Hollywood talent firms encroach on ad agencies, Amazon’s plans to disrupt gaming, and how much a YouTube influencer makes from 1 million views

Netflix’s team leading its work with brands is taking shape. Netflix


Welcome to the Advertising and Media Insider newsletter, where we round up interesting stories we’ve covered over the past week, ICYMI. I’m Tanya Dua, a senior advertising reporter filling in for Lucia this week. If you got this email forwarded, sign up for your own here. Send tips or feedback to me at [email protected]

First up, if you think consulting firms are the only interlopers that ad agencies should be worrying about, think again. Hollywood talent agencies and companies with roots in talent management are increasingly trying to carve a piece out of the $US240-billion US advertising pie – something that I started wondering about after reporting on the unconventional ways P&G is trying to market to consumers.

Big brands like Delta, P&G and Under Armour are increasingly hiring Hollywood talent agencies like CAA, Endeavour and UTA for marketing – posing yet another threat to traditional ad agencies. Behind the news:

  • A big reason for talent agencies’ new place in advertising is the increased fragmentation of media and consumer attention, which is forcing brands to seek out new ways of advertising, such as on Netflix and Hulu.
  • The talent agency pitch is that by being at the epicentre of entertainment and creativity, they are more plugged in than Madison Avenue is and help drive popular culture.
  • But it’s not the first time that talent agencies have made a play for advertising dollars (remember Coca-Cola and CAA’s marriage from back in the ’90s?), so the jury’s still out on how viable a competitor they will be to agencies.

Speaking of disruptors, my colleague Lauren Johnson got the scoop that Amazon is continuing to challenge the duopoly’s stronghold in advertising, this time by hiring for a new “stealth advertising innovation” team specializing in gaming advertising.

Amazon wants to disrupt the $US100 billion gaming industry, so it’s hiring for a ‘stealth advertising’ engineering team.

  • According to two new job postings on LinkedIn, Amazon is hiring for gaming advertising specialists who will get “deep” access to Amazon’s trove of purchase data to build out programmatic tools for advertisers.
  • This suggests that Amazon may be making advertising – particularly programmatic advertising – a bigger priority, say some e-commerce agency sources.

Elsewhere, our media fellow Amanda Perelli chatted with YouTube influencer Shelby Church, who detailed how much money she typically makes on a video with 1 million views.

YouTube star Shelby Church breaks down how much money a video with 1 million views makes her

  • Church, who has 1.2 million subscribers, told Business Insider that she makes between $US2,000 and $US5,000 on videos with about 1 million views.
  • She does it through YouTube’s Partner Program, which lets creators earn money by monetizing their channel with video ads.
  • But how much money these ads generate depend on factors like a video’s watch time, length, and demographics.

And finally, Lucia had the inside scoop on how media conglomerate Group Nine Media is shaking up its sales leadership as it seeks bigger budgets from large ad spenders that span custom content, sponsorships, and the like.

Group Nine Media is shaking up its sales leadership to jumpstart its revenue. More details:

  • Group Nine Media CRO Todd Anderman is leaving after more than six years at the company.
  • He’s being replaced by a triumvirate of executives with agency and digital backgrounds who will try to jumpstart the company’s revenue, including Rachel Baumgarten, EVP of marketing; Kavata Mbondo, EVP of business operations; and Adam Shlachter, chief client officer.
  • Group Nine has been trying to diversify its revenue,particularly into e-commerce.

Here are other great stories from media, marketing, and advertising. (You can read most of the articles here by subscribing to BI Prime; use promo code AD2PRIME2018 for a free month.)

‘You’re supposed to be at arm’s length’: Some ad agencies see potential conflicts of interest as their competitors spend billions to acquire data

145-year-old home security company ADT is trying to ditch its ‘dinosaur’ image by taking its media-buying in-house

While Facebook takes a beating, its Stories feature is looking like an under-the-radar success

Direct-to-consumer brands like Casper, FabFitFun, and Peloton are turning to scientific testing to find out which ads are a waste of money

Anheuser-Busch’s CMO on what many companies get wrong when it comes to being purpose-driven

The CEO of a startup that helps marketers pull data out of walled gardens like Amazon explains why he just sold part of his business to Cannes Lions’ parent company

There’s a deepening divide among Google workers: those who get free meals and those who don’t