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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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Google Rejected Play Store Fee Changes Due to Impact on Revenue, Epic Lawsuit Shows, reports Bloomberg

General

Dec 22, 2023

Google considered changing its Play Store pricing model to avoid regulatory issues but abandoned the plan due to potential financial losses. This decision emerged during an antitrust lawsuit filed by Epic Games, which highlighted Google's monopolistic practices.

Instead of the initial proposal, Google opted for a model where developers process their own payments in exchange for lower fees. This shift is in line with a recent settlement allowing more payment flexibility.

The legal defeat to Epic Games indicates a shift in the app store industry, challenging Google's position. To address high commission criticisms, Google launched the User Choice Billing program in 2022, offering developers reduced fees.

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Apple Explores A.I. Deals With News Publishers, reports NYT

General

Dec 22, 2023

Artificial Intelligence

Apple is negotiating with news publishers like Condé Nast and NBC News to license content for AI development. These talks, involving potential deals worth $50 million, are part of Apple's push into generative AI, competing with tech giants like Microsoft and Google.

Despite its AI advancements, Apple has been less active in the AI sphere, with Siri's progress lagging behind. Publishers are cautious about Apple's offer, concerned about broad licensing terms and potential legal issues.

Publishers are divided over partnering with Apple, balancing caution with the potential benefits of AI. This reflects the wider industry's wariness towards AI's impact on news consumption and revenue.

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Written News To Get Most Of the Money in Canada's Deal with Google, reports MediaPost

General

Dec 21, 2023

News Publishing

Google has agreed to pay Canadian publishers $100 million yearly for using news content on its search platform. This deal, reduced from the initially proposed $172 million, primarily benefits written news, allocating $63 million to news publishers and $30 million to broadcast news outlets, with CBC/Radio-Canada receiving $7 million.

Dave Adsett of News Media Canada acknowledges the effective regulatory framework ensuring fair compensation for publishers. He emphasizes the commitment to principled journalism in Canada.

Paul Deegan of News Media Canada praises Google's constructive approach and urges Meta to adopt similar practices. Currently, Meta is resisting Canadian policies by blocking news content in the country.

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BMW Consolidates With Omnicom, reports AdAge

General

Dec 21, 2023

BMW consolidates its U.S. marketing efforts under Omnicom, including creative, digital, CRM, and social media, effective from April 2024. Goodby Silverstein & Partners retains lead creative duties, while Critical Mass leads digital. This move integrates strategies for both BMW and Mini brands.

The consolidation aims to enhance marketing efficiency, with BMW planning initiatives like a Super Bowl electric vehicle ad. Omnicom's specialized team will ensure distinct operations, aligning with BMW's competitive market strategy.

BMW's streamlined approach reflects a trend towards integrated marketing solutions. This unified team structure focuses on comprehensive brand management and audience engagement, aiming to boost BMW's presence in the luxury auto sector.

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Peacock Is Giving Fans a Taste of the NFL Without Commercials, reports WSJ

General

Dec 21, 2023

Peacock, NBCUniversal's streaming service, is set to stream two exclusive NFL games commercial-free during the fourth quarter. This move, part of a strategy to enhance viewer experience, aims to attract new subscribers by focusing on sports content.

The service, which emphasizes sports over entertainment, uses sports broadcasting to drive platform growth. Although this strategy incurs substantial costs, Peacock prioritizes subscriber acquisition and retention over immediate profit from sports streaming.

Peacock's focus on sports, including over 13,000 hours planned for 2024, positions it as a key player in the streaming market. However, this strategy raises concerns about its financial viability and limited potential for global expansion.

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Google Ads Support is not being phased but big AI improvements are underway, reports Search Engine Land

General

Dec 20, 2023

Artificial Intelligence

Google Ads has assured advertisers that their free support service will continue, countering concerns raised after the introduction of a paid support option. Users, especially those with smaller budgets, rely on this support for resolving campaign issues.

In a PPC Chat Q&A, Google Ads liaison Ginny Marvin addressed these concerns, acknowledging existing frustrations and the need for improvements. She indicated that future support enhancements may involve Large Language Models and AI to improve the experience.

The paid support pilot, initially offered to small businesses, remains active. While AI integration might streamline certain tasks, complete replacement of human support is not anticipated.

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TikTok parent ByteDance says it’s using OpenAI technology to test its own AI models, reports CNN

General

Dec 20, 2023

Artificial Intelligence

Chinese tech giant ByteDance has admitted using OpenAI's GPT technology minimally for AI development, following OpenAI's suspension of their account over data usage concerns. ByteDance, which owns TikTok, uses GPT APIs licensed by Microsoft for products outside China, while in China, it employs its own AI model for the Doubao service.

OpenAI, enforcing its policy against using ChatGPT for rival AI models, has suspended ByteDance's account pending investigation. This reflects rising scrutiny in AI technology use and compliance.

The incident underscores the competitive dynamics in the global AI sector, highlighting the ongoing US-China rivalry in emerging technologies and the challenges in regulating AI advancements.

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Russian court fines Google $50.8 mln over 'fake' information, reports Reuters

General

Dec 20, 2023

A Russian court fined Google 4.6 billion roubles ($50.84 million) for not removing content about the Ukraine conflict deemed as "fake." The fine reflects Russia's ongoing dispute with foreign tech companies over content and censorship, heightened since the 2022 Ukraine invasion.

Additionally, the fine covers Google's failure to delete content Russia labels as "extremist" and "LGBT propaganda." This action follows Russia's recent classification of LGBT activists as "extremists," sparking concerns about potential arrests.

Despite being targeted by Russian authorities, Alphabet's YouTube, unlike Twitter and Meta's Facebook and Instagram, remains accessible in Russia. The fine is based on Google's annual Russian turnover, continuing a trend of similar fines imposed in 2021 and 2022.

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White House Asks Supreme Court To Lift Curbs On Contact With Social Platforms, reports MediaPost

General

Dec 20, 2023

The Biden Administration is urging the Supreme Court to dismiss an injunction blocking federal officials from influencing social media moderation. This follows the 5th Circuit Court's ruling that such influence, particularly on COVID-19 content, may breach the First Amendment.

Solicitor General Elizabeth Prelogar argues this injunction impedes essential government communication on public safety and health. She challenges the notion that these actions violate free speech rights, advocating for the government's role in public discourse.

The dispute arose from allegations that federal pressure led to online censorship of COVID-19 discussions. The White House denies coercing platforms, emphasising platforms' autonomy in content decisions.

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Disney IDs (And Promotes) Family Streaming Audience Segments, reports MediaPost

General

Dec 20, 2023

Disney is enhancing advertising on Disney+ and Hulu, competing with Amazon Prime Video's ad-supported tier. They've added geotargeting and demographic targeting, alongside programmatic buying and performance metrics. Disney's studies on streaming behaviors aid in refining targeted advertising strategies.

Their "Generation Stream" study segments viewers by streaming habits, aiding targeted ad placement. The latest "Family Edition" focuses on family streaming dynamics, helping to create precise audience segments for advertisers.

Disney's study leads to unique family-oriented segments for advertisers, like "active enrichers" and "eclectic connectors". These insights will be integrated into Disney Select's ad targeting options, with family segments rolling out later in 2024.

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Google confirms it is testing ad copy variation in live ads, reports Search Engine Land

General

Dec 20, 2023

Google has started testing headlines within ad description texts in live ads, surprising advertisers with this unannounced change. This creates extra work, particularly for those with smaller budgets, complicating their ad management and prioritisation efforts.

Google's Ginny Marvin confirmed the experiment as a "small test" during a PPC Chat Q&A, but its impact seems more widespread. Google Ads expert Anthony Higman expressed concerns about this significant alteration to ad copy format, potentially affecting ads' effectiveness and compliance, especially in regulated industries.

These changes hint at Google's move towards full automation in advertising, raising challenges for advertisers in analysing and interpreting ad data due to reduced transparency and data visibility.

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Big Tech’s divisive personalisation attracts fresh call for profiling-based content feeds to be off by default in EU, reports TechCrunch

General

Dec 20, 2023

Responsible Media

EU lawmakers are calling for stricter control of Big Tech's content recommender systems, citing their potential harm to social cohesion and mental health. They propose defaulting these systems to 'off', challenging the current model where divisive and polarising content is amplified for profit.

In Ireland, similar measures are proposed following concerns about the systems' societal impact. MEPs are urging the European Commission to adopt these stricter rules, highlighting their role in spreading extremist content and manipulating users, especially the young.

The European Commission is reviewing these systems under the Digital Services Act, considering case-by-case actions. The approach in 2024 could mark a significant shift in managing Big Tech's influence on public discourse and social dynamics.

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Elon Musk’s X in political advertising push to offset revenue falls, reports FT

General

Dec 20, 2023

Elon Musk's X aims for $100 million in political ad revenue for 2024, despite industry skepticism. This effort follows the reversal of a political ad ban, aligning with Musk's free speech stance. Despite active marketing to political clients, X's past political ad revenues have been modest, casting doubt on this ambitious target.

X's strategy sees varied reactions. Republican campaigns show interest, leveraging X for fundraising and voter turnout. Conversely, Democratic groups are wary, influenced by Musk's divisive leadership.

This polarisation highlights X's shifting user base and contrasts with the broader digital ad market, where platforms like YouTube and Facebook lead.

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Instagram Quietly Makes Share Counts Public, reports AdWeek

General

Dec 20, 2023

Instagram now publicly displays post share counts, shifting focus from likes and comments to sharing as a key engagement metric. This change, noticed since early 2023, reflects the platform's shift towards community-building and word-of-mouth influence, aligning with evolving user behaviors.

The specifics of what constitutes a 'share' remain unclear, and not all accounts show this metric. However, the visibility of share counts underscores the importance of content that encourages active user participation and community engagement.

As sharing gains prominence, brands may need to adapt their content strategies to focus more on resonating with audiences and fostering authentic connections, moving beyond traditional metrics like follower counts.

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U.S. Regulators Propose New Online Privacy Safeguards for Children, reports NYT

General

Dec 20, 2023

Advertising To Children

The Federal Trade Commission (FTC) proposes enhancing the Children's Online Privacy Protection Act (COPPA) to intensify online safety for children. The updates mandate services like social media apps and gaming platforms to reduce children's data exploitation, shifting the responsibility from parents to platforms and restricting targeted advertising for children under 13.

The amendments aim to fortify data security, restrict data retention, and limit how educational-tech providers use student data, focusing on educational rather than commercial purposes.

Despite COPPA's role in protecting children's online privacy, tech companies have faced criticism for insufficient age verification and data misuse. The FTC's proposed changes are subject to public review and commission approval.

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Google Play Deal Frustrates Critics of Steep App Developer Fees, reports Bloomberg

General

Dec 20, 2023

Alphabet Inc.'s $700 million settlement over Google Play Store practices allows developers to bypass the platform yet still obliges them to pay a service fee to Google. This deal, though facilitating app distribution outside Google Play, maintains a service fee of up to 26%.

Critics, including Epic Games, argue the settlement fails to offer significant consumer or developer relief, not substantially altering Google Play’s business model. The settlement's impact is debated, with some praising the increased competition but others noting it doesn't reduce Google's commission structure.

Despite allowing alternative app distribution, Google’s commission fees largely persist, with the settlement not mandating fee reductions. This outcome disappoints critics who hoped for more substantial changes to Google Play’s monetisation policies.

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Warner Bros. Discovery in talks to merge with Paramount Global, reports Axios

M&A

Dec 20, 2023

Warner Bros. Discovery CEO David Zaslav and Paramount Global CEO Bob Bakish met in New York to discuss a possible merger, potentially creating a significant news and entertainment entity. This merger could trigger further industry consolidation.

The discussion focused on mutual benefits, such as combining streaming services Paramount+ and Max to rival giants like Netflix and Disney+. There were talks on synergies, including enhancing Paramount's franchises with WBD's international reach and merging CBS News with CNN for a global news impact.

The talks are preliminary and may not result in a deal, but they underscore the urgency for media companies to adapt in a rapidly evolving industry landscape.

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Paramount in Talks to Sell BET Network to Management Group, reports Bloomberg

M&A

Dec 20, 2023

Paramount Global is negotiating the sale of its Black Entertainment Television (BET) network, potentially to a group led by BET CEO Scott Mills and investor Chinh Chu. The deal, valued at around $2 billion, comes after an unsuccessful attempt to sell BET earlier.

Chu, known for his involvement in various acquisition ventures, including with Getty Images, is a key figure in the talks. TV producer Byron Allen and actor-producer Tyler Perry had shown interest in the past.

Paramount, facing declining TV viewership and costs from its streaming venture, Paramount+, is undergoing changes. The Redstone family, controlling Paramount, is exploring a sale of their interests, possibly to David Ellison and RedBird Capital Partners.

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Biden administration takes first step toward writing key AI standards, reports Reuters

General

Dec 20, 2023

Artificial Intelligence

The Biden administration is initiating steps to establish safety standards for generative artificial intelligence (AI), driven by President Biden's executive order. The National Institute of Standards and Technology (NIST) is calling for public input to develop these standards, focusing on AI's responsible development.

NIST's initiative includes creating guidelines for evaluating AI systems and identifying risks, particularly concerning misinformation. Input from AI companies and the public is sought to enhance AI safety and security.

The administration is incorporating "red-teaming" techniques for AI risk assessment, proven effective in cybersecurity. This approach involves simulating potential threats to identify vulnerabilities, crucial for ensuring AI systems' safety and reliability.

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Google plans ad sales restructuring as automation booms, reports Reuters

General

Dec 20, 2023

Google is set to reorganize a significant portion of its 30,000-strong ad sales team, as per a report by The Information. This restructuring, announced by Sean Downey in a department-wide meeting, may include potential layoffs, although specifics were not detailed.

The reorganization is aimed at consolidating staff within its large customer sales unit that manages major advertiser relationships. This shift reflects Google's increasing reliance on machine-learning techniques for ad sales across its platforms, including the search engine and YouTube.

This development follows Alphabet's announcement in January to cut 12,000 jobs globally, which included layoffs at Waze after integrating its ad system with Google Ads technology.

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Omnicom Names AI Expert Santos To Its Board, reports MediaPost

General

Dec 19, 2023

Artificial Intelligence

Omnicom Group, focusing on AI's future impact, has appointed AI expert Casey Santos as an independent director and finance committee member.

Currently Asurion's CIO, Santos oversees global technology and procurement strategy.

Her extensive background includes technology leadership roles in finance at Alliance Bernstein, General Atlantic, and McKinsey, and she started her career as a NASA Flight Controller, supporting over 20 space shuttle missions.

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Group representing TikTok and Meta sues Utah over social media age limits, reports Axios

General

Dec 19, 2023

Advertising To Children

NetChoice is suing Utah over a new law requiring social media age verification and parental consent, arguing it infringes on First Amendment rights. Set for March 2024, the law mandates all users, including adults, to prove their age, and minors under 18 to obtain parental consent.

The legislation is part of Utah's effort to mitigate social media's harmful effects on youth. Governor Spencer Cox defends the law amidst increasing national concerns about the impact of social media on children.

Nationally, similar initiatives face legal and practical challenges, as demonstrated in Arkansas and Australia, highlighting the complexities of enforcing age verification in the digital space.

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Alphabet to limit election queries Bard and AI-based search can answer, reports Reuters

General

Dec 19, 2023

Artificial Intelligence

Google plans to restrict responses from its Bard chatbot and search generative experience for election-related queries before the 2024 U.S. Presidential election. This change, effective early 2024, aims to ensure information accuracy during key global elections.

Meta is implementing similar measures, requiring advertisers to disclose AI involvement in political ads on Facebook and Instagram. This step seeks to enhance transparency in political advertising.

Elon Musk's X has reversed its global ban on political ads, allowing them in the U.S. and bolstering its safety and elections team. These moves come as governments globally push for clearer regulations on AI and political advertising.

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Meta faces accusations over content moderation in Israel-Hamas conflict, reports FT

General

Dec 19, 2023

Meta has been criticized for excessive content moderation during the Israel-Hamas conflict, as its independent oversight board reported overcorrection in automated tools, leading to unwarranted removals of important content.

The board stressed the need for a balanced approach to content moderation, noting that Meta's actions may have suppressed Palestinian voices, while platforms like TikTok faced accusations of bias towards pro-Palestinian content.

In response, the board urged Meta to quickly adapt to changing scenarios, preserve content that could highlight human rights violations, and address concerns about unequal treatment of users. Meta has yet to comment on the board's findings.

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Audacious new schemes known as SEO heists are posing thorny questions for Google, reports Insider

General

Dec 19, 2023

Artificial Intelligence

David Bruns' website, Exceljet, experienced a drastic traffic drop due to an "SEO heist" using generative AI, reflecting a broader issue of AI manipulation in search engine rankings. This highlights ethical concerns and the potential for AI-generated misinformation.

The rise of generative AI in SEO allows rapid content creation, enhancing search rankings but raising questions about authenticity and misinformation. This poses challenges for search engines like Google in maintaining content integrity.

Generative AI's impact on online content necessitates a reevaluation of information engagement and verification, as search engines struggle to balance AI's benefits with the risks of misinformation and trust erosion.

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YouTube Shorts ad test reveals cheaper prices and longer views than TikTok, reports AdAge

General

Dec 19, 2023

YouTube Shorts is offering lower costs compared to TikTok. Precise.TV's case study reveals Shorts ads, averaging $4 per thousand views, are about half the cost of TikTok's $8. This affordability is significant but subject to change as the platform develops and attracts more advertisers.

Unlike typical YouTube advertising, Shorts features interactive elements similar to TikTok, providing a unique advertising experience. Tests indicate Shorts' potential for longer viewer engagement, offering valuable insights for brands like Asics.

Shorts-only campaigns offer distinct advantages, isolating their performance from other YouTube content. This approach positions YouTube Shorts as a competitive player in social media-style advertising, complementing its traditional video formats.

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Amazon Sellers Say Misleading AI Product Reviews Threaten Sales, reports Bloomberg

General

Dec 19, 2023

Artificial Intelligence

Amazon's use of AI to summarise customer reviews has led to inaccuracies, overstating negative feedback and causing concerns for merchants. Some summaries have inaccurately described products, potentially affecting sales.

The AI's inconsistency in highlighting critical feedback, even for highly-rated products, raises questions about the reliability of these summaries. For instance, minor issues are sometimes overemphasised in the AI-generated blurbs.

Merchants and advisory firms, unsettled by these AI summaries, seek a clear process to address inaccuracies. Amazon acknowledges the need for improvement and encourages feedback but currently offers no direct solution for merchants to dispute misleading summaries.

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Alphabet, States Reach $700 Million Deal in Google Play Feud, reports Bloomberg

General

Dec 19, 2023

Alphabet Inc. has settled antitrust claims against Google Play for $700 million, addressing allegations of market dominance in Android app distribution. This settlement, resolving consolidated lawsuits in California, includes policy changes to foster competition and reduce barriers in app markets.

The settlement follows a federal jury's agreement with Epic Games against Google Play's policies. Google was accused by state attorneys general and consumers of anti-competitive practices, leading to inflated app prices.

Alphabet's settlement comprises a $630 million consumer fund and a $70 million state claims fund, concluding agreements reached in September and separate settlements, such as with Match Group Inc. The case was heard in the Northern District of California.

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Microsoft ads team agrees data matching with AudienceProject, reports The Media Leader

General

Dec 18, 2023

AudienceProject has partnered with Microsoft Advertising for audience measurement in the UK and Germany. This collaboration extends to various ad formats, including display, digital video, and Connected TV, offering insights on campaign reach and frequency.

The initiative utilizes privacy-first data matching, allowing brands to analyze Microsoft Advertising performance alongside other platforms like Facebook and YouTube for comprehensive media planning.

Initially available in the UK and Germany, with plans for international expansion, this service meets rising demand for independent campaign measurement on Microsoft Advertising platforms, as highlighted by Brian Meritam Larsen from AudienceProject.

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Agencies are tackling generative AI, but with a little help, reports Marketing Brew

General

Dec 18, 2023

Artificial Intelligence

Generative AI is reshaping advertising, with major agencies like IPG and Dentsu embracing its potential.

IPG, in collaboration with Google Cloud, is developing BrandVoice AI and BrandPortrait AI, using Google's generative AI to craft brand-consistent digital ads and analyze audience data. Dentsu is leveraging Microsoft's Azure OpenAI and Salesforce's Einstein GPT for its own generative AI tools, Dentsu GPT and Dentsu DALL-E, to enhance campaign development and data analysis.

These partnerships provide access to advanced technology and compliance frameworks, crucial for innovating while managing risks in advertising. These developments signify a shift towards more AI-integrated and data-driven advertising strategies within the industry.

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YouTube postpones co-viewing measurement plan, reports Digiday

General

Dec 18, 2023

YouTube has postponed implementing its co-viewing ad measurement from early to late 2024, responding to ad buyer concerns. The delay aims to refine the measurement process and increase transparency. Kate Alessi from YouTube mentioned extending the experimental phase to address these issues.

Ad buyers are skeptical about YouTube's self-reported co-viewing figures, preferring third-party assessments. They question the accuracy of tracking and billing for multiple viewers, especially in targeted advertising campaigns.

Despite initial resistance, industry executives acknowledge co-viewing measurement as an emerging norm in the connected TV advertising space. YouTube's postponement presents a chance to redefine co-viewing standards within the broader streaming context.

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Amazon in Talks to Invest in Diamond Sports, reports WSJ

M&A

Dec 18, 2023

Amazon is negotiating an investment in Diamond Sports Group, the broadcaster of over 40 major U.S. sports teams. This deal could make Amazon Prime Video the streaming destination for Diamond's games, bolstering Amazon's sports content offering.

Diamond Sports Group, facing bankruptcy, is in talks with Amazon for a strategic investment and a multiyear streaming partnership. This could provide Diamond, which holds rights to numerous MLB, NBA, and NHL teams, with a financial lifeline and a digital transformation.

Amazon's potential investment in Diamond Sports Group aligns with its expansion into sports streaming, adding regional games to its Prime Video platform. This move would enhance Amazon's competitive stance against streaming giants like Disney and Netflix.

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Musk’s X Faces First EU Probe Since New Disinformation Rules, reports Bloomberg

General

Dec 18, 2023

The European Union has launched a formal investigation into Elon Musk's social media platform X (formerly Twitter), over potential violations of the Digital Services Act. The probe concerns X's handling of illegal content and disinformation, marking a significant test of EU's regulatory reach over US tech giants.

This inquiry scrutinises X for not adhering to transparency obligations and deceptive user interface design. The focus is on the platform's content management, compliance with its terms, and efficiency of content moderation.

The EU's comprehensive analysis of X will determine any DSA violations, potentially leading to further investigations. This move highlights the EU's commitment to regulate and protect against harmful online content.

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US lawmakers urge Biden to probe EU targeting of tech firms, reports Reuters

General

Dec 18, 2023

A bipartisan group of U.S. lawmakers has expressed concerns to President Joe Biden about the European Union's Digital Markets Act (DMA).

This new regulation, effective from March 2024, labels major U.S. tech firms like Alphabet, Amazon, Apple, Meta, Microsoft, and TikTok's owner ByteDance as "gatekeepers," mandating changes in messaging app interoperability and user choice in pre-installed apps.

The lawmakers' letter to Biden, shared with Reuters, warns that the DMA could harm U.S. economic and security interests. They urge Biden to ensure fair enforcement of these rules, emphasizing the importance of maintaining U.S. leadership in the digital domain and protecting consumer security.

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EU isn't done with its AI Act yet, reports Axios

General

Dec 18, 2023

Artificial Intelligence

The EU's AI Act, aimed at regulating AI, faces delays with its full enforcement pushed to potentially 2027.

The initial agreement was reached on December 8th, but the final text is awaited in February. Key EU nations demand thorough review before finalization, focusing on innovation and security interests.

The Act's enforcement varies by AI application: prohibited practices will see a 6-month delay, high-risk AI uses like credit scoring have a 24-month delay, and AI in regulated sectors like healthcare faces a 36-month delay. The complexity of EU processes, involving 27 nations and multilingual translations, contributes to these postponements.

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Fake TikTok accounts spread disinformation on Russia-Ukraine war to millions, reports CNBC

General

Dec 15, 2023

Fake TikTok accounts, predominantly from Russia, have spread disinformation about the Ukraine war to millions. These accounts, about 13,000 in total, targeted users in Ukraine, Russia, and various European countries with pro-Russian narratives. Some even posed as news outlets, fabricating stories about Ukrainian officials' extravagant purchases post-invasion.

TikTok acknowledged the issue, confirming the removal of all identified fake accounts. This action aligns with their commitment to combat deceptive behaviors on their platform.

This incident highlights the ongoing challenge for social media in controlling misinformation, particularly in geopolitical contexts. TikTok's efforts come amid broader concerns over digital platforms being used for political manipulation.

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Marketing company brags it can listen in on people's whispers using phones and smart speakers to target ads, reports Insider

General

Dec 15, 2023

Cox Media Group (CMG) claimed to have developed "Active Listening," a technology using microphone data from devices for advertising, analyzing "pre-purchase conversations." This was detailed in a deleted blog post, where CMG touted its legality and effectiveness for personalized advertising.

CMG clarified that its businesses do not listen to conversations. Instead, they use anonymized, third-party aggregated data for ad placements. This data is sourced from various apps under user agreement terms.

The revelation sparked privacy concerns, but tech giants like Apple and Google have safeguards against unauthorized microphone access. Apple stated that apps secretly monitoring users would violate App Store guidelines, while Google highlighted Android's preventive measures against non-consensual audio collection.

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Twitch revamps rules on sexual content, reports BBC

General

Dec 15, 2023

Twitch, known for gaming streams, has revised its content policies to allow adult content like nude art, provided it's deemed artistic. This change by Amazon's platform clarifies previously ambiguous rules on sexual content, maintaining a ban on explicit pornography. Angela Hession, Twitch's VP of Customer Trust, highlighted the need for clear guidelines.

The update permits content highlighting breasts, buttocks, or pelvic regions, including body painting and certain dances, if properly labelled. This accommodates Twitch's diverse creative expressions, ensuring streamers understand the rules and viewers have predictable experiences.

Twitch now requires accurate content labelling, with penalties for non-compliance. This shift addresses past confusion, broadening permissible content within viewer experience standards.

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News publisher files class action antitrust suit against Google, citing AI’s harms to their bottom line, reports TechCrunch

General

Dec 15, 2023

A U.S. class action lawsuit has been filed against Google and Alphabet by Arkansas publisher Helena World Chronicle, alleging anticompetitive behavior and misuse of news content.

The lawsuit focuses on Google's AI technologies like Search Generative Experience (SGE) and Bard AI chatbot, which it claims are damaging to news publishers by diverting traffic and ad revenue away from their sites.

The suit argues that Google's AI-integrated search tools could lead to significant losses in web traffic for publishers, potentially up to 40%. Helena World Chronicle seeks compensation and an injunction for Google to gain publisher consent before using their content for AI training, aligning with global antitrust scrutiny on Google's practices.

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Sunak Considers UK Crackdown on Young Teens’ Social Media Use, reports Bloomberg

General

Dec 14, 2023

Advertising To Children

The UK government is contemplating measures to regulate social media use for under-16s, including potential restrictions or bans. A consultation is planned for January to evaluate the impact of social media on children's mental health, though decisions on specific policies are still in preliminary stages.

In response to concerns about child safety online, the UK's Online Safety Act imposes new requirements on social media platforms, including age verification.

The act's implementation follows Meta's move towards encrypted messaging on Facebook, which has sparked safety concerns from the National Crime Agency and criticism from government officials for potentially hindering child abuse investigations.

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News Publishers See Google’s AI Search Tool as a Traffic-Destroying Nightmare, reports WSJ

General

Dec 14, 2023

Artificial Intelligence

Google's integration of AI into Chrome search poses a serious threat to publishers like the Atlantic, risking a significant drop in web traffic. This change could lead to a 75% reduction in site visits from Google searches, disrupting publishers' online visibility and revenue.

The AI search feature, now in testing, might cut publishers' traffic by up to 40%. This development challenges the traditional relationship between Google and content creators, with AI potentially diminishing user clicks on publishers' sites.

Publishers are engaging in critical discussions with Google, seeking to balance AI tool advantages against potential losses. They demand protection for their content and business models in the face of AI's impact on digital publishing.

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Threads is finally available to users in the EU, reports TechCrunch

General

Dec 14, 2023

Five months after its debut, Meta's social network Threads is now accessible in the EU. Mark Zuckerberg announced the expansion, introducing a "Use without a profile" mode on the website for EU users, enabling viewing without interaction capabilities.

Initially, Threads restricted EU access to adhere to local regulations, not offering a web version for direct access. This expansion follows proactive measures to block VPN use by EU users.

The EU launch, indicated by reports and a countdown timer, aims to increase Threads' user base, currently just below 100 million monthly users. Additionally, Threads is experimenting with ActivityPub integration to extend reach on platforms like Mastodon.

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EU asks Apple and Google to clarify app store risk management, reports Reuters

General

Dec 14, 2023

The European Commission is seeking clarifications from Apple and Google regarding risk management on their app purchasing platforms, aligning with the Digital Services Act (DSA) regulations. They must respond by January 15.

This request is part of the EU's broader legal scrutiny under the DSA, affecting over a dozen major tech companies. The DSA enforces new obligations to address illegal content and online security risks.

In addition to risk management, the EU is also inquiring about transparency in recommender systems and online advertising. Non-compliance may lead to formal proceedings by the Commission.

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Ad spend on streaming’s top platforms dropped 8% year over year, per report, reports Marketing Brew

General

Dec 14, 2023

Ad spending on major streaming platforms like Max, Discovery+, and Hulu fell to $1.07 billion in 2023, an 8% decrease from 2022.

This decline is attributed to reduced ad spend by financial advertisers such as Geico and State Farm. Around 47% of this ad spend came from the restaurant, medical, pharmaceutical, finance, retail, and technology sectors, with tech and restaurant companies significantly boosting their investments.

Streaming services, however, face challenges like rising content costs and economic uncertainties. As a response, many platforms, including Disney+, Discovery+, and Hulu, have raised prices, steering subscribers towards more affordable ad-supported tiers.

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Spotify confirms test of prompt-based AI playlists feature, reports TechCrunch

General

Dec 14, 2023

Artificial Intelligence

Spotify is trialing an "AI playlists" feature, enabling users to create playlists with AI assistance.

Discovered by a TikTok user, this option appears under "Your Library" in Spotify's app. Users can input prompts or choose from suggestions, like genre exploration or mood-based music, to generate tailored playlists. This feature reflects Spotify's ongoing investment in AI technology, previously reported by TechCrunch.

Although Spotify hasn't committed to a launch date, their AI investments include a personalised AI DJ and exploration into AI-driven podcast summarisation and music creation. The public release of the AI playlists feature is still uncertain.

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UK regulator probes TikTok over parental controls information, reports FT

General

Dec 14, 2023

Advertising To Children

The UK's media regulator Ofcom is investigating TikTok for possibly supplying inaccurate information about its parental controls. This inquiry aligns with Ofcom's broader mandate to protect children online following the UK's stringent Online Safety Act.

Ofcom's scrutiny focuses on TikTok's Family Pairing feature, which allows parents to monitor their children's TikTok activity. The investigation raises concerns about the platform's adherence to new online safety regulations.

TikTok admitted to providing incorrect data due to a technical issue and is cooperating with Ofcom. The issue underscores the challenges in effectively regulating online platforms, particularly in verifying users' ages and implementing parental control measures.

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Pro-China YouTube Network Used A.I. to Malign U.S., Report Finds, reports NYT

General

Dec 14, 2023

Artificial Intelligence

A network of over 4,500 YouTube videos has been spreading pro-China and anti-U.S. narratives. Utilizing AI-generated avatars and voices, these videos aim to influence global opinion, achieving nearly 120 million views and 730,000 subscribers. The content predominantly promotes China while denigrating the U.S., with quick adaptations to current events.

China's intensified propaganda efforts against the U.S. are evident in this sophisticated and coordinated campaign. The videos blend disinformation with persuasive narratives, marking a significant shift in digital influence operations.

In response, YouTube has closed several implicated channels, underlining their proactive stance against coordinated influence operations. The employment of AI in these campaigns underscores the evolving challenges in combating online disinformation.

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TikTok Quietly Changes User Terms Amid Growing Legal Scrutiny, reports NYT

General

Dec 14, 2023

TikTok's revised terms, moving disputes from arbitration to California courts with a one-year claim limit, are seen as a shield against increasing legal scrutiny. The platform faces growing concerns about its influence on young users and potentially harmful content.

A coalition of state attorneys general is probing TikTok for possible youth mental health harm. Simultaneously, a significant legal case against social media companies, including TikTok, for product liability has been greenlit.

Attorney Kyle Roche, representing guardians and minors against TikTok, disputes the terms, citing minors' inability to consent. These developments signal escalating legal challenges for social media platforms over user welfare, particularly among young audiences.

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Nelson Peltz to Nominate Himself and Former Disney CFO Jay Rasulo to Disney’s Board, reports WSJ

General

Dec 14, 2023

Leadership Transitions

Nelson Peltz, an activist investor, is nominating himself and former Disney CFO Jay Rasulo to Disney's board, escalating his proxy battle with the entertainment giant. This follows Disney's rejection of Peltz's earlier request for a board position.

This conflict marks Peltz's second campaign against Disney in a year, highlighting tensions with Bob Iger, Disney's CEO. Peltz's Trian Fund Management holds nearly 33 million shares in Disney.

Despite Trian's significant shareholding, Disney previously refused to allocate board seats to Peltz or his proposed nominees, setting the stage for a continued corporate struggle.

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Google to test new feature limiting advertisers' use of browser tracking cookies, reports Reuters

General

Dec 14, 2023

Cookie Deprecation

Google is testing a "Tracking Protection" feature in Chrome from January 4, aiming to limit cross-site tracking for 1% of global users. This precedes their planned phase-out of third-party cookies by late 2024, subject to regulatory approval from the UK's Competition and Markets Authority (CMA).

The CMA's concerns focus on the impact of this change on digital advertising competition. Cookies are vital for user tracking and contribute significantly to Google's ad revenue.

The EU is also observing Google's initiative, as advertisers worry about losing personalised ad capabilities. The phase-out might shift power to media agencies with robust data insights.

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Google Will Share Limited Search Partner Site Placement Info With Advertisers, reports AdExchanger

General

Dec 14, 2023

Google is offering advertisers limited insights into their ad placements within its Search Partner Network, responding to an Adalytics report. This action comes after the report revealed ads appearing on inappropriate sites, including those with pirated and adult content.

The Adalytics report highlighted significant lapses in Google's network, uncovering ads on over 2,000 questionable domains. Google is now allowing advertisers to see if their ads appeared on certain problematic sites, yet this transparency covers a tiny portion of the network.

Despite these measures, the issue underscores a larger challenge in ad placement transparency. Google's response, though a step forward, leaves gaps in giving advertisers a comprehensive view of where their ads are shown.

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Privacy complaint takes aim at Musk’s X over EU ads targeted on sensitive data, reports TechCrunch

General

Dec 14, 2023

Elon Musk's X, formerly known as Twitter, is being targeted by a European privacy complaint. Filed by noyb, the complaint alleges X failed to adhere to its advertising guidelines, particularly in prohibiting the use of sensitive personal data like political affiliations for ad targeting.

The complaint was triggered by the European Commission using X's platform for ads targeting users based on sensitive data, violating GDPR and Digital Services Act rules. This has led to concerns about X's compliance and the potential involvement of the Dutch Data Protection Authority and Irish oversight.

The case underscores the challenges platforms face in managing user data and complying with strict European privacy regulations.

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Instagram introduces gen-AI powered background editing tool, reports TechCrunch

General

Dec 14, 2023

Artificial Intelligence

Instagram in the U.S. now offers an AI-powered tool for editing story backgrounds, enabling users to apply preset or custom prompts like “On a red carpet.” This interactive feature includes a “Try it” sticker, encouraging others to experiment with the tool.

Snapchat introduced similar AI functions for premium users, allowing creative image generation and themed backgrounds. Their Snapchat+ service further enhances this with custom prompt-based backgrounds.

Meta expanded its AI technology across all U.S. apps, introducing 28 AI characters and a standalone AI image generator named "Imagine with Meta," utilizing the Emu model.

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McCann Worldgroup’s Suzanne Powers is departing to start her own company, reports AdAge

General

Dec 13, 2023

Leadership Transitions

Suzanne Powers is exiting McCann Worldgroup, where she served as global chief product officer, to establish her own company, focusing on leveraging creativity for business impact. McCann will be her initial client following her departure at the year's end, after over a decade with the agency. Her new venture is set to launch in late January.

During her tenure at McCann, Powers notably held roles like global chief strategy officer and global president, significantly influencing the agency's direction and culture. Daryl Lee, McCann's Global CEO, praised her transformative impact.

Her former positions at McCann will remain unfilled, underscoring her unique contribution to the agency.

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Microsoft exec hints at free ad-supported Xbox Cloud Gaming, reports The Verge

General

Dec 13, 2023

Gaming / Metaverse

Microsoft's Xbox Cloud Gaming service offers free Fortnite streaming, hinting at a future ad-supported model, especially in regions like Africa and Southeast Asia. Tim Stuart, Microsoft Gaming CFO, mentioned a potential format where users watch ads for game streaming access.

Development of Xbox Cloud Gaming has slowed, with plans for supporting existing game libraries and a separate subscription model not materializing. The service, mainly for mobile devices, hasn't expanded beyond Fortnite for free streaming.

Despite these setbacks, over 20 million users have streamed games on Xbox Cloud Gaming. Microsoft also plans to stream PC games and is testing keyboard and mouse support on Xbox consoles.

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Disney is almost sold out of Christmas NFL, NBA, and Rose Bowl ad inventory, reports Marketing Brew

General

Dec 13, 2023

Christmas Day sports broadcasts, especially NFL and NBA games, are increasingly popular with advertisers. Disney's Jacqueline Dobies notes a rise in advertiser participation this year, with NFL's Monday Night Football and NBA games nearly sold out. High-profile NFL matchups, like the Ravens versus the 49ers, are particularly attractive to advertisers, including brands like Allstate and Taco Bell.

The NFL is gaining traction on Christmas Day, a day traditionally associated with the NBA. This shift is drawing more advertisers to NFL games.

NBA games remain a strong attraction for advertisers, bolstered by the league's new in-season tournament. Major sponsors like PepsiCo and Google Pixel are indicative of the NBA's continued appeal on Christmas Day.

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Vivendi to Explore Split Into Three Businesses, Reports WSJ

General

Dec 13, 2023

Vivendi plans to split into three publicly-traded companies, focusing on its Canal+, Havas, and investment sectors. This decision follows a significant conglomerate discount post-Universal Music Group's spinoff in 2021. The restructuring aims to enhance the growth potential of each unit.

The first business will focus on Groupe Canal+, a global film and TV producer with over 25 million subscribers. The second will revolve around Havas, an expanding advertising and communication firm. The third entity is an investment company with a major stake in Lagardère group.

This split is expected to provide each division with the resources needed for development and growth.

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Threads to run tests to make posts available on other social media platforms, reports Reuters

General

Dec 13, 2023

Meta Platforms' Threads app is testing a feature to connect with Mastodon and other platforms using the ActivityPub protocol, enhancing interoperability and user choice, as announced by CEO Mark Zuckerberg. This development aligns with Meta's vision for Threads to support open social networks, aimed at expanding content reach and interaction options.

Mastodon, a decentralized platform, operates on ActivityPub, facilitating varied social media experiences. Threads' integration with ActivityPub allows users to transfer their content to alternative services, reflecting Meta's commitment to flexibility and user autonomy.

Threads, having rapidly surpassed 100 million sign-ups, is poised to launch in Europe in December, indicating significant growth and reach.

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Disney and Comcast increase US ad spending on Instagram after dropping Musk's X, reports Reuters

General

Dec 13, 2023

Walt Disney and Comcast have redirected ad spending to Instagram, distancing themselves from Elon Musk's X (formerly Twitter) due to concerns over antisemitic content. Disney increased its Instagram ad spend by 40%, and Comcast by 6%. Paramount, meanwhile, has tripled its investment in Snapchat.

Musk's endorsement of an antisemitic post on X, despite later apologizing, has led to a significant advertiser withdrawal. Sensor Tower data shows a decline in X's monthly active users and a shift in ad spending trends.

Following these developments, 51 of X's top 100 U.S. advertisers ceased spending on the platform as of November 2023, amid growing preference for visually-driven social media platforms.

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OpenAI and Axel Springer Ink Deal to Use News Content in ChatGPT, reports Bloomberg

General

Dec 13, 2023

Artificial Intelligence

Axel Springer SE has granted OpenAI, the creator of ChatGPT, rights to use its news content for AI model development. The deal involves OpenAI paying for content from Axel Springer's outlets, including Politico and Business Insider. Details of the financial arrangement remain undisclosed.

OpenAI will utilise Axel Springer's news in ChatGPT responses, ensuring transparency with attribution and article links. Axel Springer's CEO, Mathias Döpfner, aims to enhance journalism with AI.

This partnership follows OpenAI's previous agreements with the Associated Press and the American Journalism Project. However, concerns persist among some publishers about AI's potential misuse and compensation for content usage.

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Apple Set to Be Hit by EU Antitrust Order in App Store Fight With Spotify, reports Bloomberg

General

Dec 13, 2023

Apple Inc. faces an EU ban on restrictive App Store rules for music-streaming rivals and a possible fine, potentially up to 10% of annual sales. This follows a Spotify complaint alleging Apple's policies inflate subscription costs. The decision is expected early next year.

EU regulators, led by Margrethe Vestager, target Apple's control over tap-to-pay technology. This move aligns with ongoing scrutiny on Big Tech's competitive practices.

The Digital Markets Act, effective in 2024, will further regulate tech giants, ensuring fair competition. Apple, Meta, and ByteDance seek legal clarity on this act's impact on their business models.

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Disney and Reliance plan London meeting for India media merger talks, reports Reuters

M&A

Dec 13, 2023

Reliance Industries and Walt Disney are planning talks in London to discuss merging their Indian media businesses. The proposed joint venture, with Reliance holding a majority, is yet to finalize details on structure and valuation.

Key executives from both companies will meet to establish a strategic roadmap for the partnership. This move aims to create a major player in India's entertainment industry, rivalling both traditional and streaming services.

The merger highlights Reliance's ambition to expand in media, challenging Disney's influence in India. Although significant, these London discussions are preliminary and not expected to immediately finalise a deal.

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Google, Meta and Qualcomm team up to push for open digital ecosystems, reports Reuters

General

Dec 13, 2023

Alphabet's Google, Meta Platforms, Qualcomm, and other leading tech companies have formed the Coalition for Open Digital Ecosystems (CODE) in response to EU's new tech regulations.

CODE's mission is to encourage open digital platforms and systems in Europe, fostering innovation and growth. They plan to collaborate with various stakeholders to implement the Digital Markets Act, emphasizing digital openness.

The coalition includes global members like Honor, Lenovo, Lynx, Motorola, Nothing, Opera, and Wire. Their focus is on promoting cross-industry collaboration and developing seamless, interoperable digital systems, aiming to enhance Europe's digital competitiveness and innovation landscape.

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Connected TV is the next frontier in the privacy debate, reports AdAge

General

Dec 12, 2023

Connected TV advertising is bracing for privacy regulation impacts, as highlighted in a 4A’s and CIMM report. The report advises marketers to adopt privacy-compliant strategies, emphasizing the complexity of the connected TV ecosystem, which involves various operating systems and manufacturers.

The growing connected TV advertising sector faces the challenge of complying with evolving privacy laws. The report suggests using durable ad tech tools and consent-based measurement approaches, underlining the importance of understanding consent sources in advertising technologies.

To navigate potential regulatory changes, the industry is encouraged to implement privacy-focused methods, such as media mix models and consent-based panels, in connected TV advertising. These strategies aim to balance effective advertising with privacy compliance.

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Meta may delete data from test accounts that found sexual material served to minors, New Mexico AG warns in filing, reports CNN

General

Dec 12, 2023

The New Mexico Attorney General's office alleges Meta shut down its investigative accounts on Facebook and Instagram, hindering a probe into child sexual abuse. They've filed a motion to prevent Meta from deleting potentially crucial data.

Meta faces accusations of creating a haven for child predators, with test accounts revealing minors' exposure to explicit content. The company counters, highlighting its efforts in child safety and collaboration with authorities.

Amidst this dispute, New Mexico seeks a court order to safeguard evidence, underlining Meta's broader challenges with legal actions related to youth safety, mental health, and privacy on its platforms.

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Online retailer Zulily sues Amazon for bullying behavior, reports Axios

General

Dec 12, 2023

Zulily, an online retailer focusing on children's products, is shutting down and has filed an antitrust lawsuit against Amazon. The company, once a high-value startup acquired by QVC, accuses Amazon of manipulating suppliers to inflate Zulily's prices, harming its competitiveness.

The lawsuit claims Amazon's strategy was to falsely present itself as offering the lowest prices. Amazon refutes these claims, emphasising its support for smaller businesses.

The closure of Zulily, involving over 800 layoffs, is underway, with a final sale announced on its website. Neither Zulily nor its owner, Regent LP, have commented on the closure or the legal proceedings.

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Momentum Grows Around Brands Owning Ad-Tech Contracts Amid Supply Chain Murkiness, reports AdWeek

General

Dec 12, 2023

Increasingly, brands are bypassing agencies to forge direct contracts with ad-tech partners, seeking greater control over programmatic supply chains and campaign data. A notable shift observed by the Association of National Advertisers and MediaSense shows over 70% of marketers aiming to establish such direct relationships.

Direct contracts present complexities, yet offer advantages like data ownership and avoiding markups. This trend, however, challenges brands with the intricacies of managing multiple contracts, as highlighted in the ANA study.

The complexity of ad-tech agreements often requires brands to balance direct control with the expertise and broader industry insights offered by agencies. This evolving dynamic in digital advertising underscores the growing emphasis on transparency and data autonomy.

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