2021: Week 07 | The EU Goes Bureaucrazy

2021: Week 07 | The EU Goes Bureaucrazy cover image
On today’s show, Mark and Gisela explore how TikTok is now besties with Universal Music, why Pinterest has a widget, how to promote Clubhouse with ClubLink, and why the EU wants to end ad targeting once and for all.

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Mark Dolynskyj
Mark Dolynskyj

Welcome to Clickbait & Switch, a marketing podcast that tries to cut through the bullshit and hook you up with what you need to know, what you don't and what story should be getting a little more love than they're getting. I'm Mark Dolynskyj, on the other mic Gisela Sleizer

 It's week seven of 2021, congrats on making it this far. It's been tough, but we're here. On today's episode, Tik Tok is now besties with universal music. Pinterest now has a widget. You can now promote ClubHouse with club link and the EU wants to end ad targeting once and for all. We're going to start with Tik Tok, announcing a new licensing agreement with universal music.

Fascinating news. Gisela, break it down.

Gisela Sleizer
Gisela Sleizer

It's great that Tik Tok is formalizing something that's already happening. So, trying to avoid something like the whole Twitch debacle that we saw a few months ago, where creators lost all their contents because of royalty issues. Now everything's kosher, right?

Tik Tok has signed a deal with Universal and creators and lay users. Let's call them it. Doesn't apply to brands. Brands still need to pay royalties, but regular Tik Tok users are under no obligation or no danger, they can continue to use music.

Mark Dolynskyj
Mark Dolynskyj

I mean, Tik Tok has established itself as this powerhouse for music promotion.

It's turned people into stars overnight, and now it's paying royalties. It's formalized its agreement with Universal. They're compensating artists and songwriters when their music is get used in clips, which is fascinating. And they're supposed to be working on these new initiatives to help spur on probably supporting less established artists, whatever, all that stuff. That's cool news.

But what's also interesting is this is a shot at Triller. One of those Tik Tok competitors, because Universal music, this new packed with Tik Tok comes right after the group pulled its catalog from Triller. So you know, Universal's got the big names, Kanye West, Lady Gaga, Rihanna, and it's the whole catalog.

Gisela Sleizer
Gisela Sleizer

It's cool, because it has been proven that Tik Tok can sell music, tons. Remember the Ocean Spray video that went viral.

Mark Dolynskyj
Mark Dolynskyj

Yeah. Dog face or whatever his name was, he was drinking Ocean Spray on his skateboard.

Gisela Sleizer
Gisela Sleizer

Yes. That one. That sent Fleetwood Mac's album from 1977, back to the top chart.

Mark Dolynskyj
Mark Dolynskyj

So Rumors, already a great album didn't need the help got more help and it went back to the top of the charts, which is wild. So brands still can't just use anything, they're going to have to use the commercial music library for their clips, because obviously the artists don't just want their stuff associated with anybody's brand, but it's interesting, it levels the playing field to all sorts of things and formalizes a process that was already being used anyways, they were stealing music from all over the place. It's just formalized. Super cool.

A new thing that you think is cool now and this is the new Pinterest widget on iOS, which helps you discover fresh content right on your home screen. What's interesting about this one does Gisela?

Gisela Sleizer
Gisela Sleizer

Oh, you want me to tell you because they're not a fan, right?

Mark Dolynskyj
Mark Dolynskyj

Like if I want Pinterest, I'm going to go to Pinterest. I'm not going to install a widget.

Gisela Sleizer
Gisela Sleizer

I just think it's super interesting that this tool is more seamlessly connecting with my iOS experience. I'm an iOS user. So I appreciate the new widget. I'm learning to use the new widgets. I should say. I know they're not that new, but I'm only now kind of getting the hang of it and getting to enjoy them.

And I'm also building Pinterest boards. Now after many years of misuse to decorate a new place where I will be living. So, I'm appreciating this and I also find it interesting that Pinterest is kind of a social media, but it's not really social media. It's a search engine. Will it be the next Siri for inspiration and DIY on your phone, taking a place that maybe Google doesn't fit in as much.

I don't know, there's something there. I don't know how far these two companies are going to connect in the future. Is Apple gonna buy Pinterest? No. Maybe, I don't know.

Mark Dolynskyj
Mark Dolynskyj

You heard it here first, it's wild speculation. Let's keep this going, ClubLink is a new service, which is basically Bitly for ClubHouse rooms. Do you want to talk about this one? Cause I think this one is also complete nonsense.

Gisela Sleizer
Gisela Sleizer

Yeah, well, but it's really simple. Somebody came up with a tool so that you can share your clubhouse links on social media and make them look prettier. So right now, when you share your ClubHouse event, it just basically looks like shit. Pardon my French. And usually Mark is the one that swears, but now with this tool, you can create a link that's more clubhouse friendly and it's going to auto-populate with the people that will be talking on your room. So, it's a little bit easier on the eyes and it's better information.

I mean, do we need it? Arguable. Is it a long shot? How far will ClubHouse reach? How long will it last? There are different theories on this. Even on this podcast, but yeah, I mean, to me it does mean that the interest has expanded already. We have a tool to serve this new tools. So there's a shot there at survival. Who knows?

Mark Dolynskyj
Mark Dolynskyj

I completely disagree. I think clubhouse is irrelevant by the end of the year. And I think this is one of those things it's making it irrelevant because for me ClubHouse, what made it unique was its exclusivity, right? Now everybody was inside of it and I've been invited twice within the past week. Now it just seems desperate.

Gisela Sleizer
Gisela Sleizer

I think exclusivity built the buzz around ClubHouse, but at some point exclusivity has a limit.

Mark Dolynskyj
Mark Dolynskyj

Sure, absolutely, but then also, you're looking at something that is fundamentally easy to replicate by other big brands. So Facebook, I'm sure can knock this off. Twitter can knock this off. Snapchat, you know, maybe if it wanted to get into an audio only space, like it could easily knock this off or it could just be bought by one of these other platforms.

So personally, I think just making it even easier to get into these clubhouses just makes me less interested in being in one of these clubhouses. For me I just think this whole thing is doomed.

Yeah. Fair point. All right, now let's jump into something that's kind of complicated, but is an essence really simple and it's a developing story. A European regulator is calling for an end to targeted advertising. So the EU's top privacy regulator, whose title is the European Data Protection Supervisor.

They've recommended a complete ban on targeted advertising as a crack down on internet giants like Google and Facebook, explain this one to us.

Gisela Sleizer
Gisela Sleizer

So, the EU has an independent data protection authority that is basically in charge of protecting user data around the internet. They're there to monitor and ensure the protection of personal data and privacy when EU institutions and bodies process the personal information of individuals. So, this sounds very serious and it is. It's basically making sure that, let's say another Facebook, Cambridge Analytica thing doesn't repeat itself.

So now the European Data Protection Supervisor has advised a complete ban on online targeted advertising that is based on tracking internet users digital activity. It's going to restrict how we can target advertising. He even wants to restrict the categories that advertisers can use to promote products or services among other things. What these category restrictions are? Not entirely sure, but this is going even beyond their party cookie debacle that we're seeing everywhere.

So last week, for example, we talked about Google's potential solution to the disappearance of third party cookies. This thing named flock that wouldn't fly either under these new regulations that are set to actually happen within two years. So this is real. How is it going to happen?

Mark Dolynskyj
Mark Dolynskyj

How is it going to happen?

Well, I mean, back in December, the European commission has been on this as well. They propose increasing the transparency of political ads, which is interesting as well as restrictions on micro-targeting psychological profiling. So that is in December, looking at a particularly specific political spectrum.

But now you're looking at sort of more broadly speaking brands and advertisers targeting as well. But how is this going to be enforced? That's the crazy part. It's Bureau crazy. It's going to be so much bureaucracy it's insane. So a Digital Services Coordinator per EU country, plus each platform then appoints compliance officers and carries out independent audits. Those audits would then have to be reviewed, one assumes by a team of people who then submit reports to the Digital Services Coordinator who then would report to someone else. It's going to be absolutely bonkers.

Gisela Sleizer
Gisela Sleizer

We might see something actually happen in 10 years, give or take.

Mark Dolynskyj
Mark Dolynskyj

Maybe, not even like, what are the qualifications you need to be a digital services coordinator in an EU country?

Gisela Sleizer
Gisela Sleizer

Yeah, I don't know, but it is expected to happen within two years, which is wild. We'll see. And there will be penalties for those who don't comply and who bridges new law, up to 6% of companies profits, so big deal. This is a big deal because the EU, Mark, was the first one to start to regulate this whole internet thing. Right?

They were the first ones to come up with an email subscription loss that we then saw trickle down to North America, to Canada. So we're all kind of waiting to see what's going to happen. What they're going to say and where do we go from there? And they have support from one brand. Can you guess which one? You can because you have it in front of you.

Mark Dolynskyj
Mark Dolynskyj

Because I saw the episode notes?

Gisela Sleizer
Gisela Sleizer

Because he saw the episode notes, Apple! Apple has really kind of become the spokesperson for user privacy. It's their thing. It's their edge over all the other tech companies. So Tim Cook has come up to support this. Well, not to support this. I take that back, that's not what he did. He did come out though in a conference late last year to kind of push the government to push security further and so, showing his support for these types of relations.

Mark Dolynskyj
Mark Dolynskyj

I love Apple's  positioning on all of this. Yeah. I mean, cause they've been really in this position for a long time. One of the things you knew forever of Apple products, they don't get hacks, they don't get viruses, they don't get any of this stuff.

And then if you think back to, you know, 2016, when there was the San Bernardino shooter in California and the FBI wanted Apple to open up the phone and they said, Nope, we're not going to do that. That's private. That's not us, get away from us. So fascinating  stuff, Tim Cook on the front lines of that.

Gisela Sleizer
Gisela Sleizer

Yeah. But I mean, just like them with these new regulations, nobody will be able to target that finally. So in a way we're back to out of home days, but in a digital space.

Mark Dolynskyj
Mark Dolynskyj

Yeah. Well good thing Apple's had a 40 year headstart on this by the time this all kicks off.

Gisela Sleizer
Gisela Sleizer

So that's it. We've rambled quite a bit for today. I think that's enough.

Mark Dolynskyj
Mark Dolynskyj

All right. So thank you to CloudRaker for providing support for the podcast. All of these opinions and mistakes are our own and a big thanks to Xavier for having to cut this all together. Big shout out to him. Any last words, Gisela? That's it.

Gisela Sleizer
Gisela Sleizer

Don't forget to subscribe, spread the word you as a rating. Thanks, bye. Bye!

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