PROGRAMMATIC AUDIO ARRIVES: Early yesterday morning Pandora announced the formation of a new private marketplace for programmatic audio, which sent the trades into a frenzy. While prog audio has been around for a few years nobody has been able to scale it and bring as much data to the game as Pandora will. The attached RAIN link summed it up nicely by saying, “One of Pandora’s key selling points is the epochal mountain of first-party data it can use to get the ads into receptive ears.” Right now The Trade Desk is the only active DSP, but others like AdsWhiz, MediaMath, etc. will be certified in the coming weeks. When you think about how many clients those DSPs represent and how many audio impressions that can be matched to 75M+ monthly users listening for 20+ hours per month, you really get a sense of how quickly this can scale. For years Pandora has stayed on mission by saying they would do audio programmatic when they could do it right. Apparently the “right” day was yesterday!
ALEXA, SHIP MY PURCHASE: Last week rumors started to circulate about Amazon’s plan to create a self-owned shipping system similar to UPS and Fedex. This could easily disrupt the entire US shipping industry given the volume Amazon currently delivers. To give you an idea of the capacity we’re talking, in 2017 Amazon accounted 10% of UPS’s entire shipping total. According to the attached USA Today link, over the next few months Amazon will begin truck shipping individual orders from their existing distribution centers in higher volume markets like LA. Assuming that goes well expect them to spider-web shipping capabilities out across the country. If Amazon gets this right they could achieve the ultimate example of Industry Verticalization by self-owning other links in their own supply chain. If you’ve seen Fedex/UPS’s financials lately you’ll understand how lucrative this business can be. And it feels like Mr. Bezos and team are looking to take a bite out of this low hanging fruit.
CHALLENGE EVERYTHING . . . LITERALLY: Have you ever been ready to give up on something because you thought you’ve tried everything possible but still can’t achieve what you set out to do? Instead of giving up what if you stayed at the problem no matter what and kept on challenging? To give you an example of what I’m talking about let me take you back ten years ago to the infamous Blocked Free Throw Attempt executed by Kentucky during an SEC tournament basketball game. Kentucky was down by one with 1.2 seconds on the clock, and Georgia was at the line to shoot a final free throw. If Georgia makes the shot they’re up by two. Even if Georgia misses by clanking the ball off the rim UK will run out of time before they can collect the ball and heave a full court shot. So the game is effectively over and just about everyone has already given up. Everyone, that is, except for an eccentric Kentucky coach named Billie Gillespie, who told his center to block the second free throw. This resulted in a technical foul against UK which gave Georgia one more point (so they’re up by two now), and two more uncontested free throws. Coach Gillespie was counting on Georgia missing both technical foul shots, which they did. This gave Kentucky the ball out of bounds with the same 1.2 seconds left. That was enough time to get the ball inbounded and launch a hail Mary shot. Spoiler alert – Kentucky missed the shot and still lost the game. But that’s not what makes this story important. Regardless of the game’s outcome this is an example pushing harder to keep challenging when others would have surrendered. Here’s to hoping we all have a little Coach Gillespie in us! (If you’re interested here’s the video link of the blocked foul shot. I just love the “You want me to do what?” look on the center’s face after the block.)
Have a great Wednesday guys!
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