Good morning and Happy New Year to you all. We made it to 2024, so that’s something at least. Hopefully we can all stick to our resolutions for once (looking at you Dad). On a side note, if your email is clipped due to the file size, please click “Read Online” in the top right corner of the newsletter for better formatting. Thank you and best wishes going into 2024.

International

Political ad spending is expected to reach record levels this year

Great, now we can look forward to even more political commercials. And yes, by ‘this year' I mean 2024. Those in swing states might want to skip to the next section. The US political advertising market is projected to reach record highs this year, so get ready to mute the TV.

The market is expected to reach a record $16 billion in 2024 (more than 31% higher than in 2020) according to estimates from GroupM. That’s bigger than the entire ad market of Australia.

The presidential race is driving the record spending (which isn’t surprising), as candidates now have more platforms than ever on which to ask Americans for votes. Among the new forms of advertising this cycle is artificial intelligence, which already has the Federal Election Commission (FEC) stirring in their seats.

• In August, the FEC opened up a public debate concerning the issue and whether campaigns should be allowed to use AI.

Why the increase?

The overturning of campaign finance restrictions in 2010 led to unprecedented investment in US elections. In turn, new digital ad formats created more opportunities for campaigns to spend that money on ad marketing.

One of the fastest-growing segments is Connected TV (CTV) advertising, or video ads that run on digital TV sets connected to the internet. They give campaigns the ability to target their ads more narrowly to voters with certain interests, instead of just age and gender demographics.

The phaseout of internet tracking cookies is forcing campaigns to rely more heavily on digital formats outside of traditional digital banner ads, such as streaming, keyword searches, podcasts, and other mediums.

OPEC is losing control over the oil market

Another nation is ditching the Saudi led organization, lowering prospects for the group as a whole. The key player here is Angola, as it’s taking its oil and going home. The African nation announced its exit from the Organization of the Petroleum Exporting Countries (OPEC) earlier this month, becoming the latest on a growing list of countries leaving the Saudi led group.

Why though? Angola, which was one of OPEC’s largest African oil producers, was not happy (to put it lightly) at the cartel when it cut Angola’s oil output quota by 25% in November.

Some backstory:

OPEC wants to be able to throttle production or slam its foot on the gas (literally) whenever necessary to maximize profits, so it needs countries with high oil-production. Now with another nation out the door, the group is down to 12 members (an additional 11 countries make up OPEC+, which Brazil will join next year).

Recently, oil prices have been leaning around $75 per barrel (which dropped $1 after Angola announced its exit), even after the cartel lowered production to try and boost prices, which upset some members of the org.

• Other countries that have left include Indonesia, Ecuador, and Qatar, which were all in the last seven years.

Losing power

The group only controls around 51% of the world’s crude oil market share, according to the International Energy Agency (IEA), the lowest since it expanded in 2016 to include OPEC+ countries. The slouch happens as countries outside of OPEC and OPEC+ are filling the gaps while the organization pulls back.

The US Energy Information Administration said US crude oil output hit a record 13.3 million barrels per day a couple weeks ago. Plus, the market is shrinking as portions of the world are looking for greener alternatives. Oil demand is expected to peak before 2030, according to the IEA. None of this spells success for OPEC.

The Super League is getting a resurgence

No, the Super League isn’t a team of superheroes. Apparently, it’s a proposed competitor to the UEFA Champions League. After a ruling by the European Court of Justice, the Super League has somehow managed to wriggle its way back into the soccer world.

In case you aren’t a huge soccer fan…

In 2021, a dozen of the best soccer clubs in Europe announced they would join the new European Super League… a high-paying competitor to the UEFA Champions League. However, many of them quickly changed their mind after widespread public disapproval of the new league. UEFA and FIFA threatened to sanction clubs participating in the Super League, which essentially killed it. Until now.

Second time’s the charm

The European Court of Justice ruled yesterday that UEFA and FIFA acted unlawfully by restricting clubs’ movements in 2021 and that they can’t forbid new competition from forming. The company behind the Super League, A22, then released their new plan:

• Replace the Champions League with a 64-club men’s competition and a 32-club women’s competition.

• Stream the Super League for free on a new platform that would make money from advertising, premium subscriptions, and sponsorships.

Many clubs have responded with sarcastic encouragement for the new league’s second try, as fans remain ambivalent to support it. However, they do have some support… Spanish juggernauts Real Madrid and Barcelona are backing the venture, possibly paving the way for others to join later down the road.

Miscellaneous

Rite Aid was caught using AI to scan its customers faces… without permission

The third largest drugstore chain in America found its way into trouble over its AI facial recognition software. Federal regulators claimed Rite Aid never told customers it was using facial recognition software on them while they shopped, or that the AI system was wrongly flagging people as potential threats to the store.

Rite Aid agreed not to use the software for five years after the Federal Trade Commission accused the company of causing “emotional and reputational harm” to customers at stores between 2012 and 2020. According to a complaint by the FTC, Rite Aid’s facial recognition system:

• Incorrectly identified customers as shoplifters thousands of times and prompted a search of an 11-year-old girl.

• Generated over 900 match alerts to one person’s picture in its database in 130 stores during a five-day period.

• Was more likely to return false-positive matches in areas with large Black, Latino, and Asian communities.

How did the software work?

Rite Aid trained security workers in its stores to feed images into an “enrollment database” of people it considered “persons of interest,” and employees were told to “push for as many enrollments as possible.”

The databases were filled with low-resolution images, most of which were grabbed from closed circuit television, phone cameras, and media reports, the FTC said. The system caused thousands of false-positive matches that incorrectly indicated that a customer was a “match” for a person in Rite Aid’s database. Even worse, Rite Aid had no way of tracking false positives, the complaint said.

Rite Aid accepted the ban from the FTC, despite disagreeing with it, and claimed they stopped using the software over three years ago.

Hermès heir wants to leave billions to his gardner

This guy must be really good at tending to plants. A billionaire’s former gardner has a chance to inherit a fortune after he changes his will.

Nicolas Puech, a billionaire descendant of the founder of French luxury designer Hermès, is looking to alter the destiny of his fortune by adopting his 51-year-old former gardener. The (potentially) richest gardner ever, if adopted, would stand to inherit at least half of Puech’s estimated $13 billion estate.

However, it would take a lot. Adult adoption laws in Switzerland, where they live, are strict and have complex requirements. Even despite the adoption requirements, Puech’s plan faces legal obstacles from his own charity, the Isocrates Foundation, due to an inheritance contract.

If Puech, who doesn’t (knowingly) have any kids, were to suddenly adopt an heir, at least 50% of his Hermès shares would go to a son instead of the foundation, which called the potential move “void and unfounded.”

But why the gardner?

Many speculate that the unique succession plan may have something to do with a quarrel between Hermès and luxury conglomerate LVMH. According to Bloomberg, Puech became a family outcast because of his role in the fight, which led to him leaving the board of Hermès and supposedly falling out with the rest of the family. Neither Puech’s lawyer nor Hermès have commented on the matter, leaving things up in the air for the time being.

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The Best of 2023

Seeing that we just started a new year, why not look back at the best 2023 had to offer, for old times sake?

Media Mania

2023 had quite the pool of movies, music, TV, and more. Here’s a list (of lists) that compile most of our favorite things from 2023 that distracted us from whatever we didn’t want to pay attention to (certainly not my girlfriend).

Movies

Just a heads up, there will be a lot of Oppenheimer on these. Christopher Nolan’s historical epic headlined a great year for cinema and (hopefully) wins a good selection of Oscars.

• The New York Times Top 10

• The Atlantic Top 10

• IndieWire’s annual critics poll

• The Sight & Sound Top 50

TV

Succession ended its four-season long run this year and should be a first ballot Hall-of-Famer along with Breaking Bad and GOT. But Beef, The Last of Us, and Invincible were some of my personal favorites.

• The Ringer Top 10

• Vulture critics’ Top 10s

• New Yorker Top 10

• Top 100 on Rotten Tomatoes

Music

You’ll find lots of SZA, Zach Bryan, and Olivia Rodrigo here. You won’t find any Creed, but I’d argue that “Higher” is the one of the better songs of the year (at least while it was hyping up the Vikings locker room).

• Billboard staff Top 50 albums

• The Ringer Top 27

• NPR Music Top 50

Books

Just a heads up, you won’t find your mom’s favorite romance novel on here. Most of the books on these lists are something you’d read to actually learn a thing or two. Go figure.

• NPR Fresh Air Top 10

• New York Times 100 notable books

• Inc.’s 15 best business books

Video games

While it wasn’t a hugely successful year for originals, it sure was a good one for sequels. Baldur’s Gate 3, Alan Wake 2, and Spider-Man 2 dominated the charts this year and might also be the reason why your electric bill was higher than usual. Sorry parents.

• IGN’s best game of 2023 nominees

• The Washington Post Top 10

• Polygon Top 50

Intriguing Tech

2023 was a big year for technology. ChatGPT ran the board, showcasing just how influential AI can be (like asking DALL-E to make an image of the Pope wearing a giant white puffer).

Apps of the year

Aside from the usual favorites (TikTok, Instagram, YouTube, etc.), these apps captivated iPhone and Android users in 2023.

• Apple’s App Store Award winners

• Google Play’s best apps and games

• “17 iPhone Apps I couldn’t live without in 2023” (Digital Trends)

Inventions of the year

These have everything from smokeless fire pits to an AI DJ.

• Time’s best inventions of 2023

• Popular Mechanics’s best gadgets of 2023

• CNET’s most noteworthy tech of 2023

Notable people in tech

It’s hard to make it through a list of tech CEOs that don’t include Mark Zuckerberg, Elon Musk, and Sam Altman. For good reason.

• “The richest American tech billionaires in 2023” (Forbes)

• Who’s who of AI (New York Times)

• Time’s 100 people in AI

Fast Facts

Correct Coke: Why does McDonalds Coke hit different? Click here to find out.

Flu Fiasco: Bird flu is likely to spread in Antarctica, posing existential threats to some species, including emperor penguins, according to experts.

Public Predators: A judge ordered the public release of the names of 150 people (with the exception of three) mentioned in court documents relating to Jeffrey Epstein, the dead financier accused of sexual abuse and human trafficking.

Dollar Data: How far would $1 in 1999 take you in 2024? See for yourself.

Tax Turnaround: The IRS said it will waive $1 billion in late-payment penalties on back taxes from 2020 and 2021.

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