April 12 2023 - Roundin' up

👋Hello friends – It's me, your neighborhood news cowboy. I'm here with your Wednesday roundup, fresh like a warm cup of coffee.

Al Jaffee, a cartoonist who created the Fold-In feature in Mad magazine, died in Manhattan at the age of 102. He first created the fold-in in 1964, which was an illustration-with-text feature on the inside of the magazine's back cover that transformed into something unexpected when folded, often with an "authority-defying" message. Jaffee's other memorable contributions to Mad included "Snappy Answers to Stupid Questions" and won cartooning's top honor, the Reuben Award in 2007.

Warner Bros. Discovery CEO David Zaslav is launching a new streaming service after emphasizing that he was less enthusiastic about streaming than his predecessor, Jason Kilar. Zaslav's approach is focused on broadening the company's content offerings, including boosting the number of theatrical releases and creating content for rival media companies. He believes that making a movie that will only live on a streaming service is a waste of resources, arguing that movies with theatrical releases, even those that didn't perform well at the box office, do better on streaming platforms. His playbook has inspired rivals such as Disney and Paramount to re-evaluate their streaming business models.

Garry Tan, the new CEO and President of Y Combinator, has faced backlash from founders following his decision to close the fund investing in mature startups in order to focus on younger companies. Ten startups, including Brex and Deel, both YC graduates, expressed their disappointment and surprise in a letter to YC on March 14th, requesting that former YC partners Anu Hariharan and Ali Rowghani, who led the closed Continuity fund, be kept on as board members. The controversy marks a rare criticism of the esteemed startup accelerator known for supporting early-stage companies such as Airbnb, Stripe, and Instacart.

According to court filings from an ongoing lawsuit, Twitter, Inc. has been merged into X Corp, the company owned by Elon Musk. X Corp is part of Musk’s plan to create an everything app called “X,” which he has claimed is accelerated by the acquisition of Twitter by “3 to 5 years.” The billionaire has previously described his goal for a “blockchain social media system that does both payments and short text messages/links like Twitter.” The X app is expected to be heavily monetized and a closed environment where users are expected to stay engaged at all times. Loomer’s lawsuit against Twitter is ongoing despite Musk having reinstated her account.

TikTok is testing a new Explore tab that would replace the Friends tab, indicating the platform's focus on content discovery rather than real-life friendships. The Explore tab would feature a grid of videos for users to scroll and explore, though it is unclear how it would suggest content. The new feature could also serve as a platform for ads, much like Instagram Explore. The Friends tab is currently the default experience for all users, but TikTok has confirmed that the test of the Explore Feed experience is underway globally with select users.

Instagram is expanding its creator marketplace by allowing access to parts of it via API and brand agencies. This will make it easier for brands to discover and collaborate with creators on the third-party creator marketing platform they already use. Instagram launched the creator marketplace in July 2022 as a hub for brands to find and contact creators for partnerships and campaigns. The first API allows brands to reach creators in a priority inbox, and the second allows them to publish structured project briefs to the marketplace directly from a third party. Brand agencies will now have dedicated access to the marketplace and can filter creators by demographics and engage with them directly.

Netflix has partnered with fashion brand Lacoste to release a collection of genderless clothing inspired by some of Netflix's most popular shows including Stranger Things, Bridgerton, Lupin, The Witcher, and Sex Education, among others. The collection features the iconic crocodile of Lacoste donning costumes from the shows, such as a Demogorgon for Stranger Things and an oversized wig for Queen Charlotte in Bridgerton. The Lacoste x Netflix Collection will be available in select Lacoste stores, Lacoste.com and Netflix.shop. This collaboration expands Netflix's push for brand partnerships outside of streaming.

• Etsy has put out a request for proposals for its creative advertising business, according to sources. Its incumbent agency, 72andSunny, won an RFP for Etsy's holiday campaign in early 2020, and has since been responsible for several of the site's main brand campaigns. Etsy reportedly spent over $581m on worldwide advertising expenses in 2022, a rise from over $559m spent in 2021 and over $442m spent in 2020.
• GUT, the global independent creative network, has appointed Pedro Porto, former director of Twitter Next Latin America, as its Chief Content Officer. In the newly created role, Porto will lead GUT's content department, which was launched last year and focus on North America in the US and Canada. He will help clients identify opportunities to create content that makes them more relevant to audiences and building impactful brand experiences driven by brave and creative approaches. Porto will report to Andrea Diquez, GUT's global CEO.
• Ford is moving a large portion of its social agency-of-record duties back to WPP and Wieden+Kennedy, taking them away from VaynerMedia. Ford Blue, which is responsible for selling the automaker's gas and hybrid vehicles, will now be handled by WPP and W+K, while VaynerMedia will remain responsible for social media related to Ford Pro. The decision to move social responsibilities to WPP and W+K appears to be a consolidation play. Ford decreased its global advertising spend to $2.2bn in 2022 from $3.1bn in 2021, and the automaker continues to search for a new chief marketing officer.
• Substack has launched its new feature called "Notes," which allows users to share short posts with no character limit, images, and links. The feature will be separate from Substack's full newsletters and threads, and it will appear in its own tab. Users can interact with other notes by using like, reply, and "restack" (retweet) buttons. The feature could prove to be an alternative for Substack writers who are looking for a new place to post after Twitter marked Substack links as unsafe. However, Substack spokesperson Helen Tobin stated that Notes is a tool for Substack writers to reach audiences who are already invested in the Substack ecosystem and are just one click away from a subscription.

• The Super Mario Bros Movie has provided Nintendo with a significant content marketing opportunity, as the film's success has led to an increase in interest in Mario games and opened up new revenue streams. The movie's release resulted in a massive surge in Twitch viewership of Mario game content, much like the lift in popularity experienced by other successful video game adaptations. Nintendo's cinematic universe has also created possibilities for merchandising and partnerships with other brands, including Super Nintendo World at Universal Studios and Shake Shack.
• According to a Digiday+ Research survey of 138 brand and agency professionals, brands and agencies believe that influencers are still a worthwhile marketing channel despite the fluctuations in social media platforms. Both agency clients and brands are investing more in influencer marketing than they were a year ago, with 76% of agency  and 73% of brand  spending on influencers in Q1 2023. Confidence in influencers' ability to drive marketing success has remained steady over the past year, with 79% of both agency and brand pros expressing at least slight confidence.
• OpenAI has launched a Bug Bounty Program, inviting security researchers, ethical hackers, and technology enthusiasts to identify and report vulnerabilities in their AI systems. The program is aimed at making their technology safer and secure for everyone. OpenAI has partnered with Bugcrowd, a leading bug bounty platform, to manage the submission and reward process, which will offer cash rewards ranging from $200 for low-severity findings to up to $20,000 for exceptional discoveries.
• Digital advertising revenue in the US increased by 10.8% to $209.7 billion in 2022, according to a report from the Interactive Advertising Bureau and PricewaterhouseCoopers LLP. However, this growth was slower than the 35% increase in 2021, as the industry faced headwinds from the economy and evolving privacy regulations, such as those from Apple Inc. Nonetheless, ad-supported streaming video and retail media networks were key drivers of growth.
• HOK's CEO and architect, Bill Hellmuth, has passed away at the age of 69 after a long illness. Hellmuth was known for his hands-on approach to designing buildings and oversaw dozens of projects across 20 countries during his career at HOK, including the Abu Dhabi National Oil Company Headquarters and the King Abdullah Petroleum Studies and Research Center in Riyadh.
• Over 50,000 US retail stores are projected to close over the next five years due to increasing e-commerce and operating costs. The most closures are expected to come from specialty retailers, with clothing stores and consumer electronics making up almost half of the total projected closures. According to UBS analysts, the closures could increase if sales growth slows below long-term trends. Larger retailers such as Walmart, Costco, and Target are expected to benefit from the closure of smaller chains and independent retailers.
• Google has added a new feature to Google Bard that suggests related topics when the "Google it" button is clicked instead of directly taking users to Google Search. This new section will offer users more options to explore a broader range of interests. In addition, Google is publishing a release notes document to keep users informed about the changes made to Bard. Jack Krawczyk, who leads the Google Bard team, shared this update on Twitter, while a screenshot revealed an experiments updates page showing what's new with Google Bard.
• Nintendo Live 2023 will take place in Seattle this September, featuring gameplay from Nintendo games, live stage performances, game tournaments, and other Nintendo-themed activities. This announcement comes after E3's cancellation due to several big-name game companies dropping out of the event, including Microsoft and Ubisoft who opted for their own in-person ones. Nintendo of America president Doug Bowser said the event will expand the scope of Nintendo's unique games, characters, and worlds on Nintendo Switch, giving attendees a chance to celebrate together with family, friends, and the broader Nintendo community.
• The popular YouTube channel Lofi Girl has added a new "synthwave radio" stream featuring a new character, who is unnamed but wears a purple sweater and has a dog.  The Lofi Girl channel now features three streams: "synthwave radio", "lofi hip hop radio", and "lofi hip hop radio - beats to sleep/chill to".

• The US Commerce Department has requested public comment on accountability measures for AI, seeking advice on how to advise policymakers to approach the technology. The department wants to establish guardrails that would enable the government to determine whether AI systems perform as claimed by companies, are safe and effective, or spread misinformation or perpetuate bias. The NTIA is seeking feedback from researchers, privacy and digital rights organizations, and industry groups and looking establish accountability mechanisms for AI that would be as important as financial audits.
• Netflix is expected to appoint Mediahub as its UK media agency of record, following a pitch process that included Dentsu, Goodstuff and VCCP Media, as well as incumbent Wavemaker, which was knocked out earlier in the process. While contracts are still being finalised, it is understood that Netflix and Mediahub have not yet cemented their relationship. The streaming service launched its ad-supported tier last year, priced at £4.99 ($6.90), which media buyers said was "extraordinarily bullish."
• The California economy, which has been a powerhouse, is struggling to keep its footing. Tech companies, supply chain logistics and entertainment industries have been hit hard and thousands of Californians have been laid off in the last few months. This has led to the state’s $100 billion surplus turning into a $22.5 billion deficit. Even with a healthy rainy-day fund, the state’s fiscal outlook could cloud over progressive proposals that have been widely supported by Democrats.
  

via projectmemager

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