Pattern co-founders Nick Ling and Emmett Shine
Hello,
Welcome to the Advertising and Media Insider newsletter. First, a PSA: We’re publishing our first list of rising CMOs later this summer, and we want your ideas. Read the criteria and how to make a nomination by August 15 here.
On to the news: We’re seeing the rise of direct brands impact the marketing and advertising world in new ways. For one:
Ad agencies don’t want to just help bring direct brands to market anymore. One, Gin Lane, the agency behind direct-to-consumer upstarts Harry’s and Hims, is relaunching itself as a company called Pattern that will make DTC brands itself. The competition’s fierce, but Pattern’s founders told senior reporter Tanya Dua that they believe with 10 years of experience, they know what they’re doing.
DTC brands are also attracting investor fever. Consumer brands have raised more than $3 billion since 2012, about half of it raised in 2018 alone, according to CB Insights data cited by Digiday. Tanya also asked investors what their hot DTC picks are.
After the healthy sodas and canned booze, some of the more novel ones to me included companies that sell affordable bathing suits for people of all sizes, personalized migraine treatments, and online classes.
Finally, the direct-to-consumer explosion is touching PR agencies.
Companies that built themselves by selling directly to consumers on social media are entirely optimized around sales, so to get their business, PR agencies need to show their services can help lead to business outcomes. PR firms have traditionally relied on inaccurate measurement, so now they’re adding data services to show their work actually delivers.
Now, a fun thing: I have to plug this piece of great reporting by entertainment reporter Jason Guerrasio on movie subscription service MoviePass. Jason tells the definitive story of the company’s rise and fall — and of the lasting impact it’s had on the movie business.
Here’s the rest of the Advertising and Media Insider newsletter, where we round up the most interesting stories we covered this past week. (If you got this email forwarded, sign up for your own here.)
Who we’re talking to
- I spoke to entrepreneur and marketing vet Joe Marchese, who’s been saying for years that advertising is broken, about his new holding company, Attention Capital, that’s trying to fix it.
- My colleague Lauren Johnson talked to the new heads of Peer39 about their plans to help advertisers get ready for a privacy-centric world.
- Future of TV reporter Ashley Rodriguez talked to MTV CMO Jacqueline Parkes about how she got its revival of "The Hills" in front of new audiences — with astounding results.
- I talked to Best Western CMO Dorothy Dowling about the company’s use of AI to personalize ads. She said the results are crushing the industry average.
- BI reporter Amanda Perelli got YouTuber Marina Mogilko to break down how she makes money on the platform. It varies widely by channel depending on who the audience is.
Here are other great stories from media, marketing, and advertising. (Remember that you need to be a BI Prime member to read most of these. Still haven’t subscribed? Use promo code AD2PRIME2018 for a free month.)
Taco Bell’s global chief brand officer is leaving the company after 4 years
Former Snap exec Imran Khan’s e-commerce startup Verishop is entering retail with a private-label skincare brand
That’s it for this week! What other stories do you want to see more of? Send tips or feedback to me at lmoses@businessinsider.com.
See Also:
- Investors from Greycroft, Science, Lerer Hippeau, and others who control millions of dollars name the direct-to-consumer startups that will blow up this year
- Joe Marchese has been saying for years that advertising is broken. Now he’s creating a new holding company, Attention Capital, to fix it.
- A leading direct-to-consumer ad agency behind upstarts including Harry’s and Hims just raised $14 million to spin off into its own multi-brand DTC company
Source: Business Insider – lmoses@businessinsider.com (Lucia Moses)