The WiR: Google’s Ad Policy Overhaul Fails to Stop Big Brand Exodus, UK Advertisers Increasingly Moving Marketing Services In-House, Adobe Launches Advertising Cloud

In this week’s Week in Review: Google’s policy overhaul not enough to stop brands suspending YouTube advertising, Adobe launches Advertising Cloud as part of move to improve competitiveness and UK advertisers moving marketing services in house. To receive a weekly summary of industry news and other VAN interviews and videos, sign up to the weekly Video Round-Up.

Top Stories

Google’s Overhaul of Ad Policies not Enough to Stop Big Brands Suspending YouTube Advertising
Google has promised better control for advertisers in a three-tier overhaul of its advertising policies. However, its promise has not been enough to prevent AT&T, Verizon, and Johnson & Johnson from announcing that they too have stopped their ads from running on YouTube and other Google properties. The three companies, among the biggest advertisers in the United States, follow European advertisers including the British government, The Guardian, the pharmaceutical company GSK and the French advertising multinational Havas. More than 250 companies have stopped their UK advertising on YouTube since February, after finding that advertising spend was being used to place banner adverts over YouTube videos from groups such as Britain First, indirectly funding extremists.

UK Advertisers Increasingly Moving Marketing Services In-House
UK advertisers are following the lead from the US by building in-house and on-site expertise, according to research compiled by the ISBA. The survey shows that 62 per cent of UK advertisers are shifting towards stronger relationships with fewer suppliers as the move towards on-site and in-house agency services gains momentum. The trend is reportedly driven by a growing demand for transparency and more agile ways of working.

Adobe Launches Advertising Cloud as Part of Move to Improve Competitiveness
Adobe has launched its Advertising Cloud platform. The launch is part of a broader move to bring all of its cloud businesses under a single platform, the Experience Cloud, in an effort compete more directly with Salesforce, IBM and others. The ad cloud platform includes three components: Search, TubeMogul’s demand-side platform, and what Adobe calls “dynamic creative optimisation”, which lets marketers change and test what their ads look like, depending on their performance. It will operate in the Experience Cloud adjacent to Adobe’s Marketing Cloud stack, which includes campaign execution, social and A/B testing, and their Analytics Cloud, which consists of Adobe Audience Manager and Adobe Analytics.

The Week in Publishing

Compulsory Redundancies at The Guardian Amid Continued Losses
The owner of The Guardian and The Observer newspapers will make compulsory redundancies for the first time in its history in an attempt to stem financial losses. The newspaper’s proprietor, Guardian Media Group, has told its 1,500 staff that some of their jobs will be lost as part of its plans for the second year of its three-year turnaround plan.

Instagram Reaches One Million Advertisers
Instagram claims to now have more than one million active monthly advertisers, up from 200,000 this time last year. Instagram also announced that there are now eight million business profiles on the app, increasing approximately five times since September. Most business profiles are by firms in the US, Brazil, Indonesia, Russia and the UK.

Germany’s Ad Blocking Rate Continues to Decline
The delivery of ads in Germany was blocked on 17.4 per cent of desktop page impressions in Q4 2016, according to analysis from Online-Vermarkterkreis (OVK). The data shows a consecutive decline each quarter of 2016.

ANA Calls for “Walled Gardens” to Submit to Independent Audit
The US Association of National Advertisers has called on digital “walled garden” platforms, such as Amazon, Foursquare, Instagram, LinkedIn, Pinterest, Snapchat, and Twitter, to “allow independent audits” by industry audience ratings self-regulatory watchdog, the Media Rating Council (MRC). The ANA issued an advisory to the platforms following a member survey which reportedly found that 89 per cent of respondents favored independent audits by the MRC.

Periscope Producer API Opens Up Twitter for Live Video Streaming
Twitter has officially announced the launch of an additional tool for live video aimed at larger media publishers and broadcasters. Periscope Producer API, as it’s called, will allow professional publishers to connect their equipment to Twitter in order to stream live video directly to its network. The new API expands on Periscope Producer by allowing third-party applications to authenticate Periscope accounts, configure streams, start and stop broadcasts and publish live video to Twitter.

Channel 4 Study Claims Broadcaster VOD is 20 Per Cent Cheaper than Ads on YouTube
Channel 4 is calling on advertisers to challenge the value of social video ad spend. The broadcaster has released its own report that claims advertisers are paying more per minute for completed views on YouTube and Facebook despite the viewer being less inclined to watch them compared to broadcaster VOD. The study concluded that the true cost per thousand (or minute) for broadcaster VOD services such as All 4 is 20 per cent cheaper on YouTube and a third of the cost of Facebook.

Millennials Skip Video Ads Online, Ad-Block, and Find Mobile Ads Irrelevant
Young video viewers may be watching much more streaming video, but 80 per cent will skip online video advertising if allowed, according to research by Deloitte. Over 70 per cent of Millennials and younger Gen Z viewers reportedly find mobile ads to be “irrelevant”. Ad-blocking software is widely used amongst Millennials with a 45 per cent usage. 40 per cent of these respondents also using ad-blocking software on their smartphones.

Positive Consumer Reception for PlayStation VR, Though Nausea an Issue
Three months after the PlayStation VR’s release over 1,000 consumers have reviewed the product on Amazon and Best Buy’s US consumer websites, Strategy Analytics report. The device has enjoyed a largely positive consumer reception, though whilst ‘great’ is the most common keyword, analysis also reveals concerns around nausea and display quality.

Ad Serving, Direct Deals and OTT Drive SpotX 2016 Growth
SpotX has released its full year 2016 figures, and notes growth from its advanced ad serving and over-the-top video business streams. SpotX recorded a 110 per cent year-on-year increase in the number of connected TV publishers on its platform, a 33 per cent increase in the overall media spend transacted through the platform and a 26 per cent increase in headcount.

The “Dynamic Living Room” Helps Drive Video Growth and a Return to TV Viewing
The new Dynamic Living Room is driving increased video content consumption, and a return to TV, Freewheel report. Analysis of 2016 data confirms the primacy of video, as tech enables viewing across multiple platforms more publishers are leveraging video content. For the full year 2016 there was a reported 24 per cent year-over-year growth in ad views. Meanwhile, consumers’ preference for high-quality experience, and the availability of OTT platforms and STB VOD is leading viewers back to the TV set.

Advertisers Investing More in Social Platforms
Advertisers in 2017 will allocate more money to paid social, according to ClickZ Intelligence. Over the next 12 months close to two-thirds will increase their investment to Facebook, 40 per cent plan to increase spending on Instagram, and investment in Twitter is expected to increase by more than a quarter.

VR and AR Headset Shipments to Near 100 Million Units by 2021
Virtual and augmented reality headset shipments will grow nearly tenfold between 2016 and 2021 according to data from the International Data Corporation (IDC). New device launches, an expanding array of content for both consumer and enterprise users, and lower price points will propel total headset shipments to 99 million units worldwide in 2021, up from the ten million units shipped in 2016.

New Mums Much More Connected
New mums have higher device ownership across every digital device compared to the general population, and spend more time online, Verto Analytics report. On average new mothers spend 76 hours per month online via mobile devices and over 112 hours per month online via PC.

UK Digital-Tech Sector Growing Twices as Fast as Economy
The UK technology sector is growing at twice the rate of the wider economy, Tech Nation report. According to their data, the digital economy now contributes £97 billion a year to the UK, with £9.2 billion of capital and private equity investment in digital going to businesses based outside the capital in 2016. The report revealed the UK leads in Europe, attracting £28 billion in technology investment since 2011, compared with £11 billion in France and £9.3 billion in Germany.

More than a Quarter of French Ad Spend will be Devoted to Digital in 2017
Marketers in France will devote more than a quarter of ad spending to digital efforts this year, with digital investment rising five point two per cent  to €2.73 billion, according to eMarketer. The predicted rise in digital ad investment is attributed to increased spending on ads destined for social media, digital video and mobile devices.

UK Online Retail Sales Maintain Double-Digit Growth, but Mobile Commerce Slows
UK online retail sales increased 15 per cent year-on-year in February, according to the IMRG Capgemini e-Retail Sales Index. For the second month running, the average basket value was at a seven-year high for that month of the year. However, the report notes that growth in sales made on smartphones, a key driver of online retail, slowed to 57 per cent in 2017, compared to 96 per cent in February 2016.

The Week in TV

OSN and Viacom Expand Content Agreement
OSN and Viacom are expanding their distribution agreement to deliver more channels and content to the Middle East. The partnership will add three channels for OSN subscribers, including NickToons, a Teen Nick on Demand channel and VIMN’s Paramount Channel. The channels will launch to the region this April.

CBS Research Chief Says Millennials will Increase Broadcast TV Viewing
Data shared by CBS Chief Research Officer David Poltrack indicates that millennials will soon start watching more broadcast television, according to Adweek. Poltrack said that broadcast TV viewing will increase each year for that demo, as will average economic value. The data is significant as so much ad spend has been directed towards nontraditional platforms in efforts to attract millennial audiences.

Vivendi Sues Mediaset for Defamation
French media group Vivendi has filed a civil petition demanding damages from Italian broadcaster Mediaset and Berlusconi family holding company Fininvest. Vivendi is arguing that it was the victim of a defamatory media campaign over its aborted agreement to take over pay-TV unit Mediaset Premium, legal sources told Italian media.

MediaRadar Launches TV Share of Market Report
MediaRadar has announced its TV Share of Market Report, a report capability that provides business intelligence and competitor analysis on a network-level to show where ad money is being spent in real-time. The tool can tell broadcasters how their competition is fairing in ad spend by network, program, dayparts, programmatic categories, and product categories.

66 Per Cent of US Customers Keep Pay TV Because it is Bundled with Internet Access
Two thirds of US pay TV customers say that they keep their TV subscriptions only because it is bundled with their internet service, according research by Deloitte. 49 per cent of all US consumers, and roughly 60 per cent of generation Z, millennial, and generation X viewers, now subscribe to paid streaming video services. While 74 per cent of consumers across US households still subscribe to cable or satellite pay TV services, Deloitte identified bundling as the probable reason this figure is holding “fairly steady”.

Zattoo Launches Dynamic Ad Insertion for TV Broadcasters
Zattoo has announced the launch of Dynamic Ad Insertion (DAI), to allow advertising content to be cut from livestream and new content to be inserted from the ad server in real time. Advertisers can identify relevant measurement data from TV media planning, including net and gross contacts, contact classes and OTS, as well as View Thru Rate and Completion Rate and exchange spots dynamically

Adidas Shifting Ad Spend Away from TV Advertising
Adidas CEO, Kasper Rorsted, has told CNBC that Adidas will be abandoning TV advertising to focus their marketing on digital and social channels in order to target younger customers. The brand believe that younger audiences are watching less TV and are shifting attention to multiple mobile devices, and that advertising on digital channels will be more effective at driving revenue growth than TV commercials.

Under 18s Pay Least Attention to TV
People under the age of 18 pay the least amount of attention to both TV programmes and their ads, TVision Insights reports. Under 18s rated an average of 84 on a scale of 125 for attention paid to advertisements, compared to 111.8 for the 25-34 year old bracket.

The Week in Ad Tech

Grabyo Launches Cloud Producer for Social-Video
Grabyo has launched Cloud Producer – a browser-based production suite for social-video content creators and publishers. The system is designed to publish content to Facebook, YouTube, and Instagram simultaneously as well as to apps and websites owned and operated by the rightsholders or leagues.

Flashtalking Announces Dynamic Video Offering
Flashtalking has announced an enhanced dynamic video offering, augmenting the cross-screen creative tool kit for advertisers. Flashtalking’s dynamic video solution combines data driven and programmatic creative approaches to render, deliver and measure dynamic video campaigns. The level of personalisation is aimed at increasing audience engagement and ultimately achieving higher performance and return on ad spend (ROAS).

The Week for Agencies

Publicis and Microsoft Expand Cloud and Data Product Link-Up
Publicis Groupe and Microsoft Corp will expand a pilot initiative that combined the ad giant’s Cosmos data product with Microsoft’s Azure cloud service. The partnership highlights Publicis’ push to generate more revenue from intellectual property and compete with consulting companies, as well as Microsoft’s ambitions to expand its cloud-based offerings.

Inform and Educate MENA Consumers to Reduce Pirate Content Viewing
While piracy is a growing problem in MENA, Irdeto reports that educating consumers about the damage that piracy causes could go a long way. The research found that that of the respondents who pirate, 46 per cent in Egypt and 47 per cent in the Gulf Cooperation Council region would stop or watch less pirated content if they understood the negative impact of piracy on the media industry.

Car Brand Choice Reveals Shopping Habits
A study from Viant, comparing the habits of two million UK auto shoppers has revealed insights into the profile, purchase habits and behaviour of major car brand owners in the UK. The study shows how different demographics are attracted to brands, meaning that their purchasing and trends can be analysed and estimated. For example, that BMW drivers are the biggest retail spenders, and prefer high end stores. Whilst on social media Ford drivers are most interested in cooking content, BMW drivers are attracted to sports and family life appeals to Nissan owners.

China’s Urban Middle Class Key to Brand Success
Chinese brands that cater to the urban middle class have posted the strong performance into 2017, Kantar Millward Brown reports. Education and travel agencies were the fastest-growing sectors, up 46 per cent, although the much larger categories of technology and retail showed far higher increases in dollar terms, up 16 per cent to $163.7 billion and 22 per cent to $74.2 billion, respectively.

Partnerships of the Week

OVGuide Partners SpotX to Monetise Movie and TV Catalogue
Multiplatform on-demand video service OVGuide is partnering with inventory management platform SpotX to monetise its catalogue of video content on connected TVs. OVGuide’s video content is being made available via SpotX’s programmatic enablement and ad serving technology.

Eurovision and AsiaSat Extend Partnership
Eurovision, the operational arm of the European Broadcasting Union (EBU), and Asia Satellite Telecommunications (AsiaSat), have announced an expansion of their partnership. The extension of their existing agreement will support additional occasional live sports and news transmissions as well as permanent TV channel distribution, for EBU Members, to customers in Asia.

Yahoo Partners with Statiq for Location Based Mobile Marketing Campaign
Yahoo have partnered with location specialist Statiq, developing their location-based targeted advertising offer for brands across the UK. The partnership will sees Yahoo refine its ability to offer location-based targeted advertising for brands in the UK.

Hires of the Week

Rubins Joins The Lighthouse Company as Chief Exec
Daren Rubins is to become chief executive of The Lighthouse Company. He leaves PHD, where he will be replaced by Verica Djurdjevic.

Osborne Appointed London Evening Standard Editor
Former chancellor George Osborne has been appointed editor of the London Evening Standard. He takes over from Sarah Sands.

Cake Founder Mathieson Joins Lucky Enterprises
Cake founder Mike Mathieson is joining Lucky Enterprises as its first chief executive. Mathieson founded Cake in 1999 and sold it to Havas for £12m in 2008.

New CEO for Rubicon Project
Rubicon Project have appointed Michael Barrett as CEO. Barrett replaces founder Frank Addante, and joins Rubicon from Millennial Media.

Mediacorp Appoints Twitter’s Parminder Singh
Singapore media player Mediacorp has announced the appointment of Parminder Singh as its Chief Commercial and Digital Officer. Singh joins from Twitter.

Altice appoints Zerbib as Group CTO
Altice has announced that Bruno Zerbib has joined their management team as Altice Group Chief Technology Officer. Zerbib joins from Hewlett Packard Enterprise.

This Week on VAN

Facebook Makes a Splash with New Header Bidding Product, read more on VAN

Dutch Telco Altice Acquires Teads for €285 Million, read more on VAN

Leading Analysts Downgrade Google Stock Following Brand Safety Concerns, read more on VAN

Ad of the Week: Not Special Needs, Coordown, Publicis New York

A funny video with a serious message for World’s Down Syndrome Day: People with Down syndrome, like everyone else, need to be nurtured, loved, and educated, to move, communicate, contribute and work, to share, love and live… And to laugh.

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