 2023, travel advertisers spent an estimated $1.2 billion on TV spots, a 15% increase in investment year over year, per EDO, with hotels and resorts leading the charge.

Hotel, motel: The hotel and resort category spent an estimated $327 million on TV ads in that time, an 83% increase. That’s more than the air travel and cruise segments combined—perhaps unsurprising considering hotels and resorts make up the largest segment of the travel industry, according to the report.

  • That spend funded 167,000 total airings for a total of 67 billion impressions.
  • Engagement volume—a metric that tracks a brand’s engagement levels minutes after an ad airs—of those ads doubled when compared to the same period a year prior.

Continue reading here.—AM

     

EARNINGS

Gimme the scoop!

NYT HQ Mizoula/Getty Images

The New York Times saw subscriber and revenue growth in Q2, another data point suggesting that the broader ad market could be stabilizing.

Total revenue grew 6% to $591 million, and the publisher added 180,000 new digital subscribers, bringing its total subscriber count to almost 10 million. The publisher reported $47 million in profit during the second quarter, beating analyst expectations.

Digital advertising revenue grew 6.5% to $74 million, while print advertising revenue fell 8.6%. The company said “higher revenues from direct-sold and open-market programmatic advertising” were key to boosting its digital ad revenue.

Subscription revenue from digital-only offerings grew 13% to nearly $270 million. The Times attributed the growth to more subscribers paying higher subscription prices in addition to a rise in digital-only subscribers, as well as subscribers “upgrading to the bundle,” a product that provides access to Times properties like Wirecutter, The Athletic, and Cooking.

The earnings come as the publisher continues building on its bundle strategy in an effort to bring in more subscribers; it bought Wordle last year to boost its games segment.

Keep reading here.—JS

     

FRENCH PRESS

French press Morning Brew

There are a lot of bad marketing tips out there. These aren’t those.

Mali-boozin’: A look at how Malibu rum is working to stay top of mind year-round.

Growing up: How a small business landed its products in retailers like Target and Whole Foods.

Blending in: LinkedIn put together a primer on native advertising.

Connection starts here: Is your relationship marketing strategy falling flat? Get Marigold’s ebook and be inspired by real brands’ approaches to interacting with their customers—from initial impressions to final conversions. Get your copy.*

*This is sponsored advertising content.

METRICS AND MEDIA

Stat: $5 million. That’s how much Taco Bell and DoorDash are putting toward customer orders of tacos on Tuesday, September 12, to celebrate Taco John’s relinquishing of the Taco Tuesday trademark.

Quote: “As I sensed the strike looming, I knew I needed to find ways to fill the day creatively and substantively or I would lose my mind, so I did what every normal parent does and invested 100% of my energy into turning my 2-year-old into a YouTube star.”—Vampire Diaries writer Caroline Dries to The Hollywood Reporter about how she is spending her time while on strike

Read: AI set to upend the talent search at ad agencies and brands” (the Wall Street Journal)

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Written by Katie Hicks, Alyssa Meyers, and Jasmine Sheena

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