125: Why fake news costs $78B/yr, Mastercard + inclusion, Dr. Julz James, and the future of B2B Marketing
Hope you had a great Thanksgiving!
[IOU a gif, blame Amtrak wifi.]
In this edition of The World's Best Newsletter:
1. The cost of fake news = $78B a year
2. Mastercard's move to include all of us
3. New research on brands taking a stand from Sprout Social
4. A conversation on digital marketing skills with Dr. Julz James
5. Participate in an academic study on marketing automation!
6. The future of Marketing
7. Quote of the week: Sucking at something new
Let's get into it.
1. The cost of fake news = $78B a year
That old adage of "don't believe everything you read on the internet" may need to be "don't believe anything you read on the internet."
I dug into a new report by ad cybersecurity firm CHEQ and economist and University of Baltimore professor Roberto Cavazos, which estimates $78 billion dollars each year is lost due to misinformation.
For example:
Fake news stories in June 2017 reported Ethereum’s founder had died in a car crash and the company's market value dropped by $4 billion.
That same year, it was falsely reported that a National Security Adviser would testify against Donald Trump. The S&P 500 dropped by 38 points, equivalent to a $341 billion loss. ABC did not retract the news until after the trading day, at which point the loss was lessened to $51 Billion.
This past year, shares in the UK's Metro Bank plunged 11% before it could shake off inaccurate social media rumors that it was facing financial difficulties.
Their 3rd annual "The Economic Cost of Bad Actors on the Internet" estimates:
Health misinformation i.e. anti-vaccination stories, leads to $9B in unnecessary healthcare costs
Financial misinformation (e.g. fake press releases) costs companies $17B/ year.
Platforms spend $3B/ year to combat misinformation and increase safety.
Brands lose $235M annually by advertising next to fake news items.
Companies + individuals spend $9B/ year to repair damaged reputations due to fake news.
In addition, the report estimates $400 million a year is spent around the world advertising political misinformation. It projected $200 million alone will be used to promote fake news narratives during the 2020 U.S. presidential election cycle.
Note: The study considers "fake news" to be misinformation (errors) and deliberate false information meant to mislead, manipulate, or harm. PS: I wonder if Faux News was included in this study? It certainly meets the definition.
Download it here.
2. Mastercard's move to include all of us
From the New York Times:
...a third of transgender people reported suffering harassment or denial of service after showing identification with a name or gender that didn’t match their appearance
Approx 1.4 million American adults identify as transgender, and everyday interactions like shopping or checking into a hotel creates opportunities for discrimination, when their chosen name and appearance don't match what's on their credit card.
Having a card with their chosen name can help. Mastercard recently announced it would let customers do just that.
Katie Deighton of The Drum calls this an example of "lesser-spotted actual brand purpose"
Mastercard said this week that BMO Harris Bank in December would become the first institution to offer debit and A.T.M. cards under the network’s True Name initiative... Mastercard doesn’t want customers to feel insecure or worried about potential discrimination when using its cards...
I liked the headline that ran in the Nov 9th, 2019 print edition: "Fighting Bias With Names Etched in Plastic, Not Stone."
Read online version of the article here.
3. New research on brands taking a stand from Sprout Social
More than half of consumers (53%) believe brands only take a stand for public relations or marketing purposes. Consumers say it boosts a brand’s credibility when the issue they take a stand on directly impacts their customers (37%) or business operations (36%).
Why? 66% believe brands can create real change.
Read the full report, and thank you to Stephan for sharing it with me!
4. A conversation on digital marketing skills with Dr. Julz James
I had the chance to interview Dr. Julz James, Assistant Professor of Marketing at St. Edward’s University in Austin, and a Marketo champion.
All you need to know about Dr. Julz is this quote she lives by: “Wherever I go, I move forward boldly.” We talk about marketing automation, marketing ops careers, what skills are in-demand for digital marketers, and more.
Watch a recording of our talk here.
5. Participate in an academic study on marketing automation!
There are not many academic studies about marketing technology or marketing automation!
But, Dr. Julz is studying the use of this technology, its impact, and the strategic advantage it gives organizations. If you've ever used marketing automation, participate in her important research study here.
It's for SCIENCE!!
6. The future of Marketing
I did a video for Engagio on the Future of B2B Marketing along with Maria Pergolino, Craig Rosenberg, Randy Frisch, Maneeza Aminy, Matt Heinz, Justin Gray, and Jon Miller.
Check it out for my thoughts about how marketing is going to evolve over the next ten years, and poke around on their site for more tips on how to make sure you’re ready for the future.
Note: I'm interviewing Engagio's founder, Jon Miller, on Wednesday 12/11 at the Growth Marketing Conference. Our fireside chat will kick off the morning's B2B track and will focus on the next decade of marketing, from someone who largely defined the last decade as cofounder of Marketo.
7. Quote of the week
I am not ashamed to admit... I got this one from a meme.
"Be brave enough to suck at something new."
As someone in the midst of a brand new endeavor, one that extends a bit beyond my comfort zone but well within my passions, I've taken this to heart. I'm ready to suck, but I'm optimistic that the mission is more important than my ego.
Have an awesome weekend, and thanks as always for reading.
Katie
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A few upcoming events:
Growth Marketing Conference, December 10-11 in San Francisco
I'll be speaking at SXSW 2020, March 13-22 in Austin
See you at Oracle's Modern Business Experience, March 23-26 in Chicago
More to be announced soon.
Book me to speak or emcee!