OOH Insider

What did TikTok and Amazon reveal at Cannes? And a Tale of Two Headlines...

June 21, 2022 Season 1
OOH Insider
What did TikTok and Amazon reveal at Cannes? And a Tale of Two Headlines...
Show Notes Transcript
[tim_rowe]:

garden walls get higher as tiktok and amazon poise to pounce on a dollar allocation wall uncertainty looms and update on the fast changing advertising economy and some tactical tips to keep you and the drivers he threw it all of this on today's terror sheet for june twenty first two thousand and twenty two on monday this week tik tok hoasted its first ever company the twenty twenty two can lions international international festival of creativity at the event held annually on the resort town in the french riviera and considered one of the premier award shows for the advertising industry executives from tik tok discussed several topics including adding shopping functionality safety challenges the impact of io fourteen privacy settings and the creator economy blake chaney tik tok present global operation solutions revealed the platform currently has hundreds of thousands of advertisers but is ing for millions it plans to achieve this by adding new tools to the platform and implementing a program developed in house that will report on the quality of adds the platform is also taking steps to address ality controls and brand safety issues which caused some advertisers to be wary of tik tok in the past francis stone's tik tok head of european brand safety said the platforms review process now includes more than just images it also checks sounds text and emojies to insure brands aren't inadvertently associated with something problematic tik tok is currently in the process of globally expanding it live shopping functionality according to sophia hernandez global head of business marketing tik tok believes that these changes should open new opportunities for digital marketers by allowing them to target it's more accurately as brands and content creators will be able to enhance their exposure with reduced concern about negative associations while meanwhile amazon launches their thirty billion dollars piece of the ad pipe in a far from subtle way so while companies like meta spotify and dents who have set up their stalls beach side at cans amazon has chosen a port for its debut at the festival seriously a port like for ships ocean liners and the entire port the amazon port is twenty seven thousand square feet of space that includes multiple indoor and outdoor stages they have several sessions concerts being held at the port during the festival week amazon adds brought in thirty one point two billion dollars in revenue for the retail and web services giant in twenty twenty one and shows no signs of slow down in the fight for its share of the ad wallet and while these two platforms rake in droves of new money and continue to expand their reach into the marketing mix uncertainty continues to build within the consumer markets so well platforms like facebook and instagram start to fade as market or fan favorites how will out of home effectively capture its fair share well that's to be determined these mega add platforms are unified around a core company vision it becomes really apparent that the lack of unification for our industry could be very prohibitive in the interim and very long term future suppose only time will tell if an industry trade body or a tech platform will be able to bridge the gap in the meantime my pro tip is to look for collaboration might seem native to fight other media companies within our space for their advertisers in a perpetual race to the bottom hopefully you're seeing that the opportunity fight for digital dollars is way more interesting i mean for amazon a platform is more than thirty billion dollars a year already and they've been around for less than a decade outdoor in america started in eighteen fifty in boston by john d and sons we've been around for a hundred and seventy two years and we have yet to crack ten million so there's some food for thought if you're going to pick a fight pick a fight worth winning as for me the one with more zeros commas is the fight that i'll be fighting modern retailer dot com is reporting that the home goods boom has started to slow big box stores like target and specialty furniture retailers say they're already experiencing sales check she is the economy shift significantly compared to just a year ago in response some retailers are shifting their focus from work from home stables like desks and chairs toward functional goods like linens and accessories others are offering lucrative sales and bundles for price conscious consumers sundays and online furniture retailer that launched a few months before the pandemic lock down started initially saw strong sales with multi functional p he's like consoles beds dining room tables and desks but recently the company has seen more demand to deck out spaces where people can gather said no more sunday's co founder and director of product development that means items like madula sectional sofas while home renovation help bolster furniture sales during the pandemic sub data points indicate that home improvement projects seem to be winning a popularity place q part of the data intelligence firm precisely used anonomized mobile data and credit card purchases to examine where consumers were spending money in april compared to a year prior data showed that visits to provement stores dropped by twelve percent compared to the same month at twenty twenty one and spend was down twenty five percent for furniture and to core retailers visits down two percent with spend down twenty seven percent now on the exact opposite side of the coin are catedegories that are surging but for equally concerning reasons false poste that's contributing to very mixed signals that are being put into the market that is how supply change shortages and even just rumors of shortages are driving increased demand for essentials that folks are concerned may become scarce in supply major conglomerates that hold the majority of the feminine care market facing supply chain issues however the reasoning behind the lack of product on retail shelves has been vague it's unclear what the exact causes and not all conglomerates are experiencing a shortage however rising call of raw materials like cotton and rayon overwhelmed manufactures and logistics delays could all be a corporate because of all that some direct consumer brands are profiting it's difficult to when manufacturing a fulfillment bottle next will clear up for c p g giants like proctor and gamble but a number of d d c brands told modern retail they've had week over week sales spikes in the past couple of months go in siding with headlines of tamon and feminine pad shortages so while these sharps are benefiting in the short term for customers seeking out alternatives they aren't completely immune to the supply chain shortages low the c m o has stated that they are seeing a material up take in demand after the time article was published and unleashed the new cycle about the shortage particularly in our direct consumer business on my lola dot com and on amazon both continue to hit record high days of revenue and increased three to five x week over week further more than come these marketing strategy shifted overnight to ensure that our customers know that they can rely on lola to have the period products a few examples included a home page banner reading tamon shortage not for lola subscribers along with an instagram story promoting in stock inventory on the brands website so what does it all mean it means that up is down left is right and that most of what business school taught you is out the window right now so how do you capitalize and how should you be advising brands messaging matt maybe in times like now more than ever you cannot afford to be toned off people are concerned people are worried be the anchor be the stability being able to pivot your message to that of availability to reassure your customers their needs will be met or being able to quatify the value provide in terms of money or time saved can be very tangible messages that answer the questions asking right now what am i supposed to do and bringing it on home this one has been driving me absolutely nuts i'm going to read two different headlines about the same report that i'm going to tell you what they're actually both saying ready for this first the headline i see everyone sharing everywhere from forbes despite economic head winds agencies forecast a strong ad market for the second half in the year in the piece forbes reference is the group report from zenith magna and group m this was their mid year up date and there are a ton of numbers in it but what i want to draw your attention to is this part and what we reference this and in a daily show i think last week from forbes in group ms up dated forecast the agency expects add revenue in the u s to increase year over year by nine point three percent this is a slight decline from december's forecast of ninth eight percent including political dollars which projected to be three hundred forty three billion growth year over year of twelve point eight per cent the us representing thirty nine percent the global adspent okay few important take ways to call out right away they revise their guidance from growth of nine point eight to nine point three per cent while on the surface that sounds insignificant only fifty basis points on a relative basis that's a five percent reduction overall that's like saying i'm going to give you a hundred dollars but then coming back and saying i'm only going to give you ninety five dollars it is absolutely less money and the one hundred dollars i initially promised you and the question you should be asking is why baked into that is another misleading figure and that's the bit about political advertising political aspen up during a mid term election year shouldn't actually surprise anyone when there are major elections there is major political ad spend when there aren't major elections there isn't major political ad spend it's actually almost laughable that things like this can just get published without even being challenged yes political aspen is up this year it's mid term election it still does mean it's all sunshine and butterflies and this is headline number two whereas i prefer reality hollywood exacts brace for advertising storm clouds ahead cos c f s and add sales executives and insist that they aren't feeling any pain yet though is one top executive tells the hollywood reporter you can't ignore the macro economic environment and while executives insist that their twenty twenty two twenty twenty three up front negotiations are looking good with high single digit increases year over a credit size conference this week at attic the swedes conference m b s universal co jeff shell was throwed with the results of fox so said that they achieved what they set out to achieve while paramount so bob back ish was very pleased with how it went we're not really seeing signs of it in our business yet but in the scar in the scatter market we were starting to see some weakness shell said last year was hugely on fire in the ad market so it's still pretty strong but do ally weaker than last month advertising does have exposure for sure to the economy to inflation and it's a little choppy at the moment back ish said the same day quick question here and my friend linwidbibbons reach t v has been saying this for years since i met him when are we going to start having up fronts for out of home back issues right advertising does have exposure to the economy in the up front form for trading inventor and securing what you want is a great way to hedge against that bank of america analyst jessica rife alric wrote in a blunt research note june sixteenth the recent macro volatility is starting to have an impact on the advertising market while companies that spend into a recession often emerge stronger the market is tepid due to advertiser concerns over labor shortages inflation and supply chain s already stories are beginning to trickle out of media tech companies slowing down their hiring or planning cuts or by outs from net flix and vice to warner brothers discovery and spotify warner brothers to covers us ad sales chief john stenloff put the ultimate question mark on the piece what is the consumer going to look like on april first of two thousand twenty three it's anybody's guest eternity from now and that's to two headlines i share that anecdote to emphasize the importance of reading between the lines and challenging the narrative especially if that means challenging something you get from the hair sheet today tomorrow or any other day for that matter and hey did you know that today june twenty first is national arizona day visits to the grand canon state are hot hot hot visitation to the arizona museum of natural history are up seventy four percent compared to precovid levels there's an idea for you summer break visited museum and that was your motion works marketing minute of the day make sure to subscribe wherever you're listening and tune in tomorrow for more from the front lines