Current Events in September 2017

If you’ve ever opened a social media account or even bought something online, you can be pretty certain that your private information and preferences have been recorded by someone. While this data is often used by digital marketers to serve individuals with targeted ads, recent findings indicate that it can be put to much more nefarious purposes.

Focusing on practices in the United Kingdom, the Guardian reports that the gambling industry often takes data from third-party companies to serve online gambling ads to low-income consumers or those who have struggled with gambling addiction. One digital marketer detailed his experience of working with one such betting company.

“Third-party data providers allowed us to target their email lists with precision. Lower-income users were among the most successfully targeted segments,” he said. “We could also combine segments, ie we could target users who are on less than £25k a year, own a credit card and have three kids, via these providers.”

Targeting consumers

The third-party companies that the marketer mentions refer to online “data houses,” which collect personal information ranging from names, addresses, and phone numbers to credit card information and insurance details. With the financial information, online gambling sites are able to focus in on consumers based on what they earn.

All of this information is often collected through channels that consumers aren’t even aware of. For example, consumers who visit raffle sites for cash prizes, gifts, and weekly giveaways often provide basic personal information to apply for drawings. The raffle company hosting the site can then turn around and sell that data based on terms and conditions that users unknowingly agreed to.

From there, the information can be resold and funneled to gambling sites who are able to target certain demographics, such as consumers from lower-earning brackets or those who have expressed interest in gambling in the past.

"No moral compass"

The practices of these gambling sites bring up some interesting ethical implications when it comes to digital marketing. One could argue that serving a targeted ad to get someone to buy a product they could be interested in is harmless, but can the same be said for serving an ad to someone who is desperate or struggled with gambling in the past?

According to some consumers, the answer is a definite no. In the Guardian report, several people say that bookmakers are purposely taking advantage of its targeted audience to promote their business.

“It just reaffirms my belief that the betting industry has no moral compass and are capable of exploiting the vulnerable in order to obtain the last pound out of them,” said Carolyn Harris, Labor MP for Swansea East in the UK.

“They are actively seeking out those who can least afford to be involved in gambling. I’m absolutely aghast that they use these hostile techniques in order to suck the life out of people. If we were to offer free cocaine to an addict, they’d find it very difficult to decline. The betting industry knows this and they are by token doing exactly the same thing.”

There probably isn't a bad time to visit California's wine country, but September is an unusually opportune time.

It's the 13th Annual California Wine Month, with special events featuring food and wine scheduled for wineries throughout the state. California is already the nation's most-visited state for food and wine and California's wineries ramp up the offerings in September to draw in even more wine and food enthusiasts.

Wine tourism is growing in popularity, and according to the Wine Marketing & Tourism Conference, it's increasingly important to the industry's bottom line. A survey by Silicon Valley Bank found 45% of wine revenue in Napa County comes from direct sales, the lion's share from tasting rooms. People who love wine also seem to like to travel, so savvy marketers have profitably put the two together.

Sonoma Wine Country Weekend

Things get started early with Sonoma Wine Country Weekend through Sunday at Sonoma State University, with a taste of the academics of wine and food. The following weekend is the Sonoma Valley Crush, where visitors get hands-on harvest experiences at 12 small wineries.

Also that weekend is the 33rd Winesong, a celebration of the wines produced by wineries from Mendocino, Sonoma, Napa, and beyond. The celebration also includes various musical groups performing jazz, classical, and blues.

California's wine-producing regions are broken down in the Far North, Inland Valleys, North Coast, Central Coast, Sierra Foothills, and Southern California. Wineries in each of the six regions plan special events throughout the month.

Wine Enthusiast Magazine has declared the Calistoga Wine Experience one of the top 10 wine destinations in the world. September 9, it will feature wines from more than 35 area wineries, as well as a chance to talk to the winemakers and take part in a wine festival experience.

September 16 brings the Lake County Wine Auction at Cache Creek Vineyard and Winery. Things get started with a tasting of food from a selection of 10 juried providers that are paired with local wines.

Not only do you get to taste wine, there's a gourmet meal in the farm-to-table spirit. The evening is capped off with an auction to raise money a wide range of causes, including organizations promoting the arts, health, and community.

Taste of Santa Barbara

Farther south, Santa Barbara wraps up the month September 29 with a four day celebration featuring wine and food at The Taste of Santa Barbara Wine Country. Visitors will get to taste library wines, fall releases, and special menu items from local restaurants.

In addition to special events, some wineries are celebrating during the entire month. The Iron Hub Winery in Plymouth will put out a spread of morning bites each business day for early-in-the-day wine tasters.

Visitors are encouraged to picnic in the oak grove and enjoy the Sierra views. According to the owners, the Iron Hub Winery overlooks the oldest documented Zinfandel vineyard in California.

And that's just a sample of the wine-related events California offers in September. Most wineries are planning some kind of tie in to encourage visitors. With 4,700 vintners and 5,900 growers, you might need help narrowing down a place to visit. This online tool may help you navigate the state.

Food is a natural complement to wine and the California Wines websites offers a number of favorite recipes, including grilled shrimp tostadas with tomato-corn salsa, guacamole, and lime; grilled baby back ribs with smoke cherry barbecue sauce and red cabbage citrus slaw; and grilled chicken salad with feta, mint, toasted pita.

Getting there

California, of course, is served large international airports, so air travel is rarely a problem. San Francisco International is the major airport serving the North Coast, Sierra Foothills, Inland Valleys, the Far North, and portions of the Central Coast.

Los Angeles International and San Diego International serve Southern California and portions of the Central Coast and Inland Valleys.

In the wake of the Great Recession, Millennial women seem to be having a particularly tough time finding jobs. Although it’s been a decade since the start of the Recession, many young women are still feeling its effects.

According to a new analysis by the Institute for Women’s Policy Research (IWPR), many young women (especially those ages 25 to 34), are experiencing unemployment at higher rates than in 2007.

"While the overall unemployment rate for American workers is now lower than it was just prior to the Great Recession, Millennial women, especially Millennial women of color, have still not fully recovered from the recession," said IWPR Senior Research Scientist Dr. Chandra Childers.

Skill development paused

The analysis found that young Black women’s unemployment rates were higher in 2016 than young White women’s unemployment rates were at their peak in 2010 (8.8 percent compared to 7.7 percent).

"These are women who were just entering the workforce or early in their careers when the recession hit, and the ensuing high unemployment paused the development of their skills and work experience,” Childers said.

A separate report, titled “The lost generation: recession graduates and labor market slack,” says Millennials in general are struggling to get jobs.

Effects longer lasting than average

"Data on youth unemployment rates show a sharp rise during and after the 2008-09 recession – both on an absolute and relative basis," wrote Spencer Hill, economist at Goldman Sachs.

Currently, Millennial unemployment rates stand at more than double the national average (12.7 percent compared to 5 percent as of September 2016, according to the Bureau of Labor Statistics).

"While youth underperformance is typical of recessions, the effects of the most recent downturn appeared larger and more long-lasting than average," Hill added.

Reasons for the trend

In addition to stalled development of job-related skills, the trend may be driven by the generation’s high expectations for the type of job they hope to land. Millennials tend to look for “dream jobs” that afford them work-life balance, with flexibility, breaks and time to focus on personal development. 

Statistics support the idea that Millennials are an overconfident bunch. But for those lacking experience, this quality may shrink the pool of potential jobs. It could also make the idea of continuing to live with mom and dad sound like a more appealing option than trudging onward with the job search.

The high price of a college education might also be making it more difficult for Millennials to enter the job market. On the heels of the 2008 economic crash, Millennials may find it more difficult than ever to scrape together the funds to obtain a college degree and find an entry point into the job market.

August is usually the month new car dealers offer incentives to make way for the new model year. But the numbers so far show consumers paid about 1% more for a new set of wheels.

Kelley Blue Book (KBB) estimates consumers paid an average of $34,648 for a new car or truck during August, up $243 from August 2016. It suggests consumers chose slightly more expensive vehicles during the month, or vehicles with a more expensive option package.

Most of the year-over-year increase came courtesy of just one company -- Chrysler Fiat. The amount consumers spent on the brand last month increased 6.6% over August 2016, helped in large part by spending on RAM trucks and Jeep SUVs.

General Motors led the increase from July to August on strong sales of its luxury brand Cadillac and GMC trucks. The average transaction price (ATP) was up 1.1% month-over-month.

Mixed average transaction prices

"August revealed mixed average transaction prices across the major manufacturers, although the industry average still managed to rise nearly 1% year-over-year," said Tim Fleming, analyst for Kelley Blue Book. "However, we should note that this is far lower than the 2 to 3 percent gains in the first half of the year.

Fleming notes that consumers spent less on full-size trucks and mid-size cars. He concludes that there are signs of pressure on new car prices that will likely lead to the first down sales year since the recession.

But there were a few automotive categories where consumers were willing to spend more last month. The ATP for minivans rose 2.6%, consumers spent 1.9% more on entry-level luxury cars, and 1.5% more on small SUVs and crossovers.

Uncertain future

While sales and spending numbers might suggest a drop off in new car sales for the year, Hurricane Harvey may prove to be the wild card. As we noted this week, an estimated 500,000 vehicles in the Houston area have been flooded, meaning most will be replaced with insurance checks.

With sagging sales before Harvey, the prospects for consumers negotiating a more attractive deal were improving. With a sudden demand for new and used cars, consumers may find they have less bargaining power power on both the new and used car lot.