Auto-less Super Bowl Teams, Ad Takeover, Consumer Optimism

Paul J Daly: 0:16

This is a dude, it is Monday, January 29. This time next week, NADA will be over, we will be exhausted and energized. But today we're talking about auto LIS Super Bowl teams and ad takeover and consumer optimism. The people really want consumer optimism they stopped, right? We're gonna talk about that. That's real,

‍Kyle Mountsier: 0:39

exhausted and energized. That is kind of like after a great workout. It is. It is. It is exactly that is I don't think I've ever said it that way. Neither that is the way that every auto event makes me feel.

Paul J Daly: 0:56

Good morning to everybody on the live stream. It's good to have you here. We obviously have a full, busy, busy, busy week coming up because NADA show is kicking off on Thursday, some things Wednesday night, but really Thursdays when the when like the education and the outside events, bolt on events start going on, we will be there in full force covering it from start to finish, make sure you do a couple of things. If you're listening to the podcast or watching the live stream number one, sign up for the email, we're going to be dropping a lot of the content in that email, maybe even a special email or to go to a soda.com right there at the top, put your name on and you'll get like a really great email every day that you'll enjoy reading. Secondly, go to LinkedIn and follow us so to because we're going to be live streaming live events, we're going to be posting a lot of content, a lot of pictures so if you can't be there, our goal is to make you feel like you were there as much as humanly possible. So those two things big time. Today we are releasing we do have a lot of other content still going or regular content stream is still going on. One of those things is a podcast we call Auto Collabs co ll abs and today we are releasing an insane interview with Troy Doohan, who is a premier prestige. Monday morning brain. Auto Group from Louisiana. And let me just tell you this, I left this man so Amir, Amir, oh, SoCal premier Auto Group. And I left and I believe you did to left this interview, incredibly inspired,

Kyle Mountsier: 2:29

wildly inspired. And then right after that, he stayed on for another five minutes, and I got more inspired. So you got to get to know Troy Doohan. You can search him on the Google machine, if you don't know who drew straw do on his. And he's splattered everywhere all over the place. He's got a lot of stuff in nonprofits and dealerships and making movies.

Paul J Daly: 2:49

And he's an executive producer information, major motion. So there's always that that's gonna be streaming from our LinkedIn page and our other social platforms at 1pm today, so that's also a fun place to catch it. So you can drop into the comment, say, Hello. Obviously NADA is coming in Thursday, and we have 106 days to asoto cotton. Not that we're counting. I have some big, stinking announcements to drop this week. Today, today,

Kyle Mountsier: 3:15

we're dropping in here, hey, we're dropping them here. Or just let me tell the people today right now. We're dropping it on social today. I mean, what are we doing? You're listening. You're like our people. Yeah, we'll tell them, you get to drop the this year. We are so excited to announce that the keynote speaker on the end of the second day of a soda con will be none other than the author of unreasonable hospitality and former owner of 11 Madison Park will get Dara and we could not be more excited as team asoto we started to see a pop up all over LinkedIn that other people are reading the book having him speak, and we're gonna bring him in so to style and have him share all about what it looks like to bring hospitality to the auto industry, which we care a lot about. And now we almost had him last year as well. And that just the dates he had to be in a different place. So like we were thinking about this a year ago. This year, we're making it happen. You go to a soda con.com We

Paul J Daly: 4:16

do have some speakers up. We also have another great partnership thing happening with a soda calm we're going to announce soon we have some of the speakers that right there are going to be a boatload of amazing speakers. We just put a little drip on the website just so you can see. So yeah, they got a lot going on. So pay attention let's talk about some news. It's kind of current events to speaking of. I don't know I'm I'm gonna segue into this one. Yesterday was a disappointing day unless you're a 40 Niners fan or you're a chiefs fan, especially for the auto industry. The Lions ended up losing I felt like I was watching the Eagles play in the second half. It didn't feel good, it just overall disappointing, but now that the automotive team, so let's just give our condolences to those who had a team that lost and Hmm, I feel like I like have resolved when the eagles were out I kind of expected that but then I have my hopes are so high for the Lions I felt like I was in the fight. But now that automotives team the lions, Detroit Lions were eliminated from Super Bowl contention last night by the 40 Niners career. Congratulations, David's back, it looks like the industry will be back to talking about the manufacturers that we've run in commercials during the big game, and just two weeks from now. So Toyota has actually done an about face on their initial decision to skip the big game and is now set to make a big splash in Super Bowl 58. With a national TV advertisement engaging and some experiential things on sale. Now they pull things together this quickly as the company views its destiny participa helps. So they see this as obviously a perfect reason for a high end creative execution and the timing of the launch of the 2024 Tacoma. Just make sense of so now there are four Kyle now Toyota, BMW, Volkswagen who is always fun and Kia, who has come on super strong in the last year, right on the commercial are all building hype around the big game. I mean,

Kyle Mountsier: 6:07

I'm always hopeful. always hopeful that auto comes in swinging. I feel like Popeyes is going to win the commercial. The big game commercial we'll see. Do you know the little I haven't many drops on the Popeyes. Yeah, it's it's unbelievable. But let's see if Otto can do a thing. And now that auto is out from like, manufacturing center and all we got to cheer on is Swifties. Might as well watch some great auto commercials.

Paul J Daly: 6:36

I have never did you see the American Airlines in my life? I did. They have to direct flights from Kitt. I know. Look, I've I've literally last night when the game ended. I was like, I don't think I'm watching the Super Bowl this year. I literally was there. This morning. I'm rethinking my position a little bit. But I mean, let's just be honest, it's so hard when you love a team so much. And the 40 Niners are just like making their way up next to the Cowboys. And the chiefs were already there. So if you're an Eagles fan, you're like, I don't know who I want to lose. It's tough. But I watched it. I watched it for the commercials this year. And speaking of watching it for the commercial, yes, thank you for getting me out of that. I was trapped in the glass cage of emotion, Amazon is shaking up the streaming world by introducing ads to Prime Video a movie expected to add over get this $5 billion to its existing $38 billion ad business. So much money starting today. Prime viewers, when you log into prime, you're going to see an in stream ad losing Amazon in direct competition with all the traditional linear TV giants as well as the other streaming services that are already on the bandwagon. So big difference here, Amazon has a massive, massive, massive amount of consumer data 70% of American households have an account, making it obviously a very targeted platform for advertisers to be placing their content in because the targeting, despite some pushback, their proposed ad rates are competitive with a lot of other platforms, placing it about 30 to $35 Cost Per 1000 views. You know, smaller advertisers are saying or maybe more beneficial because they have access to a larger audience. And so Netflix has something to say right, Netflix recently announced the ads. And Netflix is saying the CEO says we've got the most engaged audience watching the most culture defining film series and live events. And that's why brands should be here. However, Amazon's like, we know what everybody buys and where they live and when they're watching. So that's why you should watch it here. John Morgenstern, the executive vice president, head of investment at the holding company, Vayner X, you all know, VaynerMedia, it's not really just an ad holding company, but obviously very in touch with culture, very in touch with ads, he says, It seems a little expensive, you'd like to see the cost come down to the high teens. He said, however, if they can match back the business results to the placements because of their data, it doesn't matter what it costs. So if you don't want to watch any more ads, it's gonna cost you a whopping $3.03

Kyle Mountsier: 9:11

bucks for a month, they're gonna come get you there. They've said, even Amazon, and I think the Bank of America study was like, we only expect about 1/3 of the users to actually upgrade it. So the rest of the people are going to be having it. I texted our good friends at cognition. Thinking about them this morning. The ads start running today, just so like if you're with an Amazon provider, they should be able to run these ads via the OTT platform. But this immediately, like overnight, puts Amazon in the driver's seat, as they have the most monthly active users of any streaming platform running ads now. Oh, like immediately they start running ads, most monthly active users because they have the most people that are paying for their services and on their services. lievable big opportunity for auto massive opportunity. And the targeting is so insane because you get like all of this purchase data all of this shopping like how many times are people interacting with their device with Amazon on cross app tracking all of the stuff that Amazon gets the access to the all these other streaming providers don't pull? Wow. Yep. Not

Paul J Daly: 10:23

just think of like they know you're on your app and watching at the same time. How many? Think about that? How many other streaming services like are you on the app? Live? And it's on the screen and they know that

Kyle Mountsier: 10:36

Oh, my goodness. Hyundai is like literally just so excited. Oh, my gosh.

Paul J Daly: 10:43

Oh, they have right now. See now there's the Super Bowl. thing. I guess it's not on Amazon Prime. But Thursday night football is going to be real thing this year. Speaking of speaking of speaking of consumer optimism, we're up close monotype.

Kyle Mountsier: 11:02

Americans are definitely feeling a surge of optimism about the economy. rising stock prices falling gas prices, lower egg prices, that's always a tell are responsible for this shift in sentiment marking the end of what experts are calling the vibe session. This reflects a more positive outlook on personal finances and inflation despite the underlying economic concerns, or conditions remaining, largely unchanged. So even though like our general economic conditions are different or not changed, the consumer optimism is higher. You've got record highs for the Dow record highs for the s&p 500 lower gas prices than we've seen in a long time falling under$3.10 A gallon after being up over $5 Just two years ago and 2022. The cost of eggs, here's why. Here's a wild one, down from 425. A year ago to $2.51. That's almost a 50% reduction in the cost. It's about

Paul J Daly: 12:05

it's actually very similar to the Gasp percentage.

Kyle Mountsier: 12:08

Wow,

Paul J Daly: 12:08

I'm looking at that now. So I always the egg one always makes me laugh. Always. It's like, you know, how many do you buy? Do you buy in a week?

Kyle Mountsier: 12:19

Oh, my goodness, I don't even I mean, it's probably like, three to five. Okay, so

Paul J Daly: 12:24

it makes a $6 difference in your personal budget. There's something about it, though, that has consumed mindset shifting at yours is ridiculous. Because

Kyle Mountsier: 12:34

you always have to walk to the back of the store. So you know, you pick it up 30 Other things on the way, right? Like

Paul J Daly: 12:39

it's still I mean, but but the gas prices obviously makes sense. Right? That is it every day real time indicator posted everywhere you drive, right? You get a little barometer on where the economy is, but I liked the fact that they call it a vibe session, right like recession. It's like the vibes are what's changing consumer optimism because people were feeling really bad, the vibe was bad. But now all of a sudden, the vibe, upswing. A lot of people actually have money in the stock market where you're saying like, why don't have any stock market? Well, likely you have some retirement or 401 K or friends and do or parents that do that are talking about it at the dinner table. And so this is this is one of those things where we'll see if it's an actual recovery or not. And that's what a lot of the experts are saying like there's still a lot a lot of way to go. marks are still around interest. What's the Feds going to do with interest rates right because the argument said like the more optimistic people get the lower jobs get like the less likely they are to actually curb inflation is less likely to curb so it is very this like chicken and egg concept. But it's the thing we're going to do to tie this back down to what's happening everyday in the store. Consumers are feeling up right so what do you do when consumers are feeling up? When you talk about feeling up? You contribute to the momentum right like momentum forward? Yes. And then obviously, with the interest rate situation, or you know, that's big conversation over leasing or purchasing, like this is just a good time to enjoy the up mentality you're gonna see. I'd like to hear from some people right, like, what are you seeing walk in the showroom? That'd be a good survey like the auto does frontline automotive feel like? A little bit taller, right? Like I just paid 250 for a dozen eggs. Let me spend a little more on my monthly payment right? More. A week. 24

Kyle Mountsier: 14:27

get them on the old eggs, clothes. $24.24 bucks a month. I

Paul J Daly: 14:31

mean, now you can buy that extra warranty. I don't know why I hit that trigger. I don't know. I think that was supposed to be the outro it was supposed to be the outro. But regardless, everybody, we hope you have an amazing day. We're kicking off an amazing week of coverage. Make sure you sign up for the email. Follow us on LinkedIn. We will be here all week and then at NADA

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