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Media Beat: January 04, 2021 – FYI Music News

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The Top 10 Marketing Follies of 2020

As readers well know, the column is a big fan of Ad Contrarian Bob Hoffman. His blogs and books are fountains of useful info about the business, laced with a caustic viewpoint that is rarely matched in the profession. His latest newsletter, emailed to readers Sunday, points a sharp stick at the Top 10 marketing follies of 2020. At least, in Bob’s informed view. For now, he is no longer accepting new subscribers to his weekly blast, but you can take a look at some of his previous writings and peruse his website here.  

2020 was the year the marketing industry zoomed its way to nowhere. Once again, we pretended to know what the hell we’re doing, and the business community pretended to believe us. Hey, we’re all in this together, right?  Today we look back at some of the advertising and marketing foolishness that made 2020 such a comically horrible year.

In no particular order, here are my Top Ten Favorite Marketing Follies of 2020.

#1: Gwyneth Paltrow’s Vagina Comes Up Roses

In January, the big marketing story was about Gwyneth Paltrow launching a new candle on her Goop website called “This Smells Like My Vagina.”  We should have known 2020 was going to be The Year of the Imbecile when the candle, priced at $75, immediately sold out.

I wrote at the time, “For the record, I have nothing against vaginas. As a matter of fact, I’m quite fond of the little guys. While I am by no means an expert on the subject, I do like to think of myself as a talented amateur. But let’s get practical. If you need a candle, and you like the wonderful scent of vagina, why not go to the hardware store, buy yourself a candle for 99¢ then head over to a yoga class in Berkeley? You’ll save 74 bucks and get all the vagina smell you’ll ever need.”

#2: Mark Zuckerberg Wants To Be Understood

If Mark Zuckerberg had grown up on your block he would’ve been known as “that creepy Zuckerberg kid.” He would have been suspected of starting fires and torturing cats. Earlier this year he gave us a peek at what goes on under that disturbing haircut.

In a call with shareholders, the Z-Man announced “My goal for the next decade isn’t to be liked but to be understood.” Poor thing is misunderstood. My heart goes out…

I wrote at the time: “Can you imagine…the degree of self-absorption, the infantile self-pity that it takes to make such a statement?

I don’t think Z-bag has to worry much about being liked. As for being understood, like all cheats and liars, the reason he is repellent is not because he’s misunderstood. It’s because he’s understood all-too-well.

#3: Google Engineers Can’t Figure Out Their Privacy Controls Either

We’re not as stupid as we think! Well, you’re not anyway.

You know how Google and friends keep feeding us horseshit about how easy it is to protect our data by using their privacy controls? And you know how when you try to use those privacy controls you get lost in an impenetrable vortex of bewildering options and incomprehensible terminology?

It turns out Google engineers can’t figure this shit out either. Documents released in a lawsuit filed by the State of Arizona against Google this year revealed that Google engineers said…

   – “The current UI feels like it is designed to make things possible, yet difficult enough that people won’t figure it out.”

   – “Add me to the list of Googlers who didn’t understand how this worked…”

#4: Uber Flushes $100 Million Down Online Ad Toilet

Among the many stories of clueless “performance marketers” getting their shorts swiped by the crooks who have colonized the programmatic advertising dreckosystem, my favorite came from Uber.

Kevin Frisch, the former head of performance marketing and CRM at Uber, told the tale of how ad fraud (specifically attribution fraud) ate at least $100 million of Uber’s $150 million online ad budget…

“We turned off 2/3 of our spend, we turned off 100 million of annual spend out of 150, and basically saw no change…”

Most “performance marketers” have no idea how deeply they’re being penetrated by online ad fraud. They don’t even know where to look. They have no clue how untrustworthy or irrelevant the numbers they’re getting are. Listening to Frisch tell his story brings it all to life.

Perhaps the most deeply disturbing aspect of his story was his description of how nobody gave 1/10 of a flying shit how much money was being pissed away.

#5. Mark Read Tells The Truth

Mark Read, CEO of WPP, the world’s largest agency holding company, was guilty of the one unpardonable sin in the ad aristocrat handbook. He accidentally told the truth.

On a call with analysts in August, Read said… “the average age of someone who works at WPP is less than 30. They don’t hark back to the 1980s, luckily.”

In doing so, Read acknowledged out loud and in public something that ad industry hotshots have been denying for years — their brazen flouting of laws forbidding age discrimination. Read then spent weeks stumbling in his underwear issuing feeble apologies and pretending that what he said wasn’t really what he said.

The worst kept secret in the ad business is the enthusiasm with which agency honchos create fictitious rationales for getting rid of older, higher-paid employees. As a result, instead of having the best quality talent create their advertising, marketers have been conned into wasting billions of dollars on idiotic schemes concocted by bumbling amateurs and posers.

The demographic cleansing of experienced, talented people in favor of young, cheap  people in the ad industry is not without its consequences:
   – Marketers are virtually unanimous in believing that advertising is not as effective as it once was.   – Consumer perceptions of the ad industry are at an all-time low.
   – It is widely acknowledged that creativity in advertising has become abysmal.
   – Ad fraud and the acceptance of unsavory practices have become normalized.
   – The remarkable growth of streaming TV services illustrates that people will pay anything these days to avoid advertising. 

#6: Facebook Removes A Few Accounts

This year the Financial Times reported that in the first 9 months of 2019 Facebook had to remove 5.4 billion (yes, with a b) fake accounts.

Assuming the rate of fraud continued into the 4th quarter, this would mean 7.2 billion fake Facebook accounts had to be removed in one year. That’s about one fake account for every man, woman, child, and social media director on earth.

And that’s just the fake accounts they found and acknowledged — from an enterprise not famous for finding and acknowledging anything fake.

#7: Show Me The Money

It’s 9 am. Do you know where your ad budget is?

In May, the ISBA (UK’s equivalent of the US Association of National Advertisers) released a study conducted for them over a two year period by PwC that unambiguously laid out the absurd wastefulness of the hideous adtech “ecosystem.” Highlights of the report:

– Fifty percent of all online media dollars are being siphoned off by the adtech   – “ecosystem” before they reached publishers. According to the Financial Times, of the 50% of the budgets that are siphoned off, about 1/3 of the dollars “were completely untraceable.” In some cases, the untraceable costs were as high as 83%. This means the money just evaporated into the adtech black box without a trace.
   – Only 12% of the ad dollars were completely transparent and traceable. An astounding 88% of online ad dollars could not be traced from the buyer to the publisher.

But wait. It gets better. The researchers only studied results from the most sophisticated, most demanding advertisers like Disney, Unilever and Nestlé. “It’s important to realise that this study represents the most premium parts . . . the highest profile advertisers, publishers, agencies and adtech,” said the leader of the study from PwC. From the director-general of the ISBA, “The market is damn near impenetrable”

#8: Unfluencers

In March, The New York Times reported on a group of people who get everything about product success wrong. No, I’m not talking about MBAs.

I’m talking about consumers known as “harbingers of failure.” These people are “a quirky subgroup of consumers who are systemically drawn to flops and whose…tastes can be used to forecast bad bets in retail sales, real estate and even politics.”

These “harbingers” not only choose to buy products that are losers, they tend to move into neighborhoods that attract people like them. “Property values in harbinger ZIP codes consistently underperform the broader market.” They also tend to support political candidates who are destined to lose.

The good news is that this disease isn’t contagious. While they tend to cluster around each other, they don’t seem to influence non-harbingers. “It’s not a contagious thing.” says Professor Catherine Tucker of MIT, one of the authors of the study, “It’s an inherent characteristic. They like that odd house. That political candidate everyone else finds off-putting. They like Watermelon Oreos.”

#9: Mondelēz Discovers Humans

Toward the end of 2020, Mondelēz, the company with the worst name in the history of bad names, added to their portfolio of lunacy by introducing “a unique approach” to marketing. They called it “Humaning.”  Yes, you’re right — you can’t make this shit up.

According to Morondelēz, “Humaning is a unique, consumer-centric approach to marketing that creates real, human connections with purpose, moving Mondelēz International beyond cautious, data-driven tactics, and uncovering what unites us all. We are no longer marketing to consumers, but creating connections with humans.”  Apparently, before the introduction of Humaning, Mondelēz was creating connections with squirrels and ducks.

The New York Times quoted your humble blogweasel on the subject of Humaning: “There is not another industry in the world that would tolerate this horseshit. In any sober industry the perpetrators of this nonsense would be taken out back by grown-ups and beaten to a pulp. Then they’d beat up on the pulp.”

#10: BK’s Award-Winning Moldy Whopper

The ad world spent February arguing, philosophizing, and hyperventilating over a campaign for Burger King’s Whopper. The campaign centered around a Whopper which was left for 30 days to go all moldy, proving — I don’t know, something about preservatives.

I’m sure your average Burger King customer is terribly concerned about preservatives.

Advertising and marketing critics complained that the campaign would have the opposite of its intended effect by making the Whopper look repulsive and disgusting. Nonetheless, it was a big favorite among ad award grandees, none of whom, I guarantee, has ever been within smelling distance of a Burger King.

I am of a different opinion. I think the FTC needs to investigate Burger King as purveyors of false advertising. Compared to the real thing, the Moldy Whopper presents a falsely attractive image of the product.

Let’s block ads! (Why?)



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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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August 23, 2024

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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August 23, 2024

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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Trump Media & Technology Group Faces Declining Stock Amid Financial Struggles and Increased Competition

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August 20, 2024

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Trump Media & Technology Group’s stock has taken a significant hit, dropping more than 11% this week following a disappointing earnings report and the return of former U.S. President Donald Trump to the rival social media platform X, formerly known as Twitter. This decline is part of a broader downward trend for the parent company of Truth Social, with the stock plummeting nearly 43% since mid-July. Despite the sharp decline, some investors remain unfazed, expressing continued optimism for the company’s financial future or standing by their investment as a show of political support for Trump.

One such investor, Todd Schlanger, an interior designer from West Palm Beach, explained his commitment to the stock, stating, “I’m a Republican, so I supported him. When I found out about the stock, I got involved because I support the company and believe in free speech.” Schlanger, who owns around 1,000 shares, is a regular user of Truth Social and is excited about the company’s future, particularly its plans to expand its streaming services. He believes Truth Social has the potential to be as strong as Facebook or X, despite the stock’s recent struggles.

However, Truth Social’s stock performance is deeply tied to Trump’s political influence and the company’s ability to generate sustainable revenue, which has proven challenging. An earnings report released last Friday showed the company lost over $16 million in the three-month period ending in June. Revenue dropped by 30%, down to approximately $836,000 compared to $1.2 million during the same period last year.

In response to the earnings report, Truth Social CEO Devin Nunes emphasized the company’s strong cash position, highlighting $344 million in cash reserves and no debt. He also reiterated the company’s commitment to free speech, stating, “From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing.”

Despite these assurances, investors reacted negatively to the quarterly report, leading to a steep drop in stock price. The situation was further complicated by Trump’s return to X, where he posted for the first time in a year. Trump’s exclusivity agreement with Trump Media & Technology Group mandates that he posts personal content first on Truth Social. However, he is allowed to make politically related posts on other social media platforms, which he did earlier this week, potentially drawing users away from Truth Social.

For investors like Teri Lynn Roberson, who purchased shares near the company’s peak after it went public in March, the decline in stock value has been disheartening. However, Roberson remains unbothered by the poor performance, saying her investment was more about supporting Trump than making money. “I’m way at a loss, but I am OK with that. I am just watching it for fun,” Roberson said, adding that she sees Trump’s return to X as a positive move that could expand his reach beyond Truth Social’s “echo chamber.”

The stock’s performance holds significant financial implications for Trump himself, as he owns a 65% stake in Trump Media & Technology Group. According to Fortune, this stake represents a substantial portion of his net worth, which could be vulnerable if the company continues to struggle financially.

Analysts have described Truth Social as a “meme stock,” similar to companies like GameStop and AMC that saw their stock prices driven by ideological investments rather than business fundamentals. Tyler Richey, an analyst at Sevens Report Research, noted that the stock has ebbed and flowed based on sentiment toward Trump. He pointed out that the recent decline coincided with the rise of U.S. Vice President Kamala Harris as the Democratic presidential nominee, which may have dampened perceptions of Trump’s 2024 election prospects.

Jay Ritter, a finance professor at the University of Florida, offered a grim long-term outlook for Truth Social, suggesting that the stock would likely remain volatile, but with an overall downward trend. “What’s lacking for the true believer in the company story is, ‘OK, where is the business strategy that will be generating revenue?'” Ritter said, highlighting the company’s struggle to produce a sustainable business model.

Still, for some investors, like Michael Rogers, a masonry company owner in North Carolina, their support for Trump Media & Technology Group is unwavering. Rogers, who owns over 10,000 shares, said he invested in the company both as a show of support for Trump and because of his belief in the company’s financial future. Despite concerns about the company’s revenue challenges, Rogers expressed confidence in the business, stating, “I’m in it for the long haul.”

Not all investors are as confident. Mitchell Standley, who made a significant return on his investment earlier this year by capitalizing on the hype surrounding Trump Media’s planned merger with Digital World Acquisition Corporation, has since moved on. “It was basically just a pump and dump,” Standley told ABC News. “I knew that once they merged, all of his supporters were going to dump a bunch of money into it and buy it up.” Now, Standley is staying away from the company, citing the lack of business fundamentals as the reason for his exit.

Truth Social’s future remains uncertain as it continues to struggle with financial losses and faces stiff competition from established social media platforms. While its user base and investor sentiment are bolstered by Trump’s political following, the company’s long-term viability will depend on its ability to create a sustainable revenue stream and maintain relevance in a crowded digital landscape.

As the company seeks to stabilize, the question remains whether its appeal to Trump’s supporters can translate into financial success or whether it will remain a volatile stock driven more by ideology than business fundamentals.

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