Skip to main content

A Microsoft deal for TikTok is a win for Big Tech

Hi and welcome to Insider Advertising, weekly edition. I'm Lucia Moses, deputy editor. To get this in your inbox daily, go here. This week: Microsoft's play for TikTok, Netflix's new secret weapon, and takeaways of the Facebook ad boycott. Microsoft is interested in advertising again People who know their Microsoft history are scratching their heads when it comes to its planned deal for TikTok's US business, and not just because it would plunge the tech giant into the unfamiliar territory unknown of teen-driven social media, with all its potential messiness and drama. It's also because Microsoft all but abandoned its ad business in 2015 after its display ad revenue eroded over several years. In recent years, it's focused on going after Amazon and Google on sponsored products, but still holds only an estimated 1.4% of the display ad market, according to EMarketer.  And while TikTok's own ad business is nascent, it has big potential, with its growing, young user base that advertisers are salivating over. A successful takeover could help Microsoft erode Facebook and Google's stronghold on digital advertising. But it would also help solidify tech giant's control over advertising and the rules that govern it. And the losers? Old-guard media companies, for one, none of which has the means to bid for a company some valued at $50 billion, and whose voice at the advertising table will only continue to diminish. --- Bozoma Saint John is Netflix's new secret weapon Media coverage of Bozoma Saint John has largely focused on her glamour and charisma, but Tanya Dua and Patrick Coffee examined the ex-Apple and Uber marketer's record in this insightful profile as she starts as Netflix's CMO. Saint John's approach runs counter to the trend of data-driven marketing, which has made her a target of some. But consider what her hire signals about how Netflix sees its challenges as its field becomes more competitive. From their piece: Forrester principal analyst Jim Nail said co-CEOs Reed Hastings and Ted Sarandos have recently begun emphasizing Netflix's ability to influence pop culture through a steady stream of original hits like "Bird Box," which helps it retain subscribers and sign up new ones who don't want to miss out on the latest cultural phenomenon... Nail said Netflix's goal of influencing culture lined up with Saint John's record of helping companies stand out by co-opting trends beyond their industries. "It's almost a repositioning. They're certainly enhancing and enriching their positioning with the idea of being a key part of culture," he said. Read the full profile here: How Netflix's new CMO Bozoma Saint John rose to become the biggest 'badass' in marketing --- Facebook's ad boycott: An accounting More than 1,000 advertisers boycotted Facebook in a historic backlash against the company. But did any of it matter? Here are some key numbers, per Tanya Dua: * Some advertisers, convinced by Facebook's promises to do better monitoring hate speech, or need to make their sales numbers, are returning, and some are staying away, but the biggest impact may have been to its reputation among some users. * Facebook's ad revenue in the first three weeks of July grew about 10% year over year, the same rate as its second quarter. * It reminded us that it's mostly reliant on small advertisers who continue to spend there, with its top 100 advertisers accounting for 16% of its over-$70 billion ad revenue. Read more: Advertisers not part of the boycott also cut back spending on Facebook in July, but the platform says it will be just fine --- Other stories you should check out in media, advertising, and beyond: * Disney lost $3.5 billion in operating income from its closed theme parks last quarter and analysts say the impact could weigh on the business for years * A startup that's helped brands like Hershey's and Petco make shoppable videos just raised $10 million to become an e-commerce platform that it says can help them drive more sales * One of the very few Black women VCs says her 20 years in the industry helped her understand why she's such an anomaly — and how the industry's reverence for speed became the enemy of diversity * Average fintech salaries are in the six figures. A talent exec at $5.3 billion Plaid lays out 3 ways to get your foot in the door. * Poshmark clothing resellers are becoming Instagram influencers to increase sales and make money from brand sponsorships * Radish wants you to binge-read romance novels, and now it has a fresh $63.2 million to pay its soap opera writers and gaming pros to get you hooked Thanks for reading. See you next week! — Lucia Join the conversation about this story » NOW WATCH: What it takes to be a PGA Tour caddie
https://bit.ly/3ias6oS

Popular posts from this blog

Apple has backed down in its latest developer fight, apologizing to WordPress after it pressured the website-builder to add in-app payments

* Apple has apologized after it tried to force WordPress to add in-app payment options to a free app. * WordPress' founder said on Friday that Apple was refusing to allow any updates to the WordPress iOS app until the website builder added in-app purchases, from which Apple takes a 15-30% commission. * Apple is in a fierce fight with developers including "Fortnite" maker Epic Games and Spotify over its rules on in-app purchases. * Visit Business Insider's homepage for more stories. Apple has backed down in its latest skirmish with a developer over its App Store rules. The tech giant on Sunday issued a rare apology to WordPress after it pressured the website builder to add payment options to its free iOS app, or else be blocked from updating. "We believe the issue with the WordPress app has been resolved," an Apple spokesman told The Verge. "Since the developer removed the display of their service payment options from the app, it is now a free st...

SpaceX has a 'go' from NASA to return 2 astronauts to Earth on Sunday as Hurricane Isaias threatens several Florida splashdown locations

* NASA on Saturday gave SpaceX a "go" to undock the company's first crewed space mission, called Demo-2, and land it on Sunday evening. * Hurricane Isaias complicated original plans to return two astronauts to Earth aboard SpaceX's Crew Dragon spaceship in the Atlantic Ocean. * Elon Musk's aerospace company may now try to splash down NASA astronauts Bob Behnken and Doug Hurley in the Gulf of Mexico. * Two out of seven total landing sites near Florida must have good weather conditions, and NASA has until about 5 p.m. ET on Saturday to call off the undocking. * Should the weather worsen, NASA and SpaceX can try again a day later or some other date over the next two months. * Visit Business Insider's homepage for more stories. Astronauts Bob Behnken and Doug Hurley have a "go" to return to Earth this weekend and wrap up an historic space mission for both NASA and SpaceX.  Behnken and Hurley launched to orbit aboard SpaceX's Crew Dragon vehic...

What an independent contractor actually is and how it's classified under California's Assembly Bill 5, the gig worker law Uber, Lyft, and others are fighting with a November ballot measure

* California's Assembly Bill 5 (AB5) went into effect in January, adopting a narrow definition of independent contractor that forces Uber and other gig economy businesses to choose between reclassifying workers as employees or risking significant liability for misclassification. * The law serves as a reminder to California businesses to be careful when classifying workers as contractors.  * Classifying independent contractors falls into two main categories: the "right to control" test (often called the "IRS test") and the tougher "ABC test" recently adopted in AB5. * Uber, Lyft, and DoorDash have recently poured $30 million into Proposition 22 — a ballot measure intended to exempt major ridesharing and food delivery companies from AB5. If California residents vote the measure into effect in November, Uber and Lyft can continue classifying drivers as contractors.  * Visit Business Insider's homepage for more stories. In September 2019, Californ...