In this week’s Week in Review: The CMA answers calls to investigate Google’s privacy moves, Roku is reportedly close to buying Quibi’s catalogue of content, and the UK and EU agree a grace period for data transfers following the UK’s departure from the EU. To receive an update on the industry’s top stories every Friday, sign up to the weekly Video Round-Up.
Top Stories
CMA Launches Investigation into Google’s Privacy Sandbox
The UK’s Competition and Markets Authority (CMA) today announced it is launching an investigation into Google’s Privacy Sandbox, and the search giant’s pledge to end support for third-party cookies on Chrome next year. The CMA acknowledged concerns that these moves could concentrate ad spend within Google’s ecosystem, at the expense of its competitors.
“As the CMA found in its recent market study, Google’s Privacy Sandbox proposals will potentially have a very significant impact on publishers like newspapers, and the digital advertising market,” said Andrea Coscelli, chief executive of the CMA. “But there are also privacy concerns to consider, which is why we will continue to work with the ICO as we progress this investigation, while also engaging directly with Google and other market participants about our concerns.”
James Rosewell, director of Marketers for an Open Web, a coalition of publishers and tech companies which asked the CMA to investigate the sandbox, says he hopes that implementation of the sandbox will be delayed until after legislation is implemented.
Roku Nears Deal for Quibi Content Catalogue
Over-the-top platform and hardware manufacturer Roku is reportedly in the running to buy the rights to content made for Quibi, the mobile-first short form video service which both launched and collapsed last year.
Roku runs its own ad-supported channel, The Roku Channel, within its OTT platform. But so far The Roku Channel has relied on licensed third-party shows and films. A deal with Quibi, which is selling off its assets following its collapse, would give Roku original content to help attract new subscribers.
Last year was a strong year overall for Roku’s platform business as a whole. The company announced this week that it finished 2020 with 51.2 million active accounts, an increase of 14 million from 2019.
UK and EU Agree Data Grace Period Post-Brexit
The UK government and EU have agreed a grace period during which personal data can still flow freely between the UK and EU, after the UK completed its exit from the EU at the end of last year.
As VAN reported last year, transfers of data between the UK and EU was one of the key post-Brexit concerns for the ad industry. With the UK no longer part of the EU, companies will have to find an alternative legal basis for sending data between the two. But the trade deal agreed at the end of last year means that for the time being businesses can continue sending data as normal, at least until the UK and EU agree on specific new rules for data transfers. This protection however won’t stretch beyond six months.
The Week in Tech
Google Employees Unionise
Over 200 Google employees this week announced the creation of a company-wide union, a first for the tech giant. “We will elect representatives, we will make decisions democratically, we will pay dues, and we will hire skilled organizers to ensure all workers at Google know they can work with us if they actually want to see their company reflect their values,” said Dylan Baker, a Google software engineer, in a statement.
Amazon’s Ad Unit Grew 47 Percent in 2020
Financial data company FactSet says that Amazon’s ‘other’ business unit, made up almost entirely of its advertising business, reached revenues of $21 billion in 2020. This represents a 47 percent jump year-on-year according to the FT.
LG Buys Majority Stake in Alphonso
Electronics manufacturer LG has bought a majority stake in TV data business Alphonso, investing around $80 million for an almost 60 percent stake in the company. The investment is part of an effort from LG to build out its own TV streaming ad business, according to the WSJ.
Vizio Says Streaming Minutes Passed 1 Trillion Last Year
Smart TV manufacturer Vizio said total viewing on its TV sets jumped up by over a fifth last year, reaching around 1.1 trillion minutes in total.
DoubleVerify Launches Brand Suitability Tiers
DoubleVerify today made Brand Suitability Tiers generally available for advertisers and publishers, offering 13 categories of content tiered by three levels of risk. These risk levels are determined by both the content type and the topic. “Through Brand Suitability Tiers, advertisers are able to carefully balance brand reputation protection and campaign scale, while publishers are empowered to better meet advertiser expectations and maximize yield for the quality content they produce,” said DV’s CEO Mark Zagorski.
Yospace Extends ITV Partnership to Cover CTV
ITV this week announced it has extended its relationship with server-side ad insertion specialist Yospace to cover targeted advertising on live channels in ITV Hub until 2022. This renewed partnership will also see ITV extend the reach of SSAI to its CTV inventory.
Google and Snap Consider Investing in Indian Chat App ShareChat
Both Google and Snap are considering investing in Indian chat app ShareChat, as part of Series E funding which would value the company at over $1 billion, according to Adweek.
Facebook’s Ad Integrity Chief Departs
Rob Leathern, director of product management for Facebook’s business integrity team, has left the company. Leathern was the public face of Facebook’s controversial political advertising policies, according to Reuters.
The Week in TV
Discovery+ Goes Live in US
Discovery’s new streaming service Discovery+ went live in the US this week, following launches in the UK and Europe last year. The launch marks a change in strategy for the non-fiction broadcaster, which has previously opted to run several smaller, themed streaming services.
GB News Secures £60 Million Ahead of Launch
GB News, a new US-style 24 hour news channel chaired by veteran broadcaster Andrew Neill, has secured £60 million in funding ahead of its launch. The channel says it will now recruit more than 100 journalists using the funding, as it seeks to build “a boldly different 24-hour television and digital news service”.
BBC Secures Continued European Distribution
The BBC confirmed this week it has secured continued distribution in the EU for its domestic and international channels, thanks to commercial licenses it has secured in The Netherlands and Luxembourg.
DAZN Reportedly Lost $1.4 Billion in 2019
OTT live sports broadcaster DAZN reportedly made losses of $1.4 billion in 2019, according to a report from SportsBusiness, as the costs of pricey live sports rights deals mounted.
Disney Brings Star Content to Disney+
Disney this week announced it is further strengthening its content catalogue for Disney+ with the addition of entertainment content from its Star brand. Shows added to Disney+ include 24, Atlanta and Prison Break.
Introducing Star, a new world of entertainment coming to Disney+ 🤩
+ More Series + More Movies + More Laughs + More Thrills + More Originals 🤯
Save the date for the 23rd February! *tries to contain excitement* pic.twitter.com/1vJxnRKLv0— Disney+ UK (@DisneyPlusUK) January 4, 2021
The Office Arrives on Peacock
Peacock, NBCUniversal’s streaming service released last year, got a long-awaited addition to its catalogue this week as The Office (US) arrived on its platform. The Office consistently ranked among the most watched shows when hosted on Netflix, and could help bring new customers to Peacock.
AT&T CFO Defends Streaming Strategy
AT&T’s chief financial officer John Stephens defended WarnerMedia’s strategy of putting new film releases directly on its streaming service HBO Max, a move which has sparked tensions with theatres and film talent. Stephens said WarnerMedia has a long history of working with talent, but that his company is taking necessary steps to respond to the reality of the pandemic.
The Week in Publishing
Alden Global Capital Bids for Tribune Publishing
US hedge fund Alden Global Capital has made a bid for news publisher Tribune Publishing, owner of the Chicago Tribune, which values the company at around $520 million. The hedge fund already owns around 32 percent of the publisher, but wants to take the business private and add its assets to its portfolio of over 200 newspapers, owned under a subsidiary called MNG Enterprises.
Bustle Digital Considers Going Public via SPAC
Digital publisher Bustle, owner of titles including Bustle, W, and Elite Daily, is considering going public by merging with a special purpose acquisition company (SPAC) according to Reuters. The publisher would be looking for a valuation of around $600 million.
YouTube Removes, Then Reinstates, UK Broadcaster talkRADIO
YouTube temporarily removed UK broadcaster talkRADIO’s channel this week, after it posted content which YouTube said contradicts expert consensus on the COVID-19 pandemic. The channel was reinstated after a review. Senior UK government minister Michael Gove appeared on talkRADIO on Tuesday, accusing YouTube of censorship.
Twitter and Facebook Suspend President Trump
Social media companies’ ongoing battle with the US President escalated this week as both Twitter and Facebook suspended Donald Trump’s accounts. The President posted content which the two said spread information and incited violence, as supporters of the president stormed the US Capitol on Wednesday. Facebook said the President’s accounts on both Facebook and Instagram are suspended at least until the transition to the Biden administration is complete.
Reddit Experiments with Tackling ‘Notification Fatigue’
Reddit has been trialling different types of user notification, to help avoid ‘notification fatigue’. These include “inbox-only notifications”—notifications which don’t go to users’ phones but do go to their Reddit inboxes, and “silent notifications” which do go to users’ phones, but don’t interrupt any windows/apps they have open or play any sound.
Snap Rolls Out Reworked Global Partner Solutions Programme
Snap this week relaunched its Global Partner Solutions Programme, through which advertisers on Snap can work with third-party tech and creative companies for advertising on Snapchat. The relaunched programme has two kinds of partnerships, Strategic Partners and Certified Partners:
Twitter Acquires Podcasting App Breaker
Twitter this week announced it has acquired Breaker for an undisclosed fee, a move which will help Twitter build out its own audio offering Twitter Spaces, according to TechCrunch.
The Week for Agencies
Zenith Predicts Flexibility, AR and the Joy of Missing Out will be Themes of 2021
Publicis-owned media agency Zenith UK this week released its annual consumer and cultural trend report, The View. Zenith UK picked out three big themes which it expects will give brands and advertisers new opportunities in the year ahead:
- Flexibility, with consumers looking for free cancellations, flexible dates, zero notice periods, short-term contracts and the ability to pause
subscriptions from services they use. - ‘JOMO’ or the ‘joy of missing out’, with people taking more pleasure in avoidance not just of social events, but also of social media, tech, specific foods and drinks, fast fashion, travel, and even exercise.
- Augmented reality, which Zenith forecasts will shift from a gimmicky, clunky niche, to a mainstream opportunity.
Japanese Government Awarded Over 100 Contracts to Dentsu-Linked Groups
The Japanese government awarded over 100 contracts to two non-profit groups linked to agency holding group Dentsu, Reuters reported this week. Opposition politicians in Japan say the role of Dentsu, which has close ties to the government, in winning these contracts was obscured.
JPMorgan Chase Awards Media Account to WPP and Dentsu
JPMorgan Chase has consolidated its global media account, worth around $400 million, with WPP and Dentsu according to Campaign.
London Advertising Offers January Sale
London-based ad agency London Advertising has been offering clients what it describes as the industry’s first ever January sale. Its ‘three for the price of two’ style deal offers one free month to clients booking three month commissions. London Advertising has tried experimental tactics before, putting its money where its mouth is last year and advertising its own services during the recession, as a demonstration of its own belief in the principle.
Moneysupermarket Splits with Engine
British price comparison site Moneysupermarket has split with ad agency Engine, Campaign reported this week, as the brand seeks a new direction for its marketing messaging.
Hires of the Week
Former Goldman Banker Sharp Named BBC Chairman
The UK has named former Goldman Sachs banker Richard Sharp as the next chair of the BBC. Sharp will be responsible for upholding and protecting the independence of the BBC.
Dana Strong Names New CEO of Sky
Dana Strong, a former senior executive at Virgin Media, has been named CEO of Sky after Jeremy Darroch left the role. Darroch will still into the role of executive chairman.
OneFootball Appoint Denise Parkinson as Global Entertainment Director
Digital football media business OneFootball has announced the appointment of Denise Parkinson as global entertainment director, a newly created role. Denise will be responsible for working with entertainment clients from the world of streaming, film, gaming and music to help them distribute their content and connect with OneFootball’s audience.
This Week on VAN
S4 Kickstarts ‘Post-Brexit Expansion’ with Two New Acquisitions, read more on VAN
Liberty Global and Cadent to Roll Out Addressable TV Ads Throughout Europe, read more on VAN
Ofcom Questions Whether YouTube and Netflix Can Provide PSB-Like Content, read more on VAN
The Decentralised Web and Its Impact on Advertising Explained, read more on VAN
Ad of the Week
Carlsberg, Carlsberg 0.0, Grey Europe
