ECOMMERCE BONANZA: So did you buy anything online during the Cyber Monday shopping spree? If you did it turns out you’re not alone. While industry tallies won’t be out for a few days, there are already some impressive online stats from the Black Friday/Small Business Saturday/Cyber Monday window, as noted in the attached AdWeek link. Based on mid-day pacing Cyber Monday sales are expected to grow by 15-20% over 2016’s total. Mobile is driving online purchases with an astounding 54% of transactions coming from a mobile device, compared to 40% last year. Even Small Businesses (defined as having $10M or less in annual sales) have nailed mobile, by logging 56% of their Small Business Saturday online sales from a mobile device. Part of the shift to mobile could be thanks to the deluge of online marketing. During the four-day span retailers sent over 3B emails and 82M SMS push notifications to their customer bases, which equals about 10 ads for every man, woman, and child in the country. Obviously those marketing attempts are working, so expect more of the same throughout the rest of the holiday season.
YOUTUBE CONTENT CONTROVERSY 2.0: You’ll remember last spring’s controversy when images of graphic violence and even terrorist content where discovered alongside paid ads on social sites like YouTube and Facebook. For obvious reasons brands pulled their campaigns from these publishers until content filter safeguards could be put in place. Over the ensuing months brands gradually returned to the sites once they felt safe to go back in the water. Well now the controversial content nightmare in coming back to life. According to the attached Reuters report, sexually suggestive images of children are being found on YouTube alongside paid ads. This is as bad, if not worse, than violence-themed ads, so brands are starting to pull off the platform again. As of yesterday 250 brands have scaled back or altogether cancelled their YouTube campaigns. I would expect more to flee the sight until Google (YouTube’s parent co) can figure out how to effectively filter all forms from controversial content from its platform.
WHAT’S NOT BEING SAID ABOUT MEREDITH’S AQUISITION OF TIME: Late Sunday night news broke that Meredith Corp was acquiring Time, Inc. for $2.8B, as reported in the attached LA Times link. On paper this seems like a pretty big bite for Meredith – since both companies are about the same size Meredith is taking on almost $2B in debt to make the deal happen. On the surface the PR talking points are what you’d expect. Both companies are talking about synergies of housing many iconic publishing brands under one roof. But there’s also an interesting political twist to the purchase. In order to get the deal over the finish line Meredith secured $650M in funding from Koch Equities, which is the investment arm of the Republican mega-donor Koch Brothers. Based on the Kochs’ involvement there’s speculation that they could use financial influence to control the editorial content of the Time Magazine brand. Meredith is denying this intention (of course), but you have to consider the potential for influence. Interesting stuff, to be sure.
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