SPRING 2018 BONUS 2600

GAME OVER SPRING 2018

06 11 26 43 51

TABLE OF CONTENTS

04 Editor’s Note 29 Jon Slade Feels Optimistic About Publishing’s Future HOT TAKES 31 Q&A With Turner’s John Martin 33 Media’s Master Mechanics 05 How Publishers Beg for Direct 37 Shadow Organizations Force Change Connections Media and Marketing Translator What’s In & Out for 2018 MARKETING 06 How Paywall Publishers Stop Churn AI by the Numbers 39 Q&A With e.l.f. Beauty’s Tarang Amin Influencer Dictionary 41 CVS’ Norman de Greve Rethinks Transparency 07 Facebook Irks Media 43 Consulting Firms Threaten Ad Agencies and Marketing Companies TheThe intersection modernization of finance, of money money 45 Richemont Explores E-Commerce and commerce 09 Blockchain’s Media and in China and technology Marketing Applications 47 How Brands Use WeChat 49 Alibaba Counters Counterfeits MEDIA 51 Ad Schools Evolve 53 Russell Westbrook’s Fashion Influence 11 Issues Shaping the New World 55 Amazon’s Private-Label Anatomy of a Brand Failure 12 Business Grows 13 Oral History of Facebook Beacon 15 Q&A With BuzzFeed’s Jonah Peretti ETC. 17 Media Pushes Back Against the Duopoly 19 The Rise of Athlete-Driven Media 57 Office Hours WithJulie Alvin 21 Q&A With Hearst Magazines’ Joanna Coles 59 Jeff Staple’s Guide to Tokyo 23 Quartz Expands Into India 61 A Day in the Life of Fashion Stylist 26 GDPR Misconceptions Micaela Erlanger 27 Q&A With NBCUniversal’s 65 Final Word tearsheet.co Linda Yaccarino

TABLE OF CONTENTS | DIGIDAY 02 FOUNDER AND CEO NICK FRIESE

EDITORIAL TEARSHEET CLIENT CUSTOM PRESIDENT AND EDITOR ENGAGEMENT HEAD OF CUSTOM EDITOR’S NOTE EDITOR-IN-CHIEF BY LUCIA MOSES TANAYA MACHEEL SVP CLIENT ENGAGEMENT MATT GODDARD BRIAN MORRISSEY DREW SCHUTTE REPORTER DIRECTOR OF STRATEGY AND EXECUTIVE EDITORS SUMAN BHATTACHARYYA CLIENT ENGAGEMENT DIRECTORS SPECIAL PROJECTS LUCIA MOSES DAVID AMRANI SHAMBRY MCGEE, The media world, seemingly perpetually once Facebook’s biggest booster, pleading JAMES PALMA, MANAGING DIRECTOR, MANAGERS in flux, is in the midst of what appears publicly for more money for publishers from GLOSSY NEIL STROW EDITORIAL PRODUCTS STEPHANIE ROGERS, to be a more significant period of the sprawling platform. Peretti and other EDITOR-IN-CHIEF SHAREEN PATHAK COMMERCIAL DIRECTOR, EUROPE CHEN SHAO, upheaval, with tech giants sucking up the media executives are finding their voices in JILL MANOFF THOM PICKERING ADONIS VASQUEZ UK EDITOR majority of ad dollars, digital advertising vocally opposing platforms like Facebook, SENIOR REPORTER JESSICA DAVIES CLIENT ENGAGEMENT MANAGER COPYWRITERS plagued by a lack of transparency and a turnabout from their recent acquiescence HILARY MILNES BRIANNA WINBUSH SAMANTHA DUPLER, controversial content, companies taking to the whims of Facebook. (See video, pivot UK BRANDS EDITOR REPORTERS DAVID TEICH a hard look at their role when it comes to to.) Joanna Coles, head of content at Hearst CLIENT ENGAGEMENT ASSISTANT SEB JOSEPH JESSICA SCHIFFER, Magazines, takes the long view, telling us COORDINATOR workplace fairness and cultural impact, BETHANY BIRON VERONICA ZEGARRA SENIOR REPORTERS LUCIA MORRIS and the need to stake out a global claim the recent travails of fake news only prove SAHIL PATEL, CLIENT SERVICES DIRECTOR taking on new urgency. the necessity and power of editing. TIM PETERSON, PRODUCT JONATHAN MESSINA Fixing massive industries isn’t as We also profile the unsung heroes of LUCINDA SOUTHERN FINANCE simple as hitting a button and starting the the modernization of the media, from the CHIEF PRODUCT OFFICER UK SENIOR MANAGER, CLIENT SERVICES/AUDIENCE REPORTERS CFO game over. But as we show in our ninth newsletter editor to the subscription czar to PETER SURRENA DEVELOPMENT MAX WILLENS, JOHN SOL issue, media and marketing are in ways the head of data protection. DESIGN DIRECTOR DANIEL MORRIS ILYSE LIFFREING FINANCE MANAGER large and starting anew from an era where But for change to happen, it must SCOTT ROSSER CLIENT SERVICES COORDINATOR scale trumped loyalty, reach obscured follow the money, and in media, that NEWS EDITOR MARY ANN BOYD SENIOR AD OPERATIONS EAMON MCCUE JUJU KIM impact and the short term dominated means the marketers. Shareen Pathak MANAGER SENIOR FINANCE ANALYST the long term. We see the media and spent time with Norman de Greve of CVS MULTIMEDIA PRODUCER MEAGHAN CURRAN ABUL HASAN marketing world becoming less reliant on Health, who is at the forefront of the trend ADITI SANGAL BRAND SENIOR DESIGNER Facebook, more transparent, increasingly of chief marketer as politician, intent on SENIOR MANAGER, IVY LIU DEVELOPMENT globalized, and belatedly more inclusive making purpose-driven marketing not just a OPERATIONS AUDIENCE DEVELOPMENT EVP GLOBAL BRAND and representative. These themes run gimmick. Change will also come externally, UI/UX DESIGNER VP HR/OFFICE OPERATIONS AARON GOTTLIEB DEVELOPMENT throughout the issue, with a “Master as detailed in the shadowy pressure groups JULIA CHOI ANDREA SONTZ NANCY PICKER BUSINESS DEVELOPMENT Mechanics” section highlighting those in the springing up to force marketers to clean up ASSISTANT COORDINATOR BRAND DEVELOPMENT DIRECTOR trenches mastering the tactical expertises their acts. For agencies, change is always JESSICA O'TOOLE SAM REED EVENTS GERRY HOUSER that will define what comes next. afoot, with the current disruptors coming in

GENERAL MANAGER BRAND DEVELOPMENT In media, our focus is on how the guise of the big consulting firms. EVENTS CONTENT EDITOR MEGAN KNAPP MANAGER publishers are attempting to cobble For our part, at Digiday, we’re ANGELA BARNETT MANAGERS SARA CEBALLOS together a sustainable, independent embracing change by building out our EVENTS PROGRAMMERS TARA HUTTON, future, free, as much as possible, from premium membership program, Digiday+, KERAN BOYD, GRACE KIM, the whims of the duopoly. As the recent which includes exclusive benefits like this HOPE REICHARD VANA KOUYOUMJI MARKETING demise of LittleThings shows, very little magazine, research, Slack town halls and KELSEY LUNDSTROM MARKETING DIRECTOR in digital media has proved lasting. One live events. We hope they’re informing, DIGIDAY+ COORDINATOR MIKE MADARASZ day, LittleThings was boasting how it inspiring and delighting you. As always, let MANAGING DIRECTOR IRENE ENTRINGER shot to 50 million users; months later, it us know what you like, dislike and want that MANAGERS JACK MARSHALL was winding down operations. Nothing you’re not already getting. We appreciate all CAROLINE BOTTGER, speaks to this more than Jonah Peretti, the feedback. D RESEARCHER ERICA TAYLOR MARK WEISS COORDINATORS BUSINESS DEVELOPMENT MELISSA HAYES, MANAGER DANIELLE SORENSEN For all inquiries, please email BRIANNE KENNEDY ASSISTANT [email protected] EMMA PAUL

03 DIGIDAY EDITOR'S NOTE | DIGIDAY 04 ALL THE WAYS PUBLISHERS WHAT'S IN/OUT FOR 2018 HOW PAYWALL PUBLISHERS INFLUENCER BEG FOR DIRECT KEEP YOU FROM UNSUBSCRIBING IN OUT Replacing subscribers is expensive. Here are some of the ways publishers keep DICTIONARY CONNECTIONS people from churning. Here are tricks they use to capture email addresses, Pivot to voice Pivot to video #AD The Federal Trade Commission’s preferred hashtag app users and registered readers. for disclosing material connections with advertisers, like Apple News Facebook news feed receiving money for promoting a product on social media. PRICE CUTS Appeal to people’s wallets. In January, Los Angeles AUTHENTICITY A sought-after quality in influencer Bragging about email subscribers Bragging about Facebook followers Times subscribers that called to cancel were offered marketing that suggests an influencer has a real REFER A FRIEND another year for just $1.04. LA Times parent Tronc has connection to a product they are endorsing. Why do audience development when your existing fans can Paid amplification Organic reach offered similar deals at other titles. Those deals account do it for you? Email-focused publishers including The Hustle, for less than 5 percent of Tronc’s subscriber base, says BOT PROVIDER A service that Instagram influencers Mark Campbell, svp of digital marketing, but they also Morning Brew and theSkimm use referral programs to rope Surfaces Verticals use to generate likes, comments and followers in an help ensure a steady subscriber base. automated way based on certain rules. in new subscribers, offering swag like coffee mugs and Commerce editors Copy editors T-shirts and private access to Facebook groups as incentives. BRAND AMBASSADOR PROGRAM ADDED BENEFITS An arrangement in which an advertiser books an Abandoning SXSW Abandoning Cannes SWEEPSTAKES Publishers are constantly adding coverage and influencer for an extended time period, like back-to- An email address is an email address, right? Publishers benefits to keep subscribers engaged. Tech school or prom season including Refinery29 and Domino still dangle winnings to Google as benevolent dictator Google as tyrant publication The Information, for example, recently Collaboration between an hoover up new email subscribers. added the ability for subscribers to follow certain CO-CREATION advertiser and an influencer to make a co-branded Newsletter teams Distributed media teams topics and companies that it covers. product such as a clothing line. ONE-CLICK MOBILE SIGN-UPS Emboldened CMOs Meek marketers It helps to make it easy. Publishers are using technology that ENGAGEMENT CUSTOMER SERVICE lets mobile visitors sign up for newsletters with a couple A like or comment on a social platform. Trump churn Trump bump taps of a finger. To keep subscribers, it helps having people give prompt, personal responses when questions or FTC ACT Law that prohibits deceptive advertising and Brand safety Cheap reach problems arise. The Atlantic is growing the number requires disclosure of material relationships between FISH WHERE THE FISH ARE of people on staff who deal explicitly with customer advertisers and endorsers. service and experience for its paid products this year, Right after Facebook announced it would deprioritize news Adam Mosseri Campbell Brown in its news feed, BuzzFeed launched an ad campaign on the including digital access to the magazine and The FTC ENDORSEMENT GUIDES Masthead, its membership program. Information from the FTC that explains how material social platform asking users to download its mobile app. Influencers Ad agencies connections should be disclosed under the FTC Act. COMMUNITY A person with a large following on a GONE, BUT NOT FORGOTTEN NBA NFL Community is one reason people subscribe, which is INFLUENCER social platform. To make sure their posts don’t disappear entirely from why publishers such as The Dallas Morning News and people’s Facebook feeds, publishers including the MIT college sports site Scout use message boards, Slack Vice as a cautionary tale Vice as a model A group of influencers that channels and Facebook groups to bring their readers INFLUENCER ROSTER Technology Review are instructing their readers how to a brand rotates to create more transparency and drive together. Eighty percent of Scout’s monthly pageviews ensure their content is seen first in the new news feed. Time well-spent Pageviews clearer results, such as the Victoria’s Secret Angels. last year came from its message boards.

IN-PERSON EVENTS Membership programs Ad revenue INSTAGRAM POD A group of up to 30 Instagram accounts that works to boost the engagement on pod Publishers are throwing more events in part because members’ posts so the platform’s algorithm displays the Better ads Autoplay video ads with sound PERSONALIZATION they’re a great way to reach new subscribers and get them posts in more users’ feeds. to provide their email addresses. At a taco festival Gannett Publishers are tailoring messages, offers and threw last summer in Detroit, most attendees were not Tech addiction Sex addiction content to readers. The Wall Street Journal, for LOGAN PAUL Infamous influencer that faced backlash subscribers to any Gannett titles. example, adjusts its renewal offers based on the for posting a YouTube video of a hanging body he Human followers Bot followers kinds of content subscribers read and who they are. discovered in a Japanese forest known for suicides.

MICRO-INFLUENCER An influencer with 10,000- Wellness brands Fitness brands 100,000 followers. Micro-influencers are considered more authentic than influencers with millions of followers. What people say and what they really mean in Alexa Spectacles media and marketing. MUSICAL.LY Popular lip-sync app with Gen Z that is the Consultancies Ad agencies AI BY THE NUMBERS next frontier for influencer marketing. The use of artificial intelligence — the technology that might take An influencer with less than AUTHENTIC: Pretending to act like a real person Diversified revenue Pipe dreams over our jobs in the near future — is steadily growing in marketing. NANO-INFLUENCER 80,000 followers. This subset of micro-influencers is FACEBOOK WATCH: YouTube without the audience supposedly even more relatable than micro-influencers. Live events Live video DESTINATION: Website 1950: The year computer scientist Alan $650 MILLION: The reported price Google NETWORK AMPLIFICATION A fraudulent tactic in Trust Plausible deniability which Instagram influencers work together to promote Turing posed the question: “Can machines paid to acquire AI lab DeepMind in 2014 (The DIVERSIFICATION: Going from Facebook to YouTube certain posts or accounts to boost results think?” (Source: “Computing Machinery and New York Times). AR stunts VR stunts WATCH TIME: Proof of actual viewership Intelligence”) OFFICIAL STORIES Snapchat’s version of other $143,000: The average salary of an AI platforms’ verified accounts. COMMUNITIES: Glorified message boards Local news on Facebook All other news on Facebook 78: The percentage of marketers who are engineer (Paysa) increasing their spending on AI marketing WELLNESS: Selling health and beauty products PAID POD An Instagram pod in which a moderator Livestreaming on Twitter Facebook Live technologies (Forrester) 14: The number of times the volume of active requests between $5 and $20 from users who want to IN DEVELOPMENT: The show’s happening, we swear! U.S. startups developing AI systems has jumped join, to keep members accountable. 74: The percentage of marketers who have OTT Cable TV since 2000 (AI Index) VIDEO FRANCHISES: Web series seen increased sales of products and services #SP A hashtag commonly used to denote partnerships over the past year because of AI (Capgemini) 60: The percentage of marketers that are using between advertisers and influencers but isn’t good IP: Web series Pivoting to voice Pivoting to video AI for media buying and programmatic purpos- enough for FTC disclosure purposes. $29 BILLION: The number AI spend will reach es (Salesforce) LICENSING: Selling web series to different distributors AI-driven media buying Ad agencies by 2021 (eMarketer) SPRAY AND PRAY Mocked by influencers, this strategy PREMIUM VIDEO: Still not good enough for TV 100: The number of AI researchers employed involves a company sending a product to an influencer Blockchain Big data 14: The percentage increase in orders Volkswa- by Facebook (Facebook). and hoping they post about it. FACEBOOK GROUPS: Glorified message boards gen’s dealerships saw this year after using AI TRANSLATOR GDPR hysteria Ad-blocking hysteria for media recommendations for the first time (Volkswagen)

05 DIGIDAY HOT TAKES | DIGIDAY 06

2013 - 2018

Facebook has long subjected media and marketing companies to its whims, resulting in a relationship characterized by angst and suspicion. Here’s how Facebook has screwed over companies through SLOW BURN the years. BY JUJU KIM

WALLED-GARDEN STRATEGY FRIENDS AND FAMILY FIRST 2.0 NOT TAKING THE BAIT In February, Facebook starts favoring what it Facebook announces the feed will favor friends In April, Facebook says it will reduce “like-baiting” thinks users want to see based on user surveys. and family posts, effectively de-emphasizing — when a post asks for comments, shares or Facebook Audience Network, which uses content from publishers and brands. A week likes — in its feed and in August does the same for Facebook data to sell ads outside the social later, Facebook says it will consider users’ stories with clickbait headlines. In November, it network, expands in May, giving Facebook ratings of news outlets’ trustworthiness when launches a new tool to make it easier for users to control over access to its inventory and user and ranking publishers in the feed. banish friends and brands from their feeds that advertiser data. Facebook admits nine different advertise too aggressively. measurement errors. 2013 2015 2017

HOLD THE MEMES 2014 FRIENDS AND FAMILY FIRST 2016 WATCH OUT 2018 Facebook reduces the visibility in its news feed Friends and family content begins appearing Facebook debuts in October human review for to businesses that post low-quality memes, higher than companies’ posts in the feed in April. politically targeted ads after discovering Russian resulting in less traffic for those companies. A week later, Facebook shutters its application trolls spent $100,000 on ads on its platform programming interface that shared friends’ data, to influence U.S. politics, warning this could like location, with third-party apps and those slow down how quickly marketers can launch brands’ marketers. In July, Facebook’s new See and adjust ad campaigns. Two months later, First feature lets users choose which friends and Facebook’s feed algorithm starts prioritizing pages show up at the top of their feeds. creators producing shows for its Watch video- viewing section.

2012 - 2018

The deteriorating relationship between Facebook and media and UNFRIENDED marketing companies, in quotes BY JUJU KIM

FACEBOOK AND FAKE NEWS “Because Facebook does not think of itself FINAL STRAW TEMPERED EXPECTATIONS primarily as a news company, it seems to want “[It’s the] final nail in the existing coffin.” — “We’ve lowered our expectations from Facebook us to stop expecting it to act like one. Whether Doug Baker, director of strategic services at in regards to collaboration and partnership.” — we should is a more complicated matter.” — digital agency AnalogFolk, on organic reach Jeffrey Melton, then-chief distribution officer at Katharine Viner, editor-in-chief of the Guardian, on Facebook after it announces its feed digital agency MRY, on declining organic reach on as Facebook comes under fire for spreading will prioritize user content over posts from Facebook misinformation and fake news publishers and brands 2012 2015 2017

FOLLOW THE AUDIENCE 2014 SUSPICIONS EMERGE 2016 ENDING VIDEO PAYMENTS 2018 “In the U.S., people spend about 25 minutes a “Facebook is just another walled garden, and “If they came back to us six months from month on news sites and eight hours a month on it’s happy to extract your content and make now and offered to pay for another type of Facebook. As a news organization, why wouldn’t money on it.” — Shay Brog, then-senior director program, I’m not sure we’d go back because you want to publish where the audience is?” — and head of partner strategy at AOL, ahead of none of it has worked.” — an exec at a top Martin Belam, then-lead user experience and the launch of Facebook Instant Articles publisher, on Facebook ending payments for information architect at the Guardian, on benefits live and in-feed video of publishing to Facebook

07 DIGIDAY FRONTHOT OF TAKESBOOK | DIGIDAY 08 A blockchain is a shared ledger that’s updated nearly KNOW YOUR instantaneously, maintained and auditable by the DIRECT participants — and relies on no single party and can’t CONNECTIONS BLOCKCHAIN be doctored. Sounds anticlimactic compared to all the Many brands are intent on removing the middlemen It’s the buzzword du jour. Here’s enough to blockchain buzz, but there are a lot of opportunities for when it comes to data to establish more direct know to be dangerous. BY TANAYA MACHEEL improvement in the media and marketing industries 4 connections to customers. Transactions have always that a distributed ledger can help. involved middlemen — blockchains remove the need for them and any other unnecessary parties. For example, a search engine built by BitClave on blockchain technology allows businesses and consumers to interact directly and removes the need for ad-service platforms. MANAGING CONSUMER DATA Blockchains allow marketers to see data in the network and use it for brand-building efforts — 1 without having to attribute it to any individual. For AD-DELIVERY example, Comcast’s Advanced Advertising Group has VERIFICATION a blockchain-based platform that lets marketers make Blockchains have the potential to detect whether ads ad buys in broadcast, and streaming TV allows them are being delivered and if they’re going to the right to anonymously match their data with programmers 5 place, thanks to their ability to document not just a to target consumers without having to share customer single exchange of value, information or data, but to information. document the entire history of that data point on the chain.

MARKETING Conceivably, advertisers can use data KILLING FRAUD to grow customer profiles using all the information With blockchains, ad buyers can see where advertisers they’re willing to share, rather than gathering are spending their budgets, how many parties 2 information about customers from various disparate along the way get a cut of that spend and who — sources — one that tells a customer’s age, another its theoretically making it easier to monitor and mitigate salary and another its favorite restaurant, for example. 6 potential fraud. Maybe one day they’ll be able to The technology would allow advertisers to be more identify and blacklist fraudsters in real time. targeted in their marketing and only spend advertising dollars on people who’ll be receptive to it.

CORPORATE SOCIAL TRACKING AD RESPONSIBILITY IMPRESSIONS It’s hard to see or verify whether companies ever actually follow through on their CSR promises, but Blockchain technology will be most effective if there blockchain technology would make them public is a network effect. Because of its ledger-based 7 and hold the companies accountable. For example, nature, a company can defer to the network to view 3 employees participating in charitable giving an impression and confirm on chain if it’s real. MetaX, initiatives can rest assured their money will go to an adChain-powered platform, for example, can their organization of choice and that their employer essentially tag a creative asset and follow it on the doesn’t have access to them. The organization can internet to track whether it was seen, who saw it, trust companies are sending the funds, know the where it ran, conversion rates and how budget was makeup of the funds and secure their terms and spent along the chain. delivery.

09 DIGIDAY HOT TAKES | DIGIDAY 10 ISSUES SHAPING THE NEW WORLD 2017 was a turbulent year for media and marketing. Publishers faced harsh realities 1. about the strength of their audiences as LIFE AFTER FACEBOOK Media companies must now get to grips with a reality their reliance on the duopoly became more marketers did years ago: If you want Facebook to pronounced, agencies began facing up to some distribute your content, you’re going to have to pay for home truths about their cultures, and brands it. Building a viable publishing business on Facebook’s back is no longer an option, and companies reliant on finally began asking serious questions about the social network have to diversify their traffic sources how their digital ad dollars are actually being and build more meaningful connections with their audiences instead. That isn’t necessarily bad news. Some spent. As the dust settles, a new landscape is suggest Facebook’s shift could be a blessing in disguise emerging. Four key issues are helping shape it: for purveyors of quality content, forcing them to be more disciplined about their own businesses. Not everyone BY JACK MARSHALL will figure out how to adapt to this post-Facebook world successfully, of course. Casualties can be expected. 2. CULTURE For all parties in media and marketing, cultural pitfalls are now deeper and more pronounced than ever. Consumers increasingly expect the companies they interact with to take a stance, be it on social, political or other cultural issues. But at the same time, the backlash for ill-placed appropriation is fiercer than ever, with organized groups taking to social media to name and shame those who miss the mark. It’s a delicate tightrope to walk, and it isn’t getting any easier. And it’s not just companies’ public-facing activities that are coming under more careful examination, either. Agencies and media companies have for years claimed their unique “cultures” set them apart from the crowd, but it’s suddenly those very cultures that threaten to undermine their entire businesses as stories of impropriety and harassment bubble to the surface. If your unique selling point to clients or audiences is your “culture,” it’s time to take a hard look at what that culture actually is.

3. 4. TRANSPARENCY GLOBALIZATION When it comes to making demands from partners, For years, marketers and media companies have talked about thinking more globally, advertisers’ bark is often worse than their bite. But brands but actually doing so has become a necessity. The global influence of Chinese internet now demand greater transparency around how their giants such as Alibaba and Tencent is intensifying as they ratchet up their activity in money is being spent and how their agencies are actually the U.S. and pour investment into companies like Snap Inc., while retail giants such as being compensated. Awkward transparency questions Amazon and Walmart are increasingly setting their sites beyond the domestic market. can no longer be dismissed with artfully phrased excuses Meanwhile, for publishers, international interest in U.S. news is as strong as it’s ever or by pointing fingers at others. Meanwhile, media been, and international media outlets smell an opportunity to offer U.S. readers a more companies, platforms and vendors are also coming under “objective” voice. Brands, too, are finding themselves under increased pressure to greater scrutiny as advertisers question their ability cater to and be sensitive to wider, more global audiences. To make matters worse, the to place ads in appropriate places, or even to disclose General Data Protection Regulation is making companies think more globally, whether exactly where they appeared after the fact. Digital media they want to or not. The European regulation, which will be enforced starting May 25, is maturing, and as investment in the channel continues will force a wide range of media and marketing companies to handle consumer data to grow, questions about what’s really going on behind far more carefully or risk significant fines. It may even break some business models in the curtain are becoming far more sophisticated. the process.

11 DIGIDAY MEDIA | DIGIDAY 12 ‘REINVENTING ADVERTISING’: An oral history of Facebook Beacon BY JACK MARSHALL

In 2007, Facebook’s now-booming ad business Facebook users weren’t impressed, citing privacy was nascent. The company had sold banners concerns and an inability to control what was and experimented with other ad placements, but being shared to their accounts. hadn’t yet offered the types of highly targeted Facebook formally shuttered the controversial behavioral ads it’s known for today. product, which was subject to class-action The introduction of its Beacon ad product lawsuits, in 2009. CEO Mark Zuckerberg drastically changed all that. The service subsequently described the initiative as a effectively began broadcasting its members’ “mistake,” and the company named a conference activities on third-party websites directly to their room after the product as a cautionary reminder Facebook news feeds by default, often without to staffers. Here’s the story of Beacon from their knowledge. Perhaps unsurprisingly, many people who were there.

THE PRODUCT THE LAUNCH THE BACKLASH THE AFTERMATH Jeff Glueck, then-CMO, Travelocity: Glueck: I remember Zuckerberg at the launch Chester: Beacon alerted everybody Glueck: I think we felt we had tried to Facebook approached us about being one of event in a swanky loft in Tribeca. He’s so that Facebook was going to be a privacy help them avoid these problems that were the launch partners for Beacon. Initially, we articulate and such a visionary, but at the problem. And what was important was that avoidable. Facebook was a new company; were quite enthusiastic — Facebook was the time, he was really young and still learning it wasn’t just people like me complaining; they were moving fast and breaking hot new social network. We sat down with how to give a public speech. He somewhat it was users publicly complaining and things and just didn't want to slow down. them and were very excited to participate awkwardly said something like, “Once every embarrassing the company. One guy I think their view was the world should be and gain from the social viral graph around hundred years, everything in media and complained his girlfriend found out on social, and privacy was overrated. Beacon travel. If someone booked a trip to Hawaii advertising changes, and today is such a Facebook about an engagement ring he ultimately morphed into Facebook Connect and it appeared on their Facebook feed, day.” I remember thinking at the time it was a purchased. The users themselves were and has been hugely successful. I think maybe that would encourage their friends pretty confident statement. upset, and that was the first time Facebook Facebook learned a lot of lessons with to book a trip. It seemed like a good idea. really ran into that problem. Beacon. Stoller: At the time, Facebook was still new. Chad Stoller, then-executive director, Looking back, it’s hard to remember there Stoller: The initial reaction happened Chester: Beacon wasn’t killed. It was emerging platforms at Organic: was a time when it was struggling to get pretty quickly. There’s nothing cool about wound back, but just took a different It was certainly a big deal at the time attention from CMOs. It was one of those shopping for a bargain, and I recall people guise. Facebook can change its stripes and because it was a way for Facebook to be things that was helped by people being being worried Beacon made them look clothing very adeptly. To this day, it expects more sophisticated in the ad game. The curious about Zuckerberg. There was still this cheap. They were buying stuff on Overstock. to make an announcement [about a product whole offering was about saying for the first fascination about this hoodie-wearing CEO. com and maybe didn’t want their friends to related to user privacy], for there to be an time: “It’s not just advertising; we’re going know that. attack, and then to dial it back a bit but to turn your friends into endorsements.” Chester: Zuckerberg said he was “reinventing keep the basics. Nothing has altered that advertising as we know it,” which I thought Glueck: We were sensitive to how Beacon business model. Jeffrey Chester, executive director of the was absurd. It showed his naivete and was going to work [in terms of user privacy], Center for Digital Democracy: I still think showed you there was a lack of insight and and some concerns began to build on my Stoller: I look at Beacon as probably one of about Beacon a lot. It was Facebook’s first understanding. team. In the end, Travelocity declined the key chapters of connecting behaviors major foray into digital advertising, and to participate. We pulled out quietly; we and sharing your behaviors online. If with some bumps along the way, it’s existed didn't want to make a stink. We told them anything, it kind of opened up that era. I in some way ever since. We immediately privately the way they were constructing the think it was an important era, regardless of publicized and critiqued the business privacy opt-in and opt-out was not going to it working or not. Often, things fail, but they model. This idea of “we collect all your data fly. There was a lot of danger in being opted come back in a different guise. Nowadays, all the time” was inappropriate. in by default. If you miss it, the surprise trip Facebook is getting something like 40 cents you’ve booked for your wife is suddenly out of every dollar. showing up in your profile.

13 DIGIDAY MEDIA | DIGIDAY 14 BACK TO REALITY BuzzFeed CEO Jonah Peretti tells Digiday that Facebook is returning to its roots — and that’s not a bad thing for BuzzFeed. BY LUCIA MOSES

As a media company that’s grown on Facebook’s back, you surprised some by But news is expensive, many advertisers taking a shot at the company. How should don’t want to be around it, and it doesn’t Facebook help publishers? share well on Facebook. My big criticism of the strategy so far is all I think news is a better business than their revenue is generated in the news feed, people think. In the short term, news is and they only share revenue for new surfaces Google and Facebook are going more expensive, and it takes time to build — Instant Articles or Watch — but don’t share trust. But if you look at our cost structure “ “ any of the revenue from their main source to do more to support news. compared to The New York Times or of revenue, the news feed. There’s no way Washington Post, we have a lean cost to influence what’s in the news feed if the structure and reach a large audience for algorithm is only about distribution. You’re If they don’t, they’ll be regulated. the team we have. If you want to bet on the not getting to the economics of the traffic future of news, you want to bet on people production. So it’s in Facebook’s interest to doing quality news, digital only, reaching a share news feed revenue, not because it’s lot of people. There will be more models for good for the world, but it allows Facebook news. I think Google and Facebook are going to have some control of what’s showing to do more to support news. If they don’t, up in the news feed. If they say they want they’ll be regulated. local or trusted news, they say that will video’s really important. What we realized that we know doesn’t work. get more distribution and more revenue, is, video isn’t a discipline — it’s a way of Was going all-in on native a mistake in Is there a subscription model in BuzzFeed so companies can produce more of it. It communicating. We’ve cracked a lot of retrospect? News’ future? doesn’t need to be some carriage fee or a the formats. Tasty videos are short, sped Not initially, but there was a point where it It’s possible. A partial paywall could make thing where the amount of traffic is directly up, have a lot of power, drive real-world made sense to shift. We could have done it a sense. But it’s also important we educate related to the revenue. It could be that activity and are very social. Then, we have little earlier. When we started, programmatic and inform the broad public. If every news they have a metric for time well-spent, and shows like “Worth It” and “Unsolved” that was a lot worse — ads loaded more slowly; organization puts the majority of their you’re paid 2 cents per minute of time well- are TV-like and air on YouTube. They’re companies doing it were startups and content behind paywalls, it’s hard to have an spent. Now, they don’t really have levers to appointment viewing. That’s replacing what making ads that had lots of latency and informed electorate. influence it. basic cable was, with the added benefit often didn’t have good data privacy. When of building community. We’ve started we did testing with a small percentage of Did VCs have unrealistic expectations for How do you think Facebook’s stronger to develop longer stuff for SVOD type of our users, we found no negative impact digital publishing companies? focus on sharing will impact BuzzFeed? platforms. and lots of revenue. We also saw positives I take a long-term view, and companies like Facebook is going back to their roots, and in coordinating native and programmatic BuzzFeed are always going to set aggressive that got us excited. A lot of the stuff we BuzzFeed missed its growth target last and the overhead of having lots of goals, and sometimes you hit them, and make has a high level of comments. You year and ended up laying off people. What communication back and forth. sometimes you don’t. In terms of the value post a Tasty video, and people post their would you do over if you could? of the company, if that’s your focus, you lose own versions and use it as an excuse to The big thing would be staying more true Are you still committed to news, and why? track of the actual business. The market cap get together with friends. So this shift is to our social DNA and pushing with clients I love our news business, and it’s very shouldn’t matter that much if you continue encouraging for companies that make to make video that fits with what we know important to our strategy. It’s incredible, the to grow every year. D content with a deep social DNA in it. works with our audience. Having some year they’ve had, with the [Steele] dossier clarity on formats and give an advertiser and Kevin Spacey story, and our U.K. team The pivot to video has seen a backlash this something that works on social, even if just broke a Brexit story. Their contribution past year. What’s your view? it takes longer to convince them. One of to the company is manyfold. News does There’s a secular shift toward video, and the things that happened was there was provide prestige and charisma to a company I see that continuing. It’s the majority of pressure to make video that looks like that has benefits. I think news is increasingly our content views and revenue. I think commercials that look like TV, and it’d be going to be important to the platforms; sometimes people overplayed it a little hard to do business and deliver. Sometimes Facebook is saying it doesn’t want fake news bit. I don’t think text is going away. But brands say [they] want a different format on the platform.

15 DIGIDAY FRONTPLATFORMS OFMEDIA BOOK | DIGIDAY 16 THE REBELLION Media companies are speaking up against the dominance of Facebook and Google. BY LUCIA MOSES

It was April 2016, and BuzzFeed had just a lot of benefits for their business and Zuckerberg last year that they would public opinion. And the leverage media Kint says. “It’s pretty hard to argue most an unlikely outcome. But if publishers are exploded a watermelon on Facebook help some media companies have better attack Facebook unless the platform did has — something Murdoch is well aware of the growth going to two companies is entering the acceptance stage of their loss Live, making it Facebook’s most- models.” a better job of compensating publishers. of — is denting Facebook’s public image healthy.” of faith in platforms, they’re getting more watched live video to date. BuzzFeed It used to be that criticizing the Since then, Thomson has laid out terms: and standing with government officials and At the same time, public opinion vocal. was flush with $3.1 million in Facebook mighty platforms was something media “carriage fees” that Facebook would pay regulators. started turning against Google and The tech companies are at least money, making it the media company executives would only do behind closed publishers. Facebook hasn’t dismissed Indeed, after years of going from Facebook after the discovery of “fake news” listening, and then some. Facebook, along the platform paid the most to make live doors, in hushed tones. The fear, as Wired the idea, either; Campbell Brown, news strength to strength, Facebook had a rough leading up to and during the 2016 election, with Google, is testing subscription support video content, ahead of even The New Editor-in-Chief Nick Thompson recently partnerships chief at Facebook, responded 2017. Sure, profits continued to soar, but the which gave media companies leverage. for publishers. Google has expanded its York Times and CNN. Just a few days referenced on the Digiday Podcast, is “never say never” when asked about it at aftermath of the U.S. presidential election There’s growing awareness about the fast-loading mobile pages to accommodate later, onstage at Facebook’s F8 developer Facebook has a dial somewhere that can the Code Media conference in February. and questions about what role Facebook addictive nature of technology. In 2017, more article formats and introduced conference, BuzzFeed founder Jonah be turned to cut off media that gets too Justin Smith, CEO of Bloomberg played dogged the company. On a parallel the News Media Alliance, a trade group an ad-blocking version of Chrome that Peretti expounded on all the live video uppity. But now, publishers are at the Media, has been using his perch to track, the media has been falling out of love representing 2,000 newspaper companies quality publishers hope will lead to higher the viral content company could make for end of their ropes, and even formerly warn other publishers about the danger with Facebook for years. from The New York Times to McClatchy, ad demand for their own sites. Chavern Facebook, including even a game show. ardent Facebook boosters like Peretti are of rushing head-first into giving their Starting in 2015, Facebook introduced began to seek an antitrust exemption from is hopeful there will be progress on his Facebook and BuzzFeed seemed to be arm finding their voices. The biggest target content to distribution platforms. Linda Instant Articles and paid publishers to make Congress so its members could negotiate antitrust initiative this year. in arm, marching into the brave new world is Facebook, due to its audience reach, Yaccarino, ad sales boss for NBCUniversal, live and news feed video for the platform, collectively with the platforms. Along with There’s extra urgency now with of live video. influence and frequently changing strategy has become an evangelist for fixing giving publishers hope that they could the exemption, David Chavern, CEO of the research highlighting the decline in society’s That was then. These days, Peretti’s that publishers have scrambled to keep up digital advertising, which has included build a real business on the platform. But News Media Alliance, has been lobbying trust in social platforms and the potential spiel has turned into a rant at conferences, with. The feeling at many publishers is they bashing Facebook for failing to meet the the revenue hopes never really panned out, the duopoly to provide subscription, brand, rub-off effect of that on publishers, along to media outlets and to BuzzFeed staff got a raw deal. They helped Facebook by measurement standards that television is and Facebook kept changing tack on video, data and revenue support to publishers. with consumer brands, when they appear that Facebook needs to share more of its feeding it content to keep people engaged, held to. “It was after years and years of the which was exasperating for publishers that “You’re trying to highlight the problem on those platforms. news feed revenue with publishers. It’s and Facebook has meanwhile taken a huge inability of the industry to keep up with organized themselves to give the platform for Google and Facebook; you’re trying to In the U.S., though, the number of a bold statement for a media company chunk of their business through a better consumer behavior, which was frustrating what they thought it wanted. Whole make policymakers aware of this problem; people speaking out is still limited to just that literally built its business around ad system. all of us to a boiling point,” she says. companies got venture capital funding you’re talking to the broader public about a handful. The vast majority of publishers Facebook. It signaled more broadly to Peretti is joined by other publisher Media executives are still lobbying on the basis of those hopes. All the while, the fact that this is not a legacy versus use Google for their ad stack; Google and the rest of the media landscape that the critics, chiefly News Corp chief Rupert the platforms behind closed doors. But Facebook was sending less organic traffic to digital problem,” Chavern says. Facebook still contribute some 70 percent platform-publisher imbalance wasn’t just Murdoch and his top newspaper executive, by speaking publicly, they hope to sway publishers. In some ways, U.S. media execs are of publishers’ referral traffic. There’s still hurting traditional media. Robert Thomson, who in blunt and advertisers that are spending more and Around that time, Jason Kint, CEO of catching up to some of their counterparts in a pervasive fear that in speaking out too “It’s in Facebook’s interest to share sometimes florid terms charge that the more of their budgets with the platforms. digital publisher trade association Digital Europe, where suspicion of and opposition loudly or too often, someone at Facebook news feed revenue, not because it’s good tech giants are damaging journalism’s They also are holding out the possibility Content Next, crunched the numbers to U.S.-born tech giants runs deep, there will turn a dial and turn off their referral for the world, but it allows Facebook to business model and should do more to that Facebook truly fears: A united front to and found that all the growth in digital are influential media companies like Axel traffic entirely. have some control over what’s showing compensate media companies. According impose stringent regulations on it either advertising was going to Google and Springer and there’s a long history of “There’s no upside to being in the up in the news feed,” Peretti later said in to Wired, Murdoch has gone further, in the U.S. or Europe. Media wields outside Facebook, which became his cause célèbre. sensitivity to privacy concerns. The U.S. public on this,” Kint says. “They can’t an interview with Digiday. “It would drive bluntly threatening Facebook CEO Mark influence when it comes to swaying “You’re always looking for simple ways media hasn’t overtly asked for the platforms survive without them.” D to describe to the market that it’s not right,” to be broken up or regulated, which seems

17 DIGIDAY MEDIA | DIGIDAY 18 channel, which documents the NBA player’s which tend to focus on off-field subjects One hurdle for athlete-driven media on- and off-court life and has amassed such as mental health and social issues, companies is building brand affinity. more than 20 million views and 614,000- exceed this figure, says Sean Conboy, the While timely retirement announcements plus subscribers. This January, Thirty Five site’s executive editor. or game-related content — which Hoenig Media announced a deal with YouTube to Achieving this time on page requires acknowledges is “here today and gone create sports programming for the platform, significant effort. Conboy says his team tomorrow” — can rack up millions of views, 08 including a new series featuring actor approaches each written story like a it doesn’t keep fans returning to these sites. Michael Rapaport, and help other athletes, feature for a major magazine, though the But Hoenig insists The Players’ Tribune’s like Seattle Seahawks cornerback Richard editorial process for every post differs. pieces that address emotionally moving Sherman, start their own YouTube channels. To start, athletes — who aren’t paid for topics such as social issues or players’ Athletes are paid for their involvement, unsponsored contributions — can submit personal struggles draw people back. but Thirty Five Media wouldn’t share the written notes or drafts, or they can discuss “They continue to read those stories, amount. YouTube declined to comment for or dictate their thoughts via phone, for years later,” he says. “Those stories have a this story. example. Then, the team makes initial edits great shelf life.” Max Barnett, global head of digital before sending the copy back to them for Even a big name like Sherman’s isn’t at Nielsen Sports, says content like this feedback. The foremost priority is conveying necessarily enough to build a business appeals to fans because it’s authentic. “It athletes’ stories in the way they intended, on. Sherman’s YouTube channel, which gives fans access to behind-the-scenes so they approve the final product before launched before the announcement of the content, content that they’ve always wanted publication. Conboy adds that the high time YouTube-Thirty Five Media deal, has less to see,” he explains. “It’s a bit more real.” spent on page that results from this process than 37,000 subscribers. One of the first For Uber, authenticity factored into makes The Players’ Tribune attractive to videos posted to the channel is a 12-minute working with Uninterrupted on “Rolling with advertisers. livestream of him answering fans’ questions the Champion.” “I wanted to reach out to The company says ad deals are its from his hospital bed after his surgery in [Uninterrupted] so they could help us tell primary revenue driver, and it has worked November to repair a ruptured Achilles the stories of athletes in a way that would tendon, and it has just over 27,000 views. be human and interesting, authentic, while But advertisers seem unfazed. using the situation and context of Uber as Advertiser interest was one reason why the catalyst to have that conversation,” Thirty Five Media, which counts Alaska says Bozoma Saint John, Uber’s chief brand Airlines and American Family Insurance officer. among its brand partners, expanded beyond Building a business on authenticity Durant’s YouTube channel. “Seeing how has worked so well for The Players’ receptive brands were to us to spend behind Tribune, which features first-person written branded content, we saw that as another pieces, podcasts, video and photography possibility,” says Kleiman, “now that we from athletes, that it plans to expand could develop this network of athletes that internationally. (It wouldn’t disclose further all have their own channels.” details, though.) When Jeter — known for “Thirty Five Media is the future of how OPEN LOOK his reticence with the media during his MLB brands are going to work with athletes,” career — unveiled the site in October 2014, with more than 35 brands since launch. For says Natalie Bowman, managing director Athletes’ moves to control the narratives circulating writing in a post that he wanted it to be a example, it published an installment of its of marketing and advertising for Alaska about them in the traditional media have the attention of place where athletes could “connect directly “Letter to My Younger Self” series in January Airlines, which is teaming up with Durant’s with our fans, with no filter,” it was widely for Showtime, which wanted to promote its company on sponsored videos highlighting fans and advertisers. BY JUJU KIM mocked — contributing athletes received new drama series “The Chi” in a post from their support of youth and education titles like “senior editor,” for example — and the perspective of an athlete from Chicago. initiatives in the Bay Area. “Athlete-driven doubted. In the piece, retired NBA player Quentin creative and athlete-driven content is going Since then, The Players’ Tribune says Richardson reflects on growing up on to resonate with fans, and they are going to more than 1,800 athletes have contributed, Chicago’s South Side, with branding for the expect more of it.” including retired NBA star Kobe Bryant, show appearing throughout. Conboy says As athlete-driven content proliferates, It’s Jan. 14, the night before the final The exchange occurs during an Management chief marketing officer Denver Broncos linebacker Von Miller and around 200,000 readers spent about 7 1/2 there is the issue of saturation. “It’s going to regular-season game between the episode of “Rolling with the Champion,” a Jaymee Messler in 2014, and Durant’s Olympic gymnast Aly Raisman. Jeff Levick, minutes on average on the story page. be hard over the long term for one company Golden State Warriors and the Cleveland show produced by Uninterrupted, James’ Thirty Five Media, have launched in who previously served as Spotify’s chief “People are sharing this. You had to differentiate itself versus another,” says Cavaliers, and Kevin Durant and LeBron digital sports programming network, with recent years, all with a similar mission: revenue officer and had stints at AOL and multiple NBA players sharing the article,” Dan Shevchik, partner and svp at consulting James are sitting in the back of an Uber Uber as a sponsor. The series features Let athletes share their stories from their Google, joined The Players’ Tribune last Conboy says. “Advertisers increasingly want firm Sports Media Advisors. — a Cadillac Escalade, to be specific — in Champion chatting with NBA players own perspectives — something traditional September as its first CEO. The site had 3.4 to be associated with something that is Scott Langerman, CEO of Athlete Akron, Ohio. But instead of talking trash about topics including culture, music media hasn’t often allowed them to do — million unique visitors in January, according actually sticky and engaging and not just a Content & Entertainment Media, the NFL while riding through the falling snow, the and basketball as she drives them in her and facilitate connections with fans. to comScore. click trap.” Players Association’s athlete-driven content two rivals are discussing President Donald Uber. It’s unfiltered moments like these These companies also provide A point of pride for The Players’ Barnett agrees, adding that the high development and production company, Trump. that Uninterrupted strives to capture in its athletes, with their tens of millions of Tribune is how engaged fans are with its engagement rates for athletes’ posts on says die-hard fans can never get enough “Our team, as a country, is not ran by athlete-driven video series and podcasts. followers on social platforms, the chance content, which ranges from retirement social platforms also appeal to advertisers. information about their teams and players. a great coach,” Durant says. Uninterrupted, founded in 2015 by to grow their own brands and make money announcements to accounts of sexual NBA players, for example, have an average “They’re insatiable,” he says. “It’s not even a surprise when he James and his business partner Maverick from sharing their stories, rather than assault and stories about overcoming interaction rate — likes, shares and Hoenig and Conboy say they says something,” James adds. “It’s like, Carter, isn’t alone in these endeavors. telling them for free. illness. The site claims its average time on comments — of 0.38 percent on Facebook welcome others to produce this content. laughable.” Other athlete-driven digital media Durant and business partner Rich page is more than six minutes — a number and 2 percent on Instagram, according to “Competition is good,” Hoenig says. “It ESPN host Cari Champion shakes her companies, including The Players’ Tribune, Kleiman, with this opportunity in mind, “almost unheard of anywhere else,” says Nielsen Sports data, rates Barnett says makes you better.” Carter puts it more head from the driver’s seat. “But it’s also started by retired New York Yankees founded Thirty Five Media in April 2017 Gary Hoenig, content consultant for The brands would have to “spend considerably” simply: “I don’t think people ever get tired scary,” she says. shortstop Derek Jeter and Excel Sports with the debut of Durant’s YouTube Players’ Tribune. The most resonant stories, to achieve. of great stories.” D

19 DIGIDAY MEDIA | DIGIDAY 20 media partners. We’re now launching with digital partners who have enormous GOING consumer audience and no longer want to be a pure digital play, and understand the FOR GOLD value of having a physical manifestation of

Joanna Coles, chief content officer their brand. No digital company now wants to be purely digital. They want to use it as a The only permanent change at Hearst Magazines, talks about totem as being a member of a tribe. If you “

why print is having a moment, why carry Airbnb, if you have a copy of Harvard pure digital is a thing of the past Business Review or The Economist, it says that’ll come about is if we have and why Snapchat is a healthier something about the nature of who you are. social network than others. real diversity in the leadership “ BY LUCIA MOSES Hearst’s approach to magazines has changed. You’ve taken the approach of having, say, one beauty editor for multiple titles. How has that changed things, and of companies and government. what have the challenges been? I had argued for a long time that it made Hearst seems to be more bullish on — and absolutely no sense for the same company do better at — magazines than other big to be sending eight different beauty editors magazine companies. Why is that? from eight separate titles in eight separate We love print. I’m a huge believer in it. We’ve cabs to the opening of the same mascara lived with devices long enough to understand and writing eight stories. It’s not a great their enormous advantages and disadvantages. use of resources. We were competing against each other with our company’s Do you find it hard to be optimistic? Thanks so much for talking with me. If you’ve spent 90 minutes scrolling on your I don’t think it’s hard to be optimistic. I think I hope you’ll mention my book. It’s called money. It’s been super reinvigorating. A lot phone, you don’t necessarily feel more Trump was a wild-card candidate. I would "Love Rules: How to Find a Real Relationship of staffers have been excited to work on informed. You may feel listless and restless. be astonished if the Democrats didn’t take in a Digital World." It’s really about how, in different brands. As a result, we have better We’re moving into a post-digital euphoria. the House back. And I think millennials will this particular moment, the importance of differentiated content. Now, you can have We’ve seen e-books have plateaued, and put down their phones and get to the polls actual relationships, communicating face to one person writing three points of view. With real books have had an enormous rebirth. A because they weren’t energized for either face, is really important. We’re at the point the eight, you’d be getting the same story. magazine is restorative. You need to be able candidate [in 2016]. now where people who have a real-life social to unplug. You absorb information differently network will live longer than the people Hearst decided to separate print and when you read it on the page. How do you think your being on the board who don’t. We understand the nature of web, while some publishers still believe of Snap has helped Hearst? electronic media can be addictive. integration is the way to go. What’s the How many magazines is Hearst going to It’s certainly helped my understanding of case for that? launch this year? how a tech company works. It’s been integral Here’s how I think of it. I’m the coach for How does that square with your We’re probably going to launch two or four in to how Cosmo’s developed awareness [on the American Olympics team. My goal is to involvement with Snapchat? the second half of this year. Two, definitely. Discover]. We now have seven Hearst brands The biggest indicator of whether you’ll use bring back as many gold medals as I can. The on Snap, so we’re the publisher that’s the Snapchat is you have one true friend. There’s team for running the marathon is focused on Magazines have had more of an advertising most represented. no like button — the goal is to keep you different things than the team running the challenge than a reader challenge. Any sign connected with your actual friends. So not 100-meter sprint. You would never expect that’s changing? all social networks are created equal. D one person to be able to do every sport. It’s You have long-standing experience in For certain advertisers, the metrics that some news and magazines. What impact do you of the digital companies give allow them to be just not practical to expect people to be able to do everything all the time. hope to have there with that experience? really specifically targeting when they want One of the reasons I was so engaged with to move product urgently. But if you want to the Discover platform was Evan Spiegel’s It seems like we’re in the backlash phase establish trust with your customer, a magazine really prescient understanding that the of #MeToo. Do you worry there won’t be is unbeatable. We are hearing from advertisers web was full of crap, and human editors lasting change coming out of it? who pulled out from print who are coming were increasingly important in a world that I think the only permanent change that’ll back. We offer incredible value for money; the relied on algorithms. He completely foresaw come about is if we have real diversity in the ad is seamless in the consumer experience. You fake news and wanted to build a platform leadership of companies and government. can’t unsee an ad in a magazine. And it’s high- with reputable media brands. He reads an I’m working as hard as I can to ensure that quality content. It’s real; it’s not bullshit. enormous amount. comes to pass for the next generation. There’s no tipping point till you reach 30 How’s the approach to launching a magazine How aligned are Discover publishers and different today than before? percent on boards and senior management. One of my goals is to look for the best Snap? All our successful partnerships — Oprah, The I think all our goals are aligned, especially possible female and diverse talent and give Pioneer Woman — we launched with existing in light of what’s happened to Facebook. We it the most support I can. want to make sure we are an easily available route to high-quality journalism.

21 DIGIDAY MEDIA | DIGIDAY 22 2018 local talent and navigating the red tape of down, providing an opening for a new, advertisers is dissipating. Traffic to Quartz such a bureaucratic nation. independent voice. ads in India has more than doubled from INROADS “Launching with the largest partner Coverage in India was never going 2015 to 2017, in line with audience growth, in a region can be a bit lopsided; it doesn’t to be the problem — rather, it was where according to the company. Over the years, INTO INDIA necessarily return equal value,” says Lauf. to focus its limited resources. In addition it’s worked with brands like GE, IBM India According to Patil, the publisher took an to Modi, Quartz India has gone deep on and other local tech companies and global Quartz pushes into the tricky Indian media market. “entrepreneurial” approach to talking to topics like immigration policy changes and automakers. Quartz has a sales rep in India, BY LUCINDA SOUTHERN brands. “This is a high-contact sport,” he government efforts to oust cryptocurrency but its ad campaigns tend to be sold in New says. “We were meeting people all the time. from India. Particularly popular are its York, London and Hong Kong to advertisers You can’t do that from afar.” explainers of dense topics like "Everything that want to reach the Indian market. Quartz, now with 10 editorial staff you need to know about the $1.8 billion “We didn’t anchor the business located in Delhi, Mumbai, Chennai and PNB-Nirav Modi fraud." proposition on drawing revenue and Bangalore, is known for its simple interface, As a result, Quartz reached more advertising from the market in India, but a refreshing contrast to busy mobile than 18 million people in India last year, it’s becoming increasingly ripe for content websites and complicated messaging. up 74 percent from the previous year, marketing and high-impact, premium Simple things like clear citation and linking and subscribers to the Asia edition of its display,” Lauf says. “Advertisers are back to original sources has set it apart. main newsletter, Quartz Daily Brief, grew leaning in more; they know the industry Quartz brought a couple of other 53 percent in two years, according to the and economy’s changed a lot. Content advantages. It arrived in India shortly after publisher. marketing innovations are more meaningful T Prime Minister Narendra Modi was elected “With two dozen languages, it gives the and working elsewhere.” in a campaign clouded by the spread of sense of it being fragmented, but effectively A breakthrough point came for Lauf Q misinformation on Facebook and WhatsApp. it means that English is the dominant during a visit last year flying from New Delhi An endorsement of Modi attributed to language, thanks to the colonial education to Bangalore, while sitting next to a senior WikiLeaks founder Julian Assange went system we’ve inherited,” says Devjyot executive from a financial institution. “When Z viral during the campaign; WikiLeaks soon Ghoshal, editor of Quartz India. Half of I told her I was with Quartz, her response denied the endorsement. The following Quartz’s readership comes from outside the was, ‘Oh, I love Quartz. It’s so unique,’” he year, a photo showing a young Modi U.S., also giving it an edge over local media. says. “That was an exciting ‘aha’ moment. U sweeping floors — an image to flaunt the When Tanzanian students were attacked Before, less than 1 percent might have politician's humble origins — was revealed in India in 2016, for instance, the publisher recognized the brand.” DD to be fake. Political parties influenced the collaborated with its newsroom in Tanzania A R local press, which left readers feeling let to cover the news. Now, skepticism from

Back in 2014, convincing a finance the changing digital marketplace. A population of 1.3 billion, 400 million brand manager in India who reaches 10 “Conversations with advertisers in internet users and a growing number million people through programmatic the first few years showed them to be a of English speakers using smartphones display ads to take a punt on Quartz’s hell of a lot more skeptical,” admits Jay leaves media companies salivating. But handcrafted native formats was a tough Lauf, publisher of Quartz. According to seduction by big numbers is often where sell. Samir Patil, founder of Scroll, Lauf’s most multinational media goes wrong. That was the type of hand-to-hand effective punchline was that you’re more Keeping targets realistic — only about combat Quartz and its local partner, Scroll, likely to get struck by lightning than click 50 million internet users are valuable had to tackle when the business publisher on a display ad. “People listened politely, to advertisers — is why U.S. media set up in India nearly four years ago, but that always had an impact,” Patil says. companies team up with incumbents running regular breakfast events for 20 From a distance, the Indian market is who can help with forming long-term advertisers at a time to convince them of hard to resist for traffic-hungry publishers. relationships with advertisers, sourcing

23 DIGIDAY MEDIA | DIGIDAY 24 Yesterday Password GDPR FAKEOUT Confusion gives rise to misunderstandings when it comes to Europe’s big new data law. BY JESSICA DAVIES

The General Data Protection Regulation is almost Reality: Yes, that’s advisable if you’re a large upon us, and publishers, agencies, brands and business with large data sets. But it is not necessary ad tech vendors have been working to make sure for every single company to have one, unless it’s a they’re ready when enforcement begins. But public authority. Smaller companies can also share the hype around the EU privacy law, uncertainty a DPO or outsource compliance work to an outside about how it will be enforced and scaremongering expert. from companies offering off-the-shelf solutions has sowed confusion. Here’s a reality check of Misconception: My business doesn’t need to get some of the more common misperceptions about public consent, as it’s protected by the “legitimate Today the GDPR. interest” clause.

Facial Recognition Misconconception: GDPR is a European challenge. Reality: Using this claim to justify ignoring the GDPR may seem easier and cheaper in the short term, Reality: American businesses will get ensnared as it avoids all those extra legal fees. But it won’t in GDPR compliance issues if they offer goods or protect ad tech companies. Agencies are already services to consumers in the EU or monitor the fed up with vendors that make this claim and will behavior of people located in Europe, regardless of drop them fast if it’s not addressed. “We only need where their offices or ad servers are based. a few bad actors to push the boundaries too far for everyone to be negatively affected,” says a media Misconception: Businesses that aren’t GDPR-ready agency exec. “It would be preferable for ad tech firms by May 25 will face a €20 million ($24 million) fine. to put people’s ad experiences and privacy first as opposed to finding crafty ways to find loopholes in Master Reality: The law will kick in May 25, and there will be the regulation.” no grace period, so regulators can issue fines from this date. But businesses will be expected to continue Misconception: You can avoid fines by flipping identifying and addressing emerging privacy and liability to the next party. Tomorrow. security risks long after this date. Regulators will take into account if companies can show they’ve been Reality: Passing liability to the next party in the Digital Workforce Transformation putting the building blocks in place. ad supply chain is one of the more irresponsible approaches to the GDPR, one ad tech vendors and gets your team ready for what's next. Misconception: Every business needs a data agencies have tried. It’s a risky shortcut and one protection officer to oversee compliance. regulators will not necessarily be lenient about. D pwc.to/upskill

© 2018 PwC. All rights reserved.

25 DIGIDAY MEDIA | DIGIDAY 26 Is the decline of public trust on social platforms and institutions an opportunity or a risk for NBCU? The last two years, there has been a wave of marketer money coming back to television

because the overall revenue to platforms wasn’t proving out on sales. When you

overallocate on the bottom of the funnel, “You have to go beyond the you don’t have enough of the top stuff “ working, you’re out of luck. Money has algorithm. A machine can’t been coming back for that. But what I think is really disappointing is — and it affects do everything. NBCUniversal — is that we’ve lost the public trust. This needs to be a year that the trust needs to be established. And most of the onus is on the tech platforms.

What can NBCU do to improve public trust? Communicate consistently that it’s a nonissue for a company like NBCUniversal. There should be a long line of brands that want to support that content. I’ll give you THE a good stat. This blows everyone away. Over the weekend, NBCUniversal reached ENERGIZER 140 million Americans with content called the Olympics. We’re in a unique position as Linda Yaccarino, chairman of opposed to a lot of other companies. Who advertising and client partnerships woulda thunk a show 43 years old would be for NBCUniversal, says media must fueling social conversation? That’s “SNL.” get moving on solving problems. BY LUCIA MOSES You got attention for calling out Facebook in particular last year. On Facebook, I said, I‘m not sure if a like can walk into your store and buy a product. Last year, several of [the platforms] had “Oops, we did it again” moments. I’m unsure why Last year, you talked a lot about the Google, Facebook, Amazon. It’s why we’ve the gathering was overwhelmingly positive. the success metric is very, very different for need to address brand safety, media invested in digital capabilities, why we have The positive outcome was, it gave us the linear side of the business compared measurement and transparency issues. a relationship with Comcast for set-top box permission to change. It has surfaced the to the social side of the business. The Are your priorities the same for 2018? data, why we have an in-house agency. need for the big tech platforms to come into advertising standards are extraordinarily I certainly think some of those or all of those One you’ll hear much more about is the their own. higher for us than the tech platforms. That issues are the same. But broadly what I’m escalation of consumer experience. [After said, I’m optimistic for the future. They’re vocal about is the illogical inertia that is this interview, NBCUniversal announced Do you consider them media companies? taking the challenges seriously. I just hope plaguing the advertising industry. There’s it would decrease the number of ads If you’re in the business of securing billions they deliver change soon. D safety and transparency issues facing one in commercial pods by 20 percent and of dollars of advertising budgets from big side of the business. There are measurement decrease ad time by 10 percent across its brand marketers, it would seem to be that’s issues on the other side. All of those need networks.] You’ll be able to marry data what they want to be. to be addressed. The industry hasn’t been capabilities with the scale of NBCUniversal doing enough. We’re just not willing to and data once only thought of as the tech How would you grade the efforts by wait for other companies that the industry platforms’. Facebook, YouTube and others to address has traditionally relied on to measure fake news and other problems this past viewing reliably or that we offer brand-safe You hosted an industry gathering last year year? environments. that got a lot of attention for bringing It demonstrates something I’ve said a lot competitors together to discuss safety and of last year — you have to go beyond the What specifically is on your road map? transparency. These kinds of gatherings algorithm. A machine can’t do everything. Since Comcast bought NBCUniversal, we often end up going nowhere, though. I’m happy to see it’s a conversation, and it thought of the traditional competitors What do you think was the impact? seems they’re taking it seriously. That’s a to be the Viacoms, Foxes of the world. I was frustrated by having identical good thing for us all. That has changed. The competitive set is conversations with the brands, advertising agencies and our peers. Just merely calling

27 DIGIDAY MEDIA | DIGIDAY 28 AGENT FOR CHANGE The FT’s commercial chief Jon Slade is optimistic about publishing’s future. BY JESSICA DAVIES

Six months ago, a charismatic 16-year- Arriving at that point has taken willing to call it out.” competitor, thinks of him as a very smart was an agent for change,” Good says. is an avid marathon runner, has a passion old strode into the office of Jon Slade, unwavering leadership and commercial Since the FT went public with its person, grounded and intellectual,” says Slade pioneered new measurement for military history and has what close the Financial Times’ chief commercial strategic vision, attributes that Slade’s crackdown on domain-spoofed inventory, Dominic Good, former global sales director models like cost per hour at the FT, which colleagues describe as a very dry sense of officer, and told him the FT had it colleagues and peers say he has in other publishers like News UK, which for the FT. The Economist later picked up. Although humor. That humor comes out while talking all wrong. The boy had been at the abundance. As a member of the FT board owns The Times of London and The Sun Slade has worked at the FT since 2002, the model didn’t manage to break into about his children. Dominating the wall publisher’s Southwark office in London on and chief commercial officer, the 44-year- newspapers, have followed suit. Slade is aside from a two-year spell at News UK mainstream use, its introduction did help next to his desk that overlooks the Thames work experience and wanted to offer his old Slade is responsible for the FT’s hopeful this momentum will continue. from 2005 to 2007. In his early FT years, he reset the debate around what clients should River are brightly colored pictures drawn by view on how the FT could better engage advertising and subscription business, “The genie isn’t going back in the bottle. looked after the FT’s technology clients, pay for and the need to look beyond click- his three young children. Balancing family with young audiences. His pitch: The FT as well as the circulation of its print The industry is rightly furious,” he says. which armed him with deep understanding through rates as a meaningful metric. time while keeping up with the demands should make its content free to access for newspaper, overseeing 713 people. “As both a buyer and seller [of media], of technology and digital. When he returned of the job in a continuously shifting media all students, find a sponsor to underpin He has ambitious plans for continuing I’m furious that it [ad fraud] is as prolific to the FT in 2007, it was as global head of Transforming into a marketing landscape has been one of his biggest that and send them the most relevant the FT’s ongoing transformation from a as it is.” Slade’s tough stance on brand strategic sales, where he was tasked with services business life challenges, he stresses. To ensure he news based on what’s in the school seller of ad space to a marketing services safety and his protectiveness of the FT building a strategic sales team and the FT’s Slade spends a third of his time on product regularly sees his children during the week, curriculum. “I sat up and listened,” says a business entwined with a subscription brand hasn’t gone unnoticed. “Even five first creative solutions team. Colleagues development and strategic investments. he leaves work promptly at 5:10 p.m. to smiling Slade. business. It’s a formula Slade believes or so years ago, we had to convince them recall that he naturally gravitated toward Last year, that involved the acquisition of make it home for story time, checking back Appreciation of younger generations’ will guarantee a sustainable business [the FT] of the controls and safety we had digital and became an expert in ad tech, video agency Alpha Grid to build out FT with work later in the evening. He excitedly respect for quality media is one of the model for journalism. “Subscriptions and built into AdX before they considered meticulously choosing the right people to Squared, the publication’s content studio. lists the current favorites: British author reasons Slade feels more buoyant about advertising are two sides of the same coin. doing anything programmatic,” says David build the FT’s ad operations team, now run More than half the briefs that come in now Enid Blyton’s “The Magic Faraway Tree” and the future of publisher business models It gives us two engines to fly the airplane McMurtrie, Google’s head of publishers for by Anthony Hitchings, while methodically are for branded content, according to Slade. “The Wishing-Chair,” admitting that at times than he used to. “There’s a confidence instead of one,” Slade adds. the U.K. “Everyone, from Jon down, is a choosing the right technology partners and The FT took a majority stake in London- he throws himself so completely into the that comes with that age group that forces guardian of the FT brand and doesn’t want ensuring the sales team was equipped with based research firm Longitude earlier stories that his children have to beg for a you to get rid of the clutter that can crowd Protector of the brand that to be diluted.” The FT has remained the right products to sell based on the FT’s this year. The aim is to offer advertisers change, to which he submits reluctantly. your day-to-day vision and gives a different Slade is well-known for pushing back strict on who it partners with, choosing [audience] data. Longitude’s research and thought “Irrespective of how stressful, crazy perspective,” he says. “They value quality against recurring industry issues like ad only Google and TrustX as authorized “Jon was the architect and visionary leadership alongside its media distribution or complicated the day has been, there is news more than they’re given credit for.” fraud and brand safety. He oversaw the resellers of its inventory. “That [strategy] for what that team should be,” Good adds. of advertising and branded content, plus its an enforced stop that comes at 6:30 p.m. Within two weeks of this impromptu launch of the FT Commercial Charter in comes directly from Jon,” McMurtrie adds. "I didn’t realize at the time just how good creative and video production that its Alpha that says whatever you were thinking up to meeting, the FT had over half the schools 2017: a pledge to advertisers that the FT Slade is also known across the the setup was, but it is industry-leading. Grid team provides. this point, park it,” he adds. “You just can’t in the U.K. involved, and it secured Lloyds would uphold clear standards on areas industry for not mincing his words. “Jon The capabilities the FT has in ad tech and its Slade describes this latest investment have a conversation with 4-year olds while Bank as sponsor, with the result that some like viewability, nonhuman traffic, brand is a tough negotiator. He isn’t afraid to very strong data offering — that’s all down as one of the most important steps in thinking about media strategy.” 20,000 schoolchildren now regularly visit safety, third-party verification, reporting step back from a deal if he doesn’t think to Jon.” Slade was promoted to CCO in 2006, the FT’s transformation from a “seller of The same gusto and focus Slade gives FT.com. and pricing. it works for him,” says McMurtrie. “But he a role newly created after the departure of ad space,” as it was when he first started his family is what’s earned him such respect That free-access project is part The FT made good on that pledge is very fair in his approach and will always former deputy CEO Ben Hughes. “When Ben there in 2002, to becoming a fully rounded among peers. “Jon is one of the great of the FT’s ongoing mission to appeal last September, cracking down on domain listen to alternative viewpoints.” left, our CEO John [Ridding] said that he had marketing services business. “When I came leaders in our industry,” says Jason Kint, to audiences at both ends of the age spoofing of its inventory after an internal left large shoes to fill, but that luckily Jon back to the FT [in 2007], I knew that unless CEO of publisher trade body Digital Next spectrum, to ensure it can continue investigation revealed it to be prolific Architect and visionary had very big feet,” Good recalls. we did something, we’d be commoditized Content. “He is pivotal to the success of the building its subscriber base. At 910,000 across 15 ad exchanges. Colleagues and peers describe Slade as an Slade’s strategic direction and deep into nothing. This [Longitude acquisition] is FT, a media brand which has been leading paying digital and print subscribers, the The publisher estimated the value of “incredibly focused” individual known for knowledge of technology helped drive perhaps the epitome of that thinking,” says the industry in raising its value with both FT isn’t doing too badly. The publisher’s the fraudulent inventory to be £1 million his high integrity and respected as much the FT’s product development and data Slade. “We want to help clients understand audience and advertising partners.” D advertising business is also in good shape, ($1.4 million). As a result, 24 ad exchanges for his knowledge of and contribution strategy in a way that strengthened the FT’s how to connect their brand to audiences via accounting for just under half of the cleaned up what ads they were allowing to product development as for his work advertising proposition and gave it an edge, thought leadership, then create the content FT’s revenue — a far cry from 2002 when through. “It makes me mad,” says Slade on the commercial and marketing sides according to Good. “He has been one of the and distribute it to one of the world’s most around 80 percent of revenue came from heatedly, “that the industry has put up of the business. “Everyone who knows experts guiding the FT along a technology powerful and wealthiest audiences.” advertising, according to the publisher. with it [fraud] for so long and not been Jon, whether it’s a client, colleague or route that is now paying dividends. He Aside from his professional life, Slade

29 DIGIDAY MEDIA | DIGIDAY 30

A lot of digital publishers see Facebook

THINKING and Google as existential threats to their businesses. Do you? We had a conversation this morning about OUTSIDE our presence on Instagram: How much of it is marketing, and how much of it is a We want to be partners, but “ THE BOX real business where you can actually make “ money? In many respects, these alternative John Martin, CEO of Turner, platforms, it’s about half and half at this we have to get paid at the end talks about turning its legacy TV point. When you’re frenemies with the institutions into multiplatform likes of Google, Facebook and Snapchat, media businesses, the big we want to be partners, but we have to get of the day. consolidations happening in media, paid at the end of the day. We’re starting to make breakthroughs. We are starting to the growing rivalry with tech have conversations with these alternative giants and the rise of streaming TV platforms about potentially getting paid for services. BY SAHIL PATEL our content.

Would you ever walk away from a The mega-media consolidation that’s platform if it doesn’t pay? happening — with AT&T and Time Warner, Are streaming TV bundles a legitimate Leverage is an ephemeral thing. You need with Disney and Fox — it’s at least in part opportunity or a quick, short-term Band- What’s the biggest threat to Turner’s strong brands because then you can have a a response to the growing power of the Aid to combat eroding cable subscribers? business today? seat at the table and talk to these platforms tech giants. Why is consolidation the Last time I checked, the cumulative number Our biggest challenge is to remain relevant about a partnership where we both get paid. answer? of subscribers for these virtual MVPDs in the when there’s an increasing number of choices But if you have marginal brands, you’re dead It’s about relevance. In our case, getting United States was almost 4.5 million. These for consumers to spend their time and energy in the water. together with AT&T is about technology, are becoming legitimate numbers. — and their money. Thankfully, we still have data and consumer relationships. There’s big brands and we do have scale, but we have So Google and Facebook aren’t existential going to be more growth in mobile content What’s the challenge there? Most of these to think about our brands in a more holistic threats to Turner’s future? consumption. To be able to tap into the tens services are being more selective about way and not just as basic cable, ad-supported We don’t look at them as threats, but we of millions of customer relationships that what channels they include in their base television networks. need to pay attention to each of those AT&T has on mobile would be a great head tiers. companies — and I’d throw Apple and start. What that’s demonstrating is that there are CNN’s been active in expanding its business Amazon in there, too. All of a sudden, our too many bad networks in this country. to new platforms. How has that worked out? biggest competitors are no longer Disney, Disney argues that it needs to bulk up as it There are networks that are carried as part By leaning into nontraditional platforms, we Fox, NBC, CBS and other networks; it’s these builds more direct-to-consumer products. of the uber-bundle that have absolutely no have a brand that resonates with people of all “digital companies” that are coming in and How important is that to you? consumer value. And they were originally ages. The average age of a U.S. TV watcher of taking two-thirds of all digital ad revenues There’s a more concerted strategy here launched in an era when there was an idea CNN is getting younger, but it’s still in the 50s, and 85 percent of the marginal growth in about developing direct-to-consumer that you could have unlimited amounts of which by the way is 10 to 15 years younger than digital ad revenues. We’re playing at a scale businesses, but you have to balance it. We affiliate fees and the pie would continue to Fox News. Then, you have CNN.com, which where we can get their attention and get get paid almost $12 billion a year between grow, and you could sell advertising on the averages users in the early 40s. The CNN app them to come and want to partner with us. our advertisers and our affiliates, so we back of that as well. Those days are gone. D on the iPhone, it’s early to mid-30s; some of the want to make sure we have really powerful partnerships CNN has done with Facebook and Aren’t they going to compete for the offerings that continue to bring in those Snapchat, it’s early to mid-20s. future of TV? dollars. These are no longer just television channels, Too many people give them credit that they But we need to develop new businesses, but branded environments that can exist are going to be able to get into long-form and increasingly, those businesses are anywhere. Even within CNN, we still talk about, and short-form and professionally produced not going to be new cable networks, but “This is CNN, and this is CNN Digital.” The programming, and they are going to do it businesses that can stand on their own and conversations I have with [CNN President] Jeff well. It’s hard to do. consumers will be willing to pay for. We need [Zucker] is that I can’t wait for the day that we to grow our non-advertising, nontraditional drop that distinction — because there isn’t one. I think Facebook is learning that right subscriber revenues. now. What’s stopping you? And Apple is learning it, too. They’ve now Are customers going to want to pay for 20 It’s organizational. When I first came here, hired some world-class people to come in different subscription services, or are we CNN’s live TV organization and the editorial and get their TV business off the ground, headed for a rebundling of sorts? and video-on-demand organization did not sit but in many respects, people still think of I think the idea of rebundling is a real idea. in the same building. Under Jeff’s leadership, those companies as utilities. And last time One of the reasons I like being in the same those two not only sit in the same building, I checked, people don’t have an emotional company as HBO and Warner Bros. is we but they now sit on the same floor. Thinking of connection to their search history or collectively have unbelievable content ourselves as not a television network company shopping cart. What we do in terms of offerings. It’s not a crazy idea to, say, soft- but a content company, trying to reach people storytelling is very difficult to duplicate. bundle HBO Now and Boomerang. All of a who are passionate about our brands, is a sudden, HBO Now, which already has more cultural shift that takes time. than 5 million subscribers, can also offer this unbelievable kids offering. 31 DIGIDAY MEDIA | DIGIDAY 32 routinely rises to the top of Google News Now, it falls to his daughter, Jessica GETTING WINNING three or four times per week, and PowerPost Shanken, who runs digital operations as MASTER CONTROL THE INBOX newsletters routinely rank among the Post’s vp of business development, to get the most shared stories every day, she says. brands in front of a younger audience while They are so well-read that the site’s editors continuing to serve their long-standing MECHANICS regularly put them on the Post’s homepage. subscribers. “We don’t want to abandon The Post wouldn’t give hard data, the people who love us,” Jessica Shanken but says these newsletters also help drive says. “Our magazines lend themselves really Modern media is not just having the right strategy. It's about and retain subscriptions. Van Dongen says well to things like Facebook and Instagram. execution. We profile six people who are doing the hard work of she regularly gets emails from readers But we want to use our digital products so modernizing media, whether it's in forward-thinking data policies, saying they renew their subscriptions people can find our brands and begin to killer newsletters, commerce strategies or staying focused on a to the Post solely for access to content form a relationship.” passionate niche. PowerPost points them to. Others testify Some of that work involves creating that PowerPost was the hook that got them more content. But one of her biggest to subscribe to the Post. responsibilities rests with finding new ways The next step is to see if PowerPost’s to leverage the hundreds of thousands success can be replicated with other of wine, whiskey and cigar reviews the professional classes. The Finance 202 and company has produced over the years. A redesign of Wine Spectator’s that doesn’t discredit the newspaper’s The Technology 202, aimed at Wall Street website, slated to debut later this year, will CONTENT THAT journalistic integrity. So far, Wirecutter and Silicon Valley, respectively, are meant foreground those reviews more than the has been working with editors on Times to build the Post’s profile among insiders in CONVERTS current version, which is stocked with news desks including Smarter Living and Well those worlds. coverage that’s more useful to the wine and tapping Times reporters as sources: Figuring out what those readers industry than wine drinkers. Many publishers It got Eric Asimov, the Times’ wine critic, want will take experimenting. “The key to Gayle Noah is a new type of marketer Rachel Van Dongen knows what makes are looking to grow digital subscriptions, to contribute to a guide on the best wine sustaining these products is making them — focused just as much on making sure Beltway people tick. The Washington - MW and M. Shanken Communications appears glasses last year. specialized,” Van Dongen says. L'Oréal's ad dollars are spent the right native started covering politics, taxes well-positioned to make them work. Wirecutter has its sights on producing way as on what’s going to be the next big and Congress as a reporter in 1996. That “The economics of subscriptions in more video, which has been a hard nut to media plan. experience was the basis of what became a multiplatform world are actually more crack for commerce publishers. Wirecutter Noah is L'Oréal's media director The Washington Post’s first PowerPost favorable than just print,” says Don Nicholas, has been on YouTube since 2015, and VICTORY in the U.K. and Ireland, charged with newsletter, which she’s edited for three CEO of magazine consultancy Mequoda only five videos it’s published there have policing transparency to ensure media years. The newsletter routinely runs more CIGAR Systems. “And the single biggest thing you gathered five-figure view counts — but accountability. Noah and her team act than 3,000 words apiece, offering a self- can do as a specialty publisher to put luck in Cheng says she sees promise in GIFs and more like internal consultants to L'Oréal’s contained product that makes the Post a your favor is to launch a premium library.” videos that show how products work and marketers, advising them on how best to habit — a key consideration for modern This past year, M. Shanken are tested, rather than visual versions of the spend budgets and what technologies to publishers. Instead of just content delivery Communications’ 15-person mobile exhaustive reviews that Wirecutter’s known use. vehicles, publishers now treat newsletters as development team has been launching for. “It’s something we’re behind on,” Cheng In her first five years at L'Oréal, Noah standalone editorial products that deserve mobile apps to grow brand awareness. says. “I hope we can make video work for us engineered most of the changes to the experienced, thoughtful stewardship. X Values, the publisher’s first millennial- this year.” company’s contracts, agency relationships Publishers and advertisers are focusing targeted digital product, gives users small, Early on, Wirecutter guides were driven and media reviews by herself. It was only in more on email because it’s a channel with seasonal lists of affordable wines that are by the editorial team’s search for solutions 2016 that two more media experts joined few middlemen where it’s easy to target widely available across the country. The to their own tech problems. Gut instinct her team, as the advertiser committed to specific messages to specific audiences. Restaurant Awards app taps into a 4,000- still plays a role, but so do things like search Wirecutter was a three-person tech- producing smaller, cheaper campaigns more “They’re not meant to be waypoints,” entry database of restaurants around the data, as well as a database filled with buying guide when Jacqui Cheng joined in often. Van Dongen says of the newsletters. “These world that have notable wine lists. seasonal trends. 2013. Now, following its purchase by The “We still need our marketers to focus are really reinvented, 3.0 newsletters for the The team has also toyed with less Some of those trends are New York Times in 2016 for $30 million, on audience, message and placement,” digital age.” serious ways to build awareness: It launched straightforward. Interest in iPhone cases Wirecutter has a 70-person editorial team Noah says. But the emphasis is on “having Since August, PowerPost, which now a package of whiskey-themed iMessage and accessories spikes every fall, for and staff of 100. Cheng belongs to a new the right creative for the right platform by has a staff of 14 people, has spawned three stickers, which costs 99 cents, in May 2017. example, when Apple drops the latest class of editorial employee that’s helping being sensitive to how people use their more newsletters and plans to add another The company also has to figure out iteration of its flagship product. Some publishers diversify their revenue streams different devices.” three, applying the format to other power new content strategies for video. Right now, are less obvious. Interest in emergency as they realize it’s hard to survive on ad Noah worked at Mindshare from centers, including technology and finance. most of the company’s video lives on its preparedness kits, for one, spikes in late revenue alone. 1999 to 2004. Noah has a “great ability to The newsletters have resonated with own sites and consists mostly of in-depth summer. be across the full scope of L’Oréal’s media Wirecutter’s defining product is its their core audience — all four rank among To survive in an age of distributed media, interviews with winemakers and distillers. “Sometimes we see things come up spend and works diligently to ensure the more than 700 exhaustively researched the Post’s top 15 most opened newsletters publishers either need to achieve scale But Jessica Shanken is trying to find in [search] lists that we just don’t think media activity is right for each and every product guides. The most recent guide out of more than 100 total — and advertisers or own a niche. For an example of the franchises that will travel easily across social is a good product category,” says Cheng, to the best laptop backpack runs over brand,” says Ailsa Buckley, gm at the have responded as well. While newsletters latter, look no further than M. Shanken platforms, such as videos that show how to recalling a craze in 2017 for air fryers. 8,500 words, for example. Along with advertiser’s agency Wavemaker. were once thrown in as sweeteners in Communications. Founder Marvin cut a cigar or explain the difference between “Occasionally, we’ll do the [guide] and say, keeping existing guides updated, Cheng It hasn’t always been smooth sailing large digital advertising buys, each of Shanken built a profitable business around whisky and whiskey. (It mostly has to do ‘This is not a good product.’” is responsible for expanding Wirecutter for Noah as a media director at L’Oréal. The the PowerPost newsletters is sold as a publications that reflect his own passions with where the hooch is distilled, in case you For many commerce publishers, there’s into newer product categories like small advertiser buys media on an industrial scale, standalone purchase. That’s in part because — Wine Spectator, Cigar Aficionado, Whisky were wondering.) incentive to cover product categories that business software — “Best Online Fax after all. But she doesn’t regret the move. advertisers are more interested in reaching a Advocate — and are authorities in their The trick is to balance growing yield high sales commissions. But Cheng Services,” for example — and new editorial “I decided to go brand-side, as I wanted to specific audience. respective categories. Wine Spectator, the awareness with staying true to the understands that building a reputation as a formats, including product tutorials and be able to make a difference from within a Van Dongen says she views the largest paid wine magazine in the world, publications’ existing fans. “You don’t want true resource requires ignoring immediate video, for Wirecutter as well as the Times. business,” she says, “and as a specialist, I PowerPost open rates as an important signal boasts a circulation of 3 million; Cigar to be everything to everyone,” says Shanken, incentives sometimes, which is why The goal is to build Wirecutter into a more feel I can add tangible value to [L’Oréal’s] of their success. But she also looks at how Aficionado, which recently turned 25, has “because then you end up being nothing.” Wirecutter recently published a guide on the - Seb Joseph mass consumer brand as e-commerce brands.” each one performs outside the inbox. Each nabbed interviews with everyone from Fidel - MW best toilet paper. For the record: Wirecutter continues its push into the mainstream. PowerPost email is posted on the Post’s Castro to Michael Jordan. WineRatings+, a recommends Cottonelle Ultra ComfortCare. Getting there involves tapping website as a standalone story, where it can mobile app that costs $2.99 per month, has - Max Willens the resources of the Times in a way be just as popular, if not more. The Daily 202 been downloaded over 1.5 million times.

33 DIGIDAY MECHANICS | DIGIDAY 34 says. “It’s forced people across the magazine lives,” she says. MEMBERS to really think about that core audience.” With the General Data Protection In 2014, Slate, like most other Regulation looming and the amount of ONLY publishers, was posting much of its data that companies handle exploding, content to social media and optimizing it data protection officers like Barakzai for platforms to drive as much traffic as are becoming a new key role at media possible. That was the way to adapt and companies. survive those days. But Slate recognized that Barakzai heads a team of seven in the in making content that appeals to a wide U.K. and oversees privacy teams in Germany, audience, you can lose sight of your identity. Italy and Ireland in looking after the data of Now, the membership program is Sky’s 23 million European subscribers. She helping inform Slate’s content for a world in uses her in-depth understanding of the law which platforms such as Facebook are less and knowledge of the company to provide of a priority. That’s meant basic changes legal advice and prepare the company for like tracking engagement metrics over the coming GDPR. As in her former positions pageviews and visits, but also tweaking at companies including BT, Reuters and the types of products and content Slate British Gas, having the support from the produces. company to make privacy part of the When it’s developing new products business, not an add-on, has been crucial. such as email newsletters and podcasts, Customer information can easily it’s now doing so with the ultimate goal become out of date or inaccurate. Sky of converting audience into Slate Plus customers often forget to check the privacy members. settings on their phones when installing “Once [the membership program] apps or forget to let their cable providers works, you have a core audience that really know when they move. In 1998, Slate erected a paywall and cares about what you do, and you have Data protection wasn’t the initial goal. began charging readers $20 a month something at the end of the funnel,” Roth Barakzai’s 30-year career has been a varied for a subscription (complete with a says. one. After graduating with a degree in Arabic complimentary umbrella). But after Ultimately, even if readers and listeners and economics and with a keen interest peaking at 20,000 subscribers, the paid don’t end up handing over their credit in business, she moved to BT to qualify model was abandoned in favor of chasing card information, they’re probably more as an accountant, along the way realizing a wider audience and offering the site’s engaged with the Slate brand than they were that by doing a law degree concurrently content for free. previously. - Jack Marshall she’d be exempt from certain exams in the Fast forward 20 years, and the accountancy stream. After a stint in the news online magazine is approaching its latest industry at Thomson Reuters, Barakzai paid-access program, Slate Plus, a little deepened her legal qualifications by differently. Instead of a hard paywall, Plus KEEPING IT negotiating oil and gas contracts for British offers readers access to additional content Gas, then setting up the compliance team and perks for a fee of $49 a year, and it has PERSONAL at what is now Virgin Media, before heading attracted over 40,000 paying members. back to the media industry as group head of Heading the initiative is Gabriel Roth, data protection at Sky in 2013. whom Slate hired in 2015 and tasked with Not every company needs a DPO to creating content people would pay for comply with the GDPR. Companies need beyond the site’s core output. Popular to hire a DPO if their core activities require features include extended, ad-free regular and systematic monitoring of data versions of Slate podcasts, early access subjects, like online behavior tracking, to Slate features, a lighter ad experience on a large scale. And with a DPO costing a and extra content from its advice column, six-figure salary, it’s something companies “Dear Prudence.” would like to avoid having if they can. As publishers begin to recognize “It’s fairly clear that most broadcasters the risks of betting their futures on the and newspapers would probably qualify fickle Facebook algorithm or the latest due to scale, but it’s much less clear-cut messaging or news app, a growing number for magazine publishers,” says Paul Lomax, are turning instead to subscriptions, an independent publishing consultant and membership programs, newsletters, former chief technology officer at Dennis podcasts and other means to form more Publishing. direct and unfiltered connections with People in Barakzai’s role also face the their audiences. tricky business of navigating regulatory Roth’s role is indicative of this trend, obligations that can be in conflict with or but he says the benefits of Slate Plus have a costly impact on the business. For reach beyond just distribution and a For many people, the word “data” makes Barakzai, who just won the Legal 500 UK couple million dollars in extra revenue. their eyes glaze over. As the chief data Award for Data Protection Individual of the Its growth has led Slate to reorient its protector at Sky Group, Nina Barakzai Year, it helps to have a genuine interest in operation around memberships more considers it part of her job to communicate her work. generally, largely as a way to serve its why it matters. “I find privacy really absorbing,” she audience without the distracting influence “The best way to explain privacy to says. “I guess that curiosity is what keeps me of middlemen such as Facebook. “Evolving folks who don’t do privacy every day is to engaged.” - Lucinda Southern out of Slate Plus has been focus on loyalty think of situations where they might handle and on loyal readers more broadly,” Roth personal data in their working or family

35 DIGIDAY MECHANICS | DIGIDAY 36 FIGHTING THE MAN Shadow organizations are creating change. BY SHAREEN PATHAK

A few days after Donald Trump won appear on Fox and asks consumers to companies. Even in the case of companies a private Instagram and Snapchat account is driven by the strength of the leadership the U.S. presidential election, a literally vote with their wallets. And there like Wyndham Hotels, which cut ties with that has focused on anonymously naming team and creative team.” But what happens strange topic captured part of the seem to be more springing up every day — the NRA in late 2017, brands have been and shaming executives within the agency when it turns out the culture is, in fact, national imagination: programmatic ad shadow organizations that in the absence forced to make statements saying they had world. The collective — it’s run, according bad? As stories of harassment — as well inventory. of official outlets are putting the pressure previously ended their relationship with the to an Ad Age interview, by 17 people in the as racism, sexism and more — continue to It happened thanks to Sleeping on everyone, from big corporate brands to group. marketing industry — focuses on asking emerge, driven by shadow organizations like Giants, an anonymous Twitter account advertising agencies, with one message: The fact that brands are even making people to send it names of those who have DMA, the very USP of an agency is at stake. that first took aim at finance company Time’s up. statements marks a major shift in how they misused power and systematically sexually “Agencies think they’re selling SoFi, which was at the time buying ads on deal with a massive cultural shift. Even just harassed and abused people. Then, it capabilities, they’re selling state-of-the- Breitbart News. The organizers behind the Corporations as conscience about a year ago, studies like one done by recirculates that information, often through art innovative approaches,” says another account took a screenshot, then tweeted The way these movements have sprung up the 4A’s and SSRS found that more than lurid images and snarky commentary. search consultant. “They’re selling it to SoFi. Thanks to the black box of have varied. In some cases, like Sleeping half of consumers didn’t like a brand to get When Ted Royer, the chief creative themselves, personally. And the fact is that programmatic — and the willful ignorance Giants, they happened in a vacuum. political. Now, depending on which study officer at Droga5, was fired earlier in the agency culture has gotten nasty.” on the part of brands about where their ads “[Companies] have always made the rules,” you read, more than half want brands to do year, many credited DMA for saying what It’s a tough line to walk. Resistance appear — SoFi had no idea it was running says one of the owners of the accounts. so — and expect them to. many in the industry allegedly already is en vogue, but it’s not permanent. ads on the site, which routinely publishes “We have no control as consumers. Or, Companies are filling a gap that has knew. Ultimately, the resisters hope they’ll sexist, racist and bigoted stories. we didn’t. And we quickly realized that been created because official institutions But the rise of DMA, as well as other stop being necessary. “I wish this was Since then, 3,874 brands (and we have no control, but we can demand aren’t able to do anything. In the absence anonymous forums like Fishbowl, has ending tomorrow,” says the organizer counting) have pulled ads from Breitbart, the change. They won’t make the change of institutions, corporations and private opened up the conversation to be one that behind Sleeping Giants. “I feel a sense of including some of the world’s biggest unless someone knows about it.” individuals have to step up. goes beyond resistance and asks what responsibility to this, and there’s been brands, like Kellogg’s, HP and Uber. Perhaps there is no bigger indication remains of the industry once its institutions something great come out of it, but I wish Sleeping Giants now has 137,000 of this happening than the anti-National Whither culture have been shown to be crumbling around it. simply that we no longer had to exist. Plus, followers, and legions of followers and Rifle Association backlash following the And it’s not just about public-facing Agencies have for years sold if they finally unmask me, it’ll be the biggest fans have made it a kind of game to spot Florida school shooting in mid-February. As activities. Accompanying a new expectation themselves on “culture.” Sure, there are letdown in history.” D companies running ads on Breitbart, the #NeverAgain movement took hold on that companies need to not just be thinking technologies and “proprietary methods,” Infowars and others of their ilk. It has Twitter, so did another one: #BoycottNRA. about balance sheets, but about social but when a client hires an ad agency, he’s offshoots outside the U.S., including the In the first 24 hours, eight companies good, is a lower tolerance for many other really focused on the culture he’s buying. EU, the U.K. and Australia. said they would stop supporting NRA practices that for years were swept under That culture is what will determine what Similar movements include Grab membership. Over the first three days the rug. kind of idea or concepts are pitched, how Your Wallet, started by Shannon Coulter alone, companies from First National Last fall, in the tsunami after the they come to life and what happens next. and Sue Atencio, which not only asks Bank to Delta Air Lines said they would Harvey Weinstein scandal and the lack “What we’ve found is that clients buy consumers to boycott companies that stop supporting the NRA, including pulling of a similar reckoning in the marketing culture,” says one longtime agency search support Trump, but also spots ads that discounts NRA members received at their industry sprung up Diet Madison Avenue, consultant. “And guess what, that culture

37 DIGIDAY MARKETING | DIGIDAY 38 Do you think all beauty brands today need

BEAUTY to rely on that same fast-cycle innovation? I don’t think it’s an option anymore. The consumer knows what she wants, and she

MARK wants it now, so even if you’re a legacy Tarang Amin, CEO at e.l.f. Beauty, company, it's important to move fast to tells Digiday why fast beauty is the meet consumer needs. I have a 23-year-old daughter, and things are so different for way of the future. BY JESSICA SCHIFFER “ her than when I was 23. If she wants a ride, The consumer knows she taps her phone; if she wants something “ to eat, she taps her phone — her entire concept of time is fundamentally different. what she wants, and she E.l.f. started as an e-commerce brand. Why We recognize that and know that it doesn’t build an offline retail presence? have to result in a trade-off between high We’ve simply followed our consumer. We quality and accessibility. You used to have wants it now. appeal to these young, diverse beauty to pick between good, fast and cheap, and enthusiasts who learn about things online, we’ve managed to do all three. but also like the experience in stores and the convenience that they can provide. Having our That must lead to some mistakes. How do own stores is the best way to bring the entire you handle failure? brand proposition to life. We embrace it. We don’t punish people for getting something wrong. If we put What criteria do you look for when selecting something online and consumers don’t like outside retailers? it, we view that as the community helping Our beauty enthusiasts love Ulta, which is why us to build a better product. Getting those A lot of beauty companies are experimenting with technologies like we’re rolling into all of their stores this year. fast insights is vital. If we launch something augmented reality. Are these overrated? Beyond the consumer, we look at what the and it isn’t quite right, we will send a They can be useful, but it comes down to strategic importance of beauty is to a retailer’s handwritten note to every single person who what your customer is looking for. People get overall strategy. Walmart and Target have reviewed it with a reformulated product. it wrong when they just have the technology always looked at beauty as very important to Customers feel that they are part of building for the sake of having it, rather than thinking their future. That makes them a much better something special and that we’re listening. about how they’re going to use it. We start partner for us than someone who’s still trying by asking what the customer wants from the to figure out what role beauty plays in their How do you promote innovation? overall experience and what enables that, business. We have the No. 1 mass cosmetics site in the world, so we don’t have to hesitate as much instead of saying, “This is an interesting technology. What should we do with it?” We Your products sell for $6 or less, but you still with decisions. We can try things out, put use AI to help make personalized product attract prestige beauty shoppers. What’s the them online and see how consumers react. recommendations to our consumer; they secret? Testing products amongst employees and value that. But we don’t use chatbots We’ve honed our supply chain to be able to through our own channels allows us to avoid because we found that our consumers deliver on quality, cost and speed so that we being risk-averse. respond better to live chat. D can constantly innovate. We co-locate our labs

with our main facilities, for example, so that we Outside of consumers, where do you look can formulate and make design choices quickly for new product ideas? and have prototypes within a week. But it also We look to our stores, where most of the comes back to our consumer: She doesn’t associates are makeup enthusiasts or artists. define the world as mass or prestige. She’s just We get great insights from them about what as likely to have something from us as she does they’re seeing in-store, as well as what from Chanel. they’re looking for themselves. We’re also constantly scanning the world — our teams make trips to core beauty markets like Korea.

39 DIGIDAYDIGIDAY MARKETING | DIGIDAY 40 a psychologist for businesses.” De Greve joined CVS as the company began to roll out its plan to stop selling tobacco and cigarettes. In September 2014, the company became the first national retail pharmacy chain to stop selling the product. THE DRUGSTORE The reason, at least the one it gave, was that it conflicted with its ultimate mission, which SAVIOR was to be a health care company. If CVS was going to be a health care CVS CMO Norman de Greve is rethinking company, it needed to stop selling tobacco. transparency. BY SHAREEN PATHAK De Greve was sold. He says he was brought in because of the “purpose-driven” nature of the company and its potential impact. CVS has 10,000 locations — and big ambitions. “When this company does something, it affects health care in America,” he says. Those looking for an explanation of of the industry, but as the savior of industry by 2020. “Health and wellness” For de Greve, whose father died when what a chief marketing officer really something bigger: health care in America. is broadly characterized as including he was 7 years old, it was a personal story. does would have been hard-pressed That means offering a low-cost makeup, supplements, anti-aging products And it was made more personal by the fact to find it at the Association of National epinephrine auto-injector in the middle of and nutrition. And it has immense cultural that he now also has a 7-year-old son. “The Advertisers’ annual Masters of the ongoing EpiPen scandal that has led to connotations as authenticity, inner beauty purpose was a way to unite functions and Marketing conference in 2016. outrageous price increases for the brand- and the “whole you” become much more entities,” he says, “to give everyone the same CMO after CMO took the stage, talking name EpiPen. In January, CVS decided important to consumers than something way to think and behave. Tobacco was the about everything, it seemed, but their to make that offering, with an additional that makes blemishes less noticeable. symbol of that.” own companies: their agencies, their tech bit of smart marketing that let customers It’s a phenomenon that’s resulted He’s talking internally — CVS was vendors, the growing power of Facebook qualify for a discount — $100 off the $110 in a massive shift both in the prestige making moves to become a real player in and Google. Being a CMO, it seemed, sticker — at the cash register so they space — witness Goop’s newest nutritional health care, a move that will get a boost in meant being just that — a representative could literally see it in front of their eyes. supplement “Why Am I So Effing Tired?” the arm thanks to its proposed acquisition of for the entire marketing industry. (Most drug discounts happen at a later — but also has incredible effects in the health insurer Aetna for $69 billion. Until Norman de Greve took the reimbursement stage.) drugstore aisle. That’s where CVS comes in. But first, the studying: Health care is a stage. There are also smaller moves. In The company is on a mission to tie makeup complex industry, with myriad regulations. The CMO at CVS Health told the mid-January, CVS said it would no longer with health with wellness with medicine, For de Greve, who had been at DigitasLBi story of losing his father to lung cancer “materially” change imagery it creates bringing together some of the bigger for over a decade, he felt like he had built — a decision that played heavily into him for the beauty lineup in its stores — cultural forces that it hopes will make the shortcuts in his head. But once he got to CVS, accepting the job right before the company committing to not alter people’s skin difference. it was a different ballgame. He pored over decided to quit selling cigarettes and colors, eye colors, shapes and sizes. Part “There’s a lot of stuff in beauty that health care documents and news at night. “It rebrand as a “health care company.” of this was the introduction of the CVS feels disconnected,” de Greve says. “What took time to soak in.” It was a talk that attendees ranked as Beauty Mark, a watermark that will appear if we drive more transparency there?” It did. Within a year of CVS quitting the year’s best — not just because it was on authentic and unretouched photos in tobacco, there was a 1 percent reduction in emotional, but because, as one attendee the store. Finding purpose cigarette sales in all states where CVS had later remarked, at least he was talking De Greve points to statistics that De Greve is the first of his family to be born a 15 percent or greater market share. And a about his own brand. Amid all of the illustrate why Beauty Mark was a priority: in the United States. His parents, who are study by the CVS Health Research Institute industry talk around viewability, metrics, Two-thirds of women think the media from the Netherlands, moved to the U.S. in found that the average smoker in those platforms and more, de Greve’s central sets unrealistic standards for beauty; 80 the 1960s. Growing up in Massachusetts, states was buying fewer cigarettes as well. focus is much simpler: the customer. It percent of them feel worse after seeing a he says the first thing he learned about There have also been other moves: De seems trite — of course, brands should beauty ad. himself was that he was an outsider. “I Greve has pushed to bring healthier options, care about the customer! — but to the CMO “This is the greatest example of how liked to observe behavior,” he recalls of his from almond milk to yogurt, into CVS stores. at CVS Health, it’s an important distinction we have to follow the consumer,” de Greve childhood. Not having necessary guidance The company no longer carries sunscreen and a way not to lose focus. says. “If you look at where the consumer on American culture or customs from his with a sun protection factor of under 15. “My job is not to be the evangelist for is going, it’s authenticity. The top five family gave him a vein of interest. “Lots of people are doing altruistic things, the story of marketing,” says de Greve, 48, celebrities for young people are YouTube He dabbled in a lot of industries: but I know that for many, marketing feels like who joined CVS two and a half years ago stars.” In college, he vacillated between doing gimmicks and not purpose-driven action,” de from DigitasLBi. “A lot of what’s happening It’s a convenient and lucrative architecture or physics. After, he went into Greve says. “We have to connect that mission in the marketing world is about driving business for CVS to make a mark in. Beauty finance, working at Bain Capital. (“That with actually doing something different.” the efficiency of advertising, viewability is an $84 billion juggernaut, according was the way to make it in America,” he That’s what brings us to the CMOs. or fraud. But why can’t you just start with to Statista. But its growth over the next recalls thinking.) For de Greve, the biggest challenges are de empathy for the customer and the thing decade is not necessarily in selling more He landed at DigitasLBi in 2001 and rigueur: Marketing is a difficult industry, they really need?” concealers. It’s in marketing a concept went through every agency acronym, there are many options, the TV world is of beauty that is inextricably tied to including svp, vp/gd and evp before petering out; it’s unclear what will happen Taking the broad view wellness, also known in marketing circles becoming president at the Publicis-owned once TV does finally become less effective. De Greve is championing transparency as the beauty-belly connection. A Rodale agency’s Boston and Detroit offices. But de Greve is insistent that his job not be in marketing in a way unlike any of the consumer research study late last year “When you get into marketing, conflated with “running advertising.” industry’s marketing chiefs are doing — found that wellness, of which beauty is a you realize a whole function of account The job is much simpler: “I’m here to not by positioning himself as the savior subset, not a sibling, will be a trillion-dollar planning,” he says. “I sort of felt like being represent the voice of the customer.” D

41 DIGIDAY MARKETING | DIGIDAY 42 blockchain. The information technology

firm is “probably” the world’s largest 3 blockchain builder, claims Babs Rangaiah, global partner for marketing solutions at IBM iX, and that expertise will prove key in the coming months as the business attempts to use the transparency crisis engulfing media to its advantage. 0 IBM iX is working with a small group The of advertisers, including Unilever, on “ testing the technology to curb fraudulent traffic and unearth hidden fees on both the threat media and data they buy. It’s too early to reveal the results of those tests, Rangaiah is real says. Observers have questioned whether THE NEW the technology can yield the processing power needed to match ad tech platforms that are handling millions of requests per CONTENDERS second. It’s a question that's come up Consulting firms are methodically putting in place the “several times” during the technology’s pieces to take part of the ad agency business. development, admits Rangaiah, who says that over time it wouldn’t be an issue. BY SEB JOSEPH ” “The solution we’re working on is essentially like having an operating system with apps on top that allow you to solve different aspects of the speed it takes to buy and process millions and billions of consortium ensures Deloitte Digital the transactions across media.” D Consulting firms are ready to be taken seriously in the ”best-priced, most effective media on a advertising game, having been dismissed by agency bosses. total objective basis,” says CEO Andy Main. Marketing shifted from a cost center to a growth lever at many Unlike other offerings, the consulting firm big brands in 2017, and consequently, a nontransparent, focuses its media buying on clients’ owned complex agency model was scrutinized by many of those same properties such as a branded site or a social businesses. For consulting firms that have spent recent years media page. This is the big secret the world understanding blockchain, martech and audience data, the shift is just waking up to, Main adds. “You have couldn’t be more timely. heard a lot from us on owned media, for Marketers and agencies agree that independent advice and these reasons — it is easier to keep and verification is what’s missing, but none were willing to commit that grow a customer you have versus getting this nirvana is achievable. Beneath the technology, organizational a new one, and thus, owned media is a charts and audit trails, consulting firms believe they can be that great place to focus on to not only spend trusted partner for brands. Regardless of the conflicts of interest your marketing money wisely, but also get around their bulging business models, those companies want to customers for life,” he says. 2018 show advertisers how they have their best interests at heart. As its rivals try to buy more media, It’s little wonder then why Accenture Interactive is confident PwC has its sights set squarely on auditing for what 2018 has in store. Having launched its fledgling media media and data. The consulting firm wants business last year, which effectively sells programmatic as a to influence the marketing choices of the managed service by helping advertisers set up their own trading world’s biggest companies, not perform the desks, the business is focused on unpicking every part of the supply tasks. It’s why those PwC executives closest chain. It is working with independent digital agency Jellyfish to to marketers are excited at the opportunity learn more about how it might help brands looking to take the spawned from the transparency debate. management of programmatic trading in-house. As marketers attempt to get closer But industry observers wonder how easy it will be for to both media and data, PwC wants to Accenture Interactive to jump into media buying: They question be the business that helps them decide how conflicts within the business can continue to go unchallenged, which players to invest in, with its media when it is trying to influence marketers on their choice of ad tech insight and assurance team exerting more while also competing for budgets with ad tech propositions of its influence over how budgets are spent. own. Joydeep Bhattacharya, Accenture Interactive's managing Brands, agencies and publishers can’t afford director for the U.K. and Ireland, says the issue will be addressed to just be responsible for how they collect later, but now is not the time. and process data under the General Data Deloitte Digital’s plan for media budgets is far clearer Protection Regulation — they need to be than what its peers have revealed to date. The consulting firm able to vouch for all their partners, which is does media strategy and planning in-house and then uses an where an auditor like PwC comes in. application programming interface to access inventory reserved

If IBM iX gets closer to marketing POINTS: by a consortium of agencies based on future forecasts. Using the budgets in 2018, then it will be thanks to

43 DIGIDAY MARKETING | DIGIDAY 44 HI-score: 100000 1 up - 2400000

“WeChat is a RICHEMONT'S major CHINA OPPORTUNITY opportunity. Richemont thinks it’s found the formula for cracking the elusive Chinese upscale fashion market. BY HILARY MILNES ”

Richemont executive Johann Rupert was so rife. Obviously, we had to fight that exceeds every other region, and the WeChat, which counts 1 billion active users, calls it “the great China opportunity.” this,” says Rupert. “Today, China has cohort of millennial luxury shoppers is and Rupert has told investors it’s considering For the first time, the French normalized. We plan to lift domestic responsible for a recent spike in luxury other ways it can ramp up e-commerce conglomerate is exploring e-commerce consumption. We see growth across all spending, according to Bain & Co. For efforts in China. capabilities in the region. Today, the luxury goods.” Richemont, the Asia-Pacific market grew “WeChat is a major opportunity for luxury-company-finally-embraces-the- Richemont is exploring options by 25 percent year over year in the first half a brand like Cartier,” says Liz Flora, the internet story is a tale as old as, well, the around moving more inventory online of financial 2018, as reported in November. Asia-Pacific research analyst at business internet. But the old guard is gruelingly through partners’ luxury-oriented portals, Overall, it’s responsible for 39 percent of all intelligence firm L2. “Most brands use it for slow to wake up to the potential of digital like Tmall’s Luxury Pavilion and JD.com’s sales. one-time campaign launches or customer sales, and in China, a perfect storm of Toplife. The strategic shift represents a Reintroducing Richemont’s portfolio engagement. To launch a store shows a opportunity has kicked Richemont’s retreat from traditional wholesale retailers of luxury brands requires a new strategy. deeper understanding of where customers higher-ups into high gear. and a move toward holistic, cross-channel According to Alibaba research, China’s luxury spend time and money in China today.” And for Richemont, which owns capabilities. shoppers are young, between the ages of 20 What’s critical for brands to understand luxury brands like Cartier, Piaget and Van “We’ve tried to manage [wholesale, and 34, and their lives revolve around their about the “China opportunity,” says Flora, Cleef & Arpels, launching online operations retail and e-commerce channels] mobile devices. EMarketer predicts that by is the balance between control and key in China is a chance to rebuild. separately. This is the model of the the end of 2018, 75 percent of e-commerce partnerships. Companies like Alibaba and After a period of overselling through past,” Richemont CFO Burkhart Grund sales in China, worth over $1 trillion, will be JD.com are positioning themselves as a network of distribution partners in China told investors on a recent call. “The transacted via mobile. resources around e-commerce logistics, during a different time when the market customer doesn’t see wholesale, retail or “If companies were to fully understand manufacturing, deliveries and marketing was “booming,” according to Rupert, e-commerce as separate channels. For how much time this customer is spending for brands entering the market. WeChat, on excess inventory flooded the gray market. them, it is all part of the same experience. on their phone and how much time on their the other hand, gives a brand total control Luxury watches and jewelry sold at That is the much bigger challenge phone is spent shopping, they would be to present itself to customers, handle orders discounts of up to 65 percent. Richemont the industry is facing. We believe the running in this direction,” says James Rogers, and build up customer engagement. has spent the past three years buying back traditional wholesale trade, especially in the managing director of CR Retail, a retail “Richemont, with Cartier, has an all the inventory being sold through third- watches, will over time disappear.” consultancy firm based in Shanghai. “It’s a incredible resource in front of it,” says party channels, in some cases destroying Starting over in China is essential way of life.” Rogers. “It won’t take long for the company product in order to start over with a clean today for luxury companies. The Asia- In 2017, Richemont made its first official to see this as a road map for the rest of its slate. Pacific market (excluding Japan) is seeing move when Cartier launched e-commerce way forward in China. And this time, it might “[For years], corruption in China growth in the luxury category at a pace operations on Chinese mobile platform actually be ahead of the curve.” D

45 DIGIDAY MARKETING | DIGIDAY 46

PLAYER 1 level 10 score 10000000

THE NEXT BILLION Marketers are finding their way on WeChat. BY YUYU CHEN

Advertisers wanting to reach social media number of our clients like to use Moment of banners on WeChat are really low. Few users on China have few options, with ads to target Chinese tourists who travel WeChat users are engaged with banners.” platforms like Facebook and Snapchat abroad.” being blocked there. That’s made Digital stores Tencent-owned WeChat, with around 980 Influencer marketing with popular While WeChat is a popular marketing million monthly active users around the accounts channel in China, its targeting capabilities world, a must-have platform for brands In addition to Moment ads, brands can work are not as granular as Facebook’s, so brands trying to woo Chinese consumers. with influencers (known as key opinion often use WeChat’s e-commerce feature, “Ad demand for WeChat is definitely leaders, or KOLs, in China) on WeChat too, Graziani says. Categories that have low increasing. It was already popular in China by sponsoring long-term content in an product return rates such as bags, watches two years ago, but it took some time for influencer’s WeChat account or buying and leather goods typically set up stores on Western advertisers to understand that banners at the bottom of an influencer’s WeChat, he says. WeChat is not a Facebook copycat — it’s post. While sponsored posts are usually In a survey of 89 luxury fashion brands, really something on its own,” says Thomas direct buys from influencers, advertisers can Here are the major ways brands use L2’s 2017 Digital IQ Index report showed that Graziani, co-founder of WalktheChat, buy banners that target influencer accounts WeChat to promote their products and 8 percent used WeChat as an alternative a marketing agency that specializes in on a cost-per-click or CPM basis from services. form of direct-to-consumer e-commerce, WeChat. “Tencent has also done some Tencent, says Humphrey Ho, managing with most attempts being one-off, limited- international PR to build WeChat’s brand director of Hylink Digital’s Los Angeles Advertising on Moments time sales. Brands like Dior and Givenchy awareness, which also helps drive the ad WeChat is known as a closed system, operations. demand.” have done limited sales of handbags during where, similar to Snapchat, only verified “Buying banners in articles is much Similar to social platforms like holidays like Chinese Valentine’s Day. Those friends can see an individual’s updates on cheaper than working with KOLs directly. Facebook, Instagram and Snapchat, It’s smart of Tencent to let advertisers target bags usually sell out quickly on WeChat, Moments — friends of friends can’t see the WeChat lets companies run both paid and specific KOLs — a lifestyle KOL or a travel so when people want to make a purchase, person’s posts. WeChat served its first ad unpaid promotions on the platform. Paid KOL, for instance — and place banners brands will also direct consumers to shop in on Moments in 2015, and brands including advertising — which is only available on the on their accounts accordingly,” says Ho. store, according to Flora. “Another reason L’Oréal, Dior, BMW and KFC have tested this Chinese WeChat app, not the international “Tencent has also developed an algorithm why fashion retailers typically do one-off version — includes videos and images on ad format. Moment ads can take the form of to measure the quality of KOLs’ followers, campaigns on WeChat is because they are Moments (WeChat’s news feed) and banners still images with captions, videos and “card and we audit bots, so WeChat offers clients still testing waters, and sales generated by on Official Accounts. ads” that direct viewers to a full-screen true engagement.” WeChat are still low for most brands,” she “WeChat has lately increased ad ad or a product page, according to agency One problem with targeted banners says. formats because Tencent’s ad revenue is executives. Advertisers can purchase on influencer accounts is that such targeting Tencent doesn’t charge retailers pretty low compared to the company’s Moment ads in an automated way on a CPM requires those WeChat stars to give Tencent to open a digital store on WeChat, but it overall revenue,” says Liz Flora, editor of basis, which usually ranges from 80 to 150 consent, while top-tier influencers don’t demands a payment processing fee of Asia-Pacific research for research firm L2. yuan (around $13 to $24) CPM, according want to do so because they can make 0.6 percent of each domestic transaction “Tencent is trying to ramp up advertising, to Graziani. (Snapchat’s programmatic ads more money through sponsorships than in China and 2 percent on a cross-border as it’s a one-on-one social platform instead range from $3 to $8 CPM, by comparison.) banners, which are usually worth around transaction, according to Graziani. D of an open platform, meaning that it’s hard “Moment ads are the most popular 3 yuan (nearly 50 cents) per CPC, says for things to go viral on WeChat without any format on WeChat because it looks more Graziani. “If a brand only cares about price paid media.” natural than banners in the WeChat and impressions, banners could be the best ecosystem,” says Graziani. “An increasing option,” he says. “The click-through rate

47 DIGIDAY MARKETING | DIGIDAY 48 unpleasant experience on the platform. Vintage Industrial that costs at least $5,795 During a fireside chat at Alibaba’s not specific to Taobao, and Alibaba made few knockoff handbags. It would be silly That November, Hankerson sent can be found on Taobao for as little as Gateway conference in Detroit last a big effort over the past year to ensure otherwise.” Wang 404 listings for products that he $93, and a $12,595 crank table base from year, company chief Jack Ma described it wouldn’t show up on the “notorious But Hankerson’s experience says believed were counterfeits and another Vintage Industrial is listed at less than $50 counterfeiting, IP infringement and cheating markets” list. otherwise. On Feb. 2, he found another 397 listings last March. To date, Alibaba on Alibaba.com. as a “cancer” for his business. “There were “There are fakes on Rakuten in 5,000 listings and photos of his company’s has taken down around 20 percent of the Hankerson’s experience resembles a lot [of fakes] at the beginning, but you Japan, Amazon in the U.S. and Europe products circulating on Alibaba’s cloud product listings he reported, according that of some well-known brands on need to fix it,” Ma said on stage. “Today, and eBay in the U.S., so how can Taobao content delivery network and is now eyeing to Hankerson. Taobao. A quick search on the platform more than 100,000 brands partner with us. be the only e-commerce platform on the legal action. “Alibaba has deep pockets. The “Wang was willing to help, but the surfaces a fake Gucci men’s belt for around We are the leader in anti-counterfeit and IP USTR’s ‘notorious markets’ list?” says company should have the technology to counterfeiting situation is not getting $45 and a $31 tracksuit with a logo similar protection.” Zakkour. “Nobody offers stats to prove that block counterfeit listings, and it is liable for better on the Alibaba platforms,” to Adidas’. Still, Alibaba landed on the Office of counterfeiting on Taobao is more rampant damages,” says Hankerson. “My photos are FIGHTING Hankerson says. “When you take two An Alibaba spokesperson says the the U.S. Trade Representative’s 2017 list of than other e-commerce platforms.” copyrighted with the [U.S.] government, and plagiarized photos down today, you company has enacted “rigorous measures “notorious markets” for the second year in Taobao’s business model, which largely I told Alibaba repeatedly to take them down, FAKES find another four the next day, which is to ensure that the merchants on its a row. “A high volume of infringing products consists of third-party sellers, might be but it’s like falling into a rabbit hole. I want frustrating.” platforms meet the highest standards of reportedly continues to be offered for sale partially at the root of the counterfeit issue. to go after those guys to stop this practice. Alibaba is filled with counterfeits. Alibaba says it has employed big integrity.” Alibaba uses big data to scan and sold on Taobao.com, and stakeholders With its business-to-consumer platform It’s not fair and shouldn’t be allowed.” D BY YUYU CHEN data and proprietary technology and all new and existing Taobao accounts to continue to report challenges and burdens Tmall, Alibaba charges a brand to open a works with law enforcement to minimize prevent the setup of new accounts where associated with IP enforcement on the store, takes a commission on each product fakes on its e-commerce platforms. the prospective merchants use fake IDs. platform,” states the USTR report released in sold and makes money through advertising. Taobao, which is often compared to Alibaba also uses identification techniques January of 2018. On Taobao, advertising is the main revenue Amazon, still has a big reputation for like facial recognition to ensure that people Trade group American Apparel & stream. That means Tmall merchants Greg Hankerson, founder of Phoenix- selling knockoffs, which threatens its seeking to open a store are who they say Footwear Association addressed the USTR’s are typically first-party sellers and rights based boutique furniture company image with Chinese shoppers as well as its they are. Using its proprietary technology, decision in a statement: “Many of our owners themselves, so they understand IP Vintage Industrial, has been fighting plans to expand into other markets. For Alibaba has found and banned “hundreds members have reported improvements on protection well, while Taobao is filled with plagiarized designs on Alibaba’s the second year in a row, the United States of thousands of merchants” for selling Alibaba platforms especially those related third-party sellers who know less about IP platforms, especially Taobao, for has put the site on a blacklist for sales of IP-infringing products on its platforms, the to procedures and timelines for takedowns. protection. the past two years. Hankerson first counterfeit goods and IP rights violations. company spokesperson says. … At the same time, others have reported “Fakes don’t exist on Tmall, and got in contact with Xinghao Wang, Hankerson says the images of the In January, Alibaba hosted a meeting ongoing problems on Alibaba platforms, counterfeit on Taobao is getting better,” senior manager of intellectual property plagiarized designs he discovered are in Guangzhou, China, with members in particularly Taobao.” AAFA declined to says Zakkour. “There is external and internal protection and innovation for Alibaba, in stored on Alibaba’s cloud content delivery its anti-counterfeiting alliance, including further comment on the decision. pressure for Alibaba to tighten IP protection. August of 2016 when he complained that network, and many of them are tied to Burberry, to tighten IP rights protection Michael Zakkour, vp of China practice If consumers can’t trust the merchandising Alibaba’s intellectual property protection product listings on Alibaba’s platforms, through law enforcement, test buying for Tompkins International, a supply chain on its platforms, they will move elsewhere. reporting system didn’t work and especially Taobao. For instance, an of products and Alibaba’s own online IP and distribution consulting firm, thinks the And Alibaba’s motivation is not to risk the suggested that the media would cover his industrial console with three drawers from protection platform. USTR is biased because counterfeiting is company’s global reputation for selling a

49 DIGIDAY MARKETING | DIGIDAY 50 THE NEXT GENERATION At VCU Brandcenter, there’s a new focus on tech and data. BY ILYSE LIFFREING

At VCU Brandcenter, an anxious group of at the 22-year-old school. “Before, there “In any given class, we change the got their start at the agency. Being part of a more collaborative, moved the school from thinking, strategy and technology makes students heads to the front of the class was one route to get a job in advertising. content and nature of the assignments, university enables students at Brandcenter VCU’s mass communications department its graduates, which number about 100 a to present their project proposals. But Sure, there are still students getting bring in real clients and constantly ask to get exposed to other disciplines and work to the business school and added media year, attractive to recruiters. Lionel Carreon, instead of their peers’ eyes looking back at jobs at agencies, but now we have some students to solve contemporary problems,” with students in those areas. For example, in buying to the curriculum. As it became global director of creative recruiting at R/ them, they are faced with a sea of virtual starting their own businesses, or going into said Andrew LeVasseur, experience design fall 2017, Brandcenter strategy students and apparent that students wanted to work GA, calls Brandcenter students “Swiss- reality headsets. consulting or working on the client side.” professor at Brandcenter. “We are adapting anthropology students from VCU’s School of on the brand side, the name of the school army knives.” Alex Ross, recruiter at The On any given day, students at This effort to infuse the curriculum our curriculum in near real time to those World Studies worked together on a project changed from Adcenter to Brandcenter. Martin Agency, says the agency employs 14 the graduate school, part of Virginia with new technologies that agencies and changing dynamics.” that examined age bias in society. Being tied to the university can make it Brandcenter alums and tries to hire them as Commonwealth University in Richmond, are brands are embracing started three years Brandcenter was started by Diane Originally, the school was called the complicated for Brandcenter to update the much as it can. likely to be working on projects involving ago when the school evolved its creative Cook-Tench, then a partner at The Martin VCU Adcenter and had three tracks — art curriculum, yet in the eight years Boyko was Troy Gary graduated from Brandcenter emerging technologies like augmented technology program into user experience Agency in Richmond, to fill a void. In 1996, direction, copywriting and strategy — to director, the school altered its curriculum in May 2017 and is now a digital strategist reality and VR for companies like Spotify design and introduced classes such as visual there were various portfolio schools for train students for jobs at traditional seven times, which he says is an amount at Deutsch. “Evolving is the name of the and Uniqlo. The school’s 60 classes routinely storytelling and information architecture. advertising students, such as Creative Circus ad agencies. But as media separated “unheard of in this industry.” Brandcenter’s game,” he says. “I don’t think bring in new technologies and approaches Classes on artificial intelligence and human- and Portfolio Center, but there wasn’t a from agencies and the public’s trust in As the ad industry becomes more companies know what they are looking for, that agencies, brands and consulting firms machine interaction are set to start this fall. school connected to a large university. Cook- advertising began to diminish, the school’s global, Cantrell says the school is looking but we are trained and certainly qualified to want their future employees to have. In the past several months, students Tench wanted to provide a path for students leadership realized it needed to evolve as into creating online classes that would help them figure it out.” D “We can’t really have a static have worked to bring AR and geotargeted who wanted a career in advertising but also well. appeal to international students and curriculum because the marketplace is content into the Spotify app, brought wanted to earn a master's degree. Creatives Rick Boyko, past co-president and chief offering ongoing education classes for always changing,” says Caley Cantrell, head technology into Lowe’s stores and made a from The Martin Agency served as some of creative officer of Ogilvy North America, executives who are looking to improve their professor of Brandcenter’s strategy track mobile app for Uniqlo to help the retailer the school’s first teachers, and today the became director of VCU Adcenter in 2003 skills outside of a degree program. and head of the curriculum committee collect new kinds of data. school still employs several professors who and led the school in making siloed tracks The school’s emphasis on creative

51 DIGIDAY MARKETING | DIGIDAY 52 THE RUSS EFFECT Russell Westbrook and NBA stars have turned into fashion icons. BY HILARY MILNES

When Russell Westbrook stepped into says Stein. “You could make the argument Chesapeake Energy Arena, home of the that they’re the best in the league as far as Oklahoma City Thunder, in May of 2016, style goes. But what sets Russ apart is that photographers were waiting to capture he’s not afraid to be himself and try new his latest ensemble. The NBA player was things. You have to have a high amount of wearing a cropped light-wash jean jacket, confidence with the new pieces he’s wearing, white jeans, white sneakers, shades and creating or designing. Some people like that He’s“ turned the walk to a scoop-neck tank top. By that point, the or they don’t, but that’s what makes you a Russell Westbrook effect on fashion was style icon.” the locker room into an in full swing, and photos of the outfit lit Confidence likely comes easy when up Twitter. The NBA tweeted about it, Westbrook, at 6-foot-3 and 200 pounds, athlete’s runway. proclaiming that Westbrook had arrived can easily flaunt high fashion. But for “in the way only Russ can.” the everyman, there’s been a rise in style That influence was felt online. His sensibility. According to L2 research, the jean jacket — a $1,595 version made by men’s apparel market is expected to grow acclaimed streetwear brand Fear of God — at a compounded rate of 5 percent over ” sold out shortly after. At large, Westbrook’s the next two years, more than doubling influence on fashion has extended into the expected growth rate of the women’s brand deals, collaborations, a signature market. Brands and retailers are reacting pair of Jordans (naturally) and even his by opening stores specifically for men and own fashion line, Honor the Gift, which hit starting dedicated social media accounts mainstream insurgence of streetwear brands stores in the fall of 2017. He’s worked with and newsletters in an attempt to capitalize like Supreme. brands like Tumi and retailers like Barneys on this interest. But overall, athletes have become more to design lines. But whether or not Westbrook’s fashionable, and Westbrook has been at the “When you think about the way NBA sartorial choices have emboldened the center — albeit the polarizing center — of style has exploded, Russ is the forefront. masses to take more fashion risks is another that shift. He is the dude in every way, shape and matter. “Many athletes have gravitated toward form, and it’s because he’s done it best,” “He certainly has the fan base and fashion and are addressing much more says Sam Schube, GQ.com deputy style platform to evangelize fashion, and he does fashion-forward styles than they have in editor. “Whenever Russell shows up, it’s that with bright-eyed enthusiasm,” says the past,” says Steven Kolb, the president of a fashion runway. He shows off what he’s Brian Trunzo, the senior menswear editor the fashion industry trade association the Image source: Shutterstock wearing, and everyone watches, and the at trend forecasting firm WGSN. “I just Council of Fashion Designers of America, rest of the league follows.” don’t know, though, that his voice is widely which has seen an influx of dedicated time was displayed through low-hanging massive attention. The walk into the The NBA is having an extended respected or understood as authoritative menswear designers in the past five years. baggy pants the league’s bigwigs deemed stadium is a huge moment for NBA players moment in the style spotlight thanks to when it comes to fashion. I believe he has “Young men look to athletes and are unacceptable. to express themselves through their players like Westbrook, LeBron James and an influence on other athletes, but at large, influenced by that.” The catalyst of the NBA’s current style favorite brands.” Dwyane Wade, who began representing I just don’t know if the average person cares Whether or not fans think they can pull stars is the platforms on which the players Since joining the league in 2008, designers in news conferences the same or is influenced by his particular choices.” off Westbrook’s joggers and fitted suits, his today are recognized for their sartorial Westbrook’s style choices are unabashed way they do Nike or Under Armour on the Trunzo, who insists that he respects work within the fashion industry is pushing choices. and — importantly — polarizing. James, court. The league is effectively setting Westbrook’s clear affinity for fashion and the envelope of what’s considered possible “The NBA has always been at this the NBA’s unrivaled MVP, has pulled off the tone for style trends, which develop willingness to take risks, says the word for athlete franchises, Schube says. point — fashion is a form of self-expression, collaborations with retailers like Kith, in conjunction with top designers and “contrived” comes to mind when thinking of “I don’t know if athletes knew they and these guys have been expressing and he can set a trend. But Westbrook’s leading streetwear brands. It’s not that the athlete’s highly stylized fashion choices, could go such places with collaborations themselves through what they wear on head-turning style choices, like a neon NBA players showcasing their personal be they an acid-washed denim button-down before,” he says. “Men’s fashion is completely and off the court,” says Jason Stein, the orange photographer’s vest, an all-denim style is new. It’s not. The personal style tucked into blue jeans or a pair of round, red different than it was even five years ago, founder and CEO of Cycle Media. “It’s ensemble or a shirt nearly ripped to shreds, players displayed in the 1990s and early sunglasses perched on the end of his nose. and it’s because they see these guys they become more interesting and talked about draw attention. 2000s led to a dress code mandate in 2005 Trunzo said the uptick in menswear really admire getting out there and trying and trackable today with the advent of “LeBron and Russ have engaged that required players to dress up in suits can be attributed to a few different factors, things. And if Russell wears a vintage metal social media. The athletes themselves have audiences, and if they wear something and and ties any time they represented the like the flurry of trendy retail options such band tee, that opens it up to the masses. Fair millions of fans and followers, and when share it, it has a big impact, and that’s why NBA off the court. The mandate looked to as Bonobos and Indochino as well as the game.” D what they’re wearing is posted, there’s they’re such a big part of marketing today,” squash out personal style, which at the

53 DIGIDAY MARKETING | DIGIDAY 54 customers who don’t feel passionate about make, however, is thinking that staying off Chirico after the third investor brought brand names. Amazon’s platform will somehow prevent up the Amazon partnership. “Amazon is a But what’s next is what brands that rely it from creating its own brand in their wholesale model that works really well for on loyalty and brand cachet have to worry category.” us and is profitable. Our biggest growth about, according to Amazon consultants Yanez argues that it won’t make a channel continues to be digital.” and experts we spoke to, as well as brand difference because Amazon can get the According to L2’s research, Calvin Klein in executives. data from other brands and from product fact has performed well on Amazon, despite Brands have two choices: Get as far away searches, over which it has vast ownership: Amazon’s attempt to get customers to buy from, or as close to, Amazon as possible. 55 percent of shoppers in the U.S. start their private label in the exact categories Calvin searches on Amazon, according to a 2017 Klein has pushed on the platform: T-shirts, Pioneering a new era of private label BloomReach survey. underwear, sweatpants and other basics. As Amazon explains it, it navigates the But that hasn’t stopped brands from “Calvin Klein has been extremely private-label space like any retailer would. It holding out, particularly in fashion, where successful by doubling down on its Amazon looks for white spaces in its inventory where cachet and prestige have a much bigger partnership because in tandem, they’re AMAZON'S supply isn’t meeting demand. The high impact on the bottom line than they do in running influencer campaigns and working margins on retailer-owned brands are worth a category like batteries. As Amazon has with celebrities and putting high-end the investment, which for Amazon, spans demonstrated, brand holdouts just open fashion collections down the runway, which INVISIBLE BRANDS several design models. Without providing the floor for more profit-eating private-label feels miles away from its Amazon brand How the company is changing the threat private label specifics, the spokesperson said that in brands to bubble up. page,” says Kiri Masters, the founder of creating its private-label products, Amazon In fact, with 29 brands, Amazon has Bobsled Marketing, an Amazon-focused poses to established brands BY HILARY MILNES works with an internal design team as invested the most in its private-label brand consultancy. “This all came down to well as external design and manufacturing apparel push than any other category. how they let the brand breathe separately partners. while being a first mover on Amazon. When asked about its private-label If someone wants to buy Calvin Klein strategy, Amazon’s spokesperson made no underwear on Amazon, no Amazon brand is Amazon may not want brands to think they have anything to be mention of the role its vast customer data going to sway that decision.” afraid of, but in 2017, it pulled the trigger. plays, but that data makes all the difference. But many fashion brands, including those That year, the company’s private-label business skyrocketed, “What’s different now is that Amazon is in the competitive and luxury spaces, have with Amazon now owning the trademarks for a total of 41 brands innovating top down based on the data they decided to stay off Amazon altogether, across the apparel, shoes, accessories, grocery, household and can collect through e-commerce. That type a strategy that may seem like a noble pharmacy categories, up from 12 in 2016. Amazon doesn’t break out of specialized manufacturing, that insight cause in the short term, but could be a what percentage of its sales come from private-label brands versus into a brand’s customers, is most terrifying death sentence in the long term. Amazon’s wholesale retailers versus vendors, but a report from e-commerce to brands,” says Smith. “It’s not that they algorithm favors historical data like reviews analytics firm One Click Retail estimated in December that Amazon’s can launch a T-shirt that will put Hanes and past purchases, putting latecomers at private-label brands drove about $470 million in sales last year. out of business — it’s the collective effort a disadvantage. All the while, withholding For now, private label is a small addition to Amazon’s thickly lined around private label that’s concerning. brands from Amazon won’t stop the rollout pockets. For its financial year 2017 earnings, the company’s net sales Private label can shift sales away from of new private-label brands. jumped 38 percent to $60 billion. According to the company, it’s a brands if they don’t have an established “Having a brand-owned presence over merely supplementary business. loyalty with consumers. And even if they Private label and fashion’s Amazon Amazon today is a question of survival, and “Like any other company, we take feedback from customers, do, no one knows how long that loyalty will problem that means realizing that the only way to and pay attention to trends and create products we know they are hold.” In November, Calvin Klein announced it have control is to sell directly on Amazon searching for and want to buy,” says an Amazon spokesperson. The company’s web of algorithms can had inked a deal to partner with Amazon and being better than Amazon on a brand “We’re focused on our customers and providing them with low track, through billions of purchases and for an upcoming push around its bra, level, where they can’t necessarily win,” says prices, vast selection and fast, free shipping options, and we’re not searches, the exact specs of a product underwear and loungewear categories. The Smith. thinking about competitors.” in any category and how it’s expected to brand would be working with the retailer As legacy brands like Calvin Klein try to Nothing to worry about here, Amazon says. And that would be perform, then give it preferential treatment around the holidays to host a pop-up that adjust to an Amazon-dominated landscape, true if we were talking about any other retailer, like Costco, Kroger on the basis that Amazon’s algorithms favor sold Calvin Klein-branded boy shorts and the CEO of one direct-to-consumer brand or Macy’s, all of which have been selling private-label brands products that are expected to perform bralettes, all using Alexa-powered customer says the key to success is not harboring a well before Amazon founder Jeff Bezos was even a twinkle in his the best. No first- or third-party seller service and Amazon Prime checkout. “founder delusion” that any one brand story mother’s eye. It’s business as usual. can commandeer Amazon’s algorithms Additionally, Amazon would become the can top Amazon. The brand sells a small But of course, we’re not talking about any other retailer. like Amazon can itself. Take batteries, for exclusive seller of Calvin Klein’s underwear selection of its inventory on Amazon to find “For brands selling on Amazon, there’s a threat at every turn. instance: AmazonBasics batteries have risen business throughout the holiday season and new customers and drive revenue, but the But Amazon’s private-label brands are perhaps the biggest source to the top of every search, surface with an potentially beyond. CEO isn’t worried that Amazon will harvest of fear. It’s what everyone has worried Amazon would do for a long “add to order” button on the product page Investors had questions. During an its data to imitate it in a private-label time coming,” says Cooper Smith, the Amazon analyst at business of every electronics item and always offer earnings call in November, Manny Chirico, capacity. intelligence firm L2. “And what makes Amazon so threatening in this a lower price than Duracell or Energizer. CEO of Calvin Klein’s parent company “What Amazon will win on is convenience, particular space and different from any other company is its data.” Today, those batteries account for 96 PVH Corp., faced down concerns that the not necessarily price,” says the CEO, who As Amazon continues to push its private-label business, armed percent of all battery purchases on Amazon. Amazon deal would scare off other existing asked to remain anonymous. “By selling to with years of purchase and search history and a network of “There’s a competitive advantage that retail partners and forfeit too much control Amazon Prime members, I can ride some of algorithms, it could change the way customers search for and Amazon private labels have that the private over Calvin Klein’s brand positioning to that convenience play and then bring more consider the products they ultimately decide to purchase by labels at any other retailer don’t, and it’s Amazon, which hasn’t made a reputation loyal customers who like the brand back to conditioning customers to put less weight on name brands and their algorithms and how they use customer for itself as a company that treats its brand our site. Everyone talks about brand today, more emphasis on convenience and price. data in a way other brands can’t,” says partners too kindly. brand, brand, brand, and yes, it’s important, So far, Amazon’s private-label strategy has been to target the Michael Yanez, an e-commerce consultant “Look, I think the focus of this call has but it’s foolish to think that your tiny brand low-hanging fruit: batteries, baby wipes, white T-shirts. It’s owning who works with brands as they navigate been Amazon because of the marketing can win by ignoring Amazon. You win by the product categories that drive little brand loyalty, as well as the selling on Amazon. “The mistake brands initiatives that are going on at Klein,” said using it to your advantage.” D

55 DIGIDAY MARKETING | DIGIDAY 56 “Coffee makes me crazy, so I buy this Japanese green tea in bulk. Every afternoon, I’ll have that with really good chocolate or my guilty pleasure, Cheetos.”

“My social handle used to be @juliemacncheese, inspired by an old inside joke several years ago. When I started doing a lot of TV, our communications director was like, ‘OK, time to change it to something more professional.’”

OFFICE HOURS “This closet is where I keep my Fox News- approved clothes — a bunch of pinks and corals Julie Alvin, senior digital director of lifestyle that I would never wear in real life.” at Meredith BY JESSICA SCHIFFER

Photos: Catalina Kulczar

Having an office at all is a novelty for and Real Simple. Having worked at an Mac Notes app and small notebooks from “When my husband and I went to Japan Julie Alvin. She spent four years at the online publication for so long, she’s had Muji that she buys in bulk, using a different last year, we fell in love with this whisky online women’s publication, Bustle, to refamiliarize herself with print, so there one for each brand she oversees. But she brand, Nikka Coffey. Thankfully, you can get when employees worked side by side are lots of magazines and a wall dedicated hasn’t quite adjusted to the corporate it in the States.” in a Brooklyn apartment. Since she to her favorite cutouts from past issues. world’s love of the phone call, preferring to decamped for Time Inc. (now part of Outside of the in-house portfolio, she communicate face to face or online. Back- Meredith) and into her own office, she’s looks to The California Sunday Magazine to-back meetings often force her to block moved quickly to put her imprint on it. for inspiration. “It just has a really fresh off chunks of time (“fake meetings”) on her Alvin is known for her liberal, feminist aesthetic,” she says. “It’s very diverse and calendar just so she can catch up on email, positions — she’s often invited on Fox News has great reporting.” Slack, site traffic and social media. to argue with their talking heads — so her She’s made good use of the white, After living in band tees and jeans for office has tokens of female empowerment windowless space, jazzing up parts of the years, she’s also turned the volume up a throughout: a Ruth Bader Ginsburg wall with printed wallpaper from Chasing bit on her wardrobe. Now, it’s a lot of midi- pendant, Hillary Clinton pins, a hat from Paper and sprinkling a few copper lamps length dresses from Zara and Reformation, women’s-only membership club The Wing from West Elm throughout. “Thankfully, I paired with sparkly socks from COS that that reads: “Girls doing whatever the fuck sit next to the Real Simple team,” she says, peek out of her ankle boots. “I like to keep “I bought this bird at Target and just took it from my they want in 2017.” Her bookshelf boasts “because I’m not at all crafty, so one of it a little less serious,” she says. On lazier apartment to help brighten up the office. I should Carrie Brownstein, Roxane Gay and Emma their team members put up the wallpaper days, she’ll retreat to her old uniform, but name him.” Gray. for me.” throw a favorite black blazer from Helmut Alvin was brought on to bring her She doesn’t discriminate between Lang over it to add polish. The Keds she online savvy to Time Inc.’s Lifestyle arm, analog and digital when taking notes. Daily wore to death at Bustle, however, are on which includes print stalwarts like InStyle and weekly to-do lists go into both the hiatus. D

57 DIGIDAY ETC. | DIGIDAY 58 New York City-based Jeff Staple, founder of Staple Design JEFF STAPLE’S Studio, Reed Space and Staple Pigeon, shares his favorite haunts in Tokyo, a city he’s visited an estimated 100 times GUIDE TO TOKYO since launching his first business in 1997. AS TOLD TO JILL MANOFF

ISETAN ITOYA DAIKANYAMA T-SITE NARISAWA “If you’re into sneaker and street culture, you shop “Itoya is Japan’s largest stationery company, and “When I have trouble sleeping due to jet lag, I go to “I go all out for dinner. Narisawa is an amazing in Harajuku; it’s younger. The neighborhood I like there’s a multilevel store in Ginza. I love it because it’s Daikanyama T-Site, which is essentially a bookstore culinary experience; the chef really tells a story with is Ginza; it’s more upscale. I go to a multilevel store really OCD. Everything within a six-degree separation on steroids: There’s every magazine from every every course, and by the end, you feel like you were there called Isetan. It has everything you could of you and writing, they sell it. Plus, they have an country, every book, a Starbucks, an antique pen part of a symphony. It's pricey, probably $500-$600 possibly want and an nth-degree level of customer incredible restaurant there, and they grow the store, an art gallery. It’s really inspiring, and it’s open per person, without drinks. And you’ve got to make a service. I’ll get something like a pair of Visvim vegetables for it on the roof.” until maybe 4 a.m. on weekends. I go there to work or reservation months in advance.” sneakers, which are hard to find in America.” just to read with a cup of coffee.”

TSUKIJI FISH MARKET MEIJI SHRINE ATMOS KONBINI “It is the largest, oldest-functioning fish market in “Yoyogi Park is like Tokyo’s version of Central Park: a “There are thousands of sneaker shops to choose “There’s a big debate about which konbini, or Japan. They set up these tiny stalls that are like massive park right in the middle of a very congested from. I recommend Atmos, which has been around for convenience store, is better. They’re all open 24 counters with six bar stools each, and you can sit metropolitan area, Shibuya. And in the middle of the almost two decades. It has maybe a dozen locations hours, and they’re on practically every intersection there and have sushi for breakfast, with fish that was park is this beautiful, historic temple. I like to get in a and a really great curation. Every brand has a flagship corner. You can get everything from a hot dinner to pulled out of the water hours ago. I get there by 5 or little bit of culture and a little outdoors; you can kill there, but I like to go to the independent retailers. You underwear to the best magazines to hardware tools. 6 a.m.; by 7, all the fresh fish has been bought by the two birds.” get a good mix of stuff.” You can pay your bills; you can buy tickets to a show. restaurants.” I hit one for breakfast when I’m on the run: an onigiri and a mini can of coffee.”

59 DIGIDAY ETC. | DIGIDAY 60 DAY IN THE LIFE: You’re missing half of all MICAELA TV viewers if you’re only ERLANGER advertising on traditional TV. Since becoming an independent fashion stylist in 2013, New York-based Micaela Erlanger has been behind the red carpet “moments” of stars including Lupita Nyong’o and Meryl Streep. Here, she shares a day in her life during awards season. BY JILL MANOFF Get started with Connected TV today.

6:00 AM: I get up early, have a big cup of coffee 9:00 AM: Time to get ready. I’m pretty low- 10:30 AM: I arrive at my office in Flatiron, and and check the news: Vogue.com, Women’s Wear maintenance: For day, I don't wear makeup except we have our daily team meeting about current Daily. Then, I dive into email — I’m working with a mascara. And my work wardrobe is all black, projects. For the Oscars, we’re styling seven lot of the European fashion houses, so things are white and gray. Today, it’s a T-shirt by The Row, celebrities, including Streep, Nyong’o and Vanessa already piling up. I stop to exercise with my trainer, Madewell jeans, a blazer by Band of Outsiders and Taylor, who wrote “The Shape of Water.” Plus, who comes to my home in New York’s West Village. my Saint Laurent jacket. I throw on Chanel flats we’re working with Hannah John-Kamen on some and grab my Moncler puffer. upcoming appearances, there’s a shoot I’m styling, and there’s a lookbook I’m consulting on.

11:00 AM: I have back-to-back phone 12:30 PM: I head out. The first stop is Fred 1:45 PM: I pop into Oscar de la Renta to pick interviews, which isn’t normal. A couple are about Leighton to choose jewelry for Streep for the out a premiere look, then it’s off to the J. Mendel dressing for the red carpet; some are about my Oscars. My team coordinates the collection of the atelier for a special client fitting. In between, I’m book, “How to Accessorize,” which comes out in pieces. I don’t stop to eat lunch. My boyfriend has on the phone with Lanvin to make sure a fabric April. It’s all my styling tips and tricks. I’m really a catering company, so he keeps my refrigerator is arriving in time for another client's premiere proud of it. stocked with food from Comparti. For today, I just look and Dior to check on some couture for an grabbed some healthy snacks. upcoming fitting.

3:45 PM: I arrive at the Armarium office 4:45 PM: I’m back in a car. Two clients had 5:45 PM: I’m back at my office. My team downtown, where I just assumed the role of events pop up, so I call Eliza, manager of my New and I finish packing a couple clients for their fashion director. I have a quick meeting with the York office, to make sure the team has it handled. I international press tours, and then we focus on the team about plans for the weeks ahead: After the make time to run into Hugo Boss for my own fitting Oscars. Already, there are seven racks of clothes, Oscars, I’m headed to Paris Fashion Week, sitting for an event I’m hosting for them, and I post on several bookshelves filled with handbags and front row to make sure we get all the hottest looks Instagram. I like to post two to three times a day. seven full shoe racks, each 10 shelves high. for the site.

8:00 PM: Finally home. Other weeks, I’m home 9:15 PM: I draw a bubble bath and light some 11:00 PM: I’m in bed with my boyfriend. We by 7 for a meditative walk, but tonight, I start candles by Diptyque and Manolo Blahnik. Then, I either watch a show or film one of my clients is in, dinner right away. I eat a pretty simple ketogenic get into pajamas. I’m a silk pajamas girl; I have a or binge on a series. Right now, it’s “Law & Order: diet: veggies, fruit, protein. If we go out, it’s drawer full of them, and I like a set — everything SVU.” Lights out. Offseason, I get at least eight usually Waverly Inn, The Polo Bar or Le Coucou. from La Perla to J.Crew. Finally, more emails hours of sleep. This week, sleep is for wimps; it’s Sometimes, I’ll change and go to a designer’s party because we work with clients and brands based in five hours — six, tops. or fashion show afterward. California. thetradedesk.com/ctv 61 DIGIDAY ETC. | DIGIDAY 62 63 DIGIDAY ETC. | DIGIDAY 64 FINAL WORD Start a new game. BY BRIAN MORRISSEY

“Facebook doesn’t give a shit about distancing of media from Facebook is us,” the publishing executive told me. fundamentally a good thing. There was a hint of resignation in his voice, Now, media companies can return to but more the feeling of acceptance. For the slower growth tactics of yesteryear: many publishers, the word that Facebook Building strong brands with valuable would deprioritize news in the now weirdly audiences, then making money in a variety named news feed came as less of a shock of ways. None of this, of course, is easy. — Facebook has been cutting off publishers Publishing executives are still too eager to for over a year now — and more of a point the finger at platforms like Google and confirmation. Facebook, which, to be fair, are simply doing The collateral damage of Facebook’s what’s best for them, not for publishers. move will continue. The first casualty came It is far too easy to blame a rigged system in the form of LittleThings, a former pet for the atrocious user experience afforded supplies site that used its adeptness at by most websites — multiple sound-on Facebook to build an audience of 50 million autoplay video ads, clickbait content in just three years. It was an overnight recommendation widgets, persistent success story, and like most overnight retargeting — instead of doing the difficult success stories, LittleThings was too good to but necessary work of constructing a be true. The company shut down after it saw business model that is both sustainable and Facebook referral traffic drop by 75 percent. treats an audiences with respect. Unless Many Facebook-addicted publishers are that’s fixed, people will wonder what’s putting up a stiff upper lip, pointing to so bad about a duopoly if it means fewer progress made in diversification to new annoying ads, slow-loading pages and opportunities like video programming on sudden redirects to app stores. the mushrooming group of over-the-top What’s likely in the interim is publishers players. But LittleThings won’t be the last rushing to reader revenue as the newest flimsy media brand to fall by the wayside. silver bullet. To be clear, direct reader There’s a parlor game in picking out the revenue is a big part of the sustainability of most vulnerable. many publishers. But just like Facebook or Yet for many media companies, this the pivot to video, subscriptions are not the reckoning was not only unsurprising but answer for everyone. Many will try and fail. inevitable. Facebook has by now established And it’s no wonder because asking people its modus operandi. It built up the social to pay is exposing publishers to the reality gaming industry only to wipe it out. It fueled that they are often middling players in a clickbait until it took a weed wacker to sea of sameness. Those that succeed will those most adept at the dark arts of luring nail the basics of building strong brands clicks from those simply too curious to not — and executing on diversified audience know what happens next. Bloomberg Media and revenue models. As Warren Buffett CEO Justin Smith, who has long warned once said, “You only learn who has been of dependence on Facebook, told me the swimming naked when the tide goes out.” D A fiercly independent marketing agency that creates purpose driven ideas that work. NYC // LA // BALT 65 DIGIDAY imre.works/digiday