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Podcast Video Makes Advertising Less Predictable; Costco Puts Members on a Plane to Keep Them Coming Back; Ben Cohen Rings the Alarm at Ben & Jerry’s
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Good morning. Today, podcast advertisers find themselves on camera; Costco’s $1.50 hot dogs overshadow another savvy strategy; and social causes in marketing seem headed for another test.
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Thomas R. Lechleiter/WSJ
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The “new media” phenomenon of podcasts (now more than 20 years old—check out the scare quotes in this 2005 headline) has changed as producers embraced YouTube simulcasts, creating new wrinkles for marketing friends of the pod.
That’s the takeaway from a study of podcasts that add a camera to the studio, The Wall Street Journal Leadership Institute’s Katie Deighton writes:
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Host-read podcast ads on YouTube are up to 25% less effective at driving purchases than in audio-only environments, according to research on more than 1,000 campaigns that was conducted by the marketing agency Oxford Road and the audio measurement firm Podscribe.
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Google points out in response that marketers recognize the distinction between audio-only services and its video ad offerings.
But the result is noteworthy because Google’s walled garden approach to metrics makes it hard for advertisers to track campaigns across video and audio-only, according to Giles Martin, executive vice president of strategy at Oxford Road, which used promo codes and surveys to gauge outcomes.
So what should marketers do?
The password manager 1Password says video improved its podcast results because visuals can convey its product more efficiently and effectively.
Patient outreach helped.
“It does take a moment of time to forge that personal relationship with the host,” CMO Melton Littlepage told Katie, “but when they deliver a message about a sponsored product authentically in the tone and style of the podcast, audiences don’t click off.”
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Content from our sponsor: Deloitte
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Agentic Commerce: Strategic Implications for Retail Brands
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In the next stage of AI-powered shopping, AI agents may research products and make purchases on behalf of consumers. Retailers that adapt to agentic commerce early could gain an edge. Read More
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Costco calculates that helping members book vacations will keep them in the fold. Illustration: Antonio Giovanni Pinna
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You may have heard more about Costco’s eternally $1.50 hot dog deal than the warehouse retailer’s travel business, but the strategy is just as smart.
While bookings are growing, topping more than $100 million in the five days after Thanksgiving alone, that’s only part of the play, Journal travel columnist Dawn Gilbertson writes.
Memberships are Costco’s lifeblood: They bring in $5.3 billion of its $275 billion in annual revenue but the bulk of its profits. Costco says it mainly sells vacations because its members like to travel.
Satisfied members renew and upgrade their memberships, maybe even sign up for the Costco credit card.
Many Costco bookings also include a Costco gift card for use after the trip. Costco knows that money, and likely more, is going back into the store when travelers redeem the cards.
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“To me, Autopilot means it can drive itself or do things on its own.”
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— Melanie Rosario, a commander-sergeant at the California DMV, during testimony on Tesla advertising in July. State regulators have given Tesla 90 days to change its marketing after an administrative law judge said it deceived consumers by falsely implying its cars could drive by themselves.
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The Cold War Over Ben & Jerry’s
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Ben Cohen, co-founder of Ben & Jerry’s, says ownership is risking the brand’s ‘soul, credibility and worth.’ Oliver Parini for WSJ
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The battle over social causes and brand identity continues.
Ben & Jerry’s co-founder Ben Cohen is accusing new parent company Magnum Ice Cream of trying to dismantle the brand’s social mission.
Jochanan Senf, named CEO of Ben & Jerry’s by Magnum earlier this year, plans to set a nine-year term limit for board directors—a move that will push out three current members, Aimee Look reports.
Cohen said that strips the board of the legal authority agreed upon when Unilever bought Ben & Jerry’s in 2000, stipulating that the board would handle decisions about the brand’s mission and marketing.
Unilever and the board then clashed for years over Ben & Jerry’s stances on geopolitics, particularly the Israel-Gaza conflict. Magnum went public earlier this month following a spinoff from Unilever.
“This is a calculated escalation,” Cohen said. “Magnum is hollowing out the very things that give Ben & Jerry’s its soul, credibility and worth.”
Senf said the changes will strengthen governance and help “drive progressive change for years to come.”
If events go the way Cohen predicts, we’ll soon find out a lot more about the role that social activism plays in the success of Ben & Jerry’s.
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$13.2 billion
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Sotheby’s and Christie’s total sales in 2025, up from $11.7 billion the year before. After a two-year slump, sales surged across nearly every category at the world’s chief auction houses as younger collectors paid more for luxury goods and seasoned buyers competed for masterpieces from prestigious estates.
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The community where marketing leaders drop the corporate speak and share what’s actually happening. The WSJ CMO Council unites leaders from the world’s most influential brands including Adobe, Audi, Google, IBM, Intel, Johnson & Johnson, Meta, Taco Bell, P&G and Verizon.
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Hudson Williams as Shane Hollander and Connor Storrie as Ilya Rozanov in an episode of ‘Heated Rivalry’ on HBO Max. Sabrina Lantos
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The booming hockey romance book genre goes beyond “Heated Rivalry,” whose adaptation is burning up HBO Max, with other titles including “Hockey With Benefits,” “Body Check” and “Puck and Prejudice.” [WSJ]
PepsiCo’s Super Bowl ad lineup of Pepsi Zero Sugar, Poppi and Lay’s says a lot about its read on shifting consumer demand. [Ad Age]
Taco Bell is bringing back its Quesarito, a beef burrito in a quesadilla that’s been off menus for more than 10 years. [Restaurant Business]
Former U.K. Chancellor George Osborne joined the maker of ChatGPT to lead its "OpenAI for Countries" program. [BBC]
Pacsun is the latest Y2K brand to mount a comeback, opening more stores than it closed for the first time in 18 years. [Modern Retail]
BMW’s new, subtly flatter logo is generating complaints and shrugs. [Creative Bloq]
Warner Bros. Discovery recommended shareholders reject Paramount’s unsolicited all-cash bid for the company, calling it “illusory” in a letter to shareholders. [WSJ]
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