Industry Insights: August 2, 2023

Boomers are Watching TikTok… on Redbox?

Hello, Friends!

Welcome back to our weekly Industry Insights! We’ve got a fascinating mix of trends and quirky updates to keep you informed and entertained. So, sit back, relax, and let’s dive right in!

Big-Picture:

In these challenging economic times, it’s interesting to observe the “lipstick effect” in action. As people face financial strains, they tend to indulge in small, comforting purchases like beauty products while tightening their budgets elsewhere. Discretionary retail is down in almost every category except for beauty.

The pandemic’s impact on finances has been quite complex. Surprisingly, new data reveals that Americans have 10-15% more cash in their bank accounts than before the pandemic. However, the median account balance has decreased by 41% from its peak in April 2021, affecting all income brackets. As inflation slows down and real wages rise, there’s hope that people will see their savings grow once again.

On the other hand, it seems more Americans are facing loan rejections, with rates reaching their highest level since 2018, as reported by the Fed. This could be a sign of cautious lending practices during uncertain economic times.

Marketing Industry:

In a world flooded with advertisements, standing out from the crowd has become a considerable challenge. Surveys show that people remember only 1-10% of ads they’ve seen in the last 24 hours, with 18% claiming not to remember any at all. Social media and TV channels have the highest recall rates, making them vital for advertisers aiming to capture their audience’s attention effectively.

In a fascinating twist, TikTok and Redbox have teamed up to stream TikTok content on over 3,000 red kiosks. This collaboration is an ingenious way for advertisers to reach the older generation who might not have embraced new technology yet. It’s exciting to see how brands are leveraging unexpected partnerships to reach new demographics.

Hold on to your Twitter handles! Elon Musk, the visionary entrepreneur, has some interesting plans for the social media giant. He aims to replace Twitter’s iconic bird logo with the letter “X,” suggesting that he may be envisioning an “everything app” under this new branding. Let’s see where this leads!

Just for Fun:

Phew, “it’s gettin’ hot in here!” Phoenix, AZ, recently experienced its 24th consecutive day of temperatures above 110 degrees Fahrenheit, breaking a record that stood for 49 years. Stay cool, everyone, and remember to hydrate!

It seems our beloved ChatGPT may need to brush up on its fourth-grade math skills. According to a recent study, ChatGPT-4’s accuracy in identifying prime numbers plummeted from an impressive 97% to just a mere 2% last month. We all have our off days, don’t we?

That’s it for this week’s Industry Insights! We hope you enjoyed the read and discovered something new and intriguing. Remember, the economy might be challenging, but there are always exciting developments happening in various industries. Stay positive, stay curious, and we’ll catch you next time with more exciting updates!

Until then, take care and have a fantastic week ahead, friends!

Bon appétit!

Your friendly Industry Insights devotee, 

JD