As I've been saying, the media budget pie hasn't gotten bigger, the slices are just more narrow. To wit, this week Q3 ad revenue numbers for national TV were released. Networks experienced double digit declines, with broadcast decreasing nearly 20%. "The negative ad growth will mark the biggest decline over the past six years," writes a senior research analyst at MoffettNathanson Research. Part of the challenge is a year over year ratings decline, in comparison to Olympics. But part of it is fragmentation. So much to watch. The result appears to be a bifurcation of live news and sports with on-demand entertainment content.
Lost Art of Negotiation
I've been thinking a lot lately about negotiation, which is the precursor to compromise. My thoughts primarily swirl around concern that it is a lost art. Thinking about negotiation from an ethnography perspective, I read a blog piece written by Nate Boyer, the former Green Beret soldier who met with pariah quarterback Colin Kaepernick to negotiate an appropriate national anthem response. They negotiated a compromise: Kaepernick would protest by not standing, but would kneel in a nod of respect to soldiers. From social media reaction, you would never know this act was a negotiated compromise. Boyer calls his position "the radical middle." On top of the social media phenomenon, empowering individuals, against a faceless mass, to dig in their heels on nearly any issue, there's a rapidly expanding technological threat. AI threatens to do away with any human need to negotiate in business. Take media buying, for example, AI buys media with an inhuman ability to leverage data. Why negotiate when you have predictive modeling? So it was with interest I read this article from Glass Door on how to negotiate like a boss. Feel free to share it with Millennials in your organization. Because, goodness knows, society doesn't need to lose any more skilled negotiators. Tip #5: Don't Get Personal.
Speaking of the lost art of negotiation, you will want to remember these two words: "block chain." The technology is being tested to solve everything from banking innovation to ad fraud. Block chain is a system to allow buyers and sellers to connect directly, eliminating intermediaries in exchanges. In digital advertising, the intermediary is where the fraud most often lies. As of now, what block chain provides in security, it lacks in speed. And speed is needed to handle micro targeting. When we're talking about CPMs in the $1-$3 range, a marketer would need a lot of scale to find ROI in the speed sacrifice. As this article from The Drum says, "Blockchain is the medicine, but not the cure." Read more here.
News for Financial Brands
Big news for financial brands this week. PayPal opened its Venmo platform to millions of US retailers. Venmo was initially conceived as a peer to peer payment service - I send my college son money via Venmo. He receives it via an app on his mobile device. Some things that make Venmo interesting: 1) It has a social feature to share latest purchases. Super cool when you buy that awesome skirt at Forever 21. 2) PayPal can now monetize Venmo, which it couldn't do as a stand-alone peer to peer service. I envision a model where consumers can get the peer to peer service for free, but only if they use Venmo for so many monthly purchases. 3) Only a matter of time before Venmo acts like China's WeChat, where consumers can shop for goods, order taxis, buy flights and book appointments, all through one app. That is, assuming Facebook hasn't gotten there first.
Friday Freebie. Register for this free webinar from Acxiom on international digital targeting. Axciom Corporation is a very, very powerful data company in Conway, Arkansas. What makes it so powerful is that it has mapped nearly every US consumer by every device. Its servers process more than 50 trillion data transactions a year. Its database contains information on 500 million active consumers, worldwide, with about 1,500 data points - per person. Marketers can upload a database of names and addresses and find that person online, mobile or desktop. It's called addressable advertising. But not all rules are the same in every country. Learn more here.
Marilois Snowman| Mediastruction | 508-540-3600 |marilois@mediastruction |