Dear ROGER,

Welcome to the April 2025 issue of Key Notes - Marketing Keys' monthly newsletter! As Opening Day excitement fills the air, we hope your business is rounding the bases toward success this year! Key Notes is an informative, quick-read newsletter to get you caught up on all things media and marketing. Our goal is for you to be informed and entertained with the latest media and marketing happenings quickly and efficiently. 

Marketers today face a tough challenge: how to balance performance marketing with brand building to drive both immediate sales and long-term success. While performance marketing focuses on short-term gains, brand building lays the groundwork for sustained growth. Research suggests that the most effective approach is a 60:40 mix—60% of efforts dedicated to brand building and 40% to performance marketing. This strategy ensures that businesses not only capture quick sales but also develop a lasting presence in the market.

Creativity plays a major role in successful marketing campaigns. Ads that evoke strong emotions—such as joy, nostalgia, or inspiration—tend to leave a lasting impression and drive higher engagement. Studies show that emotionally compelling ads can significantly boost sales, while consistent messaging across platforms can increase revenue. Using humor, storytelling, and relatable themes helps brands stand out in crowded digital spaces, strengthening customer loyalty in the process.

Another important factor in growth is increasing brand visibility. Businesses that maintain a strong share of voice in their industry are more likely to gain market share over time. A brand that is easily recognizable across different channels—social media, search results, video ads, and email marketing—has a better chance of staying top-of-mind when consumers are ready to make a purchase. Without a strong brand identity, companies may find it difficult to compete, especially as digital advertising becomes more competitive.

Measuring the impact of brand-building efforts is essential for refining strategies and maximizing return on investment. Tracking key indicators like brand awareness, social media engagement, and customer sentiment can provide valuable insights into what’s working. The idea that brand building and performance marketing are separate strategies is a misconception. Businesses that invest in both will create a stronger competitive edge and drive sustainable growth over time.

Social media is undergoing a major transformation, moving away from public posts and broad engagement to more private, one-on-one interactions. While Millennials once used these platforms for self-expression and staying in touch with friends and family, younger generations like Gen Z and Gen Alpha are reshaping their purpose. For them, social media is more than just a place to connect—it’s where they discover entertainment, keep up with trends, and even find shopping inspiration. But as social media becomes more ingrained in daily life, there’s a growing demand for privacy and genuine interactions over performative, public sharing.

One of the biggest reasons for this shift is the heightened awareness of online privacy. Gen Z and Gen Alpha, having grown up in a digital world, are more cautious about what they share and with whom. Even Millennials, many of whom are now raising families, are taking extra precautions to manage their online presence. As a result, there’s a noticeable move toward smaller, more controlled interactions, such as private group chats, direct messages, and exclusive sharing features like Instagram’s Close Friends. At the same time, Gen Z—often described as a generation struggling with loneliness—seeks deeper, more meaningful connections beyond likes and comments. They are drawn to authentic conversations in spaces that feel more personal and less performative.

For brands, this means adapting their approach to fit these more private digital spaces. Since many social interactions now happen behind closed doors, companies need to create content that naturally sparks conversation and encourages sharing. Posts that are funny, insightful, or relatable can prompt users to send them to friends, making brands part of these private discussions rather than interrupting them. Platforms are already leaning into this trend—Instagram Reels, for example, often suggest sharing prompts to drive engagement. Additionally, brands that participate in online conversations, like replying to TikTok comments in a fun and relatable way, feel more authentic to younger audiences. The key takeaway? Instead of chasing viral moments, brands should focus on building communities and creating content that people want to share in their private digital circles.

Major TV companies are going all-in on FAST (Free Ad-Supported Streaming TV) services as they look to attract more viewers and advertising revenue. Platforms like Fox’s Tubi, Paramount’s Pluto TV, and Roku’s Roku Channel continue to see impressive growth, proving that free streaming is here to stay. NBC is adding 40 new channels to LG’s smart TV system, offering everything from news programming to dedicated channels for classic series like Little House on the Prairie and Saved by the Bell. With deep content libraries at their disposal, traditional TV networks see FAST services as an opportunity to expand their reach and create new advertising opportunities.

Disney-ABC is also making moves in the FAST space, combining free content with its existing subscription-based model. The company has launched several FAST-style channels within Disney+ for subscribers while also making select channels available for free through LG’s platform under the Nat Geo brand. Additionally, Disney-ABC introduced new FAST channels like ABC News Live and ESPN 8 “The Ocho” on MyFree DirecTV, a service that now offers over 95 free live channels. While financial details of these deals aren’t public, they likely rely on revenue-sharing agreements based on advertising.

The continued rise of FAST services brings up questions about their long-term impact on the industry. While they are currently drawing in younger viewers who appreciate free, on-demand content, their share of total TV viewership remains relatively small. Platforms like Tubi and Pluto TV are competing for a few percentage points of the overall audience, but their influence is growing. As networks explore new ways to engage viewers and diversify their offerings, FAST channels are becoming an increasingly valuable piece of the media landscape.

Email marketing has long been seen as one of the most trackable digital channels, but many businesses are finding it harder than expected to prove its true value. One of the biggest challenges marketers face is demonstrating the revenue impact of email, text, and eCommerce efforts to company leadership. Nearly four in ten say that reporting these contributions is a significant hurdle, often because performance data is presented in ways that don’t clearly connect engagement to business growth. Many teams still focus on open rates and click-throughs, rather than linking these numbers to actual sales.

Another issue is attribution—many businesses lack a reliable way to track how email and text campaigns influence purchases. Over a quarter of marketers say this makes it difficult to prove the effectiveness of these channels. Additionally, leadership teams often place more emphasis on other marketing efforts, leaving email and SMS underutilized. While most marketers do track revenue, only a small percentage have a clear attribution model in place, making it challenging to turn performance data into actionable strategies.

With better tracking methods and a focus on meaningful metrics, marketers can improve the way they demonstrate email’s impact on overall business success.

Consumers who spend modestly are increasingly opting to engage with brands through SMS, particularly to receive quick access to discounts and promotions. Research shows that a significant majority of lower spenders appreciate the convenience and immediacy of text communication, making it an effective tool for brands to foster customer loyalty and drive sales. Offering exclusive deals and discount codes through SMS can be an appealing incentive for these consumers, positioning brands to better serve this demographic.

Interestingly, high-end shoppers are less likely to use SMS as a communication channel, with a smaller portion engaging via text. However, this presents a unique opportunity for luxury brands to tap into a more exclusive, VIP experience through SMS. Shinola, for example, has successfully used SMS to create a premium connection with its customers, offering tailored messaging that makes them feel valued and prioritized. This approach could be especially effective for brands looking to reach a more discerning customer base.

Generational differences also play a significant role in SMS engagement. Millennials, for instance, are much more likely to interact with brands via text, with nearly half expressing interest in receiving SMS updates. Meanwhile, Gen X and Gen Z show less enthusiasm for this channel.

To capitalize on SMS’s potential, brands can use tools that automate text conversations, offering personalized product recommendations, answering customer questions, and promoting events. Integrating SMS into a broader marketing strategy, alongside traditional email updates, can help brands connect more effectively with their customers while providing a seamless, responsive experience.

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