What happened in Ad Tech?

Weekly relevant news highlights for Digital Publishers.

Week 37

 

- DOJ accuses Google of taking power from publishers
- Google Ads will now use a Trusted Execution Environment
- Time spent with commercial media has risen since the pandemic
- The mystery of PubMatic’s $5M loss from auction switch
- Programmatic ads, affiliates, and subscriptions drive growth
- Google’s ad tech impact on publishers in DOJ trial



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 Targets Google's Ad Tech for UK Market Support
- New Privacy Taxonomy by Tech Lab
- Browser Cookie Controls Match User Preferences
- Summer 2024 Publisher Activities
- AppsFlyer and Unity Address Android Privacy
- $397 Billion Ad Spend Forecast for 2024
- IAB and MRC Set to Enhance Attention Metrics
- Prebid's Digital Out-of-Home Webinar



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.