FRAUD-A-PALOOZA: If AdAge is right, 2016 may very well go down as the Year of Ad Fraud. The root causes for this are so easy to see. More and more money is surging into digital, and much of this new money is being purchased programmatically, which is much harder to track than IO’d business. As a result fraudsters have seized on a golden opportunity to make money by using bots and unintentional human clicks to capture digital rev. It’s sort of like the old saying by Billy the Kid . . . “I rob banks because that’s where the money is.” Unfortunately for our industry the banks is this case are real clients with real marketing dollars which could have been used in a more productive way. Hopefully AdAge is right about the MRC catching up to these challenges by implementing more stringent ad standards to start reducing this fraud. (link)
IHEART’s DEBT SHELL GAME: You know that I love a good iHeart debt fiasco story as much as the next guy. So yesterday’s disclosure that they decided not to repay $57M in maturing debt to its parent company, Clear Channel Holdings, caught my attention. Granted this is the business equivalent of not paying your parents back after they lent you money – so doesn’t really change iHeart’s balance sheet. But the fact that they’re not making this scheduled payment on Thursday tells you something about their cash situation. My guess is that iHeart will use more and more of these band-aid moves until they run out of gimmicks and eventually declare bankruptcy. Radio Ink is covering this from two perspectives. The first link is the story itself, and then a second link includes details on how Bob Pittman positioned this with his employees. Looks like somebody has their tap dancing shoes on! J (link1) (link2)
MEGAREGIONS 101: Finally today, I’d like to share a concept and image which isn’t directly related to the media industry, but is important to understand if you work in any consumer facing industry in the US. It’s around the concept of “megaregions”, which are geographically connected concentrations of population and economic activity. In the early 1900s, when the theory first came about, there were five larger megaregions – think of the Eastern seaboard from Boston to DC as one of these. As the population has grown they’ve been subdivided over and over, to the point that we now have 50ish primary and dozens of secondary MRs. These generally fall along the lines of commute patterns created by the Eisenhower-era Interstate System and geographic features like Colorado’s front range going north-south and the mid-Atlantic’s Potomac estuary horseshoe. An astounding 70% of the US population resides in a megaregion, and it’s the silent hand which has determined the selection of just about all brick and mortar locations for every industry since WWII. Megaregions are one of the silent forces of nature which guide are industry. So the just understanding them makes you a more well-rounded marketer. (link)
Have a great Wednesday guys!
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