Last week was a particularly chaotic and controversial week for advertisers, social platforms, and big brands alike. Catch up on the latest news and learn what it means for the marketing industry as a whole in our Weekly Must Reads.  

The Downfall of Ye & Adidas 

Last week was disastrous for the rapper Ye, formerly known as Kanye West. Following a series of antisemitic remarks, Ye was dropped from nearly every brand partnership he had. One of those brands was Adidas, which had worked with Ye for years on the popular Yeezy shoe line. However, despite Ye’s remarks and reports that he recently harassed Adidas employees, it still took the footwear brand a week of review to decide it would terminate the partnership. While other companies swiftly announced the end of their deals with Ye, why did it take Adidas so long?  

One major reason was the financial implications of dissolving the partnership. Yeezys represented nearly 10 percent of Adidas’ total annual revenue, and the brand has already experienced falling sales this year. Unfortunately, Adidas’ indecision may have further damaged their reputation, as many now see their decision to terminate as a pure PR move rather than a desire to stand up to hate speech. Continue reading about the ongoing controversy here: https://slate.com/business/2022/10/adidas-kanye-west-dropped-why-explained.html 

Elon Musk Officially Acquires Twitter 

After much debate and anticipation, Elon Musk finally and officially took ownership of Twitter last Thursday. It didn’t take him long to start making changes. Within hours, Musk reportedly fired CEO Parag Agrawal and several other top executives. He also tweeted, “The bird is freed,” likely referencing his goal to facilitate a more absolutist approach to free speech and reinstate previously banned users.  

To quell fears about what the future of the platform holds, Musk penned an open letter to Twitter advertisers. Musk stated he would not let the platform become a “free-for-all hellscape,” and explained that he wants Twitter to become the biggest and most respected advertising platform in the world. Whatever changes come to Twitter in the coming months, it seems clear that the change of leadership will usher in a new era for digital news sharing and public discourse. Learn more about the acquisition here: https://www.cnn.com/2022/10/27/tech/elon-musk-twitter/index.html 

Meta’s Big Problems 

Twitter isn’t the only social media platform facing major problems. Meta, who owns Facebook and Instagram, has been on a slippery slope for months, and last week revealed they saw another quarter with declining revenue. The company’s stock is now down 61 percent on the year. The company’s current slump has several sources: slowed user growth, a weakened ad model, and risky spending on the mysterious metaverse.  

While investors worry about how Meta can turn its business around, developers are also dealing with a new policy from Apple. The tech giant rolled a new operating system for iPhones last week, and one of the updates will require apps like Facebook to pay Apple a 30% fee on users’ boosted posts. This new policy will take a significant chunk of Meta’s earnings and signals that Apple won’t hold back from making consequential decisions about advertising on iPhones. Dive deeper into the story here: https://apnews.com/article/technology-business-earnings-reports-8d24203456813802a4239e54d1b444d4 

Oscar Mayer Trolls Vegans 

On a lighter note, Oscar Mayer’s latest ad campaign is targeting wavering vegans. In honor of World Vegan Day tomorrow, the brand is giving away a lifetime supply of bacon to a consumer who pledges to “bacOFF” (aka not eat bacon) on the holiday. The contest is meant to encourage meat-eaters to stand with vegans for at least one day a year, while also nudging them toward their “gateway meat.” According to recent research from Oscar Mayer, 53% of vegans who leave the diet do so in order to eat bacon. 

To enter the giveaway, consumers must tag two friends in a post on Oscar Mayer’s Facebook, Instagram, or Twitter page and include the hashtags #OscarMayerBacOff and #Sweepstakes. In support of the campaign, the brand will also blur out any images of bacon on their social pages and ads. Find out more details here: https://www.marketingdive.com/news/oscar-mayer-lifetime-supply-bacon-world-vegan-day/634982/