Wildcard Wednesday . . .

ENGAGEMENT IS EVERYTHING:  As our time spent with media gets increasingly mobile and social a predictable thing is happening – we’re spending less and less time with individual publishers’ sites.  According to the Taboola research noted in the attached eMarketer link and graph below, our average session time spent with publishers is down to 1.9 minutes, compared to 2.1-2.2 minutes in the first half of 2017.  The underlying cause of this decrease is fragmentation.  With more sites offering more content we scroll, flip and swipe faster than ever.  And since time spent on a site is a good proxy for engagement, it’s easy to see how users are less engaged with publishers and their sponsoring brands.  That’s why it’s critical to find platforms where users come and stay.  Music streamers like Pandora, Spotify and SoundCloud are examples of this – each is in comScore’s Top 10 mobile time spent rankers every month.  According to Triton’s latest Webcast Metrics release, Pandora leads time spent with 34 minutes per session, which is 17x the engagement rate of the average publisher.  So could engagement-heavy publishers be the key to marketing success in this crazy digital world?  You know where my head is at.

PAGING DOCTORS BUFFETT, BEZOS AND DIMON:  A few years ago could you ever have imagined a plan, like the one announced yesterday, in which Berkshire Hathaway, Amazon and JP Morgan Chase join forces to create an alternative option healthcare system that isn’t designed to make money?  That’s exactly what occurred, as described in the attached CNBC link.  The embedded video is actually worth the watch as the anchors read the breaking news headline in real time and can’t quite get their minds around it.  Sure there are many more questions than answers at this point.  Will the new system be open to everyone or just employees of those companies?  How will they work with the HC providers and pharmas?  While all of this will take years to work out one thing is certain.  The Healthcare system, with its infinitesimal layers and overcharging bureaucracy, is ripe for disruption.  And now a cross-section of business titans have the industry in their sights.

WHAT McDs EARNINGS SAYS ABOUT OUR SOCIETY:  On yesterday’s earnings call McDonald’s reported same store foot traffic was up for the first time in five years.  Credit for this increase was given to a two part menu strategy.  The first move was McDs’ recommitment to value with its Q4 “McPick 2” and $1 soda LTOs.  That’s fairly standard for a QSR.  But what’s unusual is that McDs simultaneously released higher end menu offerings like Kale & Sriracha burgers and more premium coffee drinks.  This high-low strategy paid off for McDs at the cash register, and also illustrates something far more transformational about our society, as reported in the attached Business Insider link.  The middle is collapsing, as consumers gravitate into either the Value or Premium camps.  In McDs terms, there are simply fewer “quarter pounder combo meal” customers out there, because we either want five sandwiches for five bucks or burger-shaped kale patties.  And it doesn’t end with QSR.  You’re now more likely to shop at either Whole Foods or Aldi instead of Kroger.  We don’t own four-door sedans anymore, because we either drive murdered out trucks/SUVs or don’t own a car at all.  These aren’t random product choices we’re making, it’s just who we are.  A nation of two distinct camps with very different product preferences.  For brands which can figure out how to serve both sides at once, like McDs in this case, there’s money to be made in the bifurcation.

Have a great Wednesday guys!

201 thoughts on “Wildcard Wednesday . . .

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