TOP DIGITAL STATS AND THE LAW OF GRAVITY: AdWeek was a little late on the past week’s Top Digital Stats, so it missed yesterday’s DG print deadline. But under the category of better late than never, it’s worth sharing today. While most of the news, like FB’s and Google’s earnings, have already been combed through, it’s worth noting the first point about P&G. The headline that P&G reduced digital ad spending in Q2 by over $100M makes good on CMO Marc Pritchard’s challenge for digital publishers to either clean up their acts or get cut from the buy. So no big shock there. But there was an interesting footnote making the rounds yesterday about P&G’s sales being flat, despite the 9-figure drop in digital ad spending. The assertion is that P&G was able to improve its bottom line by cutting digital marketing while still maintaining existing sales levels. But this stat is a mistake to believe in. Unless you’re doing eCommerce most digital advertising is upper to mid-funnel, since consumers view the ad and then make a purchase in-store days later. So by reducing its Share of Voice, P&G’s brands will eventually suffer market share erosion. This cause and effect may not occur immediately, which is why Q2 held up for P&G. But brand-building advertising is like the law of gravity – if it goes down you’ll eventually go down too.
RADIO CAT FIGHT: You may remember the Op-Ed article I posted a few weeks ago from RadioInk’s Publisher Eric Rhodes about the demise of the Radio industry. It was a sobering yet honest assessment about what’s happening to a once great legacy media. Well now there’s a rebuttal piece (also published in RadioInk) from Thom Callahan, the Chairman of the Southern Cal Broadcasters Association. While I can’t blame Mr. Callahan for doing his duty to stick up for his industry, the stats sited about Radio’s purported health don’t tell the full story. To selectively pull out YoY growth stats for a single market, off of some horrible comp years, is the statistical equivalent to polishing a turd. To get to the bottom of this disagreement on the health of Radio compared to Digital, the DG research team has team dug up the eMarketer chart below. From 2013 to 2017 Radio’s share of US Ad Revenue dropped -19% from 9.3% to 7.5%. During that same period Digital revenue grew by 58%, and Mobile grew by 769%. So to me it’s pretty clear that Mr. Rhodes is correct with his assertion that Radio is on a sad steady decline, and Mr. Callahan is swimming in a fishbowl that’s glass is so thick he can’t see outside of it. (Quick note on the date of the eMarketer chart below – it’s from 2014. Since the Radio industry stopped reporting annual revenue in 2015 there are no actuals, so eMarketer’s estimates are the best we can do.)
WORKING YOUR PASSION = BEING PASSIONATE ABOUT YOUR WORK: To end the day I’d like to give a fun little shout out. Every good salesperson knows it’s helpful to be passionate about what they’re selling. Pandora’s Taylor Harris takes this theory to the extreme by not only selling ads on the music streamer, but also by creating music herself. You see, Taylor’s day job is that of a mild mannered digital sales rep. But at night her alter ego comes out as the Lady in the alternative group Lady Lark. Taylor and her band mates have committed to 100% original music live shows – so no filler covers here. It’s pretty easy to see the passion Taylor/Ms. Lark brings to her music, which also carries over to her day job. So here’s the chicken-and-egg question – did working at Pandora unlock the inner singer in Taylor, or did she gravitate to Pandora because of an existing passion for music? Either way, it’s a hell of a synergy between profession and passion!
Have a great Tuesday guys!
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