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PepsiCo is the latest big-name marketer to rev up alongside Formula 1, joining a growing roster of brands eager to tap into the surging popularity of the global motorsport. The snack and beverage giant recently signed a multiyear partnership with F1 that includes TV-visible trackside ads, on-site activations at 21 races, and co-branded promotions for three of its marquee brands: Gatorade, Doritos, and Sting Energy. With this move, PepsiCo joins the ranks of luxury powerhouse LVMH, Qatar Airways, and tech heavyweights like Oracle, HP, and Amazon Web Serviceseach of which has struck sponsorship deals with either individual racing teams or the league itself. Young, rich, global While PepsiCo has long been a fixture in sports marketingteaming up with leagues like the NFL, NBA, WNBA, and the 2026 and 2027 FIFA World Cupscompany execs say Formula 1 brings something different to the table. The sports fan base skews younger, is more affluent, and appeals equally to men and women. And with 24 Grand Prix races spanning 21 countries, F1 offers marketers a unique chance to connect with both global and hyperlocal audiences on the same circuit. It’s a pretty unique global property right now with great momentum, Adam Warner, PepsiCos vice president of global sports and entertainment partnerships, tells Fast Company. We see a great fit with many of the iconic brands in our portfolio. It is also growing massively. Celebrating its 75th anniversary in 2025, F1 commands a TV audience of 1.6 billion, 97 million social media followers, and in-person attendance that grew 9% to 6.5 million in 2024 versus the prior year, according to the leagues parent company Liberty Media. F1 generates the highest sponsorship deal spending across all major leagues, at $6 million on average, according to data analytics firm SponsorUnited. Liberty Media, the mass media owner of Sirius XM and Live Nation Entertainment, gets much of the credit for boosting the sports popularity after it acquired F1 in a $4.4 billion deal in 2016. Since then, F1 has launched a fantasy league to increase online engagement, launched a female-only racing series in 2023, and most importantly to the U.S. market, added races in Miami and Las Vegas. The U.S. markets F1 fan base grew by nearly 11% last year to total 52 million, according to analytics company Nielsen Sports. Marketers expect interest will increase after General Motors and Cadillac add an American team to the league for the 2026 season. Theres not many sports in the world that travel around in the way that they do, to the amount of locations that they do, and actually bring fans in from two different directions, says Clare Lawson, global president of Ogilvy One, the ad giants customer engagement and experience division. Lawson explains that this core base is now made up of petro heads that love the data and technology behind the cars and the fans that are more into the glitz and glamor of the party scene thats developed around each race. F1 is also benefiting from a more expansive position in pop culture. Lewis Hamilton, Max Verstappen, and other drivers have become huge stars and tabloids are closely following their personal lives, as well as the women they date and marry. Netflixs popular TV documentary series based on the league, Drive to Survive, is widely credited for expanding the audience, particularly in the U.S. Later this month, Apple Original Films will release a sports drama film based on the league called F1. Big brands, big money What weve seen with Formula 1 is its become more part of almost the cultural fabric of people following the drivers themselves, says Alison Payne, chief marketing officer of Heinekens U.S. business. [Image: Heineken] The Dutch brewer has been an advertiser with the league since 2016 and this month debuted a new ad spot featuring the F1 film stars Brad Pitt and Damson Idris to promote the nonalcoholic beer brand Heineken 0.0. Alcohol and driving never mixes, says Payne. It is a perfect platform to raise the awareness that you can still have fun and be part of the social scene, just without alcohol. Brands say F1 is an exciting vehicle to build creative local campaigns that can match the unique vibe for each Grand Prix race. For Patrón, that resulted in sponsoring a live concert at members-only Soho House in Austin, tapping into the DJ and nightclub culture in Las Vegas, and toasting the glamorous party scene in Miami with the spicy margarita, as that race tends to run close to Cinco de Mayo. [Photo: Patrón] The tequila producer found a natural affinity in the motorsports league in 2021 when it kicked off a partnership with the only F1 driver from Mexico, Sergio Pérez. But that initial deal only involved his own name and likeness and Patrón had to ink a subsequent partnership with Pérezs former team, Oracle Red Bull Racing, to show him in his F1 uniform. Those are the things you have to figure out as a brand, says D-J Hageman, VP of marketing at Patrón. What are the right IP [intellectual property] rights that I need and want to have to use in my marketing materials and assets. Adidas accelerated their partnership with F1 by signing a multiyear partnership with the Mercedes-AMG PETRONAS F1 team in January, a collaboration that allows the German sportswear brand to create apparel and footwear to outfit both the pro team and fans. To coincide with the Miami race, Adidas debuted a Floridian inspired collection in burgundy and coral that featured a graphic of a mangrove tree leaf. [Photo: Adidas] We have to spice it up with local insights to make it more relevant for local consumers, says Michael Batz, general manager of Adidas Motorsport. Capital Ones digital concierge service Velocity Black has been a F1 partner since 2023, working closely with F1s Aston Martin Aramco team. CEO Sylvain Langrand says particularly strong demand for races in popular destinations, including Monaco and Singapore, can make it hard for travelers to book high-end hotels and tables at popular restaurants and bars. [Photo: Velocity Black] Langrand says his service offers their clientele a full end-to-end F1 experience that includes transportation, hotel reservations, hospitality experiences, and even an opportunity to meet the Aston Martin team in person. Velocity Black offers F1 packages across the globe, but says that the U.S. events sell out first. Even when you think about the entire F1 racing calendar throughout the year, these three events in the U.S. are very, very special, says Langrand.
Category:
E-Commerce
Scroll through a TikTok feed, and you’ll eventually come across someoneusually incredibly photogenic, with perfect teeth and flawless skinextolling the virtues of some product or another, or a restaurant, or a destination. And then another. And another. Influencer marketing is an unintended consequence of the social media revolution. Platforms like YouTube and TikTok allowed ordinary people to build followingsand, in a way, become celebrities. Brands and businesses soon latched onto these influencers, leveraging the trust they had with their audiences to advertise products. Mia Maples and Linus Sebastian are the Serena Williams and George Foreman of the digital age: celebrities who can raise a companys profile with a single post, lending credibility to products with a young, energetic audience. Crucially, they allow marketers to reach consumers increasingly cynical toward traditional advertising, and even taking steps to shield themselves from it, whether by paying for ad-free subscriptions on YouTube and Spotify or using ad-blocking browser extensions. That is, at least, the argument on paper. In practice, things are murkier. Reasonable questions remain about whether influencer marketing is as effective as once thought, or whether it still works at all. What Even Is an Advertisement? To understand the challenges facing influencer marketing, we first need to define what constitutes an advert. An advert is, in essence, any materialwritten, spoken, or audiovisualthat attempts to sell a product or service to a third party. For brands, influencer marketing offers a way to connect with an elusive demographic. Gen-Z and Gen-Alpha don’t read newspapersand neither do many millennialsor consume much broadcast television or radio. Theyre tech-savvy, know how to block ads, and often pay to remove them from their services. These consumers, skeptical of legacy media, likely feel differently about their favorite creators. When those creators tout a product, it can convey a level of credibility. These influencer-brand tie-ins may not feel like ads, but they are, and thats the intent behind them. That is, at least, the theory. In practice, things work a little differently. Waning Influence Let me be clear: Influencer marketing still holds power, and value for brands. But its influence is often overstated, and were now seeing diminishing returns. First, theres influencer fatigue. Brand deals are so common that almost everyone knows when their favorite creator posts a new video, a good portion will promote a VPN provider, budget headphones, or some other product. These in-content ads are so ubiquitous (and often grating) that browser plug-ins now skip past them. SponsorBlock, for example, is the largest, with over two million Chrome users. Just as people might leave the room during TV commercials, theyre now doing the same for online content. Similarly, on apps like TikTok and Instagram, the #ad hashtag (the telltale sign of an influencer deal) often prompts users to immediately scroll. This almost reflexive, negative response is called influencer fatigue, fueled by the overwhelming wave of promotional content on social mediaand a growing annoyance with influencers themselves. Thats the thing: Influencers were once seen as a way to deliver advertising without it feeling like advertising. But over timethanks to saturationthats no longer true. A Matter of Trust Theres also a growing trust gap between consumers and brands that lean heavily on influencers. Take PayPal-owned Honey, once promoted by some of YouTubes biggest creators. It was pitched as a free browser plug-in that scoured the web for discount codes. In reality, Honeylater described as a scamsiphoned affiliate revenue from those it was otherwise owed toincluding, ironically, the very creators who promoted it. It also manipulated which codes were shown, hiding the most valuable ones. Honey isnt alone. Other companies, like BetterHelp, also leaned on influencers, only to later land in controversy. These scandals chip away at the credibility of influencer marketing. They make consumers wary of creators promoting new productsespecially when those creators, often small one-person teams, lack the resources to vet what theyre endorsing. The result: a decline in trust for both influencers and brands. Evidence suggests this decline is real. A 2023 study from EnTribe found that just 12% of people are likely to buy products promoted by influencersand 42% of those who did regretted it. Then theres the issue of attribution. If a million people watch a video, how many truly saw the promotionand didnt skip it, either manually or via a plug-in? How do you measure impact, beyond simple conversions tied to affiliate codeswhich fail to capture brand awareness or perception? Is Influencer Marketing Still the Future? Thats the $33 billion question, isnt it? I still believe the influencer economy holds value. Without it, wed still face the same challenge: reaching an audience increasingly elusive to traditional advertising. But as an industry, we need to recalibrate expectations and find more creative ways to reach younger consumers. Though younger audiences live much of their lives online, they dont exist entirely behind screens. They leave the houseand outdoor advertising should be part of the strategy. Podcasts. Streaming video. In-game advertising. And yes, even legacy mediawhen supported by the dataall have a role to play. There’s room for influencer marketing, too. But it alone isn’t enough. And likely never was.
Category:
E-Commerce
Any student of American history knows that there are hard truths to ponder about our past. Slavery certainly falls into this category. Today (Thursday, June 19, 2025), the United States commemorates the end of that horrific institution and wrestles with its lasting impact. As this occasion has only been formally established as a federal holiday since 2021, it may be confusing to know what will be open and closed. Lets take a deeper look so you can plan ahead. A brief history of Juneteenth Juneteenth celebrates the end of slavery in the United States. The holiday is always held on June 19 because this is the anniversary of the day that federal troops reached Galveston, Texas, in 1865. Under the leadership of General Gordon Granger, troops took control of the state and made sure that enslaved people were freed in accordance with the Emancipation Proclamation, which was enacted two and a half years prior. Although celebrations of the holiday date back to 1866, the landmark day did not become a federal holiday until 2021 under President Biden. Are banks open on Juneteenth? No. Juneteenth is considered a bank holiday. The Federal Reserve along with most major banks such as Bank of America, Chase, and Wells Fargo will be closed. Are ATMs open on Juneteenth? Yes. If you find yourself in a bind and need to complete some transactions on Juneteenth, ATMs located outside branches and online banking are available. Is the post office open on Juneteenth? No. The U.S. Postal Service locations are not open on the holiday. If you need to buy stamps, some grocery or convenience stores sell them. Additionally, you can buy them online at www.usps.com. Is mail delivered on Juneteenth? No. You will not receive letters or written invitations sent through the mail on Juneteenth. The silver lining of this is that you wont get any paper bills either. The only exception is Priority Mail Express, which is delivered 365 days a year, including federal holidays. Are FedEx and UPS operating on Juneteenth? Yes. According to its website, UPS is open for business as usual on Juneteenth. This includes store locations and deliveries. The same can be said for FedEx locations and deliveries. State Department Is the stock market open on Juneteenth? No. It’s not possible to buy or sell stocks on Juneteenth. The New York Stock Exchange (NYSE) and the Nasdaq exchange are closed for the day. You can still trade Bitcoin to your heart’s content. Are schools open on Juneteenth? No. Because Juneteenth falls during the summer holiday, most schools are out of session already. Check in with your local summer camps or year-round institutions to double check how they are handling the holiday. Are restaurants, pharmacies, and grocery stores open on Juneteenth? Yes. Speaking in general terms, most retail locations will be open on Juneteenth. Target, Costco, and Aldi will all remain open. Olive Garden will serve its famous breadsticks. Major pharmacy chains such as CVS and Walgreens will be open, although they might be operating under limited hoursso check your local pharmacy hours to be sure. Smaller mom-and-pop shops, meanwhile, might close for the day, so it is a good practice to double check those.
Category:
E-Commerce
Any student of American history knows that there are hard truths to ponder about our past. Slavery certainly falls into this category. Today (Thursday, June 19, 2025), the United States commemorates the end of that horrific institution and wrestles with its lasting impact. As this occasion has only been formally established as a federal holiday since 2021, it may be confusing to know what will be open and closed. Lets take a deeper look so you can plan ahead. A brief history of Juneteenth Juneteenth celebrates the end of slavery in the United States. The holiday is always held on June 19 because this is the anniversary of the day that federal troops reached Galveston, Texas, in 1865. Under the leadership of General Gordon Granger, troops took control of the state and made sure that enslaved people were freed in accordance with the Emancipation Proclamation, which was enacted two and a half years prior. Although celebrations of the holiday date back to 1866, the landmark day did not become a federal holiday until 2021 under President Biden. Are banks open on Juneteenth? No. Juneteenth is considered a bank holiday. The Federal Reserve along with most major banks such as Bank of America, Chase, and Wells Fargo will be closed. Are ATMs open on Juneteenth? Yes. If you find yourself in a bind and need to complete some transactions on Juneteenth, ATMs located outside branches and online banking are available. Is the post office open on Juneteenth? No. The U.S. Postal Service locations are not open on the holiday. If you need to buy stamps, some grocery or convenience stores sell them. Additionally, you can buy them online at www.usps.com. Is mail delivered on Juneteenth? No. You will not receive letters or written invitations sent through the mail on Juneteenth. The silver lining of this is that you wont get any paper bills either. The only exception is Priority Mail Express, which is delivered 365 days a year, including federal holidays. Are FedEx and UPS operating on Juneteenth? Yes. According to its website, UPS is open for business as usual on Juneteenth. This includes store locations and deliveries. The same can be said for FedEx locations and deliveries. State Department Is the stock market open on Juneteenth? No. It’s not possible to buy or sell stocks on Juneteenth. The New York Stock Exchange (NYSE) and the Nasdaq exchange are closed for the day. You can still trade Bitcoin to your heart’s content. Are schools open on Juneteenth? No. Because Juneteenth falls during the summer holiday, most schools are out of session already. Check in with your local summer camps or year-round institutions to double check how they are handling the holiday. Are restaurants, pharmacies, and grocery stores open on Juneteenth? Yes. Speaking in general terms, most retail locations will be open on Juneteenth. Target, Costco, and Aldi will all remain open. Olive Garden will serve its famous breadsticks. Major pharmacy chains such as CVS and Walgreens will be open, although they might be operating under limited hoursso check your local pharmacy hours to be sure. Smaller mom-and-pop shops, meanwhile, might close for the day, so it is a good practice to double check those.
Category:
E-Commerce
Want more housing market stories from Lance Lamberts ResiClub in your inbox? Subscribe to the ResiClub newsletter. There is a consensus among major publicly traded homebuilders that the spring 2025 housing marketespecially in many parts of the Sun Belt, where inventory has climbed above pre-pandemic 2019 levelswas softer than they expected. While some builders have started focusing more on maintaining marginsand some have slowed their housing startsLennar has continued to push forward. Instead of defending short-term profitability, LennarAmericas second-largest homebuilderis using this period of housing market softness as an opportunity to capture market share and maintain sales pace through bigger affordability adjustments. The ResiClub team reviewed Lennars Monday earnings report and listened in on its Tuesday earnings call. Here are our top nine takeaways: 1. Lennar: All of the markets we operate in experienced some level of softening According to Lennar, it has observed at least some softening” across all its markets this spring. Even its “strongest” markets have lost some momentum. This aligns with ResiClubs reporting. All of the markets we operate in experienced some level of softening [this quarter], Lennar co-CEO John Jaffe said on the companys June 17 earnings call. Even in our strongest performing markets, buyers needed the assistance of incentives. Incentives will vary across the different markets, but primarily in the form of assistance with mortgage rate buy downs. Jaffe added: The markets that experienced more challenging conditions during the quarter were the Pacific Northwest markets of Seattle and Portland, the Northern California markets of the Bay Area and Sacramento, the Southwestern markets of Phoenix, Las Vegas, and Colorado, and some Eastern markets such as Raleigh, Atlanta, and Jacksonville. 2. Lennar is deploying bigger sales incentives Lennars average sales price came in at $389,000 in Q2 2025thats down 8.7% from $426,000 in Q2 2024. And oh, boy, is Lennar spending a lot on incentives. In Q2 2025, Lennar spent an average of 13.3% of the final sales price on sales incentives, such as mortgage-rate buydowns. At that incentive rate, a home with a $450,000 sticker price would come with nearly $60,000 in incentives. According to John Burns Research and Consulting [see its historical chart here], thats the highest incentive level Lennar has offered since 2009and its significantly higher than Lennars cycle low in Q2 2022, when it spent 1.5% of the final sales price on sales incentives. Earlier this year, Lennar co-CEO Stuart Miller noted: “These are outsized [incentives] for the moment and normalized incentives should be around 5% to 6%. Pretty much: Where and when neededespecially in pockets of Florida, Arizona, Colorado, and Texas, where active inventory has bounced back and buyers have gained leverageLennar is cutting net effective prices through larger incentives to find the market and keep sales rolling. 3. Average price net of incentives is down across Lennars divisionseven more so in Florida The biggest net price cuts occurred in Lennars East divisionwhich, while it includes Florida, New Jersey, and Pennsylvania, is dominated by operations in the Sunshine Statethe epicenter of housing market weakness over the past year. 4. Additional margin compression During the pandemic housing boom, many publicly traded homebuilders achieved record profit margins as home prices soared and buyer demand ran red hot. Once the national housing demand boom fizzled out in the summer of 2022, many large homebuilders made affordability adjustments where and when needed to maintain their sales pace. Despite some profit margin compression, almost every major homebuilder entered 2024 with gross margins still above pre-pandemic 2019 levels. However, in recent quarters, margin compression has returnedespecially for Lennar. During the companys December 2024 earnings call, Lennar CFO Diane Bessette stated that the company anticipates further margin compression, with gross margins expected to range between 19.0% and 19.25% for Q1 2025. Lennars Q1 2025 gross margin ended up being 18.7%, and its Q2 2025 gross margin on home sales came in on June 16 at 17.8%. On the June 17 earnings call, Miller said he expects Lennars gross margin to be 18.0% in Q3 2025. 5. Lennar: Sales pace > margin As highlighted above, amid the softening market, Lennar has chosen to maintain sales pace over margin. Among the big builders, it has been the most aggressive on that front. Its now spending 13.3% of final sales price on incentivesand doing some of the biggest net effective price cuts in the Sun Beltin order to keep sales up. We are not there yet, but we are certain that we are finding a floor with margin and getting close to building it back even in a softer housing market environment, Miller said on the June 17 call. As the current market softness unfolded, we focused on consistent [sales] volume by matching our production pace with our sales pace. Miller added: Although some have questioned why we have maintained volume rather than protect our margin, we are very clear and steadfast on our strategy. Historically, we protected margin as market conditions stalled, and we generally led the way in protecting short-term profitability. But we learned through those times that once we step backwards and lose momentum, it becomes increasingly more and more difficult to restart and recapture volume. The machine slows and does not restart easily. We have concluded that by maintaining volume, we can create new efficiencies and new solutions that are durable for the future and will result in meaningful long-term efficiencies in our cost structure. 6. Sales steady-ish across markets Lennars Q2 2025 division-level performance was relatively steady once you account for its February 10 acquisition of Rausch Coleman Homes, which largely explains the sharp year-over-year jump in the South Central division. The Western division was a bit softer, reflecting broader cooling trends across many Western housing markets over the past six months. In contrast, Lennar saw a bit more growth in its Eastern division, particularly in Florida. Why? Its likely that Lennars earlier and more aggressive discounting in Florida is now paying off, attracting buyers who are still encountering resale sellers resisting the shifted pricing environment in their local neighborhoods. 7. Lennar: No impact from tariffsyet With respect to the question regarding tariffs, consistent with our commentary last quarter, we have had no impact to date on our costs from tariffs, Lennars Jaffe said on the earnings call. We work closely with the supply chain to prepare for alternative sourcing if it becomes necessary as well as the expectation that our trade partners will work with us to mitigate and offset cost impacts should they present themselves. 8. Lennar: Theres little evidence to support expectations of materially lower mortgage rates this year Initially, many in the housing market held on to the hope that higher interest rates were temporary, expecting inflation to subside and rates to drift back to lower levels. However, this expectation has not materialized, Miller said on the June 17 call. Looking ahead, theres little evidence to support expectations of materially lower interest rates in the near term. As a result, elevated interest rates have solidified as the new normal. The environment is about recognizing that short supply is keeping prices higher and that only lower prices enabled by lower cost structures will define affordability. 9. Homebuilder stocks remain in purgatory following Wall Streets pullback late last year
Category:
E-Commerce
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