Thursday’s Themes . . .

PARENTS GETTING THEIR DIGITAL ON:  There’s a well ingrained belief in marketing that the younger you are the more digital media (especially social), you’ll consume.  That’s one of the reasons so many target demos start and end with Millennials.  But not so fast my friend!  It turns out that us ripe old Gen Xers are leading the league with even more hours of overall media consumption and social usage than Millennials.  The following Bloomberg article has the details from a recently released Nielsen study.  The best theory as to why Gen Xers would spend 40 more minutes per week on Social than Millennials has to do with attention span.  Younger users may engage more often with digital platforms but they’re typically doing it in shorter bursts, compared to their parents’ longer session.  Regardless of the cause, it’s a surprising stat to be sure.  (link)

WALMART WANTS TO SELL YOU YOUR NEXT CAR:  So Walmart is getting into the auto sales business . . . sort of.  Yes, it’s true that about 25 Walmarts in select states will begin piloting a program to sell cars in-store, but it’s not the usual dealership experience you’d expect.  Instead customers will see an auto kiosk run by a 3rd party company called CarSaver.  These kiosks will be manned by sales and finance teams who can take consumers through the entire purchase journey, and then direct them to a nearby dealership to complete the sale and pick up their new car.  This setup requires a three-way relationship between Walmart, a dealership group (AutoNation in this case), and an online bank (Ally in this case).  For connecting all of these dots together CarSaver will earn a $350 “success fee” for every car sold.  So whose ready for a test drive in those treacherous Walmart parking lots? J (link)

RADIO REVENUE DECLINE:  As you may recall, the RAB (Radio’s trade association) made the decision in 2016 to stop reporting broadcast radio revenues.  This decision was made because radio’s rev continues to decline – and what trade group responsible for promoting their industry wants to highlight declining numbers?  So without the RAB we’re forced to look elsewhere for revenue stats.  And the first group to publish a full set of 2016 data is SMI, who derives their numbers by surveying 70% of the agencies in the US and then models out a total spend.  According to SMI, total revenue from radio broadcasters declined .5% in 2016.  For some context, Digital was on the high side with 13.3% YoY growth.  As you can see in the following Inside Radio link, broadcasters are already spinning this with a “we’re holding our own” narrative.  And the flat is ok argument might be reasonable except for one important point – 2016 was a political year.  Normally in Presidential election years radio sees a 2-3% kiss on their rev, and then falls back in the following year.  So if they were down .5% in 2016, the extra political money may actually be masking larger drop which will be exposed in 2017.  Not a pretty picture. (link)

Have a great Thursday guys!

313 thoughts on “Thursday’s Themes . . .

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