ATLAS SHRUGGED: First up today, news out of the Facebook camp that they’re discontinuing their Atlas ad server offering to third party publishers. Three years after the Atlas launch, this retreat is an admission that FB was unable to mount a serious threat to Google’s Doubleclick – which is pretty much the industry standard for ad serving. It’s also due to the reality that ad serving, as with many aspects of Ad Tech, has become highly commoditized in the last few years. So what used to be special and command a premium has devolved into a low margin utility. Don’t expect panic in the industry over this announcement. 😉 (link)
THE SKINNY ON TV: Throughout 2016 much has been made of the erosion of set top TV ratings as viewers migrate to OLV. Behind the scenes there’s an even more important battle being waged between traditional cable operators and new cordless digital content providers. Since the late 1970’s TV has come into American homes via the cable cord and packaged in a “bundle” – think of paying a flat monthly fee for hundreds of stations even if you only watch a few. This forced monopoly has been a cash cow for the entire TV industry since consumers had to buy the entire menu even if they just wanted a few items. But now internet TV providers are bypassing the traditional cable cord, and are beginning to offer “skinny bundles”, which are a smaller subset of stations at a fraction of the price. The prediction is that skinny bundling will hit critical mass within the next few years and effectively end the era of one size fits all cable force feeding. Should be fascinating to watch this evolution.
NEW TWIST ON A QSR CLASSIC?: And finally today, here’s a funny piece of news to “chew” on. McDs is changing their Big Mac after sticking with the original recipe for the past 49 years. Why are they doing this and what will a reformulated Big Mac accomplish? Maybe it’s just a marketing stunt akin to the Coke/New Coke move from the ‘80s. Or maybe they’re trying to modernize the look, size, taste, or whatever of this menu staple. Regardless of whether you end up in the New or Old Big Mac camp, consider this one stat that’s been circulating inside McDs HQ for the last few months. An internal market research study revealed that only 1 in 5 (just 20%!) of millennials have ever even tried a Big Mac. So regardless of how long it’s been on the menu or how well known the brand is, the taste buds of today’s core QSR consumer have passed the Big Mac by. So who’s ready to try a BM2.0?!? (link)
Have a great Monday guys!
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