In this week’s Week in Review: WPP reveals its financial results, a French privacy complaint is brought against Apple, and RTL confirms its in talks to sell its stake in M6.
Top Stories
RTL Confirms Talks Over Sale of Stake in France’s Groupe M6
RTL today confirmed that it is in talks about selling its controlling stake in French broadcasting company Groupe M6. The move comes as the group reported a 26 percent drop in annual core profit. The company’s profit has been negatively affected by the coronavirus pandemic.
“We are currently reviewing such options for our controlling stake in the French broadcaster Groupe M6, with a view to creating value for our shareholders,” CEO Thomas Rabe said in a statement.
Rabe also heads up RTL’s controlling shareholder Bertelsmann. He is undertaking a wider restructuring of the German publishing group . Rabe approached potential bidders in January about the sale of M6. He stated a case for consolidation but also warned there could be no certainty that this would lead to any type of agreement or transaction.
WPP Reveals “Remarkably Resilient” Financial Results
WPP released its preliminary results for 2020 yesterday, with the results revealing a 8.2 percent decline in like-for-like revenue, minus pass through costs, in 2020. However, the group will resume share buybacks as it experienced a 6.5 percent decrease in Q4, which was better than market expectations.
The company cut debt to its lowest level since 2004, decreasing it from £5 billion two years ago, to a current figure of £700 million. The group will now immediately resume the buyback to shares that are related to the sale of Kantar in 2019.
Mark Read, chief executive, called the group’s results “remarkably resilient”.
“While revenue was significantly impacted as clients reduced spending, our performance exceeded our own expectations and those of the market throughout the year,” Read said, “There is no doubt that the actions we took during the previous two years to transform and simplify the business and reduce debt – to a 16-year low at the end of 2020 – played a crucial role in the strength of our response.”
Privacy Complaint Filed Against Apple in France
A French lobby representing tech startups has filed a privacy complaint against Apple. The complaint, made to data privacy watchdog CNIL, alleges that the latest version of iOS is collecting data without users’ permission.
France Digitale, which represents entrepreneurs and VCs, alleges that Apple broke EU data privacy rules by not asking a user’s consent to receive targeted ads on its own system. The complaint argues that while iPhone owners are asked for consent for whether they allow installed apps to gather identifiers, Apple’s default settings allow the company to gather its own data without asking for the user’s permission.
“The allegations in the complaint are patently false and will be seen for what they are, a poor attempt by those who track users to distract from their own actions and mislead regulators and policymakers,” Apple said in a statement.
The French complaint comes after Austrian privacy advocacy group Noyb, filed a complaint with data protection watchdogs in Germany and Spain back in November which alleged that Apple’s tracking tool illegally enabled the company to store users’ data without their consent.
The Week in Tech
Amazon Overtakes Samsung as CTV Device Market Leader
Amazon overtook Samsung in Q4 2020 to become the market leader in CTV devices. The CTV device market (which includes smart TVs, OTT devices and games consoles) had its best ever quarter at the end of last year, reaching a record 109 million units sold, according to research from Strategy Analytics’ TV Streaming Platforms service. Read the full story on VideoWeek.
IAB Tech Lab Backs Alternate Identifiers in Project Rearc Standards
IAB Tech Lab this week released a set of standards for running privacy compliant targeted ad campaigns, which include specifications for using alternate identifiers tied to a user’s email address or phone number. The standards have been developed under ‘Project Rearc’, IAB Tech Lab’s effort to help the industry prepare for the sunsetting of third-party cookies on Chrome in less than a year’s time. Read the full story on VideoWeek.
IAB to Publish Guidelines for Use of AI in Advertising
The IAB is releasing new guidelines on the best use of AI in digital advertising. The industry body will focus its AI Standards Working Group on developing artificial intelligence (AI) standards, best practices, use cases, and terminologies. The guide is designed for those already using AI or those seeking to teach them how to use it in their business to their best advantage as well as how to use the technology responsibly.
Facebook Asks for Antitrust Suits to be Dismissed
Facebook has asked for antitrust lawsuits brought against it in Washington to be dismissed. Facebook argued to a federal judge on Wednesday that the lawsuits, brought against it by the Federal Trade Commission (FTC) and state attorneys general, have no basis in arguing that it suppressed competition. In order to dismiss the case, Facebook will need to demonstrate that the plaintiffs’ factual allegations about the nature of the marketplace, even if accepted as true, don’t establish a valid legal claim.
This case follows legal proceedings brought against Facebook in December by the FTC and 46 states. In that case, the plaintiffs alleged that Facebook broke the law to preserve its monopoly status by freezing out and buying up potential competitors.
T-Mobile to Automatically Opt Customers into Data Collection
T-Mobile will automatically opt-in its customers to sharing their mobile and web data with advertisers. The mobile carrier, which is the second-largest in the US, made the announcement in a recent Privacy Policy update. This new policy will also affect Sprint customers who acquired in the merger between it and T-Mobile in 2020, reports the WSJ. Sprint had previously shared this kind of data from users who opted into its third-party ad programme.
The Week in TV
ITV’s Revenue Dropped 16 Percent in 2020, But SVOD, Planet V and VOD All Grew
ITV published its full year results for 2020 this week, revealing that despite the negative impact of COVID on the broadcaster’s revenues, its SVOD service saw growth over the last year and advertising grew across its AVOD properties. ITV saw its overall revenues for 2020 drop by 16 percent to £2.78 billion. But despite an 11 percent drop in broadcast advertising revenue, VOD advertising revenue went up by 17 per cent in 2020. Read the full story on VideoWeek.
Disney+ Reaches Over 100 Million Subscribers
Disney announced at a shareholder meeting this week that its SVOD service Disney+ has now reached over 100 million subscribers in its first 16 months, making the service on track to meet its target of 260 million subscribers by 2024 according to the Wall Street Journal.
BARB Updates BVOD Planner
UK measurement body BARB this week launched updates to its BVOD planner tool. Improvements to the tool now enable the user to more effectively plan campaigns by optimising budgets across linear and BVOD platforms, according to BARB. And planners also now have the ability to plan campaigns delivered on specific devices.
Royal Interview Draws 12.4 Million UK Viewers
Over 12 million viewers in the UK tuned in to ITV’s broadcast of Prince Harry and Meghan Markle’s interview with Oprah Winfrey on Monday, according to ITV. Over in the US, CBS’s broadcast of the interview drew an audience of 17.1 million, according to preliminary Nielsen data.
AVOD Platforms to Grow to 18 Billion
Advertising video-on-demand platforms (AVOD) are expected to grow to $17.8 billion by 2025, according to MoffettNathanson Research. This figure represents a significant growth for the market as it was estimated to come in at $4.4 billion in 2020. Hulu is set to remain the market leader. It currently has $2.5 billion of the market and is predicted to grow to $5.3 billion by 2025.
Disney and NHL Sign Seven-Year Multiplatform Deal
Disney and the National Hockey League announced what they called a “groundbreaking” deal on Wednesday. The multiplatform deal will bring ice hockey games to ABC, ESPN and streaming platforms. The deal will last for seven years and will begin at the start of the NHL’s 2021/22 season. Although the financial specifics of the deal have not been announced, it is widely reported to be worth between $2 billion and $2.5 billion.
Peacock Lost $914 Million in 2020
Comcast’s new streaming service, Peacock lost the company $914 million in 2020. The figure was disclosed in a Securities and Exchange Commission filing on Monday. The start-up streaming service was launched on 15 April last year and generated $118 million for Comcast.
DirecTV Loses Three Million Customers in 2o20
DirecTV, a US satellite TV company lost 3.033 million customers last year, according to Leichtman Research Group (LRG) estimates. The losses experienced by the company represented over half of all cord-cutting in the US last year. DirecTV has struggled since it was bought for $49 billion by AT&T’s $49 in 2015.
The Week in Publishing
BuzzFeed Lays Off 70 HuffPost Staff
BuzzFeed this week laid off 70 HuffPost staff, less than a month after the two completed their merger. Forty-seven staff were cut from HuffPost’s US offices, while HuffPost Canada has been completely shut down. BuzzFeed CEO Jonah Peretti said the layoffs were a cost-cutting measure, as HuffPost recorded a $20 million loss last year.
Facebook Lowers Barriers on Video Monetisation
Facebook has lowered the requirements for creators to start monetising videos, and is now allowing creators to monetise all forms of video on the platform, including short-form. Videos of one minute or longer can now show ads, down from the previous limit of three minutes.
US Lawmakers Propose New Protections for News Publishers
A bipartisan group of US legislators have proposed new laws which would make it easier for news publishers to collectively negotiate with the likes of Facebook and Google around payment for content. The laws would institute a four year relaxation of antitrust laws which currently bind news publishers, which would allow them to collaborate more effectively to lobby for better terms from the tech giants.
Publishers Risk Losing $10 Billion from Cookie Changes says IAB
Industry trade group the IAB has warned in its annual state of data report that publishers could lose $10 billion as a result of the loss of third-party cookies on Chrome and Apple’s restrictions on its IDFA identifier. “Publisher revenue is really in jeopardy,” said Orchid Richardson, senior VP, programmatic and data centre, IAB. “It’s at $10 billion, we’re forecasting that they’re going to lose, because we’re not going to be able to do audience targeting and leveraging third-party data, if we don’t come up with a solution.”
OMG Granted Early Access to Reddit Ad Products
Reddit and Omnicom Media Group (OMG) this week announced a new partnership which will see OMG get early access to new ad products and features on Reddit. Under the agreement, OMG’s agency brands including Hearts & Science, OMD, PHD and Resolution will get privileged access to Reddit’s advertiser-facing tools. These will include Reddit’s creative strategy team, education and training tools, measurement and reporting data, and Reddit’s insights capability, as well as early access to new ad formats. Read the full story on VideoWeek.
The Week for Agencies
GroupM and PubMatic Announce Preferred Partnership Deal
PubMatic, a sell-side advertising company, today announced it is partnering with GroupM, WPP’s investment group. The global partnership will allow GroupM access to more video and display advertising inventory across CTV/OTT, mobile app, mobile web, and desktop environments, while it will allow PubMatic’s publishing partners access to GroupM’s portfolio of advertisers. Read the full story on VideoWeek.
UM Touts “Futureproof” Model
IPG media agency UM has been touting its “futureproof” market positioning to clients, following structural changes which it says place more focus on speed, diversity, and ethics. “The beauty of our Futureproof model is that it is borderless and can draw on the brilliant and diverse capabilities across the whole of our region, giving clients access to the specialists they need for any given future outcome,” Rachel Forde, chief executive of UM UK, told Campaign.
Stagwell Reports 67 Percent Revenue Growth in Q4
Marketing group Stagwell reported 67 percent revenue growth this week in its first public earnings call, as the company prepares to complete its merger with MDC Partners. Stagwell partner Jay Leveton said on the call that Stagwell’s strategic acquisitions mean the company is well placed for growth. “We have avoided the alphabet soup issue of having too many overlapping brands and the myriad reporting units currently plaguing the legacy holding companies,” said Leveton.
Nestlé, Unilever and Mondelēz Back Google’s FLoC
Advertisers including Nestlé, Unilever and Mondelēz have lent their support to Google’s privacy-focused advertising tools created within its Privacy Sandbox, according to Jerry Dischler, VP and GM for ads at Google. Agencies including Omnicom, Accenture Interactive and MightyHive have also thrown their weight behind Google’s sandbox proposals, according to Dischler.
Pernod Ricard Launches UK & Ireland Media Review
Drinks maker Pernod Ricard is putting its UK & Ireland media business up for review, according to Campaign. The account, currently held by Havas Media, is worth around £10 million.
Unilever Bans the Word ‘Normal’ from Beauty Products
FMCG giant Unilever has banned the word ‘normal’ from its health and beauty products, in an effort to increase inclusivity within the beauty industry. Unilever has also committed to no longer altering models’ body shape, size, proportions or skin colour across its brand advertising and influencer campaigns.
PinPoint Media Accepts Cryptocurrency
UK content agency PinPoint Media has started accepting cryptocurrencies Bitcoin and Ethereum as payment for its services, Campaign reported this week.
Hires of the Week
Reddit Names Drew Volero as CFO
Reddit has named former Snap Inc executive Drew Volero as its first CFO. Vollero was the first finance chief of Snap and helped it transition to going public.
Mediacom Hires Pair of Execs to Lead Investments, People
Mediacom has hired two industry veterans from rival holding companies to join its US leadership team. Liza Davidian joins as evp, investment and activation from OMD, while Yorlene Goff joins from Publicis Spine and will take up the role of executive director, people.
Snap Makes Promotion to Head of Policy Partnership and Social Impact
Snap has promoted Sofia Gross to Head of Policy Partnership and Social Impact. Gross has been with Snap since 2015 and has headed up initiatives like the company’s voting drive.
Comcast Advertising Hires New Chief Growth Officer
Comcast Advertising has named Pooja Midha as its first chief growth officer. Midha is currently TrueX President.
This Week on VideoWeek
Apple’s SKAdNetwork Explained, read more on VideoWeek
CTV Will Be the Best Place to Target Audiences in Post-Cookie World says Publica’s New CEO Ben Antier, read more on VideoWeek
IAB Tech Lab Backs Alternate Identifiers in Project Rearc Standards, read more on VideoWeek
Can Niche Streaming Apps Go It Alone or Will They Succumb to Consolidation? read more on VideoWeek
GroupM and PubMatic Announce Preferred Partnership Deal, read the more on VideoWeek
In-Game Ads are Just the Beginning of a Much Bigger Opportunity in Gaming, read more on VideoWeek
OMG Granted Early Access to Reddit Ad Products, read more on VideoWeek
Ad of the Week
We Play Real, Nike, Wieden+Kennedy
