This week looks at the aftermath of a popular influencer's untimely death, the clock ticking down on TikTok and what the Omnicom/IPG merger means for the rest of the communications industry.
Disney Influencer Dies From Food Allergy at Industry Event
What happened: Last week, 34-year-old Dominique Brown, a Disney influencer, passed away after suffering a severe allergic reaction during an event hosted by pop culture merchandise retailer BoxLunch.
Brown also co-founded Black Girl Disney, an online community for Black Disney influencers in a predominantly white interest group.
According to People Magazine, Brown inquired about allergens in the food at the event, and staff at the event told her it was safe to eat. She consumed the item and became ill according to onlookers at the event, held at Vibiana, an event venue in downtown Los Angeles. Emergency services came to the scene, but without immediate access to an EpiPen, they could not administer services in time.
BoxLunch released a statement saying "Our hearts go out to her family and friends, and we will do everything we can to support them and the members of the BoxLunch Collective and our team during this painful time." The company is conducting an independent investigation into the incident and offering grief counseling to staff and members.
Vibiana also expressed deep sympathy for Brown's family and loved ones, stating that the venue is fully committed to a thorough internal review and is working with all parties to understand the tragic incident.
Communications lessons: Allergic reactions do not typically result in ill-timed deaths in today’s prepared society. In fact, these instances are typically preventable when the right supplies are on hand and staff is correctly educated.
Jenny Wang, SVP at Susan Davis International, says BoxLunch offering a statement and grief counseling are the correct moves, but much of the damage has already been done—not just externally with its reputation, but internally with their influencer members.
“BoxLunch is going to have to be very transparent with its other influencers in terms of all investigation updates,” Wang says. “It risks influencers not wanting to work with the company again otherwise.”
Wang notes how this unfortunate incident shows the flip side of the coin when working with influencers.
“Influencers have powerful reach. If something tragic like this happens, it can also have a very detrimental impact on the brand.”
The Clock Continues to Tick on the TikTok Ban
What happened: TikTok continues to be top of mind for many communicators as the clock continues to tick on a possible ban. This week the platform asked a federal appeals court to bar enforcement of a potential ban until the Supreme Court reviews its challenge to the law states that TikTok’s Chinese parent company ByteDance must sell off its stakes in the social media company.
If ByteDance does not spin off TikTok, the law states that the app must shut down on Jan. 19, 2025.
According to The Associated Press, the platform’s lawyers' appeal, filed Monday, stated that “even if a shutdown lasted one month, it would cause TikTok to lose about a third of its daily users in the U.S.”
The ban comes from long-standing concerns over TikTok’s ties to the Chinese government and violations of user data privacy.
Communication lessons: Of course, brands, organizations, public figures, advertisers and agencies are paying close attention to what happens next with TikTok’s case, since they would be subject to the ban, if it occurs.
Neil Elan of Stubbs Alderton & Markiles, LLP, a firm that advises leading social media, digital entertainment and technology companies on complex corporate transactions, strategic initiatives and regulatory compliance matters, says while it’s impossible to predict how the matter will play out in courts, those who use TikTok for business should be prepared.
“Advertisers and agencies should review their contracts to see how a ruling would affect their ability to comply with their obligations with counterparties,” Elan says. “This could potentially trigger grounds for invoking a force majeure clause, a common term in contracts that allows a party to avoid performing obligations under the contract if there are extraordinary circumstances that prevent performance.”
This could cause quite a mess for agencies and brand partnerships, not to mention influencer partnerships regarding payment, budgets and deliverables.
“If the TikTok ban is upheld, and the media company/agency is no longer able to fulfill contractual obligations due to the ban, then the force majeure clause could potentially come into play to excuse the party from performance,” Elan says.
Omnicom and IPG merger
What happened: This week Omnicom announced its intentions to acquire Interpublic Group, combining to create the largest holding company of marketing, advertising and communications organizations in the world.
Before acquisition, Omnicom and IPG held the world’s third- and fourth-largest spots, respectively.
The mega company will combine PR juggernauts such as FleishmanHillard and Weber Shandwick as well as Porter Novelli, Golin and Ketchum.
Communication takeaways: The first question many communicators are asking is how this will affect the PR industry. At first glance, the merger might seem threatening for many small and mid-sized communications agencies. How can an agency with 50 employees and maybe $15 million in annual revenue compete with an organization that’s home to hundreds of thousands of staff and billions of dollars in resources?
Eric Yaverbaum, CEO of Ericho Communications, says agencies shouldn’t subscribe to doom and gloom quite yet.
“Yes, the merger will make the combined agency more competitive among many companies looking for advertising and communications services. Yet (as is the case currently), there’ll still be plenty of public figures and organizations of all sizes who will find that Omnicom and IPG aren’t for them,” Yaverbaum says.
He says deterrents for some clients could include less attention to specific clients' needs and hefty retainer costs. He also noted a potential problem with the merging of all those clients.
“The merger will likely bring a whole host of client conflicts with current loyal clients leaving the mega company because it’s now also representing a competitor. This allows other agencies to potentially get those clients’ attention and, if they successfully make their case, their business,” he says.
Nicole Schuman is Managing Editor at PRNEWS.