In this week’s Week in Review: Snap shares tumble at the company’s earnings update, John Lewis unveils its new retail media platform, and Warner Bros. Discovery negotiates with TV providers to launch Max in the UK.
Top Stories
Snap Stock Sinks 18 Percent at Earnings Update
Snap’s stock tumbled 18 percent following its earnings update on Thursday, after its Q2 revenues and Q3 guidance came in below Wall Street expectations. Revenues climbed 16 percent YoY during Q2, reaching $1.24 billion, with around $1.35 billion expected in Q3.
The Q2 gains were driven by a 16 percent rise in direct response advertising, according to the Snapchat parent company, offsetting a 1 percent decline in brand-oriented ad revenues. “We’ve also learned over time that that brand business can be very volatile, which is again why we focused a lot on investing in the DR business,” said Snap CFO Derek Andersen.
John Lewis Builds Retail Media Platform
John Lewis revealed plans for a new retail media platform this week, enabling brands to connect with customers online. Built in partnership with Epsilon, the platform will enable brands to create and manage their own campaigns, including banner adverts and sponsored product listings, alongside a performance dashboard to measure engagement and sales impact.
“While retailers have long been advertising on their own websites, we want to improve the experience, and make it even easier for customers to connect with the brands and products that meet their needs,” said Jemma Haley, Retail Media Business & Proposition Strategy Lead at John Lewis. “As part of this, we’re providing brands with more targeted and relevant ways to connect with customers. Our shoppers are unique in terms of the ways they research, browse and buy, and we need to be ready to meet them in the moments they are ready to purchase or engage with a brand.”
WBD Holds Negotiations with UK Platforms to Launch Max
Warner Bros. Discovery (WBD) is in early talks with multiple platforms about carrying Max in the UK. The streaming service is set to launch in 2026, when WBD’s exclusive content deal with Sky expires. The US company licenses its shows, such as Game of Thrones and Succession, to the Sky Atlantic channel and NOW streaming service.
Sky is therefore a key part of the discussions, according to the FT, though the Comcast-owned business could lose its current exclusivity. Reports suggest Amazon Prime, Virgin Media and EE are also in negotiations.
The Week in Tech
Outbrain Targets CTV with $1 Billion Teads Acquisition
Outbrain, a content recommendation company, has agreed to aquire Teads, the Altice-owned video advertising business, in a deal valued around $1 billion. Outbrain uses AI to drive content recommendations and performance on the open web. But merging with Teads grants the company access to TV and video publishers, thereby tapping into the growing CTV market. Read more on VideoWeek.
Meta Sees Early Benefits of AI Investment
Meta is beginning to see the benefits of its substantial investments in AI, according to the company’s Q2 earnings, even as it prepares for heavy losses in the coming months. Revenues were up 22 percent YoY in the last quarter, generating $39.07 billion during the three months. By way of contrast, Google ad sales rose 11 percent YoY over the same period. Read more on VideoWeek.
Amazon Grows Ad Revenues but Misses Expectations
Amazon ad revenues jumped 20 percent during Q2, but missed analyst expectations, sending its shares down nearly 8 percent. The company also noted the recent introduction of ads in Amazon Prime Video. “The exciting opportunity for brands is the ability to directly connect advertising [which] has traditionally been focused on driving awareness, as is the case for TV, to a business outcome like product sales or subscription sign-ups,” said Amazon CEO Andrew Jassy.
Connatix and JW Player Reportedly in Merger Talks
Rumours of a tie-up between video tech companies Connatix and JW Player have been reported by Digiday, citing sources familiar with the talks. The report said Court Square Capital Partners, the private equity firm with a controlling stake in Connatix, is understood to be the main source of funding for the deal. Connatix declined to comment on the rumours.
MIQ Acquires Pathlabs
MiQ has acquired Pathlabs, the Media Execution Partner (MEP) that provides end-to-end digital media execution services to independent agencies, for an undisclosed amount. Headquartered in Missoula, Montana, Pathlabs was founded in 2021, and has 100 employees. The company has found success with its Media Execution Partner (MEP) model and supported by a 100-person team, whereby the company serves as an agency extension, managing everything from planning to reporting of performance-based, paid advertising campaigns. In a statement MiQ’s said the acquisition of Pathlabs will open up opportunities for the company with midsize independent agencies.
US Senate Passes Online Child Safety Reforms
The US Senate passed a pair of online child safety bills on Tuesday, as reported by Reuters. The Children and Teens’ Online Privacy Protection Act (COPPA 2.0) and the Kids Online Safety Act (KOSA) passed near-unanimously through the Senate, but face an uncertain fate in the House of Representatives. The legislation would ban targeted advertising to minors and data collection without their consent, while giving parents and children the option to delete their information from social media platforms. “Kids are not your product, kids are not your profit source, and we are going to protect them in the virtual space,” said Senator Marsha Blackburn, a Republican cosponsor of KOSA.
In-Game Ad Spend is “Stubbornly Low” Finds WARC
In-game ad spend remains “stubbornly low”, WARC Media found this week, despite the global gaming sector generating revenues of almost $184 billion every year. According to the report, ‘Gaming: Advertising’s Untapped Opportunity’, the share of advertisers planning to increase spend on gaming has fallen by 20 percentage points over the last three years, from 72 percent in 2021 to 52 percent in 2024. “Gaming is a whole entertainment ecosystem, not a channel, and is stealing share from entertainment platforms,” said Jo Pereira, SVP Strategy, Media Futures Group at EssenceMediacomX. “However, clients haven’t grown up with gaming, and feel less confident with the opportunities.”
Streamr.ai Launches Gen AI Ad Platform for STIRR’s FAST Channels
Streamr.ai, a GenAI video ads business, has partnered with FAST operator Thinking Media to develop a CTV ad platform. The programmatic, self-serve platform is designed to help small and medium-sized businesses (SMBs) reach audiences on STIRR, Thinking Media’s FAST service. The companies said the STIRR-branded GenAI Ads Manager will enable businesses to generate CTV commercials and launch them on STIRR in less than 2 minutes.
Don Lemon Sues Elon Musk Over Cancelled X Show
Broadcaster Don Lemon is suing Elon Musk and X for unfairly terminating his contract. The disgraced CNN anchor was due to host his talk show on the social media platform, but said that Musk cancelled the series after appearing on the first episode. The lawsuit claims the billionaire refused to pay Lemon, after using his name to promote X to advertisers. “The lawsuit alleges fraud, negligent misrepresentation, and misappropriation of name and likeness,” said Shegerian & Associates, the firm representing Lemon.
The Week in TV
Canal+ Revenues Up 4.6 Percent in H1
Canal+ revenues were up 4.6 percent YoY during H1 2024, generating $3.2 billion. The results come as parent company Vivendi plans to list the French media group on the London Stock Exchange. Canal+ is also poised to takeover South African pay-TV company MultiChoice.
Roku Gains on Ads and Content Sales
Roku saw its revenues climb 14 percent YoY during Q2 to reach $968.2 million, driven by its Device (+39 percent) and Platform (+11 percent) revenues. The Platform segment, which encompasses ad sales, content sales and subscription-revenue sharing, made up the bulk of the company’s revenues at $824.3 million. Roku also grew its streaming base by 14 percent compared with Q1, now reaching 83.6 million households.
NBCU Announces Over $1.25 Billion in Olympics Ad Sales
NBCUniversal expects to generate over $1.25 billion in Olympics advertising, the broadcaster announced this week. The estimation exceeds the $1.25 billion NBCU made during the previous Olympics. “The 2024 Paris Games have delivered a uniquely powerful halo for brands at an incredible scale with a highly engaged and passionate audience,” said Mark Marshall, Chairman, Global Advertising & Partnerships at NBCU. “We are proud to have secured the highest Olympic and Paralympic advertising in the history of the Games, and are grateful to our advertisers for their partnership.”
Barb Rumours Fuel Speculation of Ads on Apple TV+
Apple has held talks with UK measurement body Barb, according to The Telegraph, suggesting the firm is planning to introduce ads on Apple TV+. The tech giant has been signalling its intentions to grow its ads business in recent months. In March, the company hired former NBCU ad exec Joseph Cady to expand its ads division.
FAST Channels Remain “Commercially Unproven” in UK Says Ofcom
Less than half of 16-24 year olds in the UK watch broadcast TV in an average week, according to the latest Media Nations report from Ofcom. The study reveals a “stark generational divide” between the younger demographic and older audiences, with broadcast TV continuing to reach UK viewers aged 45-54 (84 percent) and 65+ (95 percent). At the same time, free ad-supported streaming TV (FAST) channels continue to profilerate, with around 650 FAST channels now available in the UK. However, Ofcom said the model remains “commercially unproven”, as their UK user bases remain small. Read more on VideoWeek.
More Than Half of Viewers in English-Speaking Markets Are Watching Non-English Content
The streaming industry is experiencing something of an international content boom, according to the latest report from Ampere Analysis, with more than half of consumers in English-speaking markets now claiming to watch non-English language content. The research suggests that 54 percent of consumers in the UK, US, Australia and Canada watch non-English language content “very often” or “sometimes”, up from 43 percent at the start of 2020. In these markets, regular viewing of international films and TV shows has increased by 24 percent among 18-64 year olds, over the last four years. Read more on VideoWeek.
YouTube Sports Viewing Jumps in Shift to TV Screens
Sports viewing on YouTube is on the rise, the company’s managing director told the Financial Times, as viewership moves from mobile to CTV. YouTube viewers watched more than 35 billion hours of sport content in the past year, according to Neal Mohan, a 45 percent increase on the previous year. “We’ve seen the growth of YouTube being watched, being consumed on television screens,” said Mohan. “It’s not just the largest screen in the house, it’s our fastest-growing screen.”
Disney Cuts 140 Staff at TV Division
Disney has laid off 140 employees (2 percent of its workforce) from its TV division, Variety reported on Wednesday. The cuts will predominantly affect National Geographic, Freeform, and local TV stations. Nat Geo is hit particularly hard, with 60 employees (13 percent of the team) being made redundant.
Sky Launches UK FAST Channels
Sky has introduced six FAST channels on its Sky Glass and Sky Stream devices. The broadcaster is also making Xumo Play, a FAST service co-owned by Comcast and Charter, available in the UK. The new channels are Pick Paranormal, Emergency 24/7, Sky Artist of the Year, Sky Sports Stories, Sky Sports Classics, and Sky Sports Vaults.
The Week for Publishers
Reach Looks to Video and AI for Digital Growth
UK publisher Reach, owner of the Mirror, Daily Star and Daily Express, has seen its digital revenues grow for the first time since 2022. The group reported 6.7 percent YoY digital revenue growth during Q2 2024, signposting “early indicators” of recovery in the ad market. Read more on VideoWeek.
AI Chatbot Perplexity to Share Ad Revenues with Publishers
Perplexity, an AI search chatbot, has announced plans to share ad revenues with publishers. The Perplexity Publishers’ Program will allow publishers to earn a share of the revenue from results where their content is referenced. Time, Der Spiegel, Fortune, Entrepreneur, The Texas Tribune and Automattic (owner of WordPress) are initial partners.
Pinterest Stock Falls at Q3 Guidance
Pinterest revenues jumped 21 percent YoY during Q2, reaching $854 million. However, the social sharing site issued Q3 guidance in the 16-18 percent range ($885-900 million), below analyst expectations. Pinterest’s stock plunged 14 percent as a result, its steepest drop since April 2023.
The Guardian Seeks Voluntary Redundancies in Savings Push
The Guardian has been hit by a wave of voluntary redundancies, according to Press Gazzette, with several prominent editorial staff accepting redundancy packages. The UK newspaper is targeting cost savings of 4-5 percent this year, after advertising and supporter revenue both came in below budget for the 2023/24 financial year.
The Week for Brands & Agencies
Just Eat Cuts Marketing Spend by 15 Percent
Just Eat revenues fell by less than 1 percent during H1 2024, the delivery business announced in its earnings update. The firm said that orders in North America fell by 9 percent YoY, “as a consequence of increasing food prices and the competitive nature of the North American market.” The company also cut its marketing spend by 15 percent in H1, from £252 million in 2023 to £215 million.
Retail Media Still Nascent Says IAB Europe
Retail media adoption remains in its early stages, according to IAB Europe’s Retail Media Committee, with only 50 percent of buyers partnering with a retailer or retail media network (RMN) for more than one year. The report, ‘Attitudes to Retail Media’, found that half of buyers are funding retail media by reallocating linear TV and performance marketing budgets. But 60 percent of respondents still cite the fragmentation of RMNs and the lack of standardisation as significant barriers.
Trust in Gen AI Rises Among CMOs
Trust in generative AI to enhance creativity and innovation is growing, according to Dentsu Creative’s global survey of 950 chief marketing officers. The study found that 49 percent of CMOs doubt that AI could create content that moves us, down from 67 percent in 2023. This year CMOs are also “significantly less likely” to believe that AI may replace their jobs.
Mondelez China Execs Questioned in E-Commerce Investigation
Two execs from the food giant Mondelez China have been been questioned in connection with an alleged e-commerce investigation, Campaign reported this week. No details were given, but the company said the employees have been placed on administrative leave pending investigation results. Mondelēz China also suggested that “parties outside of Mondelēz are involved” in the issue.
Wavemaker Wins L’Oréal EMEA Duties
L’Oréal International Distribution has selected GroupM’s Wavemaker as its EMEA media agency. Wavemaker won the business in a final competition against OMD, according to the agency. The selection expands the L’Oréal-Wavemaker partnership already active in more than 30 markets.
Hires of the Week
WPP Names Ex-BT CEO Philip Jansen as Chair
WPP has named former BT CEO Philip Jansen as its new chair. Jansen will succeed Roberto Quarta who has held the position since 2015.
OMG UK Appoints Charlie Ebdy as CSO
Omnicom Media Group UK has appointed Charlie Ebdy as its first Chief Strategy Officer. Ebdy previously served as CSO at sister agency OMD UK.
Jellyfish Promotes Nick Fettiplace to UK MD
Marketing agency Jellyfish has promoted Nick Fettiplace to UK Managing Director, replacing Rick Lamb after five years in the role. Fettiplace has been at Jellyfish for 13 years, currently serving as Chief Solutions Officer for Earned Media.
This Week on VideoWeek
“You Cannot Magically Run AI Over Assets” Says Overcast HQ’s Philippe Brodeur
More Than Half of Viewers in English-Speaking Markets Are Watching Non-English Content
FAST Channels Remain “Commercially Unproven” in UK Says Ofcom
Reach Looks to Video and AI for Digital Growth
Meta is Better Placed Than Rivals to Benefit From AI Says Enders
Outbrain Targets CTV with $1 Billion Teads Acquisition
Screenforce Meets DMEXCO: What to Expect at Cologne 2024
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George at Asda, Bring it On
