The Billion-Dollar Forecast: CMO Randi Stipes on How The Weather Company Shapes Business Decisions

[00:00:01] We know that weather impacts consumer behavior. We can extract insights that we then help brands recognize and activate on. To thrive in a rapidly evolving landscape, brands must move at an ever increasing pace. I'm Matt Britton, founder and CEO of Suzy. Join me and key industry leaders as we dive deep into the shifting consumer trends within their industry, why it matters now, and how you can keep up. Welcome to The Speed of Culture.

[00:00:34] We're here live in CES in Las Vegas, and we're thrilled to welcome today, Randi Stipes, the Chief Marketing Officer of The Weather Company, a trailblazer in harvesting data, AI and creativity to drive innovation, societal impact. Randi, it's so great to see you. Randi Stipes Thanks so much for having me. I'm happy to be here. Randi Stipes You know, it's not lost on me that you work with The Weather Company and we're here amidst the tragic wildfires that are ravaging Southern California. The Weather Company obviously is a tool that consumers really rely on,

[00:01:03] especially in times like this. What do you think the role is of the brand to help shepherd consumers through tragedies like this that are recently happening, unfortunately? Randi Stipes They are, and we'd be remiss not to talk about it. I'm actually born and raised in Southern California. My family, fortunately, is safe. Randi Stipes Good. Randi Stipes But it's absolutely tragic to witness this. And you're right, it's becoming far more common. Randi Stipes I like to say, and we like to say, weather's predictable. Randi Stipes Yeah.

[00:01:30] Randi Stipes But it is getting more volatile. It's getting more erratic. And so we are fiercely committed at The Weather Company to giving people the facts to help them make more informed decisions. And that can go from kind of the basic everyday what to wear to certainly the more extreme events like we're seeing unfold now in terms of keeping people safe.

[00:01:54] Randi Stipes But I think it goes beyond that. It's also when we get into the, we don't only have a consumer portion of our business, it's also from an enterprise standpoint, how can we actually arm marketers, brands, and other functions within organizations with weather intelligence so that they can make smarter decisions? Randi Stipes It impacts demand. If there's a snowstorm, people can't go to Walmart, they can't buy as much, it impacts inventory, all sorts of things. Randi Stipes And so we can all kind of fall victim to Mother Nature. Randi Stipes Yeah.

[00:02:23] Randi Stipes Or we can try to harness her power and get smarter based on the data that we have so that we can not only be prepared and be safe, but hopefully drive business growth. Randi Stipes Yeah. I mean, as I was preparing for this interview today, it just dawned on me how many different ways the weather impacts us. Randi Stipes Yes. Randi Stipes It impacts our mood, impacts our health, stuff like allergies, obviously impacts our safety in times like this. Randi Stipes And it's such a daily ritual, there's really nothing else like it, if you think about it.

[00:02:50] Randi Stipes I mean, I guess the closest thing would be like the stock market, because that's an external factor that impacts your wallet. Randi Stipes And this is kind of like the manifestation of this in the physical realm. Randi Stipes It's so true. We are a daily habit. We're a utility. Randi Stipes But it's always with consciously or subconsciously to drive that decision. Randi Stipes And so you mentioned health. Randi Stipes One interesting stat is that 76% of the people who use the Weather Channel app are coming there to mitigate a health challenge or a health.

[00:03:19] Randi Stipes Wow, that high? Randi Stipes It gets even higher when you think about mental health. Randi Stipes 81% say that weather impacts their mental health. Randi Stipes Of course. Randi Stipes I mean, right now, kind of going back to what's happening in Southern California, think about the angst that that creates for people. Randi Stipes And it will for weeks and months and years. Randi Stipes Of course. Randi Stipes Yeah. Randi Stipes And the most immediate safety concerns. Randi Stipes But then when we talk about air quality and the aftermath.

[00:03:44] Randi Stipes And so consciously or subconsciously, the weather really is impacting so many of our decisions. Randi Stipes I think physically, emotionally, mentally that we're making. Randi Stipes Yeah. Randi Stipes So for those who don't know, tell me about the weather company's business, its business model and different lines of business you operate in. Randi Stipes Sure. Randi Stipes I'm happy to. Randi Stipes So I think most people are probably familiar with our consumer business. Randi Stipes I'll start there. Randi Stipes The weather channel being our flagship app.

[00:04:12] Randi Stipes So it's really a kind of great power and great responsibility that comes with it with more than 316 million people who are- Randi Stipes Yeah. Randi Stipes Yeah. Randi Stipes It's a lot. Randi Stipes Yeah. Randi Stipes We're visiting our digital properties every month. Randi Stipes So we have a thriving consumer business. Randi Stipes It's available. Randi Stipes It's ad supported, but we also have a- Randi Stipes A-subscription. Randi Stipes I'm a paid version. Randi Stipes Thank you. Randi Stipes So there is diversified revenue streams that come in there from an advertising standpoint.

[00:04:40] Randi Stipes We love partnering with brands so that they can run within a trusted environment, be part of that daily habit and daily ritual. Randi Stipes But it really goes beyond that. We were talking about the weather intelligence and the insights. Randi Stipes It's also giving brands that intelligence so that they can leverage it across their advertising campaigns. Randi Stipes So how do we plug that intelligence into DXV? Randi Stipes Intelligence meaning where people are?

[00:05:03] Randi Stipes Beyond that. So intelligence meaning, I'm glad I talk about it like it's second nature, but let me unpack that for a minute and then I'll kind of come back to the rest of the business. Randi Stipes So when I say weather intelligence, what I mean is that we know that weather impacts consumer people. Randi Stipes So we can extract insights that we then help brands recognize and activate on. Randi Stipes So we'll do an example. Randi Stipes Okay, great. Randi Stipes Because I think that helps personalize different people. Randi Stipes So what do you think are the weather conditions that drive ice cream sales?

[00:05:32] Like what kind of weather would motivate you to- Randi Stipes Well, most people would think if it's hot out, you want to buy ice cream. Randi Stipes Logical. And that's true. However, we know weather's relative. Like what might be considered a warm temperature to you versus me. Randi Stipes It's like there's people in Florida that complain when it's 60 degrees. Randi Stipes That's me. Randi Stipes Right. Randi Stipes Yeah, I live in Florida. Randi Stipes There you go. Randi Stipes In Vegas right now, it's 60 degrees and I'm legitimately cold. Randi Stipes Right. I think it's amazing. Randi Stipes Right.

[00:05:55] Randi Stipes So it's relative. Back to the ice cream example, what we found is that in the Ohio Valley, which right now is getting pummeled with snow, but in the Ohio Valley, when it drops to 57 degrees, people that starts to feel a little bit cold, people go inside, they consume ice cream because it's a comfort food. Randi Stipes Wow.

[00:06:14] Randi Stipes And so that's just one example. We have 40 years of historical data that we can go ahead, we can correlate it with first-party data, with third-party data to give brands these insights, and then they can activate them anywhere. Randi Stipes Right. Randi Stipes We don't believe in wild gardens. They can certainly run with us across our ONO, but they can run anywhere. The same type of weather intelligence, how it can be leveraged though, in a lot of different places beyond marketing. So how can that be used in supply chain and pricing? Randi Stipes We were talking about earlier, right?

[00:06:43] Randi Stipes Exactly. We also have a thriving aviation part of our business. So working with global airlines, 25,000 flights a day rely on us and our products and our services, our meteorological expertise to take off and land safely. Randi Stipes I would imagine with the growth of sports gambling in the U.S. and the impact of weather on professional football games, that probably has an application in your business too.

[00:07:07] Randi Stipes I mean, given the impact and really the influence on every industry, we like to say like everyone needs a weather strategy, but we have some more specialized products and solutions, if you will, for a given industry. Randi Stipes I've always been surprised, like you want to go on a vacation, maybe you live in the Northeast, it's freezing, and you want to go somewhere where it's not raining, where it's sunny out. And if you go on a travel site, you can't really do that. You can't search by what the weather is that weekend. Randi Stipes Yes.

[00:07:34] Randi Stipes And I would think that's such like a, we talk about AI, we'll get into that in a second. Randi Stipes Sure. Randi Stipes Basically synthesizing that data into searches and other non-endemic things to help paint a picture. Randi Stipes Well, you're exactly right. I mean, you can get a forecast a million different places. You can't necessarily get the most accurate forecast, but you can get a forecast from, there's over 10,000 weather apps out there. Randi Stipes Yeah, that many, wow. Randi Stipes Stipes Stipes Stipes Stipes Stipes Stipes Stipes Stipes Right. A lot of them, by the way, I know, are nefarious in terms of how they take your data, how they use it, etc.

[00:08:03] Randi Stipes Exactly. Glad that you said that versus me saying it. However, I think where the value comes in and what we're really focused on is how do you translate that forecast so that we go beyond data and we're actually giving people the actionable information? So when's the best time that you would want to travel to Vail to go skiing? When's the best time you might want to travel to the Virgin Islands to ensure that you're getting the maximum days of sun? How do we kind of remove that cognitive load for people and take the guesswork out of it? Randi Stipes Yeah. That's the key.

[00:08:31] Randi Stipes When you say it is predictable, is the technology such where you can predict further out now? Like say someone's getting married a month from now and they want to know, is it more reliable now than it was, say, a decade ago to understand the weather? Randi Stipes It is. I mean, certainly it's still the case where the closer that you get to a given day or an event, then the more accurate you're going to be. Randi Stipes Yeah.

[00:08:52] Randi Stipes However, where the technology has really improved is the granularity. And so right now we are working, I believe, like in solving kind of these big global challenges. We certainly have a lot of expertise, but you need strong partners also that you bring to the table. So one example of that is we're working with NVIDIA. And together we are focused on how can we use AI to best leverage that in our forecasting, but also create better visualization capabilities. And so... Randi Stipes Yeah.

[00:09:22] Randi Stipes Like a lot of people don't know how to read the radars. Randi Stipes Yes. Randi Stipes I know how to read the radars and everyone's like, I don't know how to look at that. Like I don't look at the forecast, I look at the radar. Randi Stipes Or at four, and a lot of people do that. I mean, everyone consumes information differently. Randi Stipes Yeah, sure. Randi Stipes But right now, knowing that we can get down to the zip code level, that's great. Randi Stipes Yeah. Randi Stipes However, there can be a ton of variants in a given zip code. So our goal with NVIDIA is it's doable, is how we get down to really about one kilometer radius to get that precise, to get that granular.

[00:09:52] Randi Stipes Yeah. Randi Stipes And think about the applications that has for marketers to be able, like, if we can get the forecast down to that level, continue with our industry leading accuracy, I think that's what becomes really valuable for marketers.

[00:10:06] Randi Stipes Yeah, I think ultimate AI, you talk about the companion and the ultimate sidekick to your life. And this plays such a perfect role. And in the world of AI and AI driven products, having this data point to where you are, what the weather is, now all of a sudden, it impacts the clothes you're wearing, you might want to buy or the activities that you plan, the places you travel, what you eat and all these different things.

[00:10:30] Randi Stipes And you could see very quickly how it unlocks it to be a layer in your decision making framework in a way where before it's kind of compartmentalized. You went and checked the weather, then you did all these other things. Randi Stipes That's right. Randi Stipes Right. Randi Stipes Yeah. And I mean, listen, everyone, of course, is talking about AI. I mean, someone should have started a drinking game here. Randi Stipes Right. Randi Stipes Right.

[00:10:48] Randi Stipes We all be on the floor. But it's not New West in our business. We've been using machine learning in our forecasting for decades. Like our meteorologists look at over 100 different models when they're generating the forecast. There's no way that they could do that without the help of technology or specifically machine learning.

[00:11:08] Randi Stipes Where we've expanded it is in analyzing that forecast, like we were talking about extracting the insights around the consumer behavior. Like the AI is what unlocks that richer understanding and more dimensions beyond, oh, it's raining. You need to go get an umbrella. You don't need AI for that. Randi Stipes Right. So let's talk about the business model of the weather company. I believe you're part of IBM, correct? Randi Stipes So we were part of IBM. Randi Stipes You were, okay. Randi Stipes We were part of IBM for about seven years. Randi Stipes Okay.

[00:11:35] Randi Stipes And our time with IBM was great. IBM was good to us on a lot of levels. Kind of going back to AI, where AI is the new kid on the block for so many companies. AI really became part of our DNA when we were there and a lot of great hygiene. I think that our time at IBM transformed us from a media company into a data and technology company. Randi Stipes For sure. Randi Stipes But about a year ago, we separated, I like to say consciously uncoupling, if you will, right?

[00:12:01] Randi Stipes As IBM began to focus their portfolio. Randi Stipes Spun out as its own business. Randi Stipes Spun out. So I like to say we're in our weather 3.0 era right now. Randi Stipes How does that change things for the business? Randi Stipes It's unleashed us. Randi Stipes Really? Randi Stipes It's unleashed us. Randi Stipes Smaller, more nimble. Randi Stipes Exactly. I mean, again, great, great upbringing through IBM. We were a standalone business prior though. And so I feel like now we're a rocket ship. Like we needed to be unleashed so that we could run faster.

[00:12:31] Randi Stipes So the trajectory is strong. Randi Stipes We'll be right back with the speed of culture after a few words from our sponsors. Egal, ob Sie gerade erst beginnen oder Ihr Sicherheitsprogramm erweitern, herausragende Sicherheitspraktiken zu demonstrieren und Vertrauen aufzubauen ist wichtiger denn je. Vanta automatisiert die Einhaltung von ISO 27001, SOC 2 und mehr, spart Ihnen Zeit und Geld und hilft Ihnen, das Vertrauen Ihrer Kunden zu stärken.

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[00:13:31] So, what are the core business models of the company? We spoke about the app and the ad supported and paid version. And I'm more curious to hear about the enterprise and how you're monetizing this incredible platform with the enterprise and where you're focused on here in 2025. Yeah. So, we, again, thriving consumer business, but from an enterprise standpoint, it's all about the data and the insights. So, how we are using that, we talked a little bit about aviation. So, we have very strong foothold in the aviation business.

[00:14:00] Ooh, like an API. You have an API that tap into the data? Beyond even APIs, we have products and services. I'll give you one example, something called Pilot Brief that pilots use in the cockpit to, that helps inform them about turbulence and other weather parameters that impact our safety as passengers. I happen to know who all of our airline partners are, so I make sure that I fly on those airlines. In all seriousness, we do have a strong relationship with most global airlines.

[00:14:28] We also have long been in the media business. And so, we work with local broadcast affiliates across the country to supply them with a lot of the graphics packages and other data and services. So, for people that haven't cut the cord, if they're watching their local news affiliate, chances are we're working behind the scenes with them. Interesting. And then, really, the emerging part of our business, though, is our intelligence platform. It's something that we call Weather Engine.

[00:14:58] That is the vehicle that allows us to analyze all of the data. Yes, you can go ahead and you can access it through an API. For marketers, we make that available via targeting. That's really where we're focused. It continues to be how we unlock the intelligence behind the forecast. Fantastic. And it's a really fascinating business model because a lot of people just think about the weather on its surface and it's so much more than is it rainy or not. I'll give you one more quick example that's an emerging part of our business that we don't talk a lot about just because it's early phase.

[00:15:27] But I personally find it fascinating is we're starting to talk with the defense industry as well. When we think about the importance and the power of weather for our soldiers. Yeah. Working with corporations and governments to give them real-time weather to use in training simulations.

[00:15:47] So kind of training simulations, going back to the visualization capabilities, not only for consumers to look at a radar map, but how are we arming defense companies and governments with real-time weather to better prepare people for when they're in the field. To date, all of those simulation exercises, they use synthetic weather. They don't use real weather. And again, our weather is crazy right now.

[00:16:10] We need to be able to provide kind of those real-time conductors to better prime people for being in combat. For sure. So shifting gears, we wrap up here. Yeah. CES is always exciting because beginning of the year, new possibilities, new budgets, new everything. Where are you focused and how do you spend your time? Because we just went through so many different business models, consumer, enterprise, all these different applications. Where are you focused in driving the business forward, especially given this new autonomy that you have as a business?

[00:16:38] So with the technology that we have available, I feel like sky's the limit. Yeah. I think actually that it's a blessing and a curse because there's so many areas of possibility and potential growth. Really where our focus is, I'm going to sound like a broken record, but it's on the insights. Yeah. First, how are we bringing those insights to bear for consumers? So how are we making the app more personal to people? How are we making it more intuitive? How are we making it stickier?

[00:17:07] How are we also ensuring that we're not only providing the weather to people who are on our properties, but how are we partnering with companies like TikTok? Where we just launched a partnership where it's in a beta right now, but in New Zealand and Australia and Canada, where knowing that so many people now are using social is basically their search engine. So if someone goes in and they type Auckland weather when they're in TikTok, we're providing that weather.

[00:17:36] So we're focused on also ensuring that we're providing weather to people where they are. Yeah. Meet them where they are. Sure. Exactly. So what are those distribution partners? We're also a big area that I'm focused on and my team's focused on is how do we future proof our brand?

[00:18:19] Yeah. So how do we future proof our brand? We're also working with creators so that it's not just coming from our voice. Yeah. How are we working with creators and organically telling that story? Yeah. Yeah. Having them tell our story for us. So the business seems like it's very entrepreneurial and fast moving. Yeah.

[00:18:46] I can tell that you have a passion and excitement for what you do, which is probably one of the reasons why you're so successful there. Well, I have a good team. I'm sure you do. What are some of the areas that you and your team are trying to hone your skills on and refine and optimize for in 2025, given the new world that we're continually living in every day? Oh, my gosh. How much time do we have?

[00:19:09] So I think, first of all, it's honing our skills, certainly to drive the business, but also I'm committed to I want to just help cultivate the best talent possible. Yeah. Give them the opportunities. What does that look like? So it looks like a few things. First of all, I think starting with AI, a big thing that we're focused on is how are we using AI to not only drive efficiency in our work and drive productivity. I think it starts there and that's probably where most of us are playing right now.

[00:19:35] But it's also experimenting with how can we use it to inspire creative. Still a big stickler, and I think I will always remain a stickler, that with the human brilliance that has to come in over the top. But we've created a sandbox environment, not unique to marketing, but across the company that all functions can kind of experiment with, bringing in external AI, our own AI tools. So I would say is that AI experimentation is the first thing that we're doing to upskill talent.

[00:20:02] Another thing that I think we're seeing is we talk about our premium version of our app, our subscription business. Big thing that we're focused on is not only we know how to get people into our funnel or have gotten really good at acquisition, but it's the engagement and the retention and the upsell that I think is a different skill set. And we have that freemium model of bringing people in.

[00:20:27] And then another thing that we're really focused on beyond those kind of traditional marketing tactics is I firmly believe that our marketers have to be embedded with our product teams. Not only from an audience standpoint, again, and getting them into the funnel, but we should be working hand in hand to understand how they're engaging. Yeah. And so it's not like new business opportunities.

[00:20:52] I was thinking as you were talking, and you guys probably are in this business, but people who have big backyards or sensors now, and those sensors can detect rain. If it's raining, you don't need to use a sprinkler, and then you're not using as much water. There's just so many different applications to help save you money and drive more efficient decision making, which probably all unlocks new business opportunities. Exactly. Yeah. And I'm probably a bit biased. I started in product when I first started two decades ago at the company. Wow. I think that's one of the reasons I've stayed.

[00:21:19] I bet you never thought it would be doing all the things it is right now. No. It's a different business, and that's been part of the joy is having a seat at the table to help drive that transformation. And so I'm a big proponent of working cross-functionally so that hopefully we're not only providing value, but vice versa. And last thing I would say to kind of round out the skills is that data, data, data.

[00:21:44] And certainly when I'm looking for new talent on the team, it doesn't necessarily have to be someone from a traditional marketing background. I want the data analysts on my team the same way that I want a great storyteller or creative. So we, as you probably know, round out our podcast by asking our guests if there's a saying or mantra that comes to mind that guides their professional journey. So what comes to mind for you? Yeah. And no weather analogies because that's tippy too easy. Oh, no. I won't get that. That's not how you roll. I won't get that cheesy on you.

[00:22:13] The thing that immediately comes to mind, and I don't even know where the original quote comes from. I think it's been attributed to several people, is that if you don't stand for something, you will fall for anything. And while I think that we have to always have a growth mindset, I firmly believe like you've got to stick to your core values and your ideals and your beliefs and kind of never lose sight of what motivates you and of your value. Yeah. That's served me well. Yeah. I mean, there's another saying like be yourself, everyone else is taken.

[00:22:43] And so many times, especially younger people, it's easy for them to just try to compromise and try to fit in in a certain way. And then over time, you become part of the machine and you lose who you are and what makes you special and unique. And then you find yourself 10 years later, like, what am I doing here? I'm not happy. How did I end up here? Have that conviction. This was going to give you confidence. Absolutely. And of course, to have conviction, you need to have passion. You need to love what you do. I think it's so important. Yes. Yeah. Couldn't agree more. It's clear you do. So thank you so much for taking time out of your busy schedule here at CES. Yeah, it's been a blast.

[00:23:13] Fascinating business. And obviously, you've been very successful there and can't wait to see where you're going to take things next. Thanks for being a weather fan. You got it. On behalf of Susie and Adweek team, thanks again to the great Randy Stipe, CMO of The Weather Company, for joining us today. Be sure to subscribe, rate, and review the Speed of Culture podcast on your favorite podcast platform. So next time, see you soon. Take care. The Speed of Culture is brought to you by Susie. That's part of the Adweek Podcast Network and Agas Creator Network.

[00:23:40] You can listen and subscribe to all Adweek's podcasts by visiting adweek.com slash podcasts. To find out more about Susie, head to susie.com. And make sure to search for the Speed of Culture in Apple Podcasts, Spotify, or anywhere else Podcasts are found. Click follow, so you don't miss out on any future episodes. On behalf of the team here at Susie, thanks for listening.

[00:24:18] Egal, ob Sie gerade erst beginnen oder Ihr Sicherheitsprogramm erweitern, herausragende Sicherheitspraktiken zu demonstrieren und Vertrauen aufzubauen, ist wichtiger denn je. Vanta automatisiert die Einhaltung von ISO 27001, SOC 2 und mehr, spart Ihnen Zeit und Geld und hilft Ihnen, das Vertrauen Ihrer Kunden zu stärken.

[00:24:38] Darüber hinaus können Sie Sicherheitsüberprüfungen vereinfachen, indem Sie Fragebögen automatisieren und die Sicherheit Ihrer IT-Infrastruktur mit einem kundenorientierten Trust Center demonstrieren. Über 9000 globale Unternehmen wie Atlassian, Flow Health und Quora nutzen Vanta bereits, um Risiken zu managen und Sicherheit in Echtzeit nachzuweisen. Erhalten Sie ein spezielles Angebot von 1000 Dollar Rabatt unter venta.com slash hoeren.