TOP DIGITAL STATS: It’s Monday, so it must be time for another round of AdWeek’s Top Digital Stats from the past week. While gamification doesn’t always come to mind when thinking about ad revenue, check out the combination of stats #2 and #3. Pokemon Go is successfully monetizing itself by charging retailers who are featured in the game 15-50 cents per customer visit. Considering PoGo still commands 20M daily users worldwide, there’s some decent scale to tap into for this rev play. Also check out Zenith’s stat in #4 about mobile media growth. The idea that mobile is estimated to make up 26% of all global media spending in 2019 (aka just two years from now), is a pretty startling idea for anyone in the biz. Good stuff to chomp on first thing this AM!
GOING TO SCHOOL ON AMAZON: Last week I featured a stat about Amazon’s budding media business, which now makes up 18% of their overall revenue. Since then I’ve received a few questions about how they’re accomplishing this. The attached Business Insider link does a solid job of explaining how Amazon sells ads, and then breaks down its competitive strengths along with some unique challenges. It’s strongest play by far is search (lookout Google), since it gets real time data from customers who are looking to make a purchase. Challenges include trying to overcome swimlaning, as most clients’ procurement teams (and not marketing teams) are in charge of the Amazon relationship, as well as fears about Amazon’s ability to create another walled garden of self-owned and managed data. Regardless of the challenges, I’d put my money on Jeff Bezos and team to maximize this new revenue play.
IN ORDER TO STAY RELEVANT YOU NEED TO APPEAR RELEVANT: This AdExchanger comic is pretty telling about the state of agency-driven programmatic. With enough effort and resources clients can set up their own programmatic direct operations complete with propriety DMPs. This is a threat to agencies – because why would you need a middle man if you can handle the transaction yourself? To counter this trend and stay relevant agencies have set up increasingly-advanced trading desks complete with data integration, measurement, audience verification, and attribution bells and whistles. The real play here is to create the impression that agencies have mastered a new programmatic wonderland and are living the dream within their next gen buying platform. This leaves clients with a jarring case of FOMO, and self-perpetuates clients’ dependencies on the agency community. Not saying some agencies don’t have a legit programmatic offering, because many do. Regardless, it’s a savvy way for agencies to stay relevant as the buy side of media becomes more automated.
BILLBOARD BONUS COVERAGE: Finally today, a little bonus coverage. Did you know the current #1 song on the Billboard Top 100 chart isn’t even in English? “Despacito” by Luis Fonsi/Daddy Yankee is a Spanish language song and it’s burning up the charts. I have to admit, when I first heard it on an general market station I did a double take to see what I was listening to. Just goes to show you the power of Hispanic acculturation across all music genres.
Have a great Monday guys!
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