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Microsoft rolls out new AI tool that generates instant banner ads, reports Search Engine Land

General

Jan 11, 2024

Artificial Intelligence

Microsoft is launching Retail Media Creative Studio, an AI-powered tool within its retail media platform to automate banner ad creation. This innovation aims to reduce coordination between creative and media teams, allowing for more focus on strategic activities like audience analysis.

The tool enables rapid creation of banner ads by inputting a product URL, aligning with retailer style guides for efficiency. Retailers have final approval, facilitating collaborative and quicker campaign launches.

Retail Media Creative Studio's AI algorithms optimise live banner ads based on performance metrics, eliminating the need for manual A/B testing. Microsoft VP Lynne Kjolso emphasises its role in enhancing retail personalisation and campaign efficacy.

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Meta faces another EU privacy challenge over pay for privacy consent choice, reports TechCrunch

General

Jan 11, 2024

Meta Platforms is under scrutiny for its user tracking methods in Europe. Privacy group noyb supports a complaint to the Austrian data protection authority, claiming Meta's practice of offering a paid, ad-free version of Facebook and Instagram or "consent" to tracking violates EU law.

Meta's approach, shifting to a consent basis, forces users into a dilemma: pay for privacy or consent to tracking. Critics argue this violates GDPR's genuine consent principles, as withdrawing consent is harder than giving it.

This challenge highlights a significant legal and operational issue for Meta in Europe, potentially impacting its revenue and business model if found non-compliant with GDPR.

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Peacock Enters Uncharted Waters by Streaming N.F.L. Playoff Game, reports NYT

General

Jan 11, 2024

NBCUniversal's streaming of an NFL playoff game exclusively on Peacock marks a significant step in sports broadcasting. This pioneering move, featuring the Kansas City Chiefs and Miami Dolphins, tests Peacock's ability to manage large-scale live streaming despite a smaller subscriber base than competitors.

Peacock's decision to charge $6 for viewing this playoff game, usually free on network TV, aims to draw more subscribers to the service. This approach has sparked debate over viewer access and the changing dynamics of sports broadcasting.

The successful streaming of this high-stakes NFL game is crucial for Peacock, potentially setting a new precedent for digital sports coverage and impacting its future growth and relevance in the streaming market.

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Google Trims Hundreds of Jobs as It Marshals Resources for AI, reports WSJ

General

Jan 11, 2024

Google has recently executed layoffs across various units, including the Assistant program, hardware, and internal software tools, though the full extent remains undisclosed. These layoffs align with Google's broader cost-cutting measures and restructuring, even affecting top executives like Fitbit's co-founders.

Under CEO Sundar Pichai's leadership, Google is redirecting resources towards artificial intelligence, paralleling Amazon's recent workforce reductions in its entertainment and streaming divisions.

Following its largest layoff of 12,000 employees last year, Google continues to streamline operations, focusing on efficiency. This strategic shift involves flattening team structures to accelerate decision-making, aligning with the company's evolving priorities and a leaner workforce structure.

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UK to make Big Tech give rivals access to data under new plans, reports Reuters

General

Jan 11, 2024

The UK's Competition and Markets Authority (CMA) is set to implement new rules targeting major tech companies like Meta, Google, Amazon, and Apple. This move, part of the CMA's enhanced oversight, aims to foster innovation and protect competition.

The CMA's proposed regulations focus on promoting disruptive technologies and fair market practices. These guidelines stress transparency and fair competition in digital markets.

Soon, the CMA's Digital Markets Unit will enforce measures to prevent Big Tech from favouring their products, require data sharing with rivals, and increase algorithmic transparency. These actions will kick off with multiple investigations under the new regime.

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EU court adviser sides with Google and Amazon in Italian rule spat, reports Reuters

General

Jan 11, 2024

Google, Amazon, and Airbnb, based in Ireland and Luxembourg, are not required to follow an Italian rule mandating online service providers to register and disclose information. This rule, which entails penalties for non-compliance, was challenged by these companies under EU law, stating obligations apply only in the country of establishment.

An Italian court, addressing the dispute, sought advice from the Court of Justice of the European Union (CJEU). CJEU Advocate General recommended supporting the companies, asserting that member states can't enforce such obligations on firms based in other EU states.

The court, which often follows these recommendations, will issue a ruling in the upcoming months.

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Italy regulator tightens rules on influencers after Ferragni scandal, reports Reuters

General

Jan 11, 2024

Influencer Marketing

Italy's AGCOM has introduced strict transparency rules for social media influencers, initially targeting those with over 1 million followers and collaborating with Italian brands. This follows a fine imposed on influencer Chiara Ferragni for unclear charity promotion. Influencers must clearly label sponsored content to avoid hefty fines.

These rules mirror France's recent laws for influencer transparency and product promotion limitations. Influencers in Italy must also adhere to media codes of conduct, promoting unbiased, factual, and non-discriminatory communication.

AGCOM focuses on major influencers but anticipates smaller influencers to adopt similar standards. The aim is to ensure clear differentiation between organic and paid content online.

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Google Suffers Setback in Fight Over $2.6 Billion EU Fine, reports Bloomberg

General

Jan 11, 2024

The EU's top court advisor recommended upholding Google's €2.4 billion fine for unfairly favoring its shopping services in search results. This opinion, often a predictor of the court's final decision, supports the 2017 ruling for Google's anti-competitive practices.

This fine is part of the EU's broader actions against Google, totalling €8.3 billion for various market abuses. The company must modify how it displays shopping search results to provide fair competition.

Google awaits the court's final verdict, focusing on compliance and constructive engagement with the European Commission. Meanwhile, the Commission investigates Google's dominance in digital advertising, potentially impacting its business structure.

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Washington State Plans to Sue to Block Kroger-Albertsons Deal, reports Bloomberg

M&A

Jan 11, 2024

The Washington state attorney general is set to file a lawsuit to block the merger between Kroger Co. and Albertsons Cos., possibly as early as Thursday afternoon. This legal action, anticipated to be filed in state court, aims to challenge the proposed consolidation of these major grocery retailers.

This lawsuit is independent of investigations by the US Federal Trade Commission and other states examining the merger. The FTC, which is also scrutinising the deal, would likely pursue any legal action in federal court if necessary.

The Washington attorney general's office has not yet responded to requests for comments on this developing situation.

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Netflix's Ad Tier Hits 23 Million Monthly Active Users, Adds Pause Ads, reports AdWeek

General

Jan 11, 2024

Netflix, at CES, announced its ad tier reaches 23 million monthly users globally, growing from 15 million in November. The platform plans to introduce pause ads globally, displayed after 5 idle seconds, enhancing its advertising capabilities. This expansion is a significant step in addressing scale issues previously noted by buyers.

The company is adding new ad formats, including non-intrusive pause ads and innovative Binge ads and QR codes. These additions are part of Netflix's strategy to diversify and strengthen its advertising offerings.

These developments occur as the industry shifts towards ad-supported tiers. Netflix raised prices for ad-free plans, highlighting the increasing focus on mixed revenue models combining subscription and advertising.

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TikTok Shop sellers say its AI-powered crackdowns are hamstringing small businesses as the moderation system doles out bogus violations, reports Insider

General

Jan 11, 2024

Artificial Intelligence

TikTok Shop's intensified oversight is leading to a surge in violation claims against sellers for incorrect product categorisation and pricing. Small businesses, like a fishing content creator, face challenges with frequent product freezes and appeals.

The combination of automated and human moderation for policy enforcement is proving burdensome for sellers, often leading to unjustified violation claims. This rigorous moderation is particularly taxing for small businesses, who struggle to maintain operations amidst these disruptions.

TikTok's strict enforcement on its Shop platform is pressuring small business sellers with constant violation claims, complicating their participation in the marketplace. This situation is challenging for these essential early adopters as they navigate an increasingly complex selling environment.

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Disney Makes Its Case For Bigger Ad Budgets At CES, reports AdExchanger

General

Jan 11, 2024

At CES, Disney revealed its integrated ad campaigns for Disney+ and Hulu, focusing on ease of buying for advertisers. Hulu content on Disney+ is garnering increasing engagement, with programmatic sales and clean room integrations streamlining the ad buying process.

Disney is enhancing ad accessibility through multiple DSP integrations and plans for self-serve options on Disney+ and ESPN+. Clean room integrations with AWS and Google Cloud allow better audience targeting through data matching.

Disney also introduced new measurement tools for tracking ad recall and business outcomes, and is beta testing shoppable ad formats. These initiatives are part of Disney's effort to attract larger ad budgets.

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Media executives urge Congress to enact legislation to prevent AI models from training on stolen goods, reports CNN

General

Jan 10, 2024

Artificial Intelligence

Media executives are requesting US legislation to compel AI developers, like OpenAI, to pay for using their content. This follows significant job cuts in the media sector, exacerbated by AI technologies using content without authorisation or compensation.

Condé Nast CEO Roger Lynch criticises AI models for training on "stolen" content, with opt-outs being largely ineffective. The issue extends beyond news media, as highlighted by lawsuits from various authors and personalities against AI firms for unauthorised content use.

The proposed solution involves AI companies licensing content to foster a sustainable ecosystem. This approach aims to maintain the integrity of quality journalism while allowing AI technology to flourish.

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OpenAI In Talks With CNN, Fox and Time to License Content, reports Bloomberg

General

Jan 10, 2024

Artificial Intelligence

OpenAI, creator of ChatGPT, is discussing licensing agreements with CNN, Fox Corp., and Time to utilise their content for AI product development. These negotiations aim to enhance ChatGPT's accuracy and relevance, as OpenAI faces copyright infringement allegations.

The talks include multimedia content from CNN and Fox, with Time's CEO expressing optimism about reaching a fair deal. This initiative is crucial for OpenAI's model training and product enhancement.

OpenAI is also engaging with other media companies and the News/Media Alliance, exploring potential partnerships. While some publishers show interest, others like The Washington Post remain cautious. Publishers are focused on fair compensation and the legal implications of AI content use.

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WPP Is Said to Weigh Options for 40% Stake in Bain’s Kantar, reports Bloomberg

M&A

Jan 10, 2024

WPP Plc, a British advertising giant, is contemplating selling its 40% stake in Kantar, a market-research company, to boost liquidity and address its declining share value. The potential sale, advised by an external consultant, could value Kantar between $3 to $4 billion, despite its $4 billion debt.

Options include selling the stake to Bain Capital, Kantar's majority owner, or considering an IPO. Bain is also looking to sell Kantar Media, potentially worth £1 billion.

WPP's decision-making is in early stages, with the possibility of retaining the stake. Amidst a sluggish market, WPP's move aims to streamline operations and reduce debt following a strategy shift under CEO Mark Read.

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Turkish competition board to fine Meta $160,000 per day for non-compliance, reports Reuters

General

Jan 10, 2024

Turkey's competition authority imposed a daily fine of 4.8 million lira ($160,000) on Meta Platforms Inc. for inadequate compliance documentation following a 2022 investigation into the online video advertising market. Meta was previously required to submit details on measures to cease legal violations and restore market competition.

The authority deemed Meta's submitted compliance measures insufficient, triggering the daily fine from December 12 until Meta presents a satisfactory compliance solution. Despite disagreement with the authority's decision, Meta expressed willingness to cooperate constructively to resolve the issue promptly.

This action follows a 2022 fine of 346.72 million lira ($11.6 million) levied against Meta for competition law breaches.

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Disney's Clean Room Brand Activations Grew 573% in 2023, reports AdWeek

General

Jan 10, 2024

Disney's ad-tech venture has gained momentum with its clean room capabilities, attracting over 140 customers and experiencing a 570% increase in brand activation in 2023.

This technology allows privacy-compliant matching of first-party data for advertising purposes. Disney is expanding this initiative by integrating Google Cloud and Amazon Web Services, enhancing accessibility with the user-friendly Disney Portal, developed with Habu.

The clean room technology has proven effective beyond cookieless solutions, facilitating precise data targeting and programmatic television buying. However, its utility is most impactful for brands with substantial data, suggesting a growth limit despite its broadened accessibility and advanced features.

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Amazon Laying off Hundreds in Prime Video, Studios in Latest Cuts, reports Bloomberg

General

Jan 10, 2024

Amazon is reducing its workforce in the Prime Video and studios division, including the MGM unit, to refocus on impactful content and product initiatives. This move by division head Mike Hopkins is part of a broader strategy to enhance its entertainment offerings.

The industry-wide trend of cutting costs in video streaming has affected major players like Walt Disney, Paramount Global, and Warner Bros. Discovery, with a predicted decrease in the number of scripted shows.

As part of the largest layoffs in its history, Amazon's job cuts in Prime Video and studios align with the company's strategic shift. Affected employees in the Americas will be notified first, with other regions soon to follow.

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Skydance Backers Explore All-Cash Deal to Gain Control of Paramount, reports WSJ

M&A

Jan 10, 2024

Skydance Media CEO David Ellison, supported by his father Larry Ellison and other investors, is in early talks for an all-cash bid to acquire National Amusements, parent company of Paramount Global. This move could lead to a subsequent merger of Paramount with Skydance, creating a significant shift in Hollywood's landscape.

Shari Redstone, controlling National Amusements, could lose her media empire's control if the deal succeeds. The acquisition would encompass Paramount’s extensive media assets, including major TV networks and theaters.

The potential merger, amid industry challenges like declining cable viewership and streaming economics, requires careful valuation and shareholder consensus, reflecting the changing dynamics of the entertainment industry.

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Google responds to concerns over its post-cookie ad tech, reports AdAge

General

Jan 10, 2024

Cookie Deprecation

Google is advancing its Privacy Sandbox initiative, a post-cookie ad tech ecosystem, addressing criticisms about its complexity and adoption. Victor Wong, Google's Senior Director, reassured in a blog post that despite challenges, this initiative is crucial for online advertising's future.

Critics, including The Trade Desk, question Privacy Sandbox's effectiveness in ad targeting without traditional cookies. Google's solution uses aggregated data to enhance privacy, contrasting with The Trade Desk's consent-based Universal ID 2.0.

Google remains committed to fully transitioning to Privacy Sandbox by year-end, emphasising the industry's need to adapt to privacy-preserving technologies despite the complexities and regulatory hurdles involved in this major shift.

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Havas Media relaunches Converged as solution to life after cookies, reports The Media Leader

General

Jan 10, 2024

Cookie Deprecation

Havas Media Network UK's AI-powered Converged platform offers transparent, cross-platform media planning for the post-cookie era. Its revamped design provides a holistic view from planning to activation, with trials showing an average 45% improvement in campaign performance.

Converged bypasses the need for new tech providers or ID resolution, aligning with data privacy standards. It integrates over 35,000 insights from diverse data sources, enhancing real-time digital media decision-making.

The platform responds to the challenges of cookie deprecation, enabling precise audience targeting and insight. Converged's approach emphasises consumer privacy and consent, providing versatile, performance-driven solutions across different industries.

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FTC bans X-Mode from selling phone location data, and orders firm to delete collected data, reports TechCrunch

General

Jan 9, 2024

The FTC has banned X-Mode Social, now Outlogic, from selling sensitive location data and requires deletion of all such data unless users consent. X-Mode, scrutinized for selling data to the U.S. government and military, also faced app store sanctions.

FTC's allegations highlight X-Mode's sale of data tracking individuals at sensitive locations, with inadequate user data safeguards. X-Mode's apps, 'Drunk Mode' and 'Walk Against Humanity', failed to inform users properly about data usage.

The FTC mandates X-Mode implement strict privacy measures and user consent options. Outlogic, disputing FTC's claims, anticipates minimal impact on their operations. Senator Ron Wyden commends the FTC's decisive action against location data exploitation.

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Amazon’s Twitch to Cut 500 Employees, About 35% of Staff, reports Bloomberg

General

Jan 9, 2024

Twitch, an Amazon subsidiary, is set to reduce its workforce by 35%, approximately 500 jobs, amid financial concerns and executive departures. Despite leveraging Amazon's infrastructure, the livestreaming site struggles with high operational costs for streaming 1.8 billion hours of content monthly.

CEO Dan Clancy's leadership since March 2023 has focused on addressing Twitch's unprofitability and strained creator relations. However, the company's decision to withdraw from costly South Korean operations highlights ongoing financial challenges.

Twitch's previous attempts at cost-cutting, including two rounds of layoffs affecting over 400 jobs, mirror Amazon's larger corporate strategy, which involved the largest job reduction in its history, impacting various sectors including the music division.

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Musk's X inks content deals with former CNN host Lemon and Tulsi Gabbard, reports Reuters

General

Jan 9, 2024

X, formerly Twitter, has announced content partnerships with Don Lemon, Tulsi Gabbard, and Jim Rome, aiming to enhance video content and attract advertisers. The platform, under Elon Musk, seeks to recover from advertiser loss following controversies since 2022.

Don Lemon will present a new 30-minute show thrice weekly, focusing on diverse topics, signaling his comeback after leaving CNN. Gabbard is set to produce short films highlighting overlooked voices.

Jim Rome will host a new daily show on X, starting post-Super Bowl. These initiatives are part of X's transition to a "video-first platform," following a similar partnership with former Fox News host Tucker Carlson.

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Walmart powers up generative AI and AR for new shopping features, reports Axios

General

Jan 9, 2024

Artificial Intelligence

Walmart is embracing generative AI and augmented reality in its latest tech ventures, as announced at CES. The retail giant's iOS app now features AI-powered search, enabling customers to find products for activities like "football watch parties" more efficiently. They're also developing AI for their InHome delivery service to automatically reorder essential household items.

Additionally, Walmart introduced an augmented reality tool for clothing purchases, allowing customer feedback through mobile sharing apps. They are expanding their drone delivery in Dallas-Fort Worth using Wing and Zipline drones.

These innovations reflect Walmart's strategy to enhance shopping experiences and efficiency, showcasing their technological advancements to attract talent and investor interest.

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Instagram and Facebook Will Stop Treating Teens Like Adults, reports WSJ

General

Jan 9, 2024

Advertising To Children

Meta Platforms is set to introduce stringent content restrictions on teen accounts for Instagram and Facebook, aiming to block exposure to harmful material. This response to legal challenges focuses on shielding users under 18 from content about self-harm, violence, and eating disorders.

The new policy automatically places teen accounts in the most restrictive settings, preventing access to and search for sensitive content. Modifications extend to content shared by peers, filtering out harmful posts from view.

Meta's update also directs teens searching for sensitive topics to expert resources, and promotes privacy-enhancing settings on Instagram to limit interactions with unfamiliar accounts, bolstering online safety for young users.

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X Talks Brand Safety and Expands IAS Partnership For Vertical Video Ad Placement, reports MediaPost

General

Jan 9, 2024

Elon Musk's platform X is boosting brand safety by collaborating with Integral Ad Science (IAS) from February, offering U.S. advertisers enhanced control over ad placements and ensuring brand safety alignment.

X, facing a significant decline in advertiser confidence and valuation under Musk's leadership, is shifting to a video-first approach. The platform reports a rise in video views, particularly vertical videos, which purportedly attract significant daily viewership, though these figures are unconfirmed.

To address past content moderation issues, X is expanding its brand safety team, aiming to regain advertiser trust by improving content moderation efforts in Q1, following significant downsizing in 2022.

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Second-screening boosts TV ad response rates, reports The Media Leader

General

Jan 9, 2024

A study by ViewersLogic revealed that second-screening, using another device while watching TV, boosts TV ad response rates by 59% compared to non-second-screeners. This suggests multitasking may lower mental defenses against ads, challenging the belief that direct gaze equates to higher effectiveness.

The study noted an exception in the 18-35 age group, where non-second-screeners had a slightly higher response rate. This implies younger audiences, accustomed to multitasking with media, might respond differently to ads.

Rich Kirk of EssenceMediacom highlighted the importance of understanding second-screening in advertising. While gaze is a useful metric, it doesn’t fully capture ad impact, and second-screening can be beneficial for ad effectiveness.

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One-fifth of global news publishers consider cost cuts as traffic from social media drops, reports The Media Leader

General

Jan 9, 2024

News Publishing

In 2023, Facebook's reduced support for news led to a 48% drop in traffic to news sites, while X/Twitter saw a 27% decline following Elon Musk's changes, and Instagram traffic fell by 10%. The Reuters Institute's report indicates that 63% of digital news leaders are concerned about this decline, prompting 77% to invest more in direct channels.

Publishers are exploring alternative social platforms like WhatsApp, Instagram, TikTok, and LinkedIn to boost engagement. In response to changing trends, they're focusing more on video, newsletters, and podcasts.

The industry faces a shift towards diverse content formats and platforms, moving away from traditional reliance on social media traffic.

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Fox Corp. launches blockchain platform to negotiate with AI firms, reports Axios

General

Jan 9, 2024

Artificial Intelligence

Fox Corp. has launched Verify, a blockchain platform for tracking media content usage online. Verify aims to facilitate licensing deals for Fox's vast intellectual property, covering Fox News, Sports, and Entertainment, and is open to collaborations with other media companies.

The Verify protocol, developed with Polygon Labs, creates a cryptographically signed database to validate content ownership. It allows media companies to register and verify their content, granting usage rights to AI platforms for training large language models.

Having beta-launched in August, Verify has registered over 80,000 Fox Corp. content pieces. While its broader adoption is uncertain, Fox Corp. seeks to leverage Verify in negotiations with AI firms, with commercialisation details still in development.

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Ad market finally begins to stabilize, reports Axios

General

Jan 9, 2024

In 2024, the global ad market is expected to grow by 5.3%, a slight decrease from 2023's 5.8% growth. North America's ad market growth, excluding political advertising, is projected at 4.2%. Cyclical events like elections and the Olympics will influence ad spending fluctuations.

Digital advertising, now 70% of global ad revenue, is transitioning to slower growth. The shift to digital maturity and regulatory challenges are expected to reduce "pure play" digital advertising's growth to single-digit percentages annually.

Traditional media advertising is likely to decline, with digital alternatives not fully compensating. Even with streaming platforms' ad expansions, overall TV ad spending is not expected to significantly increase.

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Instacart Lets Brands Target Ads Off-Platform Through Google Shopping Campaigns, reports AdWeek

General

Jan 9, 2024

Instacart partners with Google Shopping, allowing advertisers to target ads using Instacart's shopper data. This expands Instacart’s ad reach beyond its own platform, following CEO Fidji Simo’s strategy for off-platform targeting. Pilot campaigns show promising results, attracting new brand customers.

The collaboration marks a significant leap in Instacart's advertising, with third-quarter ad revenues contributing substantially to its total income. This partnership showcases Instacart's growing influence in the retail media landscape and its evolving digital advertising capabilities.

Instacart's integration with Google enhances ad precision and audience reach, although it's limited to Instacart users. This move positions Instacart as an influential player in digital advertising, navigating its unique role in media planning.

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iHeartMedia and Magnite Unify Access to Broadcast and Digital Audio, Providing Advertisers with a Direct Path to Premium Inventory

General

Jan 9, 2024

Magnite and iHeartMedia have launched a unique marketplace, merging iHeartMedia's broadcast, streaming radio, and podcasts with omnichannel programmatic media buys. Utilising Magnite's SpringServe ad technology, this marketplace allows data-driven, real-time bidding across iHeartMedia's extensive audio inventory.

iHeartMedia's reach is extensive, with 90% of U.S. adults accessing its broadcast stations monthly, and an additional 57 million through streaming and podcasts. Its presence spans 860 broadcast stations, the iHeartRadio digital platform, and a leading position in global podcast publishing.

This collaboration enhances programmatic advertising in the audio sector, enabling advertisers to target audiences effectively using real-time data, thus improving campaign results and offering a consolidated, high-quality audio inventory.

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Yahoo's ID Testing Lets Advertisers Compare Campaigns Without Cookies, reports AdWeek

General

Jan 9, 2024

Cookie Deprecation

Yahoo is introducing testing capabilities to help advertisers transition from third-party cookies. This feature, part of Yahoo’s Identity Solutions, allows comparisons between campaigns with and without cookies. It aims to ensure advertisers maintain reach and scale in a cookieless world.

The testing, initially trialed with partners like Klick Health, is now available for all Yahoo DSP users. It aids in differentiating addressable from non-addressable inventory, crucial for programmatic advertising in the evolving digital landscape.

Although Yahoo's tests show comparable reach and cost between cookie-based and cookieless campaigns, concerns about targeting accuracy and brand safety persist, highlighting the ongoing challenge in adapting to a cookieless advertising environment.

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Microsoft’s OpenAI Ties Face Potential EU Merger Probe, reports Bloomberg

M&A

Jan 9, 2024

Microsoft's $13 billion investment in OpenAI faces potential EU investigation over competition concerns. The EU's focus is on ensuring competitive AI markets, prompted by Microsoft's rapid integration of OpenAI's technology into its products.

The EU's probe into Microsoft and OpenAI's relationship, particularly after CEO Sam Altman's brief ousting, raises questions about their intertwined operations. This scrutiny reflects concerns about Microsoft's influence in the AI sector.

The EU's inquiry into generative AI's competitive impact invites industry feedback. This move underscores the growing significance of AI in market dynamics, with Microsoft's cloud computing and AI investments at the forefront.

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Amazon Attacks EU Privacy Watchdog It Claims Was Out to Get It, reports Bloomberg

General

Jan 9, 2024

Amazon.com Inc. is contesting a €746 million EU privacy fine imposed in 2021, arguing that Luxembourg's data watchdog prioritized punishment over data protection. Amazon asserts it wasn’t given an opportunity to adjust its data practices before the GDPR-based penalty, stemming from a 2018 complaint about processing user data without consent for ads.

The Luxembourg data authority rejects Amazon's criticism, maintaining that GDPR requirements are explicit and firms must proactively comply.

Amazon's extensive data collection, including customer and merchant data, has faced increasing scrutiny. The company recently resolved an EU probe over alleged misuse of rivals' sales data to benefit its own products.

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Google faces $1.67 bln damages demand at AI-related patent trial, reports Reuters

General

Jan 9, 2024

Artificial Intelligence

Alphabet's Google faces a patent infringement trial in Boston, accused by Singular Computing of using its patented technology in AI-powered services like Google Search and Gmail. Singular Computing, led by Joseph Bates, seeks up to $7 billion in damages, potentially setting a record for the largest patent infringement award in the U.S.

Google denies these allegations, stating its Tensor Processing Units, essential for AI capabilities, were independently developed. The company challenges the validity of Singular's patents.

The trial, expected to last two to three weeks, scrutinises whether Google's AI processors, released between 2016 and 2018, infringe on Bates' patents. Simultaneously, an appeals court will review the validity of Singular's patents in a separate case.

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GM eyes significant agency changes, including possibly in-sourcing more work, reports AdAge

General

Jan 9, 2024

General Motors (GM) is reviewing its agency partnerships, potentially bringing some operations in-house, as it seeks cost savings under new marketing leadership. This evaluation, advised by MediaLink and SnapPoint, encompasses CRM and creative agencies, but not regional or local dealer marketing.

Norm de Greve, GM's new Global Senior VP and CMO, is driving this transformation with Shenan Reed, the incoming Global Chief Media Officer. Their goal is to modernise GM's customer engagement strategies.

Facing board pressure for cost efficiency, GM, one of the U.S.'s top ad spenders, is realigning its marketing efforts, notably skipping this year's Super Bowl ads, reflecting a broader shift in focus towards electric vehicles amidst changing market dynamics.

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Ofcom poaches Big Tech staff in push to enforce new internet curbs, reports FT

General

Jan 9, 2024

Leadership Transitions

Ofcom, the UK's media regulator, has bolstered its team with nearly 450 new hires, including experts from big tech companies, in response to the Online Safety Act.

This act mandates strict oversight of digital platforms to control illegal content and protect minors. Under the new law, Ofcom will implement robust measures, including significant fines and criminal charges, to ensure compliance and reduce harmful online material.

Ofcom's expanded team, featuring veterans from the tech sector, prepares to confront legal challenges from powerful tech firms. The regulator is focusing on rigorous supervision of online platforms to ensure adherence to safety standards, particularly for protecting children's online experiences.

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Amazon insiders are bracing for changes at Freevee now that Prime Video is adding ads, reports Insider

General

Jan 8, 2024

Amazon's Freevee faces uncertainty as Prime Video introduces ads. Internal changes suggest a possible integration, with Freevee personnel assuming Prime Video responsibilities. Despite a rebrand and content increase, Freevee struggles with profitability and brand distinction from Prime Video.

Questions arise about Freevee's purpose alongside ad-supported Prime Video. The overlap creates doubts about Freevee's standalone viability, with internal documents revealing ongoing brand identity challenges between the two services.

Freevee's future remains undetermined, potentially shifting towards licensed content or supporting Prime Video. Executives are tasked with aligning Freevee within Amazon's advertising strategy, balancing affordability and audience accessibility between the two platforms. Freevee CPMs sit between $13 and $24, while Prime Video is at or above $30.

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Google is allowing select sites to delay phase out of third-party cookies, reports Search Engine Land

General

Jan 8, 2024

Cookie Deprecation

Google has launched a third-party cookie deprecation trial, extending the transition period for websites until December 27, 2024. This move allows additional time for sites to adapt to the elimination of third-party cookies in Chrome, initially planned for Q3 2024.

Eligible websites can participate by using JavaScript for unique access tokens, enabling third-party cookies temporarily. The trial targets services using third-party cookies, excluding those related to advertising. Registration for the trial requires activation by April 1, 2024.

Google reviews trial applications, prioritising embeds and services directly impacting users. First-party sites are advised to independently adjust, with the trial focusing on assisting third-party embeds and services.

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TikTok launches new ad performance measurement tools, reports Search Engine Land

General

Jan 8, 2024

TikTok introduces two advanced ad measurement tools. Cross-Channel Partners evaluates ad performance across various platforms, enhancing understanding of their overall impact and customer journey. It utilises multi-touch attribution and post-purchase surveys, offering deeper insights into effective marketing channels.

Lift Partners focuses on measuring ad effectiveness in areas like brand lift, sales, store visits, and media viewership. This tool comprehensively gauges the influence of TikTok ads on various business metrics, aiding in strategic campaign assessments.

These tools aim to provide detailed insights into TikTok campaign effectiveness, helping marketers make informed advertising decisions. Accessible via TikTok Marketing Partners, they reveal consumer behaviour and campaign impact beyond traditional attribution models.

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Channel 4 plans cuts as it seeks to move investment to digital, reports The Media Leader

General

Jan 8, 2024

Channel 4 is set to cut around 200 jobs due to a downturn in the TV advertising market. This move, the largest layoff since the 2008 recession, comes after consecutive surpluses since 2020. The broadcaster heavily relies on linear ad revenue, making it vulnerable amidst market challenges.

To adapt, Channel 4 is shifting focus towards digital, aiming to diversify its revenue beyond linear advertising. This strategic pivot is crucial for competing in an industry increasingly dominated by digital platforms and fluctuating ad markets.

The changes have impacted independent producers due to reduced commissioning. Channel 4's digital transition seeks to ensure long-term relevance and financial stability, balancing traditional TV strengths with emerging digital opportunities.

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YouTube cracks down on AI content that realistically simulates deceased children or victims of crimes, reports TechCrunch

General

Jan 8, 2024

Artificial Intelligence

YouTube is tightening its harassment policies to ban content using AI to simulate deceased minors or victims of violence, starting January 16.

The move addresses concerns over disturbing uses of AI in true crime content, where creators have given AI-generated childlike voices to narrate the deaths of young victims like James Bulger and Madeleine McCann.

Violators of these policies will face repercussions, including video removals and channel bans after three strikes. YouTube emphasises responsible AI use, requiring disclosure of altered content and threatening penalties for non-compliance. This policy mirrors TikTok's recent guidelines mandating creators to label synthetic media, underscoring a growing trend in content regulation.

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Havas Media Announces New Leadership Roles To Drive Growth And Transformation

General

Jan 8, 2024

Leadership Transitions

Havas Media Network (HMN) announces organisational changes to accelerate business transformation.

Jorge Irizar, Global Chief Operating Officer, will focus on global growth of HMN's specialty offerings and tech stack, Converged. Greg Walsh is appointed as Global Chief Business Transformation Officer, tasked with driving operational excellence, overseeing investments, and leading transformation initiatives, including mergers and acquisitions.

Greg James steps in as the new CEO of HMN North America, bringing his global experience to enhance client experiences, data-led product advancement, and talent development. CEO Peter Mears emphasises these appointments as pivotal for HMN's continued evolution, aligning with modern consumer trends and fostering growth in 2024 and beyond.

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Impossible to create AI tools like ChatGPT without copyrighted material, OpenAI says, reports The Guardian

General

Jan 8, 2024

Artificial Intelligence

OpenAI acknowledges the necessity of copyrighted material for training advanced AI models like ChatGPT. Their submission to the House of Lords emphasizes that excluding such material would significantly impair AI development, as it forms a substantial part of human expression online.

The New York Times and others have sued OpenAI over alleged copyright infringement, sparking debate on the legality and ethics of using copyrighted content in AI training. OpenAI defends its practices under the 'fair use' doctrine, while critics argue for creators' rights.

OpenAI supports independent safety evaluations, advocating third-party 'red-teaming' to ensure robustness and security. Their collaboration with governments on safety testing demonstrates a commitment to responsible AI development.

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Prime Video Ad Tier CPMs Far More Competitive Than Netflix's at Launch, reports AdWeek

General

Jan 8, 2024

Amazon's Prime Video is launching an ad-supported tier on January 29 with competitive ad prices, aiming for a large reach by automatically enrolling its over 200 million Prime subscribers. The ad tier, priced in the mid-to-low $30 range per thousand viewers, is cheaper than Netflix and HBO Max's initial offerings.

The ad-supported version will include third-party verification and demographic targeting, with plans for more advanced Amazon data-driven targeting. Initially, ads will be basic formats, but exclusive sponsorships of premium content are available.

Despite the attractive pricing and extensive reach, skepticism remains about meeting the ambitious subscriber targets, especially with the option for ad-free viewing at an additional cost.

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Amazon turns to AI to help customers find clothes that fit when shopping online, reports TechCrunch

General

Jan 8, 2024

Artificial Intelligence

Amazon employs AI to revolutionise online apparel shopping, addressing the high return rate of 24.4%. The AI-powered features include personalised size recommendations using deep learning, considering brand sizes, customer reviews, and personal preferences.

"Fit Review Highlights" summarise customer feedback on apparel fit from reviews, using AI to provide easy-to-read insights. Additionally, Amazon has enhanced size charts with AI, standardising sizes for accuracy.

Sellers benefit from the "Fit Insights" tool, offering insights into customer fit preferences and guiding manufacturing decisions. These AI integrations demonstrate Amazon's commitment to improving the online shopping experience, extending beyond apparel to other consumer products.

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TikTok Quietly Curtails Data Tool Used by Critics, reports NYT

General

Jan 8, 2024

TikTok has limited access to its Creative Center tool, which tracks popular hashtags, after it was used to analyse content trends, particularly regarding geopolitics and the Israel-Hamas war. The tool, initially for advertisers, offered data on hashtag popularity and audience demographics.

Critics used the Creative Center to challenge TikTok's moderation policies and allege Beijing's influence on the app's content. ByteDance-owned TikTok responded by removing the search function and focusing on top industry-specific hashtags.

The change reflects TikTok's struggles with content scrutiny, particularly in the US, where there's debate over potential Beijing influence and calls for tighter regulation or a possible sale of TikTok to an American firm.

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OpenAI Claims New York Times Isn’t Telling the Full Story in Suit, reports Bloomberg

General

Jan 8, 2024

Artificial Intelligence

OpenAI has countered the New York Times' lawsuit, suggesting the newspaper's claims don't fully capture the situation.

The lawsuit alleges OpenAI and Microsoft used copyrighted Times content to train ChatGPT, citing examples of verbatim text reproduction. OpenAI disputes this, describing such occurrences as uncommon bugs and implying that the Times might have selectively presented examples.

Generative AI, like ChatGPT, is trained on extensive digital texts, a standard practice in AI research. This method, however, has recently drawn criticism regarding compensation for original content creators. OpenAI acknowledges occasional text memorisation as a learning issue, continually working to reduce it. The New York Times has not yet commented on these claims.

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Instacart Expands In-Store Shopping Cart Business to Include Ads, reports Bloomberg

General

Jan 8, 2024

Instacart is set to launch ad-enabled smart shopping carts in Bristol Farms stores in Southern California, expanding its ad business beyond grocery delivery. The carts, which feature self-checkout and sensors, will display interactive ads, starting a broader rollout soon.

Instacart's ad division, constituting 30% of its revenue, aims to complement its slowing online delivery service. The move into in-store technology, with Caper Carts already in Kroger and ShopRite, targets sustained physical store shopping popularity.

CEO Fidji Simo emphasises Instacart's strategy to support retailers with technology, positioning the company as an ally rather than a competitor in the retail sector. This approach aims to enhance both online and in-store customer spending.

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NBCU will use AI to automate streaming and linear TV ad buying, reports AdAge

General

Jan 8, 2024

Artificial Intelligence

NBCUniversal introduces 'One Platform Total Audience', an AI-driven tool for automated ad buying across linear and streaming TV. It allows advertisers to target audiences across NBCU's portfolio, streamlining the media planning process.

The AI technology in One Platform Total Audience analyses NBCU's content, providing analytics for optimal ad placement based on target audiences. It continuously adapts to new content, ensuring alignment with clients' advertising goals.

Mark Marshall, NBCU's chairman of global advertising, emphasises the platform's shift from traditional Nielsen-based planning to a comprehensive, audience-focused approach. This innovation responds to the fragmented TV landscape, allowing for more targeted and efficient ad placements.

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Samba TV to launch Nielsen-rival panel with HyphaMetrics, reports AdAge

General

Jan 8, 2024

Samba TV and HyphaMetrics have partnered to launch a cross-media panel integrating Samba's data with HyphaMetrics' technology, aiming to provide comprehensive viewership measurement across devices. This initiative, starting with a 5,000-person panel, seeks to offer a robust alternative to Nielsen’s traditional approach, focusing on diverse media consumption.

This collaboration combines Samba TV's extensive household dataset with HyphaMetrics' advanced measurement capabilities. It addresses gaps in understanding viewership, particularly in streaming and non-TV households, emphasizing accurate media consumption insights.

The partnership signifies a progressive shift in audience measurement, leveraging technology to offer deeper insights into evolving viewing habits, benefiting stakeholders across the media landscape.

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Triton Digital and Amazon Publisher Services Team Up On Interactive Audio Ads, reports AdExchanger

General

Jan 8, 2024

Audio Advertising

Triton Digital, an iHeartMedia company, collaborates with Amazon Publisher Services to bring interactive audio ads to streaming platforms. Publishers can now include Alexa-enabled ads that facilitate actions like adding products to shopping carts or receiving more information. This marks Triton Digital's first venture into voice-activated advertising.

Interactive audio ads, already available on Amazon Music, are extended to third-party publishers. These ads aim to streamline the user experience by allowing simple voice commands with Alexa, enhancing ad engagement and generating user intent data for targeted advertising.

Despite the challenges facing Alexa, such as privacy concerns and profitability, Triton Digital expects high publisher uptake due to the potential for increased revenue and improved ad experiences.

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Magna Finds Skippable Ads Engage, Forced Views Hinder, reports MediaPost

General

Jan 8, 2024

Magna, part of IPG Mediabrands, is set to release a study, sponsored by TikTok, suggesting that skippable ads in mobile video apps are more effective than non-skippable ads in on-demand TV apps. The study claims skippable ads on platforms like TikTok enhance engagement and brand favourability, needing only a quarter of the viewing time compared to forced-view ads.

Jorge Ruiz from TikTok and Kara Manatt from Magna highlight that skippable ads, offering users control over their ad experiences, result in better performance and a more lasting impression.

The study, involving 12,655 individuals across six countries, will be presented at CES.

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EU urges Big Tech to promote opposition media in Belarus, reports FT

General

Jan 8, 2024

News Publishing

The European Commission is urging tech giants like Google to promote Belarusian opposition media over pro-regime content in search results. Belarusian journalists claim search algorithms currently favour government-backed media, limiting the reach of critical content against Alexander Lukashenko's regime.

Commission Vice-President Věra Jourová highlights the importance of fighting disinformation and upholding media freedom. She criticises platforms for spreading Belarusian and Russian propaganda, noting the absence of Google News in Belarusian as a limitation for local audiences.

The situation is complex, as Big Tech lacks legal obligations to assist dissident journalists. Belarusian media professionals suggest practical steps, such as adding Belarusian to Google News languages, to support independent journalism amidst authoritarian pressures.

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Radio giant Audacy files for bankruptcy, reports Axios

General

Jan 7, 2024

Audacy, a major U.S. radio broadcaster formerly known as Entercom, announced its plan to file for Chapter 11 bankruptcy. This move involves restructuring agreements to reduce its $1.9 billion debt by about $1.6 billion. The company anticipates quick court approval in February with minimal operational impact.

Originally established as Entercom in 1968, Audacy expanded through a merger with CBS Radio. It rebranded in 2021, focusing on digital audio and podcasts, yet struggled with declining radio ad revenues, worsened by the pandemic.

Facing challenges common to traditional media, Audacy's digital transition mirrors trends in the industry, as seen with iHeartMedia's earlier bankruptcy and market return.

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T-Mobile appoints Dentsu Creative as its lead creative agency in the US, reports AdAge

General

Jan 5, 2024

T-Mobile US has selected Dentsu Creative as its new lead creative agency in the United States, replacing Publicis Groupe’s Saatchi & Saatchi. This decision follows a comprehensive review process that began in June, with Deutsch LA also being a notable contender.

In 2022, T-Mobile's advertising expenditure was substantial, amounting to $2.3 billion. Their advertising strategy ranks them as the 20th largest advertiser in the U.S., per the Ad Age 2023 report.

Dentsu Creative, led by Rafael Rizuto, will now be responsible for driving T-Mobile’s creative direction, focusing on customer-centric strategies. Mike Katz from T-Mobile highlighted the importance of relevant and innovative content to continue the Un-carrier story.

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94% of Google SGE links are different from organic search results, study finds, reports Search Engine Land

General

Jan 5, 2024

Artificial Intelligence

Google's Search Generative Experience (SGE) often provides AI-generated answers that don't match the top 10 organic search results 93.8% of the time, potentially reducing organic website traffic. This offers opportunities for websites outside the top 10 to appear in SGE links.

SGE shows around 10 links on average, with about four unique links from four different websites. Most of these links are distinct from those in the top organic search results.

The study, focusing on 1,000 commercial keywords, found SGE present in 86.8% of searches. The 'Generate' button version of SGE appeared more frequently than the 'Show more' button format.

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U.S. Moves Closer to Filing Sweeping Antitrust Case Against Apple, reports NYT

General

Jan 5, 2024

The U.S. Justice Department is concluding an investigation into Apple, potentially leading to an antitrust lawsuit. The focus is on Apple's control over its ecosystem, hindering competition and consumer choice.

Key areas under scrutiny include the exclusive compatibility of the Apple Watch with iPhones, restrictions on iMessage and Apple Pay, and the overall dominance of the iPhone. Although a lawsuit decision is pending, findings could challenge Apple's integrated product strategy.

If pursued, this lawsuit would escalate regulatory pressures on Apple, targeting its market dominance and App Store policies. Amidst this, Apple faces slowing business growth, highlighting the significant impact of potential regulatory actions.

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OpenAI Offers Publishers Only $1 Million To $5 Million, reports MediaPost

General

Jan 5, 2024

Artificial Intelligence

OpenAI's negotiations with publishers for licensing content rights for AI training are offering modest financial returns, reportedly between $1 million to $5 million annually. This contrasts with expectations, especially for publishers holding extensive content archives.

Talks with major publishers like Gannett, News Corp, and IAC are ongoing, but the legal landscape remains complex.

The New York Times has sued Microsoft and OpenAI, alleging they used its copyrighted material in AI models without permission. The suit claims these models, including large-language models (LLMs), were developed using substantial amounts of the Times' diverse content, posing a direct competition to the newspaper's digital presence.

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Netflix Considers Ways to Make Money From Videogames in Possible Pivot, reports WSJ

General

Jan 5, 2024

Gaming / Metaverse

Netflix is considering monetizing its gaming division, which currently offers free games to subscribers. This potential shift, including options like in-app purchases, paid advanced games, or ads in games for ad-supported subscribers, deviates from Netflix's previous stance against ads and in-app purchases in games.

Since launching its gaming venture in 2021, Netflix has focused on long-term engagement, offering mobile games tied to its original shows. Despite acquiring gaming studios and developing popular titles, daily gaming engagement among subscribers remains below 1%.

Netflix plans to upscale its gaming budget, eyeing costly "triple-A games." This strategy expansion prompts internal debates on balancing gaming investments with maintaining focus on core programming.

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EU's Vestager to meet Big Tech CEOs in the US next week, reports Reuters

General

Jan 5, 2024

EU Antitrust Chief Margrethe Vestager is set to meet with CEOs of Apple, Alphabet, Broadcom, Nvidia, and OpenAI in the US. These discussions, focused on European digital regulation and competition policy, indicate Vestager's proactive stance in her antitrust role.

Her meeting with Apple's Tim Cook is particularly notable, considering an ongoing EU investigation into Apple's mobile payment systems. The Commission is currently reviewing Apple's proposal to open its payment technology to competitors.

Vestager will also meet Alphabet executives, aligning with an advisory opinion on Google's appeal against a significant EU antitrust fine, reflecting the EU's rigorous approach to regulating tech giants.

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Disney and Reliance start antitrust diligence on India media merger, reports Reuters

M&A

Jan 4, 2024

Reliance Industries and Walt Disney are progressing with their planned merger in India's media and entertainment sector. Both companies have engaged legal firms for antitrust due diligence, with Reliance likely to hold a majority in the combined entity, which includes their respective streaming services and 120 TV channels.

Senior executives recently convened in London, advancing the merger discussions with a non-binding agreement. Despite the significant steps taken, both companies have not officially commented on these developments.

The merger, however, faces potential antitrust challenges, especially concerning their dominant roles in cricket broadcasting. This includes Disney Hotstar's rights to International Cricket Council matches and Reliance's JioCinema's rights for the Indian Premier League.

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OMD Excited To Dive Deeper Into Attention For Programmatic Ad Buys, reports MediaPost

General

Jan 4, 2024

Artificial Intelligence

Integral Ad Science (IAS) introduces a new "quality attention" metric, using AI and machine learning to enhance ad campaign measurement. This tool, adopted by Omnicom's OMD, analyzes attention across publishers and formats, linking user engagement with advertising effectiveness.

Addressing the decline of browser cookies, this metric uses data from billions of impressions to forecast campaign outcomes, significantly improving conversion rates and brand interaction.

IAS's approach combines visibility, context, and interaction signals, using AI for precise evaluation. It predicts campaign impacts like return on ad spend and offers tools for cost estimation and ROI analysis, refining digital advertising strategies.

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YouTube TV Subscribers Soar 35%, Legacy Pay TV Subs Fall 12%, reports MediaPost

General

Jan 4, 2024

YouTube TV has become the fourth-largest pay TV provider in the U.S., surpassing Dish Network with 6.9 million subscribers and showing a 35% growth year-over-year. It's poised to overtake DirecTV's 8.13 million subscribers soon. YouTube TV now holds 40% of the virtual pay TV market, adding 350,000 subscribers in Q3 2023.

Other virtual pay TV services like Hulu+Live TV and fuboTV also reported gains, driven by the NFL and college football seasons.

However, despite growth in virtual services, the overall U.S. pay TV market experienced a 7% decline, reaching 72.94 million subscribers, with traditional pay TV decreasing by 12% to 54.96 million.

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OpenAI In Talks With Dozens of Publishers to License Content, reports Bloomberg

General

Jan 4, 2024

Artificial Intelligence

OpenAI is actively negotiating with several publishers for content licensing to train AI models, following deals with Axel Springer SE and The Associated Press. These agreements are vital for OpenAI's model accuracy and data recency.

The New York Times sued OpenAI, claiming unauthorised use of its content for AI training. This lawsuit poses a significant threat to OpenAI, potentially necessitating the removal of Times-related data from its models.

The controversy hinges on OpenAI's use of journalistic work in AI development, with The New York Times asserting illegal commercial use and OpenAI defending its practice as essential for model training, not content reproduction.

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Amazon Snags Disney Exec Jeremy Helfand to Lead Prime Video Advertising, reports AdWeek

General

Jan 4, 2024

Leadership Transitions

Jeremy Helfand, formerly of Disney, is joining Amazon to oversee Prime Video Advertising. This move coincides with Prime Video's introduction of an ad-supported tier in the U.S. on January 29. Helfand brings experience from his previous role in developing ad technology for Disney+, Hulu, and ESPN.

Prime Video’s new tier will be ad-supported as the default option. Users desiring an ad-free experience can opt to pay an additional $2.99 monthly. Live sports and Amazon Freevee content will remain unaffected by this change.

This strategic hire reflects the industry's shift towards ad-supported video services, with Amazon adapting its streaming service to align with this trend.

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Index Exchange Donates Privacy Sandbox Demo Tool to IAB Tech Lab’s Privacy Sandbox Taskforce

General

Jan 4, 2024

Cookie Deprecation

The IAB Tech Lab announced Index Exchange's donation of a Privacy Sandbox Demo tool to its taskforce. This open-source platform enables stakeholders to explore Google's Privacy Sandbox APIs, enhancing industry understanding and transparency about these new functionalities in digital advertising.

Anthony Katsur, CEO of IAB Tech Lab, commended Index Exchange for fostering industry collaboration. The tool aligns with their objective of empowering stakeholders with better comprehension of Privacy Sandbox APIs' implications.

Index Exchange's tool provides crucial insights into the impact of Privacy Sandbox APIs on programmatic advertising. It allows industry players to visualise and test these changes, aiding in navigating the evolving digital advertising landscape.

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Disney, NBCU, YouTube and others join GroupM to create streaming ad standards, reports AdAge

General

Jan 4, 2024

GroupM's Ad Innovation Accelerator, in collaboration with Disney and YouTube, aims to standardize streaming ad formats. The initiative seeks to simplify interactive ad creation across various platforms, enhancing efficiency for advertisers.

Incorporating tech firms like Brightline and Kerv, the project focuses on interactive ad formats like shoppable ads. Its goal is to develop universally compatible ads for implementation across streaming platforms by the first quarter's end.

The primary objective is to establish technical standards for streaming ads, making campaign launches easier and potentially increasing streaming services' business. This initiative aligns with the expected growth in connected TV advertising in North America.

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Google Is Finally Killing Cookies, Advertisers Still Aren’t Ready, reports WSJ

General

Jan 4, 2024

Cookie Deprecation

Google has commenced restricting cookies in Chrome, impacting 1% of users, with plans to phase them out entirely by the end of the year. This major shift challenges marketers and ad-tech companies, creating uncertainty in the $600 billion online ad industry.

The move to eliminate third-party cookies, mirroring actions by Firefox and Safari, addresses privacy concerns. Google's significant browser market share makes this a pivotal change, under scrutiny by regulatory bodies to ensure fair market competition.

As cookies disappear, Google's search advertising could benefit, while the broader online ad industry scrambles to adapt. The effectiveness of cookie alternatives and the future value of online advertising remain unclear.

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Jeff Bezos Bets on a Google Challenger Using AI to Try to Upend Internet Search, reports WSJ

General

Jan 4, 2024

Artificial Intelligence

Perplexity, targeting Google's search market, has secured $74 million in funding, with Jeff Bezos as a notable investor. Valued at $520 million, this AI-driven "answer engine" startup offers direct search responses, attracting tech workers and generating significant interest.

Gaining rapid user engagement, Perplexity recorded 53 million visits in November. Its unique AI approach to search queries has intrigued tech industry leaders and is expanding its user base through word-of-mouth marketing.

Competing with Google, Perplexity focuses on subscription and software sales, aiming for long-term growth. While not directly challenging Google's dominance, the startup's innovative approach positions it as a potential future contender in the search market.

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Instagram’s Creators Say New Features Miss the Mark, reports Bloomberg

General

Jan 4, 2024

Influencer Marketing

Instagram's frequent introduction of features like avatars and verification programs is facing criticism from creators for being out of touch with user needs. This disconnect is causing frustration among users, particularly those relying on the platform for income.

Key initiatives like Meta Verified and the Reels Bonus program have been unpopular among creators, who see little benefit and find these features add clutter and confusion. Algorithm changes intended to compete with TikTok further complicate content reach.

Creators argue that Instagram's focus on constant updates detracts from its fundamental purpose of connecting people, making the platform overly complex and less effective at its core function.

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Amazon Captured 29% of Online Orders in Weeks Before Christmas, reports Bloomberg

General

Jan 4, 2024

Amazon's share of online orders rose to 29% in the last two weeks before Christmas, up from 21% during Thanksgiving and Black Friday. This spike, captured by Route from 55 million orders, underscores Amazon's successful investment in speedy deliveries for last-minute shoppers.

Amazon CEO Andy Jassy highlights fast delivery as a key advantage, vital amidst competition from Walmart and Chinese e-commerce firms. Plans to expand same-day delivery facilities further this edge, with Amazon already achieving record speeds by optimizing inventory logistics.

Prime members benefit most from Amazon's delivery efficiency, with the majority of their orders arriving significantly faster than those of non-Prime customers.

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TikTok Eyes $17.5 Billion Shopping Business on Amazon’s Turf, reports Bloomberg

General

Jan 4, 2024

TikTok, a ByteDance subsidiary, plans to significantly grow its U.S. e-commerce business to $17.5 billion in 2024, positioning TikTok Shop as a strong competitor to Amazon. This growth strategy leverages TikTok's social media influence and user engagement.

The platform's global merchandise value reached $20 billion in 2023, primarily from Southeast Asia. Now, TikTok aims to expand its e-commerce footprint in the U.S. and Latin America, challenging both Amazon and other Chinese discounters.

TikTok Shop integrates shopping with social media, offering a unique blend of product discovery and convenience. This model, successful in China, is being adapted for the U.S. market, tapping into the rising interest in Chinese e-commerce among American consumers.

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Amazon’s Video Ad Push Expected to Generate an Extra $5 Billion in Revenue, reports Bloomberg

General

Jan 3, 2024

Amazon's introduction of video advertising on Prime Video is expected to boost its revenue by $5 billion, as reported by Bank of America. The service will introduce ads in North America on January 29 and globally on February 5, with an option for ad-free content at an additional $3 per month.

The company anticipates earning $3 billion from video ads and an additional $1.8 billion from subscribers paying to avoid ads. This estimate assumes that 70% of Prime subscribers will choose the ad-supported option.

Advertising on Amazon, primarily through its web store, is its smallest but fastest-growing revenue source, with Prime Video now a key focus for ad sales and leveraging content investments.

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Retail Media Innovator Melanie Zimmermann joins Criteo to Lead its Global Retail Media Practice

General

Jan 3, 2024

Leadership Transitions

Criteo has appointed Melanie Zimmermann as General Manager of Global Retail Media. Zimmermann, previously at Macy's, will drive Criteo's global retail media strategy, enhancing client support and maintaining the company's market position.

Reporting to Criteo's Chief Revenue Officer, Zimmermann's role involves shaping global retail media practices and guiding product strategy. This move coincides with Stephen Howard-Sarin's appointment as Managing Director of Retail Media in the Americas, focusing on regional growth.

These appointments align with Criteo's strategy to leverage the burgeoning commerce media sector, predicted to significantly impact digital advertising. Zimmermann and Howard-Sarin bring extensive industry expertise to Criteo's evolving commerce media initiatives.

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TikTok Claims Non-Users Consent To Tracking On Hulu, Etsy And Other Sites, reports MediaPost

General

Jan 3, 2024

TikTok is defending itself in a privacy lawsuit by arguing non-users consented to data tracking on sites with TikTok pixels, like Hulu and Etsy. This defense responds to allegations of privacy law violations, asserting visitors allowed third-party data sharing.

The lawsuit, filed by Californian Bernadine Griffith, claims TikTok gathered data from non-users through pixels on websites. TikTok counters that these sites disclose data collection practices, likening complaints to standard internet operations.

U.S. District Court Judge Stanley Blumenfeld, Jr. allowed most claims to proceed. TikTok's defense includes claims of user consent and argues web publishers are responsible for any privacy violations due to their use of TikTok's tools.

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Facebook rolls out Link History for all users, and uses data for targeted ads, reports Search Engine Land

General

Jan 3, 2024

Facebook has introduced a Link History feature globally on Android and iOS, archiving users' link history for targeted advertising. Enabled by default, users have the option to opt out. The rollout is ongoing, with availability currently limited to mobile devices.

Link History tracks websites visited within Facebook’s Mobile Browser over the last 30 days, but it excludes links from Messenger chats. Users can manage this feature in the browser settings within the Facebook app.

Facebook states that turning off Link History leads to immediate data clearance, although full deletion by Meta may take up to 90 days. The collected data is used to enhance ad targeting across Meta's platforms.

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X temporarily restored headlines to posts with links, reports Axios

General

Jan 3, 2024

News Publishing

X, previously known as Twitter, temporarily reinstated headlines on link-containing posts on Tuesday but reversed the change by Wednesday. Originally removed in October for aesthetic reasons, the absence of headlines had led to user confusion about link destinations.

The brief reintroduction displayed headlines in small text at the image's bottom on desktop versions. However, this update did not extend to the iOS app, and on Android, headlines continued to appear below images.

X has not commented on these changes. This inconsistency in headline display reflects the platform's ongoing adjustments under its new leadership.

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AI Is Coming for the Influencers, reports NY Mag

General

Jan 3, 2024

Artificial Intelligence

Advertising is embracing AI, with companies like Amazon, Google, and Meta encouraging AI-generated ad content for efficiency and cost savings. This trend includes AI-created virtual influencers, offering promotional benefits at lower costs, raising concerns among human influencers about job security.

Agencies like The Clueless are creating digital influencers, like Aitana, as economical alternatives to human influencers. This approach challenges the traditional influencer market, offering cost-effective advertising solutions.

AI's role in advertising highlights issues of authenticity. Studies show AI influencers increase ad recall and reduce costs, positioning them not as replacements for human influencers, but as tools to enhance campaign metrics and potentially automate basic creative functions.

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T-Mobile Adding Hulu for Free to Top-Tier Wireless Package, reports Variety

General

Jan 3, 2024

Starting January 24, 2024, T-Mobile's premium Go5G Next wireless plan will include Hulu With Ads, normally priced at $7.99 per month, at no extra charge. This addition enhances the plan's value, with T-Mobile covering the cost through a wholesale agreement with Hulu.

Go5G Next already offers free Netflix and Apple TV+, along with MLB.TV subscriptions. The inclusion of Hulu adds significant value to the plan, which starts at $100 monthly for a single line.

Go5G Next subscribers will have access to a wide array of content on Hulu. Additional benefits of the plan include free in-flight Wi-Fi, global high-speed data, robocall blocking, and more.

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Amazon Advances Flashtalking And Smartly As Alternatives In Advance Of The Sizmek Shutdown, reports AdExchanger

General

Jan 3, 2024

Amazon's divestiture of the Sizmek ad server to Attivo Group signals the end of Sizmek's notable role in the ad server industry. Acquired post-bankruptcy, Sizmek's integration proved more resource-intensive than Amazon anticipated, leading to its sale.

Amazon is transitioning Sizmek clients to Flashtalking and Smartly.io, with the former being a closer match to Sizmek’s services. This change reflects a strategic shift towards creative optimization in advertising.

The decision to offload Sizmek raises broader questions about the viability of ad servers. The industry is increasingly focusing on creative content, indicating a shift in advertising strategies amid evolving digital landscapes.

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Most publishers share consumer data before getting consent, Compliant study finds, reports AdAge

General

Jan 3, 2024

Compliant's research reveals over 90% of publishers using compliance platforms are sharing consumer data without proper consent. This issue is highlighted in two indices assessing ad impressions and regulatory risks, indicating a disconnect with U.S. privacy laws.

CEO Jamie Barnard's study of ad campaigns found that the majority fail to meet compliance standards. This is often due to incorrect configurations in consent management platforms, with data being shared before user consent is obtained.

This widespread non-compliance is prompting a shift in media buying considerations. Buyers are expected to scrutinise data compliance, alongside brand safety and sustainability, to build consumer trust and gain a competitive advantage.

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Snap to let entertainment brands track whether ads increase viewership, reports AdAge

General

Jan 3, 2024

Snap has teamed up with Samba TV to measure advertising effectiveness for linear TV and streaming network advertisers on Snapchat. This enables U.S. marketers to track viewership conversions linked to their Snapchat campaigns across a broad network and publisher base.

This partnership follows Samba TV's successful studies with TikTok, demonstrating significant viewership increases from entertainment ads. Samba TV will apply its extensive viewership data, encompassing millions of households, to analyse the impact of Snapchat ads.

Snap's Christopher Plambeck highlights the value of this collaboration, enabling advertisers to optimise their tune-in campaigns with Samba TV's robust television and streaming measurement capabilities.

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IPG sells Hill Holliday and Deutsch New York to Attivo Group, reports AdAge

M&A

Jan 3, 2024

Interpublic Group of Cos. has sold its agencies Hill Holliday and Deutsch New York to New Zealand-based Attivo Group, marking Attivo’s first U.S. investment. This follows Attivo's acquisition of other IPG entities in Australia.

Despite the sale, both agencies will maintain an affiliate relationship with IPG and retain their current leadership. The move aligns with IPG's strategy of allowing Deutsch New York to operate more independently.

The sale occurs as IPG faces a challenging financial period with a slight revenue decrease. Hill Holliday and Deutsch New York, holding significant client portfolios, are expected to benefit from Attivo's ownership while retaining ties with IPG.

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Google, Meta and Tiktok's debts removed from Russian database, reports Reuters

General

Jan 3, 2024

Russian courts fined several tech companies, but recent data indicates Alphabet's Google, Meta, TikTok, and Telegram have settled their fines, as they're no longer listed as debtors. However, X (formerly Twitter) and Twitch remain on the list with substantial fines.

The fines stem from Russia's disputes with foreign tech companies over content regulation and local data storage, intensifying post-Ukraine invasion in 2022. This led to the blocking of Twitter and Meta's platforms in Russia and increased scrutiny of YouTube.

In 2023, Google faced a significant fine based on its Russian turnover, while Meta, labeled as "extremist," was also fined, reflecting Russia's stringent stance against global tech firms.

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Disney Wins Backing of Key Investor in Battle With Nelson Peltz, reports WSJ

General

Jan 3, 2024

Leadership Transitions

Walt Disney Co. secured support from ValueAct, a key shareholder, in its dispute with activist investor Nelson Peltz. ValueAct will back Disney's board nominees at the 2024 shareholder meeting, providing Disney a strategic advantage against Peltz's demands.

Another shareholder, Blackwells Capital, plans to nominate directors supportive of CEO Bob Iger, opposing Peltz's campaign. Amidst these developments, Disney's share price remains a concern for shareholders.

Disney faces a complex situation with Peltz's campaign, Blackwells' nomination plans, and ValueAct's support. The company recently appointed new directors, denying Peltz a board seat, as it navigates tensions and differing views among its investors.

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India widens regulatory grip over tech firms, reports TechCrunch

General

Jan 3, 2024

In 2023, India implemented new regulations in the tech sector, drawing from European and Chinese models. These changes, including a significant tax on online gaming, have caused concern among investors and tech companies. The shift towards tighter tech governance continues into 2024.

The tax increase has pushed Indian gaming companies to seek opportunities abroad, while a new telecom law increases government surveillance, triggering privacy fears. The upcoming Digital India Act will further regulate tech firms and streaming content.

India's regulatory landscape is evolving, attracting global tech investment while presenting operational challenges. Despite the hurdles, India's massive market remains crucial for international tech firms, driving substantial investments.

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Montana appealing ruling that blocked state from barring TikTok use, reports Reuters

General

Jan 3, 2024

Montana is appealing a decision to block its statewide TikTok ban, the first such U.S. ban. Attorney General Austin Knudsen is challenging Judge Donald Molloy's ruling that the ban is unconstitutional and oversteps state authority.

The ban, originally aimed at addressing data privacy and potential Chinese spying concerns, was contested by TikTok users in Montana. TikTok asserts it safeguards U.S. user data and denies sharing it with the Chinese government.

Judge Molloy's decision highlighted that Montana's action infringes upon federal foreign policy domain and was excessively broad. This contrasts with broader U.S. and state-level restrictions limited to government devices.

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Americans Are Canceling More of Their Streaming Services, reports WSJ

General

Jan 2, 2024

Streaming services are experiencing higher customer turnover due to rising costs and economic factors, leading subscribers to be more discerning in their choices. This has resulted in an uptick in cancellation rates across major platforms.

To combat declining retention, these services are introducing lower-cost, ad-supported options, offering discounts, and creating bundled deals. These strategies aim to maintain customer loyalty while navigating financial challenges.

Data indicates that many customers who cancel eventually resubscribe, suggesting a fluid relationship with streaming services. Consequently, companies are focusing on adaptable, affordable plans to attract and retain cost-conscious viewers.

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Elon Musk's X fails to block California's content moderation law, reports Reuters

General

Dec 29, 2023

Elon Musk's X, previously Twitter, unsuccessfully challenged a California law requiring social media companies to disclose content moderation practices. The law demands semiannual reports on how platforms handle objectionable content.

Judge William Shubb dismissed X's request against the law, deeming the reporting requirements burdensome but not unconstitutional. A further discussion is planned for February 26.

X, scrutinised for its moderation policies, has experienced a notable decline in U.S. ad revenue since Musk's takeover. It also faces an EU investigation over potential breaches concerning content moderation, affirming its commitment to adhere to the Digital Services Act.

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EU competition chief defends Artificial Intelligence Act after Macron’s attack, reports FT

General

Dec 29, 2023

Artificial Intelligence

EU digital chief Margrethe Vestager defends the AI Act against criticism, including from French President Macron, asserting it will boost innovation and research by offering clear rules for AI development, including foundational models like OpenAI's ChatGPT. The Act aims to create a predictable, legally certain environment without stifling innovation.

The AI Act, awaiting ratification, introduces a two-tier regulatory framework, focusing on transparency for general AI models and stricter requirements in sensitive areas, with stringent limits on facial recognition.

Vestager acknowledges Europe's challenges in AI, like less venture capital, emphasising regulation's role in building market trust and encouraging AI use, while advocating for balanced implementation of new rules.

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X Corp. Urges Judge To Allow Lawsuit Over Watchdog's Alleged Vigilantism, reports MediaPost

General

Dec 28, 2023

X Corp. (formerly Twitter) has accused the Center for Countering Digital Hate (CCDH) of vigilantism and data scraping in a legal dispute, seeking to prevent CCDH from dismissing claims related to an alleged campaign against the platform.

The lawsuit follows CCDH's report on offensive content by X Corp.'s paid subscribers, which X Corp. acknowledges but criticises as selective. The company claims CCDH violated its terms of service and a federal anti-hacking law.

CCDH argues its actions are protected news-gathering under California's anti-SLAPP law, but X Corp. contends the issue is unauthorised data access, not CCDH's speech. A court hearing is scheduled for February 23.

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Meta Presses Judge To Declare FTC Structure Unconstitutional, reports MediaPost

General

Dec 28, 2023

Meta Platforms is contesting the Federal Trade Commission's (FTC) structure as unconstitutional, arguing it violates due process by combining prosecutorial and judicial roles. This challenge arises from the FTC's attempt to modify a 2020 privacy settlement with Meta.

The FTC's proposed changes, stemming from privacy concerns, include restricting Meta's use of minors' data and enforcing stricter privacy assessments for new products. Meta opposes these modifications, claiming they require judicial, not administrative, approval.

Meta's legal challenge asserts the FTC's in-house hearing approach is unconstitutional. The company maintains that its previous settlements with the FTC don't waive its right to contest the agency's authority and structure.

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Google settles $5 billion consumer privacy lawsuit, reports Reuters

General

Dec 28, 2023

Google has settled a lawsuit alleging it tracked users' private internet browsing, avoiding a trial set for February 2024. The lawsuit, seeking $5 billion, claimed Google monitored users even in private browsing modes. Settlement details are undisclosed.

Plaintiffs accused Google of using cookies and analytics to gather data on users in "Incognito" mode on Chrome, collecting personal information about their activities and preferences.

Filed in 2020, the lawsuit represented millions of users from June 2016, demanding $5,000 per user for alleged federal wire-tapping and California privacy law violations. A judge had earlier denied Google's request to dismiss the case.

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LinkedIn ad prices rise as advertisers leave Elon Musk’s X, reports FT

General

Dec 28, 2023

LinkedIn's advertising revenue reached $4bn in 2023, growing by 10.1% due to enhanced targeting and a shift from Elon Musk's X. Ad prices increased with rising demand, marking a significant transition for the platform.

The platform's unique targeting capabilities, based on job data, have attracted advertisers, despite high campaign costs. This has led to a notable return on investment for marketers.

Expanding beyond its traditional scope, LinkedIn is exploring new advertising avenues, including connected TV apps and premium ad slots. This expansion signifies its evolution into a versatile platform for professional content and interaction.

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New York Times Sues Microsoft and OpenAI for Copyright Infringement, reports Bloomberg

General

Dec 27, 2023

Artificial Intelligence

The New York Times Co. is suing Microsoft Corp. and OpenAI Inc. for using its copyrighted content to develop AI services like ChatGPT, without specifying monetary demands. This lawsuit underscores the media's growing concern over the use of their content in AI development.

OpenAI has previously sought licensing agreements with publishers for its AI technologies. However, it failed to reach an agreement with The New York Times, leading to this lawsuit.

The New York Times alleges that Microsoft, OpenAI's major backer, used its content to enhance Bing's capabilities, significantly increasing Microsoft's market value. The newspaper insists that such commercial use requires prior permission.

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Prime Video Ads Are Coming On January 29, Amazon Announces To Subscribers, reports Deadline

General

Dec 26, 2023

Amazon Prime Video in the U.S. will start showing ads in its content from January 29, with the UK, Germany, Canada, and other regions to follow. This move is part of Amazon's strategy to fund more compelling content.

Ads, described as "limited", won't appear in purchased or rented content, and certain U.S. territories are exempt. This shift brings Amazon in line with other streaming services, adopting a dual subscription-ad model.

Amazon's expansion into advertising, a growing revenue source, prompts an additional ad-free Prime Video option for an extra $2.99 per month, allowing users to choose an uninterrupted viewing experience.

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Facebook's Meta fined for breaches of Italian gambling ads ban, reports Reuters

General

Dec 22, 2023

Meta Platforms, the owner of Facebook, has been fined 5.85 million euros by Italy's AGCOM for advertising gambling on Facebook and Instagram. This includes both user profiles and sponsored content promoting betting or games with cash prizes.

Meta has not yet commented on the fine. The penalty is part of Italy's enforcement against advertising gambling, which also saw fines for other tech giants.

Earlier this month, AGCOM fined Alphabet Inc's YouTube and Amazon's Twitch 2.25 million euros and 900,000 euros respectively for similar violations of Italy's ban on gambling advertisements.

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