US AD SPENDING SURGES: Magna Global has released a revised US Ad Spending forecast for 2016 and beyond. Overall media spending looks strong, with +6.3% growth vs. 2015. Of course if you take Olympics and Political out the YoY growth drops way down to +1.6% – amazing to see the impact of those two occasions. The other story inside the numbers is Digital’s continued ascension in the media spend pecking order. For 2016 Digital is expected to finish just ahead of TV in overall revenue, but by 2020 its forecasted to be 40% higher. To really understand the impact of digital on each sector’s increases check out the graph below. It’s literally the only thing driving growth for Radio, Print, and Television, while the traditional players continue to erode. Expect this narrative to continue for years to come. http://www.insideradio.com/u-s-ad-sales-grow-at-strongest-rate-since/article_d472cdd0-9119-11e6-ba32-63d088ab342b.html
NEXT ON-DEMAND BATTER UP: I teased this out about a month ago, but now it’s official. Amazon is launching an updated on-demand streaming platform utilizing three tiers of service; 1) $3.99/mo for Amazon Echo owners – this level only provides music through the Echo/Dot speakers, 2) $7.99/mo for current Amazon Prime subscribers – their original music plan used to be free for Prime subs, and 3.) $10/mo for a full on-demand subscription – similar to current Spotify and Apple offerings. But there’s been very little information on the music-side of the product. In other words, what makes the music experience on Amazon better than the competition? So it feels more like an ecosystem sell – if you’re already on the Amazon platform just add some music, right? Other large tech companies have already tried the ecosystem strategy and have failed spectacularly . . . remember Samsung’s Milk Music or any of Apple’s previous iterations of their streaming service? Based on this recent history Amazon may need to do more than just “build it and they will come”. http://www.investors.com/news/technology/amazon-takes-on-apple-spotify-pandora-with-music-streaming-plan/?yptr=yahoo
NOT YOUR FATHER’S PANDORA: And finally today, AdAge does a really nice job of highlighting Pandora’s new logo and imaging as a part of a broader narrative around the company’s reinvention. From new imaging, to the upcoming external marketing campaign, to the launch of expanded service tiers like Pandora Plus and on-demand, there has literally never been a more exciting time for Pandora. Kudos to our PR team for helping spread the word and create buzz amongst the most influential trades in our industry! http://adage.com/article/digital/pandora-debuts-logo-digital-campaign-push/306241/
Have a great Thursday guys!