Pink's Bottom Line on Media, Money and Sports
Podcast advertising revenue, consumer prices and the NFL season opener
In today’s newsletter, I discuss the growth in podcasting advertising revenue, the surge in consumer prices and the NFL season opener.
MEDIA: Podcast Advertising
Podcast advertising revenue increased 18.9% to $842 million in 2020 compared to 2019, according to the IAB US Podcast Advertising Revenue Study released today.
Notably, according to that study, revenue grew 37% in the fourth quarter of 2020 compared to the fourth quarter of 2019, and the study projects ad revenue for podcasts to top $1 billion this year and reach $2 billion by 2023.
Pink's Bottom Line
That sharp revenue growth has led to consolidation in podcasting as big media and big tech have been scooping up podcast companies to participate in that growth.
With this latest study that projects that ad revenue still will grow nicely in the next two years, look for even more consolidation in podcasting — and look for even higher valuations for podcasting companies.
MONEY: Consumer Inflation
Inflation on the consumer level surged in April, according to the government’s Consumer Price Index (CPI) report released this morning.
Prices jumped 0.8% in April compared to March, and prices at the consumer level are up 4.2% over the last year, according to that report.
Pink's Bottom Line
Notably, used car prices climbed 10% in April compared to March — that’s the biggest monthly increase in used car prices since the CPI began keeping track in 1953.
Additionally, that increase in used prices contributed more than a third to the overall increase in consumer prices last month, according to the CPI report.
In any case, consumer inflation looks like a real issue at the moment, which could erode overall consumer spending power.
As consumer spending accounts for roughly two-thirds of all economic activity in the country, that means inflation could potentially weaken any economic recovery.
SPORTS: NFL Kickoff Game
It will be an intriguing matchup as Dallas quarterback Dak Prescott will be returning to the lineup for the Cowboys having missed much of last season due to injury.
As for the Bucs, that team will look to defend its title with quarterback Tom Brady at the helm for his second season in Tampa.
Pink's Bottom Line
According to FanDuel Sportsbook, Tampa is favored to win the NFC at +310 while Dallas is tied as the fifth favorite to win the conference at +1300.
That said, there’s a strong possibility that the Tampa-Dallas season opener could be a preview of the NFC Championship game this year.
The Bucs, the Cowboys and the Los Angeles Rams are the three strongest teams in the NFC this year in my estimation.
Jeremy Pink is currently COO of Geniecast, a leading virtual content and experience company. He is the former CEO of private-equity backed Broadcast Sports International where he helped lead the company to a successful sale and exit during his tenure there. He is also a former CNBC television executive in New York, London and Singapore.
The information contained in this communication is strictly for general informational and entertainment purposes and is not meant to be construed as financial, investment, tax, or legal advice. This communication is not a solicitation to buy or sell any securities. I am not a financial advisor or offering professional advice of any kind. Users should not act upon the content or information found within this communication without first seeking professional advice appropriate for their individual situation. Decisions based on information contained in this communication are the sole responsibility of the user, and use of this communication and its contents constitutes an explicit understanding and acceptance of the foregoing disclaimers.
(Newsletter Editor: Karina Pink)