Amazon plans to sell video ads on its mobile shopping app, a direct challenge to Google and Facebook’s control of the $129 billion digital advertising sector. Sources report that the tech giant has been beta testing ads on the Apple iOS platform “for several months,” and that it plans to roll out ad sales on Google’s Android platform later in 2019. Searches on Amazon’s mobile app trigger relevant ads, making them more likely to lead to actual purchases. With this move, Amazon opens up a potentially lucrative revenue stream. Continue reading Amazon Testing Video Ads on its iOS Mobile Shopping App

New estimates from eMarketer indicate that advertisers in the U.S. will spend more on digital advertising through the likes of Facebook and Google in 2019 than traditional media such as television, radio and newspapers. Advertisers are expected to spend in excess of $129 billion on digital advertising this year as compared to the more than $109 billion they will spend on traditional advertising. The shift would mark the first time in history that digital advertising would comprise more than half of the U.S. ad market. Continue reading Advertisers to Spend More on Digital Than Traditional Media

Alphabet’s revenue is booming, but its costs are also increasing, the result of its efforts to diversify beyond online advertising. Thus, although Internet search showed very strong returns, Alphabet shares fell in after-hours trading due to its shrinking margins and slower revenue growth. In addition to its Google search engine, Alphabet comprises YouTube and Waymo self-driving car divisions. The parent company’s increased spending on those two divisions in Q4 pushed margins down to 21 percent from 24 percent a year earlier. Continue reading Alphabet Revenue Robust, But Costs of Diversification Grow

Following in the footsteps of its rival Amazon, Roku announced that users will be able to buy pay-TV subscriptions through its streaming service, The Roku Channel, beginning in late January. That mimics Amazon’s sale of access to HBO and other premium channels through its Prime Video platform. Roku’s offering will include Showtime, Starz and EPIX among others. The new feature, which replaces one in which Roku acted as a portal to outside services, will also be financially favorable for the company. Continue reading Roku Adds Premium Subs to Roku Channel, Updates its App

At CES 2019, when Samsung introduces its latest line-up of TVs, it might also unveil plans to integrate Google Assistant into its 2019 TV sets, according to sources. The company is expected to place a bigger emphasis on audio quality, and might also offer features in its TVs that are similar to Apple’s HomePod, which “tunes” music to its environment. Samsung wouldn’t comment on these plans, but did highlight the 2019 models of its Frame and Serif TVs. In 2018, Samsung added Bixby, its own voice assistant, to that year’s TV lineup. Continue reading Samsung Likely to Enable Third-Party Assistants in 2019 TVs

Netflix is strategizing ways to court the hundreds of thousands of people in places like India that are glued to watching YouTube on their mobile phones. Only a few months, ago, Netflix chief executive Reed Hastings said sleep was Netflix’s biggest competitor. But since his company is also eyeing India for its next 100 million Netflix subscribers, that country’s focus on YouTube is concerning. Netflix and Amazon, both of which have spent billions to produce original content, still find it difficult to crack emerging markets. Continue reading Netflix and Amazon Face Formidable Video Rival in YouTube

Digital viewing is growing across age groups as traditional TV viewing declines, according to eMarketer. The researcher estimates that 64.8 million millennials will watch digital video this year at least once a month, a projection expected to reach 66.8 million by 2022. Meanwhile, 59 million millennials are expected to watch traditional TV in 2018, a figure projected to decline in coming years. The trend is growing with Gen X in the U.S. as well; eMarketer projects that 51.8 million (representing more than three-quarters of the Gen X population) will watch digital video at least once a month. And kids 11 and younger? Not surprisingly, 24.2 million with turn to digital viewing this year. Continue reading Digital Viewing Steadily Increases Across Multiple Age Groups

Amazon is poised to be an advertising behemoth, even as it dominates in online retail, handling almost half of all online sales in the U.S. The company currently holds the No. 3 spot in online advertising, behind Google and Facebook, with a mere 4 percent of the market. But Amazon is on a hiring binge for its advertising division, and, according to eMarketer, is on track to double its ad revenue this year to $5.83 billion. One source of tension is the fact that Amazon’s own products compete with retailers on its site. Continue reading Amazon On Track to Be a Bigger Player in Online Advertising

A report from the Interactive Advertising Bureau and PricewaterhouseCoopers shows marketers are spending considerably more on digital advertising due to an increased use of mobile devices, as well as online shopping and greater consumption of video, music and podcasts. Digital advertising ramped up 23 percent to $49.5 billion in the first half of 2018, from $40.3 billion during the same period in 2017. Of that, advertisers spent almost 63 percent ($30.9 billion) on mobile advertising in 2018, compared to 54 percent in 2017. Continue reading Mobile Use, Online Shopping and Video Spur Digital Ad Growth

Amazon inked a deal with Apple to sell more of the tech giant’s products, including the new iPad Pro, iPhone XR, iPhone XS, Apple Watch Series 4, and its Beats headphone line. Amazon will begin listing those products — from Apple-authorized resellers only — in the next few weeks in the U.S., U.K., France, Germany, Italy, Spain, Japan and India. Before this deal, Amazon already directly sold MacBook laptops, Beats headphones and a few other Apple devices. Other products were only available through its third-party resellers. Continue reading Amazon, Apple Ink Deal to Directly Sell More Apple Products

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

After decades of unreliable profits, Amazon has had four consecutive quarters with profits over $1 billion, and a net income of $2.9 billion in Q3. Although the numbers exceeded analysts’ expectations, the e-commerce giant also revealed that revenue in its core retail business was below expectations, with sales up 29 percent to $56.6 billion, and sales in its online store rose only 11 percent over the last year, half the pace of a year ago. As a result, discontent investors recently dropped shares 7 percent in aftermarket trading. Continue reading Amazon Seeks Efficiency While Investing in New Businesses

Advertisers filed suit in a federal district court in California charging Facebook with knowing about a measurement error a year before acknowledging it in 2016. Facebook admitted that it had been overstating the average time users spent watching videos then, but the suit claims that the company knew about the error in 2015. The error also impacted U.S. newsrooms, which laid off reporters in order to prioritize video over written stories. In fact, in 2015, Facebook began putting its Live videos higher up in News Feed. Continue reading Advertisers Charge Facebook Hid Metrics Error for One Year

According to a recent survey by social video marketing agency VidMob, younger Internet users in the U.S. — especially those in the Gen Z demo (ages 16-24) — are spending more time on social apps. The study found that 59 percent of Gen Z turn to YouTube more than they did last year, 56 percent spend more time using Snapchat, and 55 percent have increased their time on Instagram. Meanwhile, millennials are also increasing their time on social apps; about 50 percent use Instagram more, 46 percent have increased YouTube viewing, and 40 percent are on Snapchat more than they were in 2017. Continue reading Gen Y and Gen Z Are Increasing Their Time on Social Apps

According to the latest eMarketer projections, the number of Facebook users in the United States will increase by only 0.9 percent this year to a total of 169.5 million. While the platform’s growth has leveled in the U.S., it remains the top social network among millennials, Generation X and baby boomers. However, interest in Facebook among U.S. teens continues to decline. Snapchat surpassed Facebook among teens in 2016 — and eMarketer predicts that Snapchat will attract 1.2 million new users ages 12 to 17 by 2022, while Facebook will lose 2.2 million teens during the same time frame. Continue reading Facebook Remains Popular Among U.S. Groups Except Teens