PPPPack It In (Four Ps #238)
Prepping for camp. Purchasing from Amazon. Plying a New Trade. Preventing the End of Humanity. All in one place.
We're facing a colossal mission.
In addition to getting these Four Ps in a decent enough place to send out week after week, my primary focus now just a week away before my daughter's luggage is picked up to be brought to camp is to get everything she needs for the summer stuffed into two duffle bags.
Forget about steeplechase or archery. THIS should be an Olympic sport.
So pack it up, pack it in… Let me begin. And in honor of our die-hard Badgers football and University of Wisconsin-loving friends who celebrated a big family milestone this weekend, “get out your seat and jump around.”
SOMETHING PERSONAL: Leaders of the Pack
We’ve been here before, yet it’s always a Herculean task.
As our youngest gears up for another summer away at camp, the race is on to gather everything she needs to "survive" and thrive for seven weeks all on her own.
We're given two 6-foot duffle bags that look like they are carrying a corpse each when fully loaded. Her entire life needs to fit within, because God forbid she has fewer than 8 squishee pillows on her bed. Or 6 photo collages of her different groups of friends to hang over the bed. Of course, much of the items are practical. But the volume of items are not.
👕 20-30 t-shirts.
🧦 30+ socks and underwear.
🛌 Multiple sets of linens + 8 towels.
Some of it is reusable from year-to-year, but most is not.
The result? A world-record setting pace for Amazon deliveries over this 30-day period, buying things like portable fans to extra soap to vibrant "spirit day" accessories and costumes.
Good Lord, I don’t remember having this much stuff when I went to camp.
The theme day costumes... Rock-n-roll day, Favorite Team day, Red Day, Gray Day (camp colors)... and that doesn't even include Halloween, Olympics, Fourth of July, or Color War.
This is boujee parenting in the digital age at its finest. Or worst.
SOMETHING PRACTICAL: Lost in the Amazon
You think of Amazon as a shopping site. (And it is.)
You think of Amazon as a content engine. (Absolutely!)
You think of Amazon as a search engine. (You're right, too!)
But do you think of Amazon as an advertising network? Well, guess what...
Amazon's Advertising Dominance
Amazon continues to dominate the retail media network landscape, with its growth showing no signs of slowing down. In 2024, Amazon's ad revenue is projected to grow by 24.7%, reaching nearly $42 billion.
This will constitute 13.9% of the digital ad market, positioning Amazon to potentially overtake Meta by the end of the decade. (Source)
OTT Ad Revenues and the AVOD Model
Amazon's over-the-top (OTT) ad revenues, including income from Twitch, Freevee, Prime Video, and the Fire TV platform, are also experiencing significant growth. In 2024, these revenues will total $4.72 billion, marking an 84.4% increase from the previous year.
This spike is primarily due to Amazon switching all Prime Video users to an ad-supported video-on-demand (AVOD) model earlier this year.
Amazon's ability to cross categories sets it apart from other players in the ad industry. Its OTT ad revenues contribute to both connected TV (CTV) and retail media revenues, reinforcing its dominant position in the market.
Monetizing Influence: Creator Connections
And if all this advertising mumbo jumbo sounds like another language, just know this: They're finding new ways to print money.
But wait, there's more! ICYMI, Amazon rolled out a program entitled “Creator Connections” last year.
This innovative affiliate and influencer marketing scheme allows brands to effortlessly team up with social media influencers to peddle their wares. Brands craft campaigns with juicy commission rates (a minimum of 10%), and influencers can dive in, snatching links to earn their slice of the pie.
While still in beta, only some U.S. sellers have access, but they plan on rolling it out globally eventually.
But who are these influencers, you ask? TikTok dynamos? YouTube sensations? Aspiring rap stars? Not quite. We're talking Amazon influencers and reputable publications like Forbes, Wirecutter, and Buzzfeed. These heavy hitters bring the traffic, but typically score only a meager 1-4% commission through Amazon’s associates program.
Amazon's Content Strategy
As for the content, Amazon is coming to play. They made a big splash with their first-ever upfront event last month (Source), highlighting their massive scale with Prime Video reaching 200 million global ad-supported customers (115 million in the U.S.), making it the largest premium ad-supported streaming service.
They've unveiled new original series, movies, and sports programming, including a "Legally Blonde" prequel, "Spider-Man Noir" series, and exclusive NFL games.
Amazon also touted its advantage in reaching younger, engaged viewers who shop more and don't watch other streaming services or linear TV.
So no, Amazon is not just a marketplace or a content engine; it's a dynamic advertising powerhouse continually evolving and innovating to stay ahead of the competition.
SOMETHING PROFESSIONAL: Retail Therapy
Sometimes you’ve got to push beyond the comfortable to learn new things. I’ve never shied away from that, as long as there is an opportunity to plug in the expertise and experience along the way.
This is why I've taken on the marketing and strategic leadership position with Genuin.
You've heard me talk about genuine content, connections & communities. You've seen me highlight the convergence of emerging media, creators & AI.
And this company is the real deal: the first platform to transform Retail Media Networks into Community Media Networks by:
🌐 Populating communities with vertical video content from consumer brands, advertisers, creators & enthusiasts.
📱 Providing new real estate for consumers to engage with brands through relevant organic and sponsored content.
💡 Powering engagement, increasing time on site, driving revenue & building loyalty.
Retail Media is having a moment (and it's a big moment), but it was a newer area of focus for me until recently.
Walmart Connect, Walmart’s U.S. ad business, grew by 26% during the first quarter of the company’s FY25.
Despite a drop in sales in Q1, Macy’s ad sales just hit $37M.
PayPal is expanding into the retail media-like advertising space.
Netflix announced its plans to launch a proprietary ad tech platform and has expanded its programmatic partnerships, unveiled new ad measurement collaborations to enhance control, transparency, and growth in its ad-supported services (40 million+ MAUs).
The US ad market has expanded for the 13th consecutive month. It’s up 9.1% compared to last year.
Yet despite all of this movement, there are limits to its revenue-generating capabilities for brands. Inventory is limited.
So with Genuin, we just uncapped it.
I'm still fractionally working with Kazm and a few other advisory or consulting projects, but Genuin is dominating my focus. It’s already got a massive community. We just want to bring it all together for brands, retailers, advertisers, creators, and consumers.
SOMETHING POLITICAL: When “G.I.” Meets A.I.
If you think you're having a hard time keeping up with everything coming at us -- including AI, new content formats, and data collection tools -- the intersection between the private sector and governmental involvement (which I’ve now dubbed “G.I.”) has become increasingly intertwined.
Personally, I say, "Welcome!" This oversight is becoming increasingly necessary, and the fact that many of the developments coming out of Washington are being led by bipartisan lawmakers should tell you something.
So what are we talking about, exactly?
Privacy Matters: The Dawn of a New Era
A new proposed American Privacy Rights Act (APRA), introduced last month by Sen. Maria Cantwell (D-WA) and Rep. Cathy McMorris Rodgers (R-WA) represents a significant step towards establishing a national data privacy standard, allowing consumers greater control over their personal information.
TL; DR: Key provisions include the right to opt-out of targeted advertising, data deletion rights, and the creation of a federal data broker registry.
It's got a long way to go, and a lot of tech companies will fight it, but the industry consensus recognizes the APRA as a positive move towards harmonizing the patchwork of state privacy laws.
The AI Conundrum: Balancing Innovation and Security
Listening to elected representatives talk about AI is like listening to my grandfather try to explain how particle accelerators work. Yet AI continues to reshape industries, and it's a good thing that our elected officials are focusing on risk mitigation and safeguards.
Policymakers grapple with the need to unlock American innovation and maintain competitiveness while addressing severe national security concerns posed by AI.
According to a recent poll, 66% of U.S. voters believe AI policy should prioritize keeping the technology out of the hands of bad actors over providing universal access to its benefits.
There's some fear involved, as well. But it's founded. The failure to prevent the exploitation of AI models could undermine public trust far more than sensible regulations ever would.
Transparency in Political Advertising
The FCC (That's the Federal Communications Commission, for those who don't play "Bureaucratic Acronym Bingo") is taking steps to require political ads on TV and radio to include disclaimers about the use of AI.
The goal is to address growing fears that AI-generated deepfakes could disrupt elections and ensure consumer awareness.
While existing election laws prohibit fraudulent misrepresentation, the regulation of AI in political advertising remains a gray area. And notice I didn't say anything above about social media, where the real shit hits the fan. Fake U.S. election-related accounts are already taking over X, FYI.
As for The Rest of the World...
The U.N. is seeking to change the conversation, saying that generative AI could pose risks to human rights. Here are some ways they said generative AI could negatively impact human rights:
Freedom from Physical and Psychological Harm
Right to Equality Before the Law and to Protection against Discrimination
Right to Privacy
Right to Own Property
Freedom of Expression and Access to Information
Right to Take Part in Public Affairs
Right to Work and to Gain a Living
Rights of the Child
Rights to Culture, Art and Science
The report says that data scraping for AI training could violate individual privacy rights while also violating the intellectual property of creators and artists... and that gen AI models can and have been used to create nonconsensual fake porn, disseminate false information, and supercharge mass misinformation. Awesome.
Overall, these developments all highlight the need for responsible oversight.
Question is... who are the leaders in the private sector who will be sought for advice and consent?
