Tuesday’s Topics

CROSS-PLATFORM RETARGETING:  So this is interesting.  On Friday Google announced a new wrinkle in its retargeting capabilities which allows advertisers to run YouTube video ads based on behavioral retargets from Google’s base Search product.  For an example, if you start searching for Jeep dealers near you on Google, using this data an auto manufacturer or dealer could retarget you the next time you’re on YouTube.  Up until now Google has been very strict about keeping its 1st party data within its own walled garden, so this is a departure.  Granted, since YouTube is one of Google’s top properties it’s not too much of a stretch to understand why they’d want to use data from one platform to help monetize another.  But it makes you wonder if the walls of the walled gardens are about to become a little easier to get over. (link)

SPRINT GETTING ITS TIDAL ON:  Apparently yesterday’s news that Tidal has been inflating its subscription numbers wasn’t enough to derail the announcement that Sprint has recently acquired a 33% ownership in the streamer.  The price tag for a third of Tidal is $200M – giving them a $600M valuation.  On paper this seems reasonable for Sprint.  It’s a low cost way to give them a foot in the digital music space, and they’ll be able to cross-market Tidal by preinstalling into all Sprint phones sold.  But as Samsung proved with the Milk Music fiasco, just because you build it doesn’t mean they’ll come.  Regardless of whether Sprint is involved or not, Tidal still needs to give listeners a compelling reason to buy a subscription vs. all the other digital music options available.  In the meantime, I’m looking forward to seeing Jay-Z in Sprint yellow, instead of his usual black.  (link)

CHANGE IS COMING:  Finally today, you can tell the radio broadcasters are really thinking about all the positive and negative things (from their viewpoint) which could come from the new Trump Administration and a Republican-controlled Congress.  With Trump’s position on so many issues being diametrically opposite of Obama’s the radio industry is grappling with these unknowns, as outlined in the attached Inside Radio link.  Undoubtedly the biggest concern is around the idea that Congress would consider performance royalties on terrestrial radio broadcasts.  This would be a game changer for the industry in a bad bad way, since right now radio is getting a free ride on content costs.  On the positive side, will the new FCC leadership relax cross-ownership rules which still only allow one company to own 8 combined TV and radio stations in a single market?  What about the tax deductibility of advertising as a business expense?  If Congress makes good on a promise to streamline the tax code could that incentive be eliminated?  And finally, is the net neutrality doctrine in jeopardy now that Tom Wheeler is no longer running the FCC?  His rumored replacement, Ajit Pai, is said to be against NN, which could usher in a pay-for-play era of data delivery across the internet.  Yikes, I’m tired just thinking about all of this stuff.  J  (link)

Have a great Tuesday guys!

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