ZOO Digital

With the recent announcement of Elon Musk’s deal to buy Twitter, we looked into some of the consequences this may have for advertisers who rely on the platform.

Here’s a quick summary some implications of his takeover that we know so far:

Likely changes to censorship rules to come

• Elon Musk has previously promised to reduce censorship on the platform.
• Describing himself as a “free speech absolutist”, Musk has spoken out against Twitter’s content-moderation practices designed to make the platform safer for advertisers, by keeping toxic and violent content off the social network.
• According to advertisers, Musk’s switch from the constraints of censorship to online free speech could mean ads are shown adjacent to controversial content that brands would not want to be associated with.
• However, the EU has just passed new digital content rules that will soften some of Musk’s cough when it comes to relaxing too many rules around hate speech or threats to violence. There are eye watering financial penalties for social media firms for failure to protect what is said online.

An unclear road for the role of advertising in the Twitter business model

• Musk has previously tweeted that under his new leadership, Twitter would have “no ads. The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive.” That tweet has since been deleted.
• Most of Twitter’s revenue comes from advertising – in Q4, 2021, the company reported advertising revenue of $1.41 billion out of $1.57 billion in total revenue during that quarter.
• Ads account for nearly 90% of Twitter’s revenue now, while data licensing accounts for most of the rest.
• The $5 billion-a-year advertising business model is now under the leadership of someone whose current company, Tesla, buys no advertising.

Corporate reputations again to the fore when it comes to ad budgets

• Brian Wieser, the global president of business intelligence at ad-buying company GroupM, claims most advertisers who use the platform “strongly prefer content standards” on Twitter.
• Advertisers will likely be reluctant to have their message in the same timeline as anti-Semitism or violence again women.
• “The advertising industry is wary of Musk’s proposal to loosen speech rules on Twitter”, according to Mike Zaneis, co-founder of the Brand Safety Institute, a nonprofit organisation of digital advertisers concerned about objectionable material online.
• “Nobody wants to go back to the Wild, Wild West,” Zaneis said, referring to a time when forums and social media platforms had little-to-no content moderation. “It was painful. It was harmful to brands. It was harmful to citizens. We’ve made incredible strides, and I think a reversal would be unfortunate.”
• Ad agencies have expressed concern that Musk’s unconstrained approach to Twitter will make the social media platform less safe for brands.
• However, some don’t expect that there will be an immediate change in ad dollar spend until advertisers see a material change in the policies.

So….

So, what we do know is that changes are highly likely in the Twittersphere. What those changes actually mean when bottom lines and reputations come into play are yet to be seen. For now, your ad budgets are operating under the current rules of conduct and corporate reputation management. However, watch this space ad buyers. Don’t know about you, but we’re putting an alert on Elon Musk’s Twitter account.

Sources: BBC, Wall Street Journal, NBC News, Yahoo Finance, Politico Europe

Allie Pignataro, Associate Media Director

It’s early April in Palm Springs, it’s hot as hell in the desert, and media agencies, advertising agencies, and technology companies alike are strolling through the doors of the Miramonte Hotel, two years after the onset of COVID-19. Everyone is ready to embrace new and old faces, but more importantly, navigate this new era of change and uncertainty that has undoubtedly made its mark on the advertising industry.

I was lucky enough to attend this year’s Digiday Media Buying Summit where I listened in on many fireside chats and panels, as well as participated in town-halls and group discussions surrounding the hot topics in the media and marketing world. There were a lot of interesting conversations about new media channels, data privacy, etc., but there was one in particular that really struck home for me: the rise of the independent agency.

I know this idea isn’t necessarily a new phenomenon per-se. But although the pandemic has disrupted ad agencies of all sizes, it’s become clear that this ‘experience’ has really showcased the power of the independent agency model. I was very proud to be representing Connelly Partners prior to the summit, but I left feeling even more proud to be part of an organization that embodies and exhibits the unique value and strengths that independents can offer.

To highlight a few:

Agility

Surviving in the marketing industry means being able to quickly adapt to the needs of your consumer. As market demands continue to change at extremely high rates, there is an insane amount of value in the ability to be flexible. Every company knows that. Leaving wiggle room for innovation and change is a vital part of being successful. Simply put, ad agencies that are independent have less red tape. They’re free from agency network bureaucracy, allowing them to make quicker decisions and react at speed. 

Choice

Independent ad agencies make their own choices versus having them made for them. This is reflected in the talent that they hire, the various strategic business decisions they make, and having the privilege of seeking out prospective clients who are like-minded, demonstrate very similar passions, and exemplify the same philosophies and values.

Accountability 

Independent ad agencies are able to take accountability for every action they take, both good and bad. But, they kind of have to as small shops as there’s no one else to pass the blame to. While it’s easy to bask in success, it’s equally important to own up to mistakes. This type of transparency works well for both clients and employees.

Creativity 

Independent ad agencies are typically smaller and have fewer resources. This can actually be perceived as quite a large advantage as it provides departments more clarity and encouragement to be resourceful in how to think about developing and communicating new ideas, strategies and insights. The notion of “less is more” is completely suitable in this case. Independents scratch the surface to find solutions that perhaps haven’t been contemplated by others previously.

It was rewarding to hear many people share the same perspective in that independent agencies know damn well how business is run. They are laser-focused on the well-being of the client, while also taking the time to understand their bottom line. Most importantly, independent ad agencies truly care about the impact their work and dedication has on the overall business, a priceless aspect that money can’t buy. 

 Ali Sayles, Media Supervisor 

This month, Connelly Partners gave me the opportunity to take a break from my day-to-day media planning responsibilities to attend the Digiday Media Buying Summit in Palm Springs, California. Along with enjoying the beautiful weather, I was able to learn from some of the top media executives in our industry. During our three days together, we covered a variety of topics ranging from emerging media and marketing trends, the cookieless future, and ways to evolve media strategies. I walked away with new connections, and a breadth of knowledge which I’m excited to share with my Connelly Partners colleagues and clients. Here are a few of the topics that stood out: 

Transparency is key. 

With the cookieless future upon us, it’s important, now more than ever, to ensure that we’re transparent with how we’re collecting and measuring media data. This impacts communication not only with marketing and advertising clients, but internal agency teams as well. 

Clean rooms are the new future. 

Clean Rooms are a must in order to ensure that media data is being used in a privacy compliant manner. Many media and technology vendors are offering their solution, but it’s important we align on which solution is the path moving forward. 2023 will be here before we know it.

Metaverse is emerging, but still too new.

There’s been a ton of conversations surrounding media and the Metaverse, but the hype outpaces the material value. There are still questions that need to be answered; Where does the Metaverse fall within the social and media landscape? Will there be advertising within the Metaverse? How will we do it? Can we measure it? It’s still too early to tell. 

Gone are the days of upfront media planning. 

The pandemic has increased the need for media teams to be nimble when it comes to our media strategies and tactics. We saw this with COVID-19, the Ukraine and Russia, as well as the chip in the auto industry. Events like these have forced us to have a plan A, B, C, and D ready to activate.

So, what’s next for media planning and buying? If there’s one thing that I learned, it’s that what’s next changes constantly. Tools, products, and technology are constantly evolving, but that’s the best part of our job; no day in media is the same. Stay hungry for knowledge, be a sponge, ask questions, and poke holes.

Oh, and stay hydrated, because it definitely gets hot in the desert.

Michelle Capasso, Partner & Director of Media Services at Connelly Partners, was recently a panelist at the Digiday Business of TV Forum. In her session, Michelle reflects on the major shift that the TV landscape has been experiencing. Transitioning from age-and-gender-based media buying to audience-based media buying, this change still appears to be ongoing. Through the lens of targeting capabilities vs actual scale to find audiences in this new space, Capasso explains the progress, shortcomings, and opportunities in this new space. Watch the full session below.

Andrew Velichansky, Brand Supervisor 

Most brands nowadays have defined their “Purpose.” Beautifully cast in size-64pt font on a cardstock hand-out given to everyone at the corporate office. Two weeks later, it ends up in a Waste Management truck and forgotten until the next annual company meeting where it shows up on the “agenda” slide. 

Box: Checked.

It’s not ill-intentioned. We’re busy, and accountable to hit numbers that are black, not red, no matter how we get there.

But, if an organization is solely focused on selling products or growing share, it’s leaving a lot of value on the table.

What is a brand’s purpose?

It’s its reason for being—the why it exists. A north star that guides the whole organization, inside and out.

We make decisions daily: Is the new product viable? Do we support the social cause? Will the job candidate drive us in the right direction? Having a north star focuses every decision, giving clarity and meaning for employees, customers and beyond. Think: Does the outcome of this decision align with our purpose?

Why do brands need a purpose?

Because without it, they sell commodities and employ uninspired people. 

Take socks and shoes. Common goods, and with too many known (and unknown) brands to count. How was Bombas able to surpass $100MM in revenue in 2018 selling socks in such a highly fragmented market? Their brand purpose is clearly and demonstratively rooted in helping to clothe those in need, donating one pair of socks for each sale. Toms shoes was an early leader in that business model. Comfortable and aesthetic socks and shoes were cost-of-entry. Rooting their commodities in a larger purpose let them break through and scale.

Brand purpose doesn’t end at philanthropy. CVS boldly stopped selling profitable tobacco products in 2014. Their redefined purpose to “Bring our heart to every moment of your health” led them to ditch tobacco products and launch their “Start to Stop” program to help people quit smoking. Weeding out products that didn’t support their purpose freed up space to innovate and sell ones that did. A short-term sacrifice, but long-term bottom-line driver.

Ask Unilever, which reported in 2019 that its purpose-led, sustainable brands (Ben & Jerry’s, Vaseline, Dove, among many others) grew 69% faster than the rest of their business. And a 2019 study by Deloitte uncovered that purpose-driven companies grow three times faster than their competitors. 

The bottom line is better for it, and so are the employees.

The Great Resignation agitated the labor market, sending companies scrambling to adapt their culture and benefits to be more talent-friendly. Businesses are still struggling with retention. Yes, we want money. But that’s not all.

According to a 2021 McKinsey study, employees are more than five times more likely to feel fulfilled when their purpose aligns with their employers’. Two-thirds of millennials consider an employer’s social and environmental commitments when deciding where to work.

Gen-z is already a core part of the workforce and realizes the power brands have in driving DE&I. They’ll orchestrate brand boycotts. They’ll spike viral sales. And they aren’t afraid to resign from purposeless product-driven companies. They want to feel they’re impacting people, and they want the companies they work for to use their position of financial strength to make peoples’ lives better.

How do we put it into action?

Building a purpose takes time. It’s an ongoing commitment from R&D, HR, marketing, finance, production, and operations. It takes months to develop a meaningful initiative. It takes years to build an authentic purpose backed by substance. And it takes leadership that recognizes the significance of embracing that purpose every day.

We’ve worked with clients to both lay the foundation, and also help those with established purposes find authenticity by crawling, walking and eventually running toward that north star. What does the Defiantly Human methodology look like?

Take our client, Liberty Bank, where we:

• Hosted a series of stakeholder interviews to uncover how their employees viewed the organization’s new mission/vision, and what role they saw the bank playing for customers and the broader community. 
• Landed on a positioning and tagline that embraced who they were at their core and addressed the larger purpose they needed to serve: Be Community Kind.
• Led a set of employee ideation groups to brainstorm products, services, events, hiring/onboarding programs, community relationship building, and much more, all through the lens of Be Community Kind.
• Concepted and helped execute surprise & delight initiatives, including a new brand ambassador program focused on rewarding and paying everyday kindness forward in spontaneous ways.

The secret to building lasting, institutional purpose in an organization? Involve everyone. The whole company–all levels, all departments. Workshops and ideation groups without guardrails–ignore budget, timing, and current products and services. That’s when the ideas really flow. It’s easier to take a big idea back down to earth than the other way around.

Most importantly: It’s not a project. Or a task force. Or CSR. It’s a philosophy that requires an ongoing, honest review to ensure everything we do points us toward that north star.

Ideate, evaluate, act. Lather, rinse, repeat.