Winners & Losers March 19, 2015

March Madness, Etsy, Instagram



Winners & Losers Episode 20: L2 predicted last year that Instagram will be the world’s most powerful platform, and the prediction stands. In addition to the large communities and high engagement rates, Instagram keeps Facebook young and in touch with the teens that have flocked to Instagram. Brands are posting more on Instagram than they are on Facebook, as the former still provides them with 100% organic reach whereas brand organic reach on Facebook has declined to 6%.

Is Etsy a winner or a loser? It hasn’t turned a profit and netted a $15.2 million loss in 2014. However, it sold $2 billion in merchandise last year with the average seller making $1400 in revenue and the average buyer spending just under $100 a year. (The average buyer on Amazon Prime spends $1500.) Yet 36% of Etsy’s gross sales happen on a mobile device.

March Madness is a winner as NCAA is thriving in a digital age. Digital ad spending on the platform has increased from $479 million in 2005 to more than a billion in 2014. Ads are streamed to 9.9 million viewers with ad-supported video casts. From this revenue stream another winner emerges: coaches who earned up to $9 million in salary in 2014.

It looks like bars and restaurants are winning the war against grocery. For the first time in history Americans are spending more on eating and drinking out than on groceries.

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