THE PROBLEM WITH CHASING SHINY METAL OBJECTS: First up today is a dose of reality for digital darling of the moment Snapchat. Yes user growth is strong, and yes many marketers are lining up to cut deals with them. But as we know just running ads isn’t enough – the impressions actually need to be seen by the right audience and acted upon. Based on this criteria Snapchat is struggling. According to a Fluent study 69% of SC users “Always or Often” skip ads, and that number jumps to 80% in their prime 18-24 yo demo. The reason for this is SC users come for social content and try to navigate around ads in order to get what they came for. This doesn’t help advertisers looking for that all-important ROAS. The other problem is data. SC doesn’t own its data which gives them very limited targeting options, and even less of an ability to show attribution. They’re starting to address this shortcoming with new third party data partnerships like the one with Oracle, but they have miles to go to meet industry norms. So the next time you see a client getting tangled up in the Christmas lights of a flashy new SC sponsored lens pitch, maybe remind them about the importance of digital marketing fundamentals like audience segmentation, viewed ads, and proven attribution. (link)
FBTV IS COMING SOONER THAN YOU THINK: It’s official – Facebook is moving into TV land. We’ve seen hints of this over the past few weeks, with moves like being added to Nielsen’s Digital Video Measurement platform and yesterday’s disclosure that they’re speaking with the labels about music video licensing deals. All of this is laying the foundation for a standalone FB app for Video content. This was originally reported by the WSJ, but since their content is behind a paywall I’ve included a Business Insider link with all the details. (Special thanks to DG Investigative Reporter Hunter Bradford for tracking this down!) Needless to say, if I were a traditional broadcast or cable TV network I’d be very nervous about FB getting into my kitchen as a video content hub. (link)
APPLE ON APPLE MUSIC: And finally today, more public commentary from Apple SVP Eddie Cue on the state of Apple Music and their continued use of “Exclusives” as a promotional strategy. This is basically a restatement of comments during last week’s Q4 Earnings call, but if you want to hear it straight from the horse’s mouth go to minute 20 of the embedded video. (link)
Have a great Wednesday guys!
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