PANDORA BEATING AMAZON AT ITS OWN STREAMING GAME: As music consumption continues to grow on IoT connected devices such as voice activated home speakers, there’s more and more data come out on which streaming music services are being listened to. The early clear winner on this new frontier is Pandora. According to MusicWatch the streamer commands 43% of total listening time on Amazon Echo/Dot, with all other competitors sharing the other half of the listening. This stat was punctuated by Pandora’s Tim Westergren in a keynote address during a Music Label conference this week, as covered in the attached CNET link. Pandora’s lead on Amazon devices underscores the power of music portability, where listeners decide for themselves what to listen to on any particular device. Despite the fact that Amazon makes it very easy for listeners to use their music service on the Echo/Dot speakers, people are still choosing the Pandora workaround in overwhelming numbers. This will be a great segment to keep an eye on as listening via connected CE devices continues to surge.
MORE SIGNS OF MOBILE DOMINATION: PwC is out with its annual business forecast of the Entertainment and Media industries. This report it a technical monster, so I’ll give you some highlights around digital advertising. In 2016 there was $72B in digital media spending in the US, and that number is expected to surge to $116B over the next five years – that’s an impressive 10% CAGR (compounded annual growth rate) for an already-established industry. Mobile is the chief driver of this growth, accounting for just over 50% of the digital spending in 2016. By 2021 PwC estimates mobile ad spending will comprise a staggering 75% of digital spending. Put those two data points together and you have a forecast of $87B in US mobile ad spending by 2021. Based on those numbers I’d say the days of brands needing a “mobile marketing strategy” are over, because mobile will be the only viable marketing strategy in the very near future!
THE BREWING BROWSER BATTLE: There are some interesting developments occurring behind the scenes with Apple’s and Google’s browser platforms. This is complicated but important stuff, so stay with me. In coincidental moves both companies have announced new restrictions in the type of third party publisher ads they’ll run. In Apple’s case they’ll now block autoplay video ads and behavioral tracking on its Safari browser. Google is going one step further by self-policing and blocking what it determines are intrusive ads on its Chrome browser. By doing this both companies are setting up de facto ad blockers on their platforms. Why do this? The public fluff rationale is to improve their UXs with fewer intrusive ads which annoy users and slow page load times. But the more nuanced explanation is a combination of savvy business moves. Apple’s play is pretty straightforward – they want to control a limited set of ad formats on its platform and prevent third parties from scraping their users’ behavioral data. Google’s modus operandi goes one step further – they’re trying to incentivize publishers to use their ad tech specs by downgrading non-compliant ads they deem annoying, and simultaneously make a preemptive strike against third party ad blockers (because why would you need an ad blocker for Chrome if Google polices it for you, right?) I’ve dug up two articles which explain these moves. The attached Digiday link explains the basics on both situations, while attached Vox link goes way deep on Google’s plan. Welcome to the deep end of the digital pool!
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