AMAZON BRINGS VIDEO ON-PLATFORM: In a smart flanking move Amazon is aiming to disrupt YouTube (Google) and Facebook’s booming video ad business by including video content within their platform. As described in the attached Bloomberg link, Amazon is launching a new program called Enhanced Brand Content. Within the platform brands will be able to upload sponsored :30 video content next to the usual product descriptions and static display images at a discounted rate. This has the potential to really work for brands, since they’ll be able to place their best content in front of purchase intenders just as they’re ready to hit the buy button. I’m guessing Amazon will see an immediate spike in OLV biz as this program roles out. Then it will be interesting to see if this comes directly out of Goo-FBoo’s video rev pocket.
TURNAROUND AT TWITTER?: During yesterday’s Q3 Earnings Call Twitter showed some signs that a turnaround may be on the horizon, as reported in the attached AdWeek link. MAUs were up a little at +4M vs Q2. And although revenue noticeably declined by 8% YoY, it still topped the Street’s expectations. The key stat in their recovery has been ad engagements, which soared 99% vs. 2016. This is due to a strategic pivot Twitter made from display to video. With video Twitter appears to have figured out how to natively integrate advertising into the user experience. Things look promising enough that Twitter raised its Q4 guidance to the point that they may actually be profitable in Q4. That would be quite at 180 turnaround from the position they were in just a few quarters ago.
AND THEN THERE’S IHEART: On the other side of the financial universe iHeart continues its struggle for survival against a $20B+ mountain of debt. As reported in the attached RadioInk link, iHeart and its creditors still haven’t reached a deal to keep the broadcaster afloat. Their senior debt holders want the company to organize its holdings for a “prepacked bankruptcy” (sounds scary), while iHeart is scrambling for alternatives. Time will ultimately be on the creditors’ side in this tug of war. While only $700M of iHeart’s debt comes due in 2018, a staggering $7B must be paid back in 2019. Obviously iHeart won’t be able to make that debt payment (most third world countries couldn’t make that payment), which means they’ll default and go into bankruptcy unless an alternative agreement can be reached before then. Sounds like a fun spot to be in, right?
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