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POWERSHIFT MARKETING THIS WEEK

October 31, 2019

THIS WEEK – Here are a few marketing tips and research thoughts. As always, contact me if you have any questions or topics you would like me to cover.

BIG SPLASH, LITTLE RIPPLES

As you heard, Twitter is banning political advertising, taking the opposite position of rival Facebook. The timing of Twitter’s announcement, minutes before Facebook posted its quarterly results, highlighted the two companies’ diverging positions. “Paying to increase the reach of political speech has significant ramifications that today’s democratic infrastructure may not be prepared to handle,” stated Twitter’s Mr. Dorsey.

Now, it’s kind of easy to make a “big announcement” when it really doesn’t impact your business. Political ads represents a small portion of Twitter’s overall $2.11 billion annual Ad revenue. Marketing lesson: You can grab headlines by making statements that really don’t impact your business. On the other hand, I do believe that online political ads will be a giant issue in 2020.

LOVE BEER AND WINE, SKIP THE SMOKES

Just finishing up our Destination Marketing Organization (DMO) Website Study #6. Since 2012 we have been working with various DMO’s to learn more about the people that go to travel websites. We added a question last year to find out how important Oregon’s wine, beer and cannabis industries are to visitors. Craft beer and wineries (in that order) are VERY IMPORTANT to visitors. Both are far more important than purchasing cannabis on vacation. The full study will be released in November. If you would like to participate in Study #7, contact me and I will share how you can be a part of this low-cost study. 

APPLE ENTERS THE BATTLE

Tomorrow (Nov 1st) Apple plans to launch the Apple TV+ video service, its contender in the battle for people’s streaming dollars. Apple TV+ is slated to start with nine programs. But that is just the beginning. With $100-billion cash hoard and fat profit margins Apple can afford the costs of developing and distributing new content. With 900 million iPhones and 500 million Apple gadgets in use, they have an enormous built-in base of potential TV+ customers. So, pop quiz, I am curious how many people are now paying for streaming and what service? Please leave me a comment.

LESS TARGETING COMING TO FACEBOOK

I used Facebook (sponsored posts) often for my clients because you can really target audiences by demographics and interests. But Facebook has now removed age, gender and ZIP code targeting for housing, employment and credit-related ads as part of a settlement with advocacy groups and other plaintiffs.

TOO MUCH OF A GOOD THING?

When something is working, most firms double down on it. That is not always a good idea. The auto industry is a good example of this. The Wall St. Journal reported that the number of crossover and sport-utility models has steadily climbed from 70 (2014), to 96 (2018) and is expected to rise to 149 models by 2023. “This is a very significant trouble spot for the industry,” said John Murphy, an auto analyst with Bank of America. “The pendulum is swinging too far in the other direction.” If trends continue, he estimates the profit premiums auto makers have long enjoyed on these models will fall, eventually matching the lower margins now earned on sedans. Marketing lesson: What worked in the past does not always work in the future. What changes in your product or marketing are you planning for 2020?

Until next time, thanks for reading. As always, contact me if you have any questions or topics you would like me to cover.

One comment

  1. Hi Mark: I use Amazon Prime and Netflix. My husband also subscribes to Hulu (I don’t like it because it still has commercials)



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