THE “VOICE SHELF” COMES TO SEARCH: In tomorrow’s Voiced-based environment the entire Search industry will be transformed. Gone are the quaint days of being one of seven listings on the first page of a Google search. Instead marketers will rely on voice recognition AI to respond to verbal searches we’ll be making. In order to succeed in this new paradigm brands will need to solve for two things. The first is getting established as Voice Skill on platforms like Google, Amazon, etc.. Think of this as an embedded SDK which generates content called for by the search. It’s literally the martini recipe Alexa responds with when somebody says “Hey Alexa, how do I make a vodka martini?” The second must have is a high ranking on something called the Voice Shelf. This is the order in which a voice-enabled digital assistant pulls content. Staying with our vodka martini theme for a minute, if both Kettle One and Tito’s have a martini recipe Voice Skill, which one does Alexa respond with? Since there isn’t any sponsorable content on voice platforms (yet), it’s sort of a Wild West situation of brands testing ways to get their Voice Skills first in line on the Voice Shelf. Are you confused yet? To help sort this out take a look at the attached AdAge article. And is it still too early for a martini?!?
AMAZON PRIME IS A BRILLIANT LOSS LEADER: For consumers Amazon Prime seems like a pretty straightforward proposition. Pay $99/yr and get unlimited free shipping of Amazon purchases along with a host of other freebie benefits. But since most users blow past $99 in shipping costs annually, how does Amazon make this profitable? As it turns out they don’t have to. According to the attached BGR link, Prime members spend $1,300 in Amazon purchases, which is almost double the $700 non-Prime shoppers spend. In other words AP is a loss leader which doesn’t need to make money by itself. Its only purpose is to get users through the front door, because the profit made on $1,300 is the real game. Someone once told me half-jokingly that sushi was invented by the soy bean farmers as a delivery mechanism for soy sauce. Think about it – that could actually be true. Following that analogy, AP is the sushi to all of our soy sauce purchases.
RIDING THE DISCOVERY DINOSAUR: If I had a nickel for every time someone in Radio bragged that AM/FM is “still #1 in music discovery” I’d be writing this blog from my villa in Tuscany right now. It’s not really a sellable metric, but Radio keeps beating the discovery drum as anecdotal evidence that they’re still relevant. But times are changing. In a new study by the research firm Integr8, in the attached RAIN link and in the graphic below, you can see how broadcast radio’s monopoly on music discovery is slipping with the younger demos. In fact, Gen Z is just as likely to discover that next new song or artist on a Streamer or YouTube as they are on their local radio stations. Can you imagine what this stat will look like once today’s teens age up into the primary advertising demos? Again, this is really only a brag stat since I’ve never once sold the propensity to discover music in my 25 years of media sales. But once Radio loses the discovery crown we won’t have to hear about this stat every time Nielsen releases a pro-Radio propaganda piece. Tick, tick, tick …
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