Apple makes face shields and Tesla shows ventilator made from auto parts: Monday Wake-Up Call
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Apple making face masks, Tesla showcases ventilator
Good morning and welcome to another week amid the coronavirus pandemic, with dramatic events unfolding across the world on Sunday night, including U.K. Prime Minister Boris Johnson being admitted to a hospital in London and U.S. Surgeon General Jerome Adams warning that America faces a "Pearl Harbor" moment.
There's also more news overnight that big companies are turning their attention to medical equipment. Apple CEO Tim Cook announced Sunday in a video posted on Twitter that the company is designing face shields for medical workers, and has also sourced 20 million masks through its global supply chain.
As Bloomberg News reports, Cook said Apple’s design, engineering, packaging and operations teams are working with suppliers to get the shields made and shipped. The company plans to ship more than a million this week and another million weekly after that.
Apple joins other big firms, including Nike and Gap, in turning its attention to manufacturing masks. Meanwhile, Tesla this weekend posted a video on its YouTube channel showing footage of a prototype ventilator the company is trying to make with auto parts. The design includes a touch screen, computer and control system from a Model 3 electric car.
Coronavirus hits ad tech
As COVID-19 continues to ravage all parts of the advertising world, one area that’s set to get hit hard in the next quarter is ad tech. As Ad Age’s George P. Slefo reports, “the second quarter is expected to bring a wave of closures and layoffs within the ad tech ecosystem, as brands either cancel or scale back ad spend.”
Nearly a quarter of media buyers and brands have canceled their ad spend for the second quarter, according to the most recent data from the IAB. “We will see companies close under these conditions,” Will Doherty, exec VP of global marketplace development at Index Exchange, told Slefo.
Part of the problem is the standard of payment within the supply chain. As Slefo points out, “although it takes merely nanoseconds to purchase an ad, it can take several months before anyone in the ad tech ecosystem gets paid.” In many cases, demand-side-platforms use revenue from three months earlier to pay bills due for either the previous or current month. Hence, predictions of a "major cash crunch" for everyone.
Here to stay?
The pandemic has changed consumer behavior in many ways, some of which we could never have imagined. And some of those changes could be here to stay. Ad Age’s Adrianne Pasquarelli reports in the new issue of Ad Age on five consumer trends that could endure beyond the outbreak and have “lasting implications for brands.” They include: reliance on tried and tested brands; a rise in DIY at-home skills; more familiarity with digital offerings; flexible work arrangements and a prioritizing of safety over privacy. Read more here.
Industry reacts to Cannes cancellation
As the announcement of the cancellation of Cannes on Friday sends shock waves around advertising, Ad Age’s Lindsay Rittenhouse reports on reaction across the industry. While many creatives praise the decision to cancel, there is a wider question of how it will affect the industry, and other events, going forward.
For example, while the 2020 cancellation will deal “an economic blow” to Ascential, the owner of Cannes Lions, according to Jay Pattisall, principal analyst at Forrester, the wider implication is for the “creativity itself.” He warns: “Canceling Cannes is likely the tip of the spear of agencies suspending all awards and festivals for the foreseeable future. The industry repeatedly invests in creativity least when it is needed most.”
Out today: The April 6, 2020 issue of Ad Age is now available to subscribers here. Read all about: Cannes cancellation: Event organizers said that the “difficult decision” came after consultation with their “partners and customers.” CMO strategies for the pandemic: Ad Age caught up with seven executives for a behind-the-scenes look on how they are managing the chaos. What’s next for brands: While many brands have slashed spending, research suggests that cutting now will make it harder when the recovery arrives. Plus: How Jeppson’s Malört got into the hand sanitizer business, the new rules of coronavirus advertising as social media platforms begin to loosen policies, and a little bit of voyeuristic fun with a name-that-home-office game.
Zoom in, mess up: Zoom CEO Eric Yuan has promised to introduce new privacy features, including an option for end-to-end encryption, after concerns over the platform’s security. Yuan told The Wall Street Journal in an interview on Friday that the company needed to slow down and focus on privacy and security first, adding “If we mess up again, it’s done.”
Prime Delay: Amazon is planning to delay Prime Day until at least August due to the ongoing pandemic, according to a report by Reuters, which claims to have seen internal meeting notes. Prime Day has previously taken place in July, although Amazon hasn't published the date in advance. The company has so far declined to comment.
Bustle cuts: Bustle Digital Group has laid off 24 staffers, ordered salary reductions and shut down culture website The Outline, reports the New York Post.
Coronavirus campaign of the day: In Ireland, automaker Renault and insurance company AXA have teamed up to find a practical way of helping in the coronavirus outbreak. The two companies, both clients of Publicis Dublin, are providing Irish healthcare workers with free cars and insurance for two months, after the Irish government called on them to return home from abroad, writes Ann-Christine Diaz. The “Covid Car Cover” campaign allows doctors and nurses returning home to Ireland to sign up for the program online.
That does it for today’s Wake-Up Call, thanks for reading and we hope you are all staying safe and well. For more industry news and insight, follow us on Twitter:@adage.
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