Top Stories
X Brings Down GARM, the WFA’s Advertiser Initiative for Online Safety
GARM (the Global Alliance for Responsible Media), an off-shoot of the World Federation of Advertisers, closed down this week following legal action taken by X, who claimed the group was prompting its members to boycott the social media platform. The lawsuit claimed the advertisers who fled X over its breaches of safety conduct of furthering a “conspiracy” designed to “collectively withhold billions of dollars in advertising revenue from X.” Right-wing social media platform Rumble said it would join the lawsuit, as well as suing advertising giant WPP and its subsidiary GroupM.
X CEO Linda Yaccarino released a video, in which she said claimed that GARM, the WFA and four global advertisers coordinated to demonetise X. Last year CEO Elon Musk said at the Dealbook conference in November 2023, “I hope they stop. Don’t advertise. If somebody is going to try to blackmail me with advertising, blackmail me with money, go fuck yourself. Go fuck yourself. Is that clear? I hope it is.”
Google and Meta Reportedly Collude to Target Teens
Google and Meta secretly colluded to target ads for Instagram to teenagers on YouTube, in direction violation of the company’s own rules for advertising to minors online, according to a Financial Times report this week.
A Financial Times investigation found that Google worked on a marketing campaign for Meta designed to target 13 to 17 year olds on YouTube, with ads promoting Instagram. They were allegedly able to bypass rules by targeting a group of users labelled as “unknown” in its advertising system, which sources said Google knew skewed towards under-18s. Meanwhile, documents seen by the FT suggest steps were taken to ensure the true intent of the campaign was disguised. The project disregarded Google’s rules that prohibit personalising and targeting ads to under-18s, including serving ads based on demographics. It also has policies against the circumvention of its own guidelines, or “proxy targeting”.
Disney to Invest £5 Billion in European Content
Jan Koeppen, President of Disney for EMEA, said the company is committed to spending $1 billion a year over the next five years making TV series and films in the UK and Europe. The company is expected to spend $5 billion over the next five years on films, Disney+, National Geographic and other TV projects produced in the UK and Europe.
The Week in Tech
Ireland’s Data Protection Commissoin Launches Hight Court Proceedings Against X
Ireland’s Data Protection Commission has launched High Court proceedings against Twitter International Unlimited Company over concerns about how the personal data of millions of European users of the “X” platform is being processed. The DPC says it concerns centre around the use of this data, in public posts by X users, in European Union/European Economic Area to train artificial intelligence systems utilised by X, particularly with regard to ‘Grok’, the company’s ‘enhanced search’ solution that makes use of generative AI.
US Judge Rules Against Google in Search Antitrust Case
Google’s search dominance has been obtained by monopolistic practices, a US judge ruled this week, including revenue sharing agreements (RSA) that make Google the default search engine on the most commonly used devices. In 2021, those payments totalled more than $26 billion. Read the full story on VideoWeek.
X Accused of Fuelling UK Race Riots
Elon Musk could be summoned before British MPs over X’s role in riots that have taken place across the UK over the last week, as well as his own incendiary comments about the violence.
Labour MPs Chi Onwurah and Dawn Butler, both of whom are candidates to chair parliament’s science, innovation and technology committee, both told POLITICO they’d question Musk X and other technology executives about the role of social media platforms in fuelling misinformation and disinformation.
Musk has spent days complaining about British politicians over the riots, and got into a war of words with UK Prime Minister Keir Starmer over his government’s response to them, after claiming the UK was heading for civil war.
ICO Puts 11 Social Media and Video Sharing Companies on Notice for Children’s Privacy Violations
The Information Commissioner’s Office (ICO), the UK’s data protection authority, has put 11 social media and video sharing companies on notice for “poor children’s privacy practices”. The ICO did not name the firms in question, but said the organisation’s Tech Lab reviewed the children’s privacy practices of 34 social media companies and video sharing platforms (VSP). That means one-third of the businesses investigated fell short of the ICO’s standards. Read the full story on VideoWeek.
CTV Continues to Drive Growth for Magnite
Magnite beat the high end of their total and CTV top line guidance in the second quarter, with contribution ex-TAC (excluding ‘traffic acquisition costs) for CTV exceeding the high end of the company’s range. In spite of making a net loss of $1.1 million for the quarter, CEO Michael Barrett pointed to a variety of new partnerships that he believes will generate additional revenue later in the year, most notably the launch of Netflix’s programmatic offering, a deepened relationship with Roku, a commerce media partnership with United Airlines and the integration of Magnite’s ClearLine into Mediaocean, which enables advertisers to book directly.
- Revenue of $162.9 million, up 7 percent year-over-year
- Contribution ex-TAC of $146.8 million, up 9 percent year-over-year
- Contribution ex-TAC attributable to CTV of $63.0 million, up 12 percent year-over-year, compared to guidance of $59.0 to $61.0 million
- Contribution ex-TAC attributable to DV+ (Magnite’s display and video product, which also encompasses native, audio and DOOH) of $83.8 million, up 7 percent year-over year, compared to guidance of $83.0 to $85.0 million
IAS Eyes Up Former Oracle/Moat Clients
Integral Ad Science (IAS) is “playing to win” business from Oracle, IAS CEO Lisa Utzschneider said during the company’s Q2 earnings call. Oracle is due to shutter Moat, its ads verification business, next month, leaving brands and publishers without a brand safety partner. Last week, verification rival DoubleVerify claimed to have snapped up former Moat clients, including Pepsi and AB InBev.
TikTok Withdraws Rewards Scheme in EU Over Addictive Behaviour Concerns
TikTok has agreed to withdraw its TikTok Lite rewards programme in the EU, in order to comply with the Digital Services Act (DSA). The European Commission demanded a risk assessment after the European launch of the scheme, which rewards users for performing certain tasks, such as watching videos and liking content. The EU was concerned about this stimulating addictive behaviour and impacting users’ mental health.
Vevo to Sell CTV Inventory Via Nexxen’s SSP
Vevo, a music video network, has partnered with Nexxen to sell CTV inventory through the ad tech firm’s SSP. The move grows Vevo’s programmatic footprint, according to the company, opening its inventory to a wider variety of advertisers. “With Nexxen’s unique tech offerings and incremental demand, we’re opening up Vevo’s sought-after ad inventory to new buyers, while continuing to drive our programmatic business forward,” said Rob Christensen, EVP Global Sales at Vevo.
Reddit Acquires Memorable AI, an Ad Optimisation Business
Reddit has agreed to acquire Memorable AI, an ad creative optimisation platform, for an undisclosed amount. Memorable AI’s tools will enable Reddit advertisers to enhance their campaign planning and performance, according to the social sharing company. “Memorable AI has a proven track record for optimising ad creative to drive the best possible results before advertisers run a single ad,” said Reddit COO Jen Wong. |This acquisition allows Reddit to accelerate our work in optimising, generating, and selecting ad creative to deliver even better results for advertisers.”
Google Adds YouTube Reporting to Performance Max
Google has added new YouTube reporting capabilities to its Performance Max campaign manager, alongside new generative AI features, including asset generation and image editing tools. The reporting updates will show users individual YouTube video URLs where PMAX ads were served, “helping you ensure that your ads appear in brand-suitable places.” Last year the company was alleged to have served PMAX ads on a variety of dubious websites, though these could continue to sit outside the remit of PMAX reporting.
Roku Partners with XR Extreme Reach for Outcomes Measurement
Roku has expanded its partnership with XR Extreme Reach, an ad tech company, to connect Roku ads with performance outcomes. The partnership enables advertisers to track engagement, conversions and sales from their Roku ads. “Partnering with XR allows us to drive better performance for our brand partners,” said Miles Fisher, Sr. Director, Strategic Advertising Partnerships at Roku.
The Week in TV
Disney Turns Streaming Profit Ahead of Expectations
Disney has turned a profit from its streaming business earlier than expected, generating profit of $47 million in the latest quarter. Total revenues at the company were up 4 percent YoY during the three-month period, though its Parks division came in lower than expected. “This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC, as we achieved profitability across our combined DTC streaming businesses for the first time and a quarter ahead of our previous guidance,” said Disney CEO Bob Iger.
Warner Bros. Discovery Looks to Avoid “Nuclear Option” of Break-Up
Warner Bros. Discovery (WBD) is cooling on the idea of splitting its TV networks from its studio and streaming division, according to the FT. Last month, WBD CEO David Zaslav was reportedly weighing up all options to reverse the company’s tumbling share price, including breaking up the business. Now executives are seeking to avoid the “nuclear option”, looking instead to offload smaller assets, including Polish broadcaster TVN or a stake in WBD’s video games business.
Netflix Lowers Ad Prices
Netflix is lowering its ad prices, Adweek has heard from buyers, dropping its CPMs from around $29-35 to $20-30. Netflix initially came to market with $65 CPM in 2022. The price drop comes as the search giant begins programmatic partnerships with The Trade Desk, Magnite, and Google’s Display & Video 360.
Fubo Revenues Jump 26 Percent
Fubo, a sports streaming service, has posted 26 percent YoY revenue growth for Q2 2024. Paid subscribers in North America rose 24 percent YoY to reach 1.45 million, while average revenue per user (ARPU) climbed five percent to hit $85.69. Ad sales revenue also increased 14 percent. The company is currently suing Disney, Fox and Warner Bros. Discovery over its upcoming sports streaming service, Venu Sports, calling the joint venture a “sports cartel.”
Netflix UK Ad Tier Has Higher Proportion of Users Than US
Netflix’s ad tier accounts for 15 percent of its UK user base, according to Ampere Analysis, higher than its 11 percent uptake in the US. The analysis firm noted that US customers tend to use the cheaper tier to “stack” multiple streaming services. “Conversely, in the UK, the ad tier has been particularly effective in capturing consumers who previously did not subscribe to any SVOD service, likely due to its lower price point,” said Lottie Towler, Principal Analyst at Ampere Analysis.
Xperi Revenues Fall 6 Percent
Xperi, the TiVo parent company, saw its revenues fall 6 percent YoY during Q2 2024, but improved profitability over the quarter. “Our growing TiVo OS and video-over-broadband footprint is setting the stage for future monetisation, and we expect this will be a core element of our long-term revenue growth and margin expansion,” said Xperi CEO Jon Kirchner.
The Week for Publishers
New York Times Grows Revenues and Digital Subscribers
The New York Times posted a 5.8 percent YoY revenue increase for Q2, adding around 300,000 new digital subscribers during the quarter. The NYT now has more than 10.8 million subscribers, 10.2 million of which are digital-only subscribers. The publication is aiming to reach 15 million subscribers by the end of 2027.
Financial Times and Axel Springer License Content to Prorata.ai
The Financial Times, Fortune, Axel Springer and The Atlantic have agreed to license their content to Prorata.ai, an AI start-up planning to share revenues with publishers each time their content is used to generate an answer. According to Press Gazette, Prorata.ai is aiming to launch its chatbot in the autumn, and will share half its subscription revenues with its licensing partners.
Future plc Shutters Two TV Trade Publications
Future plc is ending the publication of two media industry trade publications. Broadcasting + Cable, which has been running since 1931, will close its doors following the publication of the September print issue, whilst Multichannel News will also be closing, having been in operation since 1980. The moves come just a couple of months after Informa plc shut down Digital TV Europe (DTVE) after 40 years in business.
The Week for Brands & Agencies
WPP Downgrades Full-Year Forecast
WPP revenues declined by one percent in H1 2024, with a 0.5 percent decline in the second quarter. The holding company downgraded its full-year guidance to between 0 and -1 percent. WPP also confirmed the sale of its controlling stake in FGS Global, a financial consultancy, to the investment firm KKR, for $1.7 billion. “We have seen pressure in China and in our project-related businesses which, together with an uncertain macro environment, has led us to moderate our expectations for the full-year,” said WPP CEO Mark Read.
New Business Drives Revenue Growth at Stagwell
Agency group Stagwell reported 6 percent YoY revenue growth during Q2, reaching $671 million. The company saw a surge in new business amounting to $113 million, driven by 42 percent growth in its Advocacy sector. Revenues at in-house tech unit Stagwell Marketing Cloud also climbed by 13 percent YoY.
AA Reviews Media Account
The AA, the British motoring association, has launched a review of its media account, worth £11.8m in billings in 2023. Stagwell agency Goodstuff has been the AA’s media agency of record since 2018.
Apple Pulls Ad for Offensive Depiction of Thailand
Apple has pulled an ad in Thailand and issued an apology, after the work was accused of depicting the nation as underdeveloped. Set in Bangkok and Rayong, the 10-minute film was online for two weeks before being pulled. “Our intent was to celebrate the country’s optimism and culture, and we apologize for not fully capturing the vibrancy of Thailand today,” the company said in a statement.
This Week on VideoWeek
ICO Puts 11 Social Media and Video Sharing Companies on Notice for Children’s Privacy Violations
Acceptance (Not Enjoyment) of Ads is Driving Streaming Growth, Finds Kantar
The Buy-Side View: Q&A with Wavemaker’s Sam Olive
Ad of the Week
Body Form, Never Just a Period
