Tech
Media Buying Briefing: Sparked up by data, new advertisers buy into cannabis marketing
Given the ubiquity of data across the media and marketing landscape, it was only a matter of time before cannabis-related marketing, and the media that serve up cannabis content got their data house in order.
And though the number of obstacles to the growing cannabis market opportunity still exist — a lack of national standards or acceptance, and a lingering sense among its purveyors that it’s still an underground business — the increasing sophistication of data aims to convince a wider swath of advertisers, CPG and QSR in particular, that cannabis consumers are worthy of being marketed to. And maybe they shouldn’t be seen just as “cannabis consumers.”
Digiday has learned that New Frontier Data (NFD), an analytics tech firm that specializes in the cannabis industry, struck a partnership deal with Smart, a programmatic platform that works with all manner of publishers, including cannabis content, to let Smart access a database of 160 million consumers via NFD’s NXTeck — an ad tech solution that packages cannabis-consuming audiences.
NFD has been busy of late cranking out information on the segment, which spent a collective $97 billion in legal and illicit cannabis consumption in 2021, according to its report “Cannabis Consumers in America: Dynamics Shaping Normalization in 2022,” released on April 20 (a national holiday of sorts for the cannabis consumer). Noting that that amount almost matches the $100 billion spent on beer, NFD is trying to paint a picture of the cannabis consumer as normalized and just as appealing to mainstream marketers.
“Cannabis consumers actually mirror just about every other CPG consumer group out there. We’re able to segment in a way that media buyers understand who the audiences truly are, and with smart technology, we’re able to ensure that the targeting is done in such a way that it also protects the mature marketers as well as the cannabis marketers,” said Gary Allen, NFD’s CEO. “And so very quickly there will be an erosion of the distinction between [them]. And QSR [buyers are] a huge consumer of this type of data.”
To wit, the partnership lets media buyers activate NXTeck segments and combine them with other targeting criteria, such as performance and viewability targeting, to create customized packages on Smart’s platform.
“It’s absolutely ready, and it’s reached critical mass,” said Eric Perko, CEO of Apollo Partners, an independent media agency. “The broader acceptance is there. People are buying it digitally, so the data that’s associated with that could be really valuable to the right brand. And the mealtime moment does naturally come with cannabis consumption, so it’s smart for the right, brave brand that wants to associate with it, since it doesn’t have the stigma it had in the past.”
Ted Montanus, director of demand partnerships at Smart, said he’s looking even farther than low-hanging fruit categories. “We talk about QSR for obvious reasons, but we also have the ‘do it yourself’ Home Depot shopper, and people and that are much more focused on sustainability” as well health-conscious consumers who are looking to avoid mainstream pharmaceutical products, he said.
And Allen pointed out that the long-term goal is to no longer pitch the cohort so narrowly. “The idea is to help the world understand that these consumers aren’t just cannabis consumers. We follow them across over 900,000 retail locations in the U.S.,” he noted.
Other players in the cannabis space believe advances like data sophistication and application of ad tech can attract new revenue to the space. “As cannabis becomes more mainstream… it’s no surprise that there is no more ‘typical cannabis consumer,’” said Monica Chun, chief client officer at independent holding company Acceleration Community of Companies. “Now you can target consumers based on format preference, desired effects, need states and lifestyle. It enables a more personalized message and solution that is right for you. All of this together will help further normalize and de-stigmatize cannabis use.”
“What we’re really seeing is the rapid mainstreaming of the cannabis consumer and the data suggests that they are one of the most influential audiences for both endemic and mainstream brands,” added Steve Katelman, chief partnership officer at cannabis programmatic/data platform Fyllo, who noted that MRI Simmons shows that almost 90 percent of cannabis/CBD consumers visited a QSR restaurant or ordered for delivery in the past 30 days, while 61% are frequent snackers. “They are obvious targets for CPG brands. Reaching new audiences is the holy grail for any marketer and the data shows that cannabis consumers are uniquely valuable to mainstream brands who want to reach those early adopters and more adventurous consumers.”
Fyllo, for example, has been able to attract business from broader brands such as Clorox and Uber. “This is why we’ve seen such a massive increase in ad spend from brands outside of the cannabis industry,” said Katelman.
Color by numbers
Digital out-of-home media is one of the few media predicted to enjoy double-digit percentage gains in a media industry that’s looking at a significant slowdown the second half of this year. For example, Coca-Cola ran a campaign over the winter holidays promoting its Seagrams, Sprite and Fresca brands on Volta, a DOOH company that offers ads to people charging electric vehicles. According to Volta, the campaign resulted in:
- 56 percent more ROAS compared to industry averages;
- $2.51 million in attributable sales;
- an 8.2 percent surge in new brand buyers;
- 7.6 percent rise in new category buyers.
Takeoff & landing
- GroupM’s Wavemaker landed Audible’s media business, which is said to amount to some $500 million in paid media. Publicis’ SparkFoundry had handled U.S. buying.
- Retailer JC Penney named dentsu X its media agency of record, consolidating all of its media there. The two have a 17-year relationship, primarily in performance media, but dentsu X expanded its remit. Omnicom’s OMD had handled some of Penney’s media.
- Havas Media Group partnered with Liveramp to create an audience management platform, which includes clean-room technology, within its Converged identity-based planning and buying platform. HMG said it’s the first agency group to partner with Liveramp’s post-cookie solution.
- Scott Hagedorn will join Publicis as global chief solutions architect, a new role that blends tech, data, creativity and media elements and reports to global CEO Arthur Sadoun. Hagedorn was most recently CEO of Omnicom Media Group North America. Joining him in moving over from OMG to Publicis is Samantha Levine Archer, formerly chief transformation officer, who will hold a U.S.-focused solutions role.
Direct quote
“There’s a difference between getting the OK to run a branded post from an influencer as opposed to getting approval for using a creator’s content within your ads, because there’s just more brand control. But it’s very much education-driven. And the platforms themselves, like TikTok or Snapchat, they’re really good about helping us out, and they’re invested in helping to grow these businesses. It behooves them to kind of help us in the education process and the approval process. All it takes is an advocate or a believer on the client side to that to help make it happen.”
— Emmy Clarke, associate director of social, Good Apple, discussing the growing use of influencers and creators in health/wellness and pharmaceutical advertising.
Speed reading
- Digiday news editor Seb Joseph takes a deep look into the progress made by Coca-Cola in efforts to in-house some of its business, as well as progress still to be made.
- Digiday’s senior media editor Tim Peterson broke the news of Disney expanding its cadre of ad-sales executives to bolster its targeted- and addressable-ad abilities.
- I included a brief item in a recent Media Buying Briefing about the NewFronts being super-spreader Covid events. Deadline followed up with this story alleging the same thing happened with the upfonts.
Tech
Nvidia GeForce RTX 3090 vs. AMD Radeon 6950 XT: Which GPU should you buy?
The AMD Radeon RX 6900 XT has been an interesting GPU this generation. It’s both cheaper than the competing Nvidia GeForce RTX 3090—and sometimes faster, too. It’s now been refreshed with the RX 6950 XT, a late entrant into the tumultuous GPU market. Nvidia has also done its part with the GeForce RTX 3090 Ti, which brings impressive performance, albeit with a high cost and power draw at 450W TDP.
With the original RTX 3090 price recently decreasing slightly, it makes for an interesting comparison against the newer AMD RX 6950 XT. The RTX 3090 Ti offers more performance, but is significantly outside of the price bracket of the RX 6950 XT. Is this AMD refresh enough to push performance for AMD ahead of Nvidia, even in the murky waters of ray tracing? More importantly, does it move the needle for high-end gamers enough for them to switch their allegiance from Nvidia to AMD? Let’s find out!
Sapphire RX 6950XT
Brad Chacos
Nvidia RTX 3090 vs. AMD 6950XT: Price
Relax. You can easily find both GPUs in stock now at most retailers, and generally at close to MSRP. The GPU market has experienced a significant downturn during the last several months, with prices quickly dropping from their stratospheric levels.
The AMD RX 6950XT comes in at a $1,099 MSRP for the reference model, and some third-party models range from $1,199 to $1,299. A modest bump from the $999 6900XT pricing—but it does not mean they’re a great deal. With the declining GPU market and murmurs of the next-generation GPUs coming out this year, it has significantly dampened demand and enthusiasm for this level of GPU.
The Nvidia RTX 3090 has also experienced much lower demand, resulting in quickly falling pricing. While you’re still unlikely to find a $1,499 Founders Edition at MSRP, most models such as those from the EVGA RTX 3090 lineup have experienced a significant price drop, coming in as low as $1,609 for the Black series. (The 3090 Ti debuted at $1,999, a big increase over the RTX 3090—and it’s already being discounted at many retailers, too)
The pricing on the used market is even lower, however, with RTX 3090s dipping close to the $1,200 mark in many cases.
Neither model is a great price-to-performance choice this late into the release cycle, however. Most high-end gamers who don’t have a top-tier GPU will likely be best served by waiting for the next generation this year.
The AMD RX 6950 XT is the latest to test its mettle against Nvidia.
Thiago Trevisan
Nvidia RTX 3090 vs. AMD 6950XT: Performance
AMD certainly threw in a surprising performance with the original 6900 XT—it was able to match or beat the RTX 3090 in certain games and scenarios. Has the RX 6950 XT finally crossed the Rubicon in all performance areas? Not quite. When it comes to ray tracing performance, the RTX 3090 is still out ahead. (Check out Brad Chacos’ review for a deeper dive on the new AMD refreshes.)
Thiago Trevisan
In games such as Watch Dogs Legion with traditional rasterization, we can see the AMD RX 6950 XT performing as well or better than the RTX 3090 (especially at lower resolutions). This trend continues in other games such as Horizon Zero Dawn, where it’s able to keep up with the RTX 3090. Game after game, both GPUs trade blows and are highly competitive with each other.
Both GPUs have party tricks up their sleeves for performance, too. AMD has Smart Access Memory that can boost performance when coupled with a Ryzen CPU, along with Radeon Super Resolution. This will give it significant boosts in many games, besting the RTX 3090 in some cases, as shown below in Horizon Zero Dawn. Nvidia also has DLSS technology that does wonders for keeping graphical fidelity and high frames simultaneously—which is a gamer changer when paired with ray tracing.
Thiago Trevisan
What happens when we introduce ray tracing? That’s where Nvidia’s RTX 3090 still holds an advantage over AMD. The 6950 XT does not have upgraded ray tracing hardware when compared to the 6900 XT, keeping it behind the Nvidia RTX GPUs in this case.
It can be argued that there are diminishing returns for ray tracing visuals and performance, with varying results. The technology puts insane strain on performance, lowering frame rates significantly until you claw some back with the help of an upscaling technology like DLSS or AMD’s FSR. The visual impact doesn’t always make losing that performance worthwhile, either. But when it comes to the “halo” GPUs like these, ray tracing can be part of the reason you get a high-end GPU in the first place; you want to turn all the eye candy up to Ultra, including ray tracing. Paired with Nvidia’s DLSS, the performance penalty can be mitigated, and the visuals enjoyed fully.
This is one big advantage of the RTX 3090 versus the newer 6950 XT—maximum performance and visuals matter when you’re spending way over $1,000 for a GPU. AMD’s ray tracing hardware is a generation behind Nvidia’s implementation, while its DLSS rival, FSR 2.0, is great but still in its infancy, with only a handful of games supporting the fledgling technology at this point. That means ray tracing is best experienced at 1440p resolution on the 6950 XT, while you can usually crank ray traced games even at 4K on the 3090. If you’re not interested in ray tracing however, the 6950 XT is a mighty fine choice for significantly less cost.
Let’s not forget that the RTX 3090 is certainly better geared towards content creation and other workstation use cases, as well. With a whopping 24GB of GDDR6x VRAM, it will handily beat the 16GB RX 6950 XT in most content creation tasks. The 3080 Ti would be a more reasonable competitor to the 6950 XT in this case as a pure gaming solution.
Nvidia RTX 3090 vs. AMD 6950 XT: Power and other things to know
The RTX 3090 packs a TDP of 350W, with many third-party models eclipsing 400W. The RX 6950 XT comes in a 335W TDP, which is reasonable for the performance that it puts out. Remember, the 3090 Ti is already up to 450W TDP—so next-generation offerings will likely go up significantly in requirements.
You’ll want a minimum of a 750W power supply for both, but we’d recommend you up that even higher for future proofing—as high-quality power supplies tend to last a long time.
You’ll need a case with good airflow for both these options, and better clearance than lesser GPUs require. (They’re often wrapped in a nice, thick, beefy air coolers to keep their temperatures in check.)
Which is the better option for water cooling? We’d argue that the RTX 3090 is, since it likely will have a wider range of water blocks available on the market. Plus, with its steaming-hot VRAM, it often benefits more from taking a deep swim versus the typically cooler RX 6950 XT.
So, is the 6950 XT enough to best the RTX 3090?
The 6950 XT is a slightly more powerful addition to the high-end AMD lineup, putting up an impressive performance versus the RTX 3090. It’s simple: If you’re playing at higher resolutions and want to use ray tracing, Nvidia still holds an advantage here. DLSS and the Nvidia encoders are also great technologies that serve people well.
If you’re after pure frame rate goodness—without as much ray tracing, the 6950 XT can be often a much better choice than the RTX 3090, especially in sub-4K resolutions. AMD offers great technologies such as FSR, Smart Access Memory to really up the performance too.
So, who wins? Unfortunately, the 6950 XT comes in too late in the release cycle to be relevant in the rapidly declining GPU market, making it an expensive option. The aging RTX 3090 is a similar story. Its high price was never a very good option for purely gaming—making better use for hybrid content creators/gamers instead. The RTX 3090 Ti is an even worse value proposition this late into the story, making it only relevant for a few high-end enthusiasts who don’t mind the price tag.
3090 Ti: The symbol for diminishing returns in an ever changing market. Beautiful, but flawed!
IDG
The verdict: This is a good ole’ fashioned standstill. We’d wait out the market a few months as both will experience even steeper declines in price with the introduction of the next generation. Otherwise, if you really must have one now, the decision will come down to ray tracing preference and resolution you’re playing at. Both GPUs will give you good, all-around performance for years to come—but neither are a great choice right now as the GPU market is rapidly changing this year.
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Tech
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Tech
Confessions of an in-house creative strategist on feeling unfulfilled, difficulty in returning to agencies as the ‘pay is less’
The war for talent between agencies and brands’ in-house agencies has cooled. Even so, for adland talent who’ve made the move in-house, some say they are looking to go back to agencies after feeling creatively stifled. It’s not the easiest strategy to execute.
In the latest edition of our Confessions series, in which we trade anonymity for candor, we hear from an in-house creative strategist about their experience, why they want to go agency-side now and how pay is keeping them from doing so.
This conversation has been lightly edited and condensed for clarity.
What’s the in-house experience like?
I’ve been in-house for about a year. It’s very one-sided. The difference between agency and in-house is that with agencies, there [are] a lot of opinions and ideas [outside of the brand message] that go into creative. With in-house, you have the brand’s message and all creative is reflective of the brand’s message. With in-house, regardless of trends in the market, it’s a lot of ‘we’re going to stick to this one way of doing things’ mentality. It’s a lot of opinions about what the creative should be based on what it has been before. It makes it hard to introduce something fresh. It makes it hard to hire or be a new hire. If you’re not actually going to adhere to advice from new hires, what’s the point in getting new people? Are you just bringing people on board for a second opinion? That’s what it feels like.
Sounds like you don’t have the creative control you desire.
It feels like more of a second opinion role than to get something to manage or control. [Where I am now] it feels like we’re leaning more into what [our strategy] used to be than thinking about what we could be. That’s a big issue with in-house. With agencies, like I said, there’s a lot more trial and error. With in-house, a lot more of this is what we’re doing, these are the funds we have and this is what has worked in the past. In reality, a lot of what worked in the past, when you put it back into the market, it’s not going to work anymore.
Why do you think it’s more challenging to get to a new creative strategy in-house?
With agencies, you have multiple perspectives. You’re working on multiple brands. You can see something working for another brand and talk to your client about it. You can pivot. You have the background and perspective to [pitch that pivot]. When you’re in-house, you only have the knowledge of your brand and what’s working for you.
Are you looking to go back to agencies?
Personally, I am looking to go from in-house to agency but I get paid a lot more being in-house than what I’ve been offered at agencies. I’ve been in interviews with agencies where they’re telling me that I’ll be learning [programs I already know how to use] so that’s why the pay is less than what it should be. There are agencies I’ve interviewed with who ask me to move to New York for less than what I make now and make that work. [With inflation,] there’s no reason why salaries aren’t also increasing.
So you’d like to make the jump creatively but it’s hard when the compensation isn’t up to what in-house offers?
It’s hard. I’ve been lowballed, too. They’ll post a salary for a position, go through the interviews and then offer less than what’s listed on the salary description. What was the point of putting the salary range there? I feel like people are putting salary ranges on job descriptions just to attract people with the experience that they are looking for but by the time they make the offer, it’s not what they said it would be. It’s offensive.
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