Pink's Bottom Line on Media, Money and Sports
Digital media vs. traditional media, gas prices and DraftKings deals
I hope you enjoy today’s edition of the newsletter, which mentions Chicago’s Wrigley Field, one of my favorite sports venues.
MEDIA: Digital Media vs. Traditional Media
Overall ad spending on media in the United States is projected to fall 8% this year compared to 2019, according to an IAB report released Wednesday. (The IAB is the Interactive Advertising Bureau, which is a trade association.)
However, the report paints very different pictures for digital media and traditional media.
The IAB report says that ad spending on digital media is projected to increase year-over-year by 6% while ad spend on traditional media is projected to plunge 30% in 2020 compared to 2019.
Pink's Bottom LineIt’s hardly surprising to see these trends, but the numbers for ad spending on traditional media are still stark.
For example, the report says ad spend on print and terrestrial radio is projected to decline by 33% and 31%, respectively, in 2020 compared to 2019.
While the survey projects ad spend overall on all media to increase in 2021, look for a lot of that ad spend to go to digital media in favor of traditional media yet again next year.
MONEY: Gas Prices
If you’re traveling by car this holiday weekend, you could be seeing the lowest price on a gallon of gas on a Labor Day weekend in 16 years, according to Gas Buddy.
Gas Buddy estimates that the average price of a gallon of regular gas will cost you $2.19 this holiday weekend — that’s 37 cents a gallon less than what it cost at the same time last year. A gallon cost $1.82 in on Labor Day weekend 2004, according to Gas Buddy.
Pink's Bottom LineFewer Americans are traveling these days because of the pandemic, and, consequently demand for gas is lower.
If the economy starts to recover, demand for gas could increase. However, as we enter the fall and winter, gasoline usage traditionally is lower because of seasonal factors — so that could potentially offset any potential increase in new demand.
SPORTS: DraftKings Doing Deals
DraftKings, a sports gaming company, made two high-profile announcements in the past couple of days that indicate just how much sports betting is becoming mainstream.
First, DraftKings said Michael Jordan is becoming a special advisor to its board of directors, according to press release from the company.
Second, the company signed a partnership deal with the baseball’s Chicago Cubs with plans, subject to regulatory approval, to put one of its sportsbooks either in or near Wrigley Field, where the Cubs play their home games.
Pink's Bottom LineDraftKings stock moved sharply higher on the announcement of Jordan joining its board though the deal with the Cubs showed a more muted reaction for the share price.
It would have been unthinkable as recently as ten years ago for a gaming company to do large deals directly with a sports superstar and a major league baseball team at all, let alone in the span of two days.
Now, they are just the latest signs of the acceptance of sports betting in the United States.
Jeremy Pink is former CEO of Broadcast Sports International and a former CNBC executive in New York, London and Singapore. He currently serves as an advisor to companies in media, sports and financial tech.
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