The death of TV ads; Amazon’s ad problem; Frito-Lay rethinks its products


stranger things

"Stranger Things"
Netflix

Good morning from New York's Advertising Week, where declining trust in the media, ad avoidance, and privacy concerns are high on advertisers' minds.

Here's what's kept us busy when we're not moderating and jumping in and out of sessions:

One big theme of the TV business upheaval is that the services that are replacing it are often of the ad-free variety. That leaves longtime TV advertisers in a pickle. My former colleague and ex-BI advertising editor Mike Shields argued in this analysis, his first of what I'm excited to say will be a recurring column, that old-fashioned TV ads are increasingly unwelcome in the streaming environment.

Disney and Apple are sending a pretty clear message: Traditional TV ads are dead

Meanwhile, senior reporter Lauren Johnson talked to a top exec at the holding company giant Omnicom about how it's getting around the rise of ad-free environments by cozying up to them.

With the TV business in flux, Omnicom is betting on Amazon and Netflix partnerships to reach TV-like audiences

This is a problem of TV networks and advertisers' own making, but now advertisers are finding the consumers they most covet are becoming the hardest to reach, I wrote earlier this year. 

People are flocking to Netflix and Hulu, and it's a growing concern for advertisers needing to market to the rich

Hulu for its part is working on a new, AI-informed format to make sure it doesn't turn off heavy users.

Hulu is preparing a new type of ad designed to be less annoying for binge-watchers

The ad saturation problem is even hitting Amazon's platform, which is already getting too crowded for some advertisers' taste, Lauren reported this week. 

'It feels as though lots of brands are getting hijacked': Some marketers say Amazon is too crowded with ads, and they're trying new ways to break through

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Meanwhile, more from advertising correspondent Patrick Coffee on McDonald's' big agency change. The fast-food giant shocked the ad world when it dumped holding company giant Omnicom. These internal docs show how the holding company pitched and won the $800 million business by positioning Omnicom as unique, even though rivals were taking similar approaches.

Internal documents reveal how ad holding company giant Omnicom won the $800 million McDonald's account and used its model to pitch other advertisers

And for fun: Patrick reported on how McDonald's rejected this idea from its former agency — and it shows the day-to-day back and forth that happens between clients and their agencies. I for one would have found a use for an all-bacon record.

McDonald's and its ad agency sparred over a bizarre campaign stunt involving an LP made entirely of bacon. The agency later lost the majority of the account.

Lauren's also working on our first list of executives who are reshaping martech. Send her your nominations here by Oct. 4.

McDonald's rival Burger King meanwhile is doing something right when it comes to its ad campaigns. Its CMO broke down for senior reporter Tanya Dua how the burger chain wins all those awards.

Burger King's buzzy marketing is boosting sales and sweeping all the awards. Here's the internal memo sent by CMO Fernando Machado that reveals its secret sauce.

Elsewhere, traditional packaged foods makers are finding their products need to evolve as people look for healthier options. Tanya wrote about how Frito-Lay is adjusting to frequent snacking and a demand for healthier foods and personalized options.

A top Frito-Lay exec lays out the biggest trends shaping the food snacks industry — and how the CPG giant is recalibrating to keep up

Here are other great stories from media, marketing, and advertising. (You can read most of the articles here by subscribing to BI Prime; use promo code AD2PRIME2018 for a free month.)

IAC's Dotdash got profitable by shunning the sexier parts of digital media, and now it's applying that playbook to online beauty

The former Netflix exec leading BET Plus breaks down his launch strategy for the streaming service, from price to target audiences

Inside the toy business of YouTube star Ryan ToysReview, the 8-year-old boy who makes $22 million per year

BuzzFeed, which laid off 15% of its staff earlier this year, has made a big new hire to grow its news business

Bloomberg News just announced a slew of changes, showing where the company is placing its bets

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