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Advertisers Push Big Tech to Adopt Standards for Transparency in Ad Sales; Who Wants to Smell Like a Doughnut?; Tesla Debuts Cheaper Versions

By Nat Ives

 

Good morning. Today, bidders press to know the rules of online ad auctions; the big divide over the latest body care craze; and Tesla’s much-needed stripped-down versions finally roll up.

An office building with the company name Boehringer Ingelheim on the side

German pharma giant Boehringer Ingelheim wants more transparency from the online ad auctions where it spends tens of millions of dollars, U.S. ad exec Katherine Freeley says. Photo: Reuters

Some of the advertising industry’s largest players have joined to propose new standards in the digital auctions that increasingly dominate ad sales, Patrick Coffee reports for CMO Today.

Ad platforms that adopt the standards would agree to reveal information that they often hold tightly today, including:

  • the types of auctions they run,
  • how they decide winners,
  • what factors determine pricing
  • and when changes occur.

The proposed disclosures matter to advertisers’ choices and strategies because these auctions don’t always go to the top bidder, and the ultimate price isn’t necessarily what the winner bid.

“We’re trying to bring sunlight into the ecosystem,” said Ben Hovaness, chief media officer at OMD Worldwide, who approached the Media Rating Council nearly two years ago to begin developing the standards. The proposal also reflects contributions from the major trade groups representing advertisers, agencies and the digital ad industry.

The lack of transparency to date has increased buyers’ costs and reduced sellers’ revenue over the years by billions of dollars, Hovaness estimated.

 
Content from our sponsor: Deloitte
Strategic Pricing in Today’s Economy: Be Agile, but Think Long-Term

As companies manage shifting costs, it’s important to align price with value to drive long-term sustainable growth. Read More

More articles for CMOs from Deloitte
 

Scent of a Doughnut

Body care products in sugary scents

Crumbl, Dunkin’ and Milk Bar have all partnered with personal-care brands. Photo: Elizabeth Coetzee/WSJ

Body-care brands are all in on sugary scents, Natasha Khan writes.

Dove partnered with Crumbl cookies on Lemon Glaze body scrubs and Confetti Cake body washes. Personal-care company Native and Dunkin’ Donuts created Vanilla Sprinkle deodorants, Blueberry Cobbler lotions and Boston Kreme shampoos. Bath & Body Works and Milk Bar bakery launched Birthday Cake body sprays and hand sanitizers.

The companies say people are looking for sensory experiences that provide an escape and evoke fond memories. 

Of course, one person’s happy doughnut memory is another person’s invasion. Brand innovation agency owner Lynn Altman said she gets the lurch toward new product experiences but remains a hard no on this trend.

“Personally, I’m skipping the Strawberry Frosted pits,” said Altman, referring to one of the deodorant scents from the Native collection. 

Brands know the scents can be polarizing, but that can be the point. Part of what makes these product launches work, companies say, is the endless debate over “Would I wear that?”

 

Quotable

“That’s a very scary place to be in as an entrepreneur.”

— Brian Butler on the impact of the federal government shutdown on his marketing and communications firm, Vistra Communications in Lutz, Fla. He laid off 5 of 80 employees after the shutdown triggered a stop-word order on one project and doesn’t know when he’ll be paid for other work already done.
 

Reduced Charge

A white Tesla Y near people picnicking under string lights

The new, cheaper version of the Tesla Y costs $39,990. Photo: Tesla

Tesla has unveiled stripped-down versions of its bestselling SUV and sedan, finally delivering long-promised cheaper models, Becky Peterson writes.

The new “standard” Model Y and Model 3 lack features such as wraparound ambient lighting and power-adjusted steering wheels, and in turn rank among the least-expensive EVs for sale in the U.S. They also better position Tesla to compete globally against low-cost EVs coming out of China.

With a range of 321 miles, both vehicles offer slightly less battery performance than pricier versions but outperform other Tesla models.

The new lower prices don’t, however, quite cover the recently expired $7,500 EV tax credit.

The standard Model 3 costs $36,990, for example, compared with the next-cheapest Model 3’s price of $42,490.

 

The Magic Number

93%

Vacancy rate at San Francisco Centre, according to commercial-real-estate data firm Trepp. Mayor Daniel Lurie says he’s working to clean up the streets downtown to encourage investment in the mall, a one-time top performer among Bay Area malls that still hasn’t escaped a death spiral brought on by the pandemic.

 

The WSJ CMO Council Summit

This Nov. 18 and 19, CMOs will gather in New York for The WSJ CMO Summit to explore fan-fueled growth, AI in marketing and the evolving CMO–CEO partnership. Join the CMO Council and be part of the conversation shaping the future of marketing leadership.

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Keep Reading

Ted Cruz walks in a suit and tie

Sen. Ted Cruz (R., Texas) wants to make it easier to sue the government for censorship. Photo: Andrew Harnik/Getty Images

Sen. Ted Cruz plans to introduce a bill to better protect consumers from government censorship, a move that comes weeks after he criticized the Trump administration’s push to have Jimmy Kimmel taken off the air. [WSJ] 

Domino’s debuted its first big rebrand since 2012, including a new look for its pizza boxes, a jingle by Shaboozey and a trademark for “Dommmino’s.” [Adweek] 

Papa Johns is parting ways with the Martin Agency and beginning a review for a new creative agency. [Ad Age]

OpenAI’s latest updates threaten to transform vibe marketing from a joke into an actual strategy. [Digiday] 

Spike Jonze’s 30-minute film for Gucci includes a brief section made with AI, but advocates for the tech shouldn’t celebrate too much. [Creative Bloq] 

AI-fueled content farms are circulating fake headlines that Coca-Cola pulled a Super Bowl sponsorship over Bad Bunny’s planned halftime performance. Among other problems with those “reports”: Coke isn’t a Super Bowl sponsor in the first place. [NewsGuard]

 
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We bring you the most important (and intriguing) marketing and experience news every day. Write me at nat.ives@wsj.com any time with feedback on the newsletter or comments on specific items. We want to hear from you.

And follow the CMO Today team on X: @wsjCMO, @megancgraham, @dollydeighton, @patrickcoffee and @natives.
 
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