BANKRUPTCY OVERTIME FOR iHEART: Sorry, I know I’m beating the iHeart bankruptcy story to death, but every day there are more new twists and turns than a telenovela. Yesterday’s action was the disclosure of something called a Forbearance Agreement which iHeart and its lenders signed on Sunday night. According to the attached Inside Radio link, the forbearance agreement is basically a fancy legal mechanism to give all sides a little more time to work through the reorganization plan. This bought iHeart 72 hours – so they have until the stroke of midnight on Wednesday, March 7th to reach a deal. It’s worth noting that even Inside Radio (owned by iHeart) is now talking in terms of a post-bankruptcy solution, so bankruptcy still appears to be eminent. I just wish I could be a fly on the wall in Bob Pittman’s office this week watching him tap dance through this legal entanglement. Rest assured I’ll keep you posted as things unfold.
TAKING ATTRIBUTION TO THE EXTREME: These days attribution is more important than ever in Digital marketing. If brands can figure out which ad unit drove the purchase they can double down on that publisher while scaling back on less effective vendors. With that in mind there’s a fascinating experiment taking place in the UK right now involving Honda. According to the attached Digiday link during March Honda/UK will only transact on a CPV (cost per visit) to a physical dealership. They’re using a third party data company called Rippll that can track mobile devices (and their MAIDs) which come into dealerships, and then compare the mobile ads ran on those devices over a 14 day lookback window. Tracking like this already exists in the US, but you never see major brands switching from CPM or CPC billing models to all CPV. The outcome of the test will have ramifications. Obviously publishers with lower CPVs (so more store visits relative to ads run), will start to see more spending at the expense of higher CPV sites. But then I wonder how Honda will still keep a branding presence up across all sites (especially the mid to upper funnel ones), and how they’ll apply these metrics to non-trackable broadcast advertising. Should be interesting to watch.
MADISON AVENUE IS GOING COUNTRY: Ever wonder if certain music formats work better for brand activations than others? Would it surprise you to learn that Country music is becoming THE go-to genre for marketers trying to reach core consumer groups? According to the attached AdWeek link, marketers are choosing Country artists more than ever to represent their brands and engage with potential customers. There are a few reasons for this. For starters Country artists are generally considered more down to earth and in touch with typical consumers. Nothing wrong with Bruno Mars, but are you more likely to grab a beer with him or someone like Luke Bryan? Country authenticity creates brand legitimacy which marketers can harness. Then there’s the crossover factor. What started with Taylor Swift going pop and Blake Shelton going to The Voice has turned into a regular feeder system of Country stars like Maren Morris and Sam Hunt who make it big in Nashville and then crossover into mainstream celebrity. These factors create the perfect environment for marketers to enlist Country stars to drive success for their brands. And yes that Colonel Sanders picture is actually Country legend Reba McEntire, who was the first woman and first musician ever to play the QSR icon in a commercial.
Have a great Tuesday guys!
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