▸ Week 1

• - CTV Growth Continues in 2025
• - Media Investors Prepare for 2025 Consolidation
• - Publishers’ 2024 Revenue Tactics & TikTok Trends
• - Ad Measurement Trends Reshaping Online Advertising
  
  

Higher, Further, FAST-er: CTV Will Keep On Growing In 2025.  

As the new year unfolds, the growth of CTV is expected to surge, with GroupM projecting a 12.9% increase in streaming TV by 2025 and its dominance over linear TV by 2029. eMarketer forecasts that by 2026, nine streaming services will generate over $1 billion in ad revenue each, marking a significant increase from just two in 2020.

This growth is driven by the rise of FAST channels, which mimic linear TV and offer chances to repurpose content and promote series like Amazon's "The Lord of the Rings: The Rings of Power" on Samsung TV+. CTV's expansion has attracted new advertisers, with around 20,000 expected to launch streaming campaigns in 2025, predominantly small and midsize businesses (SMBs).

New advertisers are supported by self-serve platforms from providers like Roku and Paramount, enabling precise ad targeting akin to digital platforms. Yet, programmatic buying in CTV struggles to balance traditional TV partnerships with programmatic efficiencies, suggesting a future where upfront and programmatic buying coexist.

Get ready for consolidation in 2025, media investors say.

The advertising industry might see significant consolidation in 2025 due to potentially lower interest rates, a stable economy, and a favorable regulatory environment, according to Luma Partners. Major mergers, such as Omnicom's proposed takeover of Interpublic Group to form the world's largest advertising firm, and Mediaocean's planned acquisition of Innovid for $500 million, are already in progress.

In addition to these major deals, smaller transactions have been occurring throughout the ad tech sector, indicating a trend towards consolidation for efficiency and performance demands from advertisers. Mark Wright of Prohaska Consulting predicts an intense first quarter of 2025, continuing a trend of increasing mergers and acquisitions activity within the ad tech and martech sectors.

Despite the activity, some analysts, like Naveen Sarma from S&P Global, are skeptical about the completion of many significant deals in the near term, citing financial constraints and valuation disparities among companies. This era of consolidation is seen as crucial for companies seeking greater operational scale to maintain profitability amidst tightening margins.  

Digiday+ Research roundup: Publishers’ revenue tactics and TikTok were 2024’s biggest topics.

After a challenging 2023, publishers were optimistic about revenue growth in 2024, with half expecting an increase in ad revenues, according to a late 2023 survey. Throughout 2024, Digiday+ Research noted shifts in publishers' revenue strategies; early in the year, there was a move away from subscriptions, but by the third quarter, 50% of publishers planned significant investment in their subscription models.

Programmatic ads remained a crucial revenue source, although the focus on event revenue diminished, with 48% of publishers deprioritising events by early 2024. Publisher strategies included expanding ad product offerings, with 56% entering 2024 with more ad products than the previous year, particularly in branded content.

Subscription strategies saw a rebound, with 83% of publishers aiming to focus on subscriptions over the next six months, a significant increase from the previous year. Looking ahead to 2025, publishers are likely to concentrate on direct-sold ads, branded content, and subscriptions, as these areas are seen as key growth drivers.

The Ad Measurement Trends That Reshaped Online Advertising This Year.

2024 saw major changes in ad measurement, with Chrome possibly extending third-party cookies while the scarcity of user-level data drove advertisers to methods like media mix modeling (MMM) and incrementality testing. Incrementality measurement, emphasising causation via controlled experiments like geo-testing, became popular for its robust response to privacy concerns.

Early in the year, ASICS used services like Habu and Google’s Ads Data Hub for geo-tests on incremental ROI, showcasing the approach's high costs and market restrictions. MMM saw a resurgence as it adapted to user-level data limits, with Google and Meta creating tools to speed up analysis, enhancing its real-time campaign relevance.

The rise of ecommerce has led to new metrics like ACOS ("advertising as a cost of sale"), which views ad spend as part of overall sales, contrasting with the ROAS approach. The evolution of ad measurement in 2024 highlights a shift towards more holistic and privacy-conscious attribution methods, blending new and traditional metrics to suit the digital landscape.

▸ Week 52

Happy Holidays! The weekly wrap will come back next year.

▸ Week 51

• - Top Trends in the Media Industry for 2024
• - Will 2025 Be the Year of Retail Media Standardization?
• - Eight Predictions for Media and Marketing in 2025
• - How Perplexity Calculates Ad Revenue for Publishers
• - CTV in 2024: Programmatic, Measurement, and M&A
• - How AI Empowers Publishers to Improve Sales
• - UK online safety regulation comes into force
  

Media Briefing: The top trends in the media industry in 2024. 

In 2024, the media industry saw growth in digital advertising revenues for companies like Dotdash Meredith, Gannett, and The New York Times, despite a challenging ad market affected by the U.S. presidential election. Companies like BuzzFeed and Gannett projected growth for Q4, while The New York Times anticipated increases in digital and overall ad revenues.

The year featured numerous AI-related content licensing deals and copyright lawsuits, with OpenAI forming agreements with publishers and companies like News Corp suing for copyright violations. Publishers faced fluctuations in referral traffic from major platforms and looked to smaller social media platforms to boost audience engagement.

Despite Google reversing its decision to phase out third-party cookies, publishers moved forward with developing privacy-focused advertising technologies. The industry also dealt with significant newsroom changes, including leadership shifts and layoffs, particularly at The Washington Post and amid labor actions at The New York Times and The Wall Street Journal. 

Is 2025 The Year Of Retail Media Standardization?

In 2024, the demand for IAB-based retail media standards grew, leading to the final release of the first set of standards by the IAB and IAB Europe. These standards introduce consistent definitions and metrics for retail media, such as "gross impressions" and "likelihood-to-see," applicable particularly to digital campaigns in physical shopping locations.

Despite these developments, challenges remain in standardising across diverse physical retail environments, where factors like in-store screens, gas pumps, and checkout displays vary significantly. The adoption of these standards is crucial yet complicated, with larger players like Criteo benefiting from the status quo, while smaller competitors and the industry at large push for standardisation to facilitate broader adoption and fair competition. 

In With the New: Eight Predictions for Media and Marketing in 2025.

Rob Webster of Tau Marketing Solutions discusses the evolving landscape of marketing, highlighting significant trends for 2025. He identifies AI adoption, privacy maturation, CTV growth, retail media expansion, and the dominance of advertising giants as pivotal trends shaping the industry.

Webster predicts that 2025 will mark the beginning of a significant transformation in marketing, driven by AI, changing the traditional SEO and paid search landscape. AI's influence extends to search listings, where platforms like ChatGPT and Perplexity are altering SEO norms, making brand visibility within AI-driven platforms crucial.

The rise of AI also introduces new paid media opportunities, urging marketers to experiment early with AI search ads. Google, despite regulatory pressures, will continue to innovate with new technologies while maintaining its core structure. The adoption of AI agents will enhance operational efficiency by automating tasks across various platforms, transforming media planning and execution processes. Webster also anticipates a convergence of CTV, premium publishing, and retail media into a more integrated "commerce media" landscape.

He speculates on Apple’s potential expansion into advertising networks, emphasising the need for privacy-compliant marketing strategies. Finally, Webster stresses the importance of data assurance and AI governance, advising marketers to balance innovation with ethical considerations to foster growth and consumer trust. 

How Perplexity calculates publishers’ share of ad revenue.  

Perplexity introduced a new ad revenue share model in July, allowing publishers participating in its program to earn a percentage of the revenue from ads served in response to user queries citing the publisher's webpages. The revenue share percentage varies up to a double-digit figure and increases with the number of cited links per query, though Perplexity sets a standardised cap on the maximum payout per query.

The Wall Street Journal and other sources report that this cap is at 25%. While some publishing executives express uncertainty about the immediate revenue impact, they recognise the potential benefits of the program and view it as a straightforward, transparent way to monetise content.

Chan from Perplexity highlighted that all participating publishers are offered the same revenue share terms, though some execs are negotiating for better conditions. The program also provides other indirect benefits, such as access to Perplexity's enterprise tools and potential for long-term partnerships.
 

This Year’s CTV Replay: Programmatic, Measurement And Lots Of M&A.

2024 marked a significant year for CTV with global ad spending expected to exceed $30 billion, a 22.4% increase from the previous year. The rapid growth in CTV advertising fueled intense competition among streamers, who enhanced their programmatic and measurement capabilities to attract advertisers.

The industry saw numerous mergers and acquisitions aimed at consolidating capabilities to meet advertiser demands for scale, programmatic access, and reliable measurement. Major streaming platforms, including Netflix and Disney, reported increased profitability and subscriber growth in their ad-supported offerings.

The programmatic landscape evolved as Netflix and other streamers developed in-house ad technologies and formed strategic data partnerships to optimise ad performance. Measurement standards remained contentious, with new and traditional metrics vying for dominance, highlighting ongoing debates over the effectiveness and reliability of different advertising currencies.

AI Empowers Publishers to Sell Better, If They Rise to the Opportunity.

AI is revolutionising the way publishers approach ad targeting, monetisation, and brand safety, offering more nuanced tools to unlock the potential of their content. This year, major publishers like Hearst and Dotdash Meredith launched new AI-powered products that enhance how advertisers connect with audiences through premium content.

However, publishers need to adjust their strategies, including redefining CPM rates and reshaping brand safety measures, to fully capitalise on AI's capabilities. Successful adaptation will require publishers to collaborate with industry groups and ad tech partners to set new standards and practices that reflect the advanced capabilities provided by AI. 

A Time for tech firms to act: UK online safety regulation comes into force.

Ofcom has released the first edition of its codes of practice and guidance under the UK’s Online Safety Act, aimed at protecting individuals from illegal harms such as terror, hate, and child sexual abuse online. These new regulations require tech firms, including social media platforms and search engines, to implement over 40 safety measures by March 2025, enhancing online security and requiring risk assessments to be completed.

The guidance includes specific measures for protecting children from online grooming by restricting profile visibility and direct messaging by non-connected accounts, and uses AI tools to detect harmful content. It also focuses on protecting women and girls from online harassment and non-consensual content, and mandates the removal of terrorist accounts and content.

Tech companies failing to comply with these standards could face severe penalties, including fines and site blocking by Ofcom. This initiative is part of a broader effort to regulate online spaces more strictly, with ongoing consultations and additional protective measures expected to be introduced in the coming years.

▸ Week 50

• - Programmatic Transparency Benchmark Update
• - Redefining Seller Defined Audiences
• - Publishers and the OMG/IPG Merger
• - Changes in US Streaming Trends
• - Programmatic CTV Genre Guidance Released
• - Publishers Moving Beyond Cookies
• - Digital Economy Consolidation Forecast
  
  
  

Programmatic Transparency Benchmark: December 2024 Findings Update. 

The Association of National Advertisers (ANA) released its latest programmatic transparency benchmark study, revealing that for every $1,000 spent in a DSP, only 44% goes towards quality, viewable impressions by real consumers, an improvement from last year's 36%. Despite this progress, less than half of the ad spend achieves the desired visibility, indicating substantial room for improvement in the industry.

The study also noted a decline in expenditures towards MFA sites, with marketers reporting a drop to 6.2% from 15% in 2023, although billions are still being funneled into these sites. Additionally, with the number of SSP increasing, the ANA highlighted the need for further optimisation in programmatic spending.

IAB Tech Lab Is Redefining Seller Defined Audiences.

The IAB Tech Lab is rebranding its Seller Defined Audiences curation specification to "Curated Audiences," aimed at boosting adoption by capitalising on the industry's current interest in curation. Despite the existing framework including standards like the Data Transparency Standard and OpenRTB SupplyChain object, adoption has been slow, leading to the rebrand as an attempt to make the specification more appealing.

Katsur has acknowledged the need for further enhancements to the framework, suggesting that the terminology "seller-defined" may have deterred buy-side engagement, who prefer more control over audience definition. The rebrand to "Curated Audiences" represents a strategic marketing effort to align with industry trends and encourage broader utilisation of the Tech Lab's curation tools.

Publishers Aren’t Sweating The OMG/IPG Merger.

The potential merger of Omnicom and Interpublic Group (IPG) has stirred the advertising industry, indicating major shifts in tech utilisation and buying practices. Publishers anticipate that the merger will lead to significant tech stack consolidations, potentially reducing redundancy and affecting tech vendors more than publishers themselves.

This consolidation could also reinforce principal-based buying, a method where agencies buy media and resell it to brands, which both companies support. Despite these changes, publishers do not foresee a need to alter their sales strategies significantly, as the impact on go-to-market approaches and sales team structures is expected to be minimal. 

What’s Changed in a Year of US Streaming?

Nielsen's final 'The Gauge' report of 2024 reveals that streaming now accounts for 41.6% of TV viewing time in the US, a record high, indicating a continued shift from traditional broadcast and cable TV. However, the growth of streaming's share has shown some fluctuation over the past two years, suggesting a more gradual increase than previously perceived.

Individual streaming services like YouTube and Netflix have seen modest gains, but no service has made dramatic advances against competitors, with most maintaining similar market positions year-over-year. Notably, smaller, ad-supported services like The Roku Channel and Tubi, as well as a collective of 'other streaming' services, have seen significant growth, pointing to a diversifying streaming landscape. 
 

IAB Tech Lab Releases Programmatic CTV Genre Guidance Leveraging Content Taxonomy, Including Mappings for Upgrades for Public Comment. 

The IAB Tech Lab announced the release of new resources aimed at aiding the digital advertising industry in utilising its Ad Product Taxonomy and CTV genre values, now open for public comment until January 24, 2025. These tools are designed to facilitate the industry's transition from the outdated Content Taxonomy 1.0 to more refined taxonomies, enhancing programmatic advertising operations.

According to CEO Anthony Katsur, this initiative is intended to reduce operational complexities, allowing businesses to focus more on value creation. The updates, developed by the Taxonomy & Mapping and Programmatic Supply Chain Working Groups, include new OpenRTB attributes, updates to the genres list, and detailed mapping and implementation guidance for transitioning taxonomies.

Digiday+ Research: Publishers expected Google to keep cookies, but they’re moving on anyway.

Google's decision to retain third-party cookies in Chrome did not alter publishers' ongoing plans to move away from using such cookies, as evidenced by a Digiday+ Research survey conducted among 40 publisher professionals. Despite Google's reversal, 80% of respondents are still pursuing alternative tracking methods.

The survey revealed that 70% of publishers had anticipated Google might backtrack on its plan to phase out third-party cookies. Furthermore, a significant majority, 77%, reported having strategies in place for tracking consumers without relying on third-party cookies.

Only 20% of publishers plan to continue relying on third-party cookies following Google’s decision. Overall, the industry shows strong readiness to adopt new tracking mechanisms, with most publishers prepared for a post-cookie advertising environment. 
 

Digital Economy Consolidates “Around a Few Massive Platforms” in GroupM Forecast. 

Global ad spend is projected to exceed $1 trillion this year and reach $1.1 trillion next year, with a 9.5% growth in 2024 and 7.7% in 2025, according to GroupM's 'This Year Next Year' report. The report notes that a majority of the ad spend is concentrated within five major corporations—Google, Meta, ByteDance, Amazon, and Alibaba, which are expected to capture more than half of all ad revenue in 2024.

GroupM predicts digital and particularly pure-play digital advertising, which includes social media and online video, will make up 72.9% of total spend in 2025. Despite potential regulatory challenges impacting platforms like TikTok, digital advertising growth is expected to continue, though it will face competition and consolidation, mainly among major players already dominating the market.

▸ Week 49

• - Publishers’ strategy on Bluesky remains undefined
• - Experian’s acquisition of Audigent underscores curation's influence
• - IAB Europe’s outlook for the new European Commission
• - AI-driven ad buys reshape programmatic marketing
• - The curation debate: fact vs. fiction in ad tech
• - Tech Lab unveils Ad Creative ID Framework for feedback
• - Global ad spend forecast: 5.9% growth by 2025
• - The Guardian US shifts to private marketplaces
• - Redefining brand safety in a post-GARM era
• - Kantar Media: Key trends and predictions
  
  
  

Media Briefing: Publishers’ strategy on Bluesky is TBD.

This week's Media Briefing explores the varied publisher strategies for emerging platforms like Bluesky, Threads, and X, noting that Bluesky’s and Threads’ traffic are minor compared to X. While publishers are mostly in the test-and-learn phase without a solid strategy for Bluesky, some, like The Boston Globe, report promising referral traffic and subscriber conversions from the platform.

However, tracking Bluesky users is challenging due to limitations in the platform's analytics capabilities, prompting some publishers to use workaround methods like UTM codes. Despite the initial challenges and small scale, publishers are cautiously optimistic, watching these platforms to adapt and potentially increase their engagement and traffic strategies over time. 

A sign of things to come: Experian’s acquisition of Audigent highlights curation’s rising influence. 

Experian has acquired Audigent for $200 - $250 million, enhancing its data and identity solutions and securing a strategic position in the shifting ad tech landscape. The acquisition, which builds on a partnership that began in 2022, positions Experian to capitalise on the decline of third-party cookies by incorporating Audigent’s first-party data and sell-side distribution into its marketing solutions.

Industry experts note that the deal reflects broader trends in ad tech, where companies are increasingly seeking to integrate media packaging and verification to stay competitive. Audigent will continue as a standalone brand within Experian, with plans to further integrate its technologies and data capabilities into Experian’s advertising solutions. 
 

IAB Europe’s Expectations for the New European Commission.

IAB Europe has extended congratulations to President Ursula von der Leyen and her College of Commissioners, marking a crucial moment for Europe to strengthen its role in an inclusive, innovative, and sustainable digital economy. They urge the new European Commission to prioritise the effective implementation of existing digital frameworks like the GDPR and the Digital Services Act.

The group highlights the necessity of consistent and evidence-based regulations to support the digital advertising sector, which is vital for funding diverse content and services while promoting Europe’s digital competitiveness. IAB Europe advocates for cohesive regulatory practices across EU member states to reduce fragmentation and encourages collaborative efforts to enhance transparency, safety, and sustainability in digital advertising. 

Programmatic marketers sound off on impact of AI-driven ad buys. 

At the Digiday Programmatic Marketing Summit, agency executives discussed how AI integration is altering their roles and impacting their ability to optimise campaigns for clients. They expressed concerns about the transparency of AI-driven ad buying, noting difficulties in understanding and controlling automated decisions that affect campaign outcomes.

Executives also highlighted challenges with incrementality, as AI might optimise for conversions from users who would have converted anyway, potentially overlooking broader strategic opportunities. The summit revealed that defining value in an AI-driven industry is crucial, with agencies needing to emphasise strategic thinking over technical tasks.

Agencies are advised to communicate their strategic contributions clearly to clients, enhancing perceived value and trust. Overall, the discussions underscored the need for a balance between leveraging AI efficiencies and maintaining strategic control in advertising campaigns.

The curation conundrum: separating fact from fiction in ad tech’s latest obsession. 

Ad tech's "curation" concept is not new; it has evolved from data-driven tools curating impressions in the open programmatic market. Curation encompasses a spectrum of strategies beyond sell-side targeting, such as traffic shaping and supply-path optimisation, challenging the misconception that it's just about advertiser-demanded quality.

While curation is seen as potentially disruptive, it still heavily relies on SSPs to connect supply and demand, indicating that SSPs are adapting rather than disappearing. Myths around curation highlight misunderstandings about its impact on quality, publisher revenue, and its replacement of agency expertise, emphasising the complexity and evolving nature of curation in ad tech.

Tech Lab releases Ad Creative ID Framework (ACIF) Validation API for Public Comment. 

On December 4, 2024, IAB Tech Lab launched a public comment period for the ACIF Validation API to standardise and automate creative ID validation in TV and video ad operations. CEO Anthony Katsur emphasised the API's potential to resolve industry inefficiencies and called for community input to refine the tool before the comment period ends on January 18, 2024.

The ACIF Validation API is part of a broader effort to normalise the tech stack across TV and video platforms, requiring ad registration authorities to support it and encouraging ad tech platforms to integrate it. This standardisation benefits key players across the ecosystem, from ad registration authorities to platforms that handle automated creative workflows.

Global Ad Spend Forecasts 2025: 5.9% Growth Predicted as Algorithmic Strategies Reshape Media Investments.  

The global advertising market is projected to grow by 6.8% in 2024, reaching $772.4 billion, bolstered by significant increases in digital ad spend and events influencing key markets such as the US and UK. The UK advertising market is expected to outperform with a 7.5% growth in 2024, driven by strong digital media contributions.

Algorithmically enabled advertising is forecasted to comprise 59.5% of total ad spend in 2024, escalating to 79.0% by 2027, reflecting the industry’s shift towards data-driven strategies. Regionally, the Americas are poised to lead growth in 2025, driven by digital and streaming investments in the US and Brazil, while AI-driven placements boost the Asia-Pacific region, and EMEA sees a 5% growth mainly through digital channels.

Dentsu's analysis highlights the growing importance of digital channels, with a projected increase to $513.0 billion by 2025, capturing 62.7% of global ad spend. Retail media and programmatic advertising are expected to see significant growth, with retail media predicted to grow by 21.9% yearly due to high-value consumer data utilisation, and programmatic making up over 70% of digital ad spend by 2027. 

The Guardian US Is Following Programmatic Budgets To Private Marketplaces. 

Programmatic advertising is shifting from open auctions to curated private marketplaces (PMPs), offering opportunities for publishers like The Guardian US, as highlighted by their new VP of Revenue Operations, Dave Strauss. Strauss emphasises that PMPs allow buyers to know exactly what inventory they are purchasing, utilising first-party data for targeted advertising.

To leverage PMPs effectively, The Guardian US is training their sales team to become well-versed in programmatic sales, aiming to sell bundled advertising solutions that include video and display. In adapting to the evolving ad landscape, The Guardian is also evaluating its partnerships with SSPs to optimise the quality of partnerships and unique demands.

Despite a slight decline in revenue, The Guardian sees growth in programmatic revenue, particularly in North America, and is not overly dependent on third-party cookies, increasingly pivoting to contextual targeting. Additionally, The Guardian continues to explore new revenue streams such as affiliate marketing and has seen significant growth in reader contributions, reinforcing the value of their content and audience engagement.

Retooling Brand Safety in a Post-GARM World.

The closure of GARM (Global Alliance for Responsible Media) in August due to a lawsuit by Elon Musk’s company, X, has left lingering questions about the impact on established brand safety standards. Despite GARM's dissolution, its standards continue to influence the industry, as publishers and platforms maintain their adherence to the established brand safety policies and taxonomies.

Legal and political pressures stemming from the lawsuit could potentially influence advertisers' behavior, yet the industry maintains a commitment to brand safety, with major companies affirming their ongoing adherence to GARM's guidelines. Brand safety tools are expected to continue evolving to meet the needs of a complex media landscape, ensuring ongoing prioritisation of responsible advertising practices. 

Kantar Media: MEDIA TRENDS & PREDICTIONS

The 2025 outlook for media and entertainment is optimistic yet challenged by regulatory changes and shifts in content consumption. The annual report highlights key trends including industry convergence, audience attention, regulatory impacts on data and AI, and the necessity for skills development.

▸ Week 48

• - Bluesky delivering more referral traffic than X for some publishers
• - Digiday+ Research: How programmatic shook out for publishers in 2024
• - Canada's antitrust watchdog sues Google for anti-competitive conduct
• - Samsung Ads Report: Targeting the Right ‘TV Moments’ for CTV Success
• - Google subpoenas OpenAI, Perplexity, and Microsoft in search remedies trial
• - DOJ and Google make closing arguments in landmark adtech antitrust trial
• - Publishers grapple with lack of control over deal curation
• - Programmatic Ad Seller Misrepresentation Report
  

Bluesky already delivering more referral traffic than X for some publishers.

Bluesky, a new social network, has outperformed both X and Threads in driving referral traffic to The Guardian's website, with reports of significantly higher engagement and digital subscriber conversions. Guardian Australia's audience editor, Dave Earley, noted that within just one week of joining Bluesky, they saw double the traffic from Bluesky compared to Threads, and more than any week in 2024 from X.

The Boston Globe also observed similar trends, with Bluesky driving three times more traffic than Threads and converting 4.5 times more digital subscribers. Bluesky's appeal lies in its simplified user experience and lower levels of misinformation and commercial content compared to X, alongside not having Elon Musk, a dominant and controversial figure on X.

Other publishers and independent journalists have reported a shift in referral ratios favoring Bluesky over other platforms, indicating a broader trend in the industry. As Bluesky's user base grows and publisher visibility on other platforms like X diminishes, Bluesky is positioned to become the preferred microblogging site for professional journalism. 

Digiday+ Research: How programmatic shook out for publishers in 2024.

Programmatic ads continue to be a crucial revenue source for publishers in 2024, although their focus on programmatic might lessen in 2025. Digiday+ Research's surveys of nearly 50 publisher professionals in the first and third quarters of the year show that 86% of publishers derive some revenue from programmatic ads, a slight increase from 82% earlier in the year.

However, while more publishers report a substantial income from programmatic ads by the end of 2024, a larger percentage than before also note only a minor income from this source. Notably, while 36% of publishers in Q3 said a significant portion of their revenue comes from programmatic ads, up from 33% in Q1, 25% reported only a small revenue share from these ads, up from 17% at the start of the year.

Despite this, fewer publishers plan to prioritise enhancing their programmatic ad business in the coming six months, with only 47% considering it a major focus, down from 53% in Q1. The interest in direct-sold and open market programmatic ads has increased, with 90% and 92% of publishers, respectively, gaining at least a small portion of their revenue from these sources by Q3, up from 80% in Q1.

Yet, the dynamics differ between these sources; direct-sold ads see an increase in publishers earning a substantial revenue, while the share earning a lot from the open market has slightly decreased. Overall, while direct-sold programmatic ads show growth potential, the open market still commands a significant portion of programmatic revenue, indicating nuanced shifts in publishers' strategies heading into 2025. 

Canada's antitrust watchdog sues Google alleging anti-competitive conduct in advertising. 

Canada's Competition Bureau is suing Google for alleged anti-competitive behavior in online advertising, demanding the sale of two ad tech tools and a penalty to enforce compliance with national competition laws. The Bureau's investigation, initiated in 2020 and expanded in 2023, accuses Google of abusing its dominant market position to maintain and strengthen its control over web advertising.

Google defends its ad technologies as beneficial for websites and businesses, and plans to contest the charges in court. This legal action in Canada follows similar scrutiny by the U.S. Justice Department and ongoing antitrust discussions in the EU regarding Google's advertising practices. 

New Samsung Ads Report: Targeting the Right ‘TV Moments’ is Key to CTV Success.

Samsung Ads' new report, "Change The Way You CTV" emphasises the variation in audiences' receptiveness to advertising depending on their 'TV Moment,' which includes their emotional state, environment, and viewing motivation. The research introduces the 'ad acceptance hierarchy,' revealing that a viewer's motivation and emotional state influence their openness to advertisements.

It suggests that advertising effectiveness can be enhanced by targeting the right TV Moments, moving beyond traditional metrics of reach and frequency to consider the nuances of viewer context. Shared viewing experiences, such as watching TV with family or partners, have been found to increase ad acceptance and engagement, with different types of TV like free ad-supported streaming TV (FAST) seeing high rates of shared viewing.

Age and gender also play a role, with older generations generally more accepting of ads, while younger viewers are more likely to act on them, and men showing higher tolerance up to a tipping point. The report challenges traditional TV planning methods by highlighting the importance of aligning ad strategies with actual viewer receptiveness and engagement, suggesting a shift towards more data-driven and viewer-centric advertising approaches.

Google uses search remedies trial to subpoena OpenAI, Perplexity and Microsoft over their generative AI efforts.

In the remedies phase of Google's search antitrust trial, Google has subpoenaed leading AI competitors including OpenAI, Perplexity AI, and Microsoft, aiming to demonstrate increased competition in the search and advertising sectors. The subpoenas request various data such as usage statistics, financial performance, and strategic documents, suggesting Google seeks to highlight the competitive landscape influenced by AI advancements.

The legal filings reveal Google's strategy to present evidence of emerging competition from AI-powered search tools to counter claims of monopolistic practices. The companies subpoenaed have varied responses, with OpenAI agreeing to some requests while objecting to others as burdensome, and Microsoft agreeing to provide documents for most requests, citing objections to a few based on relevance and confidentiality concerns.

The broader legal context includes Google potentially facing orders to sell assets like Chrome, which could significantly impact its market position, although any major changes are expected to undergo prolonged legal battles. Experts and industry insiders are discussing the potential long-term effects on market dynamics, particularly how newer AI-driven companies like Perplexity might struggle to scale in an ad-dominated market still largely controlled by Google. 

DOJ and Google make closing arguments in landmark adtech antitrust trial. 

The Google adtech antitrust trial concluded with closing arguments, where DOJ lawyers depicted a monopolistic scene starkly different from Google's narrative of a competitive industry. The case now awaits a ruling, with U.S. District Judge Leonie Brinkema's questions hinting skepticism about Google's claim of non-monopoly, particularly concerning the definition of the ad market.

Google's defense emphasised historical legal precedents and argued the trial should view the adtech landscape as a unified market, a point the DOJ contests with its focus on Google's dominance in segmented markets. Significant during the trial was Judge Brinkema's concern over Google's broad market definitions and missing evidence, potentially leading to an adverse inference regarding the destroyed documents.

The trial also highlighted a disconnect between Google's portrayal of market dynamics and the realities outlined by the DOJ, which focused on Google's alleged restrictive practices affecting competition. The decision will hinge on how Judge Brinkema interprets the market structure and whether Google's market behavior aligns with antitrust violations, with implications for the digital advertising landscape.
 

Publishers Grapple With A Lack Of Control Over Deal Curation.

The sell-side curation movement is gaining momentum in programmatic advertising, leading SSPs to rapidly form partnerships with DMPs. Despite the allure of curation as a means for publishers to leverage their first-party data, many publishers find themselves automatically enrolled in these programs without consent, losing control over their data and participation.

At a recent programmatic summit, publishers like Amanda Gomez from The New York Post voiced concerns about lack of transparency and control in how their data is used and how deals are structured. Publishers are also worried about pricing transparency, as some curation practices can negatively impact their revenue without setting effective pricing floors.

There is fear among publishers that initially favorable curation terms could be unfavorably renegotiated once they become reliant on the revenue from these deals. The broader discussion at the summit reflected a skepticism toward curation's promise of enhanced control and profitability, highlighting operational challenges and the limitations imposed by existing ad management systems.

Programmatic Ad Seller Misrepresentation Report - Web. 

Pixalate's report reveals that 5% of desktop and mobile web ad impressions are sold by unauthorised direct sellers, causing a 94% surge in ad fraud. Additionally, 11% of all Supply Chain Objects on these platforms fail verification, highlighting significant issues in programmatic advertising compliance.

▸ Week 47

• - News publishers flocking to Bluesky but staying on X
• - Is owning content a conflict for DSPs
• - Publishers’ Q4 programmatic ad businesses in limbo
• - IAB Tech Lab introduces “ID-Less Solutions Guidance” for public comment
• - UK Publishers Back AI Compensation Startup ProRata
• - Forrester’s SSP Wave ranks Google at the bottom
• - US lawyers push for Google to sell Chrome and unbundle Android
• - Kantar Media Webinar: 2025 media trends & predictions
  
  

News publishers may be flocking to Bluesky, but many aren’t leaving X. 

Despite some publishers like The Guardian and NPR reducing their activity on platform X due to concerns about toxicity and ownership, they have not left the platform entirely. Other major publishers, including The New York Times and Reuters, have no plans to abandon X, indicating that it remains a relevant channel for engagement despite its reduced role in driving referral traffic.

On Election Day, platform X saw a significant, if temporary, increase in referral traffic to publishers, but overall, the platform's contribution to traffic has been declining since 2023. While individual publishers like The Dodo and Polygon have ceased posting due to the platform's hostile environment, others within the same media groups see continued value in maintaining their presence on X for audience engagement in sports and entertainment. 

Is Owning Content Actually A Conflict For DSPs?

Despite CEO Jeff Green's initial denials, The Trade Desk has confirmed it has been developing its own CTV operating system named Ventura, aiming to compete with established players like Roku, Amazon's Fire TV, and Google's Android. The company argues that unlike other OS providers, which also own content libraries, The Trade Desk does not face a conflict of interest as it doesn’t own streaming content.

Green suggests that this content neutrality could provide a more objective platform for advertisers. However, industry experts are divided on whether owning content truly poses a conflict of interest.

They point out that platforms like Comcast and Amazon already manage to offer diverse content without limiting consumer choice or advertiser access. Overall, The Trade Desk’s move into the TV OS market is seen as an attempt to innovate control and identity management within CTV, with experts curious about how Ventura will balance advertiser value and user experience without content holdings.

Media Briefing: Publishers’ Q4 programmatic ad businesses are in limbo.

This week’s DigiDay’s Media Briefing reveals that while programmatic ad sales in the open market have slowed in the U.S. and Europe during Q4, they have increased in the private marketplace. Publishers are facing a rare kind of uncertainty due to a tumultuous news cycle, the U.S. presidential election, and shifts in ad spending patterns, leaving them unsure about the final quarter's outcomes.

Notably, the head of programmatic at a North American gaming publisher observed a strong Q3 but a slower start to Q4, though there has been a recent uptick following promotional events like Amazon’s Prime Day. While Google’s ad exchange has seen a decline, other exchanges and direct deals are compensating, with some publishers experiencing significant increases in programmatic direct deals.

However, the general sentiment remains mixed, as the market is still adjusting post-election, and the real impact on Q4 will only become clear by its end. Despite these challenges, forecasts from sources like eMarketer suggest potential growth in programmatic ad spending, indicating opportunities for publishers able to capitalise on them. 

IAB Tech Lab Introduces “ID-Less Solutions Guidance” for Public Comment.

The IAB Tech Lab has released its "ID-Less Solutions Guidance" document for public comment to address the diminishing utility of traditional identifiers like third-party cookies. This guide aims to assist advertisers and publishers by offering frameworks and strategies for operating effectively without reliance on conventional IDs.

Authored by the Addressability and Privacy Enhancing Technologies working group, it clarifies the differences between traditional and ID-less methods and provides a roadmap for adopting new technologies. Stakeholders are encouraged to review and give feedback on this guidance until December 19, 2024, as part of IAB Tech Lab's efforts to promote privacy-conscious advertising solutions. 

UK Publishers Back AI Compensation Startup ProRata. 

Several UK news publishers, including Guardian Media Group, Sky News, and dmg media, have partnered with ProRata.ai, a startup that aims to credit and compensate publishers whose content is used by generative AI tools. ProRata.ai plans to launch an 'answer engine' later this year, which will utilise publisher content to generate responses, and will share 50% of its revenue based on the usage of their content.

ProRata's technology credits and compensates content creators by analysing AI outputs to measure and calculate contributions using a proprietary algorithm. The model promises a fair compensation system by only sourcing content from licensed partners, distinguishing it from other generative AI tools that often rely on broad licensing deals or content harvesting without direct compensation. 

Forrester’s SSP Wave Lists The Top 10 SSPs – With Google At The Bottom (Really). 

Forrester recently released its first SSP wave since 2014, highlighting significant shifts in the SSP landscape. Google, previously considered a leader, was downgraded to a challenger position due to a lack of innovation and transparency, falling behind competitors like Amazon, Magnite, and PubMatic.

The report cited Google's limited response to the phasing out of third-party cookies and its poor integration of new privacy frameworks as major reasons for its lower ranking. In contrast, Amazon Ads has risen to the category leader, appreciated for its interoperability with alternative identifiers and strong performance in the retail media sector.

Magnite has been acknowledged as a standard-bearer in the programmatic CTV ad space, leveraging its acquisition of SpringServe to enhance its video and CTV curation. PubMatic, noted for its comprehensive support to publishers and innovative header bidding solutions, narrowly competes with Amazon and Magnite for the top position.

In the strong performers category, InMobi and Index Exchange were lauded for their mobile expertise and overall competence, though Index’s lack of an ad server was seen as a competitive disadvantage. Adform and OpenX struggled, with OpenX's low industry engagement highlighting the importance of visibility in maintaining a competitive edge in ad tech. 

US lawyers will reportedly try to force Google to sell Chrome and unbundle Android.

The Department of Justice (DOJ) is set to request that Google be compelled to divest its Chrome browser following a judicial determination that the company has illegally monopolised search. This proposal comes amidst claims that Chrome facilitates Google's cross-promotion of products, thereby stifling competition.

Additionally, the DOJ plans to enforce separation of Android from Google Search and Google Play without mandating the sale of Android, and to enhance transparency and control for advertisers in their dealings with Google. Further recommendations include providing websites more control over the use of their content by Google's AI technologies and prohibiting exclusive contracts that have been central to the case against Google.

Kantar Media Webinar: 2025 MEDIA TRENDS & PREDICTIONS.

Kantar Media is hosting a broadcast to look into the trends and predictions featured in this year's report and hear from media leaders about the opportunities and challenges set to shape the ecosystem in 2025.

December 4th, 2024 
3PM CET  | 2PM GMT | 9AM EST.

Register here.

▸ Week 46

• - Google prepares to unveil Chrome’s cookie opt-in model.
• - Political ads to end in the EU as Google responds to new regulations.
• - GPP updates introduce expanded data privacy compliance measures.
• - CMA demands updated commitments for Google’s Privacy Sandbox.
• - Facebook and Instagram launch ad-free subscriptions in Europe.
• - Subscriptions resurge as publishers refocus revenue priorities.

Google is getting ready to unveil how Chrome’s cookie opt-in model will work, sources say.

In July, Google’s announcement to retain third-party cookies in its Chrome browser disrupted the digital media industry, overturning years of investment in cookie-free solutions. This decision shifted control over cookie usage to Chrome users, while Google continues developing Privacy Sandbox APIs to balance privacy and ad-supported internet needs.

The announcement has placed the ad tech industry in a holding pattern, with many awaiting clarity on Google’s cookie consent prompt and its potential impact on user opt-in rates. The UK’s CMA and ICO have expressed concerns about Google’s Privacy Sandbox meeting regulatory standards, highlighting ongoing scrutiny.

Industry stakeholders, particularly on the sell-side, are pressing Google for transparency, fearing a repeat of monetisation losses seen with Apple’s 2022 ATT update. Without clarity on alternatives like Topics or Attribution APIs, ad tech players remain hesitant to invest, demanding broader adoption before further third-party cookie deprecations.

Google says it will stop serving political ads in the EU. 

Google will stop showing political ads in the EU next year due to challenges and legal uncertainties posed by the new Transparency and Targeting of Political Advertising (TTPA) rules. The TTPA, set to take effect in October 2025, aims to prevent election interference by requiring clear labelling of political ads, transparency about ad funding, and explicit user consent for targeting.

Google criticised the broad definition of political advertising and the lack of clarity in the regulation, which it says makes compliance at scale difficult. Similar to its actions in France, Canada, and Brazil, Google plans to cease political ads in the EU before the rules are enforced, while continuing to evaluate its approach. 

GPP Update: Important Changes to Inform Your Data Privacy Roadmap.

The IAB Tech Lab has expanded the GPP to include Delaware, Iowa, Nebraska, New Hampshire, New Jersey, and Tennessee to address newly enacted data privacy laws. These changes aim to harmonise data fields across states, and the MSPA US National Section has been updated to version 2.0, introducing new categories in the SensitiveDataProcessing field and revised age ranges in the KnownChildConsents field.

The GPP now covers 15 states with comprehensive data privacy laws and plans to extend to five more states, including Minnesota and Maryland, by mid-2025. This brings the total coverage to 19 or 20 states, depending on whether Florida's Digital Bill of Rights is included. More info on each state in the original article.

The CMA Wants Updated Privacy Sandbox Commitments From Google By Next Month. 

The UK’s CMA is scrutinising Google’s decision to retain third-party cookies but introduce a user choice mechanism. While the CMA acknowledges Google’s adherence to commitments not to favour its own advertising business, it remains concerned about the competition implications and unresolved issues like the Topics API, which may disproportionately benefit Google due to its first-party data access.

The CMA is collaborating with the UK’s Information Commissioner’s Office (ICO), which has expressed disappointment over Google’s decision to keep cookies, arguing it hampers consumer privacy progress. Both regulators are navigating the tension between privacy improvements and competition fairness, with the CMA pushing for updated commitments and the ICO reserving the right to take independent regulatory action.

The CMA plans to release Google’s updated Privacy Sandbox commitments for public comment by Q4, ensuring ongoing oversight of the ad tech ecosystem’s changes. As industry stakeholders remain cautious, the CMA and ICO’s collaboration highlights the complex interplay between privacy and competition in digital advertising. 

Facebook and Instagram to Offer Subscription for No Ads in Europe. 

Meta has announced a 40% price reduction for ad-free subscriptions on Facebook and Instagram in the EU, with web prices dropping to €5.99/month and mobile to €7.99/month. Users can choose between this subscription, a free service with personalised ads, or a new option to see less personalised ads based on minimal data.

The less personalised ads option, designed to meet evolving EU regulations, may show less relevant ads and include unskippable ad breaks to support advertisers. Meta reaffirms its commitment to personalised advertising, highlighting its value for businesses and consumers, while continuing to adapt its offerings to regulatory requirements.

Digiday+ Research: Subscriptions poised to make a comeback as publishers sort out revenue priorities for 2025.  

Heading into 2025, direct-sold ads, branded content, and subscriptions remain publishers’ top revenue priorities, with subscriptions seeing significant growth in focus. Digiday’s survey revealed that 71% of publishers plan to prioritise direct-sold ads, 52% will focus on branded content, and 50% on subscriptions, up from just 37% last year.

Video advertising saw a boost in relevance, rising to the second most common revenue source, while programmatic ads and CTV declined in focus and revenue contribution. Subscriptions experienced notable growth, with 21% of publishers now earning a large portion of their revenue from them, compared to 11% last year.

Affiliate commerce also increased, with 68% of publishers generating some revenue from it this year, up from 61%. However, branded content dropped as a revenue source, from 96% of publishers last year to 88% this year.

Programmatic ads remain significant but saw reduced focus, with 84% of publishers prioritising them, down from 91% last year. Overall, publishers are aligning their efforts towards direct-sold ads, subscriptions, and branded content while adjusting to shifting industry dynamics.

▸ Week 45

• - European Publishers Challenge Brand Safety Rules
• - UK Festive Ad Spend to Hit £10 Billion
• - IAB Europe Reveals Programmatic Trends
• - Publishers Shift from Trend Chasing
• - 2024 State of Digital Identity Report by ID5 Released
• - Google Embraces Ad Tech Curation
• - IAB Tech Lab Finalizes Accountability Platform
  

Media Briefing: European publishers speak out on advertisers’ punishing brand safety practices.

In response to the recent U.S. presidential election, publishers fear increased brand safety measures by advertisers could lead to higher content blocking and hence, financial disparities faced by publishers. At Digiday Publishing Summit Europe, participants expressed frustration with the disproportionate ad spend directed towards social platforms despite publishers adhering to stringent regulations.

Publishers indicated that overblocking is a significant financial burden, citing examples such as the high rate of blocked content around seasonal events like Halloween. The relationship between publishers, agencies, and ad verification firms was criticised for being overly reliant on outdated safety measures like keyword blacklisting, which often results in valuable content being unfairly blocked.

Publishers argued for better communication and cooperation across the industry to address these issues, suggesting that agencies and clients should reevaluate their brand safety strategies to support credible news sources more effectively. Lastly, there was a consensus on the need for technological improvements in ad verification to move towards more contextually aware algorithms that could distinguish between controversial and innocuous content more accurately.

UK Ad Spend to Surpass £10 Billion Over Festive Season with TV Left Out in the Cold. 

UK advertising expenditure is projected to surpass £10 billion during the festive season, marking a 7.8% increase from the previous year, with Q4 traditionally being the peak time for consumer spending. Online display, search, and out-of-home advertising are expected to experience the most significant growth, with increases of 15.8%, 8.8%, and 8.1% respectively, while cinema advertising also sees a rise, partly due to high-profile film releases.

Conversely, TV ad spend is anticipated to decline by 4.3% year-on-year, continuing the trend of shifting viewer preferences towards broadcaster video-on-demand (BVOD) platforms, which are expected to grow by 7.8%. The Advertising Association highlights the importance of the final quarter for businesses to enhance visibility and drive sales, emphasising the role of creative advertising in fostering brand success and supporting jobs.

Despite a historical dip in ad spend during the 2022 recession, the trend over the past 15 years shows consistent growth in Q4 ad expenditures since the 2009 financial crisis. Additionally, consumer affection for Christmas TV advertisements is increasing, with more people looking forward to and enjoying seasonal advertising, reinforcing its value for brand impact and loyalty. 

IAB Europe’s 10th Annual Attitudes to Programmatic Advertising Report Unveils Latest Market Insights and Trends.

IAB Europe's 2024 Attitudes to Programmatic Advertising Report  provides detailed insights into the programmatic advertising sector, analysing the adoption trends, drivers, and barriers across Europe. Gathered from 254 stakeholders across 31 markets, the report identifies a significant shift toward programmatic-first strategies in an ad market worth €96.9 billion.

Notably, the survey reveals robust growth in programmatic spending for mobile and display, with a notable pivot towards newer areas like CTV and Retail Media, reflecting evolving channel strategies. CTV, in particular, is highlighted as a key growth area, as advertisers leverage programmatic methods to tap into the expanding audience on streaming platforms.

AI and improved addressability are anticipated to be major growth drivers, with the industry focusing on first-party data and contextual targeting to prepare for a post-cookie era. However, challenges such as media quality, brand safety, and privacy are becoming prominent concerns, with a substantial percentage of advertisers emphasising the need for better standards in these areas to sustain growth.

Sustainability is also becoming a critical focus, although progress varies significantly among stakeholders, with agencies showing more commitment than advertisers to achieving Ad Net Zero goals. Overall, the report underscores the ongoing role of programatic advertising in shaping future marketing strategies across Europe, suggesting that continuous innovation and adherence to emerging privacy and sustainability standards will be crucial for the industry's advancement. 

At the Digiday Publishing Summit Europe, publishers move away from trend chasing.  

The publishing industry is transitioning from a phase of hastily adopting every new trend to a more deliberate strategy focused on cultivating deeper relationships with their audiences across various channels. This shift is highlighted by publishers like Mail Metro Media, which is moving away from traditional advertising sales to explore e-commerce and other revenue models that engage consumers throughout the entire purchase cycle.

Publishers are also recognising the value of their intellectual property, with some, like The Independent, seeking to capitalise more effectively on their most compelling content through partnerships with production studios. Despite these shifts, advertising remains a critical revenue source, with publishers aiming to control the flow of ad dollars more directly and reduce dependency on third-party platforms.

For instance, BBC Studios is enhancing its approach to Free Ad-Supported TV (FAST) by working closely with partners to better understand and optimise ad sales and revenue generation. Similarly, DPG Media has developed its own ad technology to attract direct ad spending and compete more effectively in local markets, providing alternatives to dominant platforms like Google and allowing more freedom for advertisers in tech choice.

Google is getting in on the latest ad tech craze: curation.

Google Ad Manager is stepping into the "curation" trend in ad tech by launching new services and forming partnerships aimed at enhancing the precision of ad inventory curation using first-party publisher data. This initiative underscores the strategic importance of curation, which involves organizing auction collections using various data signals to optimise the ad buying process in Google's ecosystem.

While Google's approach allows better targeting through their robust ad server, it also represents an effort to maintain relevance and possibly counteract any adverse outcomes from its ongoing antitrust trials. The development has potential to shape future practices in digital advertising by setting new standards in data usage and ad curation, despite the industry's ongoing challenges with standardisation and value delivery in the ad tech supply chain.

The 2024 State of Digital Identity Report by ID5 is now available. 

The 2024 State of Digital Identity Report by ID5 offers an in-depth analysis of the advertising industry's response to Google's reversal on phasing out cookies and its adaptation to identity resolution technologies. The survey includes feedback from 202 respondents globally, with 91% indicating they have adopted or plan to adopt an identity solution.

Despite Google's policy shift, 75% of respondents believe this will not affect their move away from cookies, signaling a readiness to evolve beyond traditional cookie-based tracking. The report also highlights ongoing efforts to enhance addressability across various digital platforms, with a particular focus on improving identity support in channels like CTV, mobile, audio, and gaming. 

Announcing the finalized Accountability Platform. 

The IAB Tech Lab has introduced the finalised specification for the Accountability Platform, designed to enhance transparency and trust within the digital advertising ecosystem. This platform provides a framework to ensure that user preference signals, such as the GPP string and the TCF string, are correctly and completely communicated across the digital supply chain.

It includes roles for ecosystem participants and a common operator to manage data gathering, with a structured process that encompasses logging, data collection, and analysis to uphold user privacy and prevent manipulation. The Accountability Platform aims to standardise how ad tech handles user data, emphasising accuracy and thoroughness in communicating user preferences, thereby fostering greater integrity throughout digital advertising transactions. 

▸ Week 44

• - Publishers' dilemma with ad curation
• - European publishers discuss site traffic challenges
• - DPG Media's journey to a Google-free ad platform
• - IAB Europe's New Retail Media Certification Program
• - GPP guidelines open for public comment
• - Google ordered to pay antitrust damages to Equativ
  
  
  

A look at the publisher quandary over ad curation. 

Publishers are experiencing mixed feelings about the practice of curation in advertising, which involves selectively packaging ad inventory to potentially boost revenue. While some see the financial benefits, others are wary of losing control over their ad dollars to intermediaries.

This ambivalence was evident at the Digiday Publishing Summit Europe in Barcelona, where discussions revealed deep-seated concerns alongside cautious optimism. Curation is seen by some as a way to ensure quality by avoiding being lumped with lower-quality sites in auctions, thus addressing brand safety issues and potentially increasing yield from underperforming inventory.

However, skeptics liken curation to the strategies of ad networks and resellers, which historically promised revenue maximisation but often at the expense of publishers' control. Stefan Havik of DPG Media explicitly stated that curation does not align with their goal of maintaining a simple and unique supply path, reflecting a broader reluctance among publishers to embrace this trend without clear benefits. 

Media Briefing: European publishers sound off on site traffic struggles.

At the Digiday Publishing Summit Europe in Barcelona, declining site traffic emerged as a major challenge for publishers, prompting extensive discussions on potential solutions. Publishers expressed concerns about their diminished visibility compared to the era of newsstand dominance and highlighted the unpredictable impact of algorithm updates from giants like Google and Meta.

In response, suggestions were made to diversify marketing efforts and explore innovative uses of social media and e-commerce to drive traffic back to publishers' own sites. Concerns were raised about maintaining brand integrity in an era where soft content often attracts more views, stressing the importance of owning a distinctive strategy that doesn't overly rely on external platforms.

The concept of measuring "page-hours" was discussed as a more comprehensive metric than mere page views, emphasising the value of time spent on pages. Finally, the intricacies of ad refresh rates were debated, with publishers balancing the need for increased ad views against the potential drop in viewability and the risks of faster refresh rates.

How DPG Media Built Its Own (Mostly) Google-Free Ad Platform. 

Belgian publishing house DPG Media has strategically distanced itself from the programmatic open market and Google's ad platform, seeking direct ad budgets and more control over its advertising operations. This shift began five years ago in response to Google Ad Manager's Unified Pricing Rules, which reduced transparency and control for publishers.

DPG has expanded its scale through acquisitions across Belgium, Denmark, and the Netherlands, and developed its own ad tech solutions, including an Ad Management platform and data collaboration tools, moving away from Google's services. Now, DPG sells less than 5% of its digital revenue through Google, focusing over half of its sales on direct transactions.

The company has introduced new ad formats, like shoppable ads and video placements, designed to improve performance and integrate seamlessly with its content, avoiding third-party ad tech for better loading times and advertiser returns. DPG's strategies, which include leveraging its ad tech to attract smaller direct response advertisers and collaborating with agency partners, demonstrate a viable model for publishers aiming to regain control and compete with Big Tech.

IAB Europe Launches New Retail Media Certification Programme in Beta Phase to Drive Transparency and Accountability in Retail Media Measurement.

IAB Europe has launched the Beta test of the Retail Media Certification Programme, a pioneering initiative aimed at enhancing transparency, fairness, and accountability in Retail Media measurement. This certification allows retailers to validate their compliance with industry standards, demonstrating their commitment to best practices in both on-site and off-site measurement.

The certification involves an independent audit, providing an opportunity for retailers to highlight their measurement integrity and leadership. According to IAB Europe’s CEO, Townsend Feehan, the programme is crucial for advancing a more accountable Retail Media ecosystem, setting rigorous standards, and promoting industry leadership.

Jason Wescott of GroupM Nexus and Casper Van-Wandelen of Unilever also emphasised the programme’s role in building trust, standardising measurement practices, and facilitating stronger industry collaborations. The programme, set to fully launch in 2025, will initially focus on retailers, with plans to expand to other Retail Media ecosystem participants in 2026. 

GPP Implementation Guidelines release for Public Comment.  

IAB Tech Lab has released the Global Privacy Platform (GPP) Implementation Guidelines for public comment until December 16, 2024. The GPP is designed to assist digital advertising ecosystem participants in adhering to diverse global consumer privacy regulations, promoting interoperability, and simplifying the communication of user preferences.

These guidelines offer a roadmap and enhanced resources for implementing the GPP, aiming to ease compliance with regulations like GDPR and U.S. state laws. This initiative aligns with IAB Tech Lab's mission to support the industry by streamlining compliance efforts and improving privacy management.

Google Ordered to Pay Antitrust Damages to Equativ.

The Paris Commercial Court has mandated Google to pay €26.5 million to French ad tech company Equativ for anti-competitive practices, a decision reflecting ongoing scrutiny by French regulators. Google disagrees with the judgment and is considering an appeal, marking a significant development for independent European ad tech firms affected by similar practices.

▸ Week 43

• - Spotify enhances ad tech to attract more ad dollars
• - PAAPI may match third-party cookies’ retargeting effectiveness
• - Curation in ad tech raises debate on value versus hype
• - Perplexity faces legal issues over copyright with publishers
• - IAB Europe backs Draghi Report for streamlined EU innovation
• - IAB Tech Lab launches CTV Ad Format Idol for new ad formats
  
  
  

Spotify tunes up its ad tech as it looks to attract even more ad dollars.

Spotify has launched its own SSP, Spotify Ad Exchange (SAX), to improve ad revenue and attract small and medium-sized businesses through programmatic advertising. By partnering with The Trade Desk and integrating Universal ID 2.0, SAX aims to support a cookie-less ad ecosystem, starting with video ads in North America and later expanding to audio ads.

This development mirrors trends among streaming platforms, with Spotify hoping to increase ad revenue and provide more granular ad placement options for advertisers. With its new SSP, Spotify seeks to reduce reliance on premium subscriptions and boost its bottom line, a key focus for its upcoming Q3 earnings call. 

PAAPI Could Be As Effective For Retargeting As Third-Parties Cookies, Study Finds

A study by Boston University researchers found that Google’s PAAPI may offer a viable alternative to third-party cookies for retargeting ads in Chrome. The UK’s CMA worked with Google on this experiment to test PAAPI’s effectiveness, revealing that while PAAPI resulted in 47.4% fewer ad clicks and 50.2% fewer conversions, it approached near-parity with cookies when adjusted for ad spend and impression counts.

However, low adoption rates among industry players, particularly on the supply side, hinder PAAPI's full effectiveness. Researchers also found that ID bridging, which uses first-party data to replace third-party cookies, may not be a sustainable solution as cookie data decays over time.

Additionally, PAAPI suffers from limitations, including latency issues and a 30-day interest group expiry, which restricts its re-engagement capabilities. Overall, the researchers remain neutral but suggest that privacy-focused targeting, like PAAPI, has potential if adoption rates increase. 

The evolution of the great ‘curation’ tussle in ad tech.

In ad tech, “curation” refers to organising high-quality ad inventory for targeted advertising, a prominent 2024 trend along with “addressability” and “antitrust.” Curation has gained traction due to programmatic advertising complexities, often positioned as a response to DSPs’ supply path optimisation (SPO).

SSPs now offer demand path optimisation to compete directly, exemplified by tools like Magnite’s ClearLine and PubMatic’s Activate, which allow buyers direct campaign access without DSPs. Curation efforts address quality control gaps left by DSPs, with some experts arguing curated platforms provide reliability, though others critique it as “rebranded inventory.”

The rising use of AI, such as Index Exchange’s collaboration with Chalice for dynamic PMPs, reflects this sector’s maturity and efforts toward sell-side value creation. However, publishers worry about losing control over inventory curation and profitability, further complicated by declining search traffic and shifting user behaviours due to AI-driven content discovery tools like ChatGPT. 

Perplexity faces new legal pressure even as it attempts to win over publishers and advertisers.

AI search company Perplexity faces legal challenges from News Corp over alleged copyright and trademark violations related to scraping content from The Wall Street Journal and The New York Post. Filed on Oct. 21, the lawsuit claims Perplexity misuses News Corp content without permission, disregarding an earlier letter proposing a licensing deal.

The lawsuit also criticises Perplexity for plagiarising and falsely attributing information, diverting revenue from News Corp. Concurrently, Perplexity is developing partnerships, including ad revenue-sharing with publishers like Time and Der Spiegel, and preparing to introduce ads on its platform.

CEO Aravind Srinivas expressed surprise over the lawsuit, stating Perplexity had hoped for discussions. Despite these legal disputes, experts suggest advertisers may still engage with Perplexity if it provides significant value, given current market dynamics. 

IAB Europe Public Statement on the Draghi Report.

IAB Europe supports Mario Draghi's report on “The Future of European Competitiveness,” which emphasises innovation, digital transformation, and regulatory reform as key to Europe's global competitiveness. The report highlights the innovation gap behind Europe’s slowing productivity growth and urges a shift in approach to keep pace with global rivals.

Digital advertising, seen as crucial for Europe’s digital transformation, could significantly boost competitiveness, especially as Retail Media in Europe grew by 22% in 2023. IAB Europe agrees with the need for streamlined, convergent regulation, noting that fragmented rules, especially in data protection, stifle innovation and increase compliance burdens.

The organisation advocates for stable and pragmatic legislation, particularly around AI, to foster innovation and reduce regulatory complexity. Overall, IAB Europe endorses the report's vision for a competitive and digitally empowered Europe, supporting reforms that benefit both businesses and consumers. 

CTV Ad Format Idol initiative launched by IAB Tech Lab.

IAB Tech Lab has launched "Ad Format Idol," an initiative to standardise CTV ad formats for efficient, scalable programmatic transactions. With various new ad formats emerging, like picture-in-picture and shoppable ads, the initiative aims to define common standards for CTV, allowing advertisers to "build once, serve everywhere."

This standardisation is crucial as CTV grows, helping streamline ad delivery across platforms and prevent inefficiencies. Stakeholders are invited to submit ad formats for evaluation, with the chosen formats guiding updates to Tech Lab’s CTV specifications.

▸ Week 42

• - Publishers question the buzz around curation
• - Tips on optimizing floor pricing
• - Subscription and pricing shifts in Digiday's 2024 index
• - Video investment grows as UK marketing budgets freeze
• - Addressability challenges discussed at Prebid Summit
• - IAB Tech Lab releases AI primer for advertising
• - ADMaP launched for privacy-focused attribution
  
  

Publishers Are Skeptical of Adtech's Latest Buzzword, Curation.

Curation in programmatic advertising has become a popular concept, but many publishers remain skeptical about its value. While curation tech, offered by platforms like Index Exchange and Audigent, aims to package premium publishers and data for buyers, some publishers see it as another middleman that undermines revenue.

These tech solutions can cannibalise direct sales by offering lower rates and giving the illusion of quality, without significantly improving publisher earnings. Though curation firms argue they generate incremental revenue, publishers report that these deals often result in lower eCPMs.

Additionally, there are concerns that curators make inventory less appealing and harder to manage, while shifting buyers away from the open web. Ultimately, while curation promises new demand, many publishers feel it weakens their position in the programmatic landscape. 

What Publishers Need To Know About Floor Pricing. 

Setting pricing floors in programmatic auctions is essential for publishers to maximise ad revenue, as demonstrated by insights from a Prebid Summit panel. Basic floor-pricing should consider factors like session time and different ad units, though some DSPs and SSPs might ignore publisher floors.

Floors aren't meant to set exact bid prices but to protect inventory value, with pragmatic floors helping publishers avoid the "race to the bottom." Publishers should monitor win rates to adjust their strategies and work with monetisation partners for dynamic pricing.

Collaborating with a flooring partner helps manage complexity, especially when integrating display and video formats. Lastly, Google Ad Manager’s lack of integration with Prebid complicates pricing strategies, though potential changes from antitrust rulings might improve the situation for publishers. 

Digiday+ Research Professional Subscription Index 2024: Publishers tweak subscription, pricing strategies while shifting subscriber benefits.

In 2024, publishers faced significant challenges, including layoffs and shifts in third-party cookies, prompting Digiday's second annual Subscription Index to assess subscription strategies. This year's index focuses on professional publications, which all maintain some form of paywall, with half offering no free content.

Professional publications target industry professionals with valuable insights, using strict gating strategies to position their content as premium. Although some increased their prices, professional publications still have higher average subscription prices compared to news publications.

Forbes, for example, introduced flexible pricing options like a two-year plan to reduce costs for subscribers. Meanwhile, several professional publishers increased discounts for first-time subscribers while maintaining premium benefits.

Member-exclusive events have become less common, replaced by public, ticketed events, although member-exclusive research products remain vital. Indexes and rankings are key draws for subscribers, offering exclusive insights into industries and attracting professionals seeking a competitive edge. 

Video Investment Grows as UK Marketing Budgets Are “Put on Ice”.

UK marketing budgets were largely frozen in Q3 2024, with marketers awaiting the Government's autumn budget, according to the latest IPA Bellwether Report. Despite an overall net balance of 0% for budget increases, video advertising saw growth, with big-ticket campaigns up by 11.7%.

Categories like OOH and audio suffered the biggest declines, but main media budgets rose by 4.3%, with public relations and events also seeing gains. The report highlights uncertainty ahead of the budget, but marketers are pausing rather than cutting spend.

Sentiment turned negative, with slight pessimism about company-specific financial prospects and greater concern for the wider industry. However, forecasts for UK GDP growth and ad spend remain positive for 2024 and 2025, suggesting a temporary dip rather than a long-term downturn. 

Overheard at Prebid Summit: Addressability problem ‘really needs to be considered carefully’

At the Prebid Summit in New York City, independent ad tech players discussed the constant changes in the industry, focusing on privacy policies from Big Tech. A key concern was the potential decline of IP addresses as a viable targeting tool, following the path of third-party cookies.

Andrew Casale, CEO of Index Exchange, warned that while solutions to address signal loss are emerging, many are reliant on IP addresses, which may soon be deprecated. Optimistically, automated log-in tools, like those from Google Chrome and The Trade Desk, are gaining traction, with usage increasing beyond 5%.

The ongoing Google ad tech antitrust trial also loomed large, with uncertainty around whether a full divestiture of its ad tech business will occur. Meanwhile, debates on the evolving roles of DSPs and SSPs highlighted how SSPs might use curation to maintain their relevance. 

IAB Tech Lab releases AI in Advertising Primer. 

Artificial intelligence is rapidly evolving, with tools like ChatGPT reaching 100 million users in just two months. In response, Tech Lab’s Board of Directors created a subcommittee to develop an "AI in Advertising Primer" to clarify AI concepts and their impact on advertising.

The document outlines AI’s potential to revolutionise advertising by optimising processes, enabling creative innovation, and enhancing personalisation for publishers. Rather than predicting the future, the primer focuses on current AI tools, use cases, and foundational understanding to guide industry discussions moving forward.

Tech Lab releases ADMaP supporting privacy-centric attribution.

IAB Tech Lab announced the launch of ADMaP (Attribution Data Matching Protocol) for public comment until 14.11, a privacy-focused tool for securely sharing and measuring conversion data. Developed by privacy and data clean room experts, ADMaP uses Privacy Enhancing Technologies (PETs) like Private Set Intersection (PSI) and Trusted Execution Environments (TEEs) to protect user privacy.

The protocol allows publishers to share exposure data and advertisers to share conversion data without revealing user-specific information. IAB Tech Lab CEO Anthony Katsur highlighted ADMaP as a critical solution to signal loss, helping advertisers and publishers collaborate securely while maintaining audience trust and data integrity. 

▸ Week 41

• - News publishers collaborating to overcome brand safety blocking
• - Publishers addressing AI challenges at Digiday Publishing Summit
• - Connatix and JW Player merge into largest video tech platform
• - New certification provides GDPR clarity for ad tech companies
• - DOJ searching for remedies in Google’s search monopoly case
• - Microsoft plans to shut down retail media business
• - IAB Europe's Programmatic Day H2 2024 in Berlin approaching
  
  

News Publishers Are Banding Together To Beat Brand Safety Blocking. 

News publishers are tackling costly & overly cautious brand safety measures by creating the ProNews Collective, a PMP of trusted news sites designed to ensure safety without 3P brand safety technologies. The initiative, launched by Prohaska Consulting & Index Exchange, consolidates premium news publishers' inventory, including display, video, and audio ads, into a secure programmatic selling environment.

Matt Prohaska, CEO of Prohaska Consulting, emphasised that the goal is to redirect advertising dollars back to news publishers while allowing buyers to purchase ad space from multiple publishers simultaneously, ensuring both scale and safety. The ProNews Collective discourages the use of third-party brand safety tools, instead relying on internal safety measures set by publishers, such as excluding ads from sensitive content like war or disaster coverage.

Scheduled around the US presidential elections, the initiative aims to leverage high-traffic periods for optimal impact and assures advertisers they can choose specific publishers or contexts for their campaigns without having to commit to all. ProNews aims to provide a more equitable revenue share for publishers by reducing intermediary costs and countering the industry’s reliance on problematic last-click attribution methods that favor certain platforms over news publishers.

Media Briefing: Publishers confront the AI era during the Digiday Publishing Summit.

During the Digiday Publishing Summit, publishers expressed unease about the nature of their relationships with generative AI companies like OpenAI and Google, which are seen as the new major digital platforms. Some publishers, like Hearst, have secured content licensing deals with these AI firms, suggesting a potential for more equitable partnerships compared to previous platform dynamics.

However, smaller publishers are struggling to engage with AI companies for similar agreements, often finding themselves overlooked and without a straightforward way to initiate discussions. Overall, the situation remains complex, with some publishers optimistic about new traffic opportunities, while others seek more tangible benefits such as revenue sharing, which companies like OpenAI are currently not offering.

Connatix and JW Player Merge To Create the Industry’s Largest Video Technology and Monetization Platform.

JW Player and Connatix have merged to form JWP Connatix, establishing a broad platform for video technology and monetization aimed at broadcasters, publishers, and advertisers. The merger responds to shifts in digital video consumption towards Connected TV and streaming, requiring updated video strategies.

JWP Connatix will offer extensive streaming services, hybrid monetisation options, and AI-driven insights to enhance viewer engagement. The new entity, led by CEO Dave Otten and Chairman David Kashak, is headquartered in New York City with global offices. 

New Certification Initiative Launches to Give Ad Tech Clarity on GDPR Compliance.

The Coalition for Privacy Compliance in Advertising (CPCA) has collaborated with the UK's Information Commissioner's Office (ICO) to introduce a new privacy certification for ad tech companies, ensuring compliance with the UK's GDPR. This certification is designed to clarify GDPR compliance for ad tech businesses and bolster confidence amongst publishers and advertisers regarding their ad tech partners.

The CPCA plans to finalise and publicise the certification criteria by early 2025, with ambitions to extend similar frameworks across Europe to accommodate varying GDPR interpretations. Mattia Fosci, founder of the CPCA, emphasises that this certification aims to level the playing field amongst digital market participants and resolve ongoing confusion regarding GDPR compliance within the ad tech industry.

DOJ Searches for Remedies in Google Monopoly Case. 

As the DOJ continues its antitrust trial against Google, it is considering significant actions to curb the tech giant's control over search markets, potentially including breaking up parts of its business such as the Android operating system, Chrome browser, or Google Ads. This follows a ruling by Judge Amit Mehta in August, which determined that Google had maintained its search monopoly through illegal practices.

The DOJ is exploring remedies like forcing Google to divest certain businesses, open up its underlying search data to competitors, and end the revenue sharing agreements that keep Google as the default search engine on many devices. Additional measures may require Google to offer more transparency and control to advertisers and prevent Google from using its dominance to unfairly influence the burgeoning field of AI.

Google plans to appeal any decision but argues that such drastic actions would harm consumers, raise costs, and stifle innovation. The final proposals for remedies are due to be presented soon, with a trial for these remedies expected next spring and a decision by August 2025. 

Microsoft looks set to shutter its retail media business. 

Five years after acquiring the retail advertising platform PromoteIQ, Microsoft is reportedly phasing it out, pushing clients towards Criteo. Microsoft initially purchased PromoteIQ to boost its retail media strategy by linking publishers with retail advertisers, benefiting from PromoteIQ's client base which included major names like Kroger and Home Depot.

Despite early successes, Microsoft has faced challenges with PromoteIQ's profitability and has started redirecting its retail media efforts away from PromoteIQ towards partnerships like the one with Criteo. This shift includes potential layoffs at PromoteIQ and plans to offload its technology to an external partner, with Microsoft not publicly announcing the closure but moving towards integrating Criteo's technology into its advertising services.

The change has caused some disquiet among retailers, with concerns about the forced migration to Criteo's platform. This strategic shift reflects broader dynamics in the retail media sector, which is still evolving and requires companies to adapt quickly and develop new capabilities to stay competitive. 

IAB Europe's Virtual Programmatic Day H2 2024 Hybrid in Berlin. 

The Virtual Programmatic Day, the largest virtual event in the programmatic industry, will be held in a hybrid format in Berlin on 6th November 2024, hosted by Verve. It brings together global leaders to discuss trends in programmatic trading through panel discussions and interactive Q&As. Register here.

▸ Week 40

• - The US media market grew 8%, driven by programmatic deals and retail media.
• - IAB Europe releases a repository of European IAB initiatives.
• - Disney aims to automate 75% of ad sales by 2027.
• - Google ad tech antitrust trial: What's next after testimony concludes?
• - Publishers fear a Google ad breakup could backfire.
  

The US Media Market grew 8% in the year-to-August, Boosted by Programmatic Premium Deals and Retail Media.

The premium programmatic market, including PMPs and PG deals, saw a +47% year-on-year growth in the first eight months of 2024, driven by demand for brand-safe environments. Retail Media also grew +33% YoY, contributing to the overall +8% growth in the US advertising market, with digital media spending up +16%.

Programmatic Premium Deals now account for 48% of programmatic investments, a significant rise from 25% in 2020, and are projected to reach 50% by year-end. While open exchange ad spend grew by +10%, premium deals far outpaced it, with Travel Services and Technology sectors leading premium investments.

Despite CPM price reductions for Streaming Audio and Standard Display, Programmatic Premium Deals continued to command higher CPMs over open exchanges, reflecting the industry's growing preference for quality, transparent ad environments.

IAB Europe Publishes Repository of European IAB’s Initiatives.

IAB Europe has released a document titled ‘Repository of European IAB’s Initiatives for Responsible Digital Advertising’, showcasing various initiatives from its National Federation members across Europe. The repository includes contributions from countries such as Germany, France, Greece, Italy, and others, focusing on promoting a sustainable digital advertising ecosystem.

These initiatives align with key EU digital policy priorities, such as respecting user privacy, enhancing online safety, and building a sustainable digital industry. IAB Europe remains committed to evolving these initiatives and engaging with policymakers as the digital landscape continues to change.

How Disney is nearing its goal to automate 75% of ad sales by 2027. 

The Walt Disney Company plans to automate 75% of its advertising business by 2027, with over half of its streaming ad revenue already transacted programmatically in 2023. A key factor in this growth has been making its entire streaming inventory, including interactive ad formats, available for programmatic purchase.

Disney’s infrastructure allows ads to be published once and distributed across all platforms, enhancing efficiency. Expanding campaigns from Hulu to Disney+ increases reach by 40%, with minimal audience duplication.

Programmatic guaranteed deals have shifted to 70% biddable, requiring active management from sales teams. Some of Disney's largest advertisers are now spending up to $100 million annually in biddable environments.

What happens in the Google ad tech antitrust trial now that testimony is done?

The U.S. vs Google ad-tech antitrust trial, has concluded most of its testimony with closing arguments expected in November. The trial, presided over by Judge Leonie Brinkema, was shorter than anticipated but included high-profile testimonies and significant evidence.

DOJ argues that Google holds monopolies in three ad-tech markets and has used its dominance to harm competitors and customers, including publishers and advertisers. Google defends itself by claiming its actions were in the interest of privacy and ad quality, while critics argue its practices hinder competition.

Legal experts suggest the court may reject Google’s argument that ad tech is a single market, favoring a narrower interpretation that could align with past antitrust cases. The outcome of the trial may influence future decisions regarding the structure of the open internet and could intersect with parallel trials, such as the ongoing Google search case.
 

Breaking point or breakup? Why publishers fear a Google ad breakup could backfire.

With the Google ad-tech antitrust trial nearing its end, speculation is rife about the potential outcomes, including a breakup or hefty fines. Publishers, who have long struggled under Google's dominance, are concerned that a breakup of the ad empire could harm their access to programmatic ad revenue especially if Google retains control of key platforms like DV360 and Google Ads.

Many are conflicted, as they desire change but also fear losing the revenue Google provides. Past experiences, such as News Corp’s failed experiment with switching ad servers, underline the risks for publishers if Google's sell-side business is split.

Industry leaders like The Trade Desk's CEO, Jeff Green, have noted the complexity of dismantling Google's integrated ad systems, suggesting DV360 could easily pivot to other Google properties. Ultimately, many believe a breakup is unlikely, and instead expect Google to face fines or behavioral remedies, although the trial's outcome remains uncertain. 

▸ Week 39

• - Highlights from Digiday Publishing Summit, September 2024
• - Tech Lab launches privacy-focused PAIR protocol
• - UK’s CMA still concerned over Google’s updated privacy plans
• - The new CTV Advertising Guide 2025 is available
• - Washington Post and Vox adjust subscription strategies in 2024
• - ID Provenance introduced in OpenRTB for better transparency
  

Media Briefing: Overheard at the Digiday Publishing Summit, September 2024 edition 

At the Digiday Digiday Publishing Summit, publishers voiced frustration over Google's influence on the digital advertising landscape, particularly concerning its antitrust trial and the decision to shift third-party cookie deprecation responsibility to Chrome users. Many expressed concerns about the lack of control they have over Google's decisions, which significantly impact their businesses.

Discussions revealed dissatisfaction with Google's ad products, citing issues like self-dealing, poor monetisation options, and lack of transparency, leaving publishers feeling like they have little agency. The opt-in cookie plan from Google was compared to Apple's App Tracking Transparency (ATT), with skepticism about its effectiveness.

Publishers also expressed doubts about the effectiveness of Google's Publisher Provided Signals (PPS), noting that despite initial enthusiasm, they have seen little positive impact and feel misled. Overall, there was a pervasive sense of mistrust and dissatisfaction with Google's handling of these issues.

Tech Lab releases PAIR protocol for the industry.  

IAB Tech Lab has launched the PAIR (Publisher Advertiser Identity Reconciliation) protocol developed by the Rearc Addressability and Privacy Enhancing Technologies working group, to enable privacy-centric audience targeting without third-party cookies. Initially donated by Google, the protocol has been developed into an open standard that supports interoperability between data clean rooms and DSPs.

IAB Tech Lab will update the PAIR prebid module and publish open-source reference implementations to encourage adoption. The protocol is now open for public comment until October 25, 2024. 

CMA Says “Competition Concerns Remain” Over Google’s Privacy Plans.

The UK’s Competition and Markets Authority (CMA) has expressed ongoing concerns about Google’s revised approach to the Privacy Sandbox. After Google decided to make the Privacy Sandbox optional instead of removing third-party cookies entirely, the CMA invited stakeholders to share their views and found that competition concerns remain.

The regulator is in continued discussions with Google and is also collaborating with the Information Commissioner’s Office (ICO) to address privacy and user choice issues. The CMA stated that Google’s current commitments would need updates to support competition in digital advertising and plans to decide on accepting any changes by Q4 2024 after further public consultation.

The CMA’s concerns have persisted since it began investigating the Privacy Sandbox in 2021, and despite Google’s changes, both the CMA and ICO remain cautious about the impact on consumer privacy and competition. The ICO has also expressed disappointment with Google’s shift away from fully deprecating third-party cookies. 

The CTV Advertising Guide 2025 is Now Available to Download. 

VideoWeek’s CTV Advertising Guide for Europe highlights significant developments in the European CTV market. It also provides insights into the market’s challenges and opportunities, covering topics such as programmatic approaches, CTV pricing, and strategies for advertisers to succeed in this space—link to guide.

Digiday+ Research News Subscription Index 2024: Washington Post, Vox shift their strategies.

The publishing industry faced significant challenges in 2024, including layoffs at major outlets like The L.A. Times, Business Insider, and The Washington Post, alongside disruptions caused by Google’s changes to its cookie deprecation plan. Publishers who had invested in alternative IDs and first-party data now need to reassess their ad strategies.

As advertisers become more "news avoidant" due to sensitive global events, publishers are increasingly relying on subscriptions for revenue. Gannett, The New York Times, and The Wall Street Journal reported significant growth in digital-only subscriptions, highlighting this shift.

Digiday’s Subscription Index analyses publishers’ strategies across various dimensions, including gating models, member benefits, and pricing structures. In 2024, some publications like The Washington Post and Vox shifted to hybrid gating strategies, reflecting a need to diversify revenue streams amidst economic uncertainty.

Regional publishers like the Chicago Tribune adjusted their free article thresholds and subscription pricing to balance ad revenue and subscription growth. Meanwhile, national publications such as Business Insider and The New York Times aggressively increased subscription prices, focusing on premium content strategies and first-time subscriber discounts.

ID Provenance Added to OpenRTB.

In 2024, the AdTech industry introduced the term "ID Bridging," which involves using alternative methods to identify users when direct identifiers like cookies or device IDs aren't available. This practice raised concerns as identifiers were being passed in critical OpenRTB attributes (buyeruid and ifa), leading to industry-wide discussions about the proper use of these fields.

In response, IAB Tech Lab launched a workstream to update the OpenRTB 2.6 specification, aiming to clarify the expected use of these attributes and introduce new signals for transparency. The updates, detailed in the 2.6 GitHub Repository, include revised attribute descriptions, new attributes for extended identifiers, and extensive implementation guidance. 

▸ Week 38

- DMEXCO Briefing: Google’s antitrust troubles spark schadenfreude
- U.S. v. Google: Ad tech antitrust trial by the numbers
- Google offered to sell AdX, but EU publishers weren’t satisfied
- Privacy Sandbox: Your feedback in action
- IAB Europe releases in-store retail media standards for comment
- Publishers' ad revenue rebounds, H2 looking even brighter

DMEXCO Briefing: Google’s antitrust troubles spark uneasy schadenfreude.

For nearly two decades, ad executives watched Google dominate the ad industry, resigning themselves to its untouchable power. However, recent revelations and the DOJ’s antitrust case against Google have sparked a shift in sentiment, leading to a sense of schadenfreude among those who once felt powerless.

At DMEXCO, there is now a palpable vibe of cautious optimism as executives savor Google’s legal troubles. Despite this, there is still fear that Google might escape unscathed, as its complex roles in the ad ecosystem blur the lines of anticompetitive behavior.

Some industry insiders remain skeptical, comparing the situation to battling a villain who always finds a way to return. Nevertheless, this rare moment of collective satisfaction has brought the ad tech community closer together.

U.S. v. Google: Ad tech antitrust trial by numbers — so far.

The U.S. Department of Justice is pursuing a trial against Google’s $307 billion-per-year ad empire in a Virginia courtroom, aiming for a potential breakup of its ad-tech dominance. The trial highlights the complex workings of Google’s ad tech, with detailed discussions on components like its ad server (DFP) and ad exchange (AdX).

Key revelations include Microsoft’s $2 billion bid for DoubleClick, Google's "Three Pillars" strategy, and the significant market influence Google wields, such as keeping 37% of every dollar flowing through its platform. The DOJ’s case also examines Google’s dealings with Facebook, including the Jedi Blue arrangement, and its impact on publishers like NewsCorp and Gannett.

Witnesses revealed stark statistics, such as Google’s 53% win rate in auctions compared to rivals' 1% or less. The DOJ plans to rest its case by September 20, with Google’s defense set to begin the following week.

Google Offered to Sell Off AdX, but EU Publishers Weren’t Satisfied, Reports Claim:

Google reportedly offered to sell off its ad exchange, AdX, to avoid an EU antitrust investigation into its ad tech business, but the move was deemed insufficient by European publishers to restore market balance. The offer came after the European Commission’s initial objections, which suggested forced divestment might be necessary to restore competition.

Publishers were not satisfied with just the sale of AdX and wanted more of Google's ad tech stack spun off. Recent reports indicate that the EU may not force a divestiture, finding it too complex, and may instead require Google to end specific anticompetitive practices.

The U.S. Department of Justice, however, continues to push for the divestment of AdX and Google's publisher ad server DFP. Google's willingness to sell AdX suggests it sees it as the most expendable part of its ad tech stack.

Your feedback in action: Upcoming Privacy Sandbox developments. 

The Privacy Sandbox reflects years of input from developers, businesses, users, advocates, and regulators, with recent updates focusing on enhancing user choice. H1 2024 saw significant progress as ad tech companies tested core Privacy Sandbox technologies, such as Topics, Protected Audience, and Attribution Reporting APIs, leading to valuable feedback and proposals for enhancements.

Google proposed updates to the Protected Audience API, including support for deal-based use cases, clickiness signals for better bidding optimisation, and extending the interest group lifespan from 30 to 90 days to support advertisers with longer customer journeys. These updates aim to balance user privacy with industry needs, incorporating feedback from stakeholders to refine the Privacy Sandbox.

Industry leaders have expressed optimism about these changes, anticipating improved performance metrics and more effective ad strategies. Google remains committed to collaborating with the ecosystem to continuously improve Privacy Sandbox and advance online privacy.
 

IAB Europe and IAB Release First-Ever In-Store Retail Media Definitions and Measurement Standards for Public Comment. 

IAB Europe and IAB have released the first industry definitions and measurement standards for in-store Retail Media, now open for public comment until November 1, 2024. These standards aim to unify definitions, measurement, and guidelines for ad formats and store zones, addressing the expanding in-store Retail Media opportunities.

The initiative builds on previous Retail Media guidelines and was developed through a collaborative process involving key industry stakeholders, including 14 Retail Media Networks. The standards cover essential areas such as terminology, ad formats, store zone classifications, and measurement guidelines for in-store media.

IAB leaders emphasise the importance of these standards in driving consistency, transparency, and new revenue streams for retailers, brands, and technology providers. As in-store Retail Media continues to grow, these standards are seen as a critical step toward wider adoption and cross-channel integration.

Publishers’ ad revenue rebounded in the first half, but H2 is looking even brighter.

The latest Media Ad Sales Trend Flash Report from Boostr shows positive ad sales trends for the first half of 2024, suggesting a rebound from the challenges of 2023. Direct-sold advertising campaign deal sizes and RFP volumes both increased in Q1 and Q2, with Q2 seeing the highest average deal size since Q1 2023.

However, some publishers reported that Q2 was still somewhat soft, though they expect a stronger performance in the second half of the year, especially with pre-booked revenue showing year-over-year growth. RFP volumes rose significantly in several advertiser categories, including utilities, tech, and professional services, although luxury is anticipated to decline in 2025.

Net revenue retention improved slightly, with more revenue coming from existing clients, indicating that advertisers are becoming more confident and are starting to unlock budgets held back earlier in the year. Overall, the digital media industry appears to be on a positive trajectory heading into the latter half of 2024.

▸ Week 37

DOJ accuses Google of knowingly taking power from publishers as government enters emails and audio as evidence.

The U.S. Justice Department presented internal Google documents in court revealing the company's strategies to counteract header bidding, a rival monetisation technology that threatened its control over online ad spend.

The documents suggest Google executives were aware of industry concerns regarding the company's evolving publisher platform, DoubleClick, but continued to push forward with monetisation tactics. 

Witnesses, including former Google employees, discussed changes like the move to a first price auction and the introduction of Unified Pricing Rules (UPR), which publishers felt reduced their control. Evidence also showed Google's efforts to protect its dominance, such as disabling rivals' tools to set higher floor prices.

During testimony, industry leaders like PubMatic CEO Rajeev Goel and former Rubicon Project CTO Tom Kershaw highlighted the challenges of competing with Google. The case focuses on whether Google’s practices have stifled competition and whether its commitments to open competition have been upheld.

Google Ads Will Now Use A Trusted Execution Environment By Default.

The digital ad ecosystem is evolving towards greater privacy, requiring advertisers to better manage their first-party data. Google Ads has introduced a new feature called confidential matching, using a trusted execution environment (TEE) to securely handle first-party data for ad targeting and measurement.

Confidential matching, built on Google Cloud, ensures that only the advertiser has access to their data, reducing the risk of data leakage. This feature is now the default for all uses of first-party data in Google Ads and is free for users.

Google is collaborating with the IAB Tech Lab to create best practices for TEE use and has made its TEE architecture open-source. The aim is to build privacy into the system without extra cost, making it accessible to advertisers of all sizes. 

Time Spent with Commercial Media Has Risen Since the Pandemic, Finds IPA.

UK adults spend 64% of their media consumption time on commercial media, with a rise in time spent since 2020, suggesting subscription services aren't significantly eroding this share. Younger audiences (16-34) spend 67% of their media time on commercial platforms, although this is a decline from 76% in 2015.

The report highlights the evolving landscape, with ad-funded streaming services gaining reach and commercial TV seeing a decrease in share but maintaining significant presence. The study recommends diversifying media plans to effectively target different age groups and their preferred platforms.

Unraveling The Mystery Of PubMatic’s $5 Million Loss From A “First-Price Auction Switch

PubMatic lost $5 million in 2024 revenue after Google DV360 updated its bidding logic to stop favoring second-price auction signals, which PubMatic was still using. Although most of the industry shifted to first-price auctions years ago, PubMatic had been tagging its auctions as second-price, allowing it to win more bids from DV360.

With DV360's update in May, PubMatic’s win rate dropped, redistributing the $5 million to other exchanges using first-price auctions. This highlights that some SSPs were still leveraging second-price auctions despite the industry-wide move to first-price models.

Programmatic Ads, Affiliates, and Subscriptions: Where are Publishers Finding Growth?

Publishers face challenges as major tech platforms capture most ad revenue growth and deprioritise news content, while AI further diverts traffic from their sites. However, some publishers are finding growth by diversifying their revenue streams. 

For example, Reach and Dotdash Meredith see growth in data-driven ads, partnerships, and licensing deals; The New York Times focuses on subscriptions and digital ads; and BuzzFeed leverages AI to boost audience engagement and programmatic revenues.

Other publishers like Future, Gannett, and Ziff Davis also report growth in digital advertising, affiliate revenues, and subscriptions despite overall market challenges.

Madison and Wall forecast $397 billion in 2024 ad spend.

The U.S. advertising industry grew by 9.6% in Q2 2024, driven by a healthy economy and easy comparisons to last year, reaching a projected $397 billion in total spend for 2024.

Growth is expected to slow in the latter half of the year due to high growth rates in 2023. Digital ad platforms, especially retail media networks, led growth with a 16.4% increase, accounting for 67% of ad revenue. Political and issue advertising are significant contributors, projected to add $16 billion.

Traditional media is expected to face limited growth due to challenges like consumer identification and brand safety concerns. Marketers are increasingly focused on performance over content, impacting their media investment decisions.

Google’s ad tech impact on publishers front and center during opening day of DOJ’s antitrust trial.

The U.S. Justice Department's antitrust trial against Google could lead to the breakup of its ad tech tools, accusing the company of monopolistic practices in the digital ad market.

The DOJ argues Google acquired its dominance by buying competitors, controlling the market and diminishing publishers' independence, which resulted in significant financial losses for publishers.

Google's defense claims the DOJ's case relies on outdated market definitions and ignores existing competition and industry changes, such as AI.

Witnesses like Gannett's Tim Wolfe highlighted Google's dominance and the industry's reliance on header bidding to counteract it, showing the challenges publishers face breaking free from Google's ecosystem.

The trial follows similar allegations by the UK's Competition Market Authority against Google's practices. Both trials suggest potential significant changes in the digital ad industry in the coming weeks.

▸ Week 36

CMA objects to Google’s ad tech practices in bid to help UK advertisers and publishers.

The UK's Competition and Markets Authority (CMA) has provisionally found that Google is engaging in anti-competitive practices in the open-display ad tech sector, potentially harming thousands of UK publishers and advertisers. 

The CMA's investigation reveals that Google uses its dominance to favor its ad tech services, disadvantaging competitors and reducing fair competition. Google allegedly manipulates bids and provides its AdX exchange with preferential access, limiting the chances for rival exchanges to compete effectively. This conduct has been ongoing since at least 2015 and also affects Google’s publisher ad server, DFP, by preventing rival servers from competing. 

The CMA is considering measures to stop Google's anti-competitive behaviour and ensure it doesn't recur. Separate investigations by the US Department of Justice and the European Commission are ongoing.
 

Tech Lab Unveils New Privacy Taxonomy.

The IAB Tech Lab released the Privacy Taxonomy for public comment, providing a new framework to help businesses manage personal data and comply with privacy regulations. This initiative aims to unify data privacy practices in the digital advertising industry and invites feedback over the next 30 days.

Browser-Level Cookie Controls Better Reflect User Preferences, finds Government-Backed Study.

The EU’s GDPR was created to give Europeans more control over their data but has led to more intrusive cookie banners. The UK retained GDPR principles post-Brexit and is considering alternatives to these banners, like browser-level cookie controls.

A government-backed study by The Behavioural Insights Team found that browser-level controls generally result in lower cookie opt-in rates than site-level controls, though acceptance remains relatively high. The study tested various browser-level consent mechanisms, finding that detailed cookie information led to opt-in rates more aligned with user preferences.

Surprisingly, 53% of users were comfortable opting in to all cookies, but knowledge about cookies' purposes was found to be low. The findings suggest that browser-level controls could balance privacy and user experience without drastically reducing cookie opt-ins. However, privacy advocates argue that poor understanding of cookies undermines meaningful consent.

Media Briefing: How publishers spent summer 2024

Summer 2024 saw significant developments for publishers in digital media.

Google reversed its decision to phase out third-party cookies, allowing users to choose their cookie settings, though publishers remain cautious about the impact. AI content licensing deals surged, with major publishers like Condé Nast signing agreements, while Perplexity AI introduced a revenue-share model focused on ad revenue, not content access.

New social platforms like LinkedIn and Reddit pursued partnerships with publishers, providing new revenue opportunities.Women's sports coverage grew in prominence, driven by increased advertiser interest and lucrative deals. Podcast networks anticipated a rise in political ad spending for the upcoming U.S. elections, buoyed by new ad tech and targeting tools. 

The industry is adapting to a changing landscape, balancing opportunities and uncertainties across multiple fronts.

AppsFlyer And Unity Integrate With The Android Privacy Sandbox To Avoid Another ATT-Style Disaster.

With uncertainty around the deprecation of Google’s mobile advertising ID (GAID), AppsFlyer integrated with the Android Privacy Sandbox’s Attribution Reporting API. This makes it the first mobile measurement platform (MMP) to offer such a product, developed with Unity.

The integration aims to help advertisers prepare for a potential shift similar to Apple’s App Tracking Transparency (ATT). AppsFlyer’s new dashboard consolidates attribution data, providing a clearer view of ad conversions.

More ad networks need to adopt the API for better data accuracy. AppsFlyer is also building tools to optimise campaigns using historical data, following its iOS post-ATT success.

Madison and Wall forecast $397 billion in 2024 ad spend.

The U.S. advertising industry grew by 9.6% in Q2 2024, driven by a healthy economy and easy comparisons to last year, reaching a projected $397 billion in total spend for 2024.

Growth is expected to slow in the latter half of the year due to high growth rates in 2023. Digital ad platforms, especially retail media networks, led growth with a 16.4% increase, accounting for 67% of ad revenue. Political and issue advertising are significant contributors, projected to add $16 billion.

Traditional media is expected to face limited growth due to challenges like consumer identification and brand safety concerns. Marketers are increasingly focused on performance over content, impacting their media investment decisions.

Scoop: IAB And MRC To Collaborate On Attention Measurement Accreditation.

The Media Rating Council (MRC) and IAB's Attention Measurement Task Force are collaborating to accredit attention measurement vendors, , with guidelines expected by Q1 2025. This effort aims to standardise transparency without enforcing specific methodologies like eye-tracking or proxy measurements.

Vendors must disclose how they measure attention, ensure user consent, and comply with privacy standards. The goal is to avoid past mistakes with viewability as an ad-buying currency and promote nuanced understanding of attention metrics.

The MRC and IAB will focus on educating the industry on effectively using attention data without over-relying on it. This collaboration encourages broader involvement from publishers and ad tech vendors to refine how attention metrics impact ad performance and quality

Prebid Digital Out-of-Home Webinar.

A Prebid will host a webinar on DOOH to provide an update on the strides they’ve made in advancing DOOH initiatives, their tackled challenges, the lessons learned, and the current position. Date: September 12th, 2024.

Register here.

▸ Week 35

• - Google Ads, Analytics, and Merchant Center Glitches
• - Explained-2024 Media Glossary, Part 2
• - DOJ Reveals Google's Thoughts on Header Bidding
• - Warner Bros. Discovery Launches First-Party Data Offering
• - Maryland's Strict New Data Privacy Law
• - Google Offered Millions to Sway Media Buys in Antitrust Caser
  
  

Google Ads, Analytics And Merchant Center Are Glitching Out Of Control. Here’s Why. 

Google's advertising, analytics, and retail merchant platforms are experiencing significant disruptions, including bugs, data breaches, and outages across various services. Google attributes these issues to system updates, such as the transition to GA4 and GMC Next, rather than backend or frontend changes.

Some customers blame Google's increasing reliance on AI-driven software and its shift away from human support, leading to account suspensions and other glitches. Additionally, Google's rearchitecting efforts to meet new privacy and competition standards have added complexity and risk, exacerbating these problems. 

Media Briefing: The 2024 media glossary, pt. 2

• - Authenticated audiences: where users self-identify, providing alternatives to third-party cookies for ad revenue.
  
• - LLM (Large Language Model) is critical for improving AI technologies, often using licensed or unlicensed publisher content.
• - Prompt engineering and Retrieval Augmented Generation (RAG) are essential for optimising AI interactions and data sharing.
• - Robots.txt is used by publishers to block unwanted AI scraping, while changes in "SERP rankings" have impacted traffic strategies for publishers.
  
  

Thanks To The DOJ, We Now Know What Google Really Thought About Header Bidding.

The Department of Justice is set to face Google in court on September 9, accusing it of maintaining an illegal monopoly in the digital advertising market by manipulating auction dynamics to disadvantage rival ad exchanges. Unsealed documents reveal Google's internal strategies to counteract the rise of header bidding and maintain its competitive edge.

Google later moved to a first-price auction system, eliminating some advantages but also introducing unified pricing rules (UPR) to further control ad pricing dynamics. Evidence suggests Google’s actions caused significant shifts in the advertising landscape, with other exchanges like Rubicon experiencing declines in spending.

Warner Bros. Discovery Launches New First-Party Data Offering.

WBD has launched WBD AIM (Audience Insights and Measurement), a new first-party data offering for targeting and measurement across its platforms like Max, CNN, discovery+, and Eurosport in major markets worldwide. AIM consolidates data from WBD's various consumer touchpoints, enhancing audience targeting by combining registration, behavior, intent, and purchase data, along with improved contextual targeting.

This initiative aims to unify data post-merger, overcoming the challenges of siloed data within large media companies. WBD plans to expand AIM's capabilities by integrating data from other channels, including gaming and consumer products, to optimise measurement and marketing efforts. 

Don’t Sleep On Maryland’s Strict New Data Privacy Law.

Since 2018, 19 U.S. states, including Maryland, have enacted comprehensive data privacy laws, each with its own nuances and complexities. Maryland's Online Data Privacy Act (MODPA), effective October 1, 2025, stands out for its strict rules, such as outright banning the sale of personal data and imposing tight restrictions on data collection and sharing unless "strictly necessary."

MODPA also has a unique, stringent data minimisation requirement, limiting data collection to what is "reasonably necessary" to fulfill a consumer's request, though the definition remains ambiguous. With the lowest applicability threshold among state privacy laws, MODPA will require businesses to be particularly vigilant in ensuring compliance. 

Google Sought to Pay Agencies Hundreds of Millions to Sway Media Buys.

Newly released documents from the Department of Justice's antitrust trial reveal Google's extensive incentive programs designed to encourage agencies to buy its media. These programs, dating back to at least 2016, offered agencies discounts, cash rebates, and perks like third-party research in exchange for committing to purchase certain types of Google ads.

Google planned to spend hundreds of millions on these incentives, including $100 million on discretionary funds, $300 million on Agency Capability Fund (ACF) payouts, and $45 million on KPI deals in 2018. These incentives have raised concerns about transparency and the potential for agencies to prioritise Google's interests over their clients, prompting questions about their role in the upcoming antitrust trial.

▸ Week 34

• - 2024 Media Glossary Overview
• - Warner Bros. and CNN Expand
• - Audience Targeting for CTV
• - Google Suggests Targeting Teens, Defying Its Own Policies
• - Gartner’s 2024 Digital Ad Hype Cycle Highlights Innovation
• - Google Faces Potential Breakup: Possible Outcomes

Media Briefing: The 2024 media glossary.

The digital media landscape has seen significant turmoil, introducing new trends like "AI rev-shares," where AI companies share ad revenue with publishers, sparking debates over fair compensation. This model challenges the traditional publisher-search engine dynamic.

Antitrust law has also been a focal point, with high-profile cases involving Google, Elon Musk's X, and the new sports streaming platform Venu. These developments underscore ongoing tensions and shifts in the media and advertising industries. 

Warner Bros. and CNN are extending audience targeting tools in bid for more CTV share.

CTV ad spend is growing, and Warner Bros. Discovery (WBD) is aiming to accelerate this by launching a first-party data platform called AIM across its global media portfolio. AIM allows advertisers to target specific audience segments based on data from over 120 points, including viewing and web behavior, enhancing the relevancy of ads in streaming environments.

This platform, already integral to CNN’s digital campaigns, offers premium, low-frequency ad experiences and is not available in open auctions, appealing to brands seeking high-quality placements. As traditional TV ad revenue declines, WBD sees streaming ad revenue as a critical component of its future growth, with CTV becoming a significant revenue line. 

Exclusive: Google Suggests Buyers Target Teens, Going Against Its Policies.

Google has been reportedly encouraging advertisers to target teenagers on YouTube through the "unknown" user category, which may include under-18s, despite Google's policies prohibiting such targeting. This practice was highlighted by the Financial Times and further corroborated by ad buyers who revealed that Google reps suggested targeting this group to reach teens.

The "unknown" category consists of users whose demographic data is not explicitly known to Google, but who may be inferred to be younger based on other data points. Although Google claims to prohibit personalised ads for those under 18, the reports suggest that sales reps have been advising advertisers on ways to bypass these restrictions, leading to concerns about the potential violation of both company policy and privacy laws.

Google has responded by stating that they will reinforce their policies with sales reps, but questions remain about their ability to manage compliance effectively. The situation raises broader issues about the ethics of targeting sensitive audiences, especially as legislative efforts to protect teenagers online gain momentum. 

What Gartner’s 2024 digital ad hype cycle shows about marketing innovation and adoption.

Gartner’s 2024 Digital Advertising Hype Cycle identifies key challenges and innovations for marketers, including AI advancements, consent-based targeting, and data transparency. The report highlights the growing importance of technologies like Customer Data Platforms (CDPs), which are gaining traction due to increased focus on centralised data and privacy, despite technical complexities.

Retail Media Networks (RMNs) are experiencing a reality check as they enter the "trough of disillusionment" due to fragmentation and pricing issues, while Data Clean Rooms are gaining attention for their role in privacy compliance and measurement. Generative AI continues to progress but faces ethical concerns and technical hurdles, with marketers urged to prioritise its use carefully.

Programmatic Segment-Based Advertising is emerging as a promising approach in cookieless environments, though it still faces challenges related to privacy and market adoption. Overall, the report underscores the need for marketers to navigate these technologies strategically amidst evolving regulatory and technical landscapes.

Google is facing a potential breakup; what are the likely outcomes?

Reports suggest the U.S. government is pushing for a breakup of Google after a federal judge ruled it monopolised the search engine market. This potential dismantling could drastically reshape the $300 billion online ad industry, though Google plans to challenge the ruling.

A survey of industry professionals revealed concerns about the impact on ad revenues and competition if Google is forced to divest its ad tech tools. The outcome of the antitrust case, whether through a trial or settlement, is expected to have a profound effect on the digital advertising landscape. 

▸ Week 33

• - Pubs Q2 earnings boosted by AI deals and improved ad market
• - IAB Europe launches beta tool for estimating digital ad campaign emissions
• - Tech Lab updates GPP US National Section with Multi-State Privacy Agreement
• - Disney, Paramount, Warner Bros. Discovery highlight TV-streaming divide
• - IAB Diligence Platform launched to streamline digital ad industry compliance
• - FTC warns ad tech companies about hashing practices

Media Briefing: Pubs Q2 earnings look rosy thanks to AI deals and an improved ad market. 

The recovery of publishers' businesses appears to be continuing in 2024, with several major media companies, including Dow Jones, The New York Times, and Gannett, reporting growth in digital advertising revenue. Digital subscriptions and AI-related content licensing agreements have also supported their results.

For example, Gannett achieved record numbers in digital subscriptions, and The New York Times surpassed the milestone of 10 million digital-only subscribers. While changes in Google's algorithm affected traffic, many publishers successfully grew their audiences, which also boosted programmatic advertising revenue. These positive trends are expected to continue in the second half of 2024. 

IAB Europe Launches Beta Test of New Tool for Estimating Digital Advertising Campaign Emissions

IAB Europe has launched the beta version of the OpenGHG tool, designed to estimate greenhouse gas emissions from digital advertising campaigns. This tool supports the industry's efforts to promote sustainability and standardise emission assessment practices. The goal of OpenGHG is to create a unified environmental modeling framework that covers the entire value chain. 

Tech Lab announces updates to the GPP US National Section with the Multi-State Privacy Agreement. 

IAB Tech Lab has announced significant updates to the US National Section of the Global Privacy Platform, now known as the Multi-State Privacy Agreement (MSPA) US National Section.

These updates expand the coverage and provide more detailed guidance for proper regulatory compliance within digital advertising. This section is intended only for MSPA signatories or Certified Partners who use the "National Approach." 

Disney, Paramount and Warner Bros. Discovery quantify the TV-streaming divide.

The second quarter earnings reports for 2024 may mark a turning point for traditional TV and streaming services businesses. Disney and Paramount achieved streaming profits for the first time, while the value of traditional TV significantly declined.

Disney made $47 million and Paramount $26 million in streaming profits, but at the same time, Paramount recorded a $6 billion write-down and Warner Bros. Discovery a $9.1 billion write-down in their traditional TV businesses. Although streaming is starting to generate profits, it is still far from offsetting the decline in traditional TV. The streaming profits are partly due to cost reductions and growth in subscriber and ad revenues.

IAB Diligence Platform is Now Available to Streamline Compliance for the Entire Digital Advertising Industry.

IAB has launched the IAB Diligence Platform, which helps digital advertising companies meet tightening data privacy requirements.

The platform offers a third-party privacy audit solution specifically designed for the advertising industry.  Several companies, including Adform and Hershey, have been involved in the platform's development and support its use.

Ad Tech Companies Should Heed The FTC’s Warning About Hashing. 

Hashing, which scrambles data into an unreadable string of text, doesn’t anonymize it, and the U.S. Federal Trade Commission (FTC) considers hashed identifiers to be personal information. In a blog post published in July, the FTC reminded companies that hashed data can still be used to identify users, leading to potential harm.

Hashing doesn’t fully protect data because the same algorithm applied to the same data will generate the same hashed string, enabling reidentification. The FTC has been warning companies about this issue for years, but many have not heeded the advice. Now, the FTC may be preparing for stricter enforcement actions on this matter.

▸ Week 32

• - Media Briefing: AI Ad Tools Show Promise but Must Prove Themselves
• - Google’s Cookie Policy Shift and Its Impact on Retail Media Growth
• - Magnite Sees Steady Growth with Programmatic CTV
• - Adalytics Report Questions Claims of 100% Brand-Safe Media
• - Judge Rules Google Holds Illegal Search Monopoly
• - NewsPassID Develops PMPs to Bypass Brand Safety Blockers
  

Media Briefing: News publishers’ AI ad tools show positive lift, but still have to prove themselves. 

News publishers such as News UK, The New York Times, and The Wall Street Journal have introduced AI-based advertising tools to enhance the effectiveness of their advertising campaigns and better target their audiences. These tools assist in identifying brand-safe content and targeted audience segments. Notably, News UK's Nucleus Narr(ai)te tool analyses the context of articles and advances brand safety measurement.

Publishers have reported positive results, such as increases in click-through rates and brand lift, but the direct impact on revenues from these tools is still under evaluation. These AI tools are not directly sold to advertisers, but they aim to improve campaign performance and attract repeat customers. 

What Google’s third-party cookie left turn means for retail media’s growth spurt.

Google decided to retain third-party cookies in Chrome, which turns out to be less dramatic than initially planned for their removal. Despite this, the growth of retail media networks (RMNs) does not seem to be slowing down. The use of first-party data remains a focal point for marketers amidst uncertainties about whether users might opt out of cookie tracking.

Retail media networks continue to provide a valuable platform for advertisers, enabling them to get closer to the point of purchase and leverage first-party data, which is of higher quality compared to other available information. This primary data source remains strong regardless of the future of Google's cookies, and many clients expect to continue their investments in retail media.

Magnite Continues Steady Growth Powered By Programmatic CTV. 

Magnite is focusing strongly on CTV advertising, with the company's revenue growing by 12% in the CTV segment during the second quarter. A significant factor was the partnership with Netflix, which gave additional momentum to Magnite's business. Although CTV advertising CPMs saw a slight decline, increased volume and the growing adoption of programmatic advertising helped offset the decrease.

Magnite is also expanding its programmatic offerings with the ClearLine solution, which is attracting new customers. The continued use of third-party cookies provides short-term stability for display advertising, but Magnite is prepared to support the Privacy Sandbox alternative that may be implemented in the future.

Adalytics Report Challenges Verifiers And Pubs That Claim 100% Brand-Safe Media. 

The latest Adalytics report highlights significant oversight by verification providers like Integral Ad Science and DoubleVerify, allowing unsafe user-generated content on platforms such as Fandom, Tumblr, and Metacritic to pass as brand-safe. The report criticises these entities for failing to filter out explicit content effectively, even when blatantly obvious in URLs.

It also questions the transparency of retail media and DSPs like Amazon and Walmart, suggesting that their ad verification lacks the openness seen in the open web. This reveals a broader issue within ad tech: the unreliability of claims of 100% safety in advertising placements, urging advertisers to approach such claims with skepticism, especially when underlying data is inaccessible.

Google has an illegal monopoly on search, judge rules. Here’s what’s next.

A federal judge ruled that Google has violated U.S. antitrust laws with its search engine monopoly, potentially reshaping how Americans access information online and challenging decades of dominance. Google has entered exclusive agreements, such as with Apple, leading to anticompetitive behavior.

The decision could alter how Google offers its search engine and lead to potential penalties, such as implementing a "choice screen" to inform users about other available search engines. This judgment could also signal upcoming actions against other major tech firms like Apple and Amazon.

NewsPassID Is Building PMPs That Bypass Brand Safety Blockers.

News publishers, through the Local Media Consortium's (LMC) NewsPassID network, have developed a new content taxonomy for programmatic advertising, allowing advertisers to bypass traditional brand safety blockers. This initiative targets specific, brand-safe content categories, enabling publishers to regain revenue lost to automated keyword blocklists.

The taxonomy is tailored for local news and offers more precise targeting than the standard IAB taxonomy, aiming to attract advertisers hesitant to buy news inventory programmatically. By minimising the need for brand safety intermediaries, this approach allows publishers to retain a larger share of ad revenue.

▸ Week 31

• - The First Programmatic Olympics Draws New Advertisers
• - Outbrain Acquires Teads for $1 Billion
• - Amazon Prime Day Sales Up, Commerce Revenue Unpredictable
• - Magnite Introduces AI-Driven Automation for Publisher Revenue
• - IAB Europe Endorses EC’s Latest GDPR Report
• - Updates on State-Specific Privacy with GPP Expansion
• - Ad Tech Leaders React to Google’s Cookie Policy Update
  

The First Programmatic Olympics Is Attracting New Advertisers.

Advertisers are competing for visibility at the Paris Olympics using programmatic advertising for the first time. NBCUniversal is selling ad inventory programmatically on the Peacock platform, except for the highly coveted opening and closing ceremonies, which are sold through private marketplaces.

Programmatic advertising is attracting new advertisers who previously lacked the resources to advertise during the Olympics. During a trial run in June, nearly all advertisers were new to the Olympics, and now 70% of brand sponsors are new. Programmatic advertising lowers the barrier to live sports advertising, but planning and managing campaigns is challenging. Advertisers can better control costs and pacing using programmatic methods.

Outbrain Acquires Teads From Altice For $1 Billion.  

Outbrain is acquiring Teads for approximately $1 billion. The acquisition will help Outbrain expand into TV and video advertising, reaching over 2 billion consumers per month and attracting higher advertising revenue. The combination allows Outbrain to strengthen its position in the premium content and CTV advertising markets, expanding business opportunities.

Publishers say Amazon Prime Day sales were up but commerce revenue remains ‘hard to predict.

Despite initial forecasts, several publishers reported higher than expected revenue from Amazon Prime Day. Commerce revenue from affiliate coverage increased up to 99% year over year, and conversion rates improved by 6-30% compared to 2023. This success is attributed to changes in content and distribution strategies in response to Google's algorithm updates.

For example, Apartment Therapy Media saw a 99% increase in Prime Day-specific revenue. Forbes Vetted experienced an 88% increase, and the Skimm's sales were up 25%, with a 30% increase in conversions. Gallery Media Group's revenue remained flat, but conversion rates for specific categories like clothing and fitness rose.

Publishers adapted by focusing on product recommendations and reviews rather than listicle-style content, which performed better under Google's new algorithm. They also leveraged newsletter distribution to drive conversions. Despite the positive Prime Day results, publishers remain cautious about overall commerce revenue growth for 2024 due to the unpredictable nature of the business and the impact of search engine changes.

Magnite Launches Full AI-Driven Automation Within Demand Manager To Earn Incremental Revenue For Publishers.

Magnite introduced an automated wrapper management feature in Demand Manager to help publishers increase revenue and efficiency. Prebid-based technology uses machine learning to optimize configurations for each ad request, improving performance.

Demand Manager enables publishers to manage and monetize their Prebid inventory effectively, with a 30% year-over-year increase in spend.

IAB Europe Welcomes European Commission’s Second Report on GDPR.

IAB Europe welcomes the European Commission's second report on GDPR, recognizing it as a pivotal milestone for data protection in the digital advertising sector. The association supports the Commission’s emphasis on a risk-based and technology-neutral approach, which ensures robust data protection while allowing the free flow of personal data within the EU.

IAB Europe agrees with the need for consistent GDPR application across Member States, additional resources for Data Protection Authorities (DPAs), and practical EDPB guidelines. They stress the importance of balancing data protection with innovation and commit to ongoing dialogue with policymakers. 

Expanding GPP Coverage: State-Specific Privacy Updates.

IAB Tech Lab has added new states to the Global Privacy Platform (GPP) to address evolving privacy regulations. The new states are Delaware, Iowa, Nebraska, New Hampshire, New Jersey, and Tennessee. 

The public comment period runs until September 5, 2024, and stakeholders are encouraged to provide feedback. These updates help publishers stay ahead of regulatory requirements and improve the coverage of GPP support. 

Ad tech bosses balance frustration and focus after Google’s latest shift on third-party cookies.

Google’s sudden U-turn on its plan to scrap third-party cookies, has left ad tech leaders frustrated. Despite this, they remain focused, as the future of third-party cookies in Chrome is still uncertain. Google now plans to let users decide if they want to be tracked by cookies. This likely means most third-party cookies will disappear, similar to what happened with Apple's tracking changes.

As a result, ad tech companies continue to invest in alternative solutions like the Sandbox, authenticated IDs, and contextual data. The uncertainty around Google’s final implementation keeps the industry in a wait-and-see mode, but the consensus is that alternatives to third-party cookies will still be necessary.

▸ Week 30

• - Media Briefing: Reevaluating Privacy Sandbox Plans
• - Pluto TV Accused of Exploiting Programmatic Auctions
• - Ad World Relieved Yet Skeptical of Google’s Decision on Cookies
• - Privacy Sandbox API Testing Results
• - Google Announces It Won't Deprecate Third-Party Cookies in Chrome

Media Briefing: Publishers reassess Privacy Sandbox plans following Google’s cookie deprecation reversal.

Google's reversal on eliminating third-party cookies from Chrome has caused some publishers to reconsider their stance on the Privacy Sandbox, seeing it now as a viable option for testing cookieless solutions. Amit Grover from Quizlet noted that this change allows his team to pivot towards experimenting with the Privacy Sandbox, after having implemented other non-cookie technologies.

This shift in strategy comes amid ongoing uncertainties about the timeline and user acceptance of Google’s new proposal, complicating planning for publishers who now face a less predictable environment regarding cookie deprecation. Scott Messer highlighted the previous timeline's role in helping publishers gradually adapt to changes, but the new approach leaves them without clear expectations on user adoption rates of privacy settings.

Publishers are now preparing for a potential sharp increase in non-cookie inventory, prompting them to expedite their readiness for cookieless operations. This involves not only focusing on the Privacy Sandbox but also exploring other alternatives like ID bridging and deterministic identifiers to ensure comprehensive readiness.

Despite these efforts, skepticism remains about the effectiveness of the Privacy Sandbox, particularly due to its low adoption on the buy side and unimpressive financial returns as reported by companies like Criteo. Meanwhile, upcoming changes in how Chrome handles IP addresses could further complicate the use of other cookieless identifiers, adding another layer of uncertainty for publishers.

6 Ad Companies Accuse Pluto TV of Exploiting Programmatic Auctions. 

Several ad firms are reducing their engagement with Pluto TV due to concerns over its practice of bid duplication in programmatic auctions, which can mislead platforms about its ad scale and inflate prices by increasing apparent demand. This tactic leads ad-buying platforms, which prioritise larger audiences, to pay more for ads on Pluto TV, resulting in a disproportionate amount of client budgets being allocated to the service.

For example, some ad buyers found that Pluto TV was consuming up to 50% of their clients' budgets despite representing only 5-10% of the audience reached. Moreover, Pluto TV sends an exceptionally high volume of bid requests compared to other streamers, which raises concerns about the efficiency and fairness of spending on its platform.

Efforts by ad buyers to negotiate transparency and better terms with Pluto TV have met with mixed results, leading some to develop tools or strategies to minimise their exposure to the service. As the ecosystem of programmatic advertising in streaming TV evolves, the transparency and fairness of these practices remain significant concerns for advertisers. 

Ad world is relieved but skeptical about Google’s decision to keep cookies in Chrome.

Google has announced that it will not be phasing out third-party cookies in Chrome as previously planned, surprising many ad executives who were skeptical due to past delays and vague timelines. This pivot appears to follow a model similar to Apple's approach, offering Chrome users a more controlled choice regarding third-party tracking, which could lead to a significant reduction in third-party cookie use if users opt-in.

Despite initial reactions, some industry professionals see potential in Google’s decision to prioritise user consent over outright cookie elimination, aligning with broader privacy trends. Critics, however, question the compliance of this broad consent framework with current regulations, which demand more specific user consent.

The ad industry is now watching closely how Google will implement these changes and whether they will align with regulatory expectations. Regardless, the work done by publishers and advertisers in anticipation of a cookie-less future remains relevant as they adapt to evolving privacy standards and technology shifts in digital advertising.

Results from Privacy Sandbox APIs testing.

In Q1 2024, Google conducted an experiment to assess the effectiveness of the Privacy Sandbox APIs and other first-party signals compared to third-party cookies. The experiment has 3 arms: a control group with 3P cookies, a second control without 3P cookies or Privacy Sandbox APIs, and a treatment group without 3P cookies but with Privacy Sandbox APIs and other signals enabled.

The results suggested that utilising Privacy Sandbox APIs alongside first-party data can help publishers lessen the financial impact of losing third-party cookies. Specifically, the removal of third-party cookies without the use of Privacy Sandbox APIs led to a significant drop in programmatic revenue for publishers, while enabling Privacy Sandbox APIs curbed this revenue decline.

For Google Ad Manager, the implementation of Privacy Sandbox APIs resulted in a 13% revenue uplift compared to the scenario without these APIs. Looking forward, Google plan to continue refining the integration of Privacy Sandbox APIs, in collaboration with the UK’s Competition and Markets Authority, and to invest in developing privacy-preserving solutions to support sustainable ad monetisation.

After years of uncertainty, Google says it won’t be ‘deprecating third-party cookies’ in Chrome.

Google has decided not to remove third-party cookies from Chrome, instead opting to introduce a new feature allowing users more control over their privacy settings. This move, described in a recent blog post, comes after discussions with various regulatory bodies and plans to engage the ad industry further.

The announcement signals a shift from previous plans to eliminate cookies, focusing now on enhancing the Privacy Sandbox APIs and adding new features like IP Protection in Incognito mode to improve privacy and utility. Despite the shift, Google is continuing to test and invest in the Privacy Sandbox, aimed at preserving ad-supported internet content while improving user privacy.

Early tests showed promising results in ad performance recovery, even without third-party cookies. However, the reception among publishers has been mixed, with many expressing concerns about the effectiveness and economic viability of participating in Sandbox tests, leading to a decline in adoption rates.

▸ Week 29

• - Ad tech vendors pulling back from Google’s Privacy Sandbox
• - Publishers: Private programmatic revenue up, open mixed
• - FreeWheel: Expanding the Addressable Universe
• - 2024 Digital Video Ad Spend & Strategy Report
• - Australian publishers warn of 'catastrophic' Meta news ban
  

Some ad tech vendors are pulling back from Google’s Privacy Sandbox amid uncertainty. 

Google's alternatives to third-party cookies face delays, regulatory challenges, and waning support, causing uncertainty in the ad tech industry. As a result, many ad tech vendors are reducing investments and focusing on basic support for Google's Privacy Sandbox, awaiting clearer guidance and stability.

The lack of a clear timeline from Google and unresolved issues around compensation for potential losses are key concerns. Despite this, the investment has been valuable for identifying performance issues and regulatory impacts, though it remains costly.

Industry leaders emphasise the need for diverse solutions and transparency, with Google’s dominance raising concerns about investment costs. Until more definitive answers are provided, ad execs are cautiously reevaluating their strategies, recognising that the Sandbox may never fully replace third-party cookies' effectiveness.

Media Briefing: Publishers say private programmatic revenue is up – but open is a mixed bag. 

In H1 2024, publishers generally saw better performance in direct-sold advertising compared to 2023, while the programmatic market experienced mixed results. Among the publishers interviewed by Digiday, half reported a slowdown in the open market, attributing it to clients preferring private marketplaces and programmatic direct deals, along with broader market pressures and traffic declines due to algorithm changes.

Conversely, the other half reported growth in the open programmatic market, credited to efforts in traffic improvement and adjustments for cookie deprecation. One executive noted that their open marketplace and private programmatic businesses both performed well, with significant year-over-year increases in CPM rates.

Another executive highlighted the resilience of their programmatic business despite challenges, with a particular strength in private deals. Operative's data showed a rise in open market CPMs but a decline in private marketplace CPMs, though publishers indicated growth in their private programmatic businesses, emphasising the shift from open to private deals.

FreeWheel: Expanding the Addressable Universe. 

FreeWheel’s Advisory Services team outlines how publishers can use first-party data to address signal loss and enhance audience strategy in their newest report.

2024 Digital Video Ad Spend & Strategy Report.

The 2024 IAB Video Ad Spend Report provides a comprehensive overview of the current state and future projections for digital video advertising. Key insights include a projected 16% growth in digital video ad spend in 2024, with business outcomes being the primary KPI for determining success across social video, online video, and CTV channels.

The report emphasises the importance of diversifying video investments across various formats and channels, including short-form, long-form, and immersive content, to maximise reach and engagement. It also highlights the increasing adoption of programmatic buying, especially for CTV, which accounts for 75% of transactions due to its efficiency and scalability benefits.

The report also identifies significant measurement challenges, particularly with co-viewing, placement transparency, and viewability, which buyers must proactively address using advanced tools and technologies. Additionally, there is a growing interest in alternative currencies to enhance multi-screen attribution and real-time reporting, although adoption faces hurdles related to cost, complexity, and cross-industry alignment. 

Australian publishers say ‘catastrophic’ if Meta follows through on news ban.

Several Australian media publishers have expressed concerns over Meta's threat to remove news from Facebook and Instagram, highlighting the potentially catastrophic impact on their businesses. Broadsheet Media stated it could lose up to 52% of its revenue, making survival nearly impossible, while The Daily Aus reported losing significant commercial deals and halting expansion plans due to Meta's actions.

The Australian Parliament’s Joint Select Committee is investigating Meta's decision and the role of journalism in countering misinformation on social platforms. Despite Meta's withdrawal of the Facebook News product in Australia, some publishers argue that designating Meta under the News Media Bargaining Code could lead to job losses and reduced audience engagement.

Others, like Schwartz Media and Free TV, support designating Meta to ensure fair remuneration for news content. There are also suggestions for alternative solutions, such as taxing digital platforms' revenue to support public interest journalism. 

▸ Week 28

• - Teads exploring sale options as ad tech M&A heats up
• - Publishers reflect on ad revenue midway through 2024
• - Privacy’s impact on publishers: Assessing the head of consent role
• - Marketers ramp up TV ad spend, with Amazon holding growth potential
• - Ad industry acquisitions are heating up
• - Microsoft-owned Xandr accused of EU privacy breaches

Teads is exploring sale options as M&A in ad tech heats up.

Teads is rumored to be on the verge of a sale, with Altice initially targeting a price above $1 billion. Private equity suitors are more interested in a deal at five to six times Teads' annual EBITDA, but exact financial details are unclear.

Despite the uncertainty about a leading buyer, private equity groups in ad tech are potential candidates for acquisition and consolidation. The ad tech M&A market is experiencing a revival, with increased deal activity and strategic buyers driving most transactions in 2024.

Media Briefing: Publishers reflect on ad revenue midway through 2024. 

Publishers are optimistic about the ad market in 2024, with Gallery Media Group and Apartment Therapy Media reporting 15% year-over-year revenue growth. Apartment Therapy Media forecasts a 17% increase in full-year revenue, partly due to a 70% renewal rate and stronger RFP volume.

Gallery Media Group credits its revenue boost to investments in events and branded content, and a significant percentage of new ad revenue from new clients. Despite a strong first half, publishers remain cautious due to market unpredictability and economic factors like interest rates and inflation.

Tech, telco, pharma, and fashion ad categories have performed well, but media and entertainment have been affected by the writers' strikes. Publishers are also focusing on AI and sports content, with insights from Cannes Lions influencing their strategies for the rest of the year. 

Privacy’s impact on publishers: Assessing the head of consent role.

News U.K. has closed applications for its Head of Consent role, reflecting a broader trend towards prioritising data privacy. The head of consent will need to create a forward-thinking strategy that ensures compliance while also supporting the publisher's commercial goals.

This role involves collaboration across various departments to develop compliance processes and manage user consent effectively. The increasing importance of such roles highlights publishers' need to navigate regulatory risks and the commercial costs of data transparency.

Similar positions are expected to emerge as advertisers begin to prioritise publishers' data practices in their spending decisions. Ultimately, the success of these roles depends on CEOs' commitment to making privacy a central part of their strategy, recognising its potential beyond mere compliance.

Digiday+ Research: Marketers ramp up their TV ad spend, with Amazon holding growth potential. 

As the 2024 Olympic Games approach, TV and streaming advertising is ramping up, with over half of marketers already investing in these channels. Digiday+ Research found that 58% of brand, retailer, and agency professionals were spending on TV ads by Q2 2024, a significant increase from previous years.

Amazon’s entry into streaming advertising has seen nearly half of marketers purchasing video ads on its platforms, with 66% planning to do so in the next six months. The primary focus for these marketers is on impression- and branding-focused streaming TV ads, with 97% investing in these types of ads.

Shoppable ads and QR code ads are also gaining traction, though to a lesser extent. Impressions remain the top metric for measuring the success of streaming TV ads, followed by conversions and watch time. 

Ad industry acquisitions are beginning to heat up.

The ad-tech industry has seen a surge in M&A activity recently, defying last year's slowdown due to macroeconomic uncertainty. Significant deals in June included Seedtag acquiring Beachfront Media, Madhive acquiring Frequence, Equativ merging with Sharethrough, and Verve purchasing Jun Group for $185 million.

This revival in activity suggests the industry is recovering, with projections that industry revenue will exceed $1 trillion next year. Many of the deals involved SSPs, indicating a maturation and consolidation in this segment of the market as companies seek to strengthen their positions and adapt to industry changes.

Microsoft-owned adtech Xandr accused of EU privacy breaches. 

Microsoft-owned adtech firm Xandr faces a GDPR complaint in Italy, backed by privacy advocacy group noyb. The complaint alleges Xandr's failure to comply with data access and correction rights, potentially leading to fines up to 4% of Microsoft's global revenue.

Xandr is accused of transparency failures and using inaccurate data for microtargeted advertising, violating several GDPR articles. Despite receiving numerous data access and deletion requests, Xandr denied all, citing the pseudonymous nature of their data.

The complaint challenges this defense, arguing Xandr should identify individuals linked to their advertising profiles. If the complaint succeeds, it could prompt further regulatory actions across EU member states and highlight the adtech industry's need for better data accuracy and compliance.

▸ Week 27

• - Media Briefing: How the digital publishing industry has fared so far in 2024.
• - IAB Europe’s Environmental Sustainability Glossary.
• - Instream Or Out? Why It’s So Hard To Accurately Label Video Inventory.
• - Are cookie concerns, MFAs holding back publishers’ digital revenue?
• - After months of testing, Google faces growing pressure to revamp the Privacy Sandbox.
• - Commission sends preliminary findings to Meta over its “Pay or Consent” model for breach of the Digital Markets Act.
  

Media Briefing: How the digital publishing industry has fared so far in 2024

The first six months of 2024 were tumultuous for the media industry. Google initially pursued third-party cookie deprecation but revised its timeline, causing delays in publishers' cookieless targeting tests.

Forbes faced backlash for allegedly operating a made-for-arbitrage subdomain, deepening distrust in the programmatic market. Several publishers, including News Corp and Vox Media, struck lucrative AI licensing deals, though some like The New York Times pursued legal action against AI companies.

BuzzFeed sold Complex Networks to NTWRK to alleviate its debts, reflecting broader financial struggles. Lastly, significant newsroom shake-ups occurred, notably at The Washington Post and The Daily Beast, leading to staff concerns and leadership changes.

IAB Europe’s Environmental Sustainability Glossary

IAB Europe and its Sustainability Standards Committee have developed a glossary of key terms and recommendations to standardise language and ensure consistency and relevance in discussions about sustainability in digital advertising.

Instream Or Out? Why It’s So Hard To Accurately Label Video Inventory

The media industry faces a new controversy over how video inventory is categorised. The Trade Desk recently stopped supporting Yahoo's video inventory, claiming it was mislabeled as instream rather than outstream.

This has sparked broader industry concerns about the mislabeling of video inventory in open auctions. Instream video, which plays with sound and is expected by users, is scarce and often bundled with less desirable outstream inventory.

Mislabeling persists because outstream video fetches lower CPMs compared to instream video, incentivising publishers to mislabel. The Trade Desk's actions underscore the importance of accurate labeling to maintain premium media quality, and some industry experts predict more disputes over these standards in the future.

Digiday+ Research: Are cookie concerns, MFAs holding back publishers’ digital revenue?

The digital landscape for publishers is complex, with ongoing issues like Google's third-party cookie phase-out and the rise of made-for-advertising sites. Many publishers still rely on traditional revenue channels alongside digital ones.

A Digiday+ Research survey found a significant increase in publishers generating most of their revenue from digital channels, rising to 40% this year from 27% in the past two years. Conversely, the percentage relying primarily on traditional channels has decreased to 9% from around 18-19% in previous years.

Despite this shift, a steady proportion of publishers continue to depend equally on both digital and traditional channels, with a slight drop in those relying solely on digital. The survey also highlighted publishers' belief that third-party cookies will persist longer than anticipated and their success in distancing themselves from the controversy surrounding made-for-advertising sites.

After months of testing, Google faces growing pressure to revamp the Privacy Sandbox

Six months after Google began phasing out third-party cookies in Chrome, the alternatives have proven financially detrimental for publishers and advantageous for Google's advertising dominance. Despite the challenges, ad executives continue investing in tech for Google's Privacy Sandbox, aided by Google's increased collaboration and outreach efforts.

Google hired an ad tech veteran to help with partnerships and delayed the cookie phase-out, providing more industry engagement opportunities. Criteo's extensive testing revealed that the Sandbox could significantly harm publisher revenues and increase Google's market share.

Concerns persist about the Sandbox's performance, with issues like site slowdowns and mislabeling of ad inventory. However, the industry remains hopeful for improvements, suggesting enhancements in performance features, audience qualification, and governance optimisations to make the Sandbox viable.

Commission sends preliminary findings to Meta over its “Pay or Consent” model for breach of the Digital Markets Act

The European Commission has informed Meta that its “pay or consent” advertising model likely breaches the Digital Markets Act (DMA). The Commission's preliminary findings suggest that Meta's model forces users to consent to data combination or pay for an ad-free service, without offering an equivalent less personalised option.

This model does not comply with Article 5(2) of the DMA, which requires gatekeepers to provide a consent-free, equivalent alternative. Meta introduced this model in response to EU regulatory changes in November 2023.

The Commission is coordinating with data protection authorities and will conclude its investigation within 12 months. If Meta is found non-compliant, it could face fines up to 20% of its global turnover for repeated infringements and additional remedies for systematic non-compliance.

▸ Week 26

• - Ad tech companies vie to fill Oracle’s void after shutdown.
• - Privacy Sandbox Testing Results Show Shortfalls to Meet CMA Requirements.
• - IAB Tech Lab releases final Privacy Sandbox Fit Analysis.
• - IAB Europe Unveils Key Commitments and Policy Principles for 2024-2029 EU Legislative Term to Drive Inclusive, Safe, and Innovative Future for Digital Europe. 

Ad tech companies vie to fill Oracle’s void after shutdown

Oracle's decision to shut down its advertising business has caused a stir in the ad tech industry, prompting competitors to try to fill the void quickly. The urgency intensified last week when it became evident that Oracle's ad divisions wouldn’t continue operating. This has led to a rapid response from ad tech companies as advertisers, publishers, and vendors scramble to find suitable alternatives to maintain their operations.

Companies like Peer39 and GumGum are actively engaging with former Oracle clients, offering continuity solutions and enticing them with improved contextual advertising features. This industry shift is occurring under tight time constraints, as Oracle plans to close all its ad products by the end of September, forcing market players to make swift decisions.

Privacy Sandbox Testing Results Show Shortfalls to Meet CMA Requirements

Criteo believes the Privacy Sandbox could be a sustainable alternative to third-party cookies if Google meets specific requests, maintains a disciplined rollout schedule, and provides a clear roadmap. Their recommendations, which are non-breaking and easily implementable, cover a wide range of advertising use cases and aim to improve performance, audience qualification, critical functionalities, and governance.

Criteo's testing indicates that without changes, publisher revenues could drop by an average of 60% if third-party cookies are deprecated today. The current version also gives Google a competitive advantage and increases ad load times, impacting user experience and publisher revenue.

Despite these issues, Criteo has invested significant resources in testing and adapting their infrastructure to the Privacy Sandbox, showing its potential value. They urge Google and the UK's Competition and Markets Authority to consider their recommendations to ensure a functional market and healthier publisher ecosystem.

IAB Tech Lab releases final Privacy Sandbox Fit Analysis

In August 2023, IAB Tech Lab formed a Privacy Sandbox Task Force comprising senior leaders with extensive experience in digital media from 65 companies. Their goal was to identify foundational digital advertising use cases and evaluate the feasibility of Chrome Privacy Sandbox APIs. 

The Task Force meticulously reviewed 44 critical advertising use cases, resulting in a 106-page report released for public comment in February 2024. Feedback from the industry led to several updates and changes to the final draft, addressing technical inaccuracies and existing API considerations.

The final Privacy Sandbox Use Case Analysis was released, highlighting significant concerns with the current state of the Privacy Sandbox, particularly its impact on smaller media companies and brands. The Task Force continues to work with Google to improve the Privacy Sandbox’s advertising utility and support publisher monetization, with prioritized feature requests to be published in Q3 2024.

IAB Europe Unveils Key Commitments and Policy Principles for 2024-2029 EU Legislative Term to Drive Inclusive, Safe, and Innovative Future for Digital Europe

IAB Europe has published a paper titled "Towards an Inclusive, Safe, and Innovative Digital Europe," outlining key commitments and policy principles for the 2024-2029 EU legislative term. The paper aims to shape a sustainable and responsible digital advertising ecosystem, emphasising dialogue with policymakers and alignment with EU values such as inclusivity, sustainability, and privacy.

Townsend Feehan, CEO of IAB Europe, highlighted the opportunity to build an ad-supported European internet that empowers and protects citizens. The paper commits to responsible advertising practices, combating IP infringement, countering disinformation, and promoting transparency and consumer trust.

IAB Europe calls for coordinated and predictable regulation, innovation in privacy protection, and collaborative industry initiatives. The release underscores digital advertising's role in Europe's digital economy, benefiting consumers, businesses, and society.

▸ Week 25

• - Ad Net Zero announces global framework to measure media’s carbon emissions.
• - Amazon unveils Ads Relevance, claiming it is no longer reliant on single IDs.
• - Magnite and Spectrum Reach Team Up To Enhance Access to Programmatic.
• - DoubleVerify Wants to Teach the Industry About MFA.
• - Prebid.js 9 is released.
• - IPG’s Magna: UK adspend growth ‘stronger than expected’.
• - Privacy Sandbox Buyer Report: The Who’s Who of DSP Spending.
• - Adtech vendors join forces for European Programmatic TV Initiative.
  

Ad Net Zero announces global framework to measure media’s carbon emissions

Ad Net Zero (ANZ) has launched its Global Media Sustainability Framework. It sets voluntary standards to measure greenhouse gas emissions across digital, television, print, audio, outdoor, and cinema channels. Developed over 12 months with input from major advertisers, advertising holding companies, media owners, tech firms, and trade bodies, the framework includes initial formulas and tools for efficient emissions data collection.

Supervised by a Climate Science Expert Group, it aims to standardize carbon accounting practices and drive actions to reduce carbon impact in media plans, aligned with ANZ's goals. Initial formulae for TV, digital, and OOH are released first, followed by audio, print, and cinema, alongside enterprise-level data request and disclosure forms. The next phase involves setting up data transfer systems and validating GHG data, with early results expected by Q2 2025.

Amazon unveils Ads Relevance, claiming it is no longer reliant on single IDs

Amazon Ads is highlighting the AI capabilities of its demand-side platform at the Cannes Lions Festival of Creativity. On the second day, Amazon unveiled Ad Relevance, which has been in closed beta for two years. This new feature helps advertisers target audiences without third-party cookies, using browsing, shopping, and viewing behaviour signals across Amazon properties.

Brian Tomasette, director of Amazon DSP products, emphasized that their system now relies on machine learning models rather than advertising identifiers. This approach aims to offer media buyers more precise ad opportunities and follows similar strategies by other big tech companies like Google.

Magnite and Spectrum Reach Team Up To Enhance Access to Programmatic Advertising

Magnite and Spectrum Reach have announced an expanded partnership to enhance programmatic advertising access across Spectrum's extensive linear and streaming TV inventory. Spectrum Reach will utilise Magnite's technology to deliver targeted, automated ads in a privacy-focused manner via the Spectrum TV App, which is the highest-rated pay TV streaming app in the U.S.

This partnership allows for real-time bidding on individual ad impressions and offers centralised planning and frequency management across both linear and digital platforms. The collaboration aims to unlock the full potential of programmatic advertising for Spectrum Reach's clients, providing custom advertising solutions and improved campaign strategies through detailed data signals and transparency.

DoubleVerify Wants to Teach the Industry About MFA

DoubleVerify aims to explain its technology and role in the industry. At Cannes Lions, DV announced the DV Transparency Center, offering articles and webinars on topics like made-for-advertising sites and brand safety. 

This follows criticism about DV's handling of MFA sites, and the firm seeks this way to clarify misconceptions about its ad verification capabilities.

Prebid.js 9 is released

The new versions highlights include a new PAAPI interface, featuring publisher component selling and publisher top-level selling. Additionally, there is a new preferred GAM creative, improved alignment with the new IABTL instream definitions, and several changes to consent handling. For more details visit here.

IPG’s Magna: UK adspend growth ‘stronger than expected’

UK leads global ad growth at 12.2% in Magna's forecast, expecting total market to exceed £40bn. Digital pure players surged 21%, while traditional media grew 4%. Full-year projections: digital up 15% (£36.3bn), traditional up 1% (£7.5bn). 

Growth is driven by short-form video, DTC brands, and European e-commerce. Automotive, drinks, finance, telecoms, betting show double-digit growth.

Privacy Sandbox Buyer Report: The Who’s Who of DSP Spending in the Post-Cookie Era

Paul Bannister shared insights on LinkedIn and Twitter about DSP spending with Google's Protected Audience API (PAAPI). Most DSPs are cautiously testing with about 1% of their ad spend in a post-cookie world. Amazon started spending in March, indicating a potential quick pivot. AdRoll and Audigent stand out by fully embracing PAAPI.

Audigent's Component Buyer technology positions them as key players despite not running a DSP. Google's DV360 lags behind AdWords in PAAPI spending, showing the challenge of shifting big advertisers. PAAPI aims to balance targeted ads and privacy by running on-device auctions. Publishers must adapt to new ecosystem, updating Prebid.js and handling an evolving workflow.

Adtech vendors join forces for European Programmatic TV Initiative

A group of leading ad tech platforms, including The Trade Desk, PubMatic, Equativ, Magnite, Cadent, Adform, and The Project X Initiative, have formed the European Programmatic TV Initiative (EPTVI) to address challenges in the fragmented programmatic TV advertising landscape across France, Germany, Italy, Spain, and the UK. Major broadcasters and streaming platforms are also involved.

The initiative aims to create a comprehensive understanding of programmatic TV, establish clear definitions and terminology, identify benefits and challenges, and find solutions to barriers. It will showcase successful campaigns to demonstrate effectiveness and develop a roadmap for programmatic TV in Europe, with a summit and report expected in the autumn.

▸ Week 24

• - Oracle exits advertising business following revenue falloff.
• - Magnite Joins Amazon Ads’ Certified Supply Exchange Program.
• - Pixalate Releases Ad Industry’s First Made For Advertising (MFA) Mobile Apps Report: $7.5 Million in Estimated Global Ad Spend Went to Likely MFA Mobile Apps Across Google & Apple App Stores in Q1 2024.
• - Equativ and Sharethrough Merge to Form One of the Largest Global Independent Ad Platforms and Marketplaces.  
• - Roku Will Pass More Data In The Bidstream.
• - IAB Europe AdEx Benchmark Report 2023 Reveals Exceptional Strength and Growth of Digital Advertising in Europe.
• - Apple Is Quietly Replacing SKAdNetwork And PCM With A New Ad Attribution Framework.
• - DV Global Insights: 2024 Trends Report.

Oracle exits advertising business following revenue falloff

Oracle is exiting the advertising business, with CEO Safra Catz reporting a significant decline in advertising revenue to around $300 million in fiscal 2024, down from $2 billion two years ago. This exit opens up opportunities for other companies in the ad industry, especially as new technologies emerge to replace traditional cookies.

Oracle had built its ad division through several high-cost acquisitions, including Responsys, Datalogix, and Moat. Their challenges included changes in data-sharing policies and stringent regulations like GDPR, which led to the end of its third-party data services in Europe in 2020. Oracle's advertising sector faced additional hurdles from lawsuits and regulatory scrutiny, such as the class-action lawsuit over BlueKai's data-sharing practices.

Magnite Joins Amazon Ads’ Certified Supply Exchange Program

Magnite announced joining Amazon Ads’ Certified Supply Exchange Program. This partnership enhances the efficiency of the supply path, providing buyers streamlined, transparent access to inventory through Amazon’s DSP and enabling sellers to better monetise their offerings.

Magnite's alignment with Amazon also facilitates unique advertising opportunities that leverage Amazon's shopper insights, improving ad targeting and effectiveness. This collaboration represents a significant shift towards more direct and effective media transactions, emphasising the importance of close partnerships in the evolving digital advertising space.

Pixalate Releases Ad Industry’s First Made For Advertising (MFA) Mobile Apps Report: $7.5 Million in Estimated Global Ad Spend Went to Likely MFA Mobile Apps Across Google & Apple App Stores in Q1 2024

Pixalate released its Q1 2024 Made For Advertising (MFA) Ad Spend Report, the first to benchmark MFA trends in mobile apps on the Google Play Store and Apple App Store. This report analyses 5.1 million downloadable mobile apps and over 50 billion global open programmatic advertising impressions to assess trends in ad spending on likely MFA mobile apps.

The findings reveal that approximately $7.5 million in open programmatic ad spend was directed towards likely MFA apps, with Google-hosted apps receiving $3.7 million and Apple-hosted apps $1.5 million. A significant 53% of the global open programmatic ad spend on these apps went to developers with private domains, and over half of the ad spend targeted apps in the "Mobile Games" and "Hobbies & Interests" categories.

The report also highlights that non-MFA mobile apps have been available on the app stores about 1.5 times longer than likely MFA apps. This comprehensive analysis provides insights into the scale and specifics of advertising within MFA mobile apps.

Equativ and Sharethrough Merge to Form One of the Largest Global Independent Ad Platforms and Marketplaces

Equativ announced its merger with Sharethrough, forming one of the largest omnichannel ad exchanges aimed at optimising programmatic value and scale. With over 720 employees in 18 countries and a combined net recurring revenue above $200M, the new entity promises to offer an independent alternative to traditional walled gardens, enhancing efficiency and innovation in advertising.

In the first quarter of 2024, Equativ and Sharethrough reported significant growth, driven by strategic partnerships and advancements in curation, CTV, and green media products. The merger leverages their technological assets and global reach to offer a wider range of services including advanced video strategies, user-focused creative enhancements, and sustainable advertising solutions.

Additionally, the combined entity will enhance programmatic advertising transactions and expand addressable solutions, enabling better audience targeting and more transparent dealings. This strategic union positions Equativ and Sharethrough as leading forces in the independent SSP market, poised to reshape the programmatic advertising landscape.

Roku Will Pass More Data In The Bidstream

Roku introduced the Roku Exchange, aimed at creating a direct connection between its advertising supply and programmatic demand. This initiative is designed to ensure that programmatic buyers receive the same data as direct buyers, enhancing transparency and potentially increasing spending with Roku's own DSP.

Roku has integrated this new exchange with various DSPs and SSPs, such as Magnite, to strengthen the connectivity and data flow across its ad network. The Roku Exchange provides programmatic buyers detailed data about ad placements and breaks, similar to what direct buyers receive, although detailed show-level data remains restricted due to privacy concerns.

This is part of Roku's strategy to encourage more programmatic buying by offering enhanced data access, which could reduce advertisers' reliance on third-party DSPs and consolidate more ad spending within Roku’s ecosystem. Roku Exchange plans to include new ad formats like home screen ads and billboard-style units, making advertising on Roku more personalised and integrated.

IAB Europe AdEx Benchmark Report 2023 Reveals Exceptional Strength and Growth of Digital Advertising in Europe

IAB Europe released the 2023 AdEx Benchmark Report, showing a notable 11.1% growth in the European digital advertising market, totaling €96.9 billion. Despite economic and geopolitical challenges, the digital ad sector in Europe remains resilient, outpacing the growth of the U.S. market.

The report, now including quarterly data, provides comprehensive insights into advertising expenditure across 29 national markets, showing that the largest gains are centralised in the UK, Germany, France, Spain, and Italy, which collectively account for 69% of the total spend. Remarkably, digital ad growth in Central and Eastern Europe exceeded the overall European average, with Turkey, Serbia, and Ukraine experiencing significant increases, attributed in part to inflation in these regions.

The report highlights rapid growth in specific ad formats, with video, CTV, and audio advertising seeing substantial increases, driven by strong performance in social media platforms and podcasting. However, growth in the programmatic market is showing signs of maturity, influenced by shifts towards new channels like CTV and retail media, and the industry's adaptation to privacy regulations and the decline of third-party cookies.

Dr. Knapp of IAB Europe remarked that 2023’s robust performance is due to improved economic conditions and renewed confidence among advertisers. IAB Europe’s CEO noted the strong growth in social and video advertising, and the emergence of new impactful channels like audio advertising and retail media.

Apple Is Quietly Replacing SKAdNetwork And PCM With A New Ad Attribution Framework

At the recent Worldwide Developers Conference, Apple introduced a rebranding of its ad attribution frameworks under the new "AdAttributionKit". This framework encompasses both App AdAttributionKit and Web AdAttributionKit, successors to SKAdNetwork and Private Click Measurement respectively.

This move simplifies Apple's privacy-focused ad attribution technologies into a unified framework, although the core functionalities of the original systems remain largely unchanged.The updated framework will now include support for reengagement campaigns, allowing advertisers to track user interactions post-app download, which has been a long-standing request from developers.

Criticism has been directed at Apple's SKAdNetwork for its complexity and limited adoption, with some arguing it hampers ad effectiveness under the guise of privacy preservation. Despite the rebranding, fundamental challenges remain, though Apple is making efforts to enhance its ad measurement tools, as evidenced by the prohibition of fingerprinting techniques in conjunction with the new AdAttributionKit.

DV Global Insights: 2024 Trends Report

DoubleVerify released their DV Global Insights: 2024 Trends Report, which delves into the data shifts and quality foundations of digital media performance, while offering four regional reports on APAC, EMEA, LATAM, and North America that highlight local election-related trends.

▸ Week 23

• - US Ad Revenues to Approach $400 Billion This Year.
• - IAB Tech Lab Finalizes Data Deletion Request Framework to Streamline Digital Ad Supply Chain Privacy Compliance.
• - The Evolution Of Yahoo Backstage One Year After Its Debut.
• - The cases for and against The Trade Desk’s Top 100 List.
  

US Ad Revenues to Approach $400 Billion This Year

The advertising industry in the United States is expected to see a robust year, with projected revenues nearing $400 billion in 2024, showing a 6.3 percent growth year-over-year, excluding political ads. This upward revision from an earlier forecast of 5.6 percent growth follows a strong first quarter where the market grew by 10.1 percent, surpassing expectations. 

Although the growth is set to slow down in subsequent quarters, with an anticipated 6.7 percent in Q2, 5 percent in Q3, and 4 percent in Q4, the overall outlook remains positive.Despite high-profile events like the Summer Olympics, these are not expected to significantly impact overall advertising spending, which instead tends to redistribute existing budgets.

Digital advertising continues to dominate, capturing a larger market share at the expense of traditional media like TV, print, and outdoor. The shift is particularly notable in national TV advertising, which is experiencing a decline as budgets move towards digital platforms, reflecting a permanent trend away from traditional TV advertising.

Political advertising, while lower than in the first quarter of the 2020 presidential election cycle, is projected to exceed the spending of both 2022 and 2020, with an expected total of $15.1 billion in 2024. This contributes to the total U.S. ad revenue projection for 2024, positioning the industry for sustained growth over the next few years.

IAB Tech Lab Finalizes Data Deletion Request Framework to Streamline Digital Ad Supply Chain Privacy Compliance

IAB Tech Lab has released the final Data Deletion Request Framework, marking a significant development in consumer data privacy within the digital advertising sector. This framework was refined after two extensive public comment periods and includes contributions from major industry players like Google, Roku, and others. 

It provides a standardised method for managing data deletion requests across the digital advertising ecosystem, incorporating measures for validating request origins, confirming requester authenticity, and using cryptographic signatures for secure authentication. The framework supports compliance with existing data privacy laws such as the GDPR and multiple U.S. state privacy laws, aligning with the 'Right to Delete' principle.

 It also prepares the groundwork for future privacy regulations within the advertising technology field. To facilitate widespread adoption, IAB Tech Lab is offering a 90-day implementation period with additional support to help companies integrate the new standards smoothly.

The Evolution Of Yahoo Backstage One Year After Its Debut

Yahoo DSP launched Backstage nearly a year ago, offering a direct-to-publisher connection that sidesteps traditional programmatic supply chains like SSPs, in response to the SPO trend. This innovation has seen significant uptake, with 82% of advertisers using Yahoo DSP having tried Backstage, driven by the desire for a more direct access to publisher inventory, particularly beneficial in the competitive CTV market.

eBay, for instance, has utilised Backstage extensively, delivering over 10 million ad impressions at significantly lower CPMs than non-Backstage channels, while also achieving better performance metrics such as a higher attention rating. Backstage not only offers cost benefits by eliminating middlemen and reducing ad spend but also allows advertisers like eBay to target specific demographics more effectively, leveraging partnerships with platforms like Tubi and FuboTV.

The platform is designed to provide flexibility and high fidelity in data targeting, thanks to Yahoo's direct relationships with publishers, which simplifies the data taxonomy compared to traditional SSP-created PMPs. Over the past year, Yahoo has refined Backstage's offerings, including publisher mix adjustments and the addition of targeted PMPs, aligning with market demands and ensuring the exclusion of low-quality sites.

The cases for and against The Trade Desk’s Top 100 List

The Trade Desk (TDD) recently released a list of the top 100 sites it buys from, causing no surprise but confirming its significant influence in the market. This action, while strategic and seemingly routine for The Trade Desk, has stirred concerns among publishers about the company's control over advertising dollars.

On one side, The Trade Desk's maneuvers are seen as smart and strategic, emphasising its efforts to serve advertisers by promoting quality inventory and advocating for principles like consent and first-party data. This includes initiatives like unified ID 2.0, OpenPath, and OpenPass, aimed at enhancing the buying process and ensuring fair compensation for media owners.

However, these efforts are not without controversy, as they challenge the existing dynamics and press publishers to adapt, potentially risking their business if they cannot compete effectively. Critics argue that The Trade Desk's dominance could lead to a lack of diversity in the ad tech landscape, pointing to the absence of major media entities like Netflix from its top list and questioning the company's methodology and intentions.

This dominance is viewed by some as TTD leveraging its position to dictate terms and consolidate control over how ad dollars are spent, potentially marginalising other ad tech platforms and reducing publishers' negotiation power. TTDs’s actions can be interpreted as self-serving, aiming to centralise control and benefit primarily its advertisers, sometimes at the expense of publishers and other ad tech entities.

▸ Week 22

• - Digiday+ Research: Publishers continue to rely on programmatic revenue, despite recent issues.
• - Google’s post-cookie ad tech glitch—recent issue raises industry question.
• - Publishers’ H1 pulse check on ad spend in digital media.
• - A brand safety watchdog wants to galvanize ad tech vendors to save publishers from MFA classification.
• - The Trade Desk Unveils the Sellers and Publishers Report – a Biannual Review of Open Internet Trends.
• - The Trade Desk’s ‘premium internet’ shift stirs concerns among publishers over ad dollar allocation.
• - IAB Europe's Virtual Programmatic Day H1 2024.

Digiday+ Research: Publishers continue to rely on programmatic revenue, despite recent issues

Programmatic marketing continues to be a critical revenue stream for publishers, despite its challenges, as highlighted by Digiday's research which shows that a significant portion of publishers still rely heavily on programmatic ads for income. The research indicates that 82% of publishers reported earning at least a small portion of their revenue from programmatic ads as of early 2024, though this is a slight decrease from previous surveys.

Notably, one-third of publishers surveyed mentioned that programmatic ads constitute a large or very large part of their revenue, underlining the channel's importance despite a slight decline in its overall usage among publishers. Future projections are optimistic, with over half of the publishers planning to focus significantly on enhancing their programmatic business in the upcoming months.

Revenue from programmatic ads is largely derived from the open market, which remains stable, whereas revenue from direct-sold programmatic ads has seen a decline. The increase in publishers reporting no revenue from direct-sold and open market programmatic ads could signal growing issues within the programmatic sector.

Google’s post-cookie ad tech glitch—recent issue raises industry question

Google's Privacy Sandbox faced a temporary glitch that halted ad operations and raised concerns about future vulnerabilities. The issue, which lasted about 16 hours, involved the failure of critical APIs within Google Chrome, causing some publishers to experience a temporary stop in ad activity and revenue flow.

Although the glitch was promptly resolved by Google, it underscored potential risks associated with the heavy reliance on the Privacy Sandbox for ad auctions directly within the browser. The incident highlighted the inherent risks in software, with implications for the digital advertising industry if such outages become common, especially as the platform is intended to handle a significant volume of ad transactions.

In response to the outage and broader concerns, there are discussions about developing alternative solutions, such as "trusted execution environments" (TEEs), to decentralise ad functions and reduce dependency on Chrome. This approach could help mitigate risks and improve accountability by distributing responsibilities across different platforms and technologies.

Publishers’ H1 pulse check on ad spend in digital media

After a dip in spending last year, sectors like technology, finance, insurance, and retail have shown signs of recovery in digital advertising with publishers in the first half of this year. Technology, in particular, has seen a resurgence in ad spending, partly driven by increased interest in branded content and social video offerings, with an emphasis on AI advancements.

While technology ad spend has increased by 7% in H1 2024, healthcare and pharma have displayed mixed signals; some publishers have noted growth through custom events and social video ads, although overall spending in this sector has decreased by 18%. The finance sector has a more moderate recovery, maintaining steady levels of spending compared to last year, with a slight increase of 11% in ad spending over the first four months of 2024.

In contrast, retail and apparel sectors have shown positive trends, with apparel ad spending up by 18%, even though retail saw a 4% decrease. Despite a strong performance last year, the travel sector has faced a significant downturn, with a 21% decline in ad spending, yet it remains a strong category for branded video content and continues to attract interest from advertisers planning for the summer travel season.

A brand safety watchdog wants to galvanize ad tech vendors to save publishers from MFA classification

Publishers affiliated with the Brand Safety Institute (BSI) are actively engaging with major measurement firms to better understand and navigate the classification of content as MFA. The goal is to develop a "publisher portal" that would aid publishers in avoiding wrongful MFA classification by providing insights into how entities like DoubleVerify and Integral Ad Science assess websites.

This initiative arises amid concerns that current industry guidelines are being manipulated by fraudsters, adversely affecting legitimate publishers. Recent reports have highlighted the significant financial losses due to MFA websites, estimated at up to $10 billion annually, underscoring the urgency of refining these evaluation processes.

Additionally, the discussions include improving transparency and communication between publishers and measurement vendors to prevent legitimate content from being unfairly penalised. The effort is moving towards creating a proof-of-concept for the portal by the end of the year, with ongoing discussions about how to manage and protect the sensitive data it will involve. 

The Trade Desk Unveils the Sellers and Publishers Report – a Biannual Review of Open Internet Trends

The Trade Desk has released "The Sellers and Publishers Report," revealing that the top 500 digital publishers generate about 50% of advertising revenue, prized for their quality and efficiency. Consumer trends have shifted, with 61% of online time now spent on the open internet, surpassing time within Big Tech walled gardens, propelled by the rise of streaming TV and digital audio.

The report indicates a decline in the dominance of platforms like Facebook and Google in digital ad spending, as the open internet becomes the preferred venue for engaging content such as movies, TV shows, and sports. It also details the top 100 global advertising publishers, selected based on criteria that demonstrate their appeal to advertisers, showcasing the strength of streaming, audio, and various content platforms.

The Trade Desk’s ‘premium internet’ shift stirs concerns among publishers over ad dollar allocation

The Trade Desk's CEO Jeff Green recently shifted to advocating for the "premium internet," characterised by high-quality ad inventories and user consent, stirring concern among publishers about potential ad dollar reallocation. Publishers fear that TTD's new stance might necessitate large volumes of logged-in users due to its reliance on UID 2.0 for programmatic ad targeting without third-party cookies.

This has led to anxiety among publishers who struggle to collect sufficient email addresses for UID 2.0 integration, fearing it may undermine their data control and benefit TTD at their expense. Despite publisher apprehensions, TTD claims that having 5-10% of their audience authenticated is sufficient to remain competitive, introducing solutions like OpenPass to facilitate user login and authentication.

However, publishers are concerned about the increasing control TTD might exert over their ad operations, especially as the company expands its capabilities within the sell-side of the ad market. As TTD continues to push for high-quality advertising outside of traditional "walled gardens," publishers must navigate the balance between cooperation and maintaining control over their own digital environments.

IAB Europe's Virtual Programmatic Day H1 2024

The Virtual Programmatic Day is set to gather industry experts on June 6th to discuss the latest trends and challenges in Europe's programmatic trading, including Privacy Sandbox and new ecosystem developments. 

▸ Week 21

• - NYT correlates attention metrics to ad performance
• - $1.4B lost to mobile app ad fraud in Q1 2024
• - Alt IDs offer promise but lack scale in adoption
• - Marketers increase programmatic spend despite challenges
• - Paramount adds programmatic ads to shoppable TV
• - Revenue strategies shift for top publishers in 2024
• - Amazon targets publishers to grow its $50B ad business
• - Sell-side curation reshapes post-cookie ad landscape
  

Inside The New York Times’ plans to correlate attention levels to other metrics

The New York Times is focusing on attention advertising, developing proprietary metrics and recently partnering with Adelaide to enhance their ad measurement capabilities. This partnership allows the Times to use Adelaide's tools and AU metric, which include eye-tracking and exposure data, to measure ad attention more effectively.

The Times plans to integrate the AU metric with their existing metrics, aiming for a comprehensive understanding of how ads capture audience attention. Gabriel Dorosz, the Times' Executive Director of Audience Strategy, emphasises the importance of correlating various metrics like viewability and click-through rates with attention data to offer better advertising guidance.

The initiative reflects a broader industry trend towards valuing attention metrics, spurred by changes such as the phasing out of third-party cookies. This shift could lead to more accurate and meaningful advertising impact measurements, aligning with the Times' goal to demonstrate the true value of their ad space.

Pixalate's Q1 2024 Global Ad Fraud (IVT) Benchmarks for Mobile Apps: $1.4 Billion Spent on Ad Fraud & Invalid Traffic (IVT) Across Apps in the Google and Apple App Stores; IVT Rises 15% YoY

Pixalate released its Q1 2024 Global Mobile App Invalid Traffic Benchmark Report and analysis. The research, which included over 5.1 million active mobile apps and 50 billion advertising impressions, found a global mobile app IVT rate of 23%, translating to an estimated $1.4 billion in ad fraud and invalid traffic.

Notably, mobile apps without an app-ads.txt file were at a 73% higher risk of IVT compared to those with the file, and the APAC region, particularly South Korea, exhibited the highest IVT rates at 30% and 36%, respectively. Additionally, apps on Google Play showed an 18% higher IVT risk than those on the Apple App Store.

Alternative IDs Hold Promise, But Lack Scale

As the media industry prepares for the loss of third-party cookies, media buyers are exploring various alternative identifiers (alt IDs) such as UID 2.0, ID5, and Lotame’s Panorama ID. Despite the variety of options, these alt IDs have yet to prove themselves as the definitive solution, with concerns about their effectiveness and scalability persisting.

Trials with these IDs have often been disappointing, leading to a general reluctance among marketers to commit fully to their adoption. Even as some IDs like UID 2.0 begin to see selective adoption, particularly in connected TV sectors, the overall sentiment is one of cautious experimentation and lowered expectations for immediate results.

Despite challenges, marketers plan to increase programmatic spending in 2024

The latest Digiday+ Research Briefing highlights significant challenges in the programmatic ad market, revealing concerns over inventory quality and the impact of the looming disappearance of third-party cookies. Despite these challenges, 58% of brands and retailers have adopted generative AI, with applications ranging from chatbots to copy generation.

At the Digiday Programmatic Marketing Summit, agency executives expressed caution over AI, noting specific contractual stipulations about its use due to inclusivity and security concerns. Programmatic marketing remains robust, however, with substantial investment continuing, as indicated by 77% of brand and retailer professionals using programmatic site display ads.

On the publishing side, executives from leading outlets discussed strategies for revenue diversification, including affiliate commerce and unique partnerships like The Independent's wine club. Amidst this, YouTube is optimising its advertising approach, enhancing its YouTube Select program to create more ad scarcity and targeting opportunities. 

Paramount And Shopsense Add Programmatic Demand To Their Shoppable Ad Network

Paramount has influenced consumer behavior significantly through its media content. In an effort to capitalise on the commercial potential of its shows, Paramount partnered with Shopsense AI, which integrates QR codes and calls to action into TV broadcasts, directing viewers to shoppable landing pages.

This collaboration now extends to programmatic buying with Magnite SSP, enabling broader ad placements directly connected to Paramount's content. Despite the potential of shoppable TV, there is skepticism about consumer adoption, with efforts focused on educating viewers on new shopping behaviors directly from their screens, emphasising the strategic shift towards integrating commerce more deeply with content viewing experiences.

Condé Nast, Forbes, The Atlantic, The Guardian and The Independent on key revenue trends

In 2024, publishers are reevaluating their revenue strategies due to a challenging 2023 that saw less-than-expected earnings and widespread layoffs in the media industry. According to a Digiday+ Research survey, interest in affiliate commerce as a revenue source has declined, with its share of publishers' revenues dropping significantly from 2023 to 2024.

Executives from Condé Nast, Forbes, The Atlantic, The Guardian, and The Independent discussed their diverse approaches to revenue generation, which include affiliate commerce, e-commerce platforms, and strategic partnerships with brands. For instance, The Independent has cultivated a successful e-commerce platform, IndyBest, and The Atlantic considers affiliate commerce a minor but non-negligible contributor.

Condé Nast is focusing on creating immersive shopping experiences within its media environment, aligning content inspiration with product purchasing. Meanwhile, The Guardian US is not currently pursuing affiliate commerce, focusing instead on other growth strategies.

The publishers also emphasised the importance of diversifying revenue streams, incorporating e-commerce, content syndication, and global expansion into their strategies. This diversification is particularly crucial as the media landscape continues to evolve with the rise of AI, the decline of traditional ad revenue, and shifts in consumer behavior.

The Rundown: How Amazon is wooing publishers to bolster its $50 billion ad business

Amazon Advertising's revenue reached nearly $47 billion last year, marking a 24% increase and surpassing the growth rates of tech giants like Facebook and Google. An eMarketer forecast predicts that Amazon's advertising revenue will exceed $67 billion by 2025, spurred by the introduction of new features announced at the Amazon Publisher Services summit.

These features include an advertising ID service called Signal IQ to address the gaps left by the phasing out of third-party cookies, and expansions to the Transparent Ad Marketplace to support all streaming TV publishers. The launch of Amazon Publisher Cloud, now out of beta, offers advertisers direct access to ad spaces from major publishers in collaboration with Omnicom Media Group.

These developments are part of Amazon’s broader strategy to capture more advertising dollars by enabling targeted advertising beyond its own platform, aiming to close the performance gap between its internal and external ad placements. Amidst rising costs and industry changes, Amazon CEO Andy Jassy emphasises that the high-growth, high-margin ads business is crucial for driving the company’s next phase of revenue and profit growth.

How Sell-Side Curation Is Reshaping The Post-Cookie Supply Chain

The decline of third-party cookies has spurred ad tech companies to innovate how they build audiences, shifting from relying on DSPs and third-party cookies to utilising SSPs that curate audiences using first-party data from publishers. This move towards sell-side curation allows the matching of a buyer's first-party data with a publisher's data, forming PMPs that cater to specific audience needs.

These developments have shifted the balance of power, giving SSPs a more dominant role in the programmatic ecosystem and diminishing the control DSPs have traditionally held over audience curation. Additionally, SSPs are now forming partnerships with third-party data providers like Experian and TransUnion to improve the matching rates between buyers and sellers, turning SSPs into data marketplaces themselves.

This trend is also influencing DMPs to evolve into curation specialists, rebranding and adapting to the new landscape where first-party data and closer publisher integrations are paramount. Overall, the industry is moving towards a more integrated and direct relationship between buyers and sellers, emphasising quality, transparency, and efficiency in audience targeting.

▸ Week 20

• - Publishers discuss AI licensing and applications in earnings calls
• - Independent agencies drive CTV programmatic buying growth
• - Q1 2024: Mixed results for publishers, growth in ads and subscriptions
• - Amazon shifts focus at upfronts to entertainment and ad integration
• - Brands invest more in programmatic, agencies show mixed confidence
• - WBD highlights ad-supported streaming potential amid merger challenges
• - Netflix develops ad tech platform, expands partnerships, and enters live sports
• - IAB Tech Lab introduces PAIR for privacy-safe first-party data use

Publisher execs talk AI licensing deals, new applications for AI in latest earnings calls

The interaction between media companies and generative AI technology firms is intensifying, with notable new AI licensing deals emerging. IAC’s Dotdash Meredith and News Corp have entered into significant agreements with OpenAI and Google respectively, focusing on content licensing and AI-enhanced product development.

While these deals are part of a broader strategy to integrate AI into their operations, the financial specifics remain largely undisclosed. Dotdash Meredith aims to use AI to enhance its contextual ad targeting capabilities, particularly important in a digital landscape moving away from third-party cookies.

Meanwhile, other publishers like BuzzFeed and Gannett are incorporating AI to develop internal tools and products that enhance user engagement and ad placement effectiveness. These developments underscore a growing trend of media companies leveraging AI to expand their technological capabilities and advertising efficacy.

Clients of Independent Agencies Boost Programmatic Buying

Smaller advertisers are increasingly leveraging CTV programmatic buying, as reported by FreeWheel, which has seen a 24% increase in impressions from independent agencies this year. These agencies, representing smaller marketers compared to large agency holdings, are benefitting from media companies making ad inventory accessible through self-serve and programmatic platforms.

The report highlights a significant rise in the adoption of multi-publisher programmatic bundles, up 119%, as advertisers aim to reach target audiences across various CTV platforms. With major sports events available for streaming, there's potential for programmatic advertising to expand into live sports, offering new opportunities for addressability and efficiency in high-profile event advertising. 

’ Q1 earnings show promise, but also room for improvement

The first quarter of 2024 showed promising results for publishers, with most seeing growth in digital advertising, except for BuzzFeed, which saw a decline. Subscription revenues were also strong for those that reported them, such as Gannett, Dow Jones, and The New York Times.

Dotdash Meredith experienced increases in licensing and commerce revenue, and overall, media leaders expressed optimism about maintaining revenue growth throughout the year, though they acknowledged the challenges ahead. Specific figures highlighted include BuzzFeed’s advertising revenue falling by 22% and Dotdash Meredith’s digital ad revenue increasing by 19%, though still below its 2022 high.

Gannett reported modest growth in digital advertising and a significant 21.3% increase in digital subscription revenue. The New York Times added approximately 210,000 digital subscribers, with significant contributions from bundle and multi-product subscribers, anticipating that these will comprise over 50% of their total by the next year.

On the commerce front, BuzzFeed is focusing on leveraging its retail media network to offset declining revenues, which fell by 9% year-over-year. Looking forward, the companies have varied expectations for Q2, with The Times predicting increases in subscription and advertising revenue, while BuzzFeed expects a challenging quarter despite anticipated programmatic revenue growth.

Amazon’s upfront debut crowns its courtship of adland

Amazon's recent upfront showcased a strategic pivot from purely data-driven advertising pitches to integrating more entertainment content. At this event, Amazon highlighted new programming to attract scaled audiences, including a new series starring Nicolas Cage and several sports documentaries, alongside updates to established series like “The Lord of the Rings: The Rings of Power.”

Tanner Elton, Amazon's VP of U.S. advertising sales, stressed the unique position of Amazon as an integrated entertainment and shopping platform, enhancing its appeal to advertisers by leveraging its e-commerce ecosystem. Additionally, Amazon's advertising division reported a substantial revenue increase of 24% year over year in Q1, reaching $11.6 billion, driven by enhancements in Amazon Advertising’s technology and new ad formats.

The company also emphasised its integration of first-party data and machine learning, aiming to provide deeper insights into e-commerce behaviors and improve advertising effectiveness. Despite these advances and the ambitious expansion of its advertising capabilities, Amazon has received mixed reviews from media agency buyers on inflexibility and slow response to buyer requests, coupled with high pricing demands during this year's upfront negotiations. 

Marketers remain invested in programmatic, but agencies show less confidence than brands

At the Digiday Programmatic Marketing Summit in Palm Springs, programmatic advertising remains a key focus in marketers' budgets, despite recent shakes in agency confidence. The majority of marketers continue to invest heavily in programmatic site display ads, with an upward trend in budget allocation noted among brands and retailers; 38% have increased their spending compared to last year.

In contrast, agency investment in programmatic is increasing even more, with 42% reporting higher budgets this year. However, the enthusiasm is not uniform; a significant 18% of agency professionals now report zero investment in programmatic ads, a stark increase from 2% just six months prior.

Survey data highlights a disparity in budget allocation trends between brands and agencies, where brands have shown a rebound in substantial investments in programmatic, while agencies see a downward trend among their clients. Key metrics for evaluating the success of programmatic campaigns differ between groups; brands focus on sales and commerce as primary indicators, whereas agencies prioritise clickthrough rates. 

WBD Reasserts Its Place In Ad-Supported Streaming

During this week's upfronts, Warner Bros. Discovery aimed to reassure advertisers and stakeholders, despite its revenue struggles stemming from the merger-related debt. WBD highlighted its integrated ad tech capabilities, now that Warner Media and Discovery have merged, allowing advertisers to run campaigns across its entire portfolio.

The company unveiled new ad products including sponsorships for films on Max, contextual ads tied to content themes, and a data-driven video tool built on its Olli platform, which assists in planning cross-platform campaigns. Additionally, WBD is boosting its appeal by keeping ad loads low on Max, where ad-supported tier subscriptions have doubled, and by leveraging sports programming partnerships with major leagues to draw new subscribers. 

Netflix Is Launching Its Own Ad Tech

Netflix sees significant growth in its ad-supported user base to 40 million monthly active users and now announcing the development of its own ad tech platform. The platform, which is set to start testing in Canada this year and aims for a U.S. launch by Q2 2025, is designed to enhance control and transparency for advertisers.

Additionally, Netflix is expanding its programmatic advertising capabilities by integrating new partners like The Trade Desk, Google's DV360, and Magnite. On the measurement front, Netflix has formed new partnerships with iSpot and TVision, enhancing its analytics capabilities to better demonstrate engagement and optimise ad revenue, while also preparing to enter the live sports broadcasting arena with deals like streaming NFL games on Christmas Day. 

PAIR Up With First Party Data: Unlock Secure, Private And Scalable Targeting

IAB Tech Lab introduces PAIR, a collaborative effort integrating Google’s Publisher Advertiser Identity Reconciliation protocol and the IAB's Privacy Enhancing Technology initiatives to create a secure method for advertisers and publishers to manage first-party data. Utilising encryption and data clean rooms, this solution enables privacy-safe data matching, facilitating programmatic transactions while safeguarding audience personal information.

Both Google and IAB Tech Lab aim to establish PAIR as an open industry standard, improving performance and privacy in using first-party data sets. The core design goals of PAIR emphasise robust privacy protections, including securing personally identifiable information and ensuring the privacy of user identity and audience membership during data transactions.

With PAIR and OPJA sharing similar technical foundations and design objectives, their integration signifies a significant step towards industry-wide adoption of privacy-enhancing technologies. Going forward, IAB Tech Lab PAIR will serve as the sole standard for activating common audiences between advertisers and publishers, overseen by the Privacy and Addressability Working Group.

▸ Week 19

• - Ad tech's Wall Street earnings highlight industry challenges
• - News publishers brace for ad slumps as election season nears
• - Major publishers show resilience amid industry challenges
• - Leaked deck reveals OpenAI's publisher partnership strategy
• - The Trade Desk redefines "premium internet" strategy
• - Magnite differentiates as a leading SSP in CTV
• - PubMatic bets on CTV and SPO for growth
• - Disney partners with Walmart Connect for enhanced targeting
• - Google’s core updates reshape traffic, challenge smaller sites
  

Ad tech’s week on Wall Street underscores critical industry challenges

The recent quarterly earnings reports from leading publicly listed, independent ad tech companies revealed various performance outcomes, with DoubleVerify's significant stock price drop being a focal point. Amidst concerns about the future of 3P cookies, the industry faces an ongoing existential crisis, yet companies like The Trade Desk continue to outperform, leveraging their UID2 as part of a strategic pivot towards CTV and retail media.

Criteo, traditionally known for ad retargeting, is also embracing retail media as part of its rebranding efforts. SSPs like Magnite and PubMatic are exploiting trends towards CTV and retail media, with Magnite integrating into Disney's ad tech strategies and PubMatic showcasing partnerships with companies like Klarna and Roblox.

DoubleVerify, however, has lowered its full-year guidance due to erratic spending by key clients, impacting its stock valuation. The ad tech sector continues to grapple with challenges such as ad verification scrutiny and the need to demonstrate return on investment from recent mergers and acquisitions. 

News publishers prep for possible ad slumps as election season nears

With the U.S. presidential election approaching, news publishers are exploring alternative revenue streams amid uncertainties in the ad market. Dow Jones is emphasising events and non-political content, while The Guardian is targeting political and advocacy advertisers for election coverage.

Some B2B tech advertisers plan to go "dark" by October 1, creating uncertainty for Q4 revenue predictions. Despite this, Dow Jones' CRO Josh Stinchcomb remains optimistic, expecting paused ad dollars to return post-election through events like the CEO Council.

The Guardian's head of sales, Luis Romero, aims to offset potential losses by securing political ad dollars. Meanwhile, Seth Hargrave, CEO of MediaTwo Interactive, highlighted that advertisers' reluctance to run ads during election season is driven by a mix of brand safety concerns and competitive pricing, suggesting that contextual targeting is crucial for publishers.

Dow Jones, NYT, Dotdash Meredith and Informa confound news business doomsters

Recent developments suggest a potential rebound in the news industry, evidenced by an uptick in media shares and strong digital subscriber growth among major publishers. News Corp's Dow Jones division reports significant gains, reaching over 5 million digital subscribers with notable increases at the Wall Street Journal and Barron's.

In contrast, digital advertising faced declines, particularly affected by decreased online traffic. Amidst these challenges, News Corp has secured a lucrative renewal with Google, signaling ongoing beneficial relations between news publishers and the tech giant.

Additionally, advancements in advertising technology, like Dotdash Meredith's cookie-less ad tech D/Cipher, are showing promising results, bucking the trend of online advertising declines. This period of digital adaptation and partnerships, such as those involving generative AI, suggests a transformative phase for journalism, potentially enhancing its sustainability and profitability. 

Leaked Deck Reveals How OpenAI Is Pitching Publisher Partnerships

OpenAI has been actively pursuing partnerships with news publishers through its Preferred Publishers Program with a licensing agreement with the Associated Press. The program aims to enhance visibility and engagement with publisher content on OpenAI's platforms, offering publishers financial incentives divided into "guaranteed" and "variable" values based on user interaction.

Despite OpenAI's assurances, details from a leaked pitch deck show the company's attempts to formalise access to ongoing content, which is critical for training its models to handle contemporary queries. The financial structure proposed combines upfront licensing payments with bonuses tied to how effectively the publisher's content drives user engagement.

However, the relationship between digital publishers and OpenAI remains complex, underscored by ongoing legal uncertainties and varied responses from publishers, ranging from partnerships to lawsuits. Ultimately, the program reflects OpenAI’s broader strategy to integrate and compensate publishers for their content while navigating the intricate dynamics of copyright and data usage in AI development.

The Trade Desk Reframes Its Open Internet Vision As ‘The Premium Internet’

The Trade Desk reported a significant earnings success in Q1, with revenue increasing by 28% to $491 million and net income rising from $9 million in Q1 2023 to $32 million in the latest quarter. This performance continues the trend of consistent revenue growth and profitability for the company. 

In a strategic shift, CEO Jeff Green emphasised a new focus on the "premium internet" as opposed to the broader "open internet," highlighting the need to distinguish between high-quality content and lower-grade, spammy material. He criticised the major tech platforms, or "walled gardens," for their role in circulating low-quality ad inventory and poor ad-to-content ratios, which are often misleading in terms of actual advertising value.

The Trade Desk is taking advantage of increased transparency due to Big Tech litigation and regulations to emphasise the value of premium internet spaces where they operate more extensively. Green also discussed the pitfalls of attribution metrics offered by walled gardens, contrasting the superficial allure of cheap reach on these platforms with the genuine value offered by premium content environments. 

Magnite Makes Its Case As A Differentiated SSP

PubMatic is among several SSPs capitalising on the burgeoning CTV advertising market, with Magnite also reporting a significant rise in CTV ad revenue. Magnite's CTV revenue increased by 18% year-over-year to $55 million, driven by growing demand for programmatic sports inventory and advancements in ad serving, particularly through supply-path optimisation (SPO).

Magnite has launched ClearLine, an SPO product that facilitates direct paths to streaming and online video supply, gaining traction with agencies and brands shifting ad budgets from linear to streaming TV. Magnite's partnership with Mediaocean, a major TV ad buying platform, allows linear advertisers direct access to streaming inventory through ClearLine, integrating major CTV publishers like Disney and Warner Bros. Discovery.

CEO Michael Barrett emphasised the growing importance of SSPs over DSPs in the current ad tech landscape, as SSPs aim to maximise publisher revenue and offer direct connections to premium inventory. However, the competitive environment among SSPs is intensifying, as they strive to differentiate themselves and capture more linear ad dollars transitioning to streaming.

PubMatic Is Betting On Two Ad Tech Acronyms: CTV And SPO

SPO is emerging as a significant growth factor for PubMatic’s CTV business, driven by increased programmatic availability of streaming inventory in response to buyer demands for better campaign automation. PubMatic CEO Rajeev Goel noted during the earnings call that the company’s video ad revenue rose by 33% year over year, outpacing the overall revenue growth due to strong demand for streamlined CTV advertising solutions.

Despite the fragmentation and bid duplication in programmatic supply paths to CTV, PubMatic has launched Activate, an SPO product designed to facilitate more direct buying methods akin to traditional TV ad purchases. This strategic move has resulted in SPO-related activities accounting for 50% of all platform transactions last quarter, signaling a shift towards programmatic guaranteed or private marketplace deals.

While PubMatic’s SPO initiatives aim to attract new publishers and increase control for advertisers over ad budget deployment, the company is also planning to expand its buy-side-focused sales team to better cater to agencies seeking cost efficiencies. Overall, PubMatic’s approach aims to balance the interests of both publishers and advertisers, fostering a higher return on ad spend through direct access to premium CTV inventory.

Disney Taps Walmart Connect To Bring More Shopper Data To Streaming

Advertisers seeking better proof of performance for their streaming investments are turning to closed-loop attribution, like Disney Advertising’s collab with Walmart Connect and NBCUniversal with Instacart. These deals enable advertisers to leverage shopper data for precise targeting and measurement of streaming ad campaigns, enhancing the effectiveness of their advertising spend.

Disney's partnership with Walmart is notable as it extends beyond Hulu to include Disney+, offering programmatic bidding and a pilot program set to expand accessibility to more advertisers. The integration relies on clean room techniques for data matching, ensuring privacy while improving targeting accuracy and campaign attribution, crucial for planning future advertising strategies.

Google Search’s Core Updates Are Crushing Sites And Reshaping The Web

Google Search has recently implemented significant updates that are reshaping internet user traffic, with a core update launched in March 2024 focusing on reducing spam and low-quality content. This update has shifted how websites are evaluated, favoring entire domains over individual URLs and broadly penalising sites with any spammy sections.

This change has led to substantial traffic decreases for many publishers, particularly affecting those with monetisation strategies like sponsored content or high ad density, now deemed spammy by the new standards. Smaller niche sites are experiencing significant losses, with traffic diverting to larger publishers which, despite similarly commercial content strategies, seem less affected by the updates.

This situation raises concerns among smaller publishers that the updates favor big players, possibly linked to their commercial relationships with Google. Overall, the frustration among publishers is growing, as adherence to Google’s guidelines no longer assures search success, suggesting that deeper commercial ties with Google might be becoming necessary to maintain visibility.

▸ Week 18

• - MediaMath signs SSPs post-bankruptcy to rebuild trust
• - Google may limit first-party data use under CMA scrutiny
• - Apple plans AI-enabled Safari with new features
• - CMA updates concerns on Google’s Privacy Sandbox
• - 3 key trends from IAB's 2024 TV ad innovations
• - Samsung, Condé Nast, Roku reveal new ad formats at NewFronts
• - Publishers continue preparing for cookieless future despite delay
• - Google updates EU User Consent policy to include Switzerland
• - CTV and DOOH drive growth for smaller agencies in election season

MediaMath has signed dozens of SSPs, including former short-changed creditors, after ad tech’s biggest bankruptcy

Nine months have passed since MediaMath filed for bankruptcy, marking one of the biggest financial shocks in the history of ad tech. As a result of the bankruptcy, MediaMath's creditors were left over $125 million short, but the company managed to secure a new owner.

Infillion, which acquired MediaMath for $22 million in a bankruptcy auction, has successfully negotiated new agreements with necessary partners. While the service is operational again and attracting new customers, it remains uncertain whether trust will be restored and advertisers will return to the platform. 

Google May Have to Limit its Own First-Party Data Capabilities to Satisfy the CMA

Google recently announced that it's delaying the complete removal of third-party cookies from its Chrome browser until 2025. Meanwhile, the UK's Competition and Markets Authority (CMA) has released its quarterly update on its observations regarding Google Privacy Sandbox. Although Google made the decision to delay, the CMA won't make formal decisions until Google initiates a preparatory period, during which it can provide the CMA with additional information and time to assess the situation.

According to the latest report from the CMA, there are still many unresolved concerns, and analysis by the ICO has raised over 25 new issues related to the Privacy Sandbox. While the CMA hasn't provided details on restrictions yet, it's in discussions with Google about limiting the use of Google's first-party data for advertising purposes on its own platforms. This could impact Google's competitive advantage, especially since concerns raised by the ICO may require significant changes to Google's practices.

Apple to unveil AI-enabled Safari browser alongside new operating systems

Apple is testing Safari 18, which is slated for a 2024 release with iOS 18 and macOS 15. This version includes UI updates, advanced content blocking, and a new AI tool, Intelligent Search. Features include customizable UI for page controls, a "Web Eraser" to delete specific content, and AI-driven text summarization using Apple’s Ajax model.

Furthermore, Safari 18 will consolidate various controls into a single menu, enhancing user accessibility and aligning with iPadOS interface standards. Other future enhancements include a visual search feature planned for 2025, extending the capabilities of Apple's AI-driven tools. 

The CMA Updates Its Privacy Sandbox Concerns

The CMA, England’s antitrust regulator, recently published its quarterly update on the Chrome Privacy Sandbox. While the report highlights several lingering concerns, it also casts a shadow over its future, particularly as Google once again postpones addressing these issues.

Despite these challenges, most of the problems seem feasible to manage, including Google's oversight of the Topics API taxonomy. However, there remains a persistent worry regarding how the Topics API might unfairly disadvantage smaller ad tech firms.
Nevertheless, the CMA suggests that these concerns may be overstated, arguing that smaller players are unlikely to suffer significantly from the introduction of the Topics API.

The primary sticking point revolves around Google's advantage resulting from cookie deprecation. This advantage stems from Google Ads' exclusive access to Google data. Provided that the CMA acknowledges this advantage without alleging antitrust violations, Google can continue to tackle other concerns. 

3 Big Takeaways From 20 Companies Shaping the Future of TV Advertising

During the IAB 2024 NewFronts Main Stage, 20 companies highlighted their innovative approaches to TV advertising, signalling a shift towards digital video. Key topics included the strategic use of attention metrics to enhance advertising effectiveness, as demonstrated by companies like GSTV and Teads, which focus on optimising campaign impacts through precise attention-driven metrics.

Additionally, the event spotlighted the importance of authentically engaging multicultural audiences, with examples from Canela Media and LATV showcasing tailored approaches for reaching diverse consumer groups. The integration of AI in advertising was also a significant theme, with companies like Google and LG Ad Solutions implementing advanced AI technologies to refine targeting and personalise ads.

This technological integration is aimed at providing more accurate measurements and creating more effective advertising strategies. Overall, the presentations emphasised the evolving landscape of TV advertising, where digital innovation and precise consumer engagement are key to future success. 

Briefing: Samsung, Condé Nast, Roku focus presentations on new ad formats and category-specific inventory

During the second day of the IAB's annual NewFronts, Samsung, Condé Nast, and Roku showcased new advertising formats and category-specific inventories.

Samsung introduced interactive ad formats and updated measurement tools, focusing on AI capabilities and expanding its free ad-supported TV service. Condé Nast emphasized its reach in specific content categories like news and lifestyle and highlighted its live and social video capabilities on platforms like YouTube.

Roku presented new home screen ad formats and partnerships, including a hub for Olympics coverage. All three companies highlighted integrating AI technologies to enhance advertising efficiency and user engagement. 

Publishers are still prepping for cookie deprecation despite Google’s delay 

Even though Google announced last week that it's postponing the removal of third-party cookies from Chrome until 2025, publishers weren't surprised. While the continuously shifting deadline isn't ideal, most publishers maintain a positive attitude because the delay provides more time to develop cookieless solutions and integrate them into their businesses to meet advertisers' needs.

Despite the uncertain future of third-party cookie removal, publishers are actively investing in developing and offering first-party data and cookieless solutions to advertisers. The delay offers an opportunity to ensure that solutions like deterministic identifiers are effective and scalable before the removal of third-party cookies, which is crucial for publishers as they prepare for the transition.

Update to Google’s EU User Consent

From July 31, 2024, Google's EU User Consent Policy will include Switzerland, affecting publishers and advertisers who must now ensure compliance across the European Economic Area, the UK, and Switzerland. This policy mandates obtaining legally valid consent to use cookies and process personal data for ad personalization. 

Records of consent must be maintained, and clear revocation instructions must be provided. Additionally, any parties involved in data processing must be identified, and their data practices must be disclosed to end users. Non-compliance could lead to restrictions or termination of Google product use.

How CTV and DOOH are growing this political season for smaller agencies

Agencies anticipate that connected TV (CTV) and digital out-of-home (DOOH) will play a significant role in upcoming elections, especially for smaller media agencies managing less prominent races. These mediums offer additional ways to engage voters and increase political funding through programmatic advertising.

Improved targeting capabilities and the growth of programmatic methods provide smaller agencies with opportunities to initiate local campaigns and utilize data more effectively. In the United States, political advertising spending is expected to surpass record amounts, reaching $15-16 billion in 2024, significantly elevating the importance of both CTV and DOOH in political ad funding.

▸ Week 17

• - The Guardian US seeks political ad revenue under new leadership
  
• - Who's responsible for reducing digital ad carbon emissions?
• - Update on Chrome’s third-party cookie phase-out plan
• - IAB Europe criticises EDPB's opinion on "Consent or Pay" models
• - Publishers enhance newsletters amid AI and referral traffic shifts
• - Advertisers shift focus to CTV and social video ahead of cookie phase-out
• - RTL AdAlliance reveals US-Europe differences in CTV ad preferences
  

The Guardian US is starting its pursuit of political ad dollars 

The Guardian US is actively pursuing political advertising dollars for the first time under the leadership of Luis Romero, SVP of Sales for North America. Political ads were handled on a case-by-case basis and are now set up to systematically accept such ads, with plans to hire a political consultant to establish ad content guidelines aligned with the publication’s mission.

The initial focus will include ads from presidential and congressional candidates, along with advocacy groups concerned with issues like reproductive rights and gun rights, aiming to diversify and increase ad revenues. The move comes after a challenging start to 2024 in terms of ad revenue, but recent improvements suggest a positive outlook, though it's still uncertain how the year will pan out.

Romero hopes that political ad revenue will provide a financial buffer against potential market dips, especially with the November election possibly causing non-political advertisers to pull back. The Guardian is entering the political advertising space later than some competitors, but industry experts believe there is still time to capture significant political ad spending if they act quickly.

Andrew Mullins from IMGE notes that The Guardian's inclusion in platforms accepting political ads is beneficial, as major publications have historically seen good results from such ads. However, he also warns of the challenges and potential compromises in handling political ads, including dealing with objectionable content, emphasising the importance of clear guidelines and integrity in ad acceptance.

The stalemate of sustainability: Who holds the responsibility of cutting carbon from digital ads?

As the world observes Earth Day 2024, there's an ongoing debate in the digital advertising sector about enhancing sustainability, with no clear leader stepping forward. Publishers argue that while they can optimise supply paths to some extent, further actions could jeopardise their revenue. On the other hand, advertisers and brands are hesitant to allocate more of their budgets to greener media without evidence that such campaigns are as effective as traditional ones. Meanwhile, DSPs are pressured by client demands but are exploring greener options.

The Global Alliance for Responsible Media (GARM) is expected to introduce sustainability measurement standards at the Cannes Lions Festival, which may encourage the industry to embrace greener practices. Tools for buying sustainable ads and promoting low-carbon inventory exist, yet broader adoption is hindered by the absence of universal measurement standards and industry inertia.

Discussions at the Green Media Summit highlighted a lack of enforcement and the need for industry-wide collaboration to overcome current challenges. Regulatory pressures like the upcoming Corporate Sustainability Reporting Directive (CSRD) in the EU are anticipated to drive more focused efforts on sustainability in advertising.

Update on the plan for phase-out of third-party cookies on Chrome

In their Q1 2024 report, Google and the UK's Competition and Markets Authority (CMA) shared an update on the timeline for phasing out third-party cookies in Chrome. They acknowledged challenges from diverse feedback across the industry, regulators, and developers and emphasised continued engagement with the ecosystem.

Due to the need for a thorough CMA review and the integration of feedback from industry tests, the deprecation of third-party cookies will not be completed in the latter half of Q4 as planned. Google remains committed to collaborating with the CMA and the ICO, aiming to start the cookie deprecation process Q1 2025 pending an agreement.

IAB Europe Reacts to the EDPB Opinion 08/2024 on Valid Consent in the Context of Consent or Pay Models Implemented by Large Online Platforms

On April 17, 2024, the European Data Protection Board (EDPB) released its Opinion on the "Consent or Pay" model used by large online platforms. IAB Europe expressed significant concerns, arguing that the EDPB's Opinion conflicts with existing Court of Justice of the European Union (CJEU) jurisprudence and mischaracterises personalised advertising and the "consent or pay" model.

The EDPB was criticised for making abstract assumptions about personalised advertising, deeming it incompatible with GDPR's principles of data minimisation and fairness, and for suggesting that data protection rights could become a premium service. Furthermore, the EDPB proposed a mandatory alternative for obtaining valid consent: offering a free service without behavioural advertising, without supporting evidence for such a requirement.

This suggestion was seen as impractical, potentially forcing companies to operate at a loss, and ignoring the balance between data protection rights and the freedom to conduct business. IAB Europe calls for a public consultation to develop more balanced guidelines, ensuring all stakeholders' concerns are considered.

Publishers revamp their newsletter offerings to engage audiences amid threat of AI and declining referral traffic

Newsletters are regaining popularity, with publishers like Axios, The Guardian, and Snopes enhancing their offerings to capture specific audience segments through personalised and automated content. Publishers are innovating their newsletter strategies to maintain relevance amid the rise of generative AI and declining referral traffic, focusing on engaging their most loyal audiences and leveraging first-party data for advertisers.

For instance, Vox Media's Eater and Punch have shifted from standard digest newsletters to more personalised content that resonates with specific reader interests, achieving high open rates. TheSkimm introduces dynamic elements like interactive puzzles and personalised messaging to keep their newsletters engaging and relevant to different audience segments.

Snopes is increasing its newsletter output through automation, aiming to deepen reader engagement and ensure consistent site traffic, which supports its programmatic advertising efforts. The Guardian U.S. is also expanding its newsletter products to convert one-time visitors into regular subscribers, significantly growing its global subscriber base.

Axios is capitalising on high engagement rates by launching paid memberships for its newsletters, adding a new revenue stream and enhancing subscribers' value. These strategies reflect a broader industry trend towards more targeted and sustainable digital audience engagement amidst evolving technology and market dynamics.

Advertisers Look to CTV and Social Video in the Run-Up to Cookie Deprecation

The UK's CTV advertising spend experienced a 21% year-over-year increase in 2023, totalling £1.2 million and representing 17% of all video ad spending, according to the latest IAB Digital Adspend report conducted with PwC. Overall, the UK digital ad market grew by 11% to £29.6 billion, outpacing GDP growth, driven by advertisers capitalising on increased online engagement.

Notably, podcast and social video ad spending also saw significant increases, rising by 23% and 20%, respectively. This outperformed the wider digital ad market and aligned with shifts in consumer behavior during the cost-of-living crisis. The report highlights a strategic pivot in advertising investment toward channels less affected by the impending removal of third-party cookies, such as podcasts, CTV, and social video, positioning them as safer options for advertisers.

Despite challenges from privacy changes, such as Apple’s in 2022, which initially slowed mobile ad spending growth to 4%, mobile advertising rebounded with a 15% increase in 2023, reaching £16.7 billion. The importance of first-party data was underscored by a 12% growth in digital retail media spending to £283 million and a similar rise in DOOH spending to £841 million.

Video and display advertising grew by 12%, with video accounting for 60% of that segment, while search advertising maintained a 50% share of the total digital ad spend at £14.7 billion. This growth demonstrates the digital ad industry's resilience and adaptability, emphasizing the shift towards more secure and engaging digital channels amidst evolving privacy regulations and consumer preferences. 

RTL AdAlliance Research Finds Big Differences Between US and European Attitudes to TV Advertising

The European CTV advertising market distinctly differs from America due to regional complexities, language and legal barriers, and unique TV ad trading models that pose challenges not present in the U.S. market. A study by RTL AdAlliance suggests that U.S. viewers are more open to advertising on streaming services than European audiences.

According to the study, while the penetration rates of smart TVs and viewing habits for linear TV and SVOD are similar in the UK and the US, there's a stark contrast in the acceptance and consumption of AVOD content, with 62% of U.S. respondents watching AVOD content three times a week compared to only 25% in Europe.

European viewers find advertising more annoying across various platforms compared to their American counterparts. They are less receptive to targeted ads on CTV, with only 36% of Europeans open to them versus 66% of Americans. Additionally, Europeans are less likely to purchase products after viewing TV ads, with only 19% reporting occasional purchases compared to 51% of Americans.

Although European viewers report high annoyance with ads, platforms like YouTube continue to attract significant viewership, indicating that displeasure does not always equate to reduced engagement. To attract and retain European audiences, CTV services should enhance user experience by potentially reducing ad load, adjusting ad break timing, and exploring less intrusive ad formats. 

▸ Week 16

• - Video drives 23.2% of US digital ad spend growth in 2023
• - Roku’s patent could inject ads into all connected content
• - EDPB rules Meta's "Pay or Okay" model unlawful
• - YouTube expands ad targeting options for Shorts
• - Publishers seek data and assurances for greener ad auctions
• - TikTok tests new feature to drive traffic to publishers
• - What is the American Privacy Rights Act (APRA) of 2024?
• - Q1 ad revenue for publishers shows mixed results
• - The New York Times expands into gaming to reach new audiences

Video Made Up Nearly a Quarter of US Digital Ad Spend Last Year

In 2023, total digital advertising spending in the US increased by 7.3%, reaching $225 billion, with video ads being a primary growth driver, according to the IAB and PwC's Internet Advertising Revenue Report. Video advertising revenues surged by 10.6%, totalling $52.1 billion and representing 23.2% of all digital ad revenues.

Audio also saw substantial growth, at 18.9%, although it remains a smaller market segment with $7.0 billion in revenue. Despite slower growth rates, search and display advertising contributed significantly to overall revenues, with video outpacing these categories in revenue gains.

The report underscores the critical role of CTV and OTT services, which accounted for 42% of video ad revenues and are projected to be the fastest-growing media channels through 2027. While CTV and retail media provide new opportunities for smaller entities, the concentration of digital ad revenues remains high, with the top ten companies increasing their share to 79.8% in 2023. 

Roku Eyes Patent That Would Inject Ads Into… Everything

Roku has been escalating its user agreement terms to a level where refusal to agree may render devices like streaming hardware and TVs inoperable, restricting users' rights to legal action. This approach reflects a broader corporate trend in the U.S., endorsed since a pivotal 2011 Supreme Court decision favouring AT&T, where companies prioritise growth and revenue over user satisfaction.

Roku's latest patent application aims to overlay ads on any content played via HDMI-connected devices to Roku TVs, signalling a potential new intrusion into user experiences. While not yet approved, this patent illustrates an increasing disregard in the smart TV industry for product quality and user privacy in favour of data monetisation.

The author expresses a preference for simpler, non-smart TVs which prioritise privacy and user control, noting the difficulty in finding such products without smart features that often come with privacy concessions. The tendency of companies to push their limits for financial returns often leads to user dissatisfaction and could provoke a backlash, underscoring a disconnect between corporate actions and consumer preferences.

EDPB Opinion: Meta cannot rely on "Pay or Okay"

The European Data Protection Board (EDPB) has issued a decision against Meta's "Pay or Okay" consent model for platforms like Instagram and Facebook, deeming it an unlawful way of obtaining consent for processing personal data for ads in the EU. The decision emphasises that the concept of "freely given consent" is compromised when users are faced with a choice between paying a fee or agreeing to data processing for behavioural advertising.

Max Schrems from Noyb highlighted that Meta now needs to offer a clear yes/no choice for personalised advertising, noting that while Meta can charge for site reach and engage in contextual advertising, tracking for ads must require explicit consent. The EDPB's statement is likely just the beginning of broader discussions on the legality of the "Pay or Okay" model, with further guidelines expected later this year.

There are suggestions that more monetisation options beyond "Pay or Okay" should be considered, such as contextual advertising or freemium models, which the industry has largely overlooked. Max Schrems criticised the current model for significantly skewing consent rates, suggesting that it manipulates user choice far from being genuinely "freely given."

YouTube Introduces More Ad Targeting Options For Shorts

As announced at the Possible conference in Miami, YouTube Shorts, previously with limited ad targeting options, now allows advertisers to specifically target ads within the platform's short-form video content according to specific content categories. This development enables advertisers to place ads within videos related to distinct interests like sports, gaming, and fashion, enhancing the likelihood of reaching engaged viewers.

Melissa Hsieh Nikolic, YouTube’s director of product management, emphasised that this capability allows advertisers to connect more effectively with users passionate about specific topics. YouTube also released an updated guide offering strategies for creating effective Shorts ads, advising brands on how to tailor content to achieve desired marketing outcomes, whether increasing product consideration or driving conversions.

This guidance comes as brands are still adapting to the short video format, traditionally accustomed to YouTube's long-form content. The rollout of these targeted ads follows a pilot program and several phases of introducing more granular targeting options, including choosing ads to play in the first ad slot of a scrolling session or between top-viewed Shorts.

Despite the availability of these options, YouTube still recommends purchasing Shorts as part of a broader media bundle for optimal reach. However, YouTube is expanding advertisers' control over ad placements, acknowledging the ongoing demand for precise targeting within its diverse viewing platforms.

To Make Auctions Greener, Publishers Need More Data – And A GuaranteeThey Won’t Go Broke In The Process

At the Green Media Summit in New York City, publishers expressed a strong desire to reduce media-related carbon emissions but emphasised the need for more data to understand the financial impacts of such changes. Bridget Williams of Hearst Newspapers highlighted a significant gap in the ecosystem data, which is essential for making informed decisions about ad auctions.

Stephanie Layser of AWS suggested that publishers could use their internal data on revenue, engagement, and ad performance to make holistic business decisions that also promote sustainability. Examples from the industry, like Unwind Media and Mediavine, demonstrated that reducing the number of bid requests does not necessarily lead to a loss in revenue, with benefits in efficiency and viewability.

However, concerns about significant revenue losses prevent some publishers, like Mediavine, from drastically reducing their SSP partnerships. The summit concluded with a shift in focus towards valuing and incentivising publishers who adopt sustainable practices, encouraging broader industry adoption. 

Publishers test new TikTok feature that adds links to organic videos

TikTok is experimenting with a feature that allows publishers to add links to organic videos, a timely development as social referral traffic from platforms like Facebook and X declines. The effectiveness of this feature in driving significant traffic to publishers' websites remains uncertain, although Wes Bonner of BDG expressed hopes of converting a fraction of their 25 million TikTok followers into website visitors.

Another publishing executive described the performance of the feature as "decent" but noted the difficulty in encouraging users to leave TikTok. Despite testing the feature, Sarah Marshall of Condé Nast indicated that their focus remains on storytelling within TikTok rather than driving traffic outside, highlighting TikTok’s nature as a platform designed to keep users engaged internally.

Condé Nast leverages TikTok primarily for brand awareness and monetisation through in-video ads as part of the TikTok Pulse Premiere partnership. Overall, while TikTok offers potential for increased visibility, the platform’s design and user behaviour pose challenges for driving external site traffic.

What Is the American Privacy Rights Act (APRA) of 2024?

On April 7, 2024, Chairs Cathy McMorris Rodgers and Maria Cantwell introduced the American Privacy Rights Act (APRA), a legislative proposal aimed at creating a federal privacy framework in the U.S. The APRA is designed to streamline the complex, fragmented state-level data privacy laws into a single national standard, placing more stringent legal requirements on U.S. publishers but simplifying compliance overall.

The bill empowers American consumers with enhanced control over their personal data, including the ability to manage, correct, delete, and restrict the sale or transfer of their information, mirroring the EU’s approach of requiring explicit consent. APRA mandates data minimisation, requiring companies to collect only the data necessary for their services, and introduces stronger protections for sensitive data such as online activities and biometric information. 

It also introduces regulations specifically targeting high-impact social media platforms based on their revenue and user engagement, recognising their significant role in the digital landscape. The bill emphasises transparency and accountability, requiring entities to make privacy policies easily accessible and understandable to consumers, enhancing trust and ethical data practices. 

Enforcement of APRA involves multiple stakeholders, including the FTC, state attorneys general, and individual consumers, who can initiate private lawsuits against violators. However, the bill's passage faces challenges due to political issues, preemption concerns, and debates over the private right of action, with significant opposition from various sectors, including some state agencies and privacy advocacy groups.

If passed, APRA could significantly affect publishers. Publishers should understand their data handling processes thoroughly and ensure compliance with the new requirements. Despite potential benefits for publishers leveraging first-party data, the transition could disrupt current advertising practices significantly.

Media Briefing: Q1 is done and publishers’ ad revenue is doing ‘fine’

The first quarter of 2024 presented a mixed outcome for publishers' advertising revenues, with some experiencing gains in programmatic CPMs while direct-sold advertising lagged, extending campaign delays from previous years into Q2. The Atlantic had a strong end to 2023 but described Q1 as just "fine," attributing this to advertisers needing more time to organize their annual budgets.

Despite the slow start, The Atlantic saw a 40-50% increase in RFP volume year-over-year, with a significant improvement in proposal win rates compared to 2022. The Guardian U.S. faced challenges in achieving its revenue targets for Q1, as early-year RFPs were lower than expected, and some advertisers postponed campaigns to Q2.

Another anonymous media executive reported a positive shift, noting an increase in RFP volume and budgets, suggesting a recovery from the cautious advertiser behaviour seen in 2023. Overall, there is cautious optimism for a better performance in Q2, fueled by an uptick in programmatic advertising and renewed advertiser activity.

Why the New York Times is forging connections with gamers as it diversifies its audience

The New York Times has significantly expanded its gaming section, notably integrating popular games like Wordle, contributing to substantial digital traffic. Renamed to NYT Games, the platform has become a key part of the Times' strategy to diversify and attract a broader audience.

Despite speculation, the Times is not transitioning into a gaming company but rather enhancing its digital content offerings across various sectors. The expansion into games complements its journalistic endeavours, serving as an entry point to attract new subscribers and retain existing ones. 

▸ Week 15

• - How publishers are diversifying revenue streams in 2024
• - ID5 secures $20M in Series B funding for identity solutions
• - Publishers hit by vendor MFA tools meant to block low-quality sites
• - First-party data gains importance amid Privacy Sandbox concerns
• - Agencies pause Forbes spending after domain spoofing concerns
  

Publisher strategies: How publishers are optimizing revenue streams

In 2024, publishers are diversifying their revenue streams, continuing to rely on direct-sold display ads despite challenges like declining ad revenue from 2023 and ongoing media industry layoffs. With the decreasing effectiveness of third-party cookies, publishers are emphasising the importance of first-party data obtained from subscriptions, which offer a reliable revenue stream and valuable user data.

Additionally, there's a renewed interest in organising events, viewed as a significant revenue and engagement opportunity, recovering from pandemic setbacks. High-quality content has become a primary strategy for advertising, with publishers like The Atlantic leveraging impactful editorial content to enhance newsletter subscriptions and advertising appeal.

Amidst a shift away from third-party data, publishers are increasingly focusing on subscriptions to enhance their ad strategies and broaden revenue sources, utilising first-party data to offer targeted and valuable content to users. Publishers predict a rise in ad impressions driven by first-party data in the coming years, reflecting a strategic pivot towards data they directly control.

Meanwhile, subscription strategies are evolving, with some publishers finding success in unique models like newsletters which build loyalty and encourage higher conversion rates compared to traditional paywalls. Overall, the industry is witnessing a complex interplay between maintaining ad revenue and enhancing subscription services, necessitating a balanced approach to content and monetization strategies.

Alternative Identity Provider ID5 Nabs $20 Million In Series B Funding

The identity solution market is highly fragmented with around 20 competitors, but ID5 CEO Mathieu Roche predicts that only a few will remain viable in the next five years, with ID5 among them. ID5 recently secured $20 million in Series B funding, led by TransUnion and Sir Martin Sorrell’s S4S Ventures, increasing their total funding to about $27 million since 2021.

Roche reflects on the initial challenge of securing Series A funding when the problem of signal loss was not widely recognised, describing it as "preaching in the desert." Currently, ID5 is focusing on expansion and collaboration within the industry to increase market penetration and prepare for a future beyond third-party cookies, emphasising the broader implications of identity across different digital platforms.

Publishers Caught in the Crosshairs of Vendor MFA Tools

A publisher was informed by an SSP that some brands were blocking their website due to an adtech tool from DoubleVerify, designed to prevent ads from appearing on MFA websites. This tool, and a similar one from Integral Ad Science, were intended to help brands avoid websites that mainly aim to generate ad revenue rather than provide substantive content, but legitimate publishers have been inadvertently affected.

Despite complaints and a lack of transparency from DoubleVerify regarding the specific reasons for blocks, publishers are struggling to understand the criteria used, which affects their revenue and relationships in the industry. Both DoubleVerify and Integral Ad Science are refining their tools to offer more nuanced solutions that balance fraud prevention with the need to support legitimate publishers, amidst ongoing industry efforts to better define what constitutes an MFA site.

Publishers bank on their own first-party data amid Privacy Sandbox concerns

Publishers are shifting focus to first-party data, seen as critical in the evolving digital advertising landscape, with 64% indicating it plays a significant role in their ad strategies for 2024. Despite the growing importance of first-party data, the trend shows a decreasing reliance on subscriptions, with a notable drop in publishers reporting significant revenue from subscriptions between Q3 2023 and Q1 2024.

The decline in subscription-based revenue and the challenges around brand safety on platforms like X reflect broader shifts in the digital advertising and publishing industries. Additionally, the ongoing refinement of tools to manage and utilise first-party data suggests publishers are adapting to a market less dependent on third-party cookies and more focused on direct audience engagement. 

‘More distrust in the marketplace’: Agency execs press pause on Forbes spend after domain spoofing report

The operations of Forbes' subdomain designed for advertising have raised concerns within the advertising industry. A report revealed that Forbes deliberately maintained a subdomain that loaded articles with significantly more ad placements than the main site. The subdomain received a substantial portion of its traffic from paid advertisements, unbeknownst to many advertisers whose ads appeared there.

The disclosure has led to concerns about the extent of domain spoofing and the ad industry's ability to detect such practices. Agency executives are reassessing their investments in Forbes and demanding greater accountability, potentially impacting trust in premium publishers more broadly.

▸ Week 14

• - LinkedIn Expands into CTV Advertising
• - Privacy Sandbox and the Cookieless Future
• - US and UK Collaborate on AI Safety
• - Publishers Shift Focus Away from Subscriptions
• - AI Chatbots Revamp On-Site Search for Publishers

LinkedIn Is All Business With CTV

LinkedIn has expanded its advertising capabilities to include new CTV ad placements, targeting audiences off-platform during their streaming sessions. This strategic move allows B2B marketers to reach LinkedIn users beyond the platform, utilising detailed user data such as location and media preferences, during various times of the day, including leisure time at home.

This aims at enhancing the reach to existing LinkedIn members, acknowledging the unique and intentional usage patterns of LinkedIn users who are focused on professional networking and job hunting. Penry Price, VP of marketing solutions at LinkedIn, emphasises the distinct needs of B2B advertisers, who require specific information about their audience's professional roles and decision-making capabilities, which is challenging to achieve through traditional TV ad buying or other streaming platforms.

LinkedIn's foray into CTV is designed to foster brand awareness and consideration among B2B audiences early in the purchasing journey, leveraging LinkedIn's rich data for targeted advertising. The effectiveness of these CTV ads will be measured by engagement increases on LinkedIn and core TV metrics, aiding B2B clients in accelerating the customer's progression through the purchase funnel.

Privacy Sandbox and the Countdown to Cookieless

Since Google began phasing out tracking cookies from Chrome, affecting approximately 300 million users, with full depreciation expected by autumn 2024, the Privacy Sandbox initiative has faced mixed reactions from the advertising industry. As the deadline approaches, opinions on the progress of the Privacy Sandbox vary, reflecting the industry's diverse readiness and attitudes towards adapting to a future without third-party cookies.

Alice Beecroft - Senior Director, Global Strategy & Partnerships, Yahoo - Alice Beecroft emphasises industry collaboration in embracing the Google Privacy Sandbox for campaign insights, seeing its refinement as key to advancing privacy-centric advertising solutions. The company remains hopeful about its potential, subject to positive client feedback during testing.

Wilfried Schobeiri, CTO, Ogury - Google's engagement with the industry on phasing out cookies marks a cautious approach, with the Privacy Sandbox's success and timeline still uncertain. Advertisers are urged to adopt dependable, cookie-independent strategies, emphasising the critical shift towards enhanced consumer privacy.

Gil Sommer, VP of Product, OpenX - Gil Sommer highlights the industry's urgent need for more proactive preparation and testing of alternatives as the phase-out of cookies approaches, noting a significant uptick in engagement with Google Privacy Sandbox's Topics and PAAPI, despite their nascent stage compared to established programmatic methods.

Yang Han, Co-Founder and CTO, StackAdapt - Privacy Sandbox faces industry skepticism due to its APIs that limit ad platform capabilities in Chrome and could centralise control with Google. The reduced functionality for real-time ad decisions and shift towards less detailed reporting have dampened enthusiasm for adoption, amid concerns over competition and innovation.

Benoit Hucafol, VP of Product Management, Equativ - Privacy Sandbox seeks to reconcile user privacy with advertising effectiveness as the industry moves away from cookies. However, concerns about its implementation, the complexity of adoption, and the preference of media buyers for alternative solutions highlight significant uncertainties in the transition.

US and UK announce formal partnership on artificial intelligence safety

The United States and Britain have launched a new partnership focused on AI safety, underscoring concerns over the implications of advanced AI technologies. This collaboration, announced by US Commerce Secretary Gina Raimondo and British Technology Secretary Michelle Donelan, aims to develop testing for AI models and address national security and societal risks.

The partnership includes plans for joint AI model testing exercises and the exploration of personnel exchanges, alongside efforts to foster similar agreements with other nations. Amidst the excitement and fear generated by AI's capabilities, this initiative seeks to harness AI's benefits while managing its risks, highlighted by efforts in both countries to enhance AI safety, security, and regulatory frameworks. 

Digiday+ Research: Publishers turn their focus away from subscriptions

Digiday+ Research early this year forecasted a decline in publishers' reliance on subscriptions for revenue as 2024 progresses, a trend now evidenced by their surveys. The percentage of publishers generating revenue from subscriptions has notably decreased from 74% in Q3 2023 to 56% in Q1 of 2024, with those not earning any revenue from subscriptions rising from 26% to 44%.

Furthermore, the proportion of publishers for whom subscriptions are a major revenue source has steadily decreased over the last year and a half, plummeting from 27% in Q3 2022 to just 7% in the Q1 2024. Publishers increasingly view subscriptions as a smaller portion of their revenue, with a significant 40% stating subscriptions contribute a very small or small portion as of the first quarter of 2024.

This shift indicates a growing acceptance among publishers that subscriptions are diminishing as a primary revenue driver, reflected in their strategic focus away from subscription business models. The emphasis on building subscription businesses has consistently declined, with only 30% of publishers prioritising it in the Q1 2024, down from 44% in Q1 2022.

Specifically, the focus on significantly growing subscription revenue has decreased, from nearly a third of publishers in 2022 to only 9% in 2024. Conversely, the percentage of publishers not at all focused on building their subscription businesses has risen, reaching 41% in Q1 2024, up from 14% in Q3 of 2022.

Publishers give on-site search a long-needed upgrade in the form of AI chatbots

Publishers like Forbes, Financial Times, and Snopes are integrating GenAI chatbots to revamp on-site search and enhance user engagement and leverage their content archives. These initiatives aim not only to improve site functionality but also to offer added value to subscribers - Financial Times providing an AI search chatbot for professional members. 

Despite the potential, some publishers face challenges in encouraging subscriber adoption, with one executive noting low usage rates but high content engagement among those who do use the tool. Snopes' development of a proprietary AI search tool aims to strengthen its position in negotiations with AI tech companies, highlighting the strategic importance of AI in content discovery and engagement.

The implementation of these chatbots has been relatively quick and cost-effective, suggesting a growing trend among publishers to invest in AI to enhance search capabilities and build first-party data. Despite these advancements, marketing AI tools to increase adoption and integrating them into a broader subscriber engagement strategy remain ongoing challenges for publishers.

▸ Week 13

• - CTV to generate $20 billion in US ad revenues in 2024
• - Ad execs critique Amazon’s DSP for usability, demand improvements
• - IAB Europe maps GHG estimation tools for sustainable digital ads
• - Nubai Ventures sues Outbrain over bot traffic claims
• - EC issues DSA guidelines for election integrity online
• - Pubmatic resolves $1 billion CPM error in ad auctions
• - Forbes tests new SSPs to enhance programmatic revenue
  

CTV to Generate $20 Billion in US Ad Revenues This Year

CTV in the United States is expected to generate $20 billion in ad revenues this year, showcasing an 18 percent growth in 2024, as forecasted by Brian Wieser from Madison and Wall. This growth positions CTV to account for 29 percent of all TV advertising, despite national TV ad revenues facing a decline due to shifts towards performance channels and the impact of cord-cutting.

The overall TV sector, however, could see a slight uplift from events like the Summer Olympics, which remain appealing to advertisers for their broad reach. Amazon Prime Video's new ad-supported tier is anticipated to significantly contribute to CTV's revenue, primarily at the expense of traditional TV ad inventory.

The broader US ad market is expected to see a 5.6 percent growth in 2024, fueled by economic optimism and the rise of online businesses, which tend to spend more on advertising. Digital advertising is projected to increase its share significantly, with commerce media and social media expected to see substantial growth, benefiting from the challenges facing the open web.

Ad execs sound off on Amazon’s DSP dilemma

Amazon is eager to attract more advertisers to its DSP, facing significant challenges due to negative perceptions around the platform's user-friendliness, measurement capabilities, and inventory range. Despite concerted efforts to improve these areas, Amazon's DSP has yet to emerge as a strong competitor to Google's DV360 and The Trade Desk, as reflected in a Digiday survey where only 5% of respondents favored Amazon’s DSP.

However, the platform does offer valuable audience-targeting capabilities outside of Amazon's ecosystem, which has been underrecognised compared to its competitors. There is a notable demand among advertisers for more competition in the DSP market, with 43% of survey respondents indicating that an improved Amazon DSP could persuade them to allocate more programmatic ad spend to Amazon.

The industry's desire for a third major player in the DSP market suggests that if Amazon can effectively address its current shortcomings and reposition its DSP, it could significantly increase its market share. This potential shift comes at a time when some advertisers are seeking alternatives to Google and The Trade Desk, indicating an opportunity for Amazon to capitalise on its strengths and reshape the narrative around its DSP.

IAB Europe Unveils First-Ever Mapping of Greenhouse Gas Estimation Solutions in Digital Advertising to Support an Industry-Wide Transition to More Sustainable Operations

IAB Europe has published the inaugural report on Greenhouse Gas (GHG) Estimation Solutions in Digital Advertising, offering an overview of the various models available for estimating emissions. This aims to help stakeholders understand and manage their environmental impact using different tools and methodologies, amid the backdrop of digital technology's significant contribution to global emissions. 

The report highlights the industry's urgent need for standardisation in estimating emissions, given the plethora of tools available and the absence of uniform standards. It details the features of different solutions, emphasising the importance of data quality, supply chain boundaries, and modeling methods in making informed decisions towards sustainability goals.

Participants in the study, including major media groups and trade associations, underline the movement towards reducing digital advertising's carbon footprint through better measurement and reduction strategies. The report calls for more collaboration and standardisation in methodologies to enhance the accuracy and effectiveness of GHG estimation tools, aiming for an industry-wide approach to sustainability.

Nubai Ventures Sues Outbrain, Claiming Its Traffic Is Riddled With Bots

Nubai Ventures has initiated legal action against Outbrain, accusing the ad platform of delivering traffic dominated by bots, particularly when clients do not pay for premium site placements. The lawsuit highlights a significant issue in digital advertising, where Nubai paid over $1 million for traffic that resulted in an 80% drop in ad revenue due to the high volume of sophisticated invalid traffic (SIVT).

Jamarlin Martin, CEO of Nubai, alleges that Outbrain's system unfairly penalises those not opting for more expensive placements, leading to a surge in bot traffic for lower-tier campaign settings. Outbrain refutes these allegations, claiming they attempted to address Martin's concerns, which were met with a lack of cooperation.

Nubai's lawsuit seeks punitive damages, accusing Outbrain of contributing to the broader problem of ad fraud, and calls for greater transparency and accountability in the industry. Outbrain maintains that the lawsuit is baseless and expresses its commitment to combating non-human traffic across its network.

Commission publishes guidelines under the DSA for the mitigation of systemic risks online for elections

The EC has issued guidelines under the DSA for Platforms and Search Engines with +45M EU users to address systemic online risks affecting electoral integrity, particularly for the upcoming European Parliament elections. They are urged to enhance internal processes and implement context-specific risk mitigation measures.

The guidelines also emphasise the need for clear labeling of political advertising and AI-generated content, such as deepfakes, and advocate for collaboration with authorities, experts, and civil society for efficient information exchange and incident response. Post-election reviews are recommended to assess the effectiveness of these measures, with results to be made publicly available for feedback.

In preparation for the European elections, platforms are encouraged to allocate sufficient resources for risk mitigation and cooperate with the European Digital Media Observatory Task Force. The guidelines, informed by public consultation and cooperation with Digital Services Coordinators, also highlight the importance of third-party research into the effectiveness of these measures.

Platforms not adhering to these guidelines must demonstrate to the Commission that their alternative measures are equally effective, with the Commission able to initiate formal proceedings for non-compliance. A stress test with stakeholders is planned to ensure readiness and effective use of established mechanisms.

A Pubmatic Server Anomaly, $1 Billion CPMs, and a Complicated Programmatic Ecosystem

Pubmatic swiftly resolved a significant error in its ad auction system that mistakenly showed $1 billion in CPMs to publishers, avoiding substantial financial repercussions.
This incident revealed the vulnerabilities and complexities within the programmatic advertising ecosystem, underscoring the potential need for increased regulation.

The error, caused by a server anomaly at one of Pubmatic's US data centers, resulted in abnormally high CPM bids being displayed for a brief 40-second period, without actual financial loss to advertisers or publishers. Despite the quick resolution, the event led to discussions about the implications for the programmatic supply chain, highlighting the intricate network of agencies, platforms, and services involved.

The incident serves as a reminder of the fragility of the ad tech ecosystem and the importance of robust systems and collaborations to prevent similar issues. Industry experts are now advocating for clearer regulations to safeguard against such anomalies, emphasising the need for better oversight and cooperation across the programmatic landscape.

How Forbes is testing its SSPs to improve programmatic ad revenue

Forbes is reassessing its relationships with SSPs to enhance ad tech contributions to its revenue, diverging from the standard reliance on SSPs' recommendations based on other publishers' success. The publisher embarked on a strategy of testing different SSP integrations, starting with one that previously showed mediocre revenue, to determine if alternative approaches could yield better results.

During these tests, Forbes experimented with various implementations, like Amazon’s Transparent Ad Marketplace and Prebid, aiming not to shift but to uncover new revenue streams. Remarkably, some tests doubled revenue in new integrations compared to existing ones, with Forbes carefully monitoring these experiments over three-month periods to ensure reliable outcomes.

By 2024, Forbes had expanded its testing to a third and was preparing to test a fourth SSP, selectively choosing which SSPs to examine based on performance, treating these evaluations as a form of performance improvement plan for SSPs. This innovative approach allows Forbes to tailor its SSP strategy, enhancing revenue and refining its ad tech ecosystem. 

▸ Week 12

• - Amazon capitalizes on 3P cookie phase-out with ID++ and privacy-focused ads
• - CTV ad spend hampered by frequency management issues
• - Google’s video standards may reduce revenue for some platforms
• - IAB Europe seeks EDPB input on "Consent or Pay" guidelines
• - NYC MTA launches programmatic ads across all DOOH screens
• - Publishers diversify as video and display revenues decline
• - Key ad tech players test Google’s Privacy Sandbox solutions
• - Disney streamlines ad access with DRAX Direct, retains SSP ties
• - Retail media to reach 20% of US ad spend in 2024

Amazon sees opportunity amid the demise of third-party cookies

As 3P cookies face deprecation in Chrome, Amazon is poised to benefit significantly, emerging as a key platform for targeted and measurable advertising. They are promoting their "durable solutions" like Amazon Audiences and Modeled Conversions, which don’t rely on 3P cookies.

A major focus for Amazon is the development of its own identifier, ID++, aimed at enhancing its ads business and providing a unique connection to publishers' authenticated inventory. This initiative, along with efforts in contextual targeting, positions Amazon as a strong contender in a post-cookie advertising landscape, potentially attracting advertisers seeking privacy-compliant data sharing and measurement solutions.

Despite the uncertain future of 3P cookies, Amazon's strategic moves could enable it to secure a more significant share of the advertising market. However, success in this new environment will require more than just technological innovation; it will also depend on Amazon's ability to offer compelling solutions that address advertisers' and publishers' needs in a privacy-first world.

Frequency management is capping CTV ad spend

Ad tech is exploring new avenues like CTV advertising as traditional online advertising faces challenges with the deprecation of foundational audience targeting tools. CTV advertising, which is expected to grow significantly, presents both opportunities and challenges, such as the need for more efficient frequency capping to encourage increased investment from marketers and publishers.

At the CTV Connect conference, industry experts discussed overcoming the limitations experienced in desktop and mobile advertising and improving ad frequency management. Despite the promise of CTV, issues with data signals and inventory transparency from legacy TV networks complicate frequency capping, impacting viewer experience.

Solutions include using measurement tools to enforce frequency caps and negotiating directly with content providers. Additionally, AI and identity signals like UID2 are being explored to enhance ad targeting and frequency management across CTV and linear TV, potentially transforming CTV advertising effectiveness.

Google’s Adoption Of New Instream/Outstream Standards Could Spell Disaster For Some Online Video Platforms

Google AdX's upcoming video policy update on April 1 aims to align with industry standards by differentiating instream and outstream video, potentially lowering CPMs for previously considered premium inventory. The change, based on guidelines from the IAB Tech Lab, seeks to clarify these categories to better meet advertiser expectations.

This significant shift, given Google's market dominance, could impact monetisation for platforms relying on types of video inventory now deemed less lucrative. Publishers have already reported substantial revenue drops during testing phases on AdX, indicating a potential shake-up in video ad monetisation strategies.

Video content creators, especially those focusing on AI-generated content, may need to adapt by prioritising instream content or exploring new formats. Google asserts that this update will benefit publishers and advertisers by ensuring more accurate inventory representation, despite the immediate challenges it presents.

IAB Europe Sends Letter to the EDPB on the 'Consent or Pay' Model

IAB Europe and other digital advertising groups have submitted a joint letter to the European Data Protection Board (EDPB), requesting a public consultation on the forthcoming guidelines regarding the "Consent or Pay" model. They urge the EDPB to align its stance with existing EU and EEA legal frameworks and to collaborate with competition and consumer protection bodies to define what constitutes "reasonable" pricing. 

The letter emphasises that most Europeans prefer to choose between paying for online services or accessing them for free with advertising support. It counters the claim that the "Consent or Pay" model infringes on data protection rights, asserting that GDPR compliance is required regardless of consent status.

New York’s MTA Enables Programmatic Across Its Entire DOOH Network

Programmatic DOOH is now accessible across New York's transit system, encompassing 3,800 screens, following a partnership between OUTFRONT and the MTA. This expansion offers advertisers direct access to a significant daily audience, improving flexibility and efficiency by allowing for real-time bidding and targeting without the need for long-term direct buys. 

The transition facilitates more precise audience targeting and measurement, incorporating advancements like location-based attribution and dynamic creative optimisation to appeal to advertisers seeking more nuanced campaign strategies.  OUTFRONT aims to increase its share by offering more flexible buying options and integrating data for richer audience insights, even as it anticipates direct deals will continue to dominate premium placements.

Publishers Look to Diversification Amid Falling Video and Display Revenues 

UK digital publishers experienced a revenue decline of 1.8 percent YoY in Q4, as reported by the AOP and Deloitte, with significant drops in online video and display advertising revenues. Despite these challenges, there were positive developments in other revenue streams, such as subscriptions and sponsorships, which saw significant growth, along with a 300 percent increase in digital audio revenue in Q4.

The varied impact on publishers, with half reporting growth in Q4, underscores the importance of diversifying revenue streams beyond traditional digital advertising. Industry experts emphasise the necessity of diversification and the potential of emerging areas like digital audio and subscriptions as vital for publishers navigating declines in ad revenue and evolving market demands. 

Ad execs enter crucial phase of Google’s Privacy Sandbox experimentation

Google's Privacy Sandbox enters a critical test phase with major ad tech firms like Adform, Criteo, and Magnite participating to evaluate alternatives to 3P cookies, focusing on the Protected Audiences API, Topics API, and Attribution Reporting API. This testing is part of compliance with the U.K.'s CMA, aiming to provide advertisers and publishers with valuable insights into ad effectiveness and pricing dynamics without 3P cookies.

The tests, involving only a small portion of ad traffic, seek to measure the potential impact on ad prices and demand, with companies committed to maintaining a stable test environment to ensure reliable data. Despite the limited scope, this period is seen as a crucial step in understanding how the Privacy Sandbox can balance advertiser ROI and publisher CPMs in a post-cookie landscape.

Results from these tests are not expected to be conclusive but will inform ongoing discussions and development around alternative tracking mechanisms. The industry's exploration of the Privacy Sandbox reflects broader efforts to find privacy-first solutions to the challenges posed by the phasing out of third-party cookies. 

How Disney Juggles Direct Supply Paths Without Disintermediating SSPs

Disney is pushing to automate its ad sales by the end of the year, introducing DRAX Direct to facilitate direct advertiser access to Disney+ and Hulu inventory through The Trade Desk and Google’s DV360. This direct approach aims to offer advertisers more transparency and higher audience match rates by bypassing supply-side platforms, enhancing the efficiency of ad buys.

DRAX Direct allows for first-party data matching with Disney’s audience through integrations, improving upon the slightly lower match rates seen through supply-side platform matches. Despite this direct path, Disney clarifies that the move is not about disintermediating SSP like Magnite but offering advertisers more options for accessing inventory. 

This strategy reflects a growing buyer preference for direct paths, yet Disney maintains partnerships with over 30 DSPs to cater to a wide range of advertisers, from small to mid-market. Disney's initiative with DRAX Direct is not expected to reduce demand through SSPs but rather to simplify the technology process for advertisers seeking direct access to its ad inventory.

Retail Media to Make Up One-Fifth of US Ad Spend This Year

Retail media spending in the US is projected to significantly increase, accounting for one-fifth of the US ad spend in 2024 and potentially almost a quarter by 2025, as forecasted by Advertiser Perceptions. The growth is primarily driven by offsite programmatic retail media platforms, with spending expected to surge to over $20 billion this year.

Despite the rise in retail media, programmatic ad spending on mobile and desktop is expected to remain flat or achieve only single-digit growth, presenting challenges for publishers. However, digital ad spend continues to grow, fueled by the popularity of short-form videos on social media and anticipated boosts in CTV spending due to the elections and Olympics, underscoring the evolving landscape of digital advertising.

▸ Week 11

• - Adalytics: Ad tech firms still engage with MFA sites despite prevention claims.
• - Criteo offers Privacy Sandbox support for smaller ad tech players.
• - Video ads face challenges with Privacy Sandbox integration.
• - IAB Europe releases CSRD guide.
• - Publishers focus on direct-sold ads, reducing emphasis on other revenue streams.
  

Adalytics Report Torches Ad Tech For Touting MFA Prevention While Scarfing MFA Supply

The advertising industry faces challenges with the prevalence of made-for-advertising (MFA) sites despite claims of reducing such inventory. An Adalytics report highlights this issue, showing major SSPs and DSPs still engage with MFA sites.

This situation underscores a complex ecosystem where incentives misalign; SSPs removing MFA might see reduced reach and higher CPMs, while DSPs driven by client demand for reach and low costs continue utilising MFA. The report also commends companies like The Trade Desk for effectively filtering out MFA. It suggests ongoing maintenance and stakeholder alignment are essential to tackle MFA effectively.

Criteo is exploring a services layer for Privacy Sandbox

Ad tech vendors concerned about the complexities and costs associated with Google's shift away from cookies may find a solution in Criteo's technology. Criteo, having acquired IPONWEB, a key player in the ad tech infrastructure, is in discussions with Google's Privacy Sandbox team to offer services that would alleviate the burden on smaller SSPs and DSPs lacking resources for this transition.

This move taps into IPONWEB's legacy of enabling connections within the programmatic ecosystem, potentially offering sandbox solutions to support the industry's move to a cookieless environment. Developing and maintaining technology compatible with Google’s Privacy Sandbox alternatives could cost companies around $7 million, highlighting Criteo's proposition's financial advantage.

Despite Criteo's readiness and the industry's apparent need, it remains uncertain if the broader ad tech market will embrace Criteo’s services, given the competitive dynamics and the significant resource allocation required for such a transition. The industry faces a pressing timeline, with Google committed to eliminating third-party cookies by the end of 2024, amid concerns about the readiness of the Privacy Sandbox APIs.

Privacy Sandbox: What’s Wrong With Video?

A technical mismatch between VAST, the video ad serving standard, and Google's Protected Audiences API (PAAPI) within the Privacy Sandbox complicates video ad delivery as the industry transitions from third-party cookies. The integration challenges between these two technologies require significant changes across the ad ecosystem to maintain publisher revenue and fill rates.

Current proposals limit video ad fallback options, impacting ad delivery reliability. Publishers and ad tech partners are urged to increase their testing with the Privacy Sandbox to adapt to these changes, seeking technical compromises to ensure seamless video ad operations.

IAB Europe's Guide to the Corporate Sustainability Reporting Directive (CSRD)

Since the European Green Deal's launch in 2020, the EU has introduced the Corporate Sustainability Reporting Directive (CSRD) to improve transparency and accountability in
corporate reporting. IAB Europe's Sustainability Committee has developed the ‘Guide to the Corporate Sustainability Reporting Directive (CSRD)’ as an educational resource, providing valuable insights and guidance on the CSRD.

Publishers sort out their revenue priorities for the year, with direct-sold ads leading the way

As the first quarter of 2024 concludes, Digiday+ Research's surveys of over 150 publishing professionals reveal a strategic shift in revenue generation priorities following a challenging 2023. Direct-sold advertisements have emerged as the primary focus for publishers, overshadowing other revenue streams like subscriptions and affiliate commerce. 

The research indicates a stable hierarchy in revenue sources, with direct-sold ads, programmatic ads, branded content, and video advertising leading. However, there's a notable decline in emphasis on branded content and other areas compared to the previous year. Specifically, branded content decreased from 80% of publishers benefiting from it in Q1 2023 to 72% in Q1 2024, with a similar downtrend in intent to focus on this area.

Subscription, events, and affiliate commerce revenues also experienced reductions, highlighting a broader trend of decreased diversification in publishers' revenue models. Despite these shifts, the surveys highlight significant increases in publishers' intent to focus on direct-sold ads, programmatic ads, branded content, and video advertising in the upcoming months, marking a concentrated effort to bolster these areas in 2024.

▸ Week 10

• - The Rise of "Hedged Gardens" in Data Collaboration
• - Privacy Sandbox Latency Issues Impact Publishers
• - Reach's 2023 Results: Print Outpaces Digital
• - Microsoft Edge Launches Privacy-Focused Ad API
• - Google Adapts to EU's Digital Markets Act
• - ICO Considers "Consent or Pay" Advertising Models
• - CJEU Defines IAB Europe's Role in TCF
• - IAB Europe Highlights Sustainability in Supply Chains
• - Subscriber Preferences Shift Towards Flexibility in 2024
• - Prebid Event: ASCENT London Set for May 1st

The Dawn of Hedged Gardens: The Evolution of Data Collaboration

The transformation within the data management and privacy landscape leads to a new approach called "Hedged Gardens," emphasising balanced data collaboration. This shift, propelled by advancements in decentralised data clean rooms and privacy-preserving technologies like differential privacy and identity resolution, aims to foster a secure and collaborative data environment.

"Hedged Gardens" allow for controlled data collaboration with safeguards for privacy, while "Clean Houses" focus on maintaining data integrity and privacy. This evolution addresses the limitations of traditional "Walled Gardens" by enabling secure data sharing and analysis, paving the way for a more interoperable and privacy-conscious data ecosystem. 

Privacy Sandbox’s Latency Issues Will Cost Publishers

As the advertising industry adapts to Google's Privacy Sandbox and the deprecation of third-party cookies, there's a push towards privacy-centric advertising. Early testing of Privacy Sandbox's Protected Audiences API (PAAPI) reveals challenges such as increased latency affecting ad viewability and yield, making large-scale testing financially risky for publishers.

Despite this, industry participation in Sandbox testing is crucial for navigating the cookieless future. Feedback to Google is essential for refining PAAPI, emphasising the need for publisher control and reporting within the Sandbox. The industry's collective effort in testing and feedback is vital for developing privacy-friendly, effective advertising solutions. 

Reach results 2023: Revenue falls 5% as print outperforms digital

Reach, a UK media company owning Mirror, Express, and +100 local news brands, saw a 5% revenue decline to £568.6m in 2023. Digital revenues fell by 15% to £127.4m, while print decreased only by 2% to £438.8m, aided by reduced newsprint costs and cover price hikes. Despite the overall decline, print remains the major revenue source, contributing 75%, as Reach focuses on transitioning to a digitally-focused, data-driven business model. 

New Privacy-Preserving Ads API coming to Microsoft Edge

Microsoft Edge enhances user protection against tracking and introduces the Ad Selection API to allow relevant advertising without third-party cookies, incorporating strong privacy measures. This API leverages Trusted Execution Environments for data protection and is part of efforts to phase out third-party cookies, starting with small-scale experiments responsibly.

Microsoft urges the industry to test and provide feedback on the Ad Selection API.

How to test third-party cookie deprecation in Microsoft Edge today:

• Go to edge://flags/#test-third-party-cookie-phaseout in a new tab.
• Enable the Test Third Party Cookie Phaseout flag.
• Restart Microsoft Edge.
  
  
  

Google in Europe: Complying with the Digital Markets Act

The European Union's Digital Markets Act (DMA) is now in effect, imposing new regulations on designated companies. Google has announced various changes to comply with the DMA, including modifications to search results, the introduction of choice screens on Android devices, and new consent requirements for linking Google services.

These changes are designed to foster transparency and offer users more control, but they also present trade-offs affecting users and businesses. Google aims to balance innovation with user privacy and security, navigating complex issues while engaging with stakeholders. Compliance efforts include enhancing data portability, allowing third-party apps and alternative billing systems, and focusing on data sharing and transparency measures. 

ICO calls for views on allowing UK publishers to tell readers: ‘consent or pay’

The UK's Information Commissioner's Office (ICO) is assessing the regulatory stance on "consent or pay" models for personalised advertising, offering users a choice between consenting to share personal data for targeted ads or paying to keep their data private. This approach addresses the lower revenue from non-personalised ads for publishers.

The ICO emphasises the need for fair user choice in consent mechanisms for non-essential advertising cookies, understanding that publishers are exploring "consent or pay" models and seeking clarity on regulatory positions to inform their investment decisions. 

CJEU Ruling Clarifies Limited Role of IAB Europe in TCF

The Court of Justice of the European Union (CJEU) ruled on IAB Europe's appeal against the Belgian Data Protection Authority's decision on the Transparency & Consent Framework. The court clarified the concepts of personal data and joint controllership, finding that digital signals (TC Strings) indicating user preferences are personal data, and IAB Europe can be considered a joint controller for their creation and use.

However, IAB Europe isn't seen as a joint controller for subsequent processing by TCF participants for digital advertising and related purposes. This ruling allows the ongoing legal process to proceed with clarity on these points. Pending the Belgian Market Court's further examination, the suspension of the authority's decision continues. This outcome has broad implications for organisations with digital activities. 

IAB Europe Unveils Latest Supply Chain Transparency Guide with a Focus on Sustainability

The IAB Europe's Programmatic Trading Committee has released a new version of the Supply Chain Transparency Guide, reflecting the industry's commitment to transparency and sustainability. The guide provides key questions and guidelines to help stakeholders make informed decisions and promote digital advertising supply chain accountability. 

Digiday Report: What subscribers want from their subscriptions in 2024

Subscribers are increasingly seeking flexibility and transparency in their subscriptions due to rising costs, with video streaming and retail subscriptions being the most popular. Despite the popularity, 57% have cancelled subscriptions anticipating price hikes, highlighting a desire for control over costs and content. 

Successful publishers and brands in streaming and retail see growth by aligning with these preferences. Download the full survey (conducted by Bango from 5,000 U.S. subscribers) for more in-depth information. 

Prebid event: ASCENT London May 1st

Industry leaders will gather to discuss the future of privacy-focused, ad-supported digital ecosystems, focusing on channels like CTV and in-app. The event will highlight Prebid's open-source solutions to enhance programmatic revenue and encourage collaboration among publishers, ad-tech firms, and buyers. 

▸ Week 9

• - Google faces $2.3B lawsuit from media groups over ad practices
• - Ad tech reacts to third-party cookie phase-out with diverse strategies
• - Publishers report mixed Q4 2023 earnings, subscriptions remain vital
• - DoubleVerify and Roku uncover $7.5M/month CTV ad fraud scheme
• - IAB Tech Lab advances OpenRTB support for Protected Audience API
• - Magnite's CTV revenue grows 20% in 2023, prepares for Privacy Sandbox
• - FreeWheel launches Allocation Module for programmatic TV ad buying
  
• - DoorDash fined $375,000 for violating CCPA privacy regulations
• - Canada expands antitrust probe into Google's ad tech dominance
  

Google hit with $2.3 bln lawsuit by Axel Springer, other media groups

Google has been hit with a $2.3 billion lawsuit by 32 media groups, including Axel Springer and Schibsted. The companies allege they have suffered losses due to Google's digital advertising practices.

The group accuses Google of restricting competition and claims that without Google's abuse of its dominant position, media companies would have earned significantly more from advertising and paid less for ad tech services. 

Ad tech’s take: early reactions to Google’s third-party cookie demise

Although the end of third-party cookies was expected to be catastrophic for ad tech, it has proven to be a win for many players.

For example, The Trade Desk has managed to weather the challenge well so far, with its alternative Unified ID 2.0 increasing cost-effectiveness and prices. Magnite and PubMatic have responded to the challenge differently: Magnite supports the Privacy Sandbox, while PubMatic has focused on growing areas where cookies are unnecessary.

Criteo expects a challenging year ahead, while LiveRamp is ready for the removal of cookies and is heavily involved in new targeting opportunities. Integral Ad Science, on the other hand, focuses on filling the gap left by cookies with contextual data and attention metrics. 

Publishers’ Q4 earnings paint a gloomy picture of 2023

Analysis of Q4 2023 results hinted at a potential recovery in ad revenue.

Publishers like Gannett, IAC, News Corp, and The New York Times have already released their full-year 2023 results, showing a decline in ad revenue but highlighting the importance of subscription revenue as a stabilising factor. The New York Times saw a 9.9% growth in digital subscriptions over the year, while Gannett reported an increase in digital subscriptions in the last quarter.

Looking ahead to 2024, publishers anticipate positive developments, with BuzzFeed expecting financial benefits from the sale of Complex. 

DoubleVerify and Roku uncover CTV ad fraud scheme costing advertisers $7.5M per month

DoubleVerify and Roku uncovered a major CTV ad fraud scheme called "CycloneBot" in early 2023, estimated to have siphoned off $7.5 million per month from advertisers.

The fraud utilised traditional domain spoofing in a new way, generating impressions that mimicked prolonged CTV viewing sessions. Roku leveraged its own Advertising Watermark technology to unveil the fraud, underscoring the increasing sophistication of CTV ad fraud. This raises concerns among advertisers as frauds are possible across all buying paths. Roku is considering making Advertising Watermark the industry standard to combat future CTV ad frauds. 

IAB TECH LAB: Introducing Initial OpenRTB Support for the Protected Audience API

Google's Privacy Sandbox introduces innovations in advertising buying and selling through several APIs. OpenRTB is gearing up to meet these new challenges, especially for the Protected Audience API, which requires a clearer support framework.

With this development, ad tech industry standards like OpenRTB will adapt to support in-browser real-time bidding, opening new opportunities for programmatic advertising.

Magnite’s CTV Spend Swelled By 20% In 2023

Magnite's Q4 revenue hit $187 million. While CTV's portion of the revenue grew, its actual revenue was slightly lower than the previous year.

CEO Michael Barrett emphasized CTV's expansion through partnerships with companies such as Roku and Warner Bros and new market opportunities. Additionally, the company is gearing up for the end of third-party cookies by integrating and supporting Privacy Sandbox. 

FreeWheel Introduces Programmatic Ad Buying to the 2024 Upfronts with Industry-First, Allocation Module Solution

FreeWheel has launched a solution called the Allocation Module, which allows marketers to comprehensively manage their advertising commitments and explore new opportunities in bid-based TV advertising.

The platform provides advertisers and publishers with improved tools for managing the upfront commitments of video advertising across various transaction types, including direct campaigns, programmatic guaranteed, and, for the first time, bid-based programmatic deals. The allocation Module enhances transparency and optimises the process by which advertisers fulfil their upfront commitments across different advertising channels, offering better control and efficiency. 

Doordash Must Pay $375,000 Fine for CCPA Violation

The California Consumer Privacy Act (CCPA) amendments took effect in February.

DoorDash has been ordered to pay a $375,000 fine for violating the CCPA and the California Online Privacy Protection Act (CalOPPA), warning the industry about the importance of adhering to privacy practices. The decision by the California court confirms the enforcement of the amended CCPA regulations, marking a new phase in privacy protection oversight. 

Google Faces Wider Antitrust Probe Over Online Ads in Canada

The Canadian Competition Bureau is extending its investigation into Google, scrutinizing the company's dominance in the advertising market. The probe, which commenced in 2020, now centres on Google's role in the online advertising technology market, examining how the company's actions could restrict choice and innovation.

The company contends that its products are selected for their effectiveness and pledges to maintain collaboration with the Competition Bureau, highlighting the competitiveness of its sector. 

▸ Week 8

• - Publishers report strong Q1 2024 recovery
• - Roku targets SMEs with Ads Manager
• - Criteo adapts to Privacy Sandbox
• - CTV campaigns grow in Europe
• - Short-form video challenges publishers
• - IAB Europe explores cookie-less readiness
• - Transparency issues in CTV advertising
  

Publishers say Q1 is ‘off like a rocket’ after a lousy 2023

Ad revenue for Q1 2024 is showing positive trends compared to the previous year, with digital media executives noting a significant recovery. Apartment Therapy Media, for instance, reports a 20% increase in Q1 ad volume and a 40% rise in full-year bookings year over year. 

Despite a challenging 2023, publishers like BDG and Vox Media are also experiencing a 10% increase in ad sales. The industry observes larger deal sizes, higher win rates, and a significant rise in client renewals, suggesting a more robust advertising market as we move further into 2024. 

CTV providers court SME ad spend as the streaming wars enter a new era 

Roku is shifting focus towards its Roku Ads Manager, targeting small-to-medium enterprises by sunsetting its OneView ad platform, introduced in 2020. This move, part of a broader strategy to attract SME advertising spend, involves channelling resources into Roku Ads Manager, which offers a more accessible platform with a lower minimum campaign spend of $500. 

This adjustment aims to make Roku's extensive streaming inventory, which tallied over 100 billion hours across 80 million active accounts last year, more accessible to SMEs, aligning with industry trends where CTV providers like Disney’s Hulu and NBCUniversal target beyond large advertisers. 

How Criteo is playing within Google’s Privacy Sandbox

Criteo anticipates a significant revenue impact, estimating a loss of $30 million to $40 million in the latter half of the year due to Google's phase-out of third-party cookies. Despite historical reliance on cookies for ad targeting, Criteo is adapting by investing in Google's Privacy Sandbox as an alternative, with a dedicated team working on testing these tools. The company's comprehensive involvement in both the supply and demand sides of ad tech allows it to assess the broader effects of this transition on ad spend ROI and publisher revenue. 

CTV, Targeting, and Sustainability - Europe 2023–2024

As the use of third-party cookies decreases, the share of campaigns executed through CTV in Europe is set to increase significantly, while brands and agencies are increasingly turning towards curated media purchases. The market is recognising the importance of sustainability and is investing heavily in practical actions to reduce carbon emissions, according to a research report "CTV, Targeting, and Sustainability - Europe 2023-2024", published by ExchangeWire and OpenX.

Marketers have noticed the increased attention and premium inventory offered by CTV, and 90% predict that many of their campaigns will be run through CTV in the next two years. At the same time, dependence on third-party cookies is decreasing, and probabilistic identity models are on the rise. 

Why Short-Form Video is "an Ambivalent Investment" for Publishers

Transparency is the largest obstacle in CTV, reveals research

The report by DoubleVerify and IAB Europe highlights challenges in CTV advertising transparency and quality verification in the UK and Europe. It reveals only 30% of advertisers and publishers have full ad placement transparency, and a third of impressions serve when TVs are off. 

Despite these issues, optimism for CTV's potential remains, driven by its ability to deliver premium programming at scale. The study calls for enhanced verification measures to unlock CTV's full benefits and underscores the importance of transparency and quality control for growth. 

▸ Week 7

• - Privacy Sandbox faces challenges, Google responds
• - Trade Desk launches SP500+ for premium publishers
• - MediaMath's new owner reintegrates with AdLib
• - OpenPath expands to CTV with Trade Desk
• - Publishers grow ad offerings, focus on branded content
• - Prebid Webinar: The State of Cookie Deprecation
• - Sustainability in digital advertising: 2024 report
  

IAB Tech Lab Report Reveals Privacy Sandbox Complications, But Google Addresses Criticism

Google faces resistance regarding its Privacy Sandbox initiative and the discontinuation of third-party cookies, which may delay the implementation of these measures in Chrome. The concerns raised by the United Kingdom's Competition and Markets Authority (CMA) and the challenges outlined in the IAB Tech Lab's report require Google to find solutions to competitive and technical problems.

Despite potential delays, Google continues its efforts to eliminate third-party cookies, working with the digital advertising ecosystem and regulatory authorities to develop sustainable solutions. 

Trade Desk's quality-focused product, SP500+, puts publishers at the center

The Trade Desk has launched the pilot of a new product named SP500+, offering buyers a unique opportunity to target advertising across a broad selection of premium publishers such as The New York Times, Disney+, Hulu, ABC, and The Wall Street Journal.

Spotify and other audio content providers are unavailable via SP500+, but The Trade Desk plans to expand its service to include Spotify. The product is currently in beta testing, and the schedule for its full release remains open. SP500+ is part of The Trade Desk's broader product suite, Kokai, which is designed to facilitate cooperation between advertisers and third-party suppliers.

MediaMath's new owner aims for cooperation with former partners

Infillion, the fresh owner of MediaMath, and AdLib, a platform offering programmatic media buying, especially for small and medium-sized advertisers, have announced a collaboration that signifies more than just traditional integration – it is actually a reintegration. AdLib was closely connected to MediaMath for over six years until MediaMath abruptly filed for bankruptcy, leaving AdLib and many other companies in a difficult position.

The bankruptcy news was a severe blow to AdLib, forcing rapid actions to transfer campaigns to other systems. Following this ordeal, AdLib expanded its operations by establishing new partnerships in the DSP market. After the collapse of MediaMath and its acquisition by Infillion, AdLib has now been reintegrated into the MediaMath ecosystem, now under the rebranded MediaMath by Infillion, which opens up broader customer segments for Infillion. 

The Trade Desk is rolling out OpenPath to CTV

The Trade Desk is expanding its OpenPath to the CTV media environment. Two years ago, it sparked discussion by cutting out SSPs with its direct publisher model, and now it's offering the same opportunity for CTV inventory. Cox Media Group and Vizio are among the first participants. After the initial confusion, the situation has stabilized, and The Trade Desk aims to handle its relationship with SSPs diplomatically. 

Most publishers grew their ad offerings, with a focus on branded content

Despite the challenges of 2023, many publishers succeeded in maintaining their staff and expanding their advertising offerings. According to Digiday+ Research, 56% of publishers specifically focused on developing branded content, highlighting the importance of diversifying ad products. Publishers' investments in programmatic ads, event sponsorships, and direct-sold ads reflect a strategic effort to create new revenue streams and meet the varied needs of advertisers.

The State of Cookie Deprecation Webinar

Join the Prebid Webinar on March 5th, 2024, at 11:00 AM EST, discussing the topic of the year: A Cookieless Future.

Be a part of the conversation as Jeffrey Wieland, Matthew Whaley, David Dabbs, and Patrick McCann provide valuable insights and delve into an update on the current state of cookie deprecation with global, buy-side, and publisher perspectives. Plus, don't miss out on hearing from IAB Tech Lab special guests Hillary Slattery and Miguel Morales.

2024 State of Readiness Report on Sustainability in Digital Advertising

Discover the advancements in sustainable digital advertising with the 2024 State of Readiness Report by IAB Europe's Sustainability Standards Committee. Now in its second year, this report gathers insights from 186 responses across 29 European markets, offering a detailed overview of the digital advertising industry's progress towards sustainability.

▸ Week 6

• - IAB Tech Lab: Privacy Sandbox threatens real-time bidding
• - Criteo profits rise, but challenges ahead
• - Advertising in 2024: Stability amid transformation
• - Amazon collaborates with publishers in post-cookie era
• - MFA concerns diminish, but challenges persist
• - Sports streaming service reshapes TV market dynamics
  
• - IAB Europe releases 2024 Quality Guide update
  

IAB Tech Lab Says The Chrome Privacy Sandbox Is A Time Bomb That Will Break Real-Time Bidding

According to IAB Tech Lab's analysis, the online advertising industry faces challenges with Google Chrome's Privacy Sandbox. Few of the forty-four use cases studied remain viable with the new APIs, hindering real-time bidding. Despite efforts to introduce privacy-centric features, concerns persist over their impact on advertising practices.

The Tech Lab's report prompts critical questions about the future of digital advertising and calls for collaboration to address industry-wide concerns. The Tech Lab collects feedback on its Privacy Sandbox report and gap analysis during a 45-day public comment period that ends on March 22.

Criteo Profits Bounce Back, But There’s A Tough Year Ahead

Criteo has reported strong profit growth and strategic partnerships, marking a turnaround from its previous focus. The company's revenue and stock value have increased, strengthening its market position. Criteo is preparing for a cookieless future by developing new targeting methods despite challenges such as anticipated losses due to changes in Chrome. 

Stability with transformation’: Insights into the turbulent landscape of 2024 advertising

The beginning of 2024 has been busy and uncertain. Ad spending remains strong, although the growth rate is slowing down. Advertisers are responding strategically and continue to invest. Publishers are cautiously optimistic and focus on events, research, and video to boost direct ad sales. Advertisers and platforms grapple with cookie phase-out and staff cuts. The market sees an uptick in mergers & acquisitions.

Publishers assess Amazon’s role in their post-cookie ad businesses

Amazon is expanding its collaboration with publishers by offering the opportunity to combine their contextual data with Amazon's purchase data, improving ad targeting amidst the decline of third-party cookies. Dotdash Meredith and Reach plc are examples of companies testing this cooperation. This strategy mainly benefits publishers who have already collected first-party data.

Amazon's actions in the online advertising market, including its partnership with The Trade Desk and the introduction of the Amazon Publisher Cloud, underscore its efforts to strengthen its position in the advertising landscape in a cookieless future.

Buyers say the MFA panic is over – but not forgotten

Advertising experts now see MFA sites as a less urgent problem for 2024, with a priority level 4/10. Measures such as inclusive lists have increased confidence in ad safety. While AI-generated content challenges the avoidance of MFA sites, the industry continuously develops protective measures. Other challenges, like the end of third-party cookies, are now taking precedence. 

New sports streaming service will upset the balance of power in TV, media buyers say

Fox, Warner Bros. Discovery, and Disney announced a joint venture to launch a "skinny bundle" for sports content this fall, shaking up traditional TV amidst economic challenges and Netflix acquiring WWE rights. The move, seen as a response to digital giants like Apple and Amazon entering the sports rights arena, aims to consolidate sports streaming, offering an alternative amidst the third-party cookie's demise.

Still unnamed and unpriced, the venture represents a strategic shift to protect and expand legacy media's reach in a streaming-dominated market, potentially doubling the NBA's current $24 billion rights deal. This development signals a re-bundling era in sports broadcasting, challenging traditional models and consumer expectations in the evolving media landscape. 

IAB Europe's Updated Guide to Quality 2024

IAB Europe introduces its 2024 Updated Quality Guide, designed to improve transparency and accountability in the digital advertising ecosystem. The guide offers insights and best practices across key areas, including Ad Fraud, Brand Safety, Creative Execution & User Experience & Viewability. Download the guide to gain deeper insights.

▸ Week 5

• - IAB Tech Lab addresses Privacy Sandbox gaps with Google
• - Publishers voice concerns over Protected Audiences API
• - UK publishers face challenges with 'reject all' cookie options
• - Publishers focus on user logins as third-party cookies decline
• - 90% of US publishers lag in data compliance
• - Premion acquires Octillion to boost local CTV advertising
• - IAS report highlights brand safety priorities in the UK
  

 IAB Tech Lab presents Google with Privacy Sandbox gap analysis following Annual Leadership Meeting

IAB Tech Lab and Google have discussed the capabilities and limitations of the Privacy Sandbox. IAB Tech Lab conducted a gap analysis, which found that Privacy Sandbox does not cover all necessary use cases, such as ad placement guarantees and reporting deficiencies. The analysis covers over 40 marketing use cases, with approximately 30 not currently supported by Privacy Sandbox.

The slow implementation of Privacy Sandbox APIs poses challenges for ad tech companies in allocating their resources. The meeting aimed to address these gaps and further develop Privacy Sandbox proposals to meet industry needs. The hope is that future iterations will address these issues. 

‘Pretty hacky’: Decoding publishers’ concerns over Google’s Privacy Sandbox’s Protected Audiences API

Publishers are concerned about the disappearance of third-party cookies in Chrome and the limitations of the Privacy Sandbox. They are particularly focused on the Protected Audiences API, which is essential for cookieless retargeting. However, the API lacks transparency and reporting, causing issues for publishers. Even those who have tested the Privacy Sandbox still have concerns due to the lack of necessary data and reports.

Collaboration with ad tech vendors is necessary, but the restrictions of the Privacy Sandbox complicate matters. Publishers hope for improvements in the functionality and reporting of the Privacy Sandbox to better understand its impact on their business. For now, the situation appears to be unchanged, and publishers must adapt while awaiting changes. 

U.K. publishers and the ICO still grapple with offering a ‘reject all’ cookies option amid revenue concerns

In November, the UK's Information Commissioner's Office (ICO) alerted leading publishers about non-compliant cookie consent pop-ups, insisting on a "reject all" option to conform with privacy regulations. This adjustment presents financial challenges for publishers, with trials indicating potential consent reductions of up to 50%. The ICO is advocating for compliance, whilst publishers investigate alternative revenue methods.

Despite obstacles, there's an effort towards educating on the effects of cookies and negotiating for compliance deadlines, highlighting a compromise between privacy and financial sustainability. 

How publishers are trying to get people to log in to their sites

Publishers in 2024 prioritize audience authentication, leveraging unique identifiers such as IP addresses and device IDs due to the diminishing reliance on third-party cookies. Employing single-step logins via major platforms is a strategic move to enhance user engagement and retention, addressing the crucial balance between seamless user experience and effective user identification. 

The challenge for publishers lies in navigating technological constraints and privacy regulations while maximizing the value of authenticated sessions. This approach underscores the importance of innovative authentication methods that maintain user privacy and trust, presenting a valuable insight into adapting to the evolving digital landscape. 

90% of U.S. Publishers Are Dropping the Ball on Data Compliance

Recent research by Compliant reveals a concerning trend among U.S. publishers, as many neglect consumer data protection, posing a risk to consumer trust. European publishers follow robust data privacy standards, U.S. publishers lag behind, with only 20% having a Consent Management Platform (CMP). Urgent steps are needed to align with data compliance standards and protect consumer data and advertisers' reputations. 

Premion Buys CTV-Focused DSP Octillion

TEGNA-owned CTV advertising platform Premion has acquired Octillion Media, focused on local CTV advertisers. The acquisition brings DSP technology in-house for Premion, improving access to CTV inventory and control over media buying, and expands its offerings with new tools and clients. This strategic move strengthens Premion's position in the local CTV advertising market. 

IAS The State of Brand Safety in the UK

Brand safety is a global priority for marketers. Amid a dynamic media landscape and content growth, they invest in safeguarding their brand and prioritizing brand-friendly content. Integral Ad Science's study explores UK consumers' views on brand-safe content and its impact on brand perception. Download the report to learn more.

▸ Week 4

• - Buyers struggle to test Privacy Sandbox APIs in DV360
• - Advertisers hesitant to prioritise alternative IDs
• - Amazon Prime Video introduces ad-supported streaming options
• - Index Exchange bets on curated deals with Index Marketplaces
• - Google acknowledges Incognito Mode privacy limitations
• - Retail media revolution reshapes marketing in 2024
• - IAB Europe submits GDPR insights to the European Commission
  

Buyers Can't Test Privacy Sandbox APIs in Google's Ad Platform DV360

Google's DV360 lacks a user interface for buyers to test the Privacy Sandbox, creating challenges in adopting its cookie alternative. This shortfall in direct testing capabilities and vague communication from Google is highlighted by two buyers, as reported by Adweek. The issue aligns with Google's broader plan to phase out cookies, dependent on regulatory approval.

Despite grants for testing Privacy Sandbox, DV360's difficulties signify a complex transition in digital advertising, with industry experts questioning the tool's effectiveness. 

Ad buyers say it’s still too early to pick which alternative IDs to prioritize

According to industry experts, publishers are exploring various alternative identifiers to replace third-party cookies, but it's too early to determine a clear frontrunner. While some identifiers like LiveRamp's RampID are gaining popularity in specific markets like the U.S., global adoption and scale are necessary before any solution is prioritised agency-wide.

Advertisers also take a holistic approach, combining publisher first-party cookie solutions with authenticated /deterministic IDs, recognising that these identifiers complement rather than replace other data sources. The consolidation of alternative IDs on the buy side will likely occur once universal adoption is established.

Prime Video’s pitch deck includes fixed CPMs and precision targeting in Amazon’s bid to advertisers

Amazon is launching an ad-supported streaming tier for Prime Video on January 29th, offering advertisers three options: Preferred Deal, Guaranteed Buy, and Premium Sponsorships. Preferred Deal is the most cost-effective option, while the other two models provide more complex targeting and exclusive program sponsorships.

This new advertising model represents a significant shift in the streaming market, combining premium content with targeted advertising, and has the potential to challenge competitors like Netflix in the ad-supported sector. 

As The Open Web Wobbles, Index Exchange Is Betting On Curated Deals

Index Exchange is introducing Index Marketplaces to streamline ad curation. This new approach combines marketer and publisher data within curated private marketplaces (PMPs), bypassing the need for extensive new integrations. Index Exchange's strategy aims to offer more targeted, cost-effective advertising solutions, leveraging its existing network and infrastructure. 

Google Admits That Chrome’s Incognito Mode Doesn’t Truly Camouflage Users Data

Google updated Chrome's Incognito Mode warning amidst a $5 billion lawsuit alleging user tracking without clear consent. This change addresses the lawsuit's claim of Google tracking Incognito Mode activity. The update highlights a privacy paradox: while Google pushes for privacy improvements like deprecating third-party cookies, its practices are under scrutiny. The situation raises doubts about Google's role as a privacy advocate in the tech world.

It’s 2024, The Retail Media Revolution Is Here

In 2024, data will drive the retail media revolution, shaping personalised experiences and marketing strategies. As the industry adapts to a cookieless world and the rise of marketplaces, it's reimagining in-store experiences and embracing AI for predictive shopping. Data clean rooms reshape privacy-focused strategies, marking a transformative leap in the retail media landscape, merging digital and physical realms for a more personalised universe. 

IAB Europe Submits Observations to the European Commission's GDPR Multistakeholder Expert Group Questionnaire for the 2024 Report

IAB Europe has submitted its observations to the European Commission on the application of GDPR, emphasising the need for more consistent enforcement of data protection laws and an increased understanding of GDPR. They propose aligning national regulations and harmonising procedures across member states and providing additional guidance to clarify GDPR concepts. 

IAB Europe also highlights the importance of enhancing the operation of Data Protection Authorities (DPAs) and advocates for better integration of GDPR with other laws like the AI Act.

▸ Week 3

• - Global ad spending to grow nearly 10% in 2024
• - Cookieless Chrome ads show mixed early results
• - Bid duplication threatens programmatic advertising
• - LiveRamp acquires Habu to strengthen data collaboration
• - Publishers test Privacy Sandbox APIs amid cookie deprecation
• - IAB Europe responds to EDPB's draft ePrivacy guidelines
• - IAB Europe raises concerns over GDPR procedural regulation draft
  

Worldwide ad spending growth will accelerate across the board in 2024

In 2024, digital, traditional, and total media advertising expenditures will grow faster globally than in 2023 by nearly 10%. Digital advertising will thrive, accounting for almost 70% of worldwide advertising expenditures.

Traditional media advertising spending will also recover, partly due to major sporting events and political advertising. Advertising spending will grow globally, with some regions experiencing slower growth. 

Tests Of Cookieless Chrome Ads Are Encouraging, But Don’t Get Too Excited

Google began phasing out third-party cookies for 1% of Chrome users two weeks ago, but it's too early to draw definitive conclusions about its impact on advertising. Early results from Raptive showed a 30% drop in CPMs for cookieless audiences compared to those with cookies, but this may change as more users are affected. The industry consensus is that early results are not indicative of long-term trends.

Attack Of The Clones: Programmatic’s Hidden Scourge Of Bid Duplication

Bid duplication is plaguing programmatic auctions, threatening the entire system. This issue creates multiple copies of bid opportunities, leading to inefficiencies and making it difficult for demand-side platforms (DSPs) to scale campaigns. DSPs have attempted to combat bid duplication using traffic shaping, but this has not fully resolved the problem and can result in valuable bid requests being discarded.

Addressing bid duplication requires industry-wide coordination, algorithm changes, and policy adjustments to ensure the efficiency and sustainability of programmatic advertising. 

LiveRamp Acquires Habu, As Walled Gardens Put The Squeeze On Indie Data Collaboration Tech

US technology company LiveRamp has announced its intention to acquire Habu for $200 million. Habu specializes in processing clean data on various cloud platforms, including Google's Ads Data Hub and Amazon Marketing Cloud. On the other hand, LiveRamp provides a large commercial identity graph and enables offline data onboarding into the digital marketing ecosystem.

While the data clean room category is small, it is competitive, and this acquisition will help both companies compete more effectively against major players like Google and Amazon. 

The Privacy Sandbox proposals publishers are prioritizing in early tests 

Google is deprecating third-party cookies in Chrome, starting with 1% of its audience this month. This move allows advertisers and media professionals to explore the Privacy Sandbox as a replacement for individual tracking. Publishers are prioritizing the experimentation of proposals within the Privacy Sandbox, focusing on the Protected Audience API and Topics API.

However, concerns about the impact of cookieless advertising on revenue persist. Despite potential challenges, publishers see Privacy Sandbox experimentation as crucial in the face of impending cookie deprecation, as they continue to rely on Google for a significant portion of their revenue. 

IAB Europe Responds to the EDPB Public Consultation on their Draft Guidelines 2/2023

IAB Europe and national trade associations representing thousands of digital marketing and advertising companies have responded to the EDPB's public consultation on draft guidelines related to the ePrivacy Directive. While they support clarifying requirements for new technologies and ensuring data protection, they have reservations about the current draft. They believe it may lead to discrepancies in interpretation, particularly regarding applying the ePrivacy Directive to existing technologies. They recommend revisions to align the guidelines with EU principles and address practical concerns.

IAB Europe Expresses Strong Concerns on The European Parliament’s Draft Report on GDPR Procedural Regulation 

IAB Europe has communicated strong concerns to Members of the European Parliament (MEPs) regarding the draft report on the GDPR procedural regulation by the Civil Liberties, Justice and Home Affairs (LIBE) Committee.

If implemented in its current form, the draft report falls short of the initial ambitions to harmonise procedural rules, which could hinder a consistent and fair GDPR cross-border complaints process.