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Amazon‘s profits might have fallen for the first time in two years, but its advertising revenue outshone its overall sales growth in the most recent quarter – showing brands are taking it seriously as a challenger to the Google-Facebook duopoly.

During its most recent earnings call on Thursday (24 October), the e-commerce giant revealed that sales were up, but profit had slumped year-on-year for the first time since mid-2017.

The business reported a third-quarter profit of $2.1bn, a drop of 28% on the previous year, which was put down to investments in shipping and warehouses to help its core retail business maintain its edge.

Over the past three months, the businesses has garnered $70bn in revenues; up from 24% on on the same quarter last year.

Advertising revenue growth was a bright spot in the company’s results, with ‘other revenue’ (which principally refers to Amazon’s ad business) hitting $3bn over the three months to the end of September, up 45% on the same quarter last year.

Driving ‘relevancy’ and looking beyond search

The firm’s chief financial officer Brian Olsavsky said it was “very happy” with its ad sales progress and that it was now focused on helping brands deliver more targeted ads within the Amazon ecosystem.

“We continue to focus on advancing advertising experiences there, [making them] helpful for customers and helping them to see new products. We want to empower our businesses to find attracting and engage these customers and it’s increasingly popular with vendor sellers and third-party advertisers,” he added.

“It’s still early and what we’re focused on really at this point is relevancy, making sure that the ads are relevant to our customers, helpful to our customers, and to do that, we use machine learning and that’s helping us to drive better, better and better relevancy.”

Earlier this month it was reported that Amazon was eating into Google’s search dominance, with eMarketer forecasting that Amazon’s share is expected to grow to 15.9% by 2021, with Google’s expected to contract to 70.5%.

However, Dave Fildes, Amazon’s director of investor relations said that increased adoption among brands was pushing the company to expand its video and OTT offerings.

Pointing to the ad-supported movie streaming service it recently launched on IMDb and live sporting deals, Fildes said it planned to ad more inventory to the latter and across its Fire TV apps via Amazon Publisher Services integrations.

“[We’re also looking at] streamlining access for third-party apps and really just making it easier for advertisers to manage their campaigns and provide better results,” he continued.

Aaron Goldman, chief marketing officer, at self-service ad platform 4C Insights highlighted how quickly Amazon is ramping up its ad platform.

“It has the unique ability to close the loop from purchase intent to sales and allow brands use that data for ad targeting and measurement,” he explained, saying clients using 4C’s platform had upped their spend by 250% in the past year.

Feature Image Credit: Advertising revenue growth was a bright spot in the company’s results / Amazon

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Twitter execs have outlined how they plan to bolster its ad business after missing Q3 revenue targets. It blamed the weak growth on bugs affecting its mobile product, which further hindered ad sales already weakened by the “seasonality” of a slow summer.

Revenues for Q3 were up 9% year-on-year to $824m. The US reported a rise of 10% to $465m, while international growth was slower at 7%, totalling $358m.

Sales fell short of the expected $874m. Growth slowed substantially since Q3 2018, when sales grew 32% year-on-year.

The results, which sent shared in the tech firm tumbling 20%, were explained by advertising “headwinds” driven predominantly by bugs in the company’s targeting system. In a letter to shareholders, Twitter explained the issue had affected its ability to target ads and share data with its measurement and ad partners.

The bugs reduced year-over-year revenue growth by at least 3% in Q3, Twitter wrote in a letter to shareholders.

Ned Segal, Twitter’s chief financial officer, explained the glitches in the legacy mobile application promotion (MAP) product meant information regarding users’ device settings was shared with Twitter for targeting purposes, even if they had asked it not to be.

“When we discovered that … we turned off the setting,” he said on an earnings call this morning (24 October). “That has a negative impact on revenue because it’s one less input you’ve got when you’re figuring out what ads to show people.”

Additionally, a bug meant Twitter was passing on data to measurement companies from users who explicitly asked not to be monitored in such a fashion.

“We stopped doing that, and although we are working on remediation, there isn’t remediation yet in place,” said Segal. “So, the effects of that will continue into Q4.”

Twitter recently faced criticism after it reported some users’ private email addresses and phone numbers had been exposed to its advertisers in a breach of its targeting system.

Aside from the technical issues, organic advertiser interest in Twitter dropped in the quarter, too. “Greater-than-expected” seasonality issues began in July and continued into August, due to what the company dubbed a “relatively lighter slate of big events” taking place when compared to the same period in 2018.

The sales slowdown occurred as Twitter continued to push its offer to advertisers on its global ‘#StartWithThem’ roadshow. The platform has a goal to double its ad business by 2020 and become advertisers’ most recommended partner.

Today, Segal outlined the company’s immediate and long term plans to bring more advertiser dollars into the business and appease Wall Street qualms.

He first stated the company will continue to actively market its platform to big advertisers. By way of example, he observed that while 38 of this year’s Super Bowl advertisers were on the social network at the same time as the game, there were eight “to whom we still need to make the case”.

“[We’re also] continuing to improve relevance, to continue to come out with better ad formats and improve versions of our existing ad formats,” he said.

He added Twitter could do a better job in monetizing smaller advertisers – an area it has not “prioritized” in the past.

“We’ve got to do the engineering work and make the case to them better than we are today, and right now we’re chosen to prioritize other things first,” he said.

Finally, he noted the Twitter ads experience could also be improved through better educating clients and working more closely with advertisers on their paid-for content.

“There’s also opportunity without selling one more ad to put better copy in the ads that exist today,” he said. “And we still have half of our video ads being served at longer than 15 seconds. As you can imagine on a service like Twitter, the completion rates for video ads that are six seconds are much better.

“That, along with continuing to improve relevance, better formats and moving down the funnel in terms of the types of advertising that’s available … are all things that ought to help us.”

Feature Image Credit: Twitter launched a consumer campaign in recent months / Jonathan Hokklo

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Sourced from The Drum

By Jillian Kramer.

Before you post, ask yourself three essential questions.

Social media isn’t just a way to pass idle time (or to find inspiration for your next decorating project). It’s a valuable tool to tell your business’ story and build your brand. As Reena Goodwin, founder and director of Facteur PR, explains, social media gives business owners a direct line to current and potential customers. “By creating and sharing high-quality content and stories, social media opens a door to share a brand’s story on a deeper and more direct level,” Goodwin says. “When a brand shares its story on social media, that story helps build trust. And because a brand’s reputation is ultimately built on trust, it’s an important medium for any brand to harness.”

young man photographing French breakfast with croissants on the table in sidewalk cafe with smartphone in Paris, France
Alexander Spatari / Getty Images

What’s more, social media can be a free and useful resource for your business. “Its affordability is attractive to business owners,” says Goodwin. “The cost to launch a Facebook, Pinterest, or Instagram account is free, and your reach is dependent on the amount of resources you pour into it. Furthermore, the rich audience data is so helpful for businesses. By analyzing your followers’ behaviors, demographics, and interests, coupled with utilizing the various built-in survey tools, you can start to use the data to drill down audience personas, which can be very helpful when it comes to targeting your ideal client or customer as well as serving the ones you currently have.”

Here’s how to harness the power of social media to tell your story as well as build your brand.

Have a plan.

Goodwin advises against posting without a plan in place. A social media plan “makes sure that we are supporting the vision of our brand and helps manage expectations and resources,” says Goodwin. “It also ensures that we maximize our time strategizing upfront so we can devote our energies to executing our plan thereafter. A lot of social media management is spent reacting; with a plan in place in advance, we can be sure to allocate time and energy to the things that will ultimately help build our brand,” such as developing incentive opportunities and filming videos.

Before they post to social media, Natalie Denyse, owner of In Good Company PR, tells clients to ask themselves: “Why does this post matter to my audience? Does this photo show more than just a pretty scene? And, how is this post, both photo and caption, serving my community?” she says. “Feeling confident in those few areas will help crystalize the intention behind your voice.”

Respond to feedback.

Comments and messages left on your social media are opportunities to build your brand’s reputation, says Kathleen Reidenbach, chief commercial officer of Kimpton Hotels & Restaurants. When you respond in real-time—or as quickly as possible—shows excellent customer service, and gives you unique opportunities to interact with potential and current customers, Reidenbach explains.

For example, when Reidenbach found out through social media that a bride staying at a Kimpton Hotel property for her honeymoon had been stood up at her wedding, “the hotel quickly switched her room around to be more of a ‘we’re really sorry,’ party with chocolate, wine, and comfort food. It made her smile and she [told us] it made such an awful situation that much better and said she had an amazing solo honeymoon with us. That’s something that felt right to the hotel team and they acted in the moment, making for an incredible save-the-day story.”

Share high-quality content.

“Thanks to the instantaneous nature of social media, it’s widely believed that we must be posting content constantly,” says Goodwin. But that’s not strictly true. “By sacrificing the quality of content for the sake of speed, you could also be sacrificing the first impression your brand has on a potential customer,” she warns. High-quality content tells a better brand story, even if it means you post less often. “High-quality content is associated with a high-quality product or service,” Goodwin points out, “so it’s important to invest in content creation like professional photoshoots. I love batch-creating content to save time and money. You can hire a photographer on a quarterly basis to take updated photos for social media, or invest in a nice camera and snap your own.”

Show up on Stories.

Did you know that engagement on Instagram Stories is higher than on its newsfeed? It is—and that’s one reason why it’s essential to post regularly on Stories. “Stories is ideal for building your brand because in contrast to content on the newsfeed, it’s a space for less polished and more down-to-earth storytelling,” Goodwin explains. In fact, Denyse recommends to her clients that build their brands by showing the imperfect reality of being in business. “Real and raw video footage of brands actually building their business will continue to trump perfectly styled photos,” she says. “Don’t be afraid to get candid and show authentic moments of your creative process.

By Jillian Kramer

Sourced from martha steward

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Most accounts on Weibo and WeChat get the majority (68%) of their reads from pushing content to existing followers.

The remaining 32% of reads mostly come from sharing on moments (10%), in chats (3%), history (4%) and others (11%). “Others” is typically desktop usage or non-official types of promotion by sharing the direct link to the article.

Content should be shared on Weibo 2-4 times per day and WeChat only when there is great content to share, according to a research done by KAWO.

WeChat and Weibo have suffered with platforms like Douyin and Xiaohongshu on the rise. The read rates are down significantly, but seem to have stabilised and even picked up a little in the case of service accounts.

The Top Stories have grown significantly since it was launched in December 2018, but is still quite small for most accounts. Accounts with less than 2000 followers have seen as much as 13% of their reads from Top Stories.

Furthermore, the average subscription account doesn’t seem to be held back by the limit of 1 post per day. Meanwhile service accounts send a higher number of articles per push presumably because they’re only able to contact users 4 times per month.

According to KAWO CEO Alex Duncan, follower growth on Subscription accounts has fallen quite a lot over the past 3 years, but seems to have been helped a little by the changes

“WeChat made to the Subscription folder in June 2018. Although the growth rate has slowed, they are now also losing less followers too presumably because it’s less annoying for users to scroll past an article they don’t like rather than open each subscription account one by one,” he added.

Usage in the week before and the week after Chinese New Year is higher with users presumably spending more time on social media.

KAWO spent 6 weeks analyzing 20 million data points to answer every marketer’s questions on WeChat and Weibo.

The Drum recently spoke with Akae Wang, an executive creative director in the corporate marketing and public relations department at Tencent to find out how Tencent brought the moon closer to WeChat users during Mid-Autumn Festival.

Feature Image Credit: Weibo and WeChat get 68% of their reads from pushing content to existing followers

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A few years ago I was working on the Coffee vs Gangs content series. After a successful launch, which saw Kenco help young Hondurans out of gangs by training them as coffee farmers, l found myself in an all agency meeting. After some initial self-congratulatory backslapping, discussion of the ‘raw authenticity’ led to a new addition to the group confidently chiming in.

‘I loved the first series and was wondering if it might be possible to see some of the kids from the gangs drinking Kenco’.

Awkward pause.

We’ll come back to that.

Fast-forward a few years to The Drum Content Awards, of which I recently had the pleasure of sitting on the judging panel. To kick off the day all the judges took part in an ice breaker, where we were asked to share our thoughts on ‘authenticity’ in content.

A question like this is catnip for content professionals. And the 25 of us, all released from our respective agencies formed a warm cosy echo chamber. One which made us feel reassured that we are all saying the same things to our clients and none of us are doing it wrong.

I listened. But I contributed nothing. Because the only thought I had ringing around my head was ‘isn’t all this just bollocks?’ Which wouldn’t have gone down well at all.

That’s not to say that my fellow judges didn’t engage in an intelligent and considered discussion. But this wasn’t about them. It was about the concept of ‘authenticity’ itself.

Before I go on, I dare any current creative or content specialist to review their proposals, treatments and pitches delivered in the last three months and not cringe at overuse bordering on abuse of the word.

The truth is, it’s become a dog whistle we blow on in front of our colleagues and clients to try and sell ideas without thinking about it. But when you actually think about it, it means very little on the outside world.

When was the last time anyone saw a piece of content and said ‘I love it because of its authenticity’?

Never.

Because no one ever says that.

Alongside ‘disruptive’, ‘authentic’ has become a nonsense husk of a word that means nothing and everything to us in our comfy communications and marketing circles.

That’s not to say that Kaepernick or Patagonia Black Friday didn’t come from a truly brilliant place. In the same way that featuring a bunch of troubled kids from gangs drinking Kenco obviously comes from a hideous one. But let’s not over inflate the sentiment behind this too much. Or to bastardise the words of Scroobius Pip –

Nike. Just a brand

Patagonia. Just a brand

Kenco. Just a brand

When a consumer engages with any form of content made by a brand or business an unspoken contract is entered into. ‘I know you are trying to sell me something or make me like you so I eventually buy something. But I’m willing to let you do that in exchange for getting something back’.

And this is far more authentic than authenticity. Because authenticity may be dead, but the authentic value exchange is very much alive.

I am willing to engage with your marketing, communication or advertising in exchange for you entertaining me. Making me laugh. Teaching me something new. Helping me with utility that enables me to do my job better.

Authentic value exchange. Much better. Not hiding behind the fact that something is authentic just for the sake of it when we all know what’s going on. Consumers are not stupid.

And that’s what was great about judging The Drum Content Awards. To see so many examples of exceptional work that creates a compelling value exchange between brand and consumer.

Examples that used comedy in exchange for brand trust around online security (Santander), that answered fuel economy questions in exchange for consideration of an electric alternative (Nissan Leaf) and that showed future parents what having children really looks like to build market share of their baby wipe brand (WaterWipes).

And by the way, in case you were interested.

We never featured any gang member drinking Kenco.

Now that’s authentic.

Feature Image Credit: ‘Who actually loves authentic content?’ Brands need to understand their value exchange

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Ryan Reddick, creative director, Edelman is a judge for The Drum Content Awards 2019. A full list of the finalists can be found here. The awards ceremony will take place in London on October 30 at The Marriot Grosvenor Square Hotel, tickets can be purchased now.

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Australian publishers Seven West Media, Network 10, SBS, Foxtel Media, Pedestrian Group and Daily Mail have joined forces to launch a programmatic ‘Editorial Video Marketplace’.

The new marketplace, run by Telaria, aims to simplify buyers’ access to this professionally produced premium content with daytime audience reach and scale, as per the official statement.

Luke Smith, head of programmatic sales and audiences at Seven West Media said: “The demand from advertisers has been clear – that there is a need for quality video delivering high viewability and completion rates within brand safe editorial environments at scale.

“It is important that the premium value and impact of editorial video is able to differentiate itself from other forms of short-form like social video. This marketplace, available programmatically, will be a means to make that easily accessible for buyers and advertisers at scale,”

Flaminia Sapori, head of partnerships at media agency Cadreon said: “It’s encouraging to finally start seeing publishers working collaboratively to provide alternative independent options in this space — creating ease of access, and most importantly, a new narrative for editorial video, giving it the credit it deserves, and perhaps start influencing more social budgets being redirected to new premium ecosystems.”

The news comes after the Australian Competition and Consumer Commission (ACCC) released its final digital platforms inquiry report in July calling on the government to act against the tech giants.

ACCC had raised concerns, at the starting of the year, about the market power of Facebook and Google including the companies impact on Australian businesses, particularly their ability to monetize content, as well as outlined concerns about the extent that consumers data is collected and used by companies to target advertising.

Feature Image Credit:The marketplace aims to simplify buyers’ access to this professionally produced premium content.

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Media veteran Mike Soutar, a former editor of FHM and co-founder of Shortlist Media, has been appointed chief executive of The Evening Standard.

The news brand, edited by former chancellor George Osborne, has suffered a turbulent time financially and has brought Soutar aboard to course correct.

Having co-founded Shortlist magazine (now defunct but survived by sister title Stylist), Soutar brings expertise in managing a print product distributed freely in cities, which is the model deployed by The Standard. He starts in the newly created role on 7 October.

Evgeny Lebedev, owner of the Evening Standard, said: “We are delighted that Mike has joined the Evening Standard at this important time for the company and wider industry and are confident that his vast media experience and leadership skills will make a great success of this new role.”

Soutar added: “I’ve been a regular reader of the Evening Standard since the late 1980s when I first moved to London. I look forward to working with the talented team to grow an even stronger business that will continue to play a central role in shaping and reporting the cultural and political development of the greatest city in the world.”

The title recently made editorial cuts and spoke of knitting digital and print teams closer.

Soutar, who has also served as a director at Ti Media and editor of Smash Hits, previously talked The Drum through the evolution of lad culture, having seen how profitable it was at the height of his FHM reign.

Feature Image Credit: Mike Soutar, media exec, featuring on BBC show The Apprentice

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Sourced from The Drum

By Bill Murphy Jr.

Good news all around.

Imagine you run a company, and I say I have some good news. Which would you be happier to hear?

  • Learning that customers think you have a valuable brand.
  • Learning that Millennial customers particuarly love your brand.

If you’re Amazon, Apple or Nike, it’s actually a trick question. Because recently, all three brands got some fantastic news on both fronts. Here’s the background.

Earlier this year, WPP research agency Kanta revealed the latest update to its annual “BrandZ Global Top 100” list of the world’s brands, ranked by monetary value.

I find this fascinating — the idea you could break out the brand value, and assign it a value as if it were any other asset. This year, Amazon got the best news, as the agency thinks has a brand worth $315.5 billion.

That was enough for it to leapfrog over Apple and Google, whose brands were valued at $309.5 billion and $309 billion respectively.

But now, these companies have some encouraging news about a subset of their customers from another source: a marketing firm that asks Millennials about their favorite brands each year.

And while the brand value might provide a snapshot in time, I think the affinity younger customers have for a brand might be better news — a promise of greater value in the future.

Here are the top 10 brands for millennials according to Moosylvania, and what they might mean for the companies involved:

1.    Amazon

Amazon is just the big winner across the board. It was at the top of the BrandZ list, and now it’s jumped form number 3 on last year’s Moosylvania list to the top slot. In fact, its grocery brand, Whole Foods, separately tied for 82nd on the list as far as Millennial affinity is concerned.

2.    Apple

Apple was number 2 on both the brand value survey and the Moosylvania list. The difference was slight, relatively speaking, on the overall brand survey — $6 billion, but that’s less than 2 percent below Amazon given that the brands are are so valuable to begin with.

3.    Nike

Interesting and promising jump for Nike, which was the 21st most-valuable brand on WPP’s list (with an estimated brand value of $47.360 billion). It corresponds with Nike’s all-in backing of controversial ex-NFL quarterback Colin Kaepernick.

4.    Walmart

Another positive sign for the future for Walmart, which ranked #32 on the overall brand value list earlier this year. It would seem any brand that ranks higher on preference lists for younger consumers than overall should take that as a good thing.

5.    Target

Target doesn’t even seem to listed in the BrandZ Global Top 100, which might be explainable by the fact that it’s a worldwide ranking, while Target at this point is basically an American brand. But good news for the future: it’s number 5 on this Millennials list.

6.    Samsung

Samsung was only ranked 38 in terms of value on the BrandZ Global list and 10th among technology companies. But it comes in at number-6 here. The big difference, one would think, is higher Millennial adoption of Samsung’s phones.

7.    Google

If I were a brand, and I were to worry, I would be Google. It’s still a gargantuan company, of course, and it has some interesting plans to take over more parts of the world. But setting aside Target, it has the biggest negative difference between overall brand value according to Brand Z, and ranking on this list of younger customers.

8.    Adidas

Another brand with an amazing sign for the future if these rankings have value: Adidas ranked the 100th most-valuable brand according to Brand Z, but here it is at number eight among younger customers’ favorites.

9 and 10.    Coke and Pepsi

Rather than write the same observations about similar brands Coke and Pepsi twice, we’ll combine them here. These brands ranked 9th and 10th as Millennial favorites from this survey. (Coca-Cola was also number 14 on the Brand Z survey.)

It’s even that even as younger consumers eschew sugar water and sodas, the brands behind those products retain affinity from this cohort.

You can see the entire list here. (opens as .pdf). Let us know in the comments what brands surprised you on the list.

Feature Image Credit: Getty Images

By Bill Murphy Jr.

Sourced from Inc.

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As high fat and sugar drinks fall out of favour, PepsiCo UK is banking on premium and health-conscious consumers to drive demand for healthier options on the market.

With investors increasingly reluctant to commit to soft drink and energy stocks, The Drum spoke with PepsiCo UK’s top marketer to learn why it is scaling its sugar-free options in order to diversify their portfolios (or protect their market share).

“The big growth that we’ve observed across our beverage brands has been around no sugar” explained Natalie Redford, marketing director of PepsiCo UK. “We’re really unlocking what that means.” This shift is being seen around the globe.

“I think it’s the new norm,” Redford said. “Guilt-free, but not compromising. It’s proven really successful for us in the UK.”

And while the Advertising Standards Authority (ASA) ups its focus on cutting down high fat, salt, and sugar (HFSS) advertising, Redford said PepsiCo UK has responded to Government consultation relating to further advertising restrictions for products high in fat, salt and sugar.

“The great thing about the beverages and brands that I look after in my portfolio, and the ones that we advertise are no-sugar beverages that fall outside of the HFSS category,” Redford said.

Of all carbonated brands included in her UK portfolio, Pepsi Max tops the sugar-free market for cola, and 7up Free leads the lemon and lime.

PepsiCo UK is channelling this healthier alternative approach through its advertising.

In a first of its kind event for the 7up Free brand, this weekend, PepsiCo UK has launched a pop-up shop to commemorate the return of its chilled-out 90s mascot, Fido Dido.

“We wanted to use the ‘free’ in 7up Free to mean more than just no sugar,” Redford said. “We wanted to use the free to make a more ’emotional connection’ with our customers.”

With this thought in mind, Fido Dido House is an ‘anti-pop-up.’ While people normally ‘do do do,’ PepsiCo UK created an experience that allowed people to opt-out of the frenzy of hectic life, to feel free to just ‘be.’

Premiumisation

It claimed consumers are demanding more premium products; PepsiCo UK is increasing investment in this space.

In 2017, PepsiCo first launched Lifewtr ​- a premium water bottle brand – in North America in a bid to rival Coca-Cola’s Jennifer Aniston-endorsed Smartwater.

Serving as a canvas to showcase emerging artists’ work, the brand caters to the need for healthier alternatives to carbonated, sugary drinks, while supporting arts and culture. Now, Lifewtr has launched in the UK market as Arto Lifewtr.

Redford spoke how “premiumisation is definitely a trend that [PepsiCo] is going exercise more of in the next five years and it’s happening at every level.”

She puts it down to the breadth and depth as a company that means PepsiCo can play across those segments and foresees this will be a general direction for the brand as it steps out from the more mainstream drinks industry.

“We’re thinking how our brand can be served in a more premium way,” Redford detailed. “Whether that be a premium experience or a premium product.”

While moving towards healthier options is undoubtedly a strategic move for PepsiCo, it isn’t always an easy one. It’s main competitor Coca-Cola has to axe its Life brand, after-sales slumped in the UK, whereby the product accounted for less than 1% of its trademark sales.

Feature Image Credit: PepsiCo

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Prominent UK journalist Carole Cadwalladr, who led the reporting on Facebook’s Cambridge Analytica data scandal in 2018, has cautioned the advertising industry that it has a collective responsibility to tackle the issue of data misuse.

Speaking during an unscheduled event at Cannes Lions last week (20 June), the reporter called out the advertising ecosystem for its role in funding the platforms she accuses of undermining democracy – including Facebook – as well as a perceived lack of action in tackling the issue head-on.

“It’s really funny being here in the heart of the ad industry and seeing the yachts, the money and the beach clubs – while its central, central role in what’s going on here is being ignored,” she said.

Accusing the adtech yachts parked in Le Viex Port of “monetising a total surveillance apparatus” that was “exploiting [people] in invisible ways,” Cadwalladr said the lack of discussion around the issue on Cannes Lions’ main stage was “depressing”.

“In terms of responsibility, there’s something really key about Cannes Lions and the ad industry’s involvement in this,” she explained. “This is where the money is coming from. It is kind of depressing that there’s not a single talk happening in this entire week [about data misuse] with money swishing down through the streets.”

While there were talks hosted in the Cannes Palais around data and marketing technology, there were none with a specific focus on data misuse or ethics.

Cadwalladr said: “I know that individuals here are really troubled by what’s going on but as a collective industry level, it just seems to be that it’s being swept under the carpet.”

The Guardian and Observer journalist, who has been fiercely critical of Facebook, also called out chief operating officer Sheryl Sandberg for attending the festival but failing to “give answers to MPs in parliament” about Cambridge Analytica.

“As far as I’m concerned, Facebook is a foreign company which represents a national security threat and it shouldn’t be anywhere near our elections,” she said.

Sandberg appeared on the main stage on the Wednesday of Cannes where she simply said it needed to be “clearer” about the way it uses data. She was also invited to speak at WPP’s Beach event where, in conversation with chief executive Mark Read, she admitted that Facebook had to “earn back” trust.

Hacking Nix’s Cannes appearance

In one of the most controversial events at Cannes, former Cambridge Analytica executive Alexander Nix had been scheduled to appear on the main stage on Thursday (20 June).

The headline event was billed as his first speaking appearance since the firm sunk into administration after allegedly harvesting Facebook user data to influence the outcome of the 2016 US presidential race.

However, Nix pulled out the day before he was due to appear following criticism from various corners of the industry – including one ad director who penned an anonymous letter to organisers, describing the inclusion of the exec on the programme as a “monumental act of self-harm.”

His withdrawal also followed on from Cadwalladr announcing she was to host her own event during the festival.

Gillian Tett, The Financial Times’ editorial board chair and US editor at large, had been due to chair the discussion with Nix on “the morality of data” but instead found herself hosting Cadwalladr’s ‘Great Hack’ event with BBC journalist Jamie Bartlett in which they screened a documentary taking a deeper look into the Cambridge Analytica data scandal.

Tett said she had hoped her conversation with Nix was going to be a way to focus the topic of data misuse that was lacking throughout the festival, and get answers to some of the “bigger, more existential” questions.

She detailed how Nix had been “on and off” and “back and forth” with her in the weeks before Cannes Lions, finally withdrawing from the appearance.

“I’m not sure as to why he pulled out – you’d have to ask him,” she asserted. “We’ve been up and down and round the blocks on that one, he’s been cross with me, then not cross with me and there’s stuff I’ve written he doesn’t like.”

Discussing the practical ways in which the ad industry could help ensure people got real value in handing their data over to advertisers, Bartlett – who covered the use of data and tech in the 2016 elections – said GDPR was too reliant on consumers issuing companies with requests.

“People need to be aware of what they’re trading and what they’re getting back in return. At the moment it’s very one-sided and not very informed,” he said.

“People have no idea, they give away their data for a good Google search result or product recommendation, but they don’t know what the scale of that trade is because they don’t see what’s on the other side of it and they don’t fully understand who is going to misuse it in future.”

Bartlett said he wanted people to make informed choices about when they give their data away and for it to be as easy as possible for them to get it back.

He suggested that the advertising industry had the power to build the technology that could allow people to do just that – bundling up consumer data and repackaging it in a way that it could be sold, with both parties getting a share of the profit.

“We need the private sector to incentivise people to make money out of their own data. You can’t do it on your own, it’s not valuable but it is if you do it collectively. It will take decades for that to happen, the culture needs to change.”

As well as the Nix controversy, Cannes Lions 2019 was disrupted by protesters from climate change activist group Extinction Rebellion, who crashed spots like the Palais and Facebook beach, urging the ad industry to act on the climate and ecological emergency facing the world.

With a heavy theme of brand purpose and business for good running throughout the week, the lack of interest from ad execs in supporting the group’s mission has been lamented as “hypocrisy” by Extinction Rebellion’s team and other industry commentators.

Feature Image Credit: Cadwalladr called out the advertising ecosystem for its role in funding the platforms she accuses of undermining democracy / TED/YouTube

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Sourced from The Drum