IS LESS BETTER THAN MORE?: The proliferation of networks placing display ads across thousands of publishers has created digital demons like ad fraud, viewability and objectionable content placement. Brands are grappling with these problems by focusing on where they shouldn’t advertise, and spend much less time/energy figuring out where they should. One client who’s thinking about this dilemma the right way is Chase. In the attached New York Times article Chase’s CMO explains that they’ve started to test an approach of dramatically restricting the sites they want their ads to appear on – from 400,000 websites (woah!) down to just 5,000. In their initial 30 day test Chase found no degradation of performance metrics after the reduction (not surprising), and they’ve also seen no increase in cost (which is unexpected). Logic would dictate the more selective you get about the sites you run on the more you’ll need to pay, since the premium sites cost more. Granted even a list of 5,000 sites is really long – can you even name 500 websites? I wonder what would happen to Chase’s eCPM if they culled the list down even further to say 100-200 of the cleanest sites. It’s a fascinating concept to think about. (Special thanks to Pandora’s Sari Zager for finding this one – worthwhile read!)
ALL STREAMING MEASUREMENT COMPANIES ARE NOT CREATED EQUAL: As streaming audio heats up every data company and their brother is try to nose in on the measurement game. The latest contender is a company called Verto, which tries to measure uniques, consumption, and “stickiness” of the various streaming apps. The basis for Verto’s data requires listeners to download their app in order to track streaming on that specific mobile device. Then Verto models out listening behavior from this user panel against the entire population. The results are laughable at best. According to their inaugural study Apple Music leads the field with 41M monthly uniques, even though Apple recently announced that they only have 20M worldwide listeners. On the other side of the spectrum Verto pegs Pandora at 33M uniques, which is more than 50M off comScore’s 86M figure. Yikes! I’m thinking Verto might need to go back to the drawing board on its methodology.
COULD ROYALTIES FINALLY BE COMING TO TERRESTRIAL RADIO?: Broadcast Radio has enjoyed an almost century-old exemption from paying content royalties to artists, songwriters, and labels because of their claimed “indispensable role of breaking new artists and selling records”. Obviously this loophole has gnawed at the recording industry for years – why should radio get a free ride on music royalties when everyone else has to pay?!? Because this every so many years you’ll see the RIAA attempt to go through Congress to get the exemption over turned. Those efforts have always been stone-walled because the broadcasters have been able to paint the royalties as a new tax, and members of Congress rarely want to be on record as voting for a new tax But it feels like the winds are shifting on this issue per the attached Inside Radio article. Broadcasters seem willing, for the first time ever, to engage in negotiations over music royalties. Maybe they sense that the “specialness of radio” argument is eroding beneath their feet. Maybe they see paying royalties on music played terrestrially is a way to negotiate down the royalties they already pay on streaming music. Regardless of the reasoning this has the potential to fundamentally change the relationship between the radio industry and the music creators.
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