CONSUMER CATCH-UP: Money issues can affect mental health, Spirit favors Frontier over JetBlue

ByMichael Finney and Simone Chavoor KGO logo
Monday, May 2, 2022
CONSUMER CATCH-UP: Money issues can affect mental health
EMBED <>More Videos

In this edition of Consumer Catch-Up, a new study shows that mental health can be affected by money trouble, Spirit Airlines favors Frontier's offer over JetBlue, and advertisers are spending more on streaming.

SAN FRANCISCO (KGO) -- 42% of adults say money impacts mental health

Money troubles may adversely affect more than just your bank account - it could impact your mental health as well.

According to a new Money and Mental Health report by Bankrate and Psych Central, 42% of respondents said that financial trouble had a negative effect on their mental health. Outcomes included "anxiety, stress, worrisome thoughts, loss of sleep and depression."

The study further showed that women (46%) are more likely to be negatively affected than men (38%). Millennials (48%) were also more widely impacted than Generation X (46%) or Gen Z (40%).

Naturally, those who earn more money reported less emotional distress than those who brought home less; 30% of people with incomes of $100,000 or more reported a negative impact, while those who earn $50,000 or less saw 48% of people reporting impacted mental health.

Spirit favors Frontier's bid over JetBlue's

Spirit Airlines' board of directors has rejected an acquisition bid from JetBlue in favor of their existing agreement to be bought by Frontier Airlines.

While JetBlue offered a more lucrative deal of $3.6 billion, Spirit said that it had concerns that antitrust regulations would hold up the deal, and instead supports Frontier's less-risky offer of $2.9 billion.

The U.S. Justice Department is currently suing JetBlue for its "alliance" with American Airlines, combining the two airlines' services in the Northeast, as being anti-competitive. In a letter to JetBlue's directors, Spirit said that it was hard to believe the Justice Department would let JetBlue go through with its American Airlines alliance and then go on to purchase Spirit - currently the country's largest discount airline.

JetBlue has said they disagree with Spirit's assessment, and are exploring the possibility of a hostile takeover bid.

Spirit said it expects the deal with Frontier to move forward in the second half of this year. Should it go through, it would make the combined Spirit and Frontier airline the fifth-largest in the U.S.

Ad spending on streaming TV growing -- but not as fast as its audience

Advertisers know how many of you are streaming shows and movies at home, and are shelling out even more money to get on your screen - but they're also missing opportunities to reach the streaming audience.

The "2021 Video Ad Spend and 2022 Outlook" report from IAB NewFronts, a media and entertainment industry group, found that "connected TV" ad spends grew 57% percent in 2021, reaching $15.2 billion. This trend is expected to continue, with a forecasted 39% additional growth and projected spend of $21.2 billion for 2022.

But despite this growth, the ad spend is not actually in line with where consumers' eyeballs are. The report notes that connected TV viewing accounts for 36% of total time spent between both linear television and connected TV in 2022, while still only making up 18% of total video ad dollars.

"While CTV leads the substantial growth of digital video ad spend, the amount of dollars currently allocated to CTV is not proportionate to the amount of viewer time spent with the channel. The time is now for brands and buyers to follow consumer attention," said Eric John, VP, IAB Media Center.

Take a look at more stories and videos by Michael Finney and 7 On Your Side.

Have a question for Michael and the 7 On Your Side team? Fill out the form HERE!

7OYS's consumer hotline is a free consumer mediation service for those in the San Francisco Bay Area. We assist individuals with consumer-related issues; we cannot assist on cases between businesses, or cases involving family law, criminal matters, landlord/tenant disputes, labor issues, or medical issues. Please review our FAQ here. As a part of our process in assisting you, it is necessary that we contact the company / agency you are writing about. If you do not wish us to contact them, please let us know right away, as it will affect our ability to work on your case. Due to the high volume of emails we receive, please allow 3-5 business days for a response.