In this week’s Week in Review: Verizon revised deal discounts Yahoo acquisition, Snap Inc sets valuation, TV ad duration and distribution under EU review. To receive a weekly summary of industry news and other VAN interviews and videos, sign up to the weekly Video Round-Up.
The Trade Desk Passes $1 Billion in Gross Spend
The Trade Desk surpassed $1 billion in gross spend and grew revenue by 78 percent to more than $200 million, whilst generating $75 million of net cash from operating activities and completed a successful IPO.
- Native spend grew over 700% from Q32016 to Q42016
- Mobile In-App grew over 400% from Q42015 to Q42016
- Mobile video grew nearly 300% from 2015 to 2016
- Connected TV grew over 100% from Q32016 to Q42016
Snap Inc Sets Valuation at $19.5 to $22.2 Billion as IPO Approaches
The valuation range for Snap Inc’s initial public offering, which equates to $14 to $16 a share, is near the low end of the $20 billion to $25 billion range the Snapchat parent company had earlier targeted. However, if it achieves the lower valuation it would be the largest US-listed tech offering since Alibaba Group Holding Ltd’s IPO in 2014.
TV Ad Duration and Distribution Under EU Review
An European Commission project is pushing for greater liberalisation of pan-European TV advertising, French business newspaper Les Echos reports. The EC project proposes replacing the limit of 12 minutes of advertising per hour with a limit of 20 percent of broadcasting time between seven and eleven pm. According to the study this could increase broadcasters’ revenues by between two and 15 per cent.
The Week in TV
Time Warner Shareholders Approve AT&T Merger
Time Warner shareholders have voted to adopt the merger agreement between AT&T and Time Warner, with 78 per cent of the outstanding shares of common stock voting in favour; and of the shares voted, 99 per cent were cast in favour of the proposal.
Barcroft Media Launching its TV Channel on Roku Streaming Devices
Independent factual content production and distribution company Barcroft Media is launching its Barcroft TV channel on Roku streaming devices. Digital TV Europe reports.
Qantas Launches in-flight BYOD: With Foxtel, Netflix and Spotify
Qantas customers on WiFi enabled domestic flights will be able to access content with Foxtel, Netflix and Spotify from February 2017. The paid subcription services will offer free access to Qantas customers on and off the aircraft for between three days and one month after their Qantas flight. Advanced Television reports.
Australian Kids Spend More Time Online than Watching TV
Australian kids now spend more time using the Internet than watching television, Roy Morgan’s Young Australians Survey shows – but TV still dominates at-home entertainment consumption. In 2016 internet use has overtaken watching television as the more time-consuming media among Australian kids. However, when not including the hours spent online while at school or out and about, TV remains the more popular medium at home.
Amazon Prime Revenue Hits $5.2bn with 65m Subscribers
Amazon has revealed that the Amazon Prime subscription service generated $6.4bn (£5.2bn) over the past year. Though this figure puts it behind Amazon’s retail and web services divisions in 2016 which raked in $91.4bn and $12.2bn respectively, the growth has seen it reach 65 million members globally following the well publicised launch of the Grand Tour.
TV Dominates Auto Advertising Spend in Germany
44 per cent of automotive industry ad spending in Germany in the first half of 2016 was devoted to TV, Arbeitsgemeinschaft Online Forschung (AGOF) reports. AGOF also found that 15 per cent of German auto industry ad spending went to digital efforts, and only two per cent of auto industry ad spending went to mobile.
The Week in Publishing
Facebook Launches Auto-play Sound Feature and Set Top Box App
Videos on Facebook will now automatically play with sound on, said the social network in a recent blog post. The Social Network will have video sound fading in and out as you scroll through videos in News Feed.
Facebook is also launching an app for set-top boxes to allow users to watch videos on its site on a TV. In a blog post, Facebook confirms the app will initially be available on Apple TV, Amazon Fire TV and Samsung Smart TVs.
International Growth Fails to Offset Decline in US Ad Revenue at Twitter
Twitter generated $638m in ad revenue in the fourth quarter of 2016, down from $641m last year. The social network reported $440m in US ad revenue during the period, down seven per cent. International ad revenue grew eleven per cent to $256m, according to Campaign. Mobile advertising made up 89 per cent of total ad revenue.
Twitter Adds Periscope’s Live Videos to its Top Trends
Twitter has announced that the apps “Explore” section will feature live videos sourced from Periscope within its “Top Trends”. The move will further integrate Twitter’s standalone live streaming app into its main platform.
Thomson Reuters Freezes Ads as Other Brands Review ‘Terror Funding’ Spot
Sandals Resorts and Marie Curie have joined Jaguar Land Rover in withdrawing online ad campaigns following the revelation that they have been unwittingly funding terror organisations.
More Than Half of Snapchat Users Open and Watch Branded Content
Over 50 per cent of Snapchat users will open a brand’s story and over 85 percent will then watch it in its entirety, according to a report from Snaplytics. This suggests that Snapchat’s users are very willing to engage with advertisers.
MailOnline Guarantees Brands ‘One Million Views’ for Each Video in New Sponsored Player
MailOnline has launched a sponsored video player that will sit within its sidebar feed, and is guaranteeing brands one million views for each video. The slot, called Branded Video, will only be available via direct sell, although programmatic has not been ruled out, the publisher said.
Downloads are Obsolete Metrics, Marketers Told
Mobile-marketers should prioritise quality over quantity, and refine performance metrics to reflect this, according to a trend report from Light Reaction. The report argues that marketers should pursue conversions over quantity of leads, and focus on metrics such as ‘engagement ratio’, ‘ROI’ and ‘ARPU’ (average revenue per user).
Half of UK Internet Users Will Be Gaming by 2019
By 2019 half of all Internet users will be playing games digitally at least once a month, according to eMarketer. Smartphone and tablet adoption has helped bring new gaming audiences to the fore, including women and older adults. Gaming, bolstered by social networking, is linked to greater levels of engagement across all age and gender lines.
Location-based Mobile Video Ads Was the Top Mobile Trend in 2016
The percentage of ads served with Location-Based Targeting jumped from five per cent in Q2 to 17 per cent in Q4, according to Positive Mobile. This trend is supported by research from BIA/Kelsey which predicts that spending on locally-targeted video will increase from five billion dollars in 2016 to $37.6 billion in 2021.
Mobile Ad Traffic Data Shows 133 Per Cent Increase in Video Ad Requests
Mobile ad traffic data has increased by 133 per cent in video ad requests, according to Inneractive. The company’s 2016 data also shows a rise in eCPM for ad requests that included GPS data; an 81 per cent growth in banner ad eCPM; and a five-fold increase in programmatic private deals between April and December 2016, while revenue from private deals grew by 13 times as publishers shift more inventory to mobile.
The Week in Ad Tech
Verizon Revised Deal Discounts Yahoo Acquisition by $300m as Company Reveals Fresh Data Breach
Verizon’s acquisition of Yahoo is reported to be going ahead, but to have dropped in value by $300m. The deal was originally set to be $4.8bn but two historic data breaches, which were revealed in 2016 have forced Yahoo to accept a renegotiation, according to Reuters.
The deal is yet to be finalised, though an announcement is expected in February. The deal is now likely to be worth around £4.6bn. Verizon and the Yahoo spin-off are expected to share the ongoing legal burden of the data breaches, as reports surfaced of another data breach at Yahoo.
Teads Announces $200 Million Revenue, Driven by Mobile and Programmatic
Teads has reported a revenue of $200 million. The company attributes 2016 growth largely to mobile and programmatic. Teads’ reports its reach has grown to 1.2 billion monthly unique visitors, including 720 million on mobile.
New Free Service Launches to Track Competitors’ TV Ad Campaigns
TVTY has launched ‘TV Ad Alert’, which alerts advertisers when competitors’ new TV advertising creative is aired. The free service allows users monitor multiple brands, it is currently tracking ad spots across France, Germany, Italy, Spain, Turkey, UK and US.
The Week for Agencies
Kitcatt Nohr Founders Launch £8.5m High Court Case Against Publicis Groupe
The founders of Kitcatt Nohr Alexander Shaw, the independent UK agency that sold to Publicis in 2011, are suing Publicis Groupe for up to £8.5m, Campaign reports. The acquisition on which the case is being contested was structured around an earn-out tied to the future performance of KNAS, meaning the case has implications for earn-out deals across the industry.
Publicis.Sapient Launches The Community in London
Publicis.Sapient’s creative agency The Community is launching in the UK. The Community will be led by SapientRazorfish executive creative director Mark Hunter. The Community will also soon add a New York office to its existing shops in Miami and Buenos Aires. Campaign reports.
Partnerships of the Week
Proximus Selects Neustar as Marketing Analytics Partner
Neustar has been engaged by Proximus to provide information services around their marketing campaign planning and management.
Artel Video Systems Joins the Alliance for IP Media Solutions
Artel Video Systems will participate in the Alliance for IP Media Solutions (AIMS). AIMS represents the interests of broadcast and media companies as well as technology suppliers aiming to facilitate the industry’s transition from SDI to IP through industry standards and tech solutions.
Hires of the Week
Telegraph Media Group Appoints Dora Mitchell
Telegraph Media Group has appointed Yahoo’s Dora Michail as its first managing director of digital.
This Week on VAN
Why the IAB’s New Portfolio Could Be the Change Video Needs, read more on VAN
Programmatic TV will Open Up a Discussion About TV Advertising’s Real Value, read more on VAN
Standalone VR Devices will Drive Market with Compelling Content, read more on VAN
Facebook Introduces New Video Ad Options and Will Allow the MRC to Audit its Metrics, read more on VAN
Ad of the Week: National Almond Day, Silk, Fallon
What kind of man has had a web domain registered since 1995? Gary Almond, former tech entrepreneur turned business consultant gets a nice surprise from almond milk manufacturer, Silk in this heartwarming video.