The Cannes Issue - SUMMER 2019 - Digiday
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SUMMER 2019
The Cannes Issue
SUMMER 2019
Remember when 19 59 64 71 77
53
failure was a bad thing?
TABLE OF CONTENTS RETAIL
42 Blue Apron attempts a comeback
05 Editor’s Note
48 Q&A with Tracy Sun
50 The VCs of DTC
54 Target and Walmart
MARKETING strike back against Amazon
12 Mark Penn is the change agent at MDC 56 Q&A with Jed Berger
14 T-Series take over the world
Iterate to innovate. 16 Why 2020 will be the meme election
CANNES
19 5 Gen-Z influences you need to know
Shift customer engagement from basic 21 What H&M’s head of diversity does all day
59 Riviera mystique
to brilliant. Use streaming data to fuel
65 Q&A with David Droga
70 The definitive oral history
MEDIA
better messaging across channels. of the Cannes ad-tech marina
23 Inside the war for free streaming video 72 Digiday’s sober guide to Cannes
26 Niche media all-stars
29 Push notification mania
ETC
34 Disney’s Ricky Strauss has a lot riding on him
74 A day in the life of Rich Antoniello
37 Hulu’s moonshot
76 Lauren Santo Domingo’s Guide to Paris
38 Eyes on Deutschland
78 Final Word
02 DIGIDAY HOT TAKES | DIGIDAY 03
FO U ND E R AN D C EO
N I C K F R IESE
P RE SI DE N T A ND E DI TO R- I N- CH IEF
B R I A N M O R RI S SEY
E D I TO R I A L GLOS SY BRAN D OPE RATIONS
M AN AG I NG DIR ECTOR,
E D I TO RI AL P RODUCTS
EDITOR-IN- CHIEF
JILL MAN OFF
DE VE LOPME NT
E V P G LO BAL BR AN D
TE AM Editor's Note
S H A R E E N PAT HAK D E V E LO P M E N T D IR ECTO R, C L IE N T S E R V IC E S By Shareen Pathak
B EAUT Y EDITOR
N AN C Y PI C K E R JONATHA N M E S SINA
M AN AG I NG DIR ECTOR, PRIYA RAO
M E M B E R SH IP P RO DUCTS V P G LO BAL BR AN D D E V E LO P M E N T
JAC K M AR SHALL SENIOR REPORTER GE R RY HOU SE R C L IE N T S E R V IC E S CO O R D IN ATOR
K ATIE RICH ARDS E A M ON M CC U E
I
M AN AG I NG EDITO R, EUROP E BR AN D D E V E LO P M E N T
J E S S IC A DAVI ES REPORTER S CO O R D IN ATO R D IR ECTO R O F O P E R ATIO N S, C U STOM t’s summer, which means it’s changemakers in this issue as well. In
DANNY PARIS I, E DDIE K RA NKOWSK I LU C IA M OR R IS
U K B RAN DS EDITO R E MMA S AN DLE R time for the ad industry’s annual marketing, I profile Mark Penn, the new
S E B J O S EP H
C L IE N T E N G AG E M E N T CO O R D IN ATOR pilgrimage to Cannes. CEO at beleaguered agency holding
RE TAI L E DITO R V E RONIC A ZEG A R RA
HI L A RY M I LNES
P RO DU CT FIN AN CE company MDC Partners. Penn, best
M ARK E T I N G EDITO R
But whether you choose to go or not known as the political advisor for the
CFO
K R I ST I N A M O NLLO S CHIEF PRODUCT OFFICER
PE TE R S URRE NA
JOHN SOL CUSTOM -- and whether you think Cannes is Clintons (both of them!) has a big job
M E D I A E DITO R
DIRECTOR, AUDIENCE
FIN AN C E M AN AG E R PRODUCTION worthwhile or not -- the industry’s ahead of him as he grapples with some
S A H I L PAT EL
A ND PRODUCT
M A RY A NN BOY D
TE AM biggest and most expensive confab very real -- and some existential -- issues
SE N I O R R EP O RTER S AARON GOT TLIE B S E N IO R FIN AN C E AN ALYST
T I M P E TER SO N, A BU L HA SA N H E AD O F CO N TE N T, E U RO P E occupies a pretty special place in the at the company. In retail, Hilary Milnes
LUC IN DA SO U T HER N AUDIENCE GROW TH A ND M INDI C HA HA L
MA RKETING A S SOCIATE
STAFF ACCO U N TAN T industry. I’ve often taken the mood in went deep inside Blue Apron, one of the
K A ITLY N K ROL IC K
RE P O RT E R S CAROLIN E PH IN NE Y C R E ATIV E STR ATEG IST
M AT T PA STOR IU S
Cannes to be a measure of the industry’s biggest flameouts of the meal-in-a-box
M A X WI LLENS,
K E R RY F LY NN, UI / UX DESIGNER own confidence in itself. Last year was craze, which is attempting a last-ditch
D IG ITAL P RO D U C E R S
A N N A HENSEL JULIA CH OI
S ALE S TE AM SA M A NTHA DU PL E R, sober, plagued by sexual harassment pivot. From Berlin, Steven Perlberg has
N E WS E DITOR DAV ID TE IC H
I L A N A K AP LAN
DIRECTOR OF PRODUCT A ND
C H IE F STR ATEGY O FFIC E R
scandals, as well as a general tone that an in-depth look at Germany’s obsession
COMMERCIA L OPERATIONS CO O R D IN ATIO N AN D D E L IV E RY,
M U LT I M EDIA P RO DUC ER S ADON IS VAS QUE Z
DAV ID A M RA NI
WA LTE R M A SON
the party itself was over. We explore with privacy, and how the rest of the
G IA N N A C APADO NA, V P, G ROW TH AN D IN S ID E S AL E S what comes next for Cannes in our world may finally be catching up. Plus,
A D IT I S A NG AL M IK E C HOM A
cover story, which looks at how much there’s a bunch of Q&As with the
E V E NT P ROGR AMMIN G DESI G N V P, C L IE N T E N G AG E M E N T MARKE TING Cannes is under threat, as every corner
M AN AG E R NE IL STROW people at the forefront of major change
HO P E R E I C HAR D
CREATIV E DIRECTOR
S E N IO R D IR ECTO R,
M AR KE TIN G D IR ECTO R of the industry undergoes its own in the industry, from David Droga,
E V E NT P ROGR AMMIN G IV Y LIU C L IE N T E N G AG E M E N T M IK E M A DA RA SZ
CO O RD I N ATO R M A RY DU M ONT
upheaval. fresh off an acquisition by Accenture,
DESIGNER S E N IO R M AR KE TIN G M AN AG E R,
C AY L E Y P LOT KI N
KE VIN KIM D IR ECTO R S,
D IG IDAY to Foot Locker’s Jed Berger, who has
L AU R E N LOROW
RE S E ARCH ER, DIGIDAY + C L IE N T E N G AG E M E N T Symbolism aside, Cannes is also fun helped the retailer stay head even as the
M A R K WEI S S SHA M BRY M CGE E , D IR ECTO R, AWAR D S
for those lucky enough to get to go, industry undergoes tremendous change.
B U S I NE S S DEVELOP MEN T EVENT S A NDR E W C A R L IN K E LSE Y LU NDSTROM
AN D O P ER ATIO N S MAN AGER, CO M M E RC IAL D IR ECTO R, U K M AN AG E R, AWAR D S
and we’ve also got a load of lighter fare
M E M B E R SH IP P RO DUCTS GENERA L MA NAGER WIL L JONE S
B R I A N N E KENNEDY MEG AN KNAPP
M E L IS SA HAY E S about the confab, including a guide to This is the 14th issue of Digiday
S E N IO R M AN AG E R,
M E M B E R SH IP P RO DUCTS AS SOCIATE EVENTS MA NAGER C L IE N T E N G AG E M E N T, U K
M AR KE TIN G CO O R D IN ATO R, G LOS S Y remaining sober while everyone around Magazine, part of our Digiday+
N ATA S H A M ALI K E M M A PAU L
E LAINE WONG C HR IS WIL L IA M S you is guzzling rosé, and an oral history membership program. In our own
EVENTS COORDINATOR C L IE N T E N G AG E M E N T M AN AG E R S of the ad tech marina. We even surveyed nod to change, we’ve transformed the
S AMAN TH A CH E W JE S SIC A SU GE R M A N
L E SHIA DOY L E OPE RATIONS media and marketing executives to get membership itself, expanding Digiday+
their thoughts on what role Cannes to become a core part of Digiday’s
BU S IN E S S D E V E LO P M E N T M AN AG E R, V P H R / O FFIC E O P E R ATIO N S
IN S ID E S AL E S A NDR E A SONTZ
plays in the industry. content. We hope you enjoy the issue,
E R IC A TAY LOR
H R / O FFIC E O P E R ATIO N S AS S ISTA NT and your membership. D
C L IE N T E N G AG E M E N T CO O R D IN ATO R C IE NNA M A Z ZE L L A Summer is also a time for change,
SA M U E L R E E D and we’re spotlighting a whole host of
For all inquiries, please email
help@digiday.com
04 DIGIDAY HOT TAKES | DIGIDAY 05
Who To Know At TikTok Lofty Expectations
Meet the marketing leaders of the hot new app.
The gap between lofty venture capital raises
and actual revenues for digital publishers.
Vanessa Pappas Stefan Heinrich Total funding amount per CB Insights
general manager of TikTok head of global marketing of TikTok
Venture capital funding vs revenue for digital media companies Revenue per Crunchbase
Papas spent nearly eight years at TikTok has run several large marketing
YouTube and developed the creator campaigns to help boost users.
playbook. She joined Bytedance as an Heinrich, the man behind the effort,
advisor late 2018 and was hired as the joined Musical.ly in 2017 and worked 1400
app’s GM in 2019 to oversee the U.S. at Google and YouTube for six years
teams from New York City. prior. 1200
Dollars in millions
1000
Matty Lin Kelly Chen
800
managing director of monetization and head of content partnerships at TikTok
partnerships at Bytedance
600
Chen has worked in strategic
Lin is a go-to for advertising strategy partnerships at Musical.ly since
Sept. 2016 and stayed on through 400
at TikTok. He comes from the agency
world, having spent two years at Razorfish the transition to TikTok. She leads
partnerships from LA. 200
and then six years at OMD, and is based
in NYC.
0
Vice BuzzFeed Vox Group Nine Medium Politico Bustle Axios
[2019] [2017] [2018] Media [2018] [2018] [2017] [2018]
Mitch Rotter Mikey Kilun [2017]
senior director of global partnerships head of media strategy, U.S. at TikTok
at Bytedance Last reported revenues by year
Kilun oversees TikTok’s marketing
Rotter oversees global partnerships from campaigns and media spend across
LA. He previously worked at a company platforms. He spent seven years in
Total funding amount per CB Insights
within Cheetah Mobile, another Chinese social strategy at Live Nation.
tech giant, that Bytedance acquired. Venture capital funding vs revenue for digital media companies Amount sold for per Crunchbase
450
400
Jenny Zhu Chan Lin
head of integrated marketing, general manager of global sales
U.S. at TikTok business at Bytedance 350
Zhu works on marketing campaigns for Lin joined Bytedance in early 2014 300
TikTok, having been a part of Bytedance when the company had fewer than
since February 2017. She was previously 100 people. She’s risen in the ranks of
Dollars in millions
250
based in China but moved to the LA the sales team and now works out of
office in 2018. New York City.
200
150
Kudzu Chikumbu Jessica Wong
100
head of creator partnerships of TikTok director of strategic
partnerships of TikTok
50
Chikumbu is leading the charm
offensive for video creators on TikTok. Wong leads partnerships for TikTok
He previously worked in entertainment from its LA office. Prior to TikTok, she 0
partners at Musical.ly. spent more than 10 years working in Business Complex Gimlet Media Bleacher Mashable Mic Media
marketing at Sony Pictures. Insider Report
06 DIGIDAY HOT TAKES | DIGIDAY 07
Advertising’s Rick Ross
Last year, CES, which seems to be a tad removed from How Lingerie
who’s currently trending in hip-hop, recruited Rick Ross for
Favorite Live a performance at The LIGHT nightclub. Sure, they could
have gone with Drake, Travis Scott or any other rapper
Became Retail's How much revenue the global
lingerie market is expected to
Performers that’s been relevant the past few years, but they chose Ross
just in time for him to announce a year-long residency in
Hottest Playground $60b generate by 2024 according to
town. Coincidence? We think not. Zion Market Research.
From Lady Gaga to Rick Ross. Both digitally native brands and
mass retailers are vying for a piece of
The Killers Victoria’s Secret’s market share.
This year, The Killers seem to be making the advertising
I
n the ad world, some of the biggest event rounds. Most recently, the “Wonderful Wonderful”
entertainers bring a sheen of cool to outfit headlined the 2019 Adobe Summit BASH in Las
Vegas playing hits including the thrilling “When We Were
A
the many tedious conferences that
Young,” but they also stopped by Cannes Lions last year to ll it takes is for one legacy retailer to How much comparable sales at
happen year-round. headline one of the after-parties. lose its luster for a product category to 3% Victoria’s Secret’s decreased by
become hot again. Sales at Victoria’s from Q4 2017 to Q4 2018.
“My personal favorite was when Flo Rida
Secret -- long considered to be the U.S. market-
played for AOL,” Matt Barash, head of
Lil Wayne leader in lingerie -- have fallen for the past two
strategy and business development at
At this year’s CES, Pandora brought out Weezy as its years, while competitors like American Eagle’s
AdColony recalls. “He had a bunch of
surprise guest in January. For his set, the rapper put on a Aerie are seeing double-digit growth. Now, mass
middle-aged guys in khakis and sweater
performance that featured songs like “Mr. Carter,” retailers like Target and Walmart, as well as new
vests singing along with every word. It “Uproar” and “Got Money.” venture-capital-backed startups, are all trying to
doesn’t get any more cliché than that.”
grab a greater share of the lingerie market.
How much comparable sales at
But for anyone making the conference
rounds, there are a select few "ad-
23% Aerie increased by from Q4
2017 to Q4 2018
famous" celebs who are seemingly the Diddy
favorites of the ad tech, agency and Alongside the announcement of the launch of his music
brand cohort. (Ask any ad professional cable platform Revolt TV, Diddy performed alongside Nas
and they’ll say they’ve seen Snoop Dogg at Gotha Night Club during Cannes Lions in 2013.
perform at every tech event.)
Below we recall some of the biggest acts Lingerie businesses acquired by
Snoop Dogg The amount of money raised 2
that landed at advertising’s events. From his cannabis ventures to partnering with Adidas, public retail companies in the past
Snoop Dogg has constantly been increasing his presence
in the tech space; and it’s made him perhaps the most ad-
by ThirdLove, the most well-
funded direct-to-consumer
$68m two years -- Bare Necessities by
Walmart in 2018, and True & Co
famous celeb out there. After all, the hip-hop legend is now brand in the space. by PVH in 2017.
known for being at practically every event (i.e. Pandora’s
2017 CES kick-off party, YouTube’s Brandcast event, the
Upfronts, Cannes several times, Bud Light’s Whatever, USA
Festival, etc.)
The Chainsmokers
With The Chainsmokers’ rise in the EDM circuit, it wasn’t
a surprise that they had memorable performances for
iHeartMedia at CES in 2017 and again in January of this
year where they appeared with Sony to discuss headsets.
The number of Amazon private
The percent increase in the number
of bralettes carried online by U.S.
10 label and exclusive lingerie brands,
according to TJI Research.
Drake
With ad dollars abound, Adult Swim's upfront party in 123% and U.K. retailers between March
2016 and March 2018, according
2017 was one not to be missed with Drake headlining
to retail research firm Edited.
the annual concert at Terminal 5. Plus, he enlisted surprise
guests like Playboy Carti and Migos.
08 DIGIDAY HOT TAKES | DIGIDAY 09
More than 100 brands
Tmall's Luxury
are on Tmall Luxury Pavilion including
Pavilion Alexander McQueen, Burberry, Valentino,
The gateway for luxury Versace and Ermenegildo Zegna.
brands looking to enter
China is shaping up.
More than 100,000
A
libaba’s Tmall has become one
of the premier destinations customers per year.
for luxury brands seeking the
Chinese audience thanks to the Luxury
Pavilion. Launched in August 2017, the
Luxury Pavilion gives luxury brands
a window into the lucrative Chinese
market. Here’s a quick look at some of $159,000 USD a year
the details of the platform.
is the average spend from a single
consumer on Alibaba’s marketplaces.
Authority and honesty on the
reinvention of retail
Coming this June from Digiday Media
49% 46% 36%
49% of shoppers and 45% of 46% total luxury sales 36% year-over-year
sales come from millennials growth year-over-year in the growth in luxury
born after 1980. 12 months ending June 2018. shoppers.
10 DIGIDAY HOT TAKES | DIGIDAY 11
“I guess he really liked flags,” Penn It also means bringing in innovation in the towel and buy it. Creativity is Colombia,” a Tony Blair prime minister his job when there’s a special counsel
muses as he looks up at one piece of art resources if agencies fall behind, but also still the front door to any significant run in the U.K., and, before that, both investigation into the person holding
featuring Alec Monopoly jumping out negotiating better deals on IT, software corporate relationship,” he says, echoing Ed Koch mayoral campaigns in New the highest office in the land -- the same
of an American flag. “All I added were a and benefits. the refrain that agencies have got to York.) point of view he has with Mueller is
few pictures, and some Snapples to the be better at strategic consulting on one he had in the Clinton days against
bar cart.” His other goals are to create and put marketing and business problems. Knapp, who was also a partner in PR then-special counsel Ken Starr. (And
together growth scenarios that let “The consultancies have yet to create a firm SKDKnickerbocker, which Penn’s unsurprisingly, his office has pictures of
And like with his office, Penn, 65, is in agencies collaborate and really take successful link all the way through. Yet.” Stagwell Group acquired in 2015, recalls him with both Clintons; he just spent
some ways a man caught between the on more of a strategic role for their that at dinner, Penn used to have two time the day before our interview with
past and the future -- optimistic about clients. In the shorter term, it’s to make As for the death of the agency of record, phones, one for Clinton and one for Karl Rove, Neera Tanden, and Jim
bringing a new lease of life to MDC, individual fixes with what he calls the Penn thinks it’s for the best. “I worked Blair. “The hardest part was knowing Messina, he casually says.)
but needing to break free of its old ways “clunkers” in the agency portfolio. in project businesses all my life. We which to pick up when both called,” he
of doing things first. never knew what we were doing. That says. “These days I'm a bit more of a
At Stagwell, which made that minority meant continually coming up with ideas commentator and an observer than in
Ahead of him is the daunting, yet investment in MDC (“They basically for clients,” he said. “Our services have It’s a political past that he seemingly politics,” he says. But at the same time,
enviable task of turning around MDC said we’ll take the investment as long to be aligned to solve problems.” embraces, as well as tries to distance he sees parallels. “A 50-state strategy
Partners: the embattled ad holding as you’re CEO,” says Penn of how he himself from. is not a strategy. If you see a candidate
company that his group, Stagwell got the job), Penn devised a series of There are, after all, only a few kinds betting on the Midwest, that’s a strategy.
Partners, poured $100 million into metrics for how holding companies of meetings a holding company CEO “The point here is, the truth is 90% of I believe MDC has to place a couple of
earlier this year. should operate that if applied to MDC, can have. One is financial -- where is my clients have been nonpolitical for big bets that needs to create a strategy.
would save the company “$100 million, the money being spent, why is it being decades. Let’s not skip over the fact that In political campaigns, the message
Mark Penn
First to go might just be the office or more accurately, $107 million spent. And the other is more strategic. I worked at Microsoft, I took them to dominated the creative. The creative
itself. One of the ways Penn plans to straightaway,” which will assuage that “I come in as a slightly different kind of the Super Bowl, I’ve worked with them,” ideas would never exist on their own
Penning cut down costs is to take a hard look
at the real-estate MDC resides: one of
debt MDC has. And while MDC has
been known to be largely hands off with
CEO,” he says. “I’ve been client-side. I
worked in polling, in messaging. I can
he said. without a creative strategy. That is
exactly what clients are looking for.” D
which includes the modest, yet by no its agencies, that may soon change too, get into substance. The big difference That’s true: The nonpolitical work has
the Future means cheap 19th floor headquarters his with Penn rethinking the role of MDC I’ve noticed in why I’m getting accepted actually bookended Penn’s political
office occupies, in the same building as as being much more involved than his is I am not just a business guy who is work. Penn, a Harvard grad who grew
Political-hustler-turned- Bergdorf Goodman in one of the most predecessors seemed to have. going to be a pain in the neck.” up in Riverdale, New York, did his first
advertising-exec-turned- expensive neighborhoods in the world. “poll” at age 13 while he was at the elite
holding-company-CEO Mark “Just waiting for the right buyer,” he Penn’s already resolved some smaller “He’s a bit of a contrarian and sees Horace Mann school (it proved that the
Penn wants to make his says, in response to a question about a issues, including a spat with an activist things differently,” says Bill Knapp, a faculty at the school was more liberal
presence known. reported sublet the agency is planning. investor, resulting in new nominations D.C. political strategist who has known than the country). With a keen interest
By Shareen Pathak to the company’s board. But big tasks lie Penn for 20 years. “He does not accept in law, driven mostly by his father’s early
“Real estate done right affords a holding ahead of him: MDC has issues like cost conventional wisdom. That can be death when he was 10 and “things that
company a great order of flexibility,” he control and a stock price that has slid challenging, but it can be good. MDC happened after” as well as polling and
says. “If five agencies get an extra floor 72% in the past year alone, compared Partners is going to be different than it is strategy, he founded what later became
M
ark Penn looks distinctly each, only two of them will grow. If to a drop of 26% for WPP and a gain now. That’s because he’s very innovative. polling firm Penn Schoen Berland
uncomfortable when I five agencies say they’re going to grow, of 7% for Omnicom. The plan now, per And he likes winning.” alongside his business partner Doug
compliment him on his you discount by two and only get two Penn, is a two-year effort to transform Schoen, with early clients including
office. To be clear, it’s a nice office: floors. Then, you’re able to as a holding MDC into a modern marketing Penn is probably up to the task. He is AT&T, Texaco, McDonald’s, and the
company make financially disciplined company. perhaps best known, despite having not “Wintel alliance” of Microsoft and Intel.
Books line the wall in an elongated space
decisions.” working in politics for over a decade, The firm was sold to WPP in 2001.
full of wood finishes and comfortable It’s also, like the rest of the agency as the top strategist for Bill and Hillary
chairs, 19 floors above Manhattan’s Fifth Not being bloated with costs doesn’t just world, dealing with other threats to its Clinton, the star architect of a polling- After the political work of the 1990s and
Avenue. start with real estate. business, from consultancies eating up meets-strategy concept that helped him 2000s, a long stint at Microsoft saw him
market share to a growing number of serve as pollster and advisor to former begin a PR campaign against Google
But it’s then I realize that Penn, the Penn is embarking on a long-term and clients cutting agency fees thanks to President Clinton, after his first term’s for Bing that had shades of political
newly appointed CEO of MDC wide-ranging cleanup of the MDC procurement, as well as the rise of more midterms and leading him to help oppo advertising, the 2014 Super Bowl
Partners, is barely a month into the Partners business, which includes storied in-house agency capabilities. the president win re-election in 1996, ad for the company, and the “Don’t get
office, and the job, and hasn’t had creative agencies like 72andSunny thanks to a key focus on the “soccer Scroogled” ad campaign.
and Anomaly, as well as a handful of Arguably, MDC is in a weaker place mom vote.” He also was aide to Hillary
time to redecorate yet. The trappings
media agencies like Assembly and The to deal with these issues than most Clinton during her senatorial run and But it’s hard to divorce the man from
are mostly of his predecessor, Scott Media Kitchen. His first goal is to have others because it is heavier on creative her presidential run in 2008. (He’s also the politics. It’s also easy to see why:
Kauffman, who became CEO after the holding company play the role it agencies and lighter on media. But Penn done plenty of other political work, Up until very recently, Penn has been
founder Miles Nadal stepped down needs to play: That of a benevolent, yet doesn’t think it’s an issue. “Accenture including, as he mentions during our a fixture on television news programs,
following an SEC investigation on disciplining figure that can rein in costs for such a long time was trying to say interview, helping “one presidential most recently arguing that a president
executive pay back in 2015. and provide resources where needed. creativity was dead, and had to throw campaign in Venezuela, two in cannot be expected to function and do
12 DIGIDAY MARKETING | DIGIDAY 13
YouTube Wars YouTube’s exploding in popularity
When it comes to YouTube, in India, and a batch of young talent
don’t sleep on T-Series. is creating everything from comedy
By Shareen Pathak to sketches to motivational talks on
the platform. Here’s a quick rundown
of some of the top YouTubers in the
country right now.
F
elix Kjellberg shouldn’t have users in India rarely are satisfied with T-Series is a good lens through which “We weren’t concerned with who is
messed with India. a plain old boring ringing sound when to view the market. Music is huge, PewDiePie,” says Kalyan. “Every day
someone calls them. Instead, callers Bollywood is the world’s biggest for us is a milestone. We weren’t even
That’s been the one big takeaway for will hear a chorus or refrain a popular film industry and the films are song looking at it. The only time we did is All India Bakchod
those following -- first with mild interest, song -- English or Indian -- when they and music-heavy. The four pillar of when he put out something offensive Number of subscribers: 3.4 million
then with increasing bemusement -- the call people. T-Series started selling entertainment in India, as Kalyan puts that to me wasn’t in good taste.” Kalyan This sketch comedy group (“Bakchod” means
Kjellberg v. Indian music label T-Series 30-second cuts of their music to these it, are astrology, Bollywood, cricket and is referring to a video Kjellberg put out “senseless fucker” in Hindi) had its roots as a
“war” over the past couple of months. telcos, then in 2004, started licensing devotional content. “I call it the ABCD that called out T-Series for trying to podcast. It then expanded into doing skits and
A war that effectively ceased at the end content to aggregators. of Indian entertainment,” Kalyan puts dethrone him. “It was a total frenzy,” he short videos aimed at young, urban India, often
of April when Kjellberg, better known it. Indian consumers listen to music recalls. collaborating with celebrities along the way.
by his YouTube name, PewDiePie, In 2009, when YouTube first came through audio apps like Spotify, or the
ended the competition to see which to India, T-Series noticed a ton of its homegrown Saavn and Gaana. But, as And as for the argument that this
channel could get the most number of videos illegally being uploaded to the Kalyan says, music is visual -- people was about individual creators versus Bhuvan Bam
subscribers. site. It obtained an injunction against prefer to watch it, not just listen to it. corporations, Kalyan scoffs. “See, we Number of subscribers: 13 million
the platform in 2010, which led to an are a channel, in which every artist who Comedian, songwriter and YouTuber Bhuvan Bam
But the competition, which alternately official partnership with the company. The company’s revenue now mostly is working with us, they’re opening is best known for BB Ki Vines, a channel with
has been dismissed as another example On January 1, 2011, it aired its first comes from platforms: YouTube is No. up their channels. They get a platform short videos featuring Bam playing a teenager.
of how serious YouTube rivalries can video on YouTube. 3, after content licensing to TV channels where they could showcase their talent
get, and upheld as both proof that and Amazon. YouTube, says Kalyan, to hundreds of millions of people in
corporations, not people, are winning T-Series today is a mind-boggling however is the major tool for content one go. We are offering them a huge Gaurav Chaudhary, known as Technical Guruji
on YouTube and the global power of the presence. Right now, the company runs promotion, because of the large user platform. We’re not talking about a Number of subscribers: 12.6 million
platform, has also thrust into the global 29 different channels on YouTube, with base and global reach. “Our promotion corporation, this is about individual Dubai-based Chaudhary runs Technical Guruji,
spotlight T-Series -- and the power of 176 million total subscribers. It claims it strategy is YouTube first as it gives our creators.” D which features unboxing videos, reviews and other
YouTube in India. has 10.9 billion -- with a “B” -- monthly content instant reach and allows us to news about technology -- all in Hindi.
views across that network. measure consumer acceptance on the
T-Series began in the early 1980s in go,” says Kalyan. The company now also
India as a cassette tape business founded Of course, when it comes to India, the sources talent from YouTube, singers
by Gulshan Kumar. It mostly focused on numbers tend to be big: The country Prajakta Koli, known as Mostly Sane
and songwriters who became big on the
Number of subscribers: 3.6 million
“devotional” music, particularly Hindu itself is the second-most populous one platform, like New Zealand-based singer Koli started her channel in 2015. Mostly a
hymns, as well as Bollywood music. In in the world, with 1.7 billion. More Shirley Setia and London-based artist purveyor of situational comedy, Koli is also one of
some ways, the company was the first of than a quarter of the population used Zack Knight. It has an eight-person YouTube’s official #CreatorsforChange.
its kind; devotional music had a huge a smartphone in 2018, making it the team, with people dedicated to channels
market, especially among the older world’s second-largest market after for different Indian languages. (That’s
set. In the late 1980s, it had its first China. The number of people who use one feature YouTube has also added,
breakthrough as a real music producer Anisha Dixit known as Rickshawali
the internet rose 11% in 2017, and with new options on the platform that
with the launch of music for the movie Number of subscribers: 2 million
in 2018, the latest period for which lets people find videos in languages they
Dixit started making videos when she had first
“Qayamat Se Qayamat Tak,” which led numbers are available, it grew 16%, per pick.) arrived in Mumbai, India, to look for work. Her
to explosive growth of the company as a eMarketer.
videos are mostly set inside an auto rickshaw --
bonafide music production label. As for PewDiePie, Kalyan sees the usually a pink one -- and cover everything from
What is unique, however, is that in whole thing as just a blip, even though sex ed, feminism and cultural differences.
“India wasn’t on the Internet map for India, YouTube has begun in some it arguably put T-Series on the map
a long time,” says T-Series president ways to equal the Internet. The Google- like never before. (The company’s
Neeraj Kalyan. The company’s first foray owned site says that about 250- million head, Bhushan Kumar, turned the
into trying to make money digitally Indians will watch YouTube on mobile competition into a show of patriotism,
was when it began selling ringtones a month. And while Netflix, Amazon with a hashtag campaign called
and “calltones” to telecommunication and homegrown sites like HotStar are #BharatWinsYouTube, urging Indians to
companies. One of those unique-to- shaping the video market, none comes subscribe to the channel as it sought to
the-West phenomenons, mobile phone close to YouTube. beat Kjellberg).
14 DIGIDAY MARKETING | DIGIDAY 15
The Meme
Election
With the rise of social
media, memes are a
mainstream tool for politics.
By Kerry Flynn
S
outh Bend, Indiana Mayor Pete course. Illustrators have been drawing the comment. “Campaigns from the
Buttigieg and Dorothy from the political cartoons nearly as long as official side have not wanted to touch
“Wizard of Oz” may not seem there’s been newspapers. But they have [memes] historically. It’s like all things
like they have a lot in common. But garnered more attention in recent years in social media, balancing humanizing
to meme fans and supporters of the with the rise of social media and as part and diminishing. You’re starting to see
presidential candidate, it all makes sense, of Russia’s interference in the 2016 U.S. seismic shift now. There’s a mass market 2500
especially if you happen to be part of
presidential election. Political strategists appeal,” Moffatt says.
a Facebook group celebrating “Pete
say they expect memes to be even more
Buttigieg’s Dank Meme Stash.”
prevalent in the 2020 election. Indeed, memes are going to appear
whether the candidates want them to,
“We all know how this one ends,” say
What’s a political meme? It depends or not, and it’s up to the campaigns
the words above the viral image about
who you ask. Rachel, the moderator of to decide whether to embrace or shun
the candidate, who is depicted as
the Pete Buttigieg's Dank Meme Stash them. Rob Shepardson, founder partner
Dorothy, with President Donald Trump
Facebook group, says internet memes of marketing agency SS+K who worked
as the Wicked Witch of the West.
typically refer to images but memes can on Barack Obama’s 2008 and 2012
(Buttigieg’s dog, Buddy, is Toto.)
also be a “cultural unit,” like a MAGA campaigns, says memes can be used
hat. Her Buttigieg group has a “looser strategically by candidates themselves.
Buttigieg is far from the only candidate
definition” than others she runs due to
with a supporter-led “dank” meme
its broader age range. “The posts contain “In politics you want to define yourself,
stash. The group’s creator Rachel, who
images I’d call graphics more than your opponent and what’s at stake. If
requested her last name not be used, had
memes,” she says. you look at memes through that lens it’s
launched Facebook groups for memes
just another way to help candidates do
supporting several candidates including
Zac Moffatt, CEO of marketing agency that,” Shepardson says. 3501
Kamala Harris, Cory Booker and Julian
Targeted Victory, likened memes to
Castro earlier this year. Since February,
chain emails of decades past and to For example, in the 2016 election,
the 27-year-old has focused her time on
the more recent practice of President Hillary Clinton’s campaign briefly
the Buttigieg group.
Donald Trump nicknaming people. embraced memes by using the photo
“They’re a shortcut to a larger point,” of “Texts from Hillary” as her Twitter
“Social media plays a huge role in
Moffatt says. “Memes are successful photo. (She later removed that after a
political discourse and this is a way to
when they repackage information in a State Department investigation into
create and distribute lighter content
lighthearted, shareable way.” the matter.) Bernie Sanders’ campaign
to help people get to know Pete and
acknowledged a meme about the
feel connected about Pete's message.
Moffatt, who served as digital director candidate when it tweeted, “A vote for
Memeing across generations is a way
for Mitt Romney’s 2012 presidential Bernie is a vote for #BirdieSanders,”
that we can bridge gaps in culture and
campaign, has experienced backlash after a bird landed on his podium during
understanding,” Rachel says.
from memes firsthand. After a 2012 a speech.
debate when Romney said, “I love
Memes -- dank or otherwise -- have
Big Bird,” as he was sharing his plan In the 2020 election, most candidates
become a mainstream tool for political
to eliminate federal funding to PBS, have shied from memes, at least for now.
campaigning, used by supporters and
memes defending the Sesame Street One acknowledgement of the practice
opponents (and sometimes campaigns 6237
character flooded Twitter. The Obama has come from Democratic candidate
themselves) to convey information with
campaign later ran a TV ad mocking Andrew Yang who, in an interview with
humor. Memes aren’t new in politics of
16 DIGIDAY MEDIA | DIGIDAY 17
The New York Times, denounced memes
about him created by the far-right.
5 Gen-Z influencers The Jenners and Hadids aren’t the only Gen-Zers impacting
fashion and beauty. The power of pint-sized influencers
Meanwhile, the incumbent continues
to know continues to rise, as the line between social media and
e-commerce blurs. Though unknown by almost everyone over
to embrace memes. President Trump’s 24 years old, these YouTube and Instagram stars have already
Meet the young social stars shaping garnered attention from brands, making up to $6,000 a day in
official Twitter and Instagram accounts
the future of fashion and beauty. sponsorships. Here’s who you need to know.
frequently feature memes, such as his use
of the “Game of Thrones” font. By Jill Manoff
“Trump is a master of [memes]. He
understands that people share the
headlines without reading substance,” Haley Pham
says Claudia Cukrov, group strategy Age: 18
director at SS+K. “He understands that YouTube followers: 2 million
people don’t care about the details, and Years on YouTube: 6
he doesn’t care about the details either.” Located in: Austin, TX
7857 Choice formats: Before-and-after transformations, vlogs
Media outlets also elevate memes and hauls. “I also throw in the occasional dance video or
when they chose to write about them. ‘trying something new for a day’ experiment format.”
While that was common practice prior On the evolution of influencer world: “It’s become a
elections, such as Mashable producing a more genuine space. It used to be about making your
listicle of Big Bird and Romney memes life seem as perfect as possible. Now there's an emphasis
in 2012, some reporters have begun to on being relatable."
become more mindful of meme coverage,
says CNN’s campaign editor Kyle Blaine.
Haley Pham
“I think the novelty of memes have worn Fiona Frills
off. There was a huge splash of, ‘Oh this
Age: 15
stuff is so funny,’ and there was a hunger
YouTube followers: 855,000
of digital-first outlets to capture that
Located in: California
internet conversation. That pressure,
Audience: “Little fashionistas”
while still present, is tempered by
Uses of “awesome” in one 15-minute call: 11
thinking about how we’re covering things
Own product line: Frilliance, made up of makeup and
a lot more, especially thinking about how 2395
makeup tools for “teen-prone” skin
we’re covering things on the internet,”
Key to success: “You have to stay focused, and if you’re
Blaine says.
not having fun with what you’re doing, you have to
adjust. I love shopping and makeup. Those things make
Nevertheless, political memes persist
me happy, so that’s the path I’m following.”
online, whether or not they get any
media coverage. Moses Albo, the CEO
and founder of DankMeme.com, helps Fiona Frills
manage one of the Facebook meme
pages supporting Bernie Sanders, which
Emma Chamberlain
was launched in February 2016 and has Age: 18
nearly 300,000 likes. Years on YouTube: 2
YouTube followers: 7.6 million
“I really do want Bernie Sanders to be Located in: Los Angeles, CA
our president, and he has the support of Uses of “fuck” in recent 18-minute video: 34
the entire Dank Meme network behind Video content: Started with DIY tutorials, but now
him. We got his back, and come 2020 posts videos like” Turning Jojo Siwa into me” and “24
we're ready to flood the internet with the hours without a phone”
11947
Dankest Bernie Sanders memes in our Own product line: High Key, a fashion line sold
stash,” Albo says. D exclusively on the Dote app
Worth: Reportedly $2.5 million, making $6,000 a day
from video sponsorships Emma Chamberlain MARKETING | DIGIDAY 19
18 DIGIDAYTeala Dunn Day in the Life: I look at my job in two ways: external
and internal. Where is our talent pool,
on social so they see things that are
going on there and they monitor how
Age: 22
Followers across YouTube and Instagram: 4.1 million Ezinne Kwubiri how do we develop diversity within
the company, what are our retention
people are responding to what we do.
They’ll inform us if there’s any backlash
Located in: Los Angeles numbers for employees of all different or people upset there. Then we decide
Instagram bio: Ephesians 4:2 How one woman is trying to
backgrounds: that’s all internal. And as a team how to respond.
YouTube videos dedicated to Coachella 2019: 3 help H&M avoid the costly
mistakes of the past. from an external perspective, how can
Haters: First Google search results for her name include share our story and make sure what we We’ve rolled out traditional
compilation videos titled “Teala Dunn lying about her By Danny Parisi
are putting out into the world reflects unconscious bias training. Because
hair for 2 minutes straight” and “Teala Dunn being rude the values of diversity and inclusivity. this role is completely new to the
for 3 minutes straight”
A
organization, I wanted to make sure
Collaborations: Launched a line of sunglasses with fter a winter of scandals, Let’s say that as an example we have we all knew what our definition of
influencer brand NEM Fashion in September fashion brands like Gucci and an employee who is unhappy, they inclusion and diversity is.
Brand sponsors: Revolve, Mavlash Extensions, Benefit, Dolce & Gabbana pledged
feel they’re being excluded based on
Beauty Blender, Garnier to be less racist, creating new roles
The last thing I do usually is update
Trips since January: The Maldives, Hawaii, New York, for people who could help them
avoid costly blunders. Here, Ezinne my calendar. There’s a lot of requests
Las Vegas, Miami that I get from people wanting to
Kwubiri, the newly appointed head
Cause: PETA; in April, she teamed with the organization offer us training or some new software
of inclusion and diversity at H&M
on a video encouraging teens to opt out of dissecting company or community organizations
walks us through some of her typical
animals in school duties towards making H&M a more that want to partner with us. Usually I
inclusive place. touch base with these organizations and
see if they can offer us anything useful.
I’m in the office in New York. When I
first walk in, I say “good morning” to Each day really depends on the week.
everyone, and we have meetings to talk I know next week we are doing a big
Teala Dunn
about our goals for the week to come. HR retreat to talk about recruitment
I sit closely with HR and most of these and retention, etc, but last week I was
meetings start in the HR department. at a diversity panel, externally. Another
I try to get a sense of what’s going week I was curating activities for Black
on in the company and the store, History Month. If I had to point to
because the stores are open through one thing as being an unexpected
Summer Mckeen the weekend. Is there anything to be part of my job, it’s being a mentor
concerned about there? I meet with the to the store staff or them coming to
Age: 20 HR team, and also with the marketing race or something like that. I would me as someone they can confide in.
Followers across YouTube and Instagram: 4.5 million and press teams to see if we have any meet with them personally to see It’s different than what my previous
Located in: Laguna Beach, CA (originally from Oregon) engagements coming up. what’s happening. Depending on what roles have been. The role is new and
Budding reality star: Starred in a Snapchat docu-series in the situation is, a lot of times in my hopefully people at the company are
late 2018 called “Endless Summer,” which was produced Aside from that, I’m usually connecting experience, people want to be heard, starting to feel like their opinions
by “Keeping Up With the Kardashians” producer with someone on the store-level. I like they want to know that someone is matter more. I’m happy to provide that
Bunim-Murray Productions and recently renewed for a to make myself available to people at hearing them. I’m a minority myself. I for them. D
second season the store. If there are issues, people understand. A lot of times, my presence
Influencer backlash: Does not want to be described as aren’t always comfortable talking about alone is impactful.
an influencer, preferring “creator,” according to her press it with their immediate supervisors.
rep. I also connect with customer service If it’s something more serious, I’m
Product line: Jewelry engraved with words like “worth,” centers to see if there’s anything we not the one who conducts a whole
created with #LuvGems, a company backing fashion notice on social media that we want to investigation. Someone else would do
lines by YouTube Stars address. that. But collectively we would come
Brand sponsors: Billabong, Victoria’s Secret, Tresemme, up with recommendations.
Sephora Since the role is brand new we are still
kind of figuring out what exactly it Externally, it’s a similar thing. On
looks like each day and where I sit in social media, for example, we luckily
it all. I work most closely with the HR haven’t had anything too crazy happen
team. It’s our own umbrella within HR. recently. But we have teams who work
Summer Mckeen
20 DIGIDAY MARKETING | DIGIDAY 21Free Streaming
Netflix, Disney and subscription services
get all the attention, but the war for free
streaming video is no less competitive --
and more wide open.
By Sahil Patel
R
oku expects to top $1 billion growing advertiser interest in connected
in revenue for the first time in TV environments, TV’s future also
2019. But while the company includes advertising. And the race to
is still best known for selling streaming own free streaming video is equally
set-top boxes and USB-sized dongles, competitive -- if not more wide open.
two-thirds of Roku’s revenue this year is
expected to come from the advertising it
The race is heating up and ambitions
sells across its platform.
are high
In January, Viacom bought Pluto TV,
For most of Roku’s history, that has
a free video streaming service that
meant the 30% of ad space that Roku
programs more than 100 linear channels
gets from the TV networks, digital
filled with licensed movies, TV shows
publishers and other video programmers
and digital video programming, for
distributing ad-supported apps on
$340 million. If that does not signal
its platform. But to meet its own
how ambitious Viacom is about the
lofty advertising ambitions, Roku has
future of free streaming video, the
another piece that plays a key role in
company’s COO of ad sales, John
its advertising strategy: Streaming free
Halley, says Viacom expects Pluto TV
movies and TV shows to users through
will make “north of a billion dollars in
The Roku Channel -- which Roku says
the medium term” from advertising.
is already one of the top five biggest
channels based on reach (though Roku
Beyond The Roku Channel, which
doesn’t provide specifics).
launched in Sept. 2017, and Pluto TV,
Amazon has also made free streaming
“The reason we went hard into pure
video a key part of its growing ad
free, ad-supported content was because
business: in January, the commerce giant
we were listening to our users, and
launched IMDb Freedive, a streaming
one of the most important terms that
service delivering licensed movies and
people searched for on our platform
TV shows to Fire TV users; soon, it
was the availability of free content,”
will also launch a free, ad-supported
says Scott Rosenberg, svp and gm of
streaming video service for news.
Roku’s platform business. “We see
Walmart has also gotten into the game
an acceleration of free, ad-supported
with its Vudu service. Other players
channels on our platform.”
in this area include Xumo and Tubi,
as well as TV manufacturers such as
A lot of attention -- and justifiably so
Samsung and Vizio, which are licensing
-- has gone toward Netflix, Disney,
technology from Xumo and others to
WarnerMedia and the future of TV in
deliver white-labeled streaming video
the context of subscription streaming
apps on their smart TVs. TV networks
video. But, as evidenced by Viacom’s
have also jumped into the fray, with
$340 million cash acquisition of Pluto
CBS leading the way with three free
TV, the investments in new video
video streaming services spanning news,
services from Amazon and Roku, and
sports and entertainment news.
22 DIGIDAY MEDIA | DIGIDAY 23These services are also growing. The Subscription video market will soon be YouTube Premium] efforts,” says an Roku’s rival free video streaming
Roku Channel is a top-five channel maxed out executive at a major Hollywood film services. He acknowledges the
on Roku based on reach. Viacom says Ask anyone investing in free video studio. “Subscriptions are tough. That’s competition, but says it’s mutually
Pluto TV now has 16 million monthly streaming services about why they are why you’re seeing such a big rise with beneficial for both the programmers
users, up from 12 million monthly going the free route and the answer will [ad-supported video].” and the distribution platforms to work
users when Viacom made the purchase be the same: The subscription video together in order to grow usage.
in January. CBSN, CBS News’ nearly market is getting saturated. Netflix, Amazon and Roku -- the platforms --
five-year-old streaming news network, Hulu and Amazon are already well- cast a long shadow “Here’s the thing: this always comes
now averages more than 1 million established, and new services are on The digital advertising market has to down to the programming,” Halley
video streams per day. Even YouTube is the way from Disney, WarnerMedia contend with Google and Facebook. said. “People don’t watch distribution.
talking up how its users are streaming and NBCUniversal (though NBCU’s In ad-supported streaming video, there We feel confident about what our
more than 250 million hours per day service will be “free” for those that is the potential that the ad market is lineup is on Pluto -- and I’m sure
through TV sets. already pay for existing pay-TV controlled by a small number of big others will have compelling offerings
subscribers.) players. as well -- but at the end of the day, this
“We are seeing a tremendous growth business is written on content.”
in smart TV usage of our app,” says “How many more [subscriptions] Hulu is the current leader with a $1.5
Christy Tanner, evp and gm of CBS collectively do all of us want to pay for? billion annual ad business. Roku’s For its part, Roku sees The Roku
News Digital, adding that viewership Nielsen has even reported data that platform business did $416.9 million Channel as an important part of its
from Samsung, Vizio and other smart 14% of households are using antennas, last year. Amazon, which can ostensibly ad business, but a component of an
TV providers has grown by triple- versus 10% in 2014,” says Halley. match video ads to actual purchases, is overall ad strategy, says Rosenberg. The
digit percentages year over year. “It’s “There’s a rush to subscription services, also aggressively pursuing TV ad dollars executive declined to say whether The
fascinating to watch how quickly that but there are indicators that consumers -- though its search ad business remains Roku Channel was the most important
usage has caught on.” are more value-conscious than they a bigger revenue driver today. part of the company’s ad sales efforts,
have ever been.” but it’s clear why the service matters
Growth in consumption across a With Amazon and Roku, video to Roku: it’s the place where Roku has
greater number of platform and device Today, the average U.S. consumer programmers and free video streaming full control over the ad experience and
sources has naturally led to growth subscribes to three streaming services, services such as Pluto TV and Xumo collects the greatest share of ad dollars.
in advertiser interest. In fact, earlier according to a March study from have to deal with the fact that both
this year, Magna Global revised its Deloitte. Conventional thinking companies are both competitors and Roku plans to continue investing in
2019 forecast for OTT advertising is that most people won’t want to distributors. IMDb Freedive and The The Roku Channel. In addition to
to grow 39% to $3.8 billion. Ad- subscribe to more than three or four Roku Channel are free streaming free movies and TV shows, the service
supported programming is growing services as “subscription fatigue” sets services competing for viewer attention offers more than 20 linear channels
faster (in terms of users and overall in. Compound that with the fact that and ad dollars; and Roku and Amazon’s from programmers such as ABC News
consumption) than subscriptions on getting people to pay for subscriptions Fire TV are necessary for any streaming and Newsy. Soon, expect Roku to
Roku, according to Rosenberg. is an incredibly difficult endeavor, video service to find an audience expand those linear feeds into new
there is a reason why platforms and today. (Amazon says it has 34 million evergreen verticals outside of news,
“Everyone is growing,” says Vincent programmers will take a closer look at monthly Fire TV users and Roku says it Rosenberg says.
Letang, evp of global market free streaming video. has 29.1 million monthly active users.)
intelligence for Magna Global. “We think there is a big tent,”
“There’s a reason why YouTube pulled Viacom’s Halley says he’s not concerned Rosenberg says. “The appetite for
back from [its original content for by competition with Amazon and free and discounted content is still
underserved.” D
24 DIGIDAY MEDIA | DIGIDAY 25Sample headline: “Auction report: IndustryDive suite of products aimed at lobbyists,
Jones & Horan to sell Howard Davis & A portfolio of 16 niche B2B titles, multinational corporations and law
Dennison No. 3 pocketwatch” Industry Dive covers deeply unsexy firms, which includes a legislation
industries like recycling and solid waste tracker that keeps subscribers abreast
Skift management. The industries Industry of changes made to bills making their
A B2B-focused site aimed at the Dive coves are not big, they are stable, way through Congress and a white-
travel industry, Skift earns most of and coverage of their goings-on is labeled app builder that allows advocacy
its revenue from conferences, such as limited enough that the audiences groups to distribute calls to action
the Skift Travel Forum, and branded Industry Dive offers its advertisers and messaging to stakeholders more
content sponsorships. But it has have not been commoditized. Founder efficiently.
Niche and Easy been diversifying its revenue streams
steadily through a mixture of product
Sean Griffey said Industry Dive makes
money when it helps site sponsors have
Founded: 2013, by Timothy Hwang,
Gerald Yao and Jonathan Chen
development and acquisition; it productive conversations within their Funding: $50 million over four rounds
Publishers looking to
purchased a newsletter about the airline space. Revenue streams: Digital advertising,
diversify can follow the leads
of these specialized media industry in 2018, for example, and in Founded: 2012, by Sean Griffey digital content subscriptions, services
companies. 2019 Skift launched its first awards Funding: A $500,000 angel investment subscriptions
program. Revenue streams: Site, newsletter, Sample headline: “Abortion-rights
By Max Willens
Founded: 2012, by Rafat Ali sponsorships groups lay out 2020 races they plan to
Funding: $1.1 million over two rounds Sample headline: “Delays mount at target”
Revenue streams: Conference ticket
P
Denver airport over concrete concerns”
ublishers trying to figure out advertising, newsstand sales, book sales and sponsorships; branded content M. Shanken
how they are going to diversify sales, digital and print subscription sponsorships; research subscriptions; Food52 Communications
revenue would do well to look at revenue, podcast advertising, TV premium newsletter subscriptions The home of booze bibles Wine
Food might seem like too broad a
the smaller, niche publishers that had to show production, event tickets and and advertising; awards show; podcast Spectator and Whisky Advocate, as
category for this list, but Food52 has
diversify years ago. sponsorships advertising well as Cigar Aficionado, M. Shanken
spent years building and developing
Sample headline: “Uncommonly sharp: Sample headline: “Why the obsession content and products specifically for its founder Marvin Shanken earned his
These examples, who serve a mixture How to sharpen 13 tools that don’t fit in over hotel logos?” recent MPA lifetime achievement award
audience of home cooks. Food52 now
of business- and consumer-facing your honing guide” by building a media company that
earns a majority of its revenue from
audiences, attack the problem from Capitol Forum commerce, and it continues to diversify catered to both B2B and BC2 audiences.
different angles, but they have all Hodinkee A seven year-old startup that dives into a growing array of home goods, In recent years, M. Shanken has pressed
figured out how to thrive in a digital A magazine for watch obsessives, deep into the minutiae of antitrust and on both sides. On the B2B side, M.
ranging from cutting boards to dryer
media ecosystem that pessimists say is by watch obsessives, Hodinkee has competition activity as well as mergers Shanken announced in February that it
balls. It produced a dessert cookbook
inhospitable for everybody. embedded itself in the firmament of the and acquisitions in both Capitol Hill would launch a daily newsletter focus
last year that featured recipes offered
luxury watch market. While Hodinkee and Brussels. The content, which is up by its own readers. More recently, exclusively on cannabis’s move into
Taunton Press earns some revenue from digital and entirely paywalled aside from some the food and spirits industries. On the
it began expanding into video series
An enthusiast publisher serving print advertising, it earns a major share sample articles hosted on Capitol B2C side, it continues to expand its
and launched its own cooking channel
hobbyists interested in crafts including of its revenue from e-commerce, not just Forum’s homepage, is intended for events business with its WhiskyFests,
on the ad-supported video platform
woodworking, homebuilding, by securing exclusive items from watch institutional investors, law firms, and a freemium mobile app that offers
XumoTV.
cooking, gardening and sewing. Most manufacturers but by collaborating policymakers and think tanks, and is subscribers access to a library of Wine
Founded: 2011, by Amanda Hesser and
of Taunton’s individual titles reach with watchmakers on limited edition produced by staffers with legal training; Spectator reviews, has been downloaded
Merrill Stubbs
small numbers of people -- Threads. products, which can cost hundreds, many of the Capitol Forum’s reporters over 2 million times.
Funding: $13 million over four rounds
com, the digital presence for its sewing or thousands of dollars. It has moved have served as either lawyers or law Founded: 1972, by Marvin Shanken
Revenue streams: E-commerce, branded
magazine, averages 250,000 unique even further into ecommerce lately, clerks. The Capitol Forum also hosts Funding: No outside investment
content, video advertising, digital
users per month -- but each boasts a developing seasonal buying guides and quarterly events. Subscription prices, Revenue streams: Event sponsorship
advertising, events
wide and healthy variety of revenue even designing a quiz designed to help which are typically sold in enterprise and ticket revenue, digital and print
Sample headline: “The world’s best
streams, which Taunton’s sales teams are new customers figure out what kind of deals, can vary, though they typically subscriptions, digital and print
shortbread is no longer sold -- but we
comfortable threading together; Fine watch they should buy. carry a price tag in the mid-five figures. advertising, paid app downloads
got the recipe”
Cooking, Taunton’s magazine for home Founded: 2008, by Benjamin Clymer Founded: 2012, by Teddy Downey Sample headline: “The best whiskies for
cooks, has won MPA awards for best
advertising program two years in a row.
Funding: $5 million in 2017 Funding: No outside investment FiscalNote grilling season” D
Revenue streams: Ecommerce, brand Revenue streams: Pricey subscriptions After acquiring the DC insider
Founded: 1975, by husband/wife duo licensing, print circulation, print Sample headline: “Praxair/Linde publications CQ Roll Call for $180
Paul and Jan Roman advertising revenue, digital advertising AG: On-Site, Merchant, Issues Drive million last summer, FiscalNote
Funding: None revenue, branded content, podcast Antitrust Risk” folded the two publications into a
Revenue streams: Print and digital advertising
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