• Alphabet Inc.’s Google posted ad revenues of $54.5 billion for the first quarter, marking a slight drop from the same period last year and a second straight quarter of decline. (The Wall Street Journal) Meanwhile, first quarter ad sales at Alphabet’s YouTube dropped for the third reporting period in a row, falling 2.6% year over year to $6.69 billion. (Variety)
• Several consumer goods companies and restaurant chains, including PepsiCo Inc., Nestlé SA and McDonald’s Corp., reported resilient first-quarter sales despite ongoing inflation. McDonald’s CEO Chris Kempczinski described demand as “strong,” but noted the fast food giant is still “very closely” monitoring consumer reactions to higher prices. (Financial Times) 
• ByteDance Ltd.’s TikTok is reportedly preparing a feature that will allow users to create AI-generated avatars, becoming the latest company to incorporate the technology into its standard offerings. The tool asks users to submit several photos, from which it produces a new set of images that can be used in various ways on the app, including as a profile picture or a TikTok story add-on. (The Verge) 
  • Morning Consult data included in my latest story published earlier this week found that nearly equal shares of U.S. adults said they support (37%) and oppose (34%) brands’ leveraging AI-produced spokespeople in their marketing materials. More than half (52%) of millennials expressed support for the practice, making them the most enthusiastic of any major demographic group.

Consumer Spending Dropped Sharply in March

Morning Consult

How SPO is driving ad tech’s decarbonization push

Ronan Shields, Digiday

“Sustainability” is one of the latest buzzwords in ad tech with it driving many of the public talking points on the contemporary conferences circuit as marketers attempt to define themselves as purpose-driven.

Sam’s Club Retail Media Network Names Tech and Agency Partners

Jack Neff, Ad Age

Walmart sibling starts with group of five, including CommerceIQ, Pacvue, Skai, Flywheel and Stackline.

Nearly Half Of New Subs Find Netflix’s Ad Load ‘Heavy’

Wayne Friedman, MediaPost

Although Netflix’s new ad-supported option is comparable to other streaming services — about five minutes per hour of programming — nearly half of Netflix’s new customers believe its advertising messaging is either “a bit too much” or “far too much.”

Americans Get Nostalgic for the Cable TV Experience

Sarah Krouse and Jessica Toonkel, The Wall Street Journal 

Free streaming services Pluto TV, Tubi, Xumo Play and others show classic TV shows with ads, easing decisions for those overwhelmed with options. 

Tucker Carlson’s exit from Fox News may be ratings bane, advertising boon

Aditya Soni and Nivedita Balu, Reuters

Star host Tucker Carlson’s abrupt exit from Fox News is likely to hit short-term ratings but could nudge more mainstream advertisers to consider a network they have snubbed for being too partisan, investors and analysts said. 

Nate Silver Out at ABC News as Disney Layoffs Once Again Hit News Division

Alex Weprin, The Hollywood Reporter

ABC News is expected to retain the FiveThirtyEight brand, with plans to streamline the data-driven site.

Crooked Media Takes on British Politics

Desiree Ibekwe, The New York Times

The company behind “Pod Save America” is starting a British version of the popular liberal show.

Fox Has a Secret ‘Oppo File’ to Keep Tucker Carlson in Check, Sources Say 

Diana Falzone and Asawin Suebsaeng, Rolling Stone

Eight sources tell Rolling Stone that the network’s top brass has been stockpiling information on the departing primetime host.

Yahoo acquires social sports betting app Wagr 

Paul Sawers, TechCrunch

Yahoo today announced that it has acquired Wagr, a three-year-old social sports betting startup based out of Nashville. Terms of the deal were not disclosed.

Warner Bros. Discovery previews a stacked film slate, centered around this summer’s ‘Barbie’

Sarah Whitten, CNBC

Warner Bros. Discovery put “Barbie” at the center of its CinemaCon studio presentation on Tuesday, with executives and Hollywood stars clad in various shades of pink.

Endeavor Sells IMG Academy to Private Equity Firm BPEA EQT for $1.25B

Alex Weprin, The Hollywood Reporter

The sale of IMG’s education business comes a decade after WME first acquired IMG.

TikTok, Twitter, Meta Face Countdown to Comply With West’s Toughest Content Law

Sam Schechner and Kim Mackrael, The Wall Street Journal

Rules to cover 19 platforms and search engines deemed ‘very large’ by the EU’s new Digital Services Act.

US officials seek to crack down on harmful AI products

Matt O’Brien, The Associated Press

The U.S. government will “not hesitate to crack down” on harmful business practices involving artificial intelligence, the head of the Federal Trade Commission warned Tuesday in a message partly directed at the developers of widely-used AI tools such as ChatGPT.

Spotify CEO says AI progress is both “really cool and scary,” may pose risk to creative industry

Sarah Perez, TechCrunch

In its first-quarter earnings call, streaming music service Spotify talked in more detail about how AI advances are impacting its business. 

Apple Plans AI-Powered Health Coaching Service and Mood Tracker

Mark Gurman, Bloomberg 

Move is part of iPhone maker’s push into health services.

Coke says increased digital focus is driving a difference with consumers

Peter Adams, Marketing Dive

The Coca-Cola Company called out a growing reliance on digital marketing initiatives to connect with consumers on a call discussing first-quarter earnings. The company saw organic revenue up 12% year-over-year over the period, largely driven by higher prices. 

Barbie’s Marketing Leader Lifts the Curtain on Its First Down Syndrome Doll 

Leslie Blount, Adweek

Diverse dolls now make up half of the Mattel brand’s sales, marketing executive told Adweek.

Global retailers seek new ways to lure in shoppers as spending slows

Helen Reed and Corina Pons, Reuters

Europe’s cost of living crisis has benefited discount retailers but mid-market names are being squeezed as shoppers watch their spending, executives and analysts at an industry conference said on Tuesday.

Agencies partner with platforms like Instacart as retail competition increases

Antoinette Siu, Digiday 

Agencies are increasingly partnering with social and retail platforms to gain an edge in reaching consumers with direct access to their data.

Puma is asking young environmentalists to critique its sustainability strategy 

Ellen Ormesher, The Drum

The sportswear brand says it wants to give young people a seat at the table on the issues that will affect their futures.

Away to open its first new retail store since 2021 

Anna Hensel, Modern Retail

After putting retail expansion on pause during the pandemic, Away is opening a new store in San Jose, California later this week. 

Gap Plans to Lay Off Hundreds of Corporate Workers in Latest Cuts

Suzanne Kapner, The Wall Street Journal

Retail chain to shed larger number of workers than it did in September.

Yelp is using AI to help users write reviews

Michelle Cheng, Quartz

Yelp joins the ranks of companies deploying large language models to improve their offerings. 

Why do we all use the same buzzwords? 

Rebecca Fulleylove, Creative Review

When talking about creative people and work, we often use stock phrases and words to describe things. So how do we make sure our ‘blue sky thinking’ is understood?

BBDO Warns Against Generative AI for Client Work

Aleda Stam, Ad Age

BBDO Worldwide President and CEO Andrew Robertson encourages exploration but raises copyright concerns.

Gen Z is at the top of bosses’ firing list because they think they’re the most difficult generation to work with 

Chloe Berger, The Wall Street Journal

Just like parents, bosses have their (not so) secret favorites. And when it comes to being managers’ pet, the most junior employees in the office are not often selected. Nearly three-fourths of managers find Gen Z to be the most difficult to work with, according to a Resume Builder survey of 1,300-plus managers and business leaders. 

So Many Ways to Communicate at Work, So Many Ways to Misfire

Anne Marie Chaker, The Wall Street Journal

Workplaces have become saturated with ways to talk, often breeding mistakes and misunderstandings.