IS INSTAGRAM GETTING COOL AGAIN?: Over the last few years any conversation about cool social media platforms has started and ended with Snapchat. But guess what . . . there’s a 6 year old social senior citizen who’s starting to get trendy again. The platform I’m referring to, of course, is Instagram. In the past year Instagram has famously copied some of Snap’s most popular features such as Stories and Direct functionality. And now it looks like they may be stealing some of Snap’s user base too. Third party trackers are starting to see a massive deceleration in Snapchat’s user growth, and they’ll officially report usage metrics their first-ever earnings call next month. In the meantime Instagram’s user growth is accelerating again. Should be very interesting to watch this old vs. new social battle unfold.
DIGITAL CONTINUES TO SURGE ON THE STRENGTH OF MOBILE: Yesterday the IAB released its full year report on Digital Ad Revenue in the US. The stats are strong – digital is up 22% YoY to $72.5M on the strength of mobile ad growth which now stands at $36.6M. Think about those two numbers for a minute – mobile now accounts for over half of the digital ad revenue in the US! One of the more interesting stats within the IAB’s report is the concentration of revenue within the Top 10 digital publishers. As you can see in the graph below it now stands at 73%. So while digital is growing overall, the rich at the very top are the ones getting richer. Note that the IAB doesn’t name who’s in the Top 10, but it’s safe to assume the list includes Google, Facebook, Twitter, Pandora, Snapchat, Pinterest, Oath (the new Yahoo/AOL combo),and perhaps Amazon and Spotify. If you don’t have the time or energy to read the full report AdWeek does a nice job summarizing the highlights here.
NET NEUTRALITY OFFICIALLY ON THE CHOPPING BLOCK: Yesterday FCC Chairman Ajit Pai announced the widely anticipated plan to roll back Obama-era Net Neutrality regulations. If this passes ISPs will be able to regulate data delivery speeds for different content providers, and essentially set up pay-for-use high speed data lanes on the internet. This is a major win for the likes of Comcast, AT&T, Verizon, Cox, etc., as they’ll now have a new premium product to monetize. It will presumably hurt the smaller publishers who can’t pay to keep up with the big boys. When you combine the NN rollback with last month’s decision to legalize the ISPs use of browser data to retarget ads, you’ve got a huge momentum swing in favor of the big Telcos. Somebody must be on their lobbying game!
Have a great Thursday guys!
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