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Target's CMO Search Continues; Meta Downgrades Creators; The Pentagon Picks a Fight With Anthropic
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Good morning. This is Patrick Coffee filling in for Nat Ives. Today, Target's CMO search has entered a new phase more than 18 months after it first started.
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Michael Fiddelke became Target's new CEO this month at a tough time for the retail chain. Credit: Alex Kormann/Minnesota Star Tribune/ZUMA Press
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Target’s search for a new chief marketing officer has lasted longer than the tenure of some CMOs.
As part of last week's announcement that the retail giant would lay off 500 workers and shake up its C-suite in the first big move by incoming CEO Michael Fiddelke, Target said it’s now looking to fill a position that combines the roles of chief guest experience officer and CMO.
But the search process officially started in June 2024, so it’s already involved two different titles and, according to a person familiar, more than one executive search firm.
Why is this particular hunt proving so intractable?
For one, the number of qualified executives is exceedingly small, and Target may need to look outside the retail world, according to Issy Perez, managing partner and global practice leader in consumer and retail at search firm Boyden. Target also faces unique challenges as a big retailer whose main competitors are Amazon and Walmart. And on top of that, the last couple of years have delivered a combination of weakening sales and political headwinds in a sector already known for shorter CMO tenures, Perez said.
Fiddelke, as a former chief operating officer, may also be less focused on marketing than predecessor Brian Cornell, who led Target for more than a decade, according to Perez. So candidates will want ask a lot of questions.
“You're going to be very cautious going into this possible assignment,” said Perez.
The incoming CMO will be responsible for a number of complex jobs such as managing Target's retail media arm, Roundel. But his or her top priority will be repairing the Target brand, and that job will require someone with experience rightsizing a national chain, according to Michael Wright, founder of marketing-focused search firm Taligence.
“It's a crisis of reputation that they're in at the moment,” said Wright.
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Content from our sponsor: Deloitte |
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Why Banks Should Treat Gen Z and Millennials as One Segment |
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Converging behaviors across digital adoption, financial apps, and data sharing reveal a unified customer segment with evolving expectations, according to a survey of Gen Z and millennials. Read More
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Sorry, Creators: We've Moved On
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Meta talked a lot about AI on its recent earnings call but didn't mention creators at all. Credit: Carlos Barria/Reuters
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Tech companies still believe that their newest tools only serve to empower human creativity as embodied by the creators that help drive their businesses, right?
You'd think so.
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Snapchat just announced a creator subscription model as it moves further away from ad revenue.
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Earlier this week, Apple launched video podcasts in an effort to compete with YouTube and Netflix for creators' business.
Right. But when going back through Meta’s quarterly earnings calls, Jasmine Enberg and Kaya Yurieff, founders of the Scalable podcast and newsletter, made a curious discovery:
“Executives didn’t mention creators once during the company’s fourth-quarter prepared remarks or in the question and answer session with analysts. AI, however, was mentioned nearly 50 times. Compare that to the second quarter of 2021, when 'creator' was said roughly 35 times. That suggests creators have taken a backseat to AI, at least in Meta’s messaging to investors."
The creator trend, as measured through the language of tech earnings calls, peaked in 2021.
So maybe those online personalities are no longer the shiniest objects around. But executives still like to tell investors what they’re chasing: Netflix used the word "creator" more often on its recent earnings call than YouTube's own parent company Alphabet did.
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You Can't Fight in Here! This Is the War Room!
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Dario Amodei, chief executive of Anthropic. Credit: Samyukta Lakshmi/Bloomberg News
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Anthropic’s biggest fight this month may have nothing to do with those Super Bowl ads targeting OpenAI.
The AI conglomerate has a growing political problem on its hands, as Keach Hagey, Amrith Ramkumar, Deborah Acosta and Vera Bergengruen report.
Anthropic’s Claude was the first LLM approved to work on classified material, but CEO Dario Amodei has been outspoken in saying he does now want the company’s tools used for domestic surveillance and autonomous lethal activities, or AI killing someone of its own accord. He and others at the company have also criticized the Trump administration and in some cases supported the president's opponents.
The Pentagon is now reviewing a contract with Anthropic that could be worth up to $200 million, and insiders say Defense Secretary Pete Hegseth wants to use the company to make a point.
Some, however, think that may not be the best idea.
“It would be hard to think of a more strategically unwise move for the U.S. military to make in the AI competition,” said former Trump AI advisor Dean Ball.
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$450 billion
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Market valuation lost by Amazon in the nine days after it told investors that capital expenditures, primarily in the form of AI investments, would hit $200 billion this year. (The slide did stop.)
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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.
Tap into the connections and WSJ intelligence that move careers forward and separate the prepared from the scrambling.
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A judge just couldn't stay away from the metaphors in ruling against the plaintiff in the Buffalo Wild Wings case. Credit: Paul Weaver/SOPA Images/Zuma Press
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A judge ruled that a claim challenging Buffalo Wild Wings' definition of the word "wings" had "no meat on its bones." [WSJ]
Tesla, under threat of suspension from California regulators, agreed to stop using the word "autopilot" in its marketing. [Reuters]
Apple is working on AI-powered glasses, air pods and a pendant. [Bloomberg]
Conde Nast's GQ named Adam Baidawi as its new editorial director. [NYT]
Valentio hired Liran Peterzil as chief marketing officer. [WWD]
McCann beat out DDB for the Kroger account, so it's all staying in the Omnicom family. [Adweek]
The Warner Bros., Netflix and Paramount drama approaches "six seasons and a movie" territory. [WSJ]
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