State AGs Launch Investigation into Effects of TikTok on Kids

A group of state attorneys general has announced an investigation into TikTok and the potential harm it may cause younger users. The fact-finding is not unlike that launched by top state legal advisors last year into Meta Platforms. The bipartisan group is exploring whether TikTok is violating state consumer protection laws with engagement tactics that may cause minors to become “hooked” on the app. Kids in the age of social media “feel like they need to measure up to the filtered versions of reality that they see on their screens,” said California attorney general Rob Bonta. Continue reading State AGs Launch Investigation into Effects of TikTok on Kids

Big Tech in Spotlight as Russia Censors News of Ukraine War

Russia’s attack on Ukraine has focused attention on its attempts to censor Big Tech, but the nation’s most onerous recent move to control speech came last July, when President Vladimir Putin signed a law requiring foreign tech companies with more than 500,000 monthly visitors from within the Russian Federation to establish a physical presence within the country that would be held responsible for violations of local law. Russian authorities have warned companies including Meta, Apple, Google, TikTok and Twitter that they had until the end of February to comply with what has become known as “the landing law.” Continue reading Big Tech in Spotlight as Russia Censors News of Ukraine War

Twitch Ad Incentive Program Offers Creators Regular Income

Twitch is introducing a feature that will allow select creators to earn regular income by streaming with ads for a set number of hours. Called the Ad Incentive Program, it’s a way for the platform’s top creators to generate predictable payouts. Because reliable income is important and “managing ads can be a pain that takes time away from content creation,” AIP (pronounced “Ape,” per Twitch) means “no more guesswork when it comes to your monthly ad payouts. No more fiddling with ad timing.” Qualified AIP participants will receive an offer from Twitch. Continue reading Twitch Ad Incentive Program Offers Creators Regular Income

Apple Privacy Changes Hurt Meta, Help Google, Pundits Say

Rumblings are surfacing about the impact to Meta Platforms advertising on Facebook and Instagram due to increased costs resulting from the new user privacy policy introduced by Apple last summer. Meta expects to take a hit of as much as $10 billion to this year’s revenue as a result of the change, which requires users to grant permission to apps to track their activity for advertising purposes. Meta’s market value dropped by roughly $300 billion in the wake of that forecast. In light of Google’s discussion this month of implementing privacy changes of its own, it remains to be seen whether the changes are triggering a digital advertising transition or crash. Continue reading Apple Privacy Changes Hurt Meta, Help Google, Pundits Say

Apple Faces U.S. Legislation, Dutch Fines for App Store Fees

The legislative tide seems to be turning against Apple and its App Store, marking what some note is a shift in attention previously trained on Meta Platforms and its alleged child endangerment through Facebook and Instagram, Amazon’s behavior toward its retailers, and Alphabet’s advertising controls on Google. The Apple attack is building worldwide, as Dutch antitrust watchdog Authority for Consumers and Markets (ACM) on Monday fined Apple $5.7 million over what it says are abusive payment requirements that prohibit developers from using third-party platforms for dating app fees. Continue reading Apple Faces U.S. Legislation, Dutch Fines for App Store Fees

TikTok Fights Attention Deficit, Chases Ads with Longer Vids

Having ridden the short-form video wave to popularity, TikTok now faces a quandary: advertisers want longer-form content in which to place their messaging, while users say they don’t even have sufficient attention span for minute-long videos. Last year, a TikTok survey indicated 50 percent of its users find clips of more than a minute stressful, and about a third of them zip through 60-second clips at double-speed. “It’s not because I don’t have time, but because I can’t concentrate,” one twentysomething user reportedly explained in a survey response. Despite that feedback, TikTok began experimenting through the second half of 2021 with videos of five minutes and 10 minutes. Continue reading TikTok Fights Attention Deficit, Chases Ads with Longer Vids

Google Promises Less Disruptive Privacy Changes for Mobile

Google is working on measures to protect consumer privacy by limiting data sharing from Android OS smartphones. The Alphabet-owned company says its changes will not be as disruptive as steps taken last year by Apple, which revamped its iOS iPhone software so users were required to grant permission for ad tracking. The resulting volume of users who blocked tracking had a profoundly negative effect on companies that rely on targeted advertising. Google didn’t indicate when the changes will roll out, but did say it will support existing operating systems for two more years. Continue reading Google Promises Less Disruptive Privacy Changes for Mobile

Clearview AI Courts Investors While Facing Privacy Pushback

Clearview AI is positioning itself for a major expansion that is already generating major controversy. At a December financial presentation, the New York-based firm reportedly predicted it will have 100 billion facial images in its database by the end of 2022 — or about 14 photos for each of the earth’s 7 billion people. And there is said to have been talk of surveilling gig economy workers, identifying people based on how they walk and remotely scanning fingerprints. While the company’s 34-year-old founder and chief exec Hoan Ton-That is careful to present the firm as a crime-fighting tool, its broader implications are chilling. Continue reading Clearview AI Courts Investors While Facing Privacy Pushback

Kids Online Safety Act Advocates Holding Tech Accountable

A bipartisan bill to protect kids online was introduced Wednesday by Senators Richard Blumenthal (D-Connecticut) and Marsha Blackburn (R-Tennessee). The Kids Online Safety Act (KOSA) would give parents more control over social media settings, add opt-out features and establish a “duty of care” that opens the door to liability and lawsuits. “Big Tech has brazenly failed children and betrayed its trust, putting profits above safety,” said Blumenthal. “This measure makes kids’ safety an Internet priority.” The bill follows a media blitz and months of Congressional hearings on the danger of social media to the mental and physical health of young users. Continue reading Kids Online Safety Act Advocates Holding Tech Accountable

Snapchat Debuts Mid-Roll Ads with Revenue-Share for Stars

Popular messaging app Snapchat has added a new way for its top creators to earn money on the platform, introducing mid-roll ads in public Stories. The feature is in U.S. beta testing now with an early set of Snap Stars, who will receive a share of the revenue generated from ads within their public Stories. “Stories lower the barrier to content creation and engagement, and we believe placing ads within a Snap Star’s public Story will allow an easier path to financial success,” Snap says of the program, which it plans to roll out commercially later this year. Continue reading Snapchat Debuts Mid-Roll Ads with Revenue-Share for Stars

Microsoft Takes Its Case for Activision Purchase to Capitol Hill

Microsoft has begun laying the groundwork to gain regulatory approval for its $68 billion Activision Blizzard bid, assuring D.C. decision-makers the purchase will not improperly advantage its own platforms and services. In an effort at transparency, Microsoft CEO Satya Nadella and president Brad Smith say they’re “sharing where we’re going with members of Congress” and meeting with think tank representatives to compile a best-practices road map to ensure lawmakers and stakeholders the deal presents no threat. Microsoft says it wants Activision’s IP not to dominate existing markets but to help stake its claim in the emerging metaverse. Continue reading Microsoft Takes Its Case for Activision Purchase to Capitol Hill

Meta Hypes Numerous Benefits of Metaverse for Advertising

Meta Platforms’ Vishal Shah told attendees of the Interactive Advertising Bureau’s annual leadership meeting that the brave new virtual world his company is conjuring will offer vast opportunities for marketing and promotion without the physical constraints of real estate leases, supply chain snags and geographic inconvenience. Appearing virtually, Shah revved the engines at “The Road to the Metaverse” tour, promising brands an exciting ride, albeit one that may take 10 years to hit cruising speed. Meta is stepping on the gas to get there, investing $11 billion in its Reality Labs VR unit last year.  Continue reading Meta Hypes Numerous Benefits of Metaverse for Advertising

Meta’s Future Pondered as Facebook Matures, Growth Slows

Meta Platforms released its Q4 earnings on February 2, at which time several media outlets have become quite exercised over the fact that the company’s flagship social media platform, Facebook, reported that daily and monthly active users were “1.93 billion on average” and “2.91 billion,” respectively, in both Q4 and Q3, i.e., “flat,” as in zero growth. While sequential quarterly analysis can be a useful metric, it is more relevant when analyzing startups. For mature companies, a year-over-year analysis that compares like quarters is the Wall Street norm. Launched in 2004, Facebook turns 18 this year. Continue reading Meta’s Future Pondered as Facebook Matures, Growth Slows

Video Emerges as Killer Social App, Everyone Chasing TikTok

Meta and Snap both appear to have re-focused their social media strategies on video, leading to speculation they’re chasing TikTok, famously the U.S.’s “most downloaded app of 2021,” which at 94 million handily topped the 64 million of the second most popular, Meta’s Instagram. Meta CEO Mark Zuckerberg told analysts last week that even though Instagram’s Reels is the company’s most rapidly growing format, “we also have a competitor that is compounding at a pretty quick rate, too.” ByteDance’s TikTok, Zuckerberg said, “continues to grow at quite a fast rate off of a very large base.” Continue reading Video Emerges as Killer Social App, Everyone Chasing TikTok

Snap Notches First Quarterly Profits on $1.3 Billion Revenue

Snap Inc. ended 2021 with its first net profit on quarterly results since going public in 2017, with Q4 earnings of $22.5 million versus last year’s net loss of $113 million during the same period. The company’s Q4 revenue of $1.3 billion marked a 42 percent increase year-over-year, while Snapchat’s daily active users rose 20 percent to 319 million, beating analyst estimates on both counts, which sent Snap stock soaring last week. In 2022, Snap has to contend with Apple’s iOS privacy changes, something Meta Platforms forecasts will take a $10 billion bite out of its own earnings.  Continue reading Snap Notches First Quarterly Profits on $1.3 Billion Revenue