2PM - No. 810: Gone in 60 Seconds

Lead Story: The Big Game / Variety: Coinbase spent $15 million for a television spot, its agency spent close to nothing on the ad creative, and the partnership won the Super Bowl's ad sweepstakes. In the attached memo, the 2PM team breaks down the numbers and the history of the QR. Here's an excerpt: "The sixty-second advertisement is almost solely composed of a QR code ricocheting against the sides of the frame, akin to a DVD Video logo that appears when a movie is paused for a long enough stretch of time. The QR card bounces around, changing colors, before the commercial concludes with the Coinbase logo. Scanning the QR code redirects viewers to Coinbase’s official website."

New 2PM Memo (4 minute read): If you ever want to give up, consider the QR code’s journey from where it was just a few years ago. While immensely popular in Japan and other Asian countries, prior to the pandemic it was nearly forgotten in the United States.

The QR code dates back to 1994, when it was first used by a Toyota subsidiary to track auto parts during assembly. More information-rich than a barcode, QR codes were designed to unlock information like product files or manufacturing records. It wasn’t until 2002 that the “quick response” code took on a new life as a way to drive viewers to properties like websites and events. And by 2007, QR’s promise was what we know it today: for brands and advertisers to tack on additional storytelling, details and access when trying to get customers’ attention. Still, it never ever quite caught on in a meaningful way, at least not in the US. (Read More)

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The best Super Bowl ads of 2022

Advertising / AdWeek: Spoiler alert, Coinbase won. $14 million spend and a $1B+ return in market cap. Here's an excerpt: "Humor reigned, a few heartstrings were sufficiently tugged, and celebrities showed up in bulk, ready to play. But this year’s ads still managed to reflect elements of our current reality, especially when it comes to emerging technology and the climate crisis. And one spot that no one saw coming as a top contender ended up winning the day."

Peloton won't be sold in the 'foreseeable future'

DTC Fitness / Forbes: Peloton is going for the long-game and not the short-term acquisition play. The buried lede is that the company will deemphasize equipment and focus on software. An excerpt: "Shares of Peloton, which rallied last week on speculation of a possible takeover, fell roughly 3% on Monday after new CEO Barry McCarthy said in an interview that he took the top job at the company to seize a long-term growth opportunity, and not to oversee a sale which he says looks unlikely."

Nike's supply chain snags bring pain to sneakerhead shops

Supply Chain / Wall Street Journal: Sneakersnstuff AB, a small chain of streetwear and sneaker stores with locations in Europe and the U.S., has faced delays on its Nike orders sometimes lasting several months, according to co-founder Erik Fagerlind. “We still have to pay rent, we still have to pay the staff,” he said, when a coveted shoe like a Nike x Sacai is delayed.

Editor's Note: this is a good time to review Retail's 2021. 

UPDATED: The new DTC Power List is now available to all Executive Members. This is this week's top 20 for the week of February 14th. 

Will the metaverse shake up office dress codes?

Metaverse / Quartz: Here is a solid perspective on digital fashion and its role in the coming years. There is a Nike / StockX angle here that is important to remember, as there is no line of demarcation between art and fashion in the Web3 space. Here's an excerpt: "Work has become very fluid. For me, there’s no point in replicating traditional office looks within this new space. With these new communication tools, we can level up our business identity expression too."

Food-delivery profits remain elusive

eCommerce / TechCrunch: We just published one on GoPuff only to later find out that the vertical retailer is sourcing some of their goods from Instacart. That cannot be great for margins. Here's an excerpt: "There’s a yawning gap between what public-market investors are saying about delivery companies and what private-market investors are hoping for the next crop of public companies from the space. Let’s tease apart what each group is saying and what it means for a host of startup wagers."

Butt cleavage arrives at the mall

DTC Brands / The Cut: Key strategic decisions and partnerships have gotten Savage x Fenty to where it is today. It partnered with Amazon to host its fashion shows, opening access to a mass audience while positioning itself as the anti-Victoria’s Secret. Halo’d not by a crew of Angels but by fan favorite Rihanna, Savage has embraced and celebrated body inclusivity and diversity at the right time. An excerpt: "The new Savage X Fenty store at the Fashion Show mall in Las Vegas is a little like the European-sculpture wing of the Met, only instead of lean white marble statues, it’s full of curvy lavender mannequins striking thirst-trap poses in crotchless teddies and fishnet slips."

We aren't in Vegas anymore

A. Relevant / NYT Opinion: There is an argument to be made that it is way too easy to bet money on the internet. While early adopters may be a bit more savvy on betting lines, the ease of this new era of sports books will lead to some rough experiences for novice bettors. Here's an excerpt: "Super Bowl Sunday is capping off a transition in big-time sports that has made the symbiosis between professional athletics and professional gambling all but complete."

Super Bowl bets reshapes sports fandom

B. Relevant / Bloomberg Opinion: Technology and the Supreme Court have made sports betting as convenient as picking up your phone. Sports gamblers wagered $310 million in June 2018. They wagered $7 billion last October. That figure is only going to grow larger. How, where and why fans get worked up for the Super Bowl and other sports extravaganzas is going to change.

The online gaming industry is experiencing many of the same problems that online retailers have endured over the past years of rapid eCommerce adoption. Look no further than the deal to unwind Wynn Resorts from its online gaming arm after just a year of development, according to recent reports.

The Las Vegas-based casino giant is quietly shopping its Wynn Interactive unit — operator of the WynnBet online gaming app — and has slashed the asking price to $500 million after floating a $3 billion valuation less than a year ago, a source close to the situation told The Post. The fire sale comes less than six months after Wynn was publicly readying a splashy spring launch for WynnBet, signing up NBA legend Shaquille O’Neal as a brand ambassador.

According to sources, the top acquisition partners for Wynn Interactive are Fanatics and Penn Interactive, two of the most digitally-native operators in the space. In November 2021, Wynn CEO Matt Maddox signaled, “The market is really not sustainable right now. Competitors are spending too much to get customers.” The industry’s pressure test is this weekend.

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