But first, Don Draper’s got a new remit.
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The big story
Data for the small screen
At one of the biggest annual events in advertising, it’s all about the data.
US TV upfronts are when networks vie for ad dollars. The courting process typically involves networks showing off their best shows and then haggling over prices.
“Come check out this new show of ours. Wouldn’t your ad look great running alongside it?”
It’s a high-stakes game, with nearly $18.8 billion in ad spend up for grabs.
But when things kick off later this month, advertisers have another priority beyond keeping their ad rates low. Business Insider’s Lara O’Reilly and Lucia Moses report that some advertisers are more focused on the data they can get, specifically from retailers.
Information on consumers’ shopping trends can ensure their ads reach the right people and prove they ultimately lead to sales.
That concept isn’t new in the age of digital advertising, to be clear. But, the rise of e-commerce means an increased focus on the valuable information retailers have about their shoppers.
Consumer privacy initiatives have also contributed to the shift. Sensitivities around data sharing and the upcoming death of the third-party cookie have forced advertisers to work directly with companies with data on their customers.
As a result, the so-called retail media space has exploded, ballooning to $128 billion last year.
You might be wondering what retail data has to do with television advertising.
It just so happens one tech giant has its foot in both worlds. Amazon is one of the world’s largest retailers and also has a streaming service, Prime Video, that just started selling ads.
Couple that with the success of its new series “Fallout” and the fact retail media’s rise is at the expense of rival Google, and you start to see how well-positioned Amazon is.
Perhaps that’s why CEO Andy Jassy highlighted Prime Video in his recent annual letter to shareholders.
Amazon holds an incredible advantage, but that hasn’t stopped others from combining retail and streaming (Roku-Best Buy, Disney-Kroger, Walmart-Vizio).
Such a big shakeup will also impact what we see as viewers. Maybe it’s unique in-game advertising for live sports, an area Big Tech is aggressively pursuing.
More drastic changes could include “shoppable media,” where viewers can make purchases from the comfort of their couch.
3 things in markets
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The man with the (wealth) plan at Morgan Stanley. The bank’s new wealth chief, Jed Finn, took over a thriving business after his former boss, Andy Saperstein, was promoted. But there’s still work to be done — about $3 trillion worth — to reach the bank’s goal of $10 trillion in client assets across wealth and asset management. He told BI how he plans to do it.
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Joseph Stiglitz sounds off. The famed economist discussed with BI the legacy of trickle-down economics. (The share of total net worth held by the richest Americans went from 22.8% in 1989 to 30.3% today.) It’s part of the Nobel laureate’s argument for why it’s time to issue a verdict on whether free-market policies have been successful.
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The Fed keeps interest rates steady once again. On Wednesday, the central bank kept borrowing costs at their current level, the sixth straight meeting in which it has left rates unchanged. Chair Jerome Powell said rate cuts will be on the table only if there is better inflation data or “unexpected” labor market weakness.
3 things in tech
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Google says immigration rules are making it hard to hire top AI talent. The company says its need for AI roles will “increase significantly” in the next few years. As such, it told the US Department of Labor the list of roles considered scarce must be broadened.
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All eyes on Apple. With the company reporting earnings this afternoon, Wall Street is looking for its iPhone sales in China. With weak sales in the country, Wells Fargo said Apple faces a “tough near-term setup.”
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Microsoft’s CTO was “very worried” about Google’s AI efforts. In a 2019 email that was made public on Tuesday as part of the Department of Justice’s antitrust case against Google, Kevin Scott told Satya Nadella and Bill Gates that “auto-complete in Gmail” was “getting scarily good” — potentially setting the stage for Microsoft’s massive investment in OpenAI.
3 things in business
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Gen Zers have a new status symbol: Botox. In an age of remote work, young people no longer need to show off their bags or cars. Instead, they’re showcasing their face — and driving a boom in “tweakments” like Botox and lip filler.
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Everything to know about Skydance’s bid for Paramount. The film studio is vying to buy Shari Redstone’s controlling stake in Paramount. Sources told BI how much Redstone may get and what Paramount would look like if it happens.
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Trump Media makes no sense. Its shares, which have been on a roller-coaster ride in recent months, tanked again on Wednesday. Don’t bother trying to understand why — meme stocks don’t respond to reason, BI’s Peter Kafka writes.
In other news
What’s happening today
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Hallam Bullock, senior editor, in London. George Glover, reporter, in London.
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