Hi! Welcome to the Insider Advertising daily for August 13. I’m Lauren Johnson, a senior advertising reporter at Business Insider. Subscribe here to get this newsletter in your inbox every weekday. Send me feedback or tips at [email protected]
Today’s news: WarnerMedia’s new power players, where Facebook boycott ad dollars went, and Publicis Groupe cuts 2020 raises and promotions.
Meet the 7 WarnerMedia execs who gained power during its massive leadership shakeup and business restructuring
- Last week, new WarnerMedia CEO Jason Kilar announced a major restructure for the media company, pushing out three key executives, and elevating others in expanding divisions like programming for HBO Max.
- Ashley Rodriguez identified the seven executives gaining the most power, including Andy Forssell, Gerhard Zeiler, and Ann Sarnoff.
- At least 800 people are expected to be laid off, reported Variety.
An agency that handles $US1.5 billion in ad spend breaks down where money from the Facebook boycott went
- In the wake of the month-long Facebook boycott ending, performance marketing agency Tinuiti detailed how clients spent the money that they would have spent on Facebook.
- While only 26% of Tinuiti’s clients paused their Facebook ad spend in July, 40% of those advertisers spent the money on paid search like Google, while 24% put it on other social platforms like Pinterest and Snap. Another 36% of advertisers did not reallocate their ad budgets.
- Of the advertisers that paused their Facebook spending in July, 76% reactivated it in August while 24% stayed off the platform.
Memo from Publicis Groupe explains why it froze raises for all 20,000 Sapient employees despite beating its financial forecast
- Publicis Sapient, the consulting division within ad holding company giant Publicis Groupe, said that it would cancel all raises and promotions for the rest of 2020, according to a memo obtained by Patrick Coffee.
- The memo cited challenges tied to the pandemic. Sapient’s second-quarter revenue dipped 13% year-over-year.
- “This was not an easy decision to make,” wrote Kameshwari Rao, interim chief talent officer, in the memo. “Our teams have been doing great work during difficult circumstances and although our business beat the reduced forecasts we made earlier in the pandemic, growth declined in Q2. Further, we know that COVID’s economic impact will be felt the rest of this year and beyond.”
More stories we’re reading:
- Sumner Redstone, the media mogul who built the ViacomCBS empire, is dead at 97 (Business Insider)
- PR giants like Edelman, BCW, and Weber Shandwick are seeing a windfall as corporations grapple with Black Lives Matter responses (Business Insider)
- SoulCycle’s ex-CEO said ‘paternity leave is for pussies,’ a new lawsuit filed by an exec who was fired 32 days after giving birth alleges (Business Insider)
- ‘A shady move’: Apple News+ Safari change automatically redirecting traffic to itself infuriates publishers(Digiday)
- Trump’s campaign ads run on Chinese state media YouTube channel (Bloomberg)
- WarnerMedia opens up HBO Max inventory to entire marketplace (Ad Age)
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