Morning Consult Brands: What’s Ahead & Week in Review




 


Brands

Essential marketing and PR news & intel to start your day.
September 18, 2022
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Good morning, and welcome back to Morning Consult’s Sunday Brands newsletter! 

 

I regret to inform you all that Kanye West, the rap star whose legal name is Ye, has ended his partnership with Gap Inc. after just two years. He told the retailer he was unhappy with the pace at which it was making his branded items available in stores, while Gap told employees that the company was not aligned with West on how to achieve their shared vision. Either way, the Yeezy Gap brand is dead, just ahead of the holiday shopping season.

 

It’s a shame, because American consumers continue to say they plan to do about as much shopping this fall as last year despite ongoing inflation, according to a recent Morning Consult survey. Can you guess the percentage of shoppers who plan to spend more over the holidays this year compared to 2021?

 

A) 2%

B) 7%

C) 12%

D) 17%

 

Read to the bottom of today’s newsletter for the answer.

 

What’s Ahead

Queen Elizabeth II’s funeral is tomorrow at Westminster Abbey. It will be a bank holiday in the United Kingdom. Many shops, brands and retailers, including McDonald’s Corp., will close their U.K. locations for the day.

 

Digiday’s Publishing Summit runs Monday through Wednesday in Miami. Speakers include executives at NBC News, Vox, BuzzFeed, Vice News and more.

 

Fast Company’s 2022 Innovation Festival runs Monday through Thursday in New York City. The annual conference, featuring speakers from a variety of industries, returns in person with a stacked lineup that includes A-listers Jennifer Garner, Judd Apatow, Billy Eichner and Jamie Lee Curtis alongside execs at Airbnb Inc., Twitter Inc., OnlyFans, Beyond Meat Inc., SeatGeek and more.

 

Ad Age hosts a virtual talk on audio on Tuesday. Audacy Inc. Chief Revenue Officer Brian Benedik discusses why there’s never been a better time for advertisers to get more involved with audio.

 

“Andor” premieres on Disney+ on Wednesday. A prequel to the Star Wars spinoff film “Rogue One,” the TV series is Walt Disney Disney Co.’s fourth original Star Wars show to debut on the streaming service, with more on the way.

 

VidCon Mexico runs Friday through Sunday in Mexico City. Dozens of high-profile Spanish-speaking digital creators, executives and innovators are scheduled to speak at the annual event.

 

“Don’t Worry Darling” premieres Friday. Following a monthslong public relations debacle over rumored drama on set, director Olivia Wilde’s psychological thriller will finally hit theaters. Its box-office haul may shed some light on if all PR really is good PR.

 

Week in Review

  • Kanye West is terminating his partnership with Gap Inc., the retailer confirmed in a memo to employees that was reviewed by The Wall Street Journal. Gap said it was “not aligned” with the rap star on how to achieve their shared vision for the Yeezy Gap brand, which was announced in 2020 and almost immediately showed signs of trouble when West threatened to withhold the clothing line unless he was given a board seat. (The Wall Street Journal)
  • Surveys of creators show that Instagram lags behind TikTok and YouTube in creator satisfaction, Instagram CEO Adam Mosseri admitted to staff in a memo seen by The Information. Mosseri also said the company established a new team to drive growth among teens as it struggles to attract younger users. (The Information)
  • Patagonia Inc. founder Yvon Chouinard and his family are transferring ownership of the $3 billion outdoor apparel company to a nonprofit organization and trust in order to fight climate change. The trust, managed by members of the family and its advisers, owns 2% of Patagonia, while the other 98% is now owned by the Holdfast Collective, a nonprofit that will receive all of the company’s profits. (The New York Times)  
  • Amazon.com Inc. will allow brands to email shoppers directly through a new “Tailored Audiences” tool in a bid to boost sales, the e-commerce giant announced on Wednesday. While the move risks alienating customers with spam, brands and merchants have long complained that Amazon makes it difficult for them to develop relationships with shoppers who buy their products through the platform. (Bloomberg)
  • Starbucks Corp. plans to build 2,000 new U.S. locations by the end of 2025 and upgrade its cafes with new equipment and technology in order to speed up service, the company revealed at its annual investor meeting on Tuesday. Starbucks will also link its rewards program to those of airlines and other retailers with the first partnership to be announced in October, CMO Brady Brewer said. (CNBC)
  • Peloton Interactive Inc. co-founders John Foley and Hisao Kushi abruptly left the company as part of an ongoing management shakeup under new CEO Barry McCarthy. Foley resigned as CEO to become chairman in February as demand for the fitness company’s products waned and its stock plummeted. (Financial Times)
  • In an interview, Walt Disney Co. CEO Bob Chapek suggested the entertainment giant will not sell ESPN despite interest from several companies. Following Chapek’s remarks, Dan Loeb, an activist investor whose hedge fund owns a $1 billion stake in Disney, pulled back from his call for the company to sell the flagship sports network, saying he now better understands its “potential as a standalone business.” (Financial Times)
  • Roblox is drastically expanding its advertising business by introducing a new immersive system that will allow brands to advertise on interactive billboards inside the gaming platform, Roblox Corp. CEO David Baszucki announced at the company’s annual developer conference. The ad expansion is designed to help brands better target the game’s millions of young users — the majority of whom are now over the age of 13. (The Verge)
 
Stat of the Week
 

40 million

The number of unique viewers to Netflix’s upcoming ad-supported tier the company expects to have by the third quarter of 2023. Earlier this year, the streaming giant announced it was reversing a longstanding creed to never show commercials and will launch a cheaper version of its service with ads in November. Advertisers are reportedly foaming at the mouths to work with Netflix for the first time, though that’ll likely come at a premium given the service’s massive subscriber base.

 
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