Years ago, advertising largely used to be based around TV, radio, magazines and newspapers. Then the Internet came along and changed things dramatically.
One of the most lucrative areas of Internet advertising is when Instagram posts are sponsored by celebrities.
UK-based company Hopper HQ publishes an annual Instagram rich list.
The most recent list shows former wrestler turned actor, Dwayne “The Rock” Johnson as the celebrity thought to be able to charge the most for a sponsored Instagram post.
Whilst the actual amount that a celebrity gets for posting a sponsored Instagram message is confidential, Hopper HQ run a number of social media accounts on behalf of individuals and companies and are regarded as having pretty accurate estimates.
Back to The Rock and Instagram posts.
How much do you think he can charge for a sponsored post?
Before going into detail, it’s worth remembering that he has 187 million Instagram followers. That’s an impressive figure and roughly equivalent to the whole of the population of the UK, France and Italy combined.
It’s been estimated that he can charge more than $1 million per Instagram post.
That’s pretty impressive isn’t it?
He’s not alone though and the top 10 celebrities who can charge the most per Instagram post according to Hopper HQ are
1. Dwayne ‘The Rock’ Johnson, 187m followers – over $1m per post
2. Kylie Jenner, 182m – $986,000 per post
3. Footballer Cristiano Ronaldo, 225m – $889,000 per post
4. Socialite Kim Kardashian, 176m – $858,000 per post
5. Pop star Ariana Grande, 191m – $853,000 per post
6. Actress and singer Selena Gomez, 180m – $848,000 per post
7. Pop star Beyoncé Knowles, 149m – $770,000 per post
8. Pop star Justin Bieber, 139m – $747,000 per post
9. Pop star Taylor Swift, 135m – $722,000 per post
10. Footballer Neymar da Silva Santos Junior, 139m – $704,000 per post
https://www.theexpgroup.com/wp-content/uploads/2020/07/dwayne-johnson.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2020-07-21 11:52:592020-07-21 11:52:59Rocking along nicely…
Which of the following two motor manufacturers would you say is the most valuable?
The first one produced 2.4 million cars whilst the second one produced 103,000.
This isn’t a trick question but an illustration of how market valuation is very much based on expectations of future rather than historical performance.
The car manufacturer who produced 2.4 million cars was Toyota and up until yesterday was the highest valued motor manufacturer in the world.
The company that only produced 103,000 cars was Tesla and yesterday it’s shares increased to above $1,000 for the first time. This valued the company at £207 billion which was over $6 billion more than Toyota was valued by its investors.
So, despite only producing approximately 4% of Toyota’s production, Tesla is currently the most valuable motoring manufacturer in the world.
There are views that the market sees Toyota as a lumbering giant who is being slow to get into full electric vehicles whilst Tesla is leading the way in terms of the future of driving and electric vehicles in particular.
Tesla certainly seems to have turned the corner. After years of making losses, Tesla has reported 3 straight quarters of profits and is now worth more than Ford, General Motors, Honda and Fiat Chrysler combined.
As well as being pretty innovative in terms of their car designs, Tesla have come up with an impressive idea for their car names.
Earlier this year, Tesla’s Senior Director of Artificial Intelligence Andrej Karpathy gave a presentation on the use of artificial intelligence for full self driving.
During the presentation it became clear that the names of the cars spelt out a nice marketing message.
Their current car models are the Models S, 3, X and Y which near enough spells out SEXY (they couldn’t have the Model E as Ford had already trademarked that so Tesla called it the Model 3 but stylised the 3 so that it looked like E).
They also have 4 vehicles in the pipeline.
Namely, the Cybertruck, the All-Terrain Vehicle, the Roadster and the Semi.
The first letters from the names of the 8 Tesla vehicles spell out SEXY CARS…
https://www.theexpgroup.com/wp-content/uploads/2020/07/tesla-car-range.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2020-07-02 14:19:242020-07-05 12:53:35The most valuable car company is…
Sometimes a little bit of creative thinking can go a long way. This bit of creativity though went a very long way indeed.
Creativity can add value to all types of businesses and this particular project involved technology and one of the largest sea birds.
There are 22 species of the albatross bird. With a wingspan of up to 3.5 metres, the wandering albatross species has the largest wingspan of any living flying bird. Importantly for this project though, they are also capable of flying long distances out to sea.
Illegal fishing by trawlers can seriously impact on fish levels. Organisations tasked with protecting fish levels can find it almost impossible to prevent this illegal fishing. In simple terms, the ocean is very large and the boats are pretty small so keeping track of them and what they are fishing for is very difficult.
In an innovative project led by the French National Centre for Scientific Research, 169 Albatrosses have been equipped with sensors. If the birds are in the vicinity of a boat, these sensors are able to tell whether the boat’s Automatic Identification Systems (AIS) are switched off.
Having the AIS systems switched off on a boat is common when the boat is fishing illegally.
The beauty of this project is that the albatrosses can cover huge areas and when the sensors identify boats with their AIS switched off, the enforcement boats can head to that location to investigate further.
The initiative is currently being trialled off the coast of New Zealand and over the last 6 months the birds have located 353 boats, 37% of which were not emitting the AIS signal.
https://www.theexpgroup.com/wp-content/uploads/2020/06/albatross_fishing.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2020-06-25 14:02:292020-06-25 14:02:29Flying high with creativity.
I’ve been a qualified accountant for a fair few years now.
I had the pleasure of bumping into my first auditing lecturer recently. It was at a business mixer event and even though it was a long time since we last saw each other he really hadn’t changed that much.
We got talking and I reminded him of something that he told me that I’ve remembered ever since and to me is a great way of explaining what is meant by “True and Fair”. Those of you that have studied financial reporting papers will be aware of the importance of “True and Fair” in connection with financial statements.
In summary, financial statements should provide what is generally understood as a true and fair view of the reporting entity’s financial position, performance and changes in financial position.
I always remember my lecturer telling me the story of the ship’s captain that was having a problem with his first mate who was always drunk. In the end the captain wrote an official entry in the captains log saying “Today, the first mate was drunk.”
The first mate was upset about this and the next time he took charge of the ship when the captain was asleep, he wrote in the log that “Today, the captain was sober”. This of course implied that on other days the captain wasn’t sober as he was drunk.
Now, the statement “today, the captain was sober” was clearly true but I’ll leave it up to you to decide whether or not it was fair!
https://www.theexpgroup.com/wp-content/uploads/2020/06/true-and-fair.png443788Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2020-06-02 12:47:142020-06-04 13:01:36The Captain was sober, the First Mate was drunk. Was that true? Was that fair?
Anyone that has studied hard for their exams will almost certainly at one time or another utilised the services of a strong coffee.
Whilst desperately trying to cram that last bit of knowledge into your brain before the exams there is often a temptation to grab a strong coffee late in the night to keep your mind awake.
For years students around the world have been utilising the caffeine in coffee to help get that extra mark or two.
Coffee is said to originate from East Africa where legend has it that a 9th century Ethiopian goat herder by the name of Starbucks Kaldi noticed that after his goats had ate some coffee beans they started bouncing around like teenagers at the local disco.
This started the journey of coffee and associated caffeine hits so loved by students around the world.
Over in China, one coffee chain has been in the news for all the wrong reasons.
Luckin Coffee was only set up 3 years ago but had lofty ambitions.
They described themselves as “a pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to customers” and had vowed to overtake Starbucks as China’s biggest coffee chain.
They grew quickly.
Very quickly in fact as within 3 years they had 4,500 outlets around China.
They were also one of the small number of Chinese organisations to quote their shares on the US Nasdaq market.
Things weren’t all they were made out to be though as in April their shares were suspended on the Nasdaq market after the company revealed that they had uncovered $310 million in fake transactions.
It appears that some people in the organisation were so keen for the growth of the company to continue that they created fake sales so as to give the impression that their revenue was growing quicker than it was in reality.
The company announced the discovery and warned the market that investors could no longer rely on previous financial statements that showed rapid growth.
The ongoing financial investigation by the company has resulted in the chief executive and the chief operating officer being fired yesterday and six other employers have been suspended whilst investigations continue.
Ethics are pretty important if you’re a partner in an accounting firm. Unfortunately for these guys though they weren’t the most ethical of people as they were involved in cheating in exams.
The cheating was uncovered by the SEC (Securities and Exchange Commission) in the US. They were initially investigating claims that KPMG had altered previously completed audit work after receiving stolen information about what inspections would be conducted by the Public Company Accounting Oversight Board.
During that investigation however they also found that numerous KPMG audit professionals cheated on internal training exams by sharing answers.
Cheating at exams by sharing answers? Surely that would be a junior member?
The key people involved were (now former) KPMG audit partners.
The investigation stated that former partners Timothy Daly, Michael Bellach, and John Donovan were involved in the cheating.
They had obtained images of questions and answers to the tests from subordinates and then shared them with members of their team.
The tests which were taking place were in connection with ensuring that KPMG audit staff understood certain accounting and auditing principles.
KPMG themselves became aware of potential cheating on the exams and began an investigation. They sent a document preservation notice to all KPMG staff (this basically means not to delete or destroy any potential evidence).
The ex-partners however ignored this preservation notice. They deleted various text messages and denied any wrongdoing to KPMG investigators.
KPMG were obviously not happy with the situation when the truth emerged and the partners soon became ex-partners of KPMG.
The three individuals were also suspended from appearing or practicing as an accountant before the SEC (although they can apply for reinstatement in the future).
KPMG had a pretty bad time of it last year in terms of the stolen PCAOB information and the exam cheating and had to pay a penalty of $50 million.
Steven Peikin, co-director of the SEC’s division of enforcement, said: “Audit professionals play a critical role in the integrity of the financial reporting process and the protection of investors. These actions reflect our commitment to hold these gatekeepers responsible for breaches of their professional obligations.”
A KPMG spokesperson said “We are a stronger firm as a result of the actions we are taking to strengthen our culture, governance and compliance program.”
https://www.theexpgroup.com/wp-content/uploads/2020/05/kpmg-partners.png6271119Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2020-05-15 13:27:172020-06-02 13:18:00KPMG partners cheated in exams.
Switzerland has a reputation for being the home of some of the most prestigious watch manufacturers.
Omega, Tag Heuer and Breitling are just three if the many famous brands of Swiss watches that produce extremely high-quality timepieces.
But things are changing though and there’s a modern-day challenger to their dominance.
That modern-day challenger is Apple.
Last year Apple sold more watched than the entire Swiss watch industry.
A recent report by Strategy Analytics estimated that Apple sold 30.7 million smartwatches last year (an increase of 36% on the 2018 figure).
Estimates for the entire Swiss watch industry showed sales of 21.1 million units last year (a 13% fall on the 2018 figures).
This is a difficult time for the Swiss watch industry as they face a number of challenges.
The younger generation especially are keen on the tech side of watches and these are very much in fashion.
Although some Swiss watch brands such as Swatch and Tissot are launching their own smart watches, their competencies and skills are very much based around the mechanical engineering of watches compared to software engineering which is needed for smart watches.
Another major challenge is their distribution channels and where they are sold.
Swiss watches are typically sold in jewellery shops whereas smart watches such as the Apple watch are sold in phone shops and Apple stores.
Certainly a challenging time for the Swiss watch industry.
Will these Swiss watch brands survive?
Only time will tell…
https://www.theexpgroup.com/wp-content/uploads/2020/04/apple-vs-swiss-watches.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2020-04-26 10:29:362020-04-26 10:31:21Time up for Swiss watches?
The salary of Boris Johnson, the current UK prime minister is just over £150,000. I’m sure that most Prime Minsters don’t do the job for the money but there can be some pretty significant financial benefits when they move on from being the prime minister.
As the PM, Mr Johnson can’t do any other work whilst in his job but other MPs can. Theresa May was Boris Johnson’s predecessor but now is back to being a standard MP.
According to the government’s register of interests though she’s doing quite nicely on the financial side of things.
PwC for example paid Mrs May in January to do a speech. The total time involved including preparation and travel was 12 hours.
So, how much do you think PwC paid Mrs May for this?
Go on, have a guess.
She received approximately £96,000 for the speech.
Now, that’s not bad for 12 hours work.
As well as receiving £96,000 from PwC she also received money from other organisations for speeches delivered during the first quarter of 2020. These were:
Approximately £115,000 from Dubai Women Establishment for a speech in February (19 hours, including preparation and travel).
Approximately £115,000 from the Structured Finance Association for a speech in February (25 hours, including preparation and travel).
Approximately £115,000 from Brown University, Rhode Island, USA. (14 hours, including preparation and travel).
Approximately £115,000 from Trinity University, Texas, USA. (14 hours, including preparation and travel).
Over £500,000 for 5 speeches in 3 months.
Not bad work if you can get it.
According to a statement by Mrs May in the Register of Members’ Financial Interests, these payments “are made to the Office of Theresa May Limited and used to pay employees, maintain my ongoing involvement in public life and support my charitable work.”
https://www.theexpgroup.com/wp-content/uploads/2020/04/theresa-may.png9441678Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2020-04-18 14:20:172020-04-18 14:21:22How much for a speech?
KPMG in the UK has been fined by the Financial Reporting Council for what only can be described as pretty poor auditing.
The situation behind the fine involves professional scepticism, or to be more precise, a lack of professional scepticism.
Professional standards define professional scepticism as “an attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatement due to fraud or error, and a critical assessment of audit evidence.”
Or to put into simple words, to question and challenge what the client is saying and not to simply accept what they are saying at face value.
KPMG were fined £700,000 (which was reduced to £455,000 for early settlement) and reprimanded former senior partner for Manchester, Nicola Quayle for a “failure to apply sufficient professional scepticism”. Nicola was also fined £45,000 (reduced to £29,250 for early settlement).
The reason for the fine was because the FRC held that KPMG had failed to obtain and document sufficient audit evidence in relation to supplier-funded rebates.
These were “complex supplier arrangements” and KPMG should have been on alert to pay particular attention to “these types of complex supplier arrangements.”
Claudia Mortimore, deputy executive counsel to the FRC, said: “This is a measured and proportionate package of sanctions, which balances on the one hand the limited nature of the breaches, which did not call into question the truth or fairness of the financial statements, with the fact that auditors should have been on alert to pay particular attention to these types of complex supplier arrangements. Professional scepticism remains at the core of an auditor’s duty and the FRC will take appropriate action where it has been lacking, as in this case.”
This event took place back in the 2015/16 financial year and KPMG in the UK released a statement saying:
“We regret that specific aspects of our audit of this company for the 2015/2016 financial year did not meet the required standards.
As the FRC makes clear, there is no question as to the truth and fairness of the financial statements. Audit quality is of paramount importance to our firm and we have updated our audit processes and procedures to address the areas of concern.”
Deloitte has stated that Manchester United are better than Liverpool.
Now before anyone starts getting concerned that Deloitte are moving away from finance and becoming football pundits, I should stress that I’m referring to the Deloitte Football Money League.
Deloitte has been compiling the Football Money League since 1996/97 and the League lists the top 20 clubs in the world for revenue in a football season. They have recently released the figures relating to the 2018/19 season and a few records were broken.
The combined revenue for the 20 richest clubs in the world grew by 11% and reached a new high of €9.3bn (£8.2bn).
It’s a Spanish top two for the second consecutive year. This time though the positions are reversed with Barcelona taking top spot and Real Madrid dropping to second place.
In terms of the fortunes of the eight English Premier League clubs in the table, Manchester United remains in third with revenue of €712m.
United’s closest Premier League rivals, Manchester City and Liverpool, generated revenues of €611m and €605m respectively.
The Deloitte Football Money League measures a club’s earnings from match day revenue, broadcast rights and commercial sources, and ranks them on that basis. The study doesn’t include player transfer fees though.
More details on the report can be found here and the top 10 in the league are:
1 Barcelona €841m
2 Real Madrid €757m
3 Manchester United €712m
4 Bayern Munich €660m
5 Paris Saint-Germain €636m
6 Manchester City €611m
7 Liverpool €605m
8 Tottenham Hotspur €521m
9 Chelsea €513m
10 Juventus €460m
https://www.theexpgroup.com/wp-content/uploads/2017/01/football-report.jpg476847Stevehttps://www.theexpgroup.com/wp-content/uploads/2018/06/styleguide-EXP-4.pngSteve2020-03-20 00:24:002020-03-20 12:09:43Manchester Utd and Deloitte
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