My Brain Food This Week...

May 26, 2024

(Suzanne Vranica)

Key takeaways:

Shift from TV to Digital Advertising: Mondelez (maker of Oreos) significantly reduced its TV ad spending, shifting focus to social media platforms like Instagram and TikTok, and retail websites such as Amazon and Walmart, to reach Gen Z and multicultural audiences who watch less traditional TV.
Sports Remains a TV Stronghold: While traditional TV advertising is declining, live sports continue to attract large audiences, maintaining high ad prices and significant ad budgets from companies like Molson Coors, which now spends 80% of its TV ad budget on sports.
Rise of Retail Media and Digital Platforms: Retail media platforms and digital giants like YouTube, Meta, and TikTok are becoming key players in advertising, driven by their ability to target consumers and measure ad effectiveness, leading to a significant shift in ad spending away from traditional TV.

💎 Africa

A new wave of autonomous vehicle startups is focusing on off-road applications, fuelled by recent venture capital investments and interest from the U.S. military. Seattle-based Overland AI and Canada’s Potential are leading this niche market. Overland AI, supported by an $18.6 million grant from the U.S. Army and a $10 million seed round, is developing autonomous systems for military use, capable of navigating without detailed maps or remote assistance. Potential, with $6.2 million in total funding, creates advanced driver-assistance systems (ADAS) for off-road vehicles like ATVs and mining equipment. This trend reflects a broader shift from high-cost urban robotaxi projects to practical, off-road applications in agriculture, mining, and defense, addressing labor shortages and enhancing productivity and safety.

The "Multipolarity" podcast, hosted by Andrew Collingwood and Philip Pilkington, delves into the shift from a unipolar to a multipolar world, highlighting the waning of US imperial power and the rise of new global alliances. Recently, Philip Pilkington discussed China's accelerated selling of US debt, paired with increased gold reserves, marking a significant shift. This change is critical as US interest rates rise, moving from yield-insensitive buyers (like China) to yield-sensitive investors. If the US lowers interest rates due to a recession, it could lead to debt sell-offs, raising concerns about who will buy US debt. Surprisingly, stablecoin issuers have emerged as significant buyers, with former Speaker Paul Ryan and other policymakers acknowledging their role. This development could stabilise the US Treasury market, despite skepticism from crypto critics.

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