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Linda Yaccarino Faces Uphill Battle to Save Twitter from Hate, Racism, and Extreme Anti-Semitism

By
Pesach Lattin
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0

In the wake of a series of controversies and mounting concerns over hate speech, racism, and extreme anti-Semitism on Twitter, all eyes are now on Linda Yaccarino, the newly appointed CEO, to see if she can save the platform from its current state of toxicity.

Yaccarino’s arrival comes amid a sharp decline in ad revenue as major corporations distance themselves from the social media giant, fearing its association with hate-filled content under Elon Musk’s ownership.

Since Musk’s acquisition of Twitter in October 2022, the platform has witnessed a disturbing surge in antisemitic posts, according to research conducted by CASM Technology and the Institute for Strategic Dialogue.

The analysis revealed a “major and sustained spike” in English-language antisemitic tweets, with the weekly average increasing by 106 percent in the three months after Musk’s takeover. This concerning trend has prompted high-profile Jewish organizations to criticize Twitter for its lack of proactive response to the issue.

The responsibility to address this situation now falls on Linda Yaccarino, a seasoned media executive known for her tough negotiating style and deep industry relationships. However, some skeptics suggest that Yaccarino’s appointment may be an attempt by Musk to deflect blame, while he himself lacks the desire to control the platform’s anti-Jewish rhetoric.

Ironically, Yaccarino’s previous stance on social media’s unpredictability and the potential hazards it poses to advertisers may now come back to haunt her. As the former chief advertising executive of NBCUniversal, she had warned about the lack of brand safety and the erosion of trust associated with user-generated content on social media platforms. Her task now is to convince those same advertisers to return to Twitter, despite their concerns about its toxic environment.

Yaccarino’s vast experience and industry knowledge make her well-suited for the job, according to Sir Martin Sorrell, founder of marketing services giant WPP. Having spent time with Yaccarino at advertising events, Sorrell believes she understands the needs of advertisers in both traditional and digital contexts. However, the challenge remains formidable, as Twitter’s ad sales have plummeted from approximately $5 billion to what some estimate is under $1 billion due to brands hesitating to align themselves with Musk’s relaxed content moderation policies.

The relationship between Musk and Yaccarino has already shown signs of tension, with the new CEO cautiously criticizing Musk’s decision-making and his late-night Twitter activity. While Yaccarino suggested holding Musk to a higher standard of conduct due to his ownership of the platform, Musk defended his commitment to freedom of speech. This disagreement raises questions about the extent to which Yaccarino will be able to steer Twitter’s course without hindrance.

Critics have also scrutinized Yaccarino’s background, looking for hints about her potential decision-making strategy. As chair of the taskforce on the future of work at the World Economic Forum, she has faced conspiracy theories and criticism from some quarters. Concerns have been raised about her potential impact on Twitter’s absolutist free speech policy, given her involvement with events criticized by Musk. However, Musk has urged critics to give Yaccarino a chance while reiterating his commitment to preserving free speech on the platform.

Yaccarino’s task to revitalize Twitter’s advertising business is undoubtedly challenging. With her deep industry connections and professionalism, she possesses the necessary qualifications to lead the platform’s resurgence. However, the crucial question remains: Will Musk provide her with enough autonomy to address the brand safety issues that advertisers are deeply concerned about?

As Yaccarino takes the helm of Twitter, her primary focus will be to rebuild trust with advertisers who are increasingly wary of associating their brands with a platform tainted by hate and controversy. The decline in ad revenue, coupled with the exodus of major corporations, has dealt a severe blow to Twitter’s financial prospects. The company’s reputation as a safe advertising environment has been tarnished, and it will be Yaccarino’s responsibility to restore faith in the platform.

Yaccarino’s extensive industry experience and her ability to forge strong relationships with advertisers give her an advantage in this uphill battle. Her tenure at NBCUniversal and Turner Broadcasting has equipped her with a deep understanding of the advertising landscape and the challenges faced by brands in the digital age. She has successfully navigated the complexities of the media industry, and her negotiation skills have earned her the nickname “Velvet Hammer.”

However, Yaccarino’s task is not simply to woo advertisers back to Twitter; it is also to address the underlying issues of hate speech, racism, and extreme anti-Semitism that have plagued the platform. While Twitter has taken steps to combat these problems in the past, the recent surge in hateful content demands a more proactive approach.

The question of whether Yaccarino can truly save Twitter from its toxic environment goes beyond her professional capabilities. It delves into the intentions and actions of Elon Musk, the platform’s owner. Musk’s commitment to freedom of speech has been at odds with the need to regulate harmful content, and this ideological clash has fueled concerns about his willingness to tackle the platform’s underlying issues.

Musk’s decision to appoint Yaccarino as CEO could be seen as an attempt to shift blame or appease critics. While Yaccarino’s reputation may suffer if Twitter’s anti-Jewish rhetoric remains unchecked, it ultimately falls on Musk to demonstrate a genuine commitment to combating hate speech and fostering a more inclusive online community.

The road ahead for Yaccarino is undoubtedly challenging. She must strike a delicate balance between reestablishing Twitter as an attractive advertising platform and ensuring the platform takes a strong stance against hate and extremism. The success of her tenure will depend not only on her leadership and industry expertise but also on the willingness of Elon Musk and the Twitter team to enact meaningful change.

Twitter has the potential to be a powerful platform for positive dialogue and connection. It has been a catalyst for social movements, a source of news and information, and a platform for public discourse. However, its potential can only be fully realized if it can effectively address the issues of hate, racism, and extreme anti-Semitism that have plagued it in recent years.

As Linda Yaccarino assumes her role as CEO, the eyes of the public, advertisers, and advocacy groups will be on her. Her success or failure in transforming Twitter into a more inclusive and responsible platform will not only shape the future of the company but also influence the broader conversation around online hate speech and the responsibilities of social media platforms.

Twitter’s fate hangs in the balance, and it is up to Yaccarino and the collective efforts of the Twitter team to determine whether the platform can rise above its current challenges and become a beacon of positive engagement in the digital sphere. The world is watching, and the stakes could not be higher.

Carbon-Neutral Clicks: A Guide to Reducing Your Online Advertising Footprint

By
Adotat Staff
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0

As the world becomes increasingly digital, the impact of online advertising on the environment is becoming a growing concern. The carbon footprint of digital advertising is significant, with a typical digital ad campaign for a single brand producing hundreds of tons of carbon dioxide. This is why the move to make online marketing carbon neutral is gaining momentum, with industry players exploring ways to reduce their impact on the environment.

A recent study by media investment analysis firm Ebiquity PLC and Scope3 PBC has highlighted the amount of carbon emissions generated by digital advertising. The study examined 116 billion digital display ad impressions valued at $375 million from 43 advertisers in 11 global markets in 2021 and 2022. It estimated the energy it takes to deliver an ad impression by looking at factors such as auctions and emissions from the end-user’s device.

The study found that roughly 15% of ad spending goes to so-called made-for-advertising websites that generate high carbon emissions. These sites crowd the screen with ads and low-quality content, and they often involve ad-tech intermediaries that offer services such as matching marketers with particular target audiences. The placements are often made inadvertently, and brands don’t seek to advertise on these sites.

The companies behind the study recommend reallocating ad budgets to web publishers with lower carbon footprints. The consumer experience on made-for-advertising sites is poor, as is the effectiveness of advertising on them. By investing in high-quality journalism and avoiding low-quality websites, advertisers can reduce their carbon footprint and have a more positive impact on the environment.

The advertising industry consumes a significant amount of energy, leading to carbon emissions. Many websites trigger automated auctions for various ad spaces every time a consumer arrives on one of their pages, involving ad-tech intermediaries that offer services such as matching marketers with particular target audiences. It’s difficult to calculate just how much electricity online advertising consumes, but a study published in 2018 estimated that 10% of the energy usage of the internet results from online ads.

The impact of digital advertising on the environment goes largely unnoticed by consumers, but it’s essential to consider the amount of energy consumed by our digital devices and the internet, and the carbon emissions associated with them. As we become more reliant on technology, it’s increasingly important to take steps to reduce our carbon footprint.

To achieve carbon neutrality in online advertising, it’s important to identify the main sources of emissions in the digital ad supply chain. These include the production of ad creatives, programmatic ad transactions, ad targeting and measurement, and the delivery of ads across various platforms.

Advertisers can take steps to reduce their carbon footprint by localizing ad production to reduce travel-related carbon emissions, using 3D modeling animation instead of video shooting to minimize the CO2 emissions produced by production crew travels and utilized equipment, producing shorter video and image ads to reduce the size of the files and the carbon emissions associated with them, and avoiding low-quality websites that generate high carbon emissions.

One innovative solution that has already been implemented by OpenX Media LatAm and SeenThis is adaptive streaming technology. This technology uses lower data transfer on ad campaigns compared to sending a video of corresponding quality using conventional technology, resulting in a smaller carbon footprint. The technology was used to stream Coca-Cola and Sprite video campaigns as display banners regionally, including markets in Mexico, Colombia, Argentina, and more. The initial 23.5 million video ad impressions were estimated to be 25% lower than running video of corresponding quality using conventional ad serving technology, resulting in avoided CO2 emissions.

The move towards carbon neutrality in online advertising is not just about being environmentally friendly – it’s also about building trust with consumers. As people become more aware of their carbon footprint, they are likely to favor brands that take steps to reduce their impact on the environment. The advertising industry has a responsibility to be more transparent about the environmental impact of their campaigns and to take action to reduce their carbon footprint.

Consumers are increasingly concerned about climate change, and they are willing to take action to reduce their impact on the environment. According to a study by Nielsen, 81% of global consumers feel strongly that companies should help improve the environment. Consumers are also willing to pay more for sustainable products and services, with 73% of global consumers saying they would change their consumption habits to reduce their environmental impact.

For advertisers, this means that taking steps towards carbon neutrality is not just the right thing to do – it’s also good for business. By reducing their carbon footprint, advertisers can attract environmentally conscious consumers and build a positive reputation for their brand.

The advertising industry has made some progress towards reducing its carbon footprint in recent years, but there is still a long way to go. In 2021, the World Federation of Advertisers (WFA) launched a global framework to reduce the carbon footprint of the advertising industry. The framework includes guidelines for measuring and reporting carbon emissions, setting targets for emissions reductions, and implementing sustainable practices across the advertising supply chain.

The WFA’s framework is a step in the right direction, but more needs to be done to achieve carbon neutrality in online advertising. The industry needs to work together to develop innovative solutions that reduce the carbon footprint of digital advertising, such as adaptive streaming technology. Advertisers also need to take responsibility for their impact on the environment and take action to reduce their carbon footprint.

One challenge in achieving carbon neutrality in online advertising is the lack of transparency in the supply chain. Advertisers often work with multiple intermediaries, making it difficult to track the carbon emissions associated with each campaign. To address this issue, the industry needs to develop standardized reporting methods and work together to share data on carbon emissions.

Another challenge is the lack of consumer awareness about the carbon footprint of digital advertising. Many consumers are unaware of the impact of their digital devices on the environment, and they may not realize that their online activity generates carbon emissions. To address this issue, advertisers need to be more transparent about the environmental impact of their campaigns and educate consumers about ways to reduce their carbon footprint.

The move to carbon neutral is an important step towards reducing the advertising industry’s impact on the environment. Advertisers have a responsibility to take action to reduce their carbon footprint and build trust with environmentally conscious consumers. By working together and developing innovative solutions, the advertising industry can achieve carbon neutrality and contribute to a more sustainable future.

WTF is Maryland’s Digital Ad Tax?

By
Pesach Lattin
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0

Maryland’s Supreme Court has given the green light to the implementation of the country’s first-ever digital ad tax, despite facing significant opposition. The law, passed during the 2021 General Assembly, aims to target big tech companies by imposing a tax on the revenue generated from selling digital advertising in Maryland. The tax rates vary depending on the annual global gross revenue of the businesses: 2.5 percent for companies making over $100 million, 5 percent for those making $1 billion or more, 7.5 percent for companies making $5 billion or more, and 10 percent for those making $15 billion or more.

Lawmakers supporting the tax argue that it will generate $250 million in revenue, which will be directed towards K-12 education reform. The funds will be used to expand early childhood education, increase teacher salaries, and enhance career readiness programs. Despite initial opposition, the law was eventually enacted after the State Legislature overrode then-Governor Larry Hogan’s veto.

However, opponents of the legislation have filed lawsuits claiming that it violates the 1998 “Internet Freedom Tax Act.” The Chamber of Commerce challenged the law in federal district court, and Verizon and Comcast also took legal action at the state level. In October 2022, a judge from the Anne Arundel County Circuit Court blocked the law, ruling that it violated the U.S. Constitution’s prohibition on state interference with interstate commerce.

The legal battles surrounding the digital ad tax led to an appeals process that culminated in the recent decision by the Maryland Supreme Court. The court concluded that the Anne Arundel County Circuit Court lacked jurisdiction over the case because the plaintiffs failed to exhaust their administrative remedies. In response, the Maryland Chamber of Commerce expressed its dissatisfaction, stating that the ruling did not address the substantive arguments or the constitutionality of the law. The Chamber believes that the tax puts Maryland businesses at a competitive disadvantage, making online advertising more expensive in the state compared to other states, potentially leading to a loss of business investment and growth.

Maryland Attorney General Anthony Brown, who supported the law, welcomed the court’s order. He emphasized that the digital ad tax would support the state’s goal of transforming schools and providing quality educational opportunities for underserved communities. The tax is seen as a critical funding source for Maryland’s sweeping education reform law, known as the Blueprint for Maryland’s Future.

The legal arguments presented by both sides focused on procedural matters and constitutional issues. Julia Bernhardt, an assistant attorney general, contended that the plaintiffs were trying to bypass the established administrative procedures for tax-related constitutional claims. On the other hand, Jeffrey Friedman, an attorney for the plaintiffs, argued that a constitutional exception applied in this case due to the law’s violation of federal law.

The digital ad tax in Maryland has faced resistance from major tech companies such as Facebook, Google, and Amazon. Their attorneys argue that the law unfairly targets them and imposes a tax based on global annual gross revenues, which they claim is an unjust burden.

The implementation of Maryland’s digital ad tax marks a significant milestone in the evolving landscape of taxation for digital services. It sets a precedent for other states considering similar measures and raises important questions about the balance between taxation, interstate commerce, and the funding of public services. As legal challenges continue, the fate of the digital ad tax in Maryland will shape the future of online advertising regulation and taxation across the country.

eCommerce, Amazon and Investment Management Provider FTC Regulatory Compliance Considerations

By
Richard B. Newman
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0

The Federal Trade Commission and state attorneys general continue to aggressively investigate and prosecute those that advertise, market, distribute, promote and sell certain kinds of ecommerce management, business coaching, work-from-home and investment programs.

In fact, in 2022 the Federal Trade Commission announced that it was exploring changes to the Business Opportunity Rule in order to broadly expand on the kinds of money-making opportunities that fall within the Business Opportunity Rule. 

In a statement, FTC Chairperson Lina Khan states that “[t]he rule had served the public well over the years,” but “several varieties of scams . . . falloutside the scope of the existing rule, [including] certain kinds of business coaching and work-from-home programs, investment programs, and ecommerce opportunities.” Chairperson Khan asserts that “case-by-case enforcement has key limitations—especially after the Supreme Court’s AMG decision” that held that the FTC lacked authority to obtain equitable monetary redress under Section 13(b).  See, here for more information.

At present, regardless of the nature of the promotional activity and service being offered, significant potential liability exists for both corporate entities and certain individuals actively involved therewith.

A good example is someone selling a program that purports to teach consumers how to make big profits in their home – risk-free. 

Recent regulatory enforcement matters have included, without limitation, a lawsuit against a network of companies that purportedly placed millions of robocalls pitching an affiliate marketing program and falsely claiming to be associated with Amazon.  According to the FTC, that with the pandemic, the defendants pivoted to play on consumers’ financial fears and consumers paid for storefront websites the defendants allegedly said would yield thousands of dollars in monthly income.  The FTC alleges that the website were defective and the promises never materialized.

Another recent lawsuit involved allegations that a group of defendants marketed investment-related services with deceptive claims that people would make consistent profits and beat the market.  With eye-catching representations like “Learn how you could DOUBLE or TRIPLE your account in One Week!” the defendants purportedly claimed that for people trained in their purported technique, the global pandemic “might be the most exciting opportunity in decades!”

A select sampling of other recent lawsuits include: (i) allegations by the FTC the defendants made deceptive money-making claims – for example, “Consumers will earn between $500 and $12,500 per sale,” and “Every time one of our professionals closes a sale on your behalf, we will send you a huge commission check right to your doorstep” – to sell memberships in their purported “program.”  According to the complaint, consumers shelled out between $1,000 to $25,000, but the vast majority did not make anything even approaching the advertised earnings while many made nothing at all.  This lawsuit alleges violations of the FTC Act and the Business Opportunity Rule; and (ii) an FTC complaint that the defendants falsely claimed that consumers who followed their “proven business model” would earn between $5,000 to $10,000 in just 10 to 14 days, and consistently make money within 60-90 days of buying into the program.  According to the FTC, most consumers paid between $2,395 to $22,495 and never earned substantial income.  The FTC further alleges that many people lost money, ending up in an even deeper financial hole by taking out loans and racking up credit card debt.

What do digital advertisers and marketers need to know?

Law Enforcers are Committed to Challenging Express and Implied Misleading Money Making Promises.

Whether what is being sold is a “system,” a work-at-home “opportunity,” “coaching” services, or any other variation, there must exist solid, reasonable proof to back up (“substantiate”) express and implied earnings representations before disseminated to consumers.

The FTC is committed to protecting every community from false earnings promises. According to the FTC, empirical data supports its conclusion that the expanding universe of money-making promotions affected different communities at different rates.

In addition to public administrative and judicial actions, online shareable resources provided by the Federal Trade Commission are a decent roadmap for digital advertiser and consumers alike that are interested in learning about compliance red flags and evaluating commerce management, business coaching, work-from-home and investment programs.

Problematic Pandemic Pitches are Likely to Attract Close Scrutiny.

Congress passed the COVID-19 Consumer Protection Act in 2020, making it illegal under the FTC Act to engage in deceptive marketing related to the treatment, cure, prevention, mitigation, or diagnosis of COVID–19, or any government benefit related to COVID-19.  The law also authorizes the FTC to seek civil monetary penalties for first-time violations, a remedy not normally available under the FTC Act.

And, the FTC considers consumers’ current COVID-19-related hardships as within regulatory “vulnerable” status, especially when alleged bogus money-making representations or other unsubstantiated claims are made.

In 2021, the FTC filed its first action under the COVID-19 Consumer Protection Act, seeking monetary penalties for the alleged deceptive marketing of purported Vitamin D and Zinc  treatments as scientifically proven to treat or prevent COVID-19.  Charges also included violating the Federal Trade Commission Act.  According to the FTC’s complaint, prior to initiating legal action, the agency sent a warning letter about alleged unsubstantiated COVID-19 efficacy claims – which was purportedly ignored.

The complaint was filed by the U.S. Department of Justice on the FTC’s behalf.  The FTC refers a complaint for civil penalties to the DOJ for filing when it has “reason to believe” that the named defendants are violating or are about to violate the law and that a proceeding is in the public interest.

What Can Ecommerce Management, Business Coaching, Work-From-Home and Investment Programs Settlement Terms Look Like?

Stipulated orders for permanent injunction and other relief take many forms and often depend upon the specific facts, applicable legal regulations and the totality of the circumstances.  However, there are some general consistencies with respect to what the FTC typically proposes and/or requires when it comes to false and unsubstantiated earnings claims, as well as unlawful telemarketing activities (which also come with civil penalties).

Complaints may also allege that the FTC has previously determined the actions and/or omissions at issue to be unfair or deceptive in connection with the advertising, marketing, distribution and selling of ecommerce management, business coaching, work-from-home and investment programs to consumers throughout the United States.

First, the FTC may provide a defendant with a proposed “consent order” along with a draft of a complaint for permanent injunction, monetary relief, civil penalties, and other relief pursuant to Sections 5(m)(1)(A)-(B), 13(b), and 19 of the Federal Trade Commission Act, 15 U.S.C. §§ 45(m)(1)(A)-(B), 53(b), and 57b, and the Telemarketing and Consumer Fraud and Abuse Prevention Act, 15 U.S.C. §§ 6101-6108.

In doing so, the FTC ordinarily provides a defendant with an opportunity to stipulate to the entry of an order for permanent Injunction and other relief to resolve all matters in dispute.  Stipulated terms that have recently appeared in ecommerce management, business coaching, work-from-home and investment program-related settlements include, but are not limited to:

  • Monetary relief and civil penalties
  • A definition of “earnings claims (including, without limitation, statements, claims, success stories, endorsements or testimonials about the performance or profitability of representatives, endorsers, instructors or customers)
  • A definition of “investment opportunities”
  • Prohibitions concerning “earnings claims”
  • An obligation to “clearly and conspicuously” disclose typical customer results, and have written substantiation for such typical results
  • An obligation to possess written substantiation for any statements characterizing or qualifying typical results
  • An obligation that written substantiation for “earnings claims” be made available upon request to the consumer, potential purchaser and the FTC
  • An obligation to be able to establish that any earnings that form the basis for “earnings claims” were achieved in compliance with the law
  • A definition of “clear and conspicuous” disclosures – one that also accounts for visual and audio disclosures
  • Prohibitions concerning misrepresentations, including but not limited to, the description of the good or service, that past performance referenced in  advertising materials is indicative of future results, that testimonials used in advertising reflect the experience that consumers are likely to achieve, that purchasers or users will or are likely to achieve substantial profits or earnings, the risk or earnings potential, the background and skills of any person whose name or likeness is used in promotional materials, the level of consumer experience required, the time or effort required of consumers, that the goods or services will be sold to only a limited number of prospective participants, any material aspect of the nature or terms of a refund or  cancellation policy, and/or any other fact material to consumers
  • Restrictions and/or prohibitions regarding the use of hyplerlinks
  • A definition of “ordinary consumers” when sales practices target a specific audience
  • Prohibitions regarding telemarketing
  • Mandatory written notice to consumers
  • Compliance reporting, monitoring and recordkeeping

Digital advertisers interested in learning more about current FTC policy and enforcement, including strategic compliance methods designed to minimize potential liability exposure should consult with seasoned FTC defense lawyers.  This article should be of interest to digital advertisers and in-house counsel interested in current FTC legal regulatory CID investigations, enforcement and stipulated resolution of ecommerce management, business coaching, work-from-home and investment program-related products and service offerings. 

Richard B. Newman is an digital advertising practices FTC attorney at Hinch Newman LLP. Follow him on JD Supra at FTC defense lawyer.

Informational purposes only. Not legal advice. May be considered attorney advertising.Bottom of Form

U.S. Supreme Court Rules Federal District Courts Have Jurisdiction To Consider Structural Challenges To FTC And SEC

By
Richard B. Newman
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0

On April 14, 2023, the U.S. Supreme Court afforded defendants the ability to directly challenge the structural constitutionality and existence of the Federal Trade Commission (and the Securities and Exchange Commission) in federal court without having to slog their way through pre-enforcement administrative proceedings that many believe deprive defendants of due process. Axon Enterprise, Inc. v. FTC (consolidated with SEC v. Cochran, a similar case involving the Securities and Exchange Commission).

Similar to the Supreme Court’s recent blow to the FTC’s authority in AMG Cap. Mgmt., LLC v. Fed. Trade Comm’n, 141 S. Ct. 1341 (2021), the Axon decision was unanimous.

At issue in Axon was whether defendants in an agency’s administrative enforcement action are permitted to challenge its structure or processes in a federal district court or must first endure the agency’s administrative proceeding, which may be costly and time consuming.  By ruling in the affirmative, the Supreme Court has once again brought into question the scope and legitimacy of the agencies’ respective enforcement authority.

The FTC administrative adjudication process, in part, consists of the FTC’s commissioners voting to initiate complaints.  Then, FTC staff investigates and prosecutes those complaints before the agency’s Administrative Law Judge.  The commissioners themselves then assess (and virtually always affirm) the complaints that they voted to initiate.  That is an enormous amount of discretion bestowed upon the prosecutor, judge and jury.  Defendants are only permitted to appeal in federal court once all three steps are completed.

The unanimous opinion was written by Justice Elena Kagan. 

Axon sued the FTC in 2020 in federal court in Arizona following an investigation by the agency into its 2018 acquisition of a rival body-camera provider.  The company said the agency acts as “prosecutor, judge and jury” in violation of the U.S. Constitution’s Fifth Amendment guarantees of due process and equal protection under the law, and that its administrative law judges are unlawfully insulated from the president’s power to control executive branch officers under the Constitution’s Article II.  In 2021, the Ninth U.S. Circuit Court of Appeals threw out Axon’s case, ruling that under the FTC Act the company must raise its claims in the administrative proceeding first.

The FTC’s reaction to Axon has not been dissimilar to the agency’s reaction when the Court in AMG held that the FTC is not permitted to utilize Section 13(b) of the FTC Act to obtain monetary relief.

Since that time, the FTC has urged Congress to provide it with expanded 13(b) authority.  The agency has also aggressively sought to utilize rulemaking authority to create new legal regulations that provide for statutory civil penalties, including, but not limited to, proposed rulemakings relating to the Negative Option Rule, a Non-Compete Rule, the Use of Reviews and Endorsements, expansion of the Telemarketing Sales Rule, Earnings claims, Dot Com Disclosures, and the Business Opportunity Rule.

The FTC also continues its aggressive use of penalty offense notices in an effort to secure monetary redress.  Most recently, the agency sent notices to almost 700 companies regarding the substantiation of product claims.  The notices warned recipients that they must avoid deceiving consumers with advertisements that make product claims that cannot be substantiated with reliable evidence or face hefty monetary civil penalties.  Health and safety claims must be substantiated with “competent and reliable scientific evidence.”

The claim substantiation penalty offense notices are the fourth round, following prior notices covering education practices, endorsements and money-making opportunities.

“The requirement for advertisers to have adequate support for their advertising claims at the time they’re made is a bedrock principle of FTC law,” said FTC attorney Sam Levine, Director of the FTC’s Bureau of Consumer Protection.  “The prospect of steep civil penalties will help ensure that advertisers don’t play fast and loose with the truth.”

The FTC is now using its penalty offense authority to remind advertisers of the legal

requirement to have a reasonable basis to support objective product claims and to deter them from making deceptive claims in the future.  Notices of penalty offenses allow the agency to seek civil penalties — up to $50,120 per violation — against a company that engages in conduct that it knows has been found unlawful in a previous FTC administrative order, other than a consent order.

The most recent slew of notices of penalty offenses were directed to marketers of OTC drugs, homeopathic products, dietary supplements and functional foods.  The agency has placed them on notice that they could incur significant civil penalties if they fail to adequately substantiate their product claims in ways that run counter to the litigated decisions of prior FTC administrative cases.

The notices outline specific unlawful acts and practices, including failing to have: 1) a reasonable basis consisting of competent and reliable evidence for objective product claims; 2) competent and reliable scientific evidence to support health or safety claims; and 3) at least one well-controlled human clinical trial to support claims that a product is effective in curing, mitigating, or treating a serious disease.

The unlawful acts or practices also include: 1) misrepresenting the level or type of substantiation for a claim, and 2) misrepresenting that a product claim has been scientifically or clinically proven.

Although the initial distribution of the notice is limited to those making or likely to make health claims, the notice is not limited to health claims and applies to any marketer making claims about the efficacy or performance of its products.  Clearly, the FTC is seeking to impose a more rigid advertising claim substantiation standard and related disclosure requirements.

The letter to the recipients also provides them with a copy of a previously approved notice of penalty offenses regarding the use of endorsement and testimonials.  That notice addresses falsely claiming an endorsement by a third party; misrepresenting whether an endorser is an actual, current, or recent user; using an endorsement to make deceptive performance claims; failing to disclose an unexpected material connection with an endorser; and misrepresenting that the experience of endorsers represents consumers’ typical or ordinary experience.

Finally, the letters suggested that the recipients consult FTC staff’s recently issued “Health Products Compliance Guidance.”  The Guidance dramatically overhauled the 1998 dietary supplement guidance and departed from the FTC’s prior, flexible interpretation of the “competent and reliable scientific evidence” threshold.

The March 31, 2023, Commission vote to approve the substantiation notice and authorize the distribution of both notices was 3-1, with then-Commissioner Christine S. Wilson voting no and issuing a separate statement on her final day as a Commissioner.

Commissioner Rebecca Kelly Slaughter issued a statement, joined by Chair Lina M. Khan and Commissioner Alvaro Bedoya.  The primary staffers in this matter were Michael Ostheimer and Christine DeLorme in the FTC’s Bureau of Consumer Protection.

Defendants that are interested in learning more about the practical ramifications of the Axon decision, including potential motions to stay judicial enforcement proceedings and attacks on the DOJ’s authority to act on the FTC’s behalf, should consult with an experienced FTC defense lawyer.

Takeaway:  To date, defendants have been forced to endure years of costly and arguably unconstitutional agency procedures until being permitted to proceed to court.  The practical effect has been pressured and cost-based settlement of potentially defensible enforcement actions.  Now, defendants are not forced to wait and spend endlessly in order to get their day in court to raise constitutional claims against the same procedures they contend deprive them of due process, to begin with.  Following Axon, the FTC will likely continue to aggressive penalty offense notice and rulemaking efforts.  It is also likely that the agency will continue to refer cases to the U.S. Department of Justice, Consumer Protection Branch for civil prosecution and seek Congressional intervention. 

Richard B. Newman is an FTC defense attorney at Hinch Newman LLP.  

Informational purposes only. Not legal advice. May be considered attorney advertising.

Is there a Future for Pay Per Click Advertising?

By
Pesach Lattin
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0

Step right up, ladies and gentlemen, and prepare yourselves for the thrilling world of pay per click advertising in 2023! Amidst all the doom and gloom predictions, there’s actually a silver lining that’s shining brighter than ever. So put on your creative caps, embrace automation like a long-lost friend, and get ready to navigate the treacherous waters of rising costs. It’s time to rewrite the rules and turn these challenges into triumphs!

The Creative Takes Center Stage: Lights, Camera, Action!
In this fast-paced world of automation and limited targeting, we find ourselves at the crossroads of creativity and audience engagement. Bid farewell to painstakingly refining your target audience and say hello to the era of broad targeting. But don’t panic just yet—this shift presents a thrilling opportunity for advertisers to unleash their creative genius and capture the hearts and attention of the masses.

Gone are the days when a mediocre ad could fly under the radar if it reached the right eyeballs. Now, it’s all about crafting captivating, eye-catching ads that stand out from the crowd. How? Well, you might want to consider sprinkling some design magic to make your ad truly pop. And if you’re wondering which banner size would work wonders, fear not! We have data to guide you. Did you know that in 2022, 64% of display ads were animated? So let the numbers light your way to captivating creatives!

But fear not, dear advertisers, for automation rides to the rescue! With a plethora of ad creation and delivery tools at your disposal, you can stay one step ahead in this ever-evolving advertising wonderland. So embrace automation like a knight in shining armor and prepare to conquer the land of creativity and personalization.

Increased Automation: Rise of the PPC Strategist!
Hold onto your hats, folks, because automation is all the rage in 2023! As our mechanical minions take over mundane tasks, the role of the advertiser transforms into a strategic mastermind. Remember the manual labor you endured in the PPC landscape of yesteryears? Say goodbye to those tedious endeavors! With machines handling the nitty-gritty, you’re free to unleash your strategic prowess and focus on the grand “why” and “how” of your campaigns.

Gone are the days when being a PPC specialist meant simply being a stellar performer. Now, you’re expected to be a creative strategist extraordinaire. Embrace automation, my friends, and let it pave the way for your A/B testing, optimization, and data analysis endeavors. You’re not alone on this adventurous journey either! According to eMarketer, marketers have been boldly venturing into the realm of AI-powered marketing automation, and the trend is set to soar even higher this year.

Rising Costs on Platforms: Show Me the Money!
Ah, the age-old question: “How much will that cost me?” Brace yourselves, my friends, for the winds of change have blown through the land of advertising budgets. The recent recession has ushered in a new era of higher costs on advertising platforms, and it’s time to face the music. But fear not, intrepid advertisers! With a dash of budgetary finesse, you can still achieve remarkable results.

Now, more than ever, it’s crucial to manage expectations. Let your clients, managers, and stakeholders know that the golden days of yore might require a bit more investment this time around. It’s all about setting the stage for transparency and avoiding any surprises when the time for reporting rolls around.

But hey, before you grab those budget-cutting scissors, take a moment to reassess. Can you optimize your creative or landing page to squeeze out every ounce of performance? Can you find innovative ways to make your budget stretch further? It’s time to put on your thinking caps and get creative with cost-effective solutions.

Think outside the box and explore alternative advertising channels that may offer a higher return on investment. Maybe it’s time to dip your toes into the waters of social media advertising or explore the potential of influencer marketing. These avenues can provide a fresh and exciting approach to reaching your target audience while maximizing your budget.

And remember, my daring advertisers, don’t be hasty with the budget cuts. Gradual trimming, like a skilled hairdresser perfecting a masterpiece, can help maintain campaign performance without causing a shock to the system. Keep a watchful eye on your campaigns, analyze the data, and make informed decisions based on performance metrics.

In this ever-changing world of pay per click advertising, agility is your best friend. Stay up to date with industry trends and be ready to adapt your strategies accordingly. The digital landscape is a dynamic playground, and those who embrace change with open arms will be the true heroes of the PPC realm.

So, my adventurous advertisers, as you embark on this thrilling journey into the future of pay per click advertising, remember to channel your inner creative genius, embrace the power of automation, and navigate the rising tides of costs with finesse. The opportunities are vast, and the rewards await those who dare to seize them. Let the wit and wisdom of the PPC world guide your path to success!

And always remember, the only constant in PPC is change. So buckle up, my friends, for this rollercoaster ride of innovation and excitement. The future of pay per click advertising is yours to conquer!

Anthony Paluzzi: Master of Customer Acquisition and Marketing Magic

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Pesach Lattin
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In the competitive world of customer acquisition and marketing, one name stands out: Anthony Paluzzi. With a keen eye for strategy and an unwavering focus on results, Paluzzi has propelled himself to the forefront of the industry, earning the title of the nation’s top customer acquisition manager. As the CEO of Palo, a leading media company, he has revolutionized the way businesses approach advertising and successfully positioned his company as a driving force in the market.

Paluzzi’s journey in the realm of customer acquisition and marketing was not a predetermined path but rather a fortuitous discovery. “Well, I fell into it,” he chuckles. “My jobs before I started Palo were all sales, and I always strived to figure out how to get customers to come to me instead of going to them. Call it lazy, but I didn’t want to ‘sell,’ I wanted to close.” It was during this quest for an effective approach that he stumbled upon affiliate marketing, an experience that left him hooked. “I quickly got addicted to it and was easily able to see the scale potential.”

So, how did Anthony Paluzzi and Palo achieve their status as the number one customer acquisition manager nationwide? Paluzzi attributes their success to unwavering focus and an exceptional team. Instead of spreading themselves thin across various industries, Palo chose to integrate deeply into two specific sectors, allowing for vertical integration of their business and affiliate partners. Paluzzi explains, “Clients trust us more because we know their business, and affiliates yield more because our programs have a strong foundation. In addition to all of this, our team is second to none.” Their understanding of the affiliate mindset and the ability to pivot when needed has made them an unstoppable force in the industry.

Paluzzi’s rise to the position of CEO at Palo was an organic process driven by the need to shift his focus from doing to leading. “When you begin to hire and lead a team, you need to change your focus from driving tons of traffic to finding the right people and finding them wins,” he shares. For Paluzzi, the ultimate satisfaction comes from witnessing his team’s triumphs rather than personal victories.

Under Paluzzi’s leadership, Palo has emerged as a leading media company, setting new standards for excellence. Their core services revolve around customer acquisition in the insurance and legal industries, with a future expansion into the financial space. Palo’s emphasis on generating calls, rather than leads, sets them apart from competitors. By keeping intent high and costs low, they have established themselves as a go-to partner for businesses of all sizes in these sectors.

One of Palo’s groundbreaking approaches is the heavy utilization of pay-per-call advertising. Paluzzi explains, “Pay-per-call allows us to focus on the very bottom of the funnel rather than a lead, which hasn’t shown the truest intent yet in the customer buying journey.” This strategy provides them with faster feedback and a deeper understanding of their target audience, as the interactions happen in real time and involve human-to-human communication.

While pay-per-call advertising benefits various industries, Paluzzi highlights its natural fit in certain sectors that require expertise or personalized assistance. Legal, insurance, financial, home services, and health/wellness are just a few examples. While the digital landscape may dispute the necessity of a human touch, Paluzzi believes that a core segment within these industries still values the human element of a call.

Creating and executing a successful pay-per-call campaign requires a meticulous approach. Paluzzi emphasizes the importance of understanding the product, call center script, customer profile, and other factors to drive the desired action. Additionally, comprehensive knowledge of the client’s metrics and campaign optimization allows for targeted audience acquisition and scalability.

Effective tracking of pay-per-call campaign success is crucial for businesses. Paluzzi advises defining the key metrics that align with the business’s goals and working backward from there. The inbound call script should always guide the caller toward the desired outcome, ensuring a seamless experience. Collaboration with marketing partners to establish clear expectations and optimization strategies further enhances the success of the campaign.

Law firms, in particular, face unique challenges when developing a successful marketing strategy. In an industry where the quality and cost per client acquisition are paramount, many firms make the mistake of solely focusing on the number of retainers obtained. Paluzzi points out that this approach lacks focus and efficiency. At Palo, their law firm clients seek not only to increase the number of retainers but also to create a comprehensive client acquisition solution that provides insights into marketing expenditure and the types of cases generated.

The impact of a law firm’s brand identity on its marketing efforts should not be underestimated. A strong brand identity helps build trust and credibility among potential clients. It sets the tone for the firm’s messaging, allowing them to effectively communicate their unique value proposition and establish a strong presence in the market.

Market analysis plays a vital role in crafting an effective law firm marketing strategy. Paluzzi believes that understanding the demographics associated with different types of cases is essential for success. Each demographic group has distinct characteristics and preferences, influencing the effectiveness of a marketing campaign. Factors such as gender, race, and age can significantly impact the choice of platforms, the content of the message, and the preferred method of contact. By tailoring strategies to specific demographics, law firms can optimize their marketing efforts and increase their chances of success.

Key components of an effective law firm marketing strategy, as identified by Paluzzi, include a deep understanding of the target audience, personalized messaging, and a focus on the client’s needs. By developing campaigns that resonate with their audience and emphasizing the importance of working with lawyers who understand specific demographics’ requirements, firms can differentiate themselves and attract quality clients.

Measuring the success of marketing efforts is crucial for law firms. Defining the most relevant metrics based on the firm’s goals is a crucial first step. By aligning marketing activities with these metrics, firms can gauge their performance accurately and make informed decisions about resource allocation and optimization.

Technology plays an integral role in modern marketing strategies. From advanced call tracking solutions that provide real-time feedback to data analysis tools that allow for accurate campaign optimization, technology empowers businesses to make data-driven decisions and maximize their marketing efforts. Furthermore, the rise of social media has revolutionized marketing. Businesses can now engage with their target audience on a more personal level, leveraging platforms to build brand awareness and foster customer loyalty.

In a constantly evolving marketing landscape, staying competitive is a challenge. Paluzzi’s advice to businesses is simple yet powerful: “Be in it.” To understand how marketing evolves, one must actively engage in it. Keeping abreast of changes, platforms, and trends requires active participation and continuous learning. Investing in a knowledgeable and agile team is crucial, as they can monitor the evolving landscape while driving success for the business.

For aspiring marketers and business leaders, Paluzzi offers valuable advice. He encourages individuals to visualize their desired outcomes, set clear goals, and work backward to determine the steps needed to achieve them. Becoming an expert in specific industries and applying that knowledge strategically is key. Lastly, Paluzzi values the importance of balance. As a dedicated marketer and CEO, he treasures the time spent with his family and enjoys the simple pleasures of life.

Anthony Paluzzi is not just a marketing maverick; he is a dedicated leader and a family man. His vision, coupled with his team’s exceptional talent, has propelled Palo to new heights, positioning it as a leading media company in the field of customer acquisition. Through innovative strategies, such as pay-per-call advertising and industry-specific expertise, Paluzzi continues to redefine thecustomer acquisition landscape. Under his leadership, Palo has cemented its position as the go-to agency for businesses seeking effective customer acquisition solutions in the insurance and legal industries, with plans to expand into the financial sector.

Paluzzi’s focus on generating calls rather than mere leads sets Palo apart from other agencies. By honing in on the bottom of the marketing funnel, where true intent resides, Palo ensures the highest quality customer acquisition while keeping costs manageable. The use of pay-per-call advertising has been instrumental in achieving this objective. Unlike other forms of advertising, pay-per-call allows Palo to engage with potential customers in real-time, leveraging the power of human interaction to drive conversions and provide immediate feedback.

Sephora U.S. Taps Zena Srivatsa Arnold to Lead Growth Strategy

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Pesach Lattin
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Sephora, the French multinational retailer of personal care and beauty products, has appointed Zena Srivatsa Arnold as its new chief marketing officer for the U.S. market. Srivatsa Arnold joins Sephora from PepsiCo, where she served as the senior vice president of carbonated soft drinks. She has also held senior marketing and management positions at Google, Kellogg Company, Proctor & Gamble, and Kimberly-Clark. Her appointment follows a period of C-suite reshuffles at Sephora, including the appointment of Guillame Motte as global president and CEO and the transition of Deborah Yeh to global chief purpose officer.

Sephora Americas president and CEO Jean-André Rougeot noted that Srivatsa Arnold brings extensive experience in building and growing brands, as well as driving initiatives that reach clients digitally. She has a rare combination of experience in traditional consumer marketing and performance marketing, making her an ideal fit for the company. Rougeot added that Srivatsa Arnold’s appointment comes at the perfect time as the retailer narrows in on its growth strategy.

Srivatsa Arnold’s relocation to San Francisco marks a new chapter in Sephora’s history. The company has been rolling out new initiatives to reduce packaging waste and connect with diverse TikTok creators to develop meaningful, creator-led social content strategies. In January, Sephora introduced its Beauty (Re)Purposed program, a joint venture with Pact Collective that repurposes beauty empties into carpets, pallets, new packaging, or energy. The program aims to reduce packaging waste in 600 stores in the U.S. and Canada as part of LVMH Moët Hennessy Louis Vuitton’s overall Life360 program.

In March, Sephora launched the Sephora x TikTok Incubator Program, which connects past and present brands of the Sephora Accelerate program with diverse TikTok creators. The program aims to help the brands develop meaningful, creator-led social content strategies. Among the 12 participating brands this year are 2021 Sephora Accelerate cohort members Topicals, Eadam, and Hyper Skin, who were connected with prominent beauty creators including Amy Chang, Rocio Lopez-Jimenez, and Nyma Tang.

Srivatsa Arnold’s appointment is expected to drive Sephora’s marketing efforts and growth in the U.S. market. The retailer’s marketing leadership team, which is made up of Anna Banks, Emmy Berlind, Devon Duisenberg, Abigail Jacobs, Jessica Stacey, and Maria Terry, will report to Srivatsa Arnold in her new role. She is expected to bring her disruptive skills, digital expertise, passion for beauty, and collaborative approach to the team and help them achieve their goals.

Sephora has a strong reputation for providing a seamless shopping experience to its customers. The retailer offers a wide range of personal care and beauty products, including makeup, skincare, fragrances, and hair care products. Sephora’s business model centers around providing customers with an elevated shopping experience that blends the online and offline worlds. The company has been recognized for its innovative marketing campaigns and its commitment to sustainability.

In recent years, Sephora has made significant investments in its digital capabilities to better serve its customers. The company has been developing new technologies that enable it to provide personalized product recommendations, virtual try-on experiences, and more. Sephora has also been expanding its e-commerce capabilities, making it easier for customers to shop online and pick up their orders in-store. These investments have helped Sephora remain competitive in a rapidly evolving retail landscape.

Sephora’s appointment of Srivatsa Arnold as CMO is expected to further enhance the company’s position in the market. Her experience in traditional consumer marketing and performance marketing, combined with her digital expertise,

Rise and Fall of Influencer Marketing: the Dylan Mulvaney Fiasco.

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Pesach Lattin
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In recent years, influencer marketing has become a popular and powerful tool for businesses to reach new audiences and promote their products or services. However, the effectiveness of influencer marketing has been questioned by many, with some suggesting that much of it is either fraudulent or simply useless.

Recently, there was a case of influencer marketing that didn’t go as planned.

Bud Light collaborated with Dylan Mulvaney, a transgender social media influencer, which caused a lot of controversy and backlash from their loyal customers. As a result, their sales were significantly impacted. According to Nielsen IQ and Bump Williams Consulting, Bud Light’s sales went down by 21% during the week ending on April 22, and the amount of beer sold dropped by 26% which was even more severe.

The case of Bud Light highlights the risks associated with influencer marketing. It is crucial for businesses to have a thorough understanding of their target audience and carefully select the appropriate influencers to work with. Otherwise, a misstep can result in negative consequences, such as decreased sales and damaged brand image.

Influencer marketing is a strategy in which businesses collaborate with social media influencers to endorse their products and services. Influencers are influential people who have a massive following on platforms such as Instagram, YouTube, or TikTok, and can sway the opinions and purchasing decisions of their followers..

The appeal of influencer marketing lies in its ability to reach a younger generation of consumers who are more likely to be influenced by social media than traditional advertising.

Studies have indicated that Millennials and Gen Z individuals have more confidence in influencers compared to traditional celebrities or advertisements. They perceive influencers as more genuine and easy to relate to, hence are more inclined to abide by their suggestions.

Bud Light’s marketing boss Alissa Heinerscheid, the woman behind the campaign, is taking a “leave of absence,” and has been replaced by Budweiser VP of global marketing, Tod Allen. The company has stated that they have made some adjustments to streamline the structure of their marketing function to reduce layers so that their most senior marketers are more closely connected to every aspect of their brand activities.

The recent partnership of Bud Light with trans social media influencer Dylan Mulvaney caused controversy and backlash among Bud Light’s core customers, including national politicians. Most Bud Light drinkers don’t want to be depicted in the same camp as trans TikTok stars, and every brand doesn’t need to be avowedly “inclusive.” One wonders how some CMOs and the well-paid people who whisper in their ear can be so foolish.

Rumors suggest that A-B will bring back its trusty Clydesdale horses to remedy matters. However, it remains to be seen whether this will work or lead to more problems. It’s surprising that some companies still don’t understand the importance of knowing their audience and choosing the right marketing strategies to appeal to them.

According to Ben Schott, an expert in advertising and branding, the Bud Light controversy serves as a marketing case study on how not to handle brand collaborations in a polarized environment. Schott compared the incident to infamous brand gaffes such as the chairman of Barilla pasta’s declaration in 2013 that he “would never do a commercial with a homosexual family” and the CEO of Abercrombie and Fitch’s statement in 2006 that the company only wanted “cool” and “attractive” customers, admitting that the brand was exclusionary.

Schott argues that Bud Light’s action was worse than a gaffe; it was a betrayal. The brand’s cowardly silence left Mulvaney alone as the controversy spread both online and in bars across the country. According to Schott, Bud Light eagerly sought out a controversial influencer in a polarized environment but lacked the foresight to plan for a backlash or the courage to stand by its partner.

While sympathetic to Mulvaney, Schott condemned Bud Light for selecting her for a campaign and then abandoning her when the situation became challenging.

Bud Light’s parent company, Anheuser-Busch, has distanced itself from transgender influencer Dylan Mulvaney, stating that Mulvaney’s post was not part of a campaign, during an earnings call with investors. The company faced widespread backlash and calls for a boycott from conservative regions of the country after Mulvaney posted a photo with a Bud Light in a bathtub on TikTok.

The controversy resulted in a 21% drop in Bud Light sales for the week ending on April 22, according to Nielsen IQ and Bump Williams Consulting. Michel Doukeris, the company’s top executive, has condemned the “misinformation” spread on social media and stated that the company is providing direct financial support to those impacted by the backlash.

However, critics have accused the company of pandering with a new countrified YouTube ad, which features young beer drinkers at a country music festival.

The case of Bud Light and Dylan Mulvaney highlights the importance of carefully selecting influencers and understanding one’s target audience in influencer marketing. While influencer marketing can be an effective tool for reaching younger generations, it can also come with significant risks if not executed properly.

Companies must be aware of the potential backlash and have a plan in place to handle negative responses. Bud Light’s lack of preparation and abandonment of their influencer partner serves as a cautionary tale for brands. There’s nothing wrong with partnering with a trans celebrity, but if you do it, you need to understand your audience and the reactions.

The Bud Light controversy also demonstrates the power of social media and the influence of consumers. In today’s digital age, consumers have more power than ever before to voice their opinions and affect a brand’s reputation and sales. Companies must be mindful of this and take measures to listen to their consumers and respond appropriately.

Ultimately, the Bud Light case serves as a reminder that companies must be diligent and thoughtful in their marketing strategies. While influencer marketing can be a powerful tool for reaching new audiences, it should be approached with caution and careful consideration. By understanding their target audience and selecting appropriate influencers, companies can mitigate risks and maximize the potential benefits of influencer marketing.

Solar-March Brings Two Decades of Marketing Magic to Graduate Hotels

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Pesach Lattin
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Graduate Hotels has just announced their new Chief Marketing Officer, and it seems they’ve hit the jackpot with their latest hire. Michaella Solar-March brings nearly two decades of experience in leading integrated marketing efforts for companies in the lifestyle, hospitality, and real estate industries. With her impressive track record for cultivating community gathering places rooted in culture and storytelling, she’s sure to bring the Graduate Hotels brand to new heights.

Kevin Osterhaus, Graduate Hotels President, had nothing but high praise for Solar-March, saying, “There is great alignment between the impactful global marketing campaigns she has successfully executed and the founding principles of the Graduate Hotels brand.” It’s clear that her previous experience with top companies like Soho House & Co., Tishman Speyer, and Sonos has prepared her well for this new role.

Solar-March has most recently served as a Managing Director at MA Financial in Sydney, Australia. As Chief Marketing Officer for MA Hotel Management, she oversaw all strategic brand marketing and creative for the firm’s $2 billion hospitality portfolio, including the Redcape Hotel Group portfolio, which owns and operates 35 community-focused venues. Prior to that, she held dual roles as Chief Marketing Officer for Tishman Speyer and Rockefeller Center in New York City, where she oversaw all brand marketing and introduced modern programming and strategic partnerships that transformed the Center into one of the most in-demand cultural venues in the city.

It’s no surprise that Solar-March has an eye for creating cultural experiences, given her previous role as Global Director of Members Events & Brand Programming for Soho House & Co. She led an international team across 10 countries to drive original brand programming and cultural content partnerships, cementing her reputation as a master of connecting commerce with culture.

As for Solar-March herself, she’s thrilled to be joining the Graduate Hotels team during such an exciting phase of growth. “Every Graduate Hotels property is designed to be a highly intentional and immersive experience inspired by local traditions and legends,” she said. “Connecting community, culture, and branded storytelling has always been central to my career, and no one does that with more authenticity than this beloved brand and talented and dynamic team.”

Aside from her impressive resume, Solar-March is also the co-founder of Other Company, a free and private platform for global executive female leaders for confidential connection and support. And let’s not forget her passion for music, which remains as strong as ever. With her move to Graduate’s headquarters in Nashville, she’ll have the opportunity to explore all that ‘Music City’ has to offer.

It seems Graduate Hotels has found the perfect person to drive their global marketing strategy forward. We can’t wait to see what kind of magic Solar-March will bring to the table.

Google’s Real-Time Bidding Auctions: The Future of Ad Buying

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Pesach Lattin
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On October 31, 2023, Google Ads is set to introduce real-time bidding auctions for apps, marking a major departure from the “waterfall buying” approach. This change will greatly affect how advertisers buy media, streamlining the process and encouraging greater competition.

What is Waterfall Buying, and Why is it Being Replaced?

Waterfall buying is a process whereby Google Ads would serve ads one-by-one based on the effective cost per 1,000 impressions (eCPM) set by advertisers. This process involves multiple calls for the same ad impression within the mediation process, which is not optimal for advertiser performance. This approach can result in less efficient pricing and can be time-consuming.

Real-time bidding auctions are designed to optimize pricing by allowing advertisers to compete in a live auction. This method has been proven to be more efficient in optimizing pricing and improving the efficiency of media buying.

What are the Benefits of Real-Time Bidding Auctions?

One of the key benefits of real-time bidding auctions is that advertisers can find optimally-priced app inventory more efficiently, allowing them to make informed decisions and compete effectively in the market. Real-time bidding auctions allow advertisers to bid in a live auction where prices from all buyers are compared simultaneously, ensuring that the highest offer for the ad impression wins. This method is more efficient and effective in optimizing pricing than waterfall buying.

Real-time bidding auctions also allow for increased competition, ensuring that advertisers are paying a fair price for ad inventory. This competition can lead to better performance for advertisers and more relevant ads for consumers.

Google Ads’ Expansion of Real-Time Bidding Integrations

Google Ads and Display & Video 360 have also expanded their real-time bidding integrations with select third-party app monetization platforms such as AppLovin MAX, Chartboost Mediation, Digital Turbine FairBid, and Unity LevelPlay monetization platforms. This expansion is transitioning to open beta, and all app developers using the supported third-party monetization platforms will have access to the program’s benefits.

This program’s integration will not require advertisers to make any changes to their campaigns to benefit from it. The option to enable Google bidding will be made available to all app developers using the supported third-party monetization platforms in the coming week. App developers can also access Google’s demand through real-time bidding integrations with AdMob and Ad Manager publisher offerings.

This shift to real-time bidding auctions is part of a broader trend in the industry towards automation and optimization. As the industry continues to evolve, advertisers are increasingly turning to automated solutions to streamline their operations and make more informed decisions.

The Impact of Real-Time Bidding Auctions on the Industry

The move to real-time bidding auctions for apps is a game-changer that will revolutionize the industry. This change will streamline the media buying process, increase competition, and ensure that advertisers find the best-priced app inventory more efficiently. This shift will benefit not only advertisers but also consumers who will see more relevant ads.

Real-time bidding auctions are a significant development that will change the way advertisers buy media. It’s like upgrading from dial-up to high-speed internet, or from a flip phone to a smartphone. The benefits are endless, and advertisers will finally be able to find optimally-priced app inventory more efficiently.

In conclusion, Google’s decision to transition to real-time bidding auctions for apps is a positive development that will change the way advertisers buy media. The shift away from waterfall buying will streamline the media buying process, increase competition, and ensure that advertisers find the best-priced app inventory more efficiently. As the industry continues to evolve, we can expect to see more developments like this. Real-time bidding auctions are the future of media buying, and

Saucy Move: Papa Johns’ New CMO to Spice up Customer Experience

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Pesach Lattin
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Papa Johns, the world-renowned pizza chain, has named Mark Shambura as its new Chief Marketing Officer in a bid to revamp its brand strategy and drive growth. Shambura, who comes with a wealth of experience in the restaurant industry, previously served as the Chief Marketing Officer at fast-casual chain MOD Pizza.

During his tenure at MOD Pizza, Shambura drove the company’s digital and product innovation, scaling the brand’s omnichannel engagement and helping the company grow. He also held several marketing leadership positions at Chipotle Mexican Grill, where he played a critical role in the development of the “real ingredients” brand strategy.

Papa Johns is hoping that Shambura’s extensive experience in marketing and digital strategy will help the company elevate its brand and improve customer engagement. Rob Lynch, the CEO of Papa Johns, expressed his excitement about the appointment in a statement, saying, “Mark’s consumer-centric mindset will be critical as we continue to enhance every single touchpoint of the customer experience – from our digital channels to our menu to our brand – to drive engagement and growth.”

Shambura will be responsible for overseeing brand and advertising, menu strategy, product innovation, and the digital cross-channel customer experience, including the brand’s loyalty program. He has expressed his excitement about joining the team at Papa Johns, describing the brand as the most exciting in the pizza category, with tremendous potential for growth.

Shambura’s appointment is seen as a critical move for Papa Johns as it seeks to overhaul its brand image and improve its market position. With his extensive experience and a track record of success in the restaurant industry, Shambura is expected to bring fresh ideas and innovative strategies to the table. His appointment also underscores the importance of culture and values within the company, something that Shambura has emphasized in his statement.

As Papa Johns continues to grow, the appointment of Mark Shambura is expected to be a game-changer for the pizza chain, cementing its position as a leader in the industry and driving engagement and growth.


FreeCast Taps TV Industry Veteran Gary Engel as New Chief Marketing Officer

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In the ever-evolving landscape of home entertainment, FreeCast has made a strategic move to bring on a new executive hire to bolster its marketing efforts. The company has announced the appointment of Gary Engel as its new Chief Marketing Officer, with the goal of driving rapid subscriber growth across its commercial and retail sectors.

With a wealth of experience in the television industry, Engel has served in senior roles at several major media companies, including Warner Bros. Discovery, A+E Networks, MGM, Comcast, and Viacom. Before joining FreeCast, he oversaw the launch of Discovery + and the rapid growth of HBO Max as a Director at Warner Bros. Discovery.

FreeCast CEO William Mobley explained the company’s decision to hire Engel, citing his track record of success in driving subscriber growth at his previous roles. Mobley stated, “As we begin onboarding commercial and retail customers in large numbers, subscriber satisfaction is top-of-mind. We’re excited to benefit from [Engel’s] experience in growing HBO Max, Discovery +, and A+E Networks.”

Engel expressed his enthusiasm for the new role, emphasizing the significant changes that have occurred in the home entertainment space in recent years. He stated, “The change in home entertainment has changed more in the last five years than in the 60 years leading up to that combined. With so much choice, consumers are confused as to what they have and what they want. FreeCast simplifies the entire ecosystem and makes the consumer streaming experience easy, economical, and most importantly, entertaining.”

FreeCast’s decision to bring on Engel as CMO signals a commitment to accelerating its subscriber growth in a highly competitive market. With Engel’s extensive experience and expertise, the company is well-positioned to

WTF is Intrinsic In-Game Advertising all About?

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In recent years, video games have become increasingly popular, with millions of people around the world actively engaging in virtual spaces. As the number of active video gamers worldwide is predicted to exceed 3.2 billion by 2023, the opportunities for marketers to reach customers through intrinsic in-game advertising are seemingly endless. But what exactly is intrinsic in-game advertising, and why has it become such an important part of the gaming industry?

Intrinsic advertising is the process of blending real-world ad experiences into a virtual environment. Instead of interrupting the player’s gaming experience with pop-up ads or banners, intrinsic ads feel natural to the experience. For example, you might see a billboard along a street in a game landscape or a KFC restaurant in the fictionalized city of San Francisco in an arcade game.

One of the leading firms in the intrinsic in-game advertising space is Frameplay. They provide game developers with the monetization opportunity to display in-game ads without interfering with the gamer’s experience. Combined with Kochava measurement and attribution solutions, creating a Frameplay ad campaign has proven to be a successful marketing medium for many advertisers.

But what makes intrinsic ads so special, and why are they preferred by gamers? According to a survey by Frameplay, intrinsic ads are viewed more fondly by gamers and are possibly more effective than interstitial ads. They found that one-in-three gamers say that ads “negatively impact their experience,” and interstitial ads were the second most disliked. By contrast, intrinsic ads feel natural to the gameplay and enhance the gamer’s experience, making them more likely to incite action and generate positive brand association.

Intrinsic advertising is a form of in-game advertising that appears naturally within the game environment, rather than interrupting gameplay with banner ads or interstitial advertising. The IAB Gaming and Esports Advertising Framework notes that intrinsic in-game advertising offers a seamless experience for players and can be used to deliver ads that are more effective and engaging than traditional advertising formats.

Cary Tilds, the Chief Strategy & Operations Officer at Frameplay, explains that the company’s platform enables game developers to place impactful advertising within video game environments without disrupting the gameplay performance or experience. The result is amplified brand exposure for advertisers, additional revenue for developers, and an enjoyable, uninterrupted experience for gamers.

One of the main differences between intrinsic advertising and other forms of advertising is that the ads are “in the game,” making them a seamless part of the gameplay environment. This makes them more effective than ads that are “next to the game” or “around the game.”

According to a report by Frameplay, intrinsic ads are viewed more fondly by gamers and are possibly more effective than interstitial ads. The report found that one-in-three gamers say that ads “negatively impact their experience,” and interstitial ads were the second most disliked. By contrast, intrinsic ads feel natural to the gameplay and enhance the gamer’s experience, making them more likely to incite action and generate positive brand association.

Frameplay’s Intrinsic Time-in-View attention metric is an intrinsic in-game viewability duration metric that offers valuable insights to brands and developers using intrinsic in-game ads. It is a way to measure how much time players spend actively engaging with the ads. This metric is up and running well before the newly released IAB intrinsic in-game measurement guidelines 2.0, which Frameplay contributed to.

This sentiment is echoed by industry experts. According to Jonathon Troughton, CEO of the in-game advertising company Frameplay, “Intrinsic ads feel natural to the gameplay, and they don’t disrupt the experience. This creates an environment where the gamer is more likely to engage with the ads and to associate them with a positive experience.”

But not all intrinsic ads are created equal. Some game studios have taken a more immersive approach, integrating brands into game worlds in more meaningful ways. This has led to a growing tension in the world of gaming advertising, with stakeholders divided into two camps: those porting programmatic adtech into games via intrinsic in-game ads and those integrating brands into more immersive gaming experiences.

While some executives in the space share Epic Games CEO Tim Sweeney’s dislike for in-game billboards, many believe that both approaches have their place in the world of gaming advertising. For intrinsic in-game ad companies, the challenge is to make their programmatic ads as seamless and natural as brand integrations in Fortnite and Roblox. If they can succeed in securing premium console inventory, particularly in sports and lifestyle games, they may be able to compete more effectively with immersive brand experiences.

However, the tension between these two forms of in-game advertising is unlikely to disappear anytime soon. As gaming continues to evolve and new technologies emerge, the future of intrinsic in-game advertising remains uncertain. But for now, it continues to offer an exciting and innovative way for marketers to reach customers as they explore virtual spaces.

According to Malph Minns, managing director of the agency Strive Sponsorship, “Intrinsic in-game advertising has a lot of potential for brands to reach gamers in a natural and engaging way. As the gaming industry continues to grow, we can expect to see more and more opportunities for brands to integrate themselves into the virtual worlds that gamers love.”

So why should brands consider intrinsic in-game advertising? The benefits are clear: intrinsic ads are less intrusive, feel more natural to the player’s experience, and can enhance the gamer’s experience. They can also make a game world seem more realistic and are constantly viewed by a player during the normal course of gameplay. By blending real-world ad experiences into a virtual environment, intrinsic in-game advertising can create a sense of familiarity and authenticity, helping brands build stronger connections with their target audience.

As the gaming industry continues to evolve, it’s likely that we’ll see more innovative approaches to intrinsic in-game advertising, from dynamic product placement to interactive branded mini-games. However, for brands looking to capitalize on this exciting new marketing medium, it’s important to work with experienced partners who understand the unique challenges of the gaming industry.

As education about intrinsic advertising continues to grow, it is expected that more agencies will start to focus on the opportunity. Companies such as dentsu Gaming, Publicis Play, and IPG Media Lab Gaming have already begun creating unique capabilities for advertising in games. The industry will need to rethink planning and buying tools to categorize gaming correctly in the context of other opportunities. 

Whether you’re looking to create an immersive branded experience or simply integrate your brand into the virtual world, there’s never been a better time to explore the possibilities of intrinsic in-game advertising. As the gaming industry continues to grow and evolve, so too will the opportunities for brands to connect with their target audience in new and exciting ways.

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