A warning from Snap Inc. is rattling technology investors who have got used to turbocharged growth in ad spending on social media.
Executives from the maker of Snapchat said Thursday that supply-chain bottlenecks are prompting companies to hold back on online ad spend for the upcoming holiday season, meaning sales will rise by only around 30 per cent in the fourth quarter compared to analyst estimates of nearly 50 per cent.
The comments took the market by surprise and set the company’s stock on course for its biggest ever decline.
The announcement adds to growing concerns over whether the wall of money that’s been shifted from traditional marketing to social media in recent years is being well spent.
Social media will account for 39 per cent of ad budgets next year, even though they will only represent 21 per cent of daily media consumption, according to a study from industry researcher WARC on Thursday. The discrepancy adds up to a gap of US$94 billion, it said.
It’s been getting harder to judge whether social media ad spend is really working because Apple Inc. and Alphabet Inc.’s Google are making it more difficult for advertisers to track consumers online.
That also poses a risk to the revenues of Facebook Inc. and Twitter Inc. Shares in both companies dropped after the Snap announcement, reflecting concerns that some marketing budgets will simply be redirected from social media.
Europe’s biggest ad agency networks WPP Plc and Publicis Groupe SA traded flat to slightly higher on Friday.
There’s little sign that the broader transfer of advertising dollars to platforms like Instagram and TikTok will end soon, or that the global crisis in supply chains is leading brands to rethink their ad strategies.
Clients in consumer goods, retail, automotive and electronics “continue to spend, continue to shift spend to digital and there have been no instances of any pullbacks,” said Martin Sorrell, chairman of S4 Capital Plc. “The comments around supply chain issues simply don’t reflect what we are seeing. In fact, we are experiencing the opposite.”
Canadiens executive vice-president Jeff Gorton marks new era, meets Montreal media – Globalnews.ca
It’s been the talk of the town among sports fans for the past week: the Montreal Canadiens firing longtime general manager Marc Bergevin and bringing in Jeff Gorton as executive vice-president. The newly appointed VP met with the Montreal media for the first time Friday morning to mark the start of a new era.
The former New York Rangers general manager started by attempting to say a few sentences in French. When finished, he thanked owner Geoff Molson and said, “I hope that was OK.”
Gorton said working for the Habs is a dream. He feels like the Original Six franchise is a good fit, despite the fact that the Massachusetts-born VP grew up cheering for the Boston Bruins.
“You know, the Canadians broke my heart a lot of times. That’s my first memories, like in 1979, probably sticks out as the first one,” he told reporters.
Gorton insisted that he’s just starting out in his new role and he’s still getting a feel for the team. Regardless, the executive vice-president plans to work on player development and wants to add an analytics team.
“I do believe in analytics and I think that the way the game has gone, I think it’s a big piece of information that you need to have,” said Gorton.
A big piece missing from his qualifications is that Gorton doesn’t speak French. He said he’s learning — his wife even bought him lessons — and asks for patience.
“I wanted to be great at golf and I still stink. Right? So I will do my best,” he said, chuckling.
Fans seem to support his effort, saying it’s not language that will help the Habs get out of this season’s slump.
“He did some sentences in French this morning, so I think it’s a good step forward,” said fan Patrick Gervais.
The team is still looking for a French-speaking general manager to complement Gorton. Former Canadiens goalie Patrick Roy has expressed interest in the position. But Gorton says he has yet to draw up a shortlist, adding that it’s unlikely Bergevin’s successor will be named before Christmas.
“I don’t want to commit to anybody. I don’t want to say no to anybody so people can keep calling me if they like,” he said.
However, Global News hockey analyst Brian Wilde doesn’t expect Roy to get the job.
Instead, he said he thinks Molson and Gorton would like “someone who has a lot of experience in scouting and has some experience as an assistant general manager.”
“I think Mark Madden fits the role in Anaheim,” said Wilde.
Wilde says he liked what he heard from Gorton on Friday. But the executive vice-president kept his cards close so fans will have to wait to see what the Gorton era brings.
“I don’t think we got our answer to whether it’s going to be a full rebuild, and I think we’re going to have to wait just to see how many moves he makes,” said Wilde.
© 2021 Global News, a division of Corus Entertainment Inc.
Montreal real estate broker fined $1500 for English-language social media ad – CTV News Montreal
A Montreal real estate broker has picked up a hefty fine for posting a social media ad in English only.
REMAX Broker Qiang Zhong said he was issued the ticket of $1,500 by the Office québécois de la langue française (OQLF) over the post, which advertised one of his properties.
Zhong said he didn’t mind picking up the bill. “I know the government just wants to promote a French language,” he said. “I don’t have any personal emotion against this stuff.”
The fine came from a violation of Article 52 of Quebec’s French Charter, which states that, “catalogues, brochures, folders, commercial directories and any similar publications must be drawn up in French.”
The OQLF said it became aware of the infraction after a complaint on Oct. 23, 2019.
Zhong said he’s been working as a broker in Montreal for more than a decade after moving here from China, where he’s used to navigating between languages: Mandarin, the official language of Mainlaind China, and Cantonese, which is also common in his home province of Guangdong.
He said he’s still connected with his home communities, and has helped several new Chinese immigrants find homes in Montreal. He said he also encourages newcomers to learn French — the province’s official language.
“Even though I got the bill, I still love Montreal,” he said. “I could get double or triple the money in Toronto in Vancouver, but I want to stay here.”
He also said the ad brought prospective buyers to the REMAX website, which can be viewed in both French and English.
Watch Live: Canadiens’ Jeff Gorton addresses the media – Sportsnet.ca
Editor’s note: This stream has now ended.
For the first time since assuming the role of executive vice president of hockey operations for the Montreal Canadiens, Jeff Gorton will speak with the media — and his comments can be seen in their entirety right here on Sportsnet, starting at approximately 10:00 a.m. ET.
Gorton took on the role amid seismic changes to the Canadiens’ front office, including the departure of longtime general manager Marc Bergevin, and will be tasked with charting a course back to contention for Montreal, which has followed up a fabled run to the Stanley Cup Final with a troubled first quarter to 2021.
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