Barton F. Graf's ripple effect over Madison Avenue, Instagram's privacy practices, and Foursquare pitch deck

gerry graf

Hello!

Welcome to the Advertising and Media Insider newsletter, where
we round up the most interesting stories we covered this past week,
ICYMI. I’m Lauren Johnson, a senior advertising reporter filling in
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First off, this is the last week to submit nominations for
Business Insider’s inaugural list of CMOs to watch. Please submit
your ideas by Friday
here.

On to the news. My colleague Tanya Dua looked at what the news
about independent ad agency Barton F. Graf shutting down means for
the advertising industry.


The sudden demise of a lauded New York agency is a chilling
reminder of the ad industry’s massive ongoing
challenges

Among the big changes happening to agencies’ business models is
a drop in independent agencies. According to data from Forrester
Research and SoDa, the percentage of independent agencies dropped
from 51% to 39% between 2016 and 2018.

Here are the other big takeaways from Tanya’s
reporting:

  • More big brands like Verizon and Marriott are taking their
    advertising in-house.
  • Facebook and Google dominate digital ad spending and are
    cutting into traditional creative work that Barton F. Graf
    specialized in.
  • Advertisers are increasingly looking for more project-based
    work over agency-of-record relationships with agencies to cut
    costs.

But as more pressure is put on the holding company model, some
independent agencies may have a new opportunity to win back
clients.

“Smaller agencies usually have lighter operational models, less
legacy overhead, and more nimble ways of delivering content at
speed, which is what larger agencies can often lack,” said Claire
Telling, co-CEO of Grace Blue. “They just have to set up a
financial structure that allows for the company to stay afloat
during potential dry spells.”

Over on Business Insider’s tech desk, news editor Rob Price
broke the big story about Instagram kicking marketing firm HYp3R
off of its platform after it was discovered that the startup had
been scraping location data.


Instagram’s lax privacy practices let a trusted partner track
millions of users’ physical locations, secretly save their stories,
and flout its rules

After Business Insider contacted Instagram about HYp3R’s
practices, Instagram sent the firm a cease-and-desist letter, and
HYp3R shut down its platform. The startup claims that its practices
do not break Instagram’s rules.

Facebook also to explain how it handles data on its
platform.

Meanwhile, I looked into what Foursquare’s acquisition of Placed
means for marketers. Foursquare acquired the location-based
measurement firm from Snap as part of a $150 million round of
funding in May.


We got the pitch deck Foursquare is using to sell advertisers
location data — even as regulation and privacy concerns
mount

Placed founder and new Foursquare president David Shim sat down
with me to go over Foursquare’s pitch deck that the company is
presenting to advertisers.

Location-based firms have struggled to stay afloat with privacy
regulations like Europe’s General Data Protection Regulation and
the California Consumer Privacy Act, but Foursquare says that it’s
an outlier in the industry because its data is collected from
consumers who have opted in to sharing their location.

Shim said the goal of the combined Foursquare and Placed company
is to give marketers a one-stop shop for location data to do
everything from planning, buying, and measuring campaigns.

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.)


‘Angst about more layoffs and consolidation’: Viacom insiders react
to the CBS merger and predict what will happen
next


Walmart is under increasing pressure as it remains a major seller
of firearms. The company could easily rein in gun sales without
hurting its business, some branding experts say.


A new advertising pitch deck from Disney shows its plan to change
how media buyers approach live TV


Facebook is building a news tab and keeps referencing Apple News in
private talks with publishers


Ad agencies are building brands around everything from yoga
equipment and cookware to CBD-infused drinks to crack the
direct-to-consumer market


The financial adviser to the world’s top-earning YouTube star
shares the biggest pieces of advice he gives his clients on growing
their businesses


The Trade Desk CEO talked up a new advertising partnership with
Amazon but also downplayed the e-commerce giant’s own growing ad
business


Join the conversation about this story »

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Source: FS – All – Entertainment – News
Barton F. Graf's ripple effect over Madison Avenue, Instagram's privacy practices, and Foursquare pitch deck