BetterHelp loses customer trust while e.l.f. builds it

Welcome to Wednesday. Halfway to the weekend and we have two tales for you: one cautionary, one celebratory. Let’s get into it.

BetterHelp Illegally Shares Consumer Data for Marketing Purposes

Although first-party data is the new wave, marketers need to be careful about how they obtain it—and what they do with it. Currently, the Federal Trade Commission (FTC) has accused BetterHelp of illegally sharing consumer data. According to the FTC, BetterHelp “used and revealed consumers’ email addresses, IP addresses, and health questionnaire information to Facebook, Snapchat, Criteo, and Pinterest for advertising purposes.”

Specifically, the FTC alleges BetterHelp shared this information with “certain third parties for re-targeting—the targeting of advertisements to consumers who previously had visited BetterHelp’s website or used its app, including those who had not signed up for the company’s counseling service.” Compare this to Sam’s Club's retargeting using their own 1st-party data, legally.

Sharing sensitive information is always a no-no. Misleading consumers about which information you plan to use is also a no-no. In this brave new world of first-party data, marketers must respect privacy and consent—the whole reason third-party cookies are being abandoned.

E.l.f. Knows its Audience—and is Reaping the Rewards

Gen Z’s favorite beauty brand, e.l.f. cosmetics, is marketing its new O Face Satin Lipstick with music. The brand shared with Marketing Dive that this product is “its biggest bet yet on the lipstick category,” meaning they needed a marketing initiative to match.

Enter: this social media, music-fueled campaign. The O Face Satin Lipstick initiative includes an original song “Lip Positions,” an encouragement to e.l.f. customers to use the song as a sound on TikTok, and a partnership with beauty influencer Meredith Duxbury (featured in the original “Lip Positions” video).

And in a comment for one of Duxbury’s e.l.f. videos, user UwU notes, “and elf is CRUELTY FREE so it’s a YEEEEESSS,” reminding marketers Gen Z cares about quality and their brands’ values—of which, e.l.f. is serving both.

e.l.f. knows its ideal customer and is catering, almost exclusively, to them. By combining a well-liked influencer, a catchy, social-media-optimized song, and cruelty-free cosmetics, e.l.f. has pinned down the Gen Z trifecta. And e.l.f.’s stock is outperforming peers because of it.

Sponsored by Masterworks

Outperform Apple stock by 2x? This platform helped investors do just that

In just 604 days, a $10,000 investment in a Cecily Brown offering from Masterworks would have secured an eye-popping $4,900 profit. In the same time period, a $10,000 investment in Apple stock would have realized an underwhelming $2,400 profit.

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It's also not the first time Masterworks has delivered impressive results for investors.

In fact, every single one of Masterworks’ 11 exits to date has returned a profit to their investors. Securing 32%, 39.3%, 36.2%, 27.3%, 9.2%, 33.1%, 21.5%, 17.8%, 13.9%, 35%, and 10.4% net annualized returns!

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“Net Return" refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the date the sale is consummated. IRR may not be indicative of Masterworks paintings not yet sold and past performance is not indicative of future results. See important Regulation A disclosures at masterworks.com/cd.

Around the Web

• The U.S. economy hasn’t entered a recession yet—and only the rich are benefitting.

• California broke ties with Walgreens, reminding everyone brand values matter.

• The Biden admin is proposing new labeling, a.k.a., marketing, restrictions for meat, poultry, and eggs.

• Snoop Dogg has launched a California Sauvignon Blanc—addressing a new market segment with his first white wine.

• Google’s VP of global ads dishes on the DOJ lawsuit.

Just Can’t Get Enough

Taking care of the environment. It’s more important now than ever (since, y’know, we weren’t taking care of it before, and it’s developed into a dire situation).

• On TikTok, the hashtag #StopWillow is combating the Alaska oil drilling project, Willow.

• The UN just signed a treaty to protect the high seas—because 60% of the world's ocean is international water.

Thanks for joining us, and we’ll see you Friday!