The Rebate Debate
WPP has been forced to air some client info that it would normally keep close to its chest.
As part of a lawsuit, the agency shared slide decks and docs that disclose the total ad spend for major clients, broken down by main channels. Although the data is from 2023, for instance, a slide deck shows how much top clients spent with Google that year: $194 million by Unilever, $299 million by Ford and $101 million by Adidas, The Times reports.
Those types of details – including the size, costs and staffing for key accounts, such as Shell, Cartier and JP Morgan – are embarrassing for WPP to disclose, since clients don’t appreciate anyone looking into their pocketbooks. And it’s potentially strategic for rival agencies and brands.
But the really ticklish aspect of the case comes down to alleged agency profits from media-buying rebates.
Richard Foster, a former employee, alleges he was fired for raising the issue of rebates not being returned to customers. “Rather than being passed back to clients, GroupM turned it into a non-disclosed profit center,” Foster submits in the case.
The disclosure is part of WPP’s counterargument that Foster is not a whistleblower, but rather a disgruntled former employee, since he never identified any illegal business practice.
Center Of The Hub
HubSpot has acquired Starter Story, a YouTube-based creator business that primarily features stories of entrepreneurs and people who have figured out ways to make money on the internet.
Starter Story is profitable and earns a seven-digit sum per year, founder Pat Walls tells Adweek.
Starter Story is a rounding error for HubSpot and only brings three full-time employees. But it’s part of a bigger bet on social video and newsletters for lead generation. In the past couple of years, HubSpot has acquired Mindstream, an info resource for AI developments, and The Hustle, a newsletter covering entrepreneurship and small internet-based businesses.
These assets are now part of HubSpot Media.
There is also a larger trend at play. After all, retailers are all now media companies, too. Why not a CRM?
Other B2B marketing companies have seen their own funnels shift from traditional search and content marketing to social video and newsletters. The SaaS platform Semrush acquired Search Engine Land, a search industry news source, in 2024. And Semrush was bought by Adobe last year, making Adobe the owner of the search marketing trade pub.
Dead Center
In business-focused conversations about AI usage, consumer backlash and environmental issues aren’t always given the same consideration as the business transformation people see right in front of them.
Outside of LinkedIn, however, those two concerns have intertwined at an accelerating rate, Business Insider reports.
Americans are blocking or protesting data center construction projects across the country, often citing rising energy costs, pollution and job losses caused by AI. It’s become such a hot-button issue that both Republican and Democratic politicians alike have sponsored moratorium bills, partisanship be damned.
This anti-AI activism poses more than just a PR problem for Big Tech companies, which need more computing power to scale their AI products. Vast public and private company valuations have been set based on ambitious AI growth plans. And those companies need data centers to achieve those goals.
Which prompted OpenAI CEO Sam Altman to recently address AI energy concerns at a summit in India. His argument? “It also takes a lot of energy to train a human.”
In any case, if AI tech becomes a more expensive, limited resource, you can bet that will impact how effectively marketers can use it, too.
But Wait! There’s More!
A super PAC backed by Anthropic launches an ad campaign to encourage voters to support AI regulation. [NYT]
How prediction markets Polymarket and Kalshi are using media partnerships to position themselves as the future of the news. [The Verge]
C2PA, a system for distinguishing organic and AI-generated content, hasn’t stopped the flood of AI slop on social media platforms. [The Verge]
The Trump administration approved a plan to track the social media profiles of legal immigrants seeking changes to their immigration status, as well as those of their US citizen relatives. [Brennan Center]
Roblox’s head of parental advocacy, Dr. Elizabeth Milovidov, says it’s everyone’s responsibility to keep children safe online, as the company faces over 100 lawsuits from parents alleging their kids were harmed while using the platform. [Vulture]
Related: Tracking legislative efforts around the globe to restrict or ban teens from accessing social media. [Tech Policy Press]
Tech companies are actively trying to find loopholes around California’s new privacy laws. [The Markup]
Tech’s new generation and the end of thinking. [Harper’s]
