Dire Snap Forecast Dampens Social Media, Digital Ad Sectors

Snap’s investor warning of slow growth ahead has sent shivers through the social media sector, the digital advertising industry, and Wall Street. Though the general messaging that supply chain issues coupled with the war in Ukraine is bad for business is not exactly news, Snap CEO Evan Spiegel’s message that “the macro environment has deteriorated further and faster than we anticipated when we issued our quarterly guidance last month” hit a nerve. Snap lost 43 percent of its market cap on Tuesday, with the social media sector showing signs of drag and analysts forecasting trouble ahead for ad-supported media. Continue reading Dire Snap Forecast Dampens Social Media, Digital Ad Sectors

YouTube Revenue Could Surpass Netflix Numbers This Year

Google’s YouTube earned $6.01 billion in advertising revenue in Q1, a 49 percent growth from the $4 billion a year ago. In Q4, YouTube’s growth rate was 46 percent. But, more notably, its current growth rate is almost twice that of Netflix’s, which reported a 24 percent revenue bump in Q1 and anticipates 19 percent growth in Q2. Market data provider Refinitiv reported that, should the trajectory continue, YouTube is on track to take in between $29 billion and $30 billion in revenue in 2021, compared to Netflix’s expected $29.7 billion. Continue reading YouTube Revenue Could Surpass Netflix Numbers This Year

Smart TV Makers Want a Bigger Slice of Streaming Ad Market

The COVID-19 pandemic has fueled a shift to streaming media, creating opportunities for TV manufacturers. In late 2019, Vizio TV, one of the biggest TV makers in North America, began selling ads for streaming movies, TV shows and digital videos on its screens. It now wants to build out this new business unit to create a recurring revenue source separate from TV set sales. Sources said that Vizio’s platform revenue this year comes mostly from advertising, which appears to be on track to double year-over-year. Continue reading Smart TV Makers Want a Bigger Slice of Streaming Ad Market

Broadcast TV Programmers Move Upfronts to Online Platforms

Due to concerns regarding the coronavirus, broadcast TV programmers have canceled their in-person Upfront pitches to advertisers, scheduled for May in New York City. Viacom’s CBS, NBCUniversal, Fox Corp. and ABC parent Disney are calling off their annual stage shows, although advertisers will still seek to ink deals with them. NBCUniversal’s chair of advertising and partnerships Linda Yaccarino noted that, “this year’s Upfront presentation will ensure everybody’s safety, while allowing us to give fans and marketers a preview of the upcoming season.” Continue reading Broadcast TV Programmers Move Upfronts to Online Platforms

Viacom Digital Eyes Streaming to Target Younger Audience

For years, Viacom didn’t move decisively into the digital arena, but chief executive Bob Bakish changed that in 2017 when he hired digital media executive Kelly Day to head Viacom Digital Studios in leading MTV, Nickelodeon, BET, Comedy Central and other youth-oriented properties. With her team of 400+ employees, Day has created new original series for different platforms and led the purchase of Awesomeness. In February 2019, Tubular Labs ranked Viacom No. 9 for online video views, up from No. 24 in October 2017. Continue reading Viacom Digital Eyes Streaming to Target Younger Audience

FTC Orders Broadband Firms to Reveal Data Collection Info

The Federal Trade Commission ordered Comcast, Verizon, AT&T and other broadband providers to file reports within 45 days on why and how they collect consumer data and if they allow consumers to block such collection. The federal agency’s chair Joseph Simons said the move was “the first shot out of the box” in an investigation into the collection and use of personal data, with the potential aim of creating enforcement rules and helping Congress develop legislation on data privacy. Simons also promised more action. Continue reading FTC Orders Broadband Firms to Reveal Data Collection Info

Companies Bid On Their Own Brands For Google Search Ads

According to NetMarketShare, Google controls 81+ percent of the mobile search market, which is why many businesses believe buying ads on the platform is necessary to stay in business. Appearing on top of search results is critical for many companies, and buying ads is the best way to achieve that. The urgency heats up when it comes to branded keywords, whereby companies must bid on their own names or see their rivals capture the space. If Lyft, for example, doesn’t buy the ad, Uber likely will, and grab the top spot. Continue reading Companies Bid On Their Own Brands For Google Search Ads

Facebook Growth Slows in Early Stage of its Shift to Video

Facebook recorded lower Q3 revenue than expected, the result said chief executive Mark Zuckerberg of “an unsteady transition” from News to more popular but less profitable Stories, which allows users to build photo/video montages that disappear after 24 hours. The company relayed that the transition’s early stage will be marked by higher costs, including more investment in 2019, and continued slow growth. Investors took the news in stride, unlike the July earnings report that resulted in a stock price plummet. Continue reading Facebook Growth Slows in Early Stage of its Shift to Video

Alphabet Posts Higher Profits But Slowing Overall Revenue

Alphabet, dealing with pushback from regulators and struggles in its corporate culture, reported net profit that increased 37 percent to $9.19 billion in the quarter through September. Last year, during the same period, the company posted $6.7 billion. Although this growth exceeded analysts’ expectations, overall revenue is actually down, growing 21 percent to $33.74 billion versus last year’s 24 percent growth in the same period. Revenue from advertising, representing the majority of sales, grew 20 percent to $28.95 billion. Continue reading Alphabet Posts Higher Profits But Slowing Overall Revenue

Does Snap’s Daily User Slump Signal Social Media Saturation?

Snap reported that it lost three million daily active users in Q2 this year, the first time the company has recorded a loss in users since it went public in early 2017. This decline mirrors reports from Facebook, which stated its number of U.S. users was flat and its European users had fallen, and Twitter, which said in late July that its monthly active users had dipped by one million. Facebook and Twitter both experienced a tumble in share prices after their disclosures, raising the specter that social media usage has peaked. Continue reading Does Snap’s Daily User Slump Signal Social Media Saturation?

Google Absorbs EU Fine, Alphabet’s Other Bets Burn Money

Despite the impact of new European regulations, Google just reported sales and profit that exceeded analysts’ expectations. The Silicon Valley company’s shares hit an all-time high, rising 3.9 percent to $1,267 in after-hours trading. The result is proof that advertisers aren’t put off by European regulations or allegations that Google abuses its dominant position in the marketplace. Its parent company Alphabet, however, continues to see losses in its “Other Bets” category, which includes Waymo autonomous vehicles. Continue reading Google Absorbs EU Fine, Alphabet’s Other Bets Burn Money

Facebook News Feed Algorithm Tweak Favors Family, Friends

Facebook has again tweaked its News Feed, this time in a major way. The social media giant will now prioritize what a member’s friends and family share and comment on, rather than content from publishers and brands. The change, meant to maximize what chief executive Mark Zuckerberg calls “meaningful interaction,” will take place over the next few weeks. Likewise, Facebook wants to diminish “passive content,” which is defined as that which requires nothing of the viewer than to sit back and watch or read. Continue reading Facebook News Feed Algorithm Tweak Favors Family, Friends

Zuckerberg’s $1 Billion Bet on Making Facebook ‘Video-First’

Facebook reportedly will spend up to $1 billion on original content through 2018, an investment aimed to fulfill chief executive Mark Zuckerberg’s goal to make the platform “video first.” In doing so, Facebook faces stiff competition from broadcasters such as HBO, Amazon and Netflix, all of which are focused on creating premium video content to capture advertising. Zuckerberg has been opposed to paying for content, but now has said he will do so, although he believes most creators will earn via a revenue-sharing model. Continue reading Zuckerberg’s $1 Billion Bet on Making Facebook ‘Video-First’

Facebook Moves to Fix Metrics Bugs and Assuage Advertisers

In the wake of admitting it had overstated how long users spend watching videos on its site, Facebook is taking steps to regain credibility among advertisers and publishers. The company, which apologized in September, will now rely more on third-party measurement services — including comScore, Moat, Nielsen and Integral Ad Science — to ensure accurate metrics on display and video ads. Other moves include the formation of a “measurement council,” composed of ad agency execs and marketers, to develop more relevant metrics. Continue reading Facebook Moves to Fix Metrics Bugs and Assuage Advertisers

Facebook Credits Mobile Ad Growth for Major Revenue Jump

Following last week’s reports that online advertising revenue in the U.S. reached a record $59.6 billion in 2015, and that Google and Facebook claimed the largest share of the digital advertising pie, social giant Facebook announced yesterday that its ad revenue increased 57 percent in the first quarter to $5.2 billion. Notably, mobile ads represented about four-fifths of the network’s revenue. Facebook’s news countered announcements from other tech companies — including Alphabet, Apple and Twitter — all of which released disappointing first quarter figures. Continue reading Facebook Credits Mobile Ad Growth for Major Revenue Jump