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Credit at maturity
Credit card companies and old-school banks are getting into tech and media startups.
Mastercard was one of the first acquirers of CDP with SessionM and in September purchased the Dynamic Yield marketing personalization service from McDonald’s. Last year, American Express invested in live shopping ad tech company Firework. JPMorgan Chase, meanwhile, acquired online food publisher The Infatuation last year.
The latest example comes courtesy of Capital One, which announced it will expand a strategic partnership with travel booking service Hopper through a $96 million investment. Skift reports.
When credit cards and banks own the digital media touchpoints themselves, they can create new ways to market key business lines. American Express members, for example, get exclusive access to Resy, the restaurant booking platform AMEX acquired in 2019. It also explains why The Infatuation, which owns restaurant recommendation business Zagat, has makes sense as a Chase acquisition…even if it’s also nice. to not.
These companies also all learned a tip or two from Google and Amazon about the value of first-party data fortresses (and the potential profitability of high-margin ads).
“The funds will be used to accelerate the company’s growth on multiple fronts, including fueling its new social commerce initiatives,” Hopper said in reference to Capital One’s investment.
Shorts, YouTube’s TikTok clone, is now available on your living room TV screen.
YouTube sees Shorts as a “gateway” to interactivity on TV, says Shorts product manager Todd Sherman The edge.
When browsing short video streams, users are usually in the mood to share content and bounce between different topics. It will be a coup for YouTube if it can transpose this same behavior to television. Many have tried (and many failed) to bring interactivity to television.
QR codes are trying, but getting people to use a remote or their voice to engage with the screen on the wall just hasn’t caught on – but it’s natural to do it on a phone.
It was only a matter of time before GoogleTube decided to crush Shorts on TVs. Every ounce of soft, sweet CTV inventory counts.
The tricky part is going from vertical video shorts to rectangular TV screens. After all, flattening a vertical Shorts video (many of which start life as TikTok posts) in landscape mode would make YouTube a joke forever among TikTokers.
But YouTube has already taken the same leap go the other way, which is more difficult, so who knows. A new YouTube product announced in September reuses horizontal videos for vertical media first.
Direct answer, correct answer
The Twitter/Musk speculation is pretty much its own news beat these days.
But Twitter has always punched above its weight when it comes to driving news and conversation, even though relatively few people are on Twitter and it makes relatively little money. Ben Thompson of Strategy notes in yesterday’s newsletter that he stopped covering Twitter’s earnings years ago because “the company’s share of attention was not commensurate with its financial performance”.
His thoughts since getting back into numbers?
“Wow, things have been kind of a mess the last few years.”
And, unfortunately, Twitter is sensitive, even fragile, to the exodus of advertisers. Facebook, YouTube and TikTok have resisted major advertiser pushbacks. But if Mondelez walks from Facebook, there are a hundred DTC startups in a slew of categories happy to take inventory.
But Twitter is “the anti-Facebook in this respect,” writes Thompson. With no direct-response advertising business, Twitter relies on brand advertisers – the very type that can’t stand the new owner. If Twitter was driving sales, signups, or downloads, it’s only fair that advertisers magically care about a right-wing owner’s brand association.
But wait, there’s more!
These are the six most expensive and publicized midterm races in the U.S. Senate. [Ad Age]
OpenAI, Microsoft and GitHub face class action lawsuit to train AI on open code and content. [The Register]
The NAACP says it’s not impressed with Musk and urges advertisers to stop spending on Twitter. [Adweek]
GOP senators are calling on the FTC to stop pursuing its privacy rulemaking process. [MediaPost]
Creators say their payouts from TikTok Pulse are falling flat. [Insider]
Programmatic advertising platform Pontiac Intelligence launches connected TV bidder. [release]
You are engaged!
Demand generation company Orange142, which is owned by Digital Direct Holdings, has appointed Scott Schult to the newly created role of Chief Strategy Officer. [release]
Gray NY CEO Amber Guild leaves to join McCann New York as Managing Director. [Ad Age]