Tuesday’s Topics . . .

2018 FORECAST . . . INSIDE THE NUMBERS:  You know it must be December when you start seeing a steady stream of media spending forecasts about the upcoming year.  Over the last 48 hours agency power players Group M and Zenith, along with the research firm Magna, have released their 2018 forecasts.  AdExchanger has a strong roundup of the three reports as summarized in the attached link.  The good news is that global media revenue is expected to rise 3-5% in 2018.  But that bad news (unless you’re a member of the duopoly), is that almost all of that growth will be harvested by Google and Facebook.  Amazon is starting to become more of a factor, but growth from their current revenue base in the $1-2B range won’t be enough to move the market in 2018.  Other trends being called out in the 2018 forecast include an increased push for cost efficiencies and attribution performance thanks to softness is major spending categories like CPG, Retail, Auto and Telco.  Programmatic will also continue to drive growth, but more money will be spent through publisher direct PMPs instead of open exchanges.  The article is a great look ahead as we race towards 2018, so spend some time with it.

CALLING DOCTOR CVS:  Late Sunday night CVS and Aetna mutually announced plans for CVS to buyout the insurer, as noted in the attached NYT article.  If this deal comes to fruition it could have massive ramifications on the entire US Healthcare industry.  At a very basic level the merger makes sense for the prescription drug side of the biz.  With 10,000+ pharmacy locations CVS can help Aetna (whose insurance subsidizes the cost of prescriptions), save money with distribution efficiencies.  But there’s also a far bigger potential play in the works here.  Think about the potential for CVS’s MinuteClinics to expand the scope of healthcare services it provides into full urgent care facilities.  And then envision patients covered by Aetna being offered a discount on premiums/deductibles for using a CVS instead of a hospital ER or standalone urgent care facility.  For certain ailments this model would provide significant savings – enough to reward CVS/Aetna and still incentivize the patient.  What will this mean for traditional doctors and hospitals?  And can we expect to see more pharmacy/healthcare insurer tie-ups over the next several months?  It seems like there’s an equal amount unknowns and opportunities here.

GET UP, KEEP RUNNING:  Finally today, I’d like to leave you with an amazingly inspirational video from the 2008 Big 10 Track & Field Championship.  The video you’re about to see is from the Women’s 600 meter race.  Watch carefully at the 1-minute, and then get ready to see what happens next.  Spoiler alert – the fallen runner, a women named Heather Dorniden, got back up and eventually won the race with an epic effort.  How did she do it?  The key moment was at the 61 second mark when she got back up and kept running like nothing had even happened.  How many of us would have laid on the ground in shocked disbelief?  How many of us would have limped along the track one last time to at least finish but with no chance of winning?  And how few of us would overcome diversity in real time and just keep going?  My guess is there are very few Heather Dorniden’s out there . . . but can you imagine what the world would be like if there were more?!?

Have a great Tuesday guys!

230 thoughts on “Tuesday’s Topics . . .

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