Cali Tells Residents to Unplug EVs, Netflix Goes Lux For Ad Buyers, Time to Edit Those Tweets

September 6, 2022
Welcome to Friday, friends. Today we share what we’ve been learning from talking to Dealers all week. We also cover California’s power shortages, Netflix taking the expensive route for advertisers, and the much anticipated ‘edit tweet’ button.
Listen On
  • What were learning by talking with so many Dealers and Industry Partners this week

  • California asks residents not to charge their EVs the day after announcing all vehicles must be EV only by 2035
  • The American Public Power Association and state energy regulators are asking people to turn thermostats up to 78 degrees or higher and to turn down how much they’re charging their EVs, especially during 4 and 9pm
  • State officials point to heat wave and remind people this is normal for California
  • Governor Gavin Newsom and other state officials are also backing a plan that would allocate $5 billion to maintain the current grid instead of making it better. The plan include relying on fossil fuel-powered generators to shore up the grid
  • The Times of SanDiego reports that Members of California’s Air Resources Board continue to question the practicalities of their staff’s proposal to ban gas-powered vehicles, raising concerns over challenges in buying and charging electric cars in addition to affordability and equality concerns.
  • Take away:

  • Netflix is taking big steps toward launching its ad supported product and it isn’t going to be cheap for advertisers
  • Execs from Netflix and Microsoft (who is the tech partner to support the ads) met with buyers last week are are planning to charge $65 CPM which is substantially higher than other platforms
  • They want to get it up to $80 due to their proposed ability to master targeting
  • Asking for a one year commitment from buyers, similar to traditional TV buys and is limiting spend to $20million per year to avoid users seeing the same companies advertise over and over
  • Targeting 4 mins of 15 and 30 second ads per hour which is less than other streaming platforms and much less than TV which can be as high as 23 mins per hour
  • Launch for the new service is slated for early 2023
  • Take away

  • It’s time to edit those tweets as Twitter rolls out widespread testing of the new editing function to all Twitter Blue users
  • Can edit within the first 30 minutes of posting
  • Edited tweets will include an indicator of the date and time the tweet was last edited
  • Tweet readers will be able to tap to view the edited tweets history


Kyle Mountsier, Paul Daly

Paul Daly  00:23

Yo, it's Friday. The hat is backwards already. Turn it backwards, Kyle. We got work to do. We're talking about California telling residents not to charge their EVs neck Vince go Netflix go and look for an Smyers tongue twister, tongue twister. flicks goes locks for ad buyers to talk about editing a couple of tweets as well. Well, we just came in hot out of another room, we got up early to be on a clubhouse room that went long as they always do. And now we're into the live show. And we're coming out of this live show into the next clubhouse room in 30 minutes from now, the little things used car room by David Long powered by a soda. We're gonna go into there to talk about some use car things. We have some other things to talk about. We're going to hit your quick hits this morning. Hey, if you're not coming to a soda con, we're gonna say it. Uh, so to conduct calm, get your tickets. I know everybody wait till the last minute. So they're still buying tickets, but get your tickets so we can make sure there's a lot of cheese steaks for you. Okay, auto collabs launching two new episodes today. Nathaniel, Greg click super fun. Brian Ortega, super fun to insanely great content creators in automotive. And I would just say not even even outside automotive. They're great content creators, as well. Yeah. And so

Kyle Mountsier  01:39

these guys, you got to follow him. I don't care if you're in or outside of automotive, you got to follow the Daniel, Greg click, and Brian Ortega on all the platforms. Actually, you can go to Brian J And watch all his videos. They're not

Paul Daly  01:53

outrageous. They're outrageous. They're outrageous. Hey, we got a couple of the three news stories. But first, you know, Kyle and I have been on calls all week long, with dozens and dozens of dealers and industry partners. And we thought we wanted to share a little bit of like what we're learning and feeling. There's something different happens when you're on a private zoom call with someone not on a live podcast, and not in a room with 50 other people, but when in a room with one two or three other people that you start to understand, even in a more deep way, the essence of what drives the retail automotive industry. And let me just tell you this, it isn't cars.

Kyle Mountsier  02:33

It's not cars. It is it's it's everything. It's almost everything. But it's like the level of attention that they have for like business operations for caring for their people for understanding the economics of scale. It's it is I mean, we're literally talking to Darren Doan yesterday, and he's like, imagine starting a business. And 10s of millions of dollars are going to flow through that business on a daily basis. But you're only allowed to really kind of be local, throw that out to someone, you know, the these, these operators are doing things and they're thinking about their business in ways that anybody in any retail organization, organization can think about. I mean, I'm talking to David Long, and he's breaking down the dynamics of inventory that's on ground in pipeline on order and figuring out how to manage those business entities on a daily basis. Like that's dialed in. I don't know if you've ever thought of that. But wild,

Paul Daly  03:29

wild man, some of the other conversations, so much focused on people so much focused on the heart, cultivating the hearts of the people who work for you, helping them to realize everything they have inside them as their potential helping them walk through hard times. Man, we've been even some conversations with dealers on why they're not taking government money that they are entitled to legally. Because it's been a strong year and profitability. And they're like, you know, we decided not to take it and other dealers been like, yeah, you

Kyle Mountsier  04:00

know what, we didn't take it either. Yeah, we didn't take it either. And that is not what it seems like, if you read the newspaper about car dealers, no, but I think you'd be really hard pressed to find next to top execs from, the president and the founder. So So Alex Vetter, and Doug, Doug Miller, both saying, hey, look, the sentiment across their platform called DealerRater is overwhelmingly positive for dealerships.

Paul Daly  04:26

This is a website where you're like, hey, rate, the dealer rate, the salesperson rate, your experience, that's actually where it's all coming out, not we're not talking about like the sub Reddits and things like that, where, where, you know, it can tend to go negative, right, or the negative energy just gets amplified. Dealer rater is like, hey, it's the customers chance to talk about their experience in a way that they know the dealer is going to see it. Right, which is more applicable. So we just wanted to share some of that energy with you today because that is what we're trying to do it as a soda, right if we are going to change and not change if we're going to elevate the culture You're in perception of retail, automotive, more of this needs to get out you are a big part of it. We're trying to do everything we can to empower you to do everything you can. Let's get into some news speaking of doing everything they can for everything they can very broad sense. They're very broad said So California asked residents not to charge their EVs just a day after announcing that all vehicles must be evey. By 2035. The American public power Association and state energy regulators are asking people to turn thermostats up to 78 degrees, I would melt by the way, or hire to turn down much and turn down, you know, not turned down on or not charged their EVs between certain periods of the day because it's hot in California in the summertime, and 78 degrees at all times

Kyle Mountsier  05:54

in California or anywhere where

Paul Daly  05:56

you Oh, no, no, no, that's called San Diego send Sandy. My sister live in San Diego. If you just go like every mile you go inland, like the temperature goes up a degree right? It's sensitive like that. State officials are pointing the heat wave reminding people that this is normal for California, meaning you have to conserve energy conserve power, Governor Gavin Newsom, and other officials are also backing a plan that would allocate $5 billion to maintain the current grid instead of improving it. And the plan also will take 5 billion just to be status quo. Well, yeah, and the plan also includes relying on fossil fuel power generators to support the power grid, that we linked up an article from one of the writers at Jalopnik. And I thought it was really appropriate because he lives in California. So it was like the perspective of a professional writer, you know, who writes about cars, who lives in California. Another publication in the times of San Diego reported that members of California's Air Resources Board continue to question the also the practicalities of the proposal to ban gas powered vehicles raising concerns over challenges also listen to this affordability and equality. So it's like kind of like you got super practical, right? We need to power the charger. And then the the more human interpersonal you know, socio economic challenges of saying like, hey, if we make this a reality, it's really tough to do that when like the average price is like 45 grand.

Kyle Mountsier  07:20

Exactly. And when cost of living is already extremely high in California. You know, I'll leave you I'll leave you with this. If you don't get the push back email. You absolutely should. Because our writer Chris wrote it like this. He said telling it like it is clock's ticking California, you've only got 4504 days, until January 1 2035.

Paul Daly  07:42

Oh Snap i To quote one of our Soto investors, David Long. Living in California isn't for the faint of heart. Ah. Man, speaking of prices that are not for the faint of heart. So Netflix, Netflix is taking big steps touring toward launching its ad supported. Program ad supported tier we talked about this few weeks ago. On the show, Netflix is going to start offering an ad supported version, which is going to be cheaper, but it's not going to be

Kyle Mountsier  08:15

very cheap for advertisers. Buddy, good to see that they are that right? They're planning to charge $65 CPM. That's almost double. That's actually over double playing CPM. So for the non marketers, yeah, cost per 1000 impressions. And typically, what you see is a cost per 1000 impressions on any OTT or streaming platform, somewhere in the 28 to $33, depending on the platform of the audience. So we're talking over general, the CPM that they are currently going to hit advertisers with and they want to get it to $80. CPM. Now they are they're touting their audience data and their ability to target specific audiences. But here's the thing, I don't know, another platform that isn't touting a great level of audience data, including see, you know, data platforms like Amazon, they kind of got some good user data, they got people

Paul Daly  09:14

a little bit every single day know everything they buy.

Kyle Mountsier  09:18

So it's kind of blowing, it's kind of blowing my mind. And not just that, but they're asking for year long commitments to the ad platforms, similar to like a traditional TV buy. So, you know, it's much more akin to like a linear TV buy from both a contract perspective, and, and the cost per impression. Man, I just don't see as as like a platform that that a bunch of people are gonna be running to at this.

Paul Daly  09:46

I mean, they're, they're selling the hype. I think, you know, advertisers have been drooling over Netflix's audience, which has been really just totally, totally unavailable to advertisers. Right. So I think it's a new platform. There's hype around it, they have brand power, and they're trying to leverage all the brand power, you know, they want a year commitment. And that might just be because they don't know how it's gonna go. And if you get the year commitment they want to get to, we're willing to willing to be in a free year with them. They are limiting any advertiser spend to 20 million, which is a relief because we wanted to spend 40 million, but they said no a soda, you can only spend 20 million. So I mean, it saves a little budget there. I like what they're doing with the target, they're only going to have four minutes of advertising per hour in 15, and 32nd ad increments, which is a lot less than other streaming platforms, traditional TV, this, this is a good surprise anyone 23 minutes and hours. So it is almost like I feel like I'm watching more ads than show it's like, well, you're pretty darn close launch of their services slated for 2023, early 2023. So maybe you too can see ads on Netflix and know that that company paid a lot of money to get the product in front of your eyeballs. Speaking of getting messages in front of your eyeballs.

Kyle Mountsier  10:57

Segway one, one. So Twitter is finally as they've been talking about for years, and people have been begging for starting widespread testing of a new editing function to all Twitter blue users. So if you don't know what Twitter blue is, it's a subscription service for more content that you can get out there. And so you can edit within the first 30 minutes. So screenshots still exist for at least 30 minutes potentially. And they are going to indicate that you have edited them that the date and including not just edited them, but the date and time the tweet was last edited. So there'll be a little bit of a accountability and audit trail. And you'll be able to see the edited tweets history. So you know, for those of you missed well or say that thing, it's kind of like a little cheapskate on on the Edit history. Yeah, there's

Paul Daly  11:52

there's a cool thing about being like, Hey, you got one shot at this once you hit send, it's gone forever, right? Yeah. But you know, a lot of people have been asking for it. I'm not a huge Twitter user. So I think it's fair. I think the way they're rolling it out is fair. Hey, you can edit it only for 30 minutes, and everyone can see what you did. I like how you called it an audit trail. Because if there was not that, if there was not the audit trail, if it just said edited. Just think of like the trouble and the mayhem. You could create, you could literally edit it to say the opposite thing that you said. And it would just say edited like spelling error. It's like so you said the opposite thing.

Kyle Mountsier  12:25

That happens on other platforms. So who knows? Yeah, that's true. I don't know.

Paul Daly  12:29

We're done. This is why we don't start social media platforms. Well, we're definitely not done this Friday. We know you're not done either. Heading into a holiday weekend, lots people got lots of selling lots of barbecuing, lots of fun to be had. We'll be having fun with you here.

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