Advertisers to Elon Musk: Talk is Cheap, but Ads are Expensive Elon Musk's Twitter has become a playground for controversy and chaos, leaving advertisers wondering if they've stumbled
into the wrong sandbox. While Musk promises a safer, more reliable platform, advertisers aren't convinced they can trust the enigmatic entrepreneur to deliver the goods. With Musk's unpredictable behavior and penchant for provocation, advertisers are left wondering if they're playing a high-stakes game of Russian Roulette. Will Musk's promises bear fruit or leave advertisers feeling like they've been duped? Only time will tell, but one thing's for sure: the Twitter-sphere is in for a wild ride
with Musk at the helm
Elon Musk is no stranger to controversy. As the founder of Tesla, SpaceX, and Starlink, he has revolutionized the worlds of electric cars, space travel, and internet connectivity. But it's his role as the current owner of Twitter that has some advertisers worried. At the inaugural Possible conference in Miami Beach, Musk took to the main stage to discuss the concerns of brand marketers about brand safety on Twitter. In a conversation with Linda Yaccarino, NBCU's chair of global advertising and
partnerships, Musk talked of championing citizen journalism while also deriding mainstream media. He vowed he would be treated the same way as anyone else on Twitter and promised freedom of speech while limiting hate speech through a series of community controls. Musk's rhetoric
was received "ok" by the audience, but advertisers are not convinced. In fact, as an airplane sponsored by a coalition of civil rights groups circled above the Fontainebleau in Miami Beach trailing the message "Musk is bad for business #StopToxicTwitter," it became clear that advertisers have serious reservations about Musk's ability to deliver a safe and reliable advertising platform. Musk's track record on Twitter has been spotty at best. He has been known to engage in public spats with critics and journalists, and his tweets have been known to move markets, causing investors to lose millions of dollars. Furthermore, Twitter has been criticized for failing to curb the spread of hate speech and misinformation on its platform. Musk's promises
to limit hate speech through community controls are viewed with skepticism by advertisers who doubt the effectiveness of such measures. Musk's comments on traditional media are also cause for concern. By denigrating traditional media, Musk is effectively alienating a large segment of the advertising market. Many advertisers rely on traditional media outlets to reach their target audiences,
and Musk's dismissal of these outlets suggests that he is not interested in catering to their needs. Moreover, Musk's cavalier attitude toward advertising raises further questions about his commitment to the advertising industry. Musk has made no secret of his disdain for advertising, and his comments at the Possible conference suggest that he views advertising as little more than a
necessary evil. Advertisers who invest significant sums of money in advertising campaigns are unlikely to be pleased with Musk's dismissive attitude towards their industry. But perhaps the biggest concern for advertisers is Musk's unpredictability. Musk is known for his impulsive behavior and his tendency to make controversial statements. Advertisers who invest in Twitter campaigns are looking for stability and predictability. They want to know that their brand will be safe on the platform and that their investment will yield positive results. Musk's erratic behavior and his tendency to court controversy are viewed by some advertisers as a liability rather than an asset. All of these concerns have led some advertisers to question whether Twitter is a safe and reliable platform for their advertising campaigns. In an industry where trust is paramount, Musk's controversial statements and erratic behavior have made it difficult for some advertisers to feel confident in the platform. It remains to be seen whether Musk can reassure these advertisers and convince them that Twitter is a safe and effective platform for their
campaigns. Despite these concerns, it's worth noting that Twitter still represents a significant opportunity for advertisers. With over 330 million active users, Twitter remains one of the most popular social media platforms in the world. Advertisers who are able to navigate the platform successfully can reach a massive audience and build their brand in ways that were once
impossible. Ultimately, the success of Twitter as an advertising platform will depend on Musk's ability to deliver on his promises. If he can create a safe and reliable platform that advertisers trust, Twitter will continue to be a valuable asset for businesses around the world. But if he fails to deliver, advertisers will have no choice but to look elsewhere for their advertising
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All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
Publishers are seeing more ad dollars trickle out of open programmatic marketplaces, which has reignited speculation that this is the beginning of the end for auctions where prices are decided in real-time. However, spending on the open programmatic market may be down, but it's not out and probably won't ever
be. There are too many reasons for publishers to keep it, especially those who don't have enough marketers buying from them directly. While it may be safer than before, it's premature to call the open marketplace a safe place for ad dollars. What is clear is that the open programmatic market's share of ad dollars won't grow, at least not in its current form. Omnicom Group has reported organic revenue growth of 5.2% for Q1 2023, making it the first of the major ad holding companies to do so. While total revenue increased by 1%, the company is taking steps to cut back its real estate portfolio in light of more flexible working arrangements. Omnicom is exploring the use of satellite offices to reduce commuting times and is partnering with Microsoft to use generative artificial intelligence for new consumer interactions. The
company is confident it will reach its lower growth forecast of 3% but less certain about reaching its stretch goal of 5%, with some clients avoiding long-term commitments due to macroeconomic uncertainty. All in all, business is good - at least according to a conversation the CEO had with the president of Adobe about self-fulfilling prophecies. Wavemaker, part of WPP's GroupM, has hired Jon Gittings as the International Head of Strategy, based in the US. Gittings will oversee global brand strategy for Colgate and Adobe's strategic direction, as well as creating new business opportunities in the US. With over 20 years of experience, Gittings has previously held leadership roles at Mediacom, Essence, Omnicom Media Group, and OMD. He will report to Stuart Bowden, the Global Chief Strategy & Product Officer, and
work closely with Wavemaker's Global Leadership Team. Tony Kalathara has been named group creative director at Innocean USA, reporting to Chief Creative Officer Jason Sperling. Kalathara brings with him a wealth of experience, having worked as creative director at Meta and contributed to Grand Prix-winning campaigns for Burger King. He
praised Innocean's culture and people and looks forward to applying his special skill set to come up with inspiring ideas for the agency's clients, which include Hyundai, Genesis, Wienerschnitzel, UC Davis Health, and LG. Innocean is a global creative network with operations in 21 countries. Retail media networks (RMNs) were a hot topic at the
Possible conference and expo in Miami, with senior executives from Albertsons Media Collective and Walmart extolling their value and discussing the impact of artificial intelligence on RMNs. They offered guidance on how to convince skeptical marketers to get involved. Meanwhile, Disney announced a deal with Kroger, a potential future merger partner of Albertsons, to bring shopper and purchase data insights to Disney streaming through a beta program that works with an unnamed brand. The
use of AI in optimizing campaigns was also discussed as a way to accelerate RMNs' effectiveness. Walmart's CMO stated that if marketers want to drive growth for their business, they should play in the retail media space. Facebook, Instagram, TikTok, and other social media platforms are urging a federal judge to dismiss a class-action complaint
alleging that they have harmed minors' mental health. Lawyers for Meta, Google, TikTok, and other companies claim that the lawsuit is part of a broader trend of trying to impose product liability rules on speech and technology, which has included book publishing, video games, and online services. The companies argue that they are protected by the First Amendment and Section 230 of the Communications Decency Act, which generally immunizes online companies from liability for material
posted by users. The platforms also state that they cannot be held liable for negligence based on publishing content or for failing to prevent addictive services. The plaintiffs, the companies argue, are attempting to apply legal principles that apply to physical products to online speech, which could potentially threaten freedom of expression. The Media Rating Council (MRC) has reinstated Nielsen's national TV audience-measurement service accreditation ahead of the 2023-24 upfront planning and buying season. The MRC had pulled the accreditation 19 months ago due to non-compliance issues related to the degradation of Nielsen's panel and operations during the pandemic. However, the reinstatement does not include Nielsen's digital in TV ratings, local TV ratings, digital ad ratings, or Nielsen One cross-media
measurement service, which all remain unaccredited, although they are in various stages of MRC audits and reviews. |
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DON’T BE A COOKIE MONSTER: HOW FIRST-PARTY DATA IS ALREADY WINNING IN MARKETING Third-party cookies are like that clingy ex who just won't leave you alone. It's time to break up
and move on to something better. Enter first-party data: the reliable, trustworthy partner that actually understands you and your needs. Say goodbye to cookies and hello to a better, more fulfilling marketing relationship. READ ENTIRE
STORY
EPIC GAMES’ VISION OF THE METAVERSE: AN OPEN AND INTEROPERABLE ECOSYSTEM The concept of the metaverse has been around for decades, but it wasn’t until recently that it gained mainstream attention. With the rise of multiplayer games, social networks, and virtual worlds, the metaverse has become a real possibility. Epic Games, the developer behind Fortnite, is one of the companies leading the charge towards this vision. In a recent interview
with GamesBeat, Tim Sweeney, CEO of Epic Games, talked about the company’s vision of the metaverse and how they plan to make it a reality. “The metaverse is the multiplayer aspect, the meaningful social play, the meaningful choices and meaningful participation,” said Sweeney. “It’s not owned by these institutions that make you play what they want you to play.”. READ MORE OF THIS STORY
LIES, DAMN LIES, AND ADVERTISEMENTS: FTC SENDS
WARNING TO GWYNETH PALTROWThe Federal Trade Commission (FTC) has issued a warning to advertisers, urging them to back up their product claims or face steep civil penalties. In notices sent to 670 companies, the FTC stated that companies are required to provide “reliable evidence” to back up their product claims, a requirement that has been in place for some time. However, many advertisers continue to make
unsupported statements and false claims about the evidence they have.. READ THE FULL ARTICLE
COLLABORATION IS KEY: UNLOCKING THE POTENTIAL OF FIRST- AND SECOND-PARTY DATA
STRATEGIES The age of relying on third-party data for media buying may be coming to a close, but don't count out the power of collaboration just yet. Data clean rooms (DCRs) have emerged as a popular avenue for brands to uncover valuable insights, but they're not the end-all-be-all solution to marketing strategies in the face of a looming recession. While a DCR can help match audiences and allow brands to... READ MORE
DAVE MORGAN’S CRYSTAL BALL: HOW NETFLIX’S AD TIER WILL SHAPE THE VIDEO AD
LANDSCAPE As Netflix dives into the realm of ad-supported streaming, it’s clear that the video advertising landscape is about to experience a seismic shift. With the streaming giant making its move, we sat down with Dave Morgan, CEO of Simulmedia, to discuss how Netflix’s new tier will impact the industry and what it means for advertisers,
long-form video content, and the advertising world at large. In light of the tough ad economy in 2023, Morgan believes that Netflix’s ad-supported tier is well-positioned to succeed. “It still has limited inventory as the ad tier just begins to scale. Thus, it doesn’t need huge
commitments from advertisers, just modest commitments from a number of the top brand advertisers, and it doesn’t need to trade piercing for volume like fully scaled players need to when budgets are under pressure,” he says. READ MORE
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