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Email Spreads Its Feathers
Ultra-trendy CTV networks are turning to an old-school method for retaining users: email marketing.
NBCU’s Peacock is using good-old-fashioned email blasts to reduce churn and increase viewership, Marketing Brew reports. Free and paid subscribers receive three to five emails per week depending on how active they are on the platform.
Peacock analyzes viewing habits to classify users into more than 500 audience segments based on what content might resonate with them. It then measures viewership lift for shows highlighted in email campaigns over the seven days following an email blast.
The strategy seems to be working.
While every other major streaming platform saw its churn rate increase year over year in June, Peacock’s churn rate dropped 2%, according to Antenna.
Peacock is also taking a little personalization inspiration from Spotify’s viral Wrapped campaign. Last year, Peacock sent emails to 40 million users breaking down their favorite content genres. (Privacy laws prevent the platform from calling out specific shows viewers have watched.) Peacock credits the campaign with driving a 20% reduction in churn among paid subscribers and a 6% lift in free subscribers upgrading to the paid tier during a 30-day period.
Agency Shake-Ups
Agencies are hitting the reset button, Ad Age reports.
To cut costs, agencies have been reshuffling their budgets, restructuring their workforces, laying off staff, offshoring their services, hiring freelancers and starting to rely more on AI. They’re also focusing on performance, data and technology rather than taking a service-only approach.
Stagwell, EssenceMediacom, BBDO, Droga5, Huge, R/GA, Anomaly, Grey and IPG are among the agencies that have reduced their headcounts this year. Some departing employees have joined indie shops or formed their own agencies, such as Bandits & Friends, co-founded by alumni from Goodby, Silverstein & Partners New York.
Adding to the anxiety at agencies is the existential threat of AI. Since most agencies still run on a model that charges clients for hours worked, not performance, they’re incentivized to keep people on the payroll rather than replace them with AI. But agency employees are vulnerable, particularly those in more process-focused roles, such as media planning and buying. A June Forrester report predicted that 7.5% of agency jobs will be automated by 2030.
No Cash Cow
Spotify bet the farm on podcasting – and lost.
The audio company put most of its eggs in the podcasting basket, pouring more than $1 billion into celebrity-hosted shows, two podcast studio acquisitions and exclusive original content. But the majority of its podcasts aren’t making money. Spotify reported losses of approximately $565 million in the first half of 2023, the Wall Street Journal reports.
Under pressure, Spotify laid off 2% of its staff, or 200 employees, in June. It increased its individual subscription price to $10.99 a month in July, and it combined Parcast and Gimlet into Spotify Studios. Fellow audio outfits, including SiriusXM, iHeart and NPR, have also had to tighten their belts.
Unlike Spotify rivals Google, Apple and Amazon, whose deep pockets and diversified revenue streams protect them from podcast-related losses, Spotify went all in on its audio dreams. But despite its struggles, Spotify is holding fast. The company claims its listeners have increased tenfold since 2019 to 100 million and that its podcast biz will turn a profit in 2024. It’s also aiming to increase its ad revenue from 13% to 20% of its total revenue.
But Wait, There’s More!
Warner Bros. Discovery says WGA and SAG-AFTRA strikes will cost the company up to $500 million. [CNN]
While picking a fight with the Anti-Defamation League, Elon Musk says Twitter/X’s US ad revenue is still down 60%. [tweet]
TikTok hires a UK security company to audit its European data controls and protections. [Bloomberg]
TikTok is also hiring personnel to develop social networking features to keep users on the platform. [Axios]
It’s a first: ESPN no longer has power over cable companies. [Stratechery]
Streamers are open to sharing ownership of content with creators again, leading to new licensing agreements with third-party platforms. [Insider]
You’re Hired!
Omnicom has chosen Guy Marks as the new CEO of PHD Worldwide. [Ad Age]
