May 12 2023 - Friday Freedom

👋Happy Friday, and what a week. There is a lot to roundup, so we're pushing the Weekly Video to next week. That being said, I'll take a relatively light Friday post. Have a great weekend everyone!

Quick Take

• Peloton can't seem to get it right
• Netflix going virtual for Upfronts
• S4 bounces back on earnings
• Twitter has a new CEO?

Netflix has decided to shift its upfront presentation to a virtual format, which is being seen as a "rookie move" by ad leaders. The decision came amidst the WGA strike and concerns about safety due to planned protests. However, other network groups planning upfront pitches have not expressed similar concerns. Competitor networks, such as NBCUniversal and Disney, believe their events will proceed safely with necessary precautions. Warner Bros. Discovery and Fox have confirmed their in-person presentations as planned. Ad leaders view Netflix's decision as inexperienced and note previous missteps in its ad-supported product launch. Despite the change to a virtual format, advertisers are still expected to be willing to buy Netflix inventory.

Airbnb plans to significantly increase its spring marketing spend in order to attract young budget travelers.  The company aims to increase its marketing activity in the first half of the year, with marketing spend set to rise from 18% in Q2 2022 to 22% in Q2 2023. Airbnb had previously reduced marketing spend during the pandemic but saw success with brand marketing campaigns in 2022. Despite the positive financial performance in Q1, Airbnb's share price fell over 10%.

Peloton is recalling 2.2 million exercise bikes sold in the US due to faulty seat posts that could break and cause injuries. The company received 35 reports of the seat posts breaking and detaching, resulting in 13 injuries. The affected bikes were sold between January 2018 and May 2023. Customers are advised to stop using the bikes immediately and contact Peloton for a free repair. Peloton's shares fell following the announcement, and the company has been struggling to sell its unsold web-connected bikes and treadmills. This is the second major recall for Peloton, following a recall of its treadmills two years ago.

Twitter is poised to name Linda Yaccarino, NBCUniversal's chairman of global advertising and partnerships, as its CEO, according to sources. This move could signal a shift in the tech and media landscape, as Yaccarino is expected to bring her expertise in advertising and partnerships to help attract advertisers back to the platform. Elon Musk, the current CEO, announced the hiring on Twitter but did not disclose Yaccarino's name. With Twitter facing challenges in ad revenue and advertiser trust, Yaccarino's appointment could provide a fresh perspective and potentially drive growth for the platform.

• S4 Capital, the parent company of MediaMonks, reported a 26.5% increase in billings to £455.9m ($627.8m) in Q1 2023. Revenues for the same period reached £261.7m ($360.3m), up 26.5% YoY. The company noted strong performance in net revenue growth, with technology services leading the way at 414.7%. S4 Capital aims for 8-12% net revenue growth and a 15-16% operational EBITDA to net revenue margin for the full year. The Americas showed the highest growth, while EMEA and Asia Pacific experienced declines. The company expects progress throughout 2023 and identified potential significant partnerships.

• Twitch's Chief Marketing Officer, Rachel Delphin, discussed the platform's stability, AI integration, and expansion into non-gaming streams in an interview with Campaign Asia. Twitch underwent significant changes, including layoffs and a CEO transition, but Delphin reassured marketers that the platform remains stable. They highlighted upcoming events like TwitchCon and new tools for creators to demonstrate Twitch's commitment to advertisers. Delphin also emphasized Twitch's differentiation from other gaming platforms, focusing on live streaming as their core offering. While AI integration is still in early stages, Delphin sees potential in using generative AI for content creation and expects it to bring innovative opportunities, particularly within the gaming community.
• Dogstudio/DEPT® has appointed Laura Cortes as its new Executive Creative Director. Cortes brings a diverse background in creative direction, interactive storytelling, AR, and emerging tech, having worked with brands like adidas, TikTok, Google, and Netflix.
• Google has introduced Geospatial Creator for Unity, a platform that enables developers to preview 3D assets through the Unity Editor. The toolkit utilizes ARCore and Photorealistic 3D Tiles via the Google Maps Platform, allowing users to select locations, retrieve 3D geometry, and navigate virtually-produced maps. The platform supports the development of augmented reality experiences and can be used by gaming firms, city planners, construction companies, and news agencies.

• Brands are increasingly relying on creators to serve as social media strategists, utilizing their expertise in crafting effective social content rather than just leveraging their large followings. Agencies like Edelman have introduced programs like the "Creator Bench" to connect brands with creators who can produce high volumes of short-form video content for social media channels. This shift comes as brands recognize the need to keep up with the demand for short-form video content.
• Teresa Barreira, the global CMO of Publicis Sapient, has mandated that teams in her organization incorporate generative AI into their work. Barreira believes the technology can enhance and augment their work, improving speed and content quality. Barreira emphasizes that while AI is valuable, humans should still make final decisions. She also highlights the importance of considering ethics and originality.
• Warren Buffett's skepticism about the auto industry's transition to electric vehicles is being proven right as several EV startups, including Polestar, Lucid, and Fisker, have cut their outlooks for 2023. Polestar cited software delays and deteriorating market conditions for its revised timeline. While Polestar benefits from the support of dominant shareholders Volvo and Geely, other startups like Lucid and Fisker have faced challenges, including weakening demand and production setbacks. Rivian, on the other hand, maintained its 2023 production target and narrowed its quarterly gross loss. The varying performance of these EV startups highlights the risks and uncertainties in the industry.
• Google's Project Starline, a glasses-less 3D video conferencing booth, offers an innovative solution to remote worker connection. It utilizes depth cameras, AI-aided 3D modeling, and a light field display to create an immersive video conferencing experience. Although still in development, the updated prototype aims to make it easier for businesses to adopt the technology. The demo showcased the ability to engage with others and focus solely on the person in front of you.

• Twitter has launched its long-promised encrypted direct messaging feature, but with significant limitations. The feature, aimed at making Twitter the "most trusted platform on the internet," only works for verified users, including Twitter Blue subscribers and accounts affiliated with verified organizations. Both the sender and recipient must be verified, and the sender needs to opt-in to use the feature. Encryption is currently limited to text or links and does not work for group messages. The feature does not encrypt message metadata, and it is not protected against potential compromises by insiders or legal processes. Twitter CEO Elon Musk cautioned users to try the feature but not to fully trust it yet.
• Members of the  WGA will picket Warner Bros. Discovery President & CEO David Zaslav's commencement speech at Boston University on May 21. The WGA had warned the school that they would picket if Zaslav was allowed to speak. The picketing comes amid the ongoing strike by the WGA, which began on May 2 due to failed negotiations with the Alliance of Motion Picture and Television Producers. The strike is centered around issues such as compensation, minimum staffing, and the use of artificial intelligence in script creation.
• Epic Games has announced that it has invested in digital fashion company CLO Virtual Fashion. The specific details of the investment were not disclosed. This partnership highlights Epic's interest in virtual fashion as part of its larger metaverse ambitions. CLO Virtual Fashion provides fashion design software that integrates with Epic's Unreal Engine and operates a marketplace for buying and selling garment designs. Epic wants to expand the use of Unreal Engine beyond game development, and incorporating industries like fashion aligns.
• Pinterest is merging its Pins and Idea Pins into a single format, offering a streamlined creation flow for video and static image content. The update includes new editing features, measurement tools, safety features, and engagement tools. Creators can easily edit, publish, and measure their content, while advertisers can continue using various ad formats

• Meta has announced that the Facebook Messenger app for Apple Watch will be discontinued at the end of May. Users will no longer be able to reply to messages from their Apple Watch but will still receive notifications. Meta did not provide a specific reason for the decision, but it aligns with the trend of other third-party apps discontinuing their support for watchOS due to low usage or redundancy. Apple has shifted its focus on the Apple Watch towards fitness and health features, and rumors suggest a redesign of the watchOS interface to prioritize interactive widgets over dedicated apps.
• Google is revamping the Google Play Store with new AI features aimed at optimizing apps. These updates include a Generative AI tool for drafting app listings, Review Summaries to synthesize user comments, and a machine translator for app translations. The goal is to enhance app publishing and marketing, providing developers with more tools to grow their businesses. Google is also planning updates to offer customized store listings and incentives for less active app users.

• Phil Rynda Joins Pokémon Company As Director Of Original Animation
• AI Can’t Save Snapchat From Itself
• BET+ to launch ad tier as brands seek Black audiences
• UNIT Studios Hires Executive Producer Phil McCluney
• Adidas will sell Yeezy shoes and donate proceeds
• iHeartMedia launches branded podcast studio as buyers say distribution and scale are key
• Artifact is taking on Twitter and Substack by letting you follow writers

Teenage Engineer does it again

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