Latest / Uphoff on Media Podcast / The Approval That Should Never Have Happened
Transcript
- 0:01SPEAKER_00: Hey there, it's Tony.
- 0:03SPEAKER_00: This is a special edition of the Uphoff on Media podcast tied to
- 0:06SPEAKER_00: a special edition Substack post.
- 0:09SPEAKER_00: I occasionally come across something ripped from the headlines
- 0:12SPEAKER_00: that I think has particular relevance for B2B leaders.
- 0:16SPEAKER_00: This example is one you're likely already aware of.
- 0:19SPEAKER_00: What you may not be thinking,
- 0:20SPEAKER_00: however,
- 0:21SPEAKER_00: is how a poorly thought-through ad for a golf driver relates to what I do as
- 0:26SPEAKER_00: a B2B marketer.
- 0:27SPEAKER_00: Turns out it's a real-time case study and one that exposes
- 0:30SPEAKER_00: a challenge you may not realize that you have.
- 0:33SPEAKER_00: Look, I don't use Uphoff on Media to make personal statements or pass moral judgments.
- 0:38SPEAKER_00: However,
- 0:39SPEAKER_00: as a husband,
- 0:39SPEAKER_00: father of a daughter,
- 0:40SPEAKER_00: and a grandfather of two girls,
- 0:41SPEAKER_00: I'll say that I was offended by this ad and I thought it was
- 0:44SPEAKER_00: an incredibly poor taste for all the reasons that critics have noted.
- 0:48SPEAKER_00: I'm also a new golfer about to get fitted for clubs.
- 0:51SPEAKER_00: Guess which brand my wife asked me to drop from the shortlist.
- 0:56SPEAKER_00: But here's why this matters to you.
- 0:58SPEAKER_00: Partner-sourced revenue runs roughly 24% of new bookings in horizontal SaaS
- 1:03SPEAKER_00: and even higher in hardware and services-led businesses.
- 1:08SPEAKER_00: As agentic AI mainstreams, we're actually seeing an increase in domain-specific partnering.
- 1:13SPEAKER_00: Each of these partnerships uses some form of co-branding,
- 1:17SPEAKER_00: marketing, PR,
- 1:18SPEAKER_00: thought leadership,
- 1:19SPEAKER_00: white papers, demand generation and events as a part of their GTM programs.
- 1:24SPEAKER_00: The vast majority of companies I talk to don't have a structured way
- 1:28SPEAKER_00: of ensuring partners adhere to brand guidelines.
- 1:31SPEAKER_00: B2B is very different than B2C.
- 1:34SPEAKER_00: When a prospect or customer becomes uncomfortable with a claim,
- 1:37SPEAKER_00: an approach, or a fact stated by a partner, they're going to tell you.
- 1:41SPEAKER_00: They won't take to social media.
- 1:43SPEAKER_00: There won't be an organized boycott.
- 1:45SPEAKER_00: The brand damage shows up as deal slowdowns,
- 1:48SPEAKER_00: non-renewals,
- 1:49SPEAKER_00: and dropped short lists,
- 1:51SPEAKER_00: buried inside quarterly numbers you'll never trace back to the cause.
- 1:56SPEAKER_00: Okay, let's get to work.
- 1:58SPEAKER_00: This episode is titled, The Approval That Should Never Have Happened.
- 2:03SPEAKER_00: A golf ad just exposed the design flaw sitting inside every co-marketing deal
- 2:08SPEAKER_00: in B2B tech and marketing.
- 2:11SPEAKER_00: A golf equipment company just provided a real-time case study to everyone building,
- 2:15SPEAKER_00: running, funding, or starting a B2B company.
- 2:18SPEAKER_00: It's the exact risk sitting inside every co-marketing deal,
- 2:22SPEAKER_00: sponsored campaign, and reseller partnership on the books right now.
- 2:26SPEAKER_00: Callaway partnered with Good Good Golf,
- 2:29SPEAKER_00: the YouTube channel with roughly 4 million subscribers, to launch a new driver.
- 2:34SPEAKER_00: The launch ad showed Good Good co-founder Garrett Clark running full speed
- 2:38SPEAKER_00: into fellow Good Good staffer Alexis Mastowski knocking her to the ground
- 2:43SPEAKER_00: and standing over her.
- 2:44SPEAKER_00: It went out under both brands.
- 2:47SPEAKER_00: It set off an immediate backlash that prompted Callaway's CEO Chip Brewer
- 2:51SPEAKER_00: to make this public statement.
- 2:54SPEAKER_00: Quote, that approval should never have happened.
- 2:56SPEAKER_00: Mistakes were made and we are taking the matter various seriously.
- 3:00SPEAKER_00: End quote.
- 3:02SPEAKER_00: Read that sentence again,
- 3:03SPEAKER_00: not a rogue post got out,
- 3:05SPEAKER_00: not someone published without sign off, someone approved it.
- 3:08SPEAKER_00: That's the whole story and it's
- 3:10SPEAKER_00: the same story hitting inside your partner marketing schedule right now,
- 3:14SPEAKER_00: just without the dramatic headline.
- 3:17SPEAKER_00: The stakes here weren't small.
- 3:19SPEAKER_00: Equipment is roughly 70% of Callaway's revenue and
- 3:22SPEAKER_00: the company's highest margin segment,
- 3:24SPEAKER_00: about 23% operating margin,
- 3:27SPEAKER_00: worth roughly a hundred million in operating income in a typical quarter.
- 3:31SPEAKER_00: The market didn't wait to see how this played out.
- 3:34SPEAKER_00: Callaway stock dropped 2% the day the story broke,
- 3:37SPEAKER_00: a one-day loss of about $57 million in market value,
- 3:41SPEAKER_00: more than half of what the entire equipment division earns in a full quarter.
- 3:46SPEAKER_00: Dick's and Golf Galaxy didn't just pull the ad.
- 3:48SPEAKER_00: They pulled every piece of GoodGood merchandise from shelves and websites.
- 3:53SPEAKER_00: The PGA Tour,
- 3:54SPEAKER_00: set to have GoodGood title sponsor a new event this November,
- 3:57SPEAKER_00: is now calling that sponsorship, quote, a fluid situation, end quote.
- 4:02SPEAKER_00: Golf Channel postponed a show built around the partnership.
- 4:05SPEAKER_00: None of that damage came from the driver.
- 4:07SPEAKER_00: All of it came from one piece of co-branded content.
- 4:11SPEAKER_00: Nobody stopped in time.
- 4:13SPEAKER_00: The partner had the pen, Callaway kept the liability.
- 4:16SPEAKER_00: Good Good produced the ad and kept creative control.
- 4:19SPEAKER_00: Callaway got access to Good Good's platform and audience,
- 4:22SPEAKER_00: which is the entire point of a deal like this.
- 4:24SPEAKER_00: Borrowed authenticity, borrowed reach, but Callaway still held approval rights and used them.
- 4:30SPEAKER_00: The moment the ad published,
- 4:33SPEAKER_00: Callaway owned 100% of the retail fallout,
- 4:36SPEAKER_00: the sponsorship fallout and the market reaction,
- 4:39SPEAKER_00: despite writing none of the content.
- 4:41SPEAKER_00: That's the actual structure of most co-marketing and B2B, too.
- 4:46SPEAKER_00: Sponsored content on a partner's channel,
- 4:48SPEAKER_00: a joint webinar where the guest controls the slides,
- 4:50SPEAKER_00: a reseller's campaign carrying your logo, a sponsored analyst report.
- 4:55SPEAKER_00: You get named.
- 4:56SPEAKER_00: You rarely get final cut.
- 4:58SPEAKER_00: The exposure transfers with the logo.
- 5:00SPEAKER_00: The control doesn't.
- 5:02SPEAKER_00: Nobody wanted to slow down the growth.
- 5:05SPEAKER_00: Good Good went from roughly 800 retail doors to 4,000 in the past year,
- 5:09SPEAKER_00: and its merchandise was reportedly among the top sellers at Dex and Golf Galaxy
- 5:14SPEAKER_00: in 2025.
- 5:16SPEAKER_00: That's the detail that actually explains the failure.
- 5:18SPEAKER_00: Somebody at Callaway had the authority to kill that ad before it published.
- 5:21SPEAKER_00: Almost nobody in that position wants to be the one who slows down
- 5:25SPEAKER_00: the fastest growing partner in the building,
- 5:28SPEAKER_00: especially when that partner is driving the growth number everyone in
- 5:30SPEAKER_00: the room gets credit for.
- 5:32SPEAKER_00: That's the sharper version of there was no process.
- 5:36SPEAKER_00: There usually is a process.
- 5:38SPEAKER_00: What's missing is a reviewer with the standing and the incentive to actually use it
- 5:43SPEAKER_00: against a partner who's driving the most growth for the business.
- 5:47SPEAKER_00: B2B runs on the identical structure with less obvious violence.
- 5:51SPEAKER_00: Partner-sourced revenue makes up roughly 24% of new bookings in horizontal SaaS
- 5:56SPEAKER_00: and considerably more in hardware and services-led businesses,
- 6:00SPEAKER_00: according to a 2026 Crossbeam and Partnership Leaders survey of more
- 6:04SPEAKER_00: than 2,100 vendors.
- 6:06SPEAKER_00: Co-marketing isn't a side channel anymore.
- 6:10SPEAKER_00: It's load-bearing.
- 6:12SPEAKER_00: Most of what goes wrong in that channel won't look like a golf ad.
- 6:15SPEAKER_00: It'll look like an over-claim stat in a partner's co-branded blog post,
- 6:19SPEAKER_00: a competitive claim in a joint ad copy that draws a legal letter,
- 6:23SPEAKER_00: a webinar co-host who goes off script on something a company never wanted attached
- 6:28SPEAKER_00: to its name,
- 6:29SPEAKER_00: a sponsored analyst report built on a number nobody at
- 6:32SPEAKER_00: the sponsor actually verified.
- 6:34SPEAKER_00: Same structural gap, Far lower drama, same exposure.
- 6:38SPEAKER_00: The speed of that content is changing, too.
- 6:40SPEAKER_00: Partner and creator content publishes in hours.
- 6:43SPEAKER_00: Most brand review chains were built for campaigns that assumed weeks.
- 6:47SPEAKER_00: I've written about the operating shift in genetic AI is forcing on B2B workflows
- 6:52SPEAKER_00: and loop engineering.
- 6:53SPEAKER_00: And this is the same compression showing up in governance instead of production.
- 6:58SPEAKER_00: AI didn't create this gap.
- 7:00SPEAKER_00: It's about to widen it by adding a third content source alongside partners
- 7:04SPEAKER_00: and creators that moves even faster and has the same unclear owner of the veto.
- 7:10SPEAKER_00: The relationship rarely stays contained to the campaign.
- 7:14SPEAKER_00: Retailers didn't just pull an ad, they pulled a brand.
- 7:17SPEAKER_00: The tour didn't distance itself from a video.
- 7:19SPEAKER_00: It put a signed sponsorship in question.
- 7:22SPEAKER_00: That's the part most people running these partnerships under price.
- 7:25SPEAKER_00: A co-marketing misfire With a channel partner or reseller rarely stays bounded to
- 7:31SPEAKER_00: that one campaign.
- 7:32SPEAKER_00: It puts deal registration, MDF,
- 7:35SPEAKER_00: roadmap access,
- 7:36SPEAKER_00: and the whole commercial relationship in play because the retailer or
- 7:40SPEAKER_00: the platform doesn't distinguish between the partner and
- 7:43SPEAKER_00: the content once it's gone wrong.
- 7:45SPEAKER_00: And that's the visible version, the kind that makes headlines.
- 7:48SPEAKER_00: Most B2B brand damage doesn't.
- 7:51SPEAKER_00: A prospect or customer who's uneasy about a partner overstepping or a claim in
- 7:55SPEAKER_00: a co-branded campaign that felt off isn't going to call you and tell you that.
- 8:00SPEAKER_00: B2B buyers don't behave like consumers.
- 8:02SPEAKER_00: No public complaint.
- 8:04SPEAKER_00: No organized boycott.
- 8:05SPEAKER_00: No social media pile on.
- 8:08SPEAKER_00: What happens instead is quieter and harder to trace.
- 8:11SPEAKER_00: A deal that was moving stalls.
- 8:13SPEAKER_00: A shortlist imitation that used to come automatically does it.
- 8:17SPEAKER_00: Nobody names the reason because nobody has to.
- 8:20SPEAKER_00: And leadership reads it as a soft quarter instead of the actual cause.
- 8:24SPEAKER_00: That's what makes it hard to recover from then Calloway's version.
- 8:28SPEAKER_00: A public blow up at least tells you exactly what broke in front of everyone with
- 8:32SPEAKER_00: a clear moment to respond.
- 8:34SPEAKER_00: Quiet erosion of trust sends no signal at all.
- 8:37SPEAKER_00: You lose the account before you know you had a problem.
- 8:42SPEAKER_00: Where the checks and balances actually have to live.
- 8:44SPEAKER_00: Most companies don't need a new marketing process.
- 8:47SPEAKER_00: They need to know where in the existing one the veto actually sits
- 8:51SPEAKER_00: and what automatically escalates regardless of who produced the content.
- 8:55SPEAKER_00: A simple StageGate framework does that.
- 8:58SPEAKER_00: Concept and partner selection,
- 9:00SPEAKER_00: production, pre-publish, review, publish and distribute, monitor and escalate.
- 9:04SPEAKER_00: At each stage, name who holds the creative control and who owns the risk if it goes wrong.
- 9:10SPEAKER_00: Those two answers are almost never the same name in the gap.
- 9:13SPEAKER_00: That gap is exactly where governance has to live.
- 9:17SPEAKER_00: The review stage is where it actually gets decided and it only works if a fixed set
- 9:22SPEAKER_00: of triggers pulls content to a senior sign off automatically,
- 9:26SPEAKER_00: regardless of who made it or how well the relationship is performing.
- 9:30SPEAKER_00: Anything depicting physical harm,
- 9:32SPEAKER_00: anything touching discrimination or a protected class,
- 9:35SPEAKER_00: any competitive or financial claim that hasn't been verified,
- 9:38SPEAKER_00: any conflict with an exclusivity or IP commitment.
- 9:43SPEAKER_00: Take the judgment call out of the hands of whoever's most invested in not slowing
- 9:48SPEAKER_00: the partner down.
- 9:51SPEAKER_00: Callaway didn't lose control because nobody was watching.
- 9:54SPEAKER_00: It lost control because the person watching had every reason not to slow down
- 9:58SPEAKER_00: the fastest growing thing on the shelf.
- 10:00SPEAKER_00: That's not a golf problem.
- 10:02SPEAKER_00: It's the exact shape of every co-marketing deal on your calendar.
- 10:06SPEAKER_00: And the fix isn't slower marketing.
- 10:08SPEAKER_00: It's making sure the person holding the veto has both the authority and
- 10:12SPEAKER_00: the incentive to use it,
- 10:13SPEAKER_00: especially against the partner everyone's most excited about.
- 10:20SPEAKER_00: That's it for this episode.
- 10:21SPEAKER_00: If you found this useful, please do one thing.
- 10:24SPEAKER_00: Follow the Uphoff on Media podcast on Apple or Spotify and leave a rating.
- 10:28SPEAKER_00: It's the single best way to help another operator find this.
- 10:32SPEAKER_00: I'm Tony Uphoff, back at it next week.