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The ad that pays rent

This week's Salomon piece called the epicenter strategy a distribution play. A few days of living with it says I filed it under the wrong heading.

Dan Coe

Dan Coe

Jul 31

Every paid channel you buy is a rental. That's the deal digital made, and we all took it: attention by the second, priced at auction, and the auction only moves one way. Rates climb, the feed thickens, and a growing share of what your ad sits next to was never touched by a person. The rented room gets louder and more expensive at the same time.

This week I published Salomon's epicenter strategy as a distribution story — owned flagships, elevated wholesale, a throttled mass tier, every channel assigned a job. A few days of living with it and I think the sharper read is that it's a media story. Those four New York stores aren't a retail footprint the marketing supports. They are the media plan: SoHo, Williamsburg, and the Upper West Side each broadcasting a different register of the brand, Flatiron playing the full record. One number does the reframing: by the company's account, its US stores cover their own costs within a year of opening. Every other channel rents attention at rising prices. This one manufactures it at a profit. An ad that pays rent.

The re-read reshuffles Foot Locker too. In the distribution story, the wall at Foot Locker was the risky node — the brand handed to someone else's staff in someone else's room. In the media story it's simpler: it was never media. The flagships manufacture the desire; Foot Locker is where it gets collected. You stop judging the cash register for not telling the story.

And Salomon isn't alone in the instinct. Vuori's CEO says the point of his hundred-store push out loud — in a world of AI-saturated feeds, a physical experience is the thing that still differentiates. Even OpenAI, the company doing more than any other to flood the zone, joined the ranks of out-of-home's top advertisers last year. When the people who understand the feed best start buying walls and windows, believe them.

The full machine — the Prada-to-Nike lineage, the city-by-city architecture, and the question nobody at Salomon has answered on the record — is in this week's piece, below.

The exercise worth stealing: re-read your own channel plan as a media plan. Which lines manufacture desire, and which just collect it? And if your best ad had to pay rent — what would you build?

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One idea worth thinking about, every week.

Dan Coe’s weekly brief on the brand move that mattered — and what it means for the people building it.

Read by CMOs, founders and brand leaders.