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InterMedia Insights 5.16.2016

Hot Media Trends for May 16, 2016

  • Google has announced an update to its AdWords terms and conditions that will ban advertising for some lending products on Google. The update will go into effect on July 13, at which point the Internet giant will ban payday loans and other predatory financial “services” from its online channels. These include loans with repayment dates that fall within 60 days of being issued. Loans with an annual percentage rate (APR) of 36% or more will also be phased out. “When reviewing our policies, research has shown that these loans can result in unaffordable payment and high default rates for users so we will be updating our policies globally to reflect that,” said David Graff, director of global product policy at Google, in a blog post. This won’t affect countless other loans that are advertised through Google, including mortgages, student loans, car loans, and credit cards. Google previously revealed that it had blocked 780 million ads in 2105. (Read More on VentureBeat)

  • National TV National TV advertising grew 4% in the first quarter — with broadcast networks outperforming cable networks — there is concern about the second half of 2016. Writes media analyst Michael Nathanson: “We are more cautious on the back half of the year with the Olympics, the political debates and the coming of last year’s daily fantasy sports ad infusion in the marketplace.” In the first quarter, broadcast networks were up 7.7% in national ad revenue, according to MoffettNathanson Research to $4.5 billion. Cable networks grew 1.4% to $5.4 billion. Overall, MoffettNathanson says there was a core cable national TV advertising gain of 6%. (Read More on MediaPost)

 

  • Tribune Media reported a 10% increase in consolidated operating revenue during the first quarter of 2016, bringing the total to $520.5 million. The bulk of that money came from Tribune’s television and entertainment divisions, which earned $454.7 million during the three months ending March 31, an 11% increase over Q1 2015, according to the company.  (Read More on Broadcasting Cable)

 

  • Hulu and YouTube were revealed to be in talks with NBCUniversal, Viacom, Fox and others on creating cable-channel packages to deliver via broadband. Those packages, so-called “skinny bundles,” are expected to cost $35-$40 if and when they go to market — well below the price for a typical cable subscription. But they are not likely to collapse the cable ecosystem anytime soon. OTT delivery of television is not new. Dish and Sony have rolled out skinny bundles via Sling Television and PlayStation Vue, respectively. Premium channels have reached out to non-cable customers through owned-and-operated streaming platforms (HBO), third-party partnerships (Showtime) and hybrids of those two strategies (Starz). Data on how many customers those efforts have reached remains scarce. But there does not yet appear to have been any sudden exodus from the cable-subscriber rolls.  (Read more on Variety)

 

  • Radio looks to mine a larger share of what’s expected to be record-setting election advertising dollars this year, new Nielsen Voter Ratings data shows how to position specific formats as audience hotbeds for each political party. Urban is tops with Democratic voters, news/talk rules with Republicans and oldies is the place for swing/independent voters. Urban radio ratings rank 35% higher among Democratic voters than the overall urban format rating. Urban is one of four formats that over-indexes among Democratic voters: Next is news/talk, which indexes at 118, meaning N/T listening is 18% higher among Democratic voters followed by oldies (108); and religious (108). News/talk is the go-to format for delivering Republican voters—news/talk ratings are 41% higher among Republicans. Sports is close behind, indexing at 132, followed by county (113), and AC and rock (106). (Read more on Inside Radio)

 

  • Multiculturalism and diversity are integral elements of American culture. And they’re gaining prominence, which poses new and replete marketing opportunities for brands looking to engage with multicultural consumers. Latinas are a particularly notable demographic. Within the overall Hispanic demographic—which controls $1.3 trillion in buying power—the women are the ones in the driver’s seat, since many of them are the heads of their households and principal breadwinners in their families. “Latinas make up 17% of the female population,” said Monica Gil, SVP and GM of Multicultural Growth and Strategy at Nielsen, in her opening remarks at the Milken Institute’s recent “Marketplace Influence Empowers the New Latina” panel in Los Angeles. (Read more on Nielsen)

 

  • Charter’s bid to acquire Time Warner cleared its final regulatory hurdle Thursday, when regulators on the California Public Utility Commission approved the $55 billion deal. The Federal Communications Commission okayed the deal last week, while regulators in New Jersey and New York approved the acquisition earlier this year. Charter also is expected to purchase Bright House Networks. When both mergers close, the company’s broadband footprint will be extended to around 30% of the country. Charter and Comcast combined will control around 70% of U.S. Internet connections faster than 25 Mbps — the FCC’s current definition of broadband. (Read More on MediaPost)

 

This and That…

RetailMeNot publishes White Paper on “The Modern Deal Seeker” – The Surprising Truths About Who They Are and How They Shop

RetailMeNot’s new white paper dives into “who the modern deal seekers are today and why”. This is not the coupon cutting generation.  Bottom line is good old customer service, emotional connections and even involvement with charitable causes will make a difference for Millenials and GenX. (Get their White Paper Here)

Donor Engagement Study – Aligning Nonprofit Strategy with Donor Preferences

Abila published this study on the communication strategies nonprofits should use to align with what their donors prefer, which are often quite different than the status quo.  The most accepted channels by donors are: radio or TV ads (82%), direct mail, peer-to-peer fundraising, thank you notes/phone calls, newsletters, and email.  (Get their report here)


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