In the largest ransomware payout to date, South Korean web provider Nayana has agreed to pay $1 million to hackers who originally demanded 550 Bitcoins, about $1.62 million. Following negotiations, Nayana has agreed to pay $1 million in three installments. The ransomware, identified as Erebus by cybersecurity firm Trend Micro, impacted 153 Linux servers and more than 3,400 websites hosted by Nayana. “This is the single largest-known payout for a ransomware attack, and it was an attack on one company,” reports CNET. “For comparison, the WannaCry ransomware attacked 200,000 computers across 150 countries, and has only pooled $127,142 in Bitcoins since it surfaced.” Continue reading Ransomware: Hackers Extort $1 Million From One Company

Verizon completed its $4.48 billion purchase of Yahoo’s Internet business, which it will combine with Internet pioneer AOL. The two merged companies form Oath, a new division led by AOL chief executive Tim Armstrong that will serve about 1.3 billion monthly users. Verizon executive Marni Walden says the strategy is to place the same content in multiple locales to reach the biggest audience possible. “There is a tremendous opportunity to increase viewership of some of these brands,” she said.  Continue reading Verizon Merges Yahoo, AOL Into Oath, With 1.3 Billion Users

Facebook reports that its Q1 profit leaped 76 percent to $3.06 billion, putting to rest concerns that video-ad performance or graphic content stymied growth. Alphabet enjoyed 29 percent growth in net profit in the same quarter, apparently undamaged by brands finding their content advertised against objectionable YouTube videos. The two tech titans currently account for 99 percent of the online ad industry’s revenue growth, says Pivotal Research, even as marketers express growing concern over fake news and live video issues. Meanwhile, Facebook continues to push new video content. Continue reading Facebook Benefits From Expanded Video Content, Digital Ads

A new report suggests that the commercial Internet now represents 6 percent of our gross domestic product. “The ad-supported Internet contributed about $1.121 trillion to the U.S. economy last year and is responsible for more than 10 million jobs across all 50 states, according to a new study commissioned by the Interactive Advertising Bureau,” reports The Wall Street Journal. The study found that the number of jobs created by the Internet more than doubled from 2012 to 2016, largely spurred by the rapid adoption of mobile devices, the transition to e-commerce, and the growth of a new gig economy. In regards to size and scope, “About 86 percent of the ad-supported Internet economy falls outside of New York City, San Francisco, Boston, the Washington, DC area, and Seattle.” Continue reading Commercial Internet Now Supports More Than 10 Million Jobs

According to a new eMarketer report, Google’s share of the online search advertising market could exceed 80 percent by 2019, as it outpaces other search companies including Microsoft, Yahoo, Yelp and AOL. Last year, Google’s share of the ad market reached 75.8 percent ($24.6 billion in revenue). The company’s share is expected to reach 80 percent by 2018 and 80.2 percent the following year. The eMarketer projections include advertising on desktop and laptop PCs, mobile phones, tablets and other Internet-connected devices. Continue reading Google Share of Search Ad Market to Hit 80 Percent by 2018

Although both Google and Facebook have declared they will fight fake news, the two companies are still in the early stages of acting on that pledge. Google says that, as of the end of 2016, it had permanently banned almost 200 publishers from its AdSense advertising network. Facebook took aim at its Trending Topics feature, blamed by some for spreading fake news, introducing changes intended to showcase only reliable news articles. But these actions are miniscule in context of the immense problem at hand. Continue reading Google, Facebook in Earliest Stages of Combatting Fake News

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

For advertisers, ad blocking is a problem that’s quickly getting bigger, as more consumers download ad-blocking apps and browsers. Mobile marketing company Tune just released a new report that predicts that ad blocking could comprise 80 percent of smartphone owners by Q3 2017. In response, advertisers are exploring ways to block the ad blockers. Digital advertising trade group Interactive Advertising Bureau has written a primer on how to block the blockers, and even The New York Times is testing ways around them. Continue reading Advertisers Seek New Ways to Combat Growth of Ad Blocking

The huge quantities of metadata generated by over-the-top programming poses an opportunity for new revenue streams, said Siemens executive Steve Wong and media tech consultant Christy King at an HPA Tech Retreat panel on “Big Data, Big Dollars for Post in an OTT World.” Wong noted that a tremendous amount of data about a production is generated through production, from scriptwriting software through scheduling and budgeting. That’s why it frustrates him that nearly everyone has been served irrelevant ads online. Continue reading HPA Tech Retreat: OTT Metadata an Opportunity for Post Houses

IPG Media Lab revealed the results of new research showing that that online ads that meet the Media Rating Council’s minimum threshold for viewability aren’t always effective. Although the MRC standards are a benchmark to determine when advertisers should have to pay for an ad, some agencies and marketers protest that the standards aren’t sufficient, an argument that seems borne out by the new IPG Media Lab study, which shows that, as an ad increases the metrics that define viewability, so does consumer recall. Continue reading IPG Media Lab Study Reveals Parameters for Ad Effectiveness

The Association of National Advertisers (ANA) recently conducted a study that found that marketers are continuing to lose money to bots, the computer programs that create fraudulent Web traffic by mimicking human Web browsing habits. Despite efforts to inform marketers about the dangers of bots, the level of fraud remains relatively unchanged from the previous year. The authors of the study estimate that companies could lose more than $7 billion globally this year because of it. Continue reading Study: Marketers Losing Billions to Fraudulent Online Ad Traffic

New media companies that attracted an entire demographic away from traditional television are making a counterintuitive move by producing TV programs, often in partnership with networks and other Hollywood players. BuzzFeed, Vice Media and Huffington Post are among the companies now inking deals with HBO, A+E Networks, Comcast’s Universal Studios and Hearst Television. One big reason why is that new media purveyors have to meet expectations of sky-high valuations, and TV is a more predictable revenue stream than online video. Continue reading New Media Companies Lured to TV by Revenue Opportunities

According to new figures released by Moffett Nathanson Research, the growth of online ads will have a significant impact on traditional television and other media. Analyst Michael Nathanson predicts that ad spending on TV will decrease by 3 percent annually through 2020. He also forecasts that online advertising, led by tech giants Google and Facebook, will increase annually by 12 percent over the next five years and exceed spending for TV ads by 2017. The forecast comes as cable TV ratings are down 9 percent and 566,000 cable and satellite subscribers canceled their service during Q2. Continue reading Research Points to Internet Impacting TV Ratings, Ad Revenue

According to Google, only 54 percent of online video ads are viewable (excluding those on YouTube). More companies are trying to get people engaged with their online ads instead of scrolling past them. Viewers may be prompted to talk back, swipe, or shoot targets in interactive ads. This new type of advertising is aimed at mobile users as people increasingly use their phones to access the Internet. Google and other companies hope interactive ads may help generate more mobile advertising revenue. Continue reading New Wave of Interactive Ads Designed to Engage Mobile Users

StyleHaul, a digital startup with a focus on fashion, beauty and lifestyle content, is paving the way for some of its YouTube stars to make their television debuts. The company, which manages thousands of YouTube personalities, has recently secured a deal with Oxygen, Trium Entertainment and Lentos Brand to create a reality TV show. StyleHaul can leverage this opportunity to not only improve visibility for its YouTube stars but also take a cut of the ad revenue that supports cable TV.   Continue reading StyleHaul’s YouTube Stars Making the Transition to Television