Tuesday’s Topics . . .

A VERY PROGRAMMATIC HOLIDAYS: It’s no surprise that programmatic ad spending is surging this holiday season.  AdWeek has done a nice job with the attached infographic, showing some emerging trends inside the numbers.  The most pronounced stat is the increase in PMP-based programmatic buying vs. open exchanges.  You can tell this by the YoY doubling of higher priced bids (classified as $4+ CPMs), because open exchanges rarely see CPMs above $1-2.  It’s also worth noting the +85% increase in Header Bidding, as clients bypass DoubleClick-style bidding and go publisher-direct.  It would be interesting to compare stats like this over the next 4-5 holiday seasons to see the direction and velocity of programmatic growth in our industry.  (link)

FIGHT FOR $15 . . . THEN WHAT?: If you live in NY, CA or Chicago you know the issue of a $15/hour minimum wage is hot right now.  Especially so for service sector jobs like those found in the QSR industry, since many of those employees work at or near minimum wage.  That’s why you see many “Fight For $15” protests at McDonald’s and other larger national chains.  Without taking either side of this issue Forbes looks at the possible unintended consequences of what could happen to QSR jobs if $15/hour becomes the normal labor cost.  (Note: While the article is useful, the video does a better job of laying out the repercussions.)  As you’re viewing this keep in mind some of the macro trends facing the restaurant industry right now.  2016 will be the first year that US QSR annual sales have declined after 5 straight years of growth.  This is partly due to the increasing delta between the average cost of eating at home vs. eating out, which makes eating out of home relatively more expensive every year.  This creates a tough paradox . . . employees can’t really live on the current minimum wages paid by the QSRs (especially in major markets where the cost of living is highest), and the QSRs can’t pay more for labor and still be competitive against other meal options.  Suddenly I’m not very hungry . . . (link)

DIGITAL VIDEO TUG OF WAR: Finally today, I’ve spent a ton of time on this blog discussing the competing business models of free ad supported streaming vs. non-ad subscription streaming in the digital audio space.  It turns out the same conflict is happening on the digital video side, and eMarketer has done a nice job laying out the current landscape.  Right now viewer preferences towards digital video is pretty evenly split (53/47) between subscription services like Hulu and Vimeo and YouTube as the dominant ad supported platform.  It feels like these services are compelled to pick one lane or the other – Hulu had tried to do a “freemium” service for years with some elements of each, but recently abandon the ad supported route for a total subscription platform.  Not sure if this market will end up being a direct mirror of what’s happening in the audio space, but it’s good to be aware of our surroundings.  (link)

Have a great Tuesday guys!

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