Digital Debrief 4.24.2024

Breaking — Summary of TikTok Legislation and Implications

Legislative Action:

• President Biden's Signature: President Joe Biden has signed into law a bill mandating TikTok to disassociate from its Chinese parent company, ByteDance, within nine to 12 months or face a nationwide ban. This provision was part of a $95 billion foreign aid package that fast-tracked its passage through both chambers of Congress.

Corporate Response:

• TikTok's Opposition and Legal Plans: TikTok has announced plans to challenge the law in court, citing an internal memo reported by Bloomberg. The company labels the legislation as a violation of First Amendment rights and prepares for a vigorous legal defense. TikTok CEO Shou Zi Chew has been vocal in mobilizing support against the ban, emphasizing the platform's significant impact on users' lives. See Shou Zi Chew’s response below:

• Potential Complexity in Divestiture: The process of finding a buyer for TikTok is complicated by the app's high valuation, likely in the tens of billions of dollars, and antitrust concerns. Even if a buyer is found, separating TikTok from ByteDance is expected to be challenging.

Implications for Other ByteDance Apps:

• Broader Impact on ByteDance's Portfolio: The legislation's broad language could also impact other popular ByteDance apps in the US, such as the video editing app CapCut and the photo editing app Hypic, raising the possibility of these apps facing similar restrictions or bans.

Implications for Marketers:

• Strategic Uncertainty: The potential TikTok ban introduces significant uncertainty for marketers, especially those who rely on the platform's vast, predominantly young demographic, in addition to the sense of community that has been fostered on the platform. However, due to the timeline of the ban, marketers are taking a wait-and-see approach, closely monitoring developments.
• Need for Diversification: Although not of immediate concern, marketers should consider diversifying their social media strategies to mitigate potential impacts, possibly increasing their presence on alternative platforms like Instagram Reels and YouTube Shorts.
• Monitoring Legal Developments: Ongoing legal battles could affect TikTok's operational status in the US, necessitating that marketers stay informed and adaptable in their planning.

Additional Considerations:

• Geopolitical Tensions and Tech Scrutiny: This situation underscores the growing scrutiny of tech companies in national security contexts and reflects broader geopolitical tensions between the US and China. It also highlights the increasing concerns over privacy, security, and foreign influence through technology platforms.

Read more:

• Washington Post?
• The Information?
• Forbes
• Variety?
• Social Media Today

Artificial Intelligence (AI) & Search?

• The Wall Street Journal reported that the surging demand for AI technology drives an unprecedented global rush to construct data centers in conventional and unconventional locations. The industry is resorting to inventive solutions as it faces a shortage of crucial parts and the need for reliable, affordable power. Amazon's recent acquisition of a data center near a nuclear power plant in Pennsylvania and the appearance of data centers next to a volcano in El Salvador or within shipping containers in Africa exemplifies this trend. Essential equipment like backup generators now face two-year delivery delays due to AI's growing energy demands pressuring electrical grids. OpenAI CEO Sam Altman is tackling this by backing startups that offer clean energy solutions for data centers. According to an Amazon Web Services executive, this rapid expansion challenges existing infrastructures, with a new facility emerging every three days.
• Meta has joined the "Safety by Design" initiative with major tech firms like Google and Microsoft to combat the misuse of generative AI in creating harmful content, including child exploitation. The program focuses on responsible AI development practices, such as securing training datasets and thoroughly testing AI products to prevent misuse. This collaboration highlights the industry's commitment to enhancing safety measures in AI technology.
• Meta is enhancing its apps, including Facebook, Instagram, WhatsApp, and Messenger, with Meta AI, an advanced AI chatbot powered by Llama 3 technology. This new feature allows users to perform conversational searches and generate content directly within the apps, aiming to improve interaction despite past attempts at similar technology not gaining widespread use.

Marketing, Influencer & Advertising?

• Coca-Cola has introduced Coke SoundZ, an AI-powered instrument that replicates the uplifting sounds of its Zero Sugar soda, such as fizzing and popping. Available as both an app and a physical bottle-shaped instrument, Coke SoundZ aims to provide unique musical experiences by converting the beverage's sounds into melodies. This launch results from Coca-Cola's recent $1.1 billion investment in Microsoft Cloud and its strategic partnership with Microsoft Corp. to enhance its generative AI capabilities. This partnership underscores Coca-Cola's commitment to innovation and confidence in Microsoft's AI technology.

• Saks has boldly stepped into the digital advertising arena by launching a retail media network, aiming to harness the luxury market's untapped potential. This innovative network offers on-site display and sponsored product ads, leveraging its first-party shopper data from a staggering 435 million annual website visits. This strategic move, backed by a recent financial boost from Pathlight Capital and Bank of America, positions Saks as one of the first in the luxury segment to venture into retail media despite the prevailing economic challenges impacting the luxury market.
• Mars has launched the Snickers "Hungry Skies" campaign as part of their global "You're Not You When You're Hungry" initiative, targeting air travelers in over 30 countries through Q1 of 2025. The campaign humorously addresses the stresses of flying, suggesting Snickers as a solution to improve the flight experience. With a focus on digital, social, airport, and in-flight activations, the campaign uses a 45-second ad that portrays a plane calming down after passengers receive Snickers bars, resonating with the increased instances of unruly behavior on flights.

• Sprite is launching a new product called Sprite Chill, which offers a cherry lime flavor with a cooling sensation, alongside a rejuvenated "Obey Your Thirst" campaign targeting Gen Z. The campaign, backed by NBA star Trae Young, uses humor to address the stresses of modern life, positioning Sprite Chill as a refreshing solution. This initiative is part of Coca-Cola's broader strategy to experiment with flavors and sensations that capture cultural trends, aiming to transform Sprite from just a beverage into a lifestyle brand.

• Stella Artois has launched a summer-long marketing campaign as the official beer of the YouTube series "Hot Ones," featuring five episodes and hosting activations in bars nationwide. The campaign, which includes a special episode with Ludacris, aligns with Stella’s focus on enhancing social interactions over meals, a central theme in its marketing strategy. The partnership aims to leverage the cultural appeal of "Hot Ones" to reinforce Stella Artois' position in the market and engage consumers, particularly at live events and bar activations.

• In collaboration with Publicis Brazil, Nestlé's "Unforgettable Recipes" campaign uses food to evoke memory recall in Alzheimer’s patients by recreating their childhood dishes. The campaign includes a film that showcases the emotional moments when these individuals reconnect with their past through taste, highlighting food's powerful connection to memory. This initiative also raises Alzheimer's awareness and invites the public to share their own stories and recipes online.

Social Media

• iHeartMedia and Deep Blue Sports + Entertainment are launching the Women’s Sports Audio Network, a new platform for women’s sports content. This network will feature ad-supported podcasts and daily sports coverage on iHeart’s broadcast and digital channels. The initiative aims to fill a gap in women’s sports representation in media and will include contributions from notable figures like WNBA legend Sheryl Swoopes and ESPN reporter Sarah Spain. The network seeks to enhance visibility and engagement for women's sports, catering to growing audience interest and creating new advertising opportunities.

LinkedIn:

• LinkedIn has shared a new infographic offering B2B marketers advice on optimizing their campaigns amid budget constraints. The tips include using LinkedIn's expansive tools and integrations, flexible bidding and budgeting options, and built-in A/B testing to ensure campaigns are targeted and effective. The platform also highlights the importance of creating a flourishing presence in the marketing ecosystem, utilizing a scientific approach to testing and optimization, and measuring and sharing success in meaningful ways. The infographic suggests marketers leverage LinkedIn’s advanced AI to connect with audiences within a brand-safe environment, maximizing reach and impact. Read the complete guide here.?

Meta:

• Instagram has expanded its creator subscription service, which now supports over 2 million subscriptions, by introducing new features to enhance interaction and protect content. These updates include detailed engagement data for creator stickers, teaser displays for subscriber-only content to entice new subscriptions, and improved security against screenshots and screen recordings. Despite these advancements, the platform notes that only a tiny fraction of its vast user base is engaged in paid subscriptions, highlighting the challenges creators face in monetizing their online presence effectively.
• Meta is set to showcase its latest advertising innovations at IAB Newfronts 2024 under the theme "Forward, Faster." The event will highlight Meta's advancements in AI and expanded opportunities with Reels, featuring discussions led by top executives and industry leaders. The format will mimic a late-night talk show, complete with a live band, focusing on how brands like McDonald's have leveraged Reels for significant business impact. Attendees can expect a mix of live and streamed presentations, with insights into using Meta's new ad tools effectively.
• Meta has launched the "Screen Smart" series, hosting workshops across five U.S. cities to help parents manage their children's screen time and navigate online risks. The events will offer hands-on training and expert advice on effectively using Meta’s safety tools and features. This initiative is part of Meta’s broader efforts to enhance online safety for teens and empower parents with necessary digital supervision skills.
• Amazon has launched a shoppable, ad-supported channel within Prime Video and Freevee. This new feature, which includes content from celebrities and brands, utilizes "shop the show" technology to allow viewers to purchase items directly from their TV screens via mobile devices. This new feature aims to enhance Amazon's advertising revenues by merging streaming with interactive shopping.

X:?

• X has launched a new smart TV app to transform the platform into a video-first destination. The app, which mirrors the functionality of the YouTube app, allows users to navigate and watch video content on TV sets seamlessly. With plans to feature AI-powered trending content and support cross-device viewing, X aims to tap into the increasing popularity of connected TV viewership and enhance user engagement through tailored video offerings.

Pinterest:?

• Pinterest has released its “Pinterest 2024 Travel Report,” highlighting a surge in travel-related searches and saves on the platform. In 2024, trends like adventure travel, increased interest in activities like scuba diving and mountaineering, and quieter experiences like glamping and wellness retreats are gaining popularity. Marketers can leverage these insights, with Pinterest noting significant upticks in searches for specific destinations and travel styles, providing ample opportunities for targeted holiday-themed marketing campaigns.

YouTube:?

• YouTube has introduced "YouTube Select Shorts," a new premium ad placement option that allows advertisers to feature their ads alongside the top-performing Shorts content across five categories: entertainment, Beauty, Fashion and lifestyle, Food and recipes, Gaming, and Automotive. This option gives advertisers more control over their promotional strategies, targeting specific viewer niches for optimal exposure. Shorts now reach 2 billion logged-in users monthly and are increasingly watched on TV, so this could significantly enhance the effectiveness of video advertising campaigns on YouTube. Learn more:

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