The WIR: Publicis Acquires Mars United Commerce, ITV Launches GenAI Ad Tools for SMEs, and the FTC Accuses Social Platforms of Lax Privacy Controls

In this week’s Week in Review: Publicis buys Mars United Commerce, ITV launches new generative AI tools for SMEs, and the FTC accuses social platforms of widespread surveillance.

The Week in Tech

Snap Updates Video Recommendation Algorithm to Compete with TikTok and Instagram

Snap is redesigning the Snapchat app to better compete with TikTok and Instagram, the company announced at its annual Partner Summit. The changes include updating its recommendation algorithm for video content, and combining its existing friends and creator video feeds into a single feed. “Right now our community has to go to two different places to get the content that they love from the creators they follow and of course from areas of interest that they’re discovering,” said Snap CEO Evan Spiegel. “That’s not only a challenge in terms of user interface, it’s also been a challenge historically on the ranking recommendation, because those ranking systems were separate.”

VideoAmp Reports $1 Billion Transacted on its Currency

VideoAmp, a media measurement firm, has said $1 billion in media dollars have been guaranteed using VideoAmp as currency, forecasting $1.5 billion by the end of the year. The currency has been adopted by agencies (including OMG and IPG) and broadcasters (including NBCUniversal, Paramount and Warner Bros. Discovery) seeking alternative measurement metrics to industry standard Nielsen. “Integrating VideoAmp’s state-of-the-art measurement tools into our Olli platform has delivered extraordinary levels of growth, efficiency, and execution to our partners’ cross-platform Data Driven Video campaigns across WBD’s iconic portfolio of brands and programming,” said David Porter, Head of Ad Sales Research, Data, and Insights at Warner Bros. Discovery.

EU Unlikely to Order Breakup of Google’s Ad Tech Business, Sources Say

EU antitrust officials ordering the breakup of Google’s ad tech business is unlikely, according to sources cited by Reuters, owing to the complexity of such a divestment. EU regulators are due to issue a decision over Google allegedly favouring its own advertising services in the coming months, with a hefty fine thought to be headed Google’s way – though failure to comply with competition rules could result in a breakup further down the line. Forcing the company to sell parts of its ad tech business is also one of the remedies being considered by the Department of Justice in an ongoing trial in the US.

Instagram Introduces Teen Accounts to Protect Against “Inappropriate Experiences”

Meta has introduced Instagram Teen Accounts, designed to limit who can contact teen users and the content they see. Teenage users will automatically be placed on Teen Accounts, and users under-16 will require parental permission to alter settings. The accounts also allow users to select the topics that appear in their Explore feed. “We know parents want to feel confident that their teens can use social media to connect with their friends and explore their interests, without having to worry about unsafe or inappropriate experiences,” the company said.

IAB Releases First In-Store Retail Media Standards

IAB and IAB Europe have released the first industry definitions and measurement standards for in-store Retail Media, including recommended formats for in-store ad placements and standardised classification of key areas within stores where media can be deployed. The standards are open for public comment until 1st November 2024. “The rapid growth of in-store digital Retail Media demands a unified approach to measurement and standardisation across markets,” said IAB Europe CEO Townsend Feehan. “By introducing these first-ever measurement standards in collaboration with IAB, we aim to not only drive consistency and transparency in this space but also help retailers, brands, and technology providers unlock new revenue streams. These standards are critical in our collective effort to make Retail Media a more accessible and integrated part of digital advertising strategies across Europe and beyond.”

EU Court Repeals Antitrust Fine Against Google for Search Ad Dominance

The EU General Court has repealed an antitrust fine against Google, after the tech giant challenged the €1.49 billion penalty. In 2019 the European Commission found that Google had abused its dominance to prevent websites from using alternative publisher platforms to its AdSense network for search ads. The Court mostly agreed with the ruling but annulled the fine, arguing that the Commission had not demonstrated that Google’s practices had deterred innovation, strengthened its dominant position for online search advertising, or harmed consumers.

Google Ads Adds GenAI Tools to Performance Max

Google Ads has announced updates to its generative AI tools at DMEXCO, including upgrades to Performance Max, the tech giant’s AI-driven performance tool. The update includes new languages for asset generation, improved asset reporting and recommendations, and campaign-level negative keywords – enabling advertisers to avoid appearing next to specific search terms. “We’ve heard your feedback,” said Brendon Kraham, VP of Search and Commerce, Global Ads Solutions at Google. “More controls and insights remain your top request when it comes to using AI in your advertising. And with generative AI tools, you want more ways to shape the outputs to align with your brand.”

YouTube Adds GenAI and CTV Tools for Creators

YouTube announced a series of updates at its ‘Made on YouTube’ event in New York. These include the integration of Veo, Google DeepMind’s AI video generation model, into its Dream Screen product, which allows users to generate backgrounds in YouTube Shorts. Creators will also be able to organise their content into seasons and episodes for the YouTube CTV app.

The Week in TV

MFE Posts Advertising Gains Against “Extremely Unstable” International Backdrop

MFE, the Berlusconi-owned European media group, has published its financial results for the first half of 2024, reporting a 7.8 percent YoY uptick in revenues. Advertising revenues were up 6.7 percent YoY, signalling a stronger European TV ad market than the first half of 2023. Unlike many other broadcasters, MFE is almost entirely dependent on advertising; the group generated €1,434.2 million in ad revenue in H1 2024, out of €1,476.5 million in consolidated net revenue. Regardless, the group acknowledged ongoing macroeconomic volatility affecting the European media market, noting the “drastic” job cuts that have hit much of the broadcasting sector. Read more on VideoWeek.

Roku Launches Self-Serve Ad Platform for Streaming Inventory

Roku has launched a self-serve ad platform, Roku Ads Manager, enabling advertisers to buy and optimise campaigns across all Roku streaming inventory. Its capabilities include refining campaigns for different geolocations, targeting audience segments, and importing creative assets from other channels, including social media. The launch makes Roku the latest streaming company to introduce its own self-serve ad manager, following similar moves by Paramount and NBCUniversal’s Peacock.

Paramount Advertising Hit by Job Cuts

Paramount has begun to make layoffs at its advertising division, Deadline reported on Tuesday. Last month the company started cutting 15 percent of its US workforce, as part of plans to save $500 million in costs. The move comes ahead of Paramount’s merger with Skydance Media.

UKTV Joins Freely in Pivot to Streaming Strategy

UKTV, the UK commercial broadcaster, this week announced it has joined Freely, the collaborative streaming service from the UK broadcasters. The move sees UKTV bring its streaming service, recently renamed U, to the joint broadcaster app. As well as the U streaming service, Freely will host UKTV’s live channels, now called U&Dave, U&DRAMA, U&W and U&YESTERDAY. The networks join Freely’s line-up of live and on-demand content from the BBC, ITV, Channel 4 and Channel 5, alongside STV and S4C. Read more on VideoWeek.

Disney and DirecTV Reach Distribution Deal with “Unbundled” Package Options

Disney and DirecTV have reached an agreement to restore the former’s channels, most notably ESPN, to the satellite TV platform. The deal is designed to end a carriage dispute that saw almost 11 million US homes lose access to the channels on 1st September, ahead of a highly anticipated college football game. DirecTV accused Disney of forcing distributors to pay for unwanted channels through its “bundling” clauses, instead of allowing them to offer genre-specific packages to subscribers. The new agreement allows DirecTV to offer unbundled programming packages, including sport-centric options, as well as including Disney+, Hulu and ESPN+ in certain deals.

Netflix in Talks to Stream ‘Hot Ones’ Live

Netflix is looking to expand its live content slate, according to Bloomberg, with live versions of the popular YouTube show Hot Ones. The streaming giant is reportedly in talks with BuzzFeed, owner of the celebrity interview/hot wings-eating series. An agreement is expected this month, whereby Sean Evans would host several live episodes created specifically for Netflix.

TF1+ Adds ARTE and A&E Content

TF1 has announced the addition of two new TV networks to its TF1+ streaming platform: ARTE, a European arts broadcaster, and A&E, a US documentary network. From October the channels’ content will be available on TF1+, joining existing third-party content from L’Equipe, Le Figaro and Deezer. “We are particularly proud of these partnerships, which consolidate our aggregation strategy,” said TF1 CEO Rodolphe Belmer. “They will enable a mass audience to watch (or rewatch) extremely well-made, award-winning programmes covering a wide variety of special-interest topics.”

The Week for Publishers

Axel Springer Agrees Break Up Deal with KKR

Mathias Döpfner, CEO of European media giant Axel Springer, has agreed a deal with global investment firm KKR, a major shareholder in the company, which will split Axel Springer’s news media business apart from its profitable classifieds business. Following the split, Döpfner and Friede Springer, the widow of the company’s founder Axel Springer, will own 98 percent of the news business between them.

“What are our plans? We want to be faster, more agile and less bureaucratic,” said Döpfner. “We are digital and transatlantic. But we need to strengthen the role of technology as a critical success factor. We need to understand and harness the power of artificial intelligence faster and better than our competitors. We need to become even more market, customer, and revenue-focused than before. These priorities must be our focus if we want to be the leading transatlantic media company for digital journalism and related business models.”

The Guardian Posts Revenue Drop in “One of the Most Challenging Advertising Markets in Recent Memory”

UK publisher The Guardian has posted a 2.5 percent revenue decline for 2023/24, citing “one of the most challenging advertising markets in recent memory.” The company has also announced it is in talks to sell the Observer, the Sunday newspaper owned by Guardian Media Group, to UK startup Tortoise Media. Ad revenues were down 13 percent, while print reader revenues fell 3 percent, reflecting “a market slowdown in advertising and sustained structural pressures on print.” There were positives for the publisher however, with digital reader revenues up by 8 percent, and ongoing growth in international markets. Read more on VideoWeek.

Daily Mail Reports Success with YouTube Push

UK newspaper the Daily Mail, which has put a big strategic focus on growing viewership and engagement across social video platforms, this week announced it has topped four million subscribers on YouTube. TikTok in particular has been a big focus for the Mail, which has more than 15 million followers across all its TikTok accounts. But while many publishers have suffered falling viewership on YouTube, the Mail says its still picking up lots of views for its most successful content, with its most successful series picking up over 100 million views.

LADbible Owner Reports 29 Percent Organic Growth

LBG Media, which owns LADbible, UNILAD, and Betches among other titles, reported 29 percent year-on-year organic growth for the first half of the year. The company said it has built deeper relationships with major brand clients, while also growing indirect revenues, leading to strong overall ad revenue growth. LBG’s web yields were up 90 percent, which the group said reflected strong demand for its ad inventory.

The Sun and Daily Mail Make US-Based Redundancies

The Sun and the Daily Mail, two UK news brands which have been pushing to expand their businesses in North America, have made US-based editorial redundancies, Press Gazette reported this week. The Sun in particular has been hit by falling traffic for its US-focussed site, which launched in 2019. Traffic last month sat at just over a third of its peak in April last year.

The Week for Brands & Agencies

S4 Capital Cuts Costs as Revenues Fall

S4 Capital downgraded its full year revenue forecast this week, after reporting a 13.5 percent year-on-year fall in net revenues in H1. Executive chairman Sir Martin Sorrell said that continued dampened spending from tech clients affected results, with one tech services client in particular having made significant spending cuts. Sorrell added that the advertising group is cutting costs in order to accommodate lower revenues.

Eighty Percent of Brands are Worried About Agency Generative AI Use

Brands clearly see generative AI as a major opportunity in advertising and marketing, as nearly two-thirds are already using it in some form in their marketing strategies, according to new research from the World Federation of Advertisers. But they’re also wary of the risks that come with using AI tools, and seem particularly keen to keep a tight rein on how they’re used, as eighty percent have expressed concerns about how their agency partners are using generative AI on their behalf.

Legal concerns are the biggest worry for brands, with 66 percent of major multinational brand owners surveyed by the WFA citing it as a danger. Ethical and reputational risks are also big concerns, for 51 percent and 49 percent of brands respectively. Read more on VideoWeek.

Magna Boosts US Full Year Forecast

IPG-owned media intelligence firm Magna released an improved full year forecast for US ad revenues this week, revising its forecast upwards to 11.4 percent ad revenue growth across 2024 (including cyclical events), up from 10.7 percent in its previous forecast. Total TV revenues are expected to be down by 1.7 percent across the whole year, an improved outlook compared with its previous prediction of a three percent drop. Digital pure play ad revenues continue to be the major growth driver, and are expected to be up by 14.2 percent this year.

M&C Saatchi Reports Healthier Client Spending as Profits Rise

UK-based agency M&C Saatchi reported a 26 percent rise in first half profits, after a strong start to the year in which client spending ticked up and the group took on work for some major new clients. Total like-for-like net revenues were up by six percent in H1, while revenues specifically from the company’s advertising businesses were up six percent.

Unstereotype Alliance Research Refutes ‘Go Woke, Go Broke’ Claims

The ‘go woke, go broke’ mantra touted by some right-wing groups, warning that brands which include progressive messaging in their marketing activities will lose revenues as a result, doesn’t hold true according to research from the Unstereotype Alliance. The study, conducted with researchers from the Saïd Business School at Oxford University, found that inclusive messaging has a positive impact on business profit, sales and brand value. Using data from a number of major global brands, the study found that inclusive campaigns deliver:

3.5 percent higher shorter-term sales and 16 percent higher longer-term sales
62 percent higher likelihood of being a consumer’s first choice
15 percent higher customer loyalty

Next 15 Reports Continued Weakness in Tech Spending

Marketing group Next 15 reported flat H1 revenues year-on-year, citing continued dampened spend from its tech clients, as well as lower revenues from its government work. The company also said that it can’t yet forecast a recovery in tech spending in the second half of this year or the first half of next year. However Dyson said there have been more encouraging signs from its B2C clients, and added that the results “mask strong progress on embedding AI into our systems and in the development of new customer-facing AI-based products and services”.

IPA Launches Sustainability Transformation Toolkit for Agencies

The Institute of Practitioners in Advertising (IPA) this week released a new environmental sustainability report and accompanying toolkit, which outlines a four-step model for agencies to take action on sustainability transformation. “It is a time of both risk and enormous opportunity for the industry,” said Tom Firth, chair of the IPA Sustainability Action Group. “This project is our first vital step in providing practical support to other IPA members to help them make sense of the agenda and begin to think strategically about the transformation required, and the practical steps needed to change.”

Carat Retains Co-op Media Account

Dentsu-owned media agency Carat has retained media duties for The Co-operative Group, following a closed review, according to Campaign. Carat has held the account, which covers Co-op Food, Insurance, and Funeralcare since, 2018. As part of the deal, Dentsu has partnered with Co-op’s retail media arm, Co-op Media Network, getting access to insights based on Co-op’s retail data.

Hires of the Week

IPG Names Alex Hesz CSO

Interpublic Group (IPG), the US agency holding company, has named Alex Hesz as Chief Strategy Officer. Hesz has held a series of strategic agency roles, including EVP, CSO at Omnicom, and Global Chief Strategy Officer at DDB Worldwide.

Jerry Daykin Joins Burger King Parent Company

Restaurant Brands International, the parent company of Burger King, Popeyes, Tim Hortons and Firehouse Subs, has appointed Jerry Daykin as Head of International Media for the aforementioned restaurant brands. Daykin previously spent two years as VP, Head of Global Media at drinks company Beam Suntory.

TF1 PUB Appoints Adam Marki as Deputy Digital Director

TF1 has hired Adam Marki as Deputy Digital Director of TF1 PUB, the French broadcaster’s sales house. He will also join the company’s Executive Committee. Marki previously spent over five years as Head of Agencies at Google.