Friday Funday . . .

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THE DUOPOLOY’S Q2 EARNINGS:  Over the past few days both Google and Facebook have reported Q2 earnings.  Both saw astounding revenue growth (again), but there are some important differences emerging between each companies’ financial performances.  Let’s start with Google’s earnings results.  On the surface top line revenue looked strong at +21% YoY growth, with $26B earned in just one quarter (let that sink in for a minute).  But there’s also trouble brewing for Google, which Wall Street pounced on.  Besides the small matter of a $2.74B antitrust fine from the EU, which Google paid in Q2, their biggest problem was a -23% drop in the average cost per click Google charges.  As the ROAS value of a click goes down businesses are bidding less for them.  Right now the CPC decrease is being offset by more total searches, but you have to wonder if Google’s Search cash cow can keep being milked.  On the other hand check out Facebook’s Q2 earnings.  While FB’s top line rev is a distant second at $9B in Q2, the gap between the two companies is shrinking.  Beyond just growing rev +43% YoY, FB’s other metrics look healthy.  Mobile now comprises 87% of FB’s total ad rev, and monthly active uniques grew by +17% to 1.32B users – that’s about a quarter of the world’s population!  In all fairness, Google’s bad day would be a dream for any other company, but you have to wonder if the playing field between these two giants is starting to level.

IF OLV HAS A SICKNESS, THEN VE IS THE CURE:  Yesterday I featured an article about the OLV environment getting murkier as more brands blindly throw money into the network side of the sector.  As a contrast check out was is working for digital video in the following eMarketer article and graph below.  Value Exchange-based video is white hot right now, with 90%+ completion rates for :15s and :30s.  The reason completion rates are so high is obvious – reward listeners with content they want and they’ll be willing to watch and even engage with a video.  One of the leading examples of this is Pandora’s Sponsored Listening product.  For listeners the bargain of watching a full video from a sponsoring brand in order to unlock an hour of commercial free listening is a no-brainer.  It’s just one more piece of evidence that proves the adage that what’s good for the consumer is good for the brand. eMarketer Article

SIRIUS ON PANDORA:  Finally today, over the past month there’s been much speculation about SiriusXM’s motives around the minority ownership stake it purchased in Pandora.  During yesterday’s Q2 earnings call SiriusXM CEO Jim Meyer gave some very honest responses to those questions.  InsideRadio (who you know I “love”) actually gave a fair summary of Mr. Meyer’s comments in the attached link.  It feels like SiriusXM views the Pandora relationship as a true partnership with several opportunity paths to go down.  It also seems like there are many TBDs as the two dance partners get to know one other.  Only time will tell where this thing goes.  In the meantime, the article provides a fascinating look into the mind of SiriusXM.

Have a great Friday (and weekend) guys!

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