January 27, 2017 MediaStruction

Media Trends to Watch This Week – January 27, 2017

Here are the items from the perpetually evolving advertising world that caught our eye this week…
Lean The Other Way 

As we enter the next Technology Revolution, as life is increasingly automated, as brand loyalty declines in an era of increasing commoditization, why not lean in the other direction? If one of your brand’s pillars is all about customer experience,  here’s a nifty tool – automated hand-written thank you notes. Grandma wasn’t all wrong.

The Good Twitch
The largest media platform noone knows about with 100 million monthly viewers, and it’s called Twitch. What is Twitch doing right and how can brands get involved? Read more here. 

Our Video Meme of Week
Move over, mom with Chewbacca mask. We’re just loving this video meme of the week. For all those parents, who don’t get regular calls from their college-age kids, you are not alone.

Tech In A Tostitos Bag
File under “that’s so cool”: A Tostitos party bag that can detect when you’ve been drinking and hail an Uber. Can’t decide if it’s creepy or cool. And I do have one question: will cannabis marketers be far behind?

TV Updates

OK, we’ve got a few tidbits of TV News this week. First, if you know anyone who completed a Nielsen TV diary and still has a copy, hold onto it. It’s about to become a collector’s item. Nielsen will phase out paper diaries by the end of 2017. Other items being phased out? 3D TV sets. Sony and LG announced they will stop manufacturing 3D TVs, essentially securing the nail in the coffin. Also related to TV…we’ve been having a heck of a time with ratings erosion in the spot market. There are a whole host of reasons from ratings methodology to disintermediation from cross devices to competition for attention. Then there’s the Netflix factor. Netflix has something like 89 million subscribers worldwide, with gross revenue of just under $7 billion. They’re investing about $6 billion a year on content, like “House of Cards,” a $100 million show, or “The Crown,” worth $2.5 million per episode. The Netflix model is awesome for viewers because they get top-shelf content, with no commercial interruption. Academy award-winning film actors are willing to star in a TV series, flipping that paradigm. But how are those economics – the skinny margin between gross and net revenue – sustainable? Especially with a publicly traded company. And especially with competition from Amazon Prime and Hulu. CBS, by comparison has gross revenue of nearly $14 billion with cost of goods at $8 billion. My bet? Netflix will integrate limited ads, more like the satellite radio model. Subscriptions + ad revenue, as long as the viewing environment remains pleasing, will make stock holders happy.

Snap, This
And one last note while we’re discussing stock holders, The Wall Street Journal reported this week that  Snapchat is leaning on the large media holding companies for multi-year commitments, in order to boost value in advance of IPO. And Snapchat isn’t inexpensive. Daily ad buys can run $350,000 to $700,000. We’ll be following closely to see how the holding companies respond.

Leave a Reply

Your email address will not be published. Required fields are marked *