In this week’s Week in Review: Marissa Meyer knew of Yahoo hack in July, Advertisers call for independent evaluation following Facebook video metric debacle and News Corp takes a $10m stake in AppNexus. To receive a weekly summary of industry news and other VAN interviews and videos, sign up to the weekly Video Round-Up.
New Video Frontiers to Showcase the Industry’s Leading Innovators
Whilst New Video Frontiers has always been a forward-looking event, the surge in video innovation over the last year will make this year’s event one of the most interesting and exciting yet, featuring everything from outstream, VR and 360 right through to live native video marketing. We’ll also be focusing on some of the biggest issues of the day, including:
- Facebook’s role in the publisher ecosystem.
- The rise of visual search.
- How to thrive in the new TV ecosystem.
- Who spends what and where in video advertising?
- Creating new advertising models for VR and AR.
- Imagining the agency of the future.
- Video advertising in China.
- A debate on the need for precision-marketing in TV advertising.
- Trinity Mirror’s success story as a programmatic publisher.
Marissa Meyer Knew of Yahoo Hack in July
Marissa Mayer has known since July that Yahoo was investigating allegations of a serious data breach, according to the FT. The allegations raise serious questions about whether the internet chief withheld information from investors, regulators and its acquirer Verizon until this week. Yahoo has not disclosed exactly when it discovered the theft, which took place in 2014, which ranks as the largest known data breach in history.
Verizon, which agreed a $4.8bn bid for Yahoo’s core business in July, said it had been informed as recently as this Tuesday, ten days after a September 9 regulatory filing to the US Securities and Exchange Commission in which Yahoo said it had no knowledge of “any incidents” of “security breaches, unauthorised access or unauthorised use” of its IT systems.
“Marissa was aware absolutely — she was aware and involved when Peace surfaced this allegation in July,” the person briefed on Yahoo’s discussions said. Ms Mayer’s knowledge of events suggests that the SEC could intervene, lawyers and former officials said.
Advertisers Call for Independent Evaluation Following Facebook Video Metric Debacle
Advertisers have called for media owners like Facebook and Google to allow independent evaluation of their audience measurement after Facebook admitted to a miscalculation which resulted in an overstatement of one its video metrics. WPP chief executive officer Martin Sorrell told Bloomberg that Facebook’s miscalculation increases the need for an independent body like comScore to play a bigger role in overseeing important metrics.
The news comes in the same week Facebook’s vice president of global marketing solutions Carolyn Everson apologised to Advertising Week attendees and said that “Facebook will and needs to do better”.
News Corp Takes $10m Stake in AppNexus as Part of $31m Funding Round
Following last week’s $1bn IPO from adtech outfit The Trade Desk, AppNexus has closed a $31m round of funding and announced News Corp amongst its major investors. The investment in AppNexus follows News Corp’s acquisition of Unruly in September 2015. As part of the partnership, AppNexus’ full suite of technology products are being made available to News Corp’s media brands, several of which already employ the AppNexus SSP and Yieldex Analytics, including Dow Jones, News UK, and News Corp Australia. The announcement also augments AppNexus’ existing relationship with Unruly.
UK Digital Ad Spend Will Continue Double-Digit Growth in 2016
Strong demand for digital advertising will help the UK’s advertising marketto grow by 12 per cent this year, according to eMarketer. That compares to 31.1 per cent growth in net digital ad revenues at Facebook, 13.9 per cent growth at Google and 13.2 per cent growth at Twitter. The growth at Google is is more than double what eMarketer predicted back in February, thanks to stronger-than-expected mobile ad revenues. The search giant will net £3.80 billion in ad revenues, accounting for almost 40 per cent of all digital ad spending in the UK.
JP Morgan Pauses Ad Buying
JP Morgan has paused its $250m annual ad-buying account in the face of alleged widespread undisclosed rebates from media suppliers. The decision was made in response to a K2 Intelligence report created for the Association of National Advertisers that found “substantial evidence of non-transparent business practices in the US market in the form of rebates”. Chief marketing officer Kristin Lemkau has reportedly launched an audit into the bank’s media buying agency this week.
UK Media Minister Promises Brexit Support for TV
UK Minister for Digital and Culture Matt Hancock has declared TV to have been one of the UK’s greatest success stories and vowed to support the industry as it addresses a number of challenges, in particular the UK’s withdrawal from the EU.
Virgin Media Launches New Ad Sales Agency
Virgin Media has launched Virgin Media Solutions – a new advertising sales house for the UK and Irish markets. The company will be the sales agency for all TV3 Group channels in Ireland including TV3 and 3e. It will also represent all advertising sales for Virgin Media including Video on Demand and Virgin Media’s public WiFi services. David Bouchier, Chief Digital Entertainment Officer at Virgin Media, said that the media company was: “looking forward to developing our advertising capabilities even further in the near future.”
YouTube Extends Brand Lift to TV
Google has used Advertising Week to announce a host of advertising services that help marketers understand how online ads drive offline behaviours, and make some bold claims, including how YouTube ads drive double the amount of searches compared to TV executions. Google vice president of display and video advertising Brad Bender made the announcements earlier in a blog post. The company is extending the capabilities of Brand Lift to TV campaigns to show marketers how TV ads increase Google and YouTube searches for your brand compared to just YouTube campaigns. They’re also moving to a ‘sign in’ rather than cookie model of user tracking.
Snapchat Rebrands to Snap Inc, to Reflect Camera Company Aspirations
Snapchat has rebranded to ‘Snap Inc.’ to reflect “its new direction as a camera company” and released a pair of video recording glasses, known as ‘Spectacles’. This is the company’s first foray into hardware, and it has reportedly been testing early versions of the gadget, since early 2015, with a view to selling a limited number of Spectacles this fall.
IAB Promotes New Ad Formats
The Internet Advertising Bureau UK is promoting a new portfolio of online ad formats to improve the online experience and reduce ad blocking. The IAB’s current portfolio of 33 different ad formats will reduce dramatically and will only comprise those which are: flexible, using responsive design to automatically resize to best fit whatever device they’ll be served on and compliant with the LEAN principles (Light file size, Encrypted, Ad Choices-enabled and Non-invasive).
Disney, Google and Salesforce Eye Twitter Takeover
Walt Disney Co. is working with a financial adviser to evaluate a possible bid for Twitter Inc., according to TechCrunch and they may have competition from Google and Salesforce, according to the FT. The social media group are reported to be working with Goldman Sachs to explore a sale. All parties have so far delivered to comment.
Live Viewing Losses Slowing, VR Performs Well in Recall Testing
The amount of time spent watching live TV dropped in the second quarter of 2016 but the erosion is slowing, says Nielsen. According to its Q2 Total Audience Report, consumption habits in the US continue to change but live viewing remains dominant and changes appear to be moderating except when it comes to mobile viewing, which is still expanding.
VR also performs well. According to the Nielsen study, people watching virtual reality videos recalled the brands mentioned 28 times more than in traditional commercials. Recall of 360 degree content in general was eight times higher, and consumers were three times as likely to buy after seeing an ad in the VR format.
Instagram Doubles Advertisers in Six Months
Instagram has doubled the number of advertisers on its app in six months, despite strong competition from rivals Snapchat and Pinterest. Instagram now has 500,000 advertisers, a year after it opened up advertising in more than 200 countries. The top five countries in advertiser-adoption order are the US, Brazil, the UK, Australia and Canada.
One in Four ‘Actively Ignoring’ Ads on Social Media
Despite a surge in use in Snapchat and Instagram alongside Facebook’s longer established popularity, over a quarter of respondents to Kantar TNS’ Connected Life study said they ignore social posts or ads from brands on social. Plus, over a third feel “constantly followed” by online advertising. Scepticism appears to be highest in Scandinavian countries, with 57 per cent saying they actively ignore content from brands, whereas over a half of Poles employ ad blocking.
Vibrant Media Calls for Key ‘Attention’ Metric
In a move designed to call for “attention” as the key metric for assessing advertising effectiveness, Vibrant Media has enabled brands and media agencies to access data on attention and engagement levels for all of the digital ad formats and campaigns they’re running. Advertisers can compare their campaign’s performance across Vibrant Media’s formats, their competitors in their own sector and the digital industry as a whole.
Facebook Ordered to Stop Cashing in on Personal Data in Germany
Regulators have banned Facebook from collecting data on WhatsApp users in Germany in a landmark ruling against the social media giant’s mass harvesting of personal information to drive advertising revenues. Privacy campaigners said that the ruling, which protects the data of 35 million German users, puts pressure on Britain’s information commissioner to follow suit. Lawyers agreed that the same legal principles applied in the UK, although Facebook denied that it had broken any laws and said it would appeal against the decision.
VideoAmp Guarantees 80 Per Cent Viewability
VideoAmp has announced that it is able to achieve viewability rates of 80 per cent and better through the optimisation capabilities within its software console developed in partnership with Integral Ad Science (IAS). VideoAmp’s Chief Business Officer Jay Prasad also made the guaranteed that VideoAmp will not charge for any impression that is beneath 80 per cent.
Enterprise Augmented Reality App Revenues to Approach Six Billion By 2021
A new Juniper Research study has found that consumer app revenues from AR will remain below that of the enterprise sector through to 2021, despite the high visibility of games such as Pokémon GO. Juniper forecasts that revenues from enterprise AR apps will reach $5.7 billion by 2021, rising ten fold from an estimated $515 million in 2016.
The research found that enterprise interest in AR technologies has continued to grow, fuelled by improvements in field of vision and latency on HMDs (Head Mounted Displays). Future releases of these units, such as Microsoft HoloLens, are set to drive AR content revenues in the enterprise sector as businesses opt for HMDs over smartphones and tablets.
Newspapers Warn Over Threat of Google and Facebook Taking Advertising Revenues
National newspaper publishers have warned the government that news aggregators like Google and Facebook are threatening the UK’s democracy by taking their advertising revenue. The News Media Association (NMA) said in a letter to ministers that it is becoming “increasingly difficult” to fund quality journalism, with advertising revenues at news organisations plummeting. It said this money is being diverted to internet companies, and also attached blame to services blocking adverts on internet pages.
Ad Placement, Not Size, is Key for Increased Viewability
Ad placement, rather than size is the key factor in increasing viewability according to Integral Ad Science H1 2016 Media Quality Report. The report highlights ad fraud, brand safety, and viewability trends for programmatic and direct advertising across multiple platforms. Skyscraper ads (160x600px) were found to be the ad format with highest viewability, followed by double MPUs (300x600px) with 61.2 per cent in view, and billboard ads (970x250px).
Four Fifths of UK Publishers Anticipate Positive Growth in the Next 12 Months
More than half of UK publishers reported positive growth this quarter and are optimistic for the year ahead compared to Q2 2015 according to Digital Publishers Revenue Index (DPRI) from AOP and Deloitte. In contrast, UK business leaders are less optimistic, with the report showing a decline in optimism amongst this group post Brexit. Even so, four-fifths of respondents are expecting positive growth over the next 12 months, with more than half reporting positive revenue growth compared to Q2 2015. Online video, which has increased by 117 per cent compared to Q2 2015, is the fastest growing ad category in Q2 2016.
Shipments of VR Bundles and Phones to Soar in Q4
The penetration rate of VR-enabled smartphones and tablets, as well as shipments of VR devices bundled with gaming consoles or PCs will continue to soar in the fourth quarter of 2016, according to Digitimes Research. Among these devices, shipments of VR video-enabled smartphones and VR devices bundled with consoles will be higher compared to other devices.
Men More Likely than Women to Complain About Ads
The ASA Watchdog says men complain more about misleading campaigns, while women target harmful or offensive advertising. 56 per cent of the 25,647 complaints it received last year were from men, with women accounting for 41 per cent. Londoners are also the most likely to complain by region.
4C Gains Secures Funding and Senior Hires
4C has appointed three new senior hires and the completed of $26 million in Series C financing. The investment was led by Kayne Partners, the growth private equity group of Kayne Anderson Capital Advisors, L.P. 4C will channel these funds to deepen its market presence through geographic and product expansion.
Freewheel Urge Ad Length Adaption
Freewheel has identified different types of viewer which it says will help broadcasters adapt their pre-mid and post roll to drive user engagement as part of its “Video Monetization Report” for Q2 2016. The company has identified three primary types of viewer: “Samplers”, who’ll start watching a show but change their minds halfway through, “Catch-up viewers” who primarily watch shows they missed on linear and “Digital enthusiasts” who often choose to watch digital content and are willing to watch a number of shows on these platforms.
Partnerships of the Week:
Nielsen and Vision Critical Partner
Nielsen and Vision Critical, a cloud-based customer intelligence platform provider, have announced a strategic alliance. The first of several planned future offerings is the connection of Nielsen’s measurement data of what people watch and buy to insight communities powered by the Vision Critical platform.
Hires of the Week:
Yahoo Appoints James Attwater as Regional Agency Partner
Yahoo has appointed James Attwater in the new role of Regional Agency Partner to focus on growing Yahoo’s advertising business in key cities outside London. Attwater joins Yahoo from xAd.
YouTube Recuits Former Warner Music Group CEO To Lead Music Initiative
YouTube has appointed former Warner Music Group Chairman and CEO Lyor Cohen as its global head of music. The move shows how serious Google is about a streaming music service.
In a letter to YouTube employees, Reuters reports that Cohen wants to “help the music community ’embrace the technological shifts we’re seeing in music today so we can help take the confusion and distrust out of the equation’.”
This Week on VAN:
First Party Systems are Required to Balance the Goals of Sellers and Buyers says IPONWEB’s Golbere, read more on VAN
The Technology for Managing Cross-Screen TV Campaigns Simply isn’t There Yet says Xaxis’s Moore, read more on VAN
Programmatic TV Will Move Forward in Europe the Next 12 to 18 Months, with the UK Taking the Lead, read more on VAN
ProSieben’s Glomex Wants to Bring Premium Video to the Long Tail, read more on VAN
Ad of the Week: Ikea, My Son, Buzzman Paris
No matter how old we get, our parents will still see us as children. This beautiful ad reminds us of Ikea’s role in our own rights of passage.