Wildcard Wednesday . . .

GOOGLE PLAYS PEEK-A-BOO WITH AD FRAUD:  On Friday Google announced a new policy of offering refunds to brands for fraudulent ad delivery from network inventory purchased via AdX.  This sounds noble enough, but there are a few strings attached.  First, brands must only run impressions on networks who have agreed to refunding through DBM (Google’s DoubleClick Bid Manager).  And second, Google alone will determine if a delivered impression was fraudulent or not, thus triggering the refund.  So Google is controlling all ends of this process by gate keeping which networks make it into the “refundable” platform and then play judge and jury on what clears as a legitimate impression.  Does this sound fair and transparent to you?  And oh, there’s one other aspect to the timing of this announcement.  You may think I’m crazy to suggest this, but I believe Google buried this announcement on Friday because the real story is that there’s still a ton of fraudulent impressions running through AdX.  By just focusing on solving the problem Google is deftly avoiding having to directly address the real issue in the first place.  Pretty tricky, I’d say!

SOCIAL COMMERCE?  NOT SO MUCH:  There’s no denying the user scale and time spent on the major Social platforms.  Between Facebook, Twitter, Instagram and Snapchat Social has evolved into the new way to stay connected and share experiences.  But how is Social working as a platform to actually sell products the way other digital publishers do?  According to eMarketer the big Social publishers still haven’t cracked the code.  45% of Social users have never made a purchase on any one of the platforms, with Snapchat having the worst performing buy through rate at just 1%.  Keep in mind, that’s not just 1% of users making a purchase through a particular ad or of a given brand, that’s 1% who have ever purchased anything on Snap.  Or to put it another way, 99% of Snapchat’s users have never purchased anything through the site.  These stats reinforce the conventional wisdom that the Socials are good as branding vehicles but don’t drive actual sales uplift.

STREAMING CONTINUES TO SAVE THE DAY:  In the ultimate case of irony the Music industry, which was once being devoured by free distribution of content on the internet, is now being saved by that very same technology.  The latest evidence of this turnaround comes from a new Goldman Sachs forecast in the attached Music Business Worldwide link, which predicts streaming revenue for the Global Music Industry to soar to $28B by 2030, which represents +500% growth over the next 13 years.  By that time streaming will make up 80% of total Music revenues.  The primary benefactor of streaming’s revenue spike will be the music rights holders (aka the major Labels), who are estimated to be paid 55-60% of all the royalty revenue.  So does that leave 40-45% for the artists, songwriters, band managers, promoters, etc.?  Hmmm . . . at least someone is getting paid in this new music ecosystem.

Have a great Wednesday guys!

275 thoughts on “Wildcard Wednesday . . .

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