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Is the Stock Market Over-Exuberant for Snap?

3 Mar

Snap Inc. is a U.S.-based technology and social media company that was started in 2011 .Products include the popular Snapchat app and Spectacles eye wear; it also owns the Bitmoji app.

Yesterday (March 2, 2017) was a big day for Snap Inc. and the tech industry overall because of Snap’s highly anticipated IPO (initial public offering) on the New York Stock Exchange. Some analysts are excited at the popularity of this IPO; others wonder whether investors are being overly exuberant. What do YOU think?

As reported by CNBC:

“Snap soared as much as 45% when it opened for trading at $24 a share on Thursday. Market makers at the New York Stock Exchange indicated the stock was set to open from $23.50 to $24.50 a share. At 200 million shares, Snap raised $3.4 billion and was valued at nearly $24 billion as of its pricing. Sources had told CNBC earlier this week that investors were expecting a pricing of $17 to $18 per share, above the $14 to $16 per share range originally given by the company. The IPO is 12 times oversubscribed, sources said Thursday morning, meaning that there were 12 times more orders for than there were shares offered. Some managers told CNBC they got as little as 2 percent of what they were asking for.”

 

Yet, Felix Richter commented thusly for Statista:

“Snap’s IPO valuation of $24 billion is quite a tall order for a company that has never turned a profit and warned investors that it never might. The company is now valued at 59 times its total revenue for 2016. Even for a fast-growing tech company that is a lot. Facebook in comparison has a price-to-sales ratio of around 14. As our chart illustrates, Snap is valued considerably higher than many American household names. That includes companies such as Ralph Lauren and Harley-Davidson that have been around for decades and probably will be for decades to come.”

Infographic: Snap Is More Valuable Than These Household Names | Statista You will find more statistics at Statista

 

How Big a Hurdle Is Ad Blocking in 2017?

17 Feb

Ad blocking is becoming an enormous problem for online marketers, going from a nuisance a couple of years ago to a major threat today. ARE YOU PREPARED TO HANDLE IT?

Technopedia describes ad blockers as follows:

“An ad blocker is a program that will remove different kinds of advertising from a Web user’s experience online. These programs target certain kinds of ads, such as pop-ups, banner ads ,and other common forms of online ad blockers work in many different ways. Some are standalone programs, while others are features of more comprehensive customizing services, or add-ons for a particular browser or operating system. Some browser-specific programs, like PithHelmet for Safari, or other programs for browsers, like Opera, are designed to work well in a particular environment. Others work with Windows or another operating system to block pop-ups or other kinds of ads.”

“Users have a wide range of options for blocking out different kinds of ads. Some programs delete cookies and other Web markers to effectively limit ads. Web proxy programs like Privoxy can be effective ad blockers. Some users will choose to block Adobe Flash in order to block annoying video ads, which are now common on some websites. There are also freeware programs that may use simple principles to block out advertising.”

So, how much of a threat is ad blocking in 2017? Even though eMarketer has scaled back its estimates slightly; ad blocking is still growing significantly. As eMarketer notes:

“eMarketer has scaled back its estimates of ad blocking users in the U.S., reducing the number to 75.1 million. At that level, more than one-quarter (27.5%) of US internet users will use ad blockers this year. While the estimate has been reduced, growth is still significant, at 16.2% in 2017.”

“Ad blocking is much more common among desktop/laptop users than smartphone users. For smartphones, the incidence of ad blocking is less than 8%. That’s partly because mobile ad blockers are often not as effective — especially within apps — as they are on desktops and laptops. Ad blocking continues to be far more prevalent among younger people. This year, 41.1% of millennials will use ad blockers, r estimates. The use is lower among Gen X internet users at 26.9%, and for baby boomers, ad blocking is at 13.9%.”

 
Click the image to read more.

US Ad Blocking User Penetration, Desktop/Laptop vs. Smartphone, 2014-2018 (% of population)

 

What Was Hot in 1997?

16 Feb

We tend to spend a lot of time looking at the “hot new things,” such as connected vehicles, virtual assistants, and a lot more. But, as marketers, we seldom look back to the past to see what was hot then in terms of fads and long-running successes. What hot high-tech products from 20 years ago can YOU name?

Recently, CNET published an entertaining slideshow: “Flashback fun! Return with us now to the thrilling days of the late 1990s, when the Interweb was young, the CD was king, and the cloud was a white, fluffy thing that floated above your head while you gabbed on your cordless telephone.”

 

Click the image to see the CNET slideshow. Which of the items shown in the slideshow were fads; which were long-run successes?


 

Fortune’s 2017 Crystal Ball

8 Feb

Each year, Fortune magazine presents an interesting series of predictions for the coming year.

The 2017 “crystal ball” is based on these principles (and includes the use of IBM Watson 🙂 ):

“The election of Donald Trump to the presidency represents a seismic shift in American politics, an event with implications nearly impossible to predict. One casualty of the election, indeed, may be the science of prediction itself. For all their algorithmic gymnastics, pollsters and betting markets were utterly confounded by Trump’s win. Which is why it’s essential to have a prediction tool that relies as much on art (and whimsy) as it does on science. And this year, for some extra insight, we’ve even teamed up with artificial-intelligence powerhouse IBM Watson, which mined tens of millions of sources to help us spot hidden trends. Here, we offer our well-informed, intuitive take on the stories that will shape business—and much else—in the coming year.”

Fortune’s 2017 predictions are divided into several categories:

  • Techno-Futurism
  • Politics
  • Economy
  • The World
  • Trendsetters
  • More Companies Tie the Knot
  • Where Fortune Is Placing Its Bets
  • How We Did in 2016

 

Click the image to read the 2017 predictions.


 

Rating the Super Bowl Ads: What’s YOUR Take?

7 Feb

From a sports perspective, Super Bowl LI was an exciting football game — the first one ever going into overtime. But was this Super Bowl an advertising success? The reviews of the ads are mixed. [Click here to access all of the ads.]

Consider these observations from

“The New England Patriots’ furious comeback victory over the Atlanta Falcons must have felt like a relief to the National Football League and many of its fans, if only because it squarely turned the focus and conversation back to football. That came at the close of a Super Bowl where commercials that once would have seemed relatively innocuous felt provocative thanks to the polarized political climate.”

“Super Bowl ads featuring images of multiculturalism and inclusiveness are hardly new — sponsors like to appeal to wide audiences with feel-good imagery. Even so, amid all the acrimony over government policies, several commercials risked becoming lightning rods, including a Budweiser ad that dared to trace founder Adolphus Busch’s immigrant roots and a Coca-Cola spot that offered ‘America the Beautiful’ in different languages.”

“[Nonetheless, for the most part], the much-ballyhooed commercials yielded as few highlights as New England’s offense did during the first half.”

 

Each year, Advertising Age runs an online post-game poll whereby anyone can vote on the question: “Which Super Bowl Ad Was the Best?” As of Monday night, the following ads were rated the best by those participating in the Ad Age poll. In addition to listing the best ads (in the order of the Ad Age poll results), we are providing the ads themselves. WHAT DO YOU THINK?

 

Airbnb “We Accept”

 

84 Lumber “The Journey Begins”

 

Audi “Daughter”

 

Bai Brands “Gentlemen”

 

Budweiser “Born the Hard Way”

 

Mr. Clean “Cleaner of Your Dreams”

 

Honda “Yearbooks”

 

Kia “Hero’s Journey”

 

Tide “Bradshaw Stain”

 

 

2017 Super Bowl of Advertising: A Preview

31 Jan

This Sunday is the Super Bowl of advertising (oh yeah, there’s a football game, too). It’s the time when advertisers pay $5 million per 30 second spot — besides production costs — and try to stand out in the crowd.

Today, we are previewing the upcoming February 5, Super Bowl. Next week, we’ll do a postmortem of the 2017 ads.

Here are some things to expect for this Super Bowl:

  • Starting February 1, YOU can vote at USA Today’s Super Bowl Ad Meter for your favorites.
  • All ad time slots will be sold out for the game, which is on Fox TV.
  • There will be 110+ million U.S. viewers.
  • Pre-game and post-game advertising will be bigger than ever.
  • Pepsi’s half-time show featuring Lady Gaga will be a spectacle aimed at younger adults more at than older ones.
  • The NFL has turned down GNC’s advertisement. As  Judann Pollack and Nathan Skid reported for Advertising Age: “GNC, which had been planning a Super Bowl commercial as part of its huge rebranding effort, said it has been rebuffed by the National Football League today, four days after Fox cleared its commercial in writing. Jeff Hennion, exec VP-chief marketing and E-commerce officer at GNC, said the NFL objected to its commercial because its products include two of the 162 substances banned by the league.”

 
Here several ads to look forward to seeing:
 

Budweiser — “Born The Hard Way”
 

 
Ford — “Go Further”
 

 
Febreze — “Half-Time Bathroom Break”
 

 
Kia — Teaser for “Iceberg” ad
 

 
Mercedes — Peter Fonda from “Easy Rider” fame
 

 
Mr. Clean — “Cleaner of Your Dreams”
 

 

Great Books to Read in 2017

26 Jan

As we continue to look ahead to 2017, there are various books that provide valuable information and that are highly rated by reviewers. Here are a few sources for YOU to check out, by topic.

Click the images to read the reviews.
 

“5 Must Read Books That’ll Inspire Entrepreneurs in 2017”


 

“12 New Books to Help You Build Wealth and Get more More Done in 2017”


 

“11 Great Business Books to Read Right Now”

 

“20 Books Every Marketer Should Read in 2017”

 

“Top 15 Best Books on Social Media Marketing for 2017”

 

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