Welcome to our latest Five on Friday, essential curated finds and actionable insights we found just for you! This week, we delve into the dynamics of the subscription service industry, the evolving landscape of data usage in marketing, the contentious realm of sports streaming, the anticipated impact of AI on SEO traffic, and the rising costs of streaming subscriptions for American consumers. 

Unpacking Why Subscriptions Fail

CEOWORLD Magazine delves into the critical challenges facing the subscription industry. Despite its impressive growth — a 300% increase between 2015 and 2019, with 68% of U.S. adults subscribing to services — the market is fraught with failures due to common oversights. The piece identifies four pivotal areas where subscription services falter: overly broad targeting, poor curation, insufficient launch efforts, and inadequate growth preparation.

The magazine details how a lack of specificity can doom services, as seen when companies fail to narrowly define their target audience, resulting in vague offerings that fail to resonate. The importance of meticulous curation is underscored through examples like Jonica Thompson’s bakery subscription, emphasizing the balance between price, value, and profitability. CEOWORLD also highlights the critical nature of a robust launch strategy, using Sarah Cummings’ experience with the Redheaded Camel as a case where fully committing to the launch phase significantly boosted subscriber numbers. Check out CEOWORLD Magazine’s full article here.

Navigating the New Landscape of Data Usage in Marketing

Forbes recently published a thought-provoking article that delves into the evolving realm of data in marketing. The article distinguishes between first-party data, gathered directly by a company, and third-party data, which is acquired from outside sources. 

Significantly, it discusses the impact of new FCC rules requiring explicit “one-to-one” written consent for lead generation, effectively limiting the use of third-party data for marketing purposes. It also proposes a shift towards more ethical data usage through AI and programmatic advertising, enabling companies to engage potential customers in a less intrusive manner. This method aligns with new regulatory standards and presents a more cost-effective and brand-positive approach to customer acquisition and engagement. The piece underscores the importance of adapting to these changes, suggesting that while traditional data strategies face limitations, innovative approaches can lead to more meaningful and effective marketing outcomes. To explore the detailed implications of these shifts in data utilization and marketing strategies, Forbes offers a comprehensive discussion worth reading here.

A Misguided Bet on Sports Streaming?

There has been a lot of coverage on the recently announced ESPN, Fox, and Warner Bros. Discovery sports streaming subscription service launching this fall. Fast Company casts a skeptical eye on the joint venture to create a new mega-streamer for sports, tentatively dubbed “Sportzilla.” The platform aims to be a comprehensive solution for sports streaming, amalgamating broadcasting rights from NFL, NBA, MLB, FIFA, among others, into a single service. This initiative seeks to attract the so-called cord-nevers — individuals who have never subscribed to traditional cable services — by offering an extensive sports package online.

However, Fast Company argues that this strategy may be misguided, pointing out that the targeted demographic may already be well-served by existing streaming services like YouTube TV, Hulu + Live TV, and others that provide access to live sports without a cable subscription. Furthermore, the new service may not even offer a complete sports package, lacking content from NBC Universal and Paramount Global, which hold rights to significant sporting events. With an anticipated price tag significantly higher than existing offerings, Fast Company suggests that “Sportzilla” may struggle to find its place in a market where consumers are increasingly seeking to reduce their subscription costs. The article raises important questions about the viability of the service and whether it can truly meet the needs of its intended audience. For a deeper dive, check out the full commentary on Fast Company.

Predicting a Shift in Search Engine Traffic Due to AI

Search Engine Land presents an intriguing exploration of the potential decline in traditional search engine traffic by 25% by 2026, influenced by the rise of generative AI technologies. This prediction, originating from Gartner, suggests that as generative AI conversational assistants like ChatGPT and Claude gain popularity, they could divert significant traffic from conventional search engines such as Google. 

This shift could fundamentally alter search marketing strategies, affecting both organic and paid avenues. If this trend were to materialize, it would necessitate a significant adjustment in marketing strategies, urging brands to explore alternative channels to mitigate potential losses in SEO-driven traffic. The article also provides resources for preparing for this potential shift towards AI-enhanced search engines, underscoring the importance of adaptation in the dynamic digital marketing landscape. For a deeper understanding of these insights and strategies, delve into the full discussion on Search Engine Land.

American Streaming Subscription Costs Approach $1,000 Annually

9to5Mac reports on the escalating costs of streaming subscriptions for the average American, now nearing $1,000 per year. This increase is noted despite over half of the subscribers canceling at least one service in response to recent price hikes. Major platforms such as Apple TV+, Disney+, Hulu, and HBO Max have all marked significant price increases, contributing to this surge. The study highlighted by ZDNet found that subscribers on average spend $77 monthly on streaming services, with a segment paying upwards of $100 to $200 monthly. Factors contributing to this rise include the introduction of ad tiers prompting upgrades, the elimination of ad-supported versions for higher-priced models, and a crackdown on password sharing leading to more individual accounts. This trend indicates a shift in consumer spending towards streaming services, surpassing traditional cable costs and reflecting a significant change in viewing habits and budget allocations. For more detailed insights, visit the full article on 9to5Mac.