COULD SPOTIFY HAVE AN AMAZON PROBLEM?: When we think about the Streaming landscape the conversation usually starts with the big two – Pandora and Spotify. But these companies run very different businesses. Pandora is the only streamer who’s primarily focused on free ad-supported listening, while Spotify plays in a much more crowded subscription sandbox. And as it turns out, there’s a new kid on the subscription side who’s starting to throw some sand at Spotify. That streamer, of course, is Amazon. As highlighted in the attached Midia Research link and in the graphic below, Amazon has steadily been gaining subscribers – up to 16M worldwide compared to Spotify’s 58M and Apple’s 28M. The key growth drivers for Amazon subs are their Amazon Prime subscriptions which includes Amazon Music in the bundle, and their Echo platform which features Amazon Music as the default music service. Given Amazon’s momentum you have to wonder if Spotify’s subscription-centric strategy is making them vulnerable to a much bigger company who’s doing pretty much the same thing, but with a home court advantage within its own ecosystem. Keep an eye on this one.
THE CURIOUS IMBALANCE BETWEEN SPORTS AND MUSIC MARKETING: There’s no doubt that Sports and Music are two of the biggest passion points in our society. We spend so much time and energy on these two pastimes that they’re the ideal place for brands to market themselves. But would it surprise you to learn that marketers spend 10x on Sports sponsorships as they do on Music initiatives? According to the attached Marketing Dive link brands spend over $16B annually to sponsor teams, leagues and players, but only $1.5B on artists and concerts/festivals. So why the imbalance? The main reason is that Sports are centralized. Meaning there are very distinct leagues, conferences, teams and big moment events (think Olympics, Word Cup, Super Bowl, etc.), which are easy for brands to plan for and buy in to. By contrast, Music is more decentralized with randomly timed album releases, concerts, etc., which are harder to make into tent poles of a marketing plan. Granted there are annual festivals like Lollapalooza and Coachella, and award shows like the Grammy’s and CMAs. But these are a drop in the bucket compared to daily onslaught of sporting events. This disparity could represent a true gap opportunity for brands who can zig into Music related sponsorships while the rest of their competitors are still zagging with Sports.
HAVING FUN WITH GDPR: Finally today, you know I love a good Programmatic cartoon as much as anyone (weird, I know), so this one from AdExchanger caught my eye. It speaks to the new GDPR regulations which are about to be implemented in the European Union, and the problems this will create for marketers, publishers, networks, and AdTechers. (If you’re asking “WTF is GDPR and could it happen here?” right now, check out my DG blog post from a few weeks ago for an explanation.) My only question on this issue . . . wasn’t all this technology supposed to make it easier to do our jobs?!?
Have a great Tuesday guys!
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