In this week’s Week in Review: French video publisher Brut secures another billionaire investor, Twitter merges with Musk’s X Corp, and S&P raises its forecast for US ad spend.
Top Stories
French Video Publisher Brut Finds Fourth Billionaire Investor
French video startup Brut, a company that creates youth-skewed news videos, has secured a fourth billionaire backer, shipping tycoon Rodolphe Saade, who acquired a 16 percent stake in the business. According to Bloomberg, the four investors are among the world’s wealthiest people, including media mogul James Murdoch.
Brut has raised about $153 million since it was founded in 2016, and the latest funding round netted €35-40 million, said CEO Guillaume Lacroix. Brut has around 500 million unique monthly viewers, and in 2021 the company launched its own subscription service, BrutX.
Twitter Merges with Musk Shell Firm X Corp
Twitter has merged with Elon Musk’s new shell firm X Corp, according to Bloomberg, meaning it no longer exists as an independent company. The merger has sparked speculation about Musk’s plans for Twitter as he seeks to create an “everything app” simply called “X”.
Musk also claimed that most of the advertisers who fled Twitter have returned, and the company could become cash-flow positive this quarter – contrary to last week’s reports that revenues are down 50 percent on October as advertisers continue to stay away.
Meanwhile, the company has started labelling public broadcaster accounts as “state-affiliated” or “government-funded”, prompting media organisation NPR to abandon the platform.
S&P Raises its Forecast for US 2023 Ad Spend
Business intelligence firm S&P has raised its forecast for US ad spend growth in 2023 to 2.8 percent, a small rise from its previous prediction of 2.6 percent. Digital advertising is expected to grow 9 percent, S&P predicts, while TV will fall 8.1 percent. But next year, total ad spend is projected to jump by 8.4 percent, following a “very shallow recession” in Q2 and Q3 2023.
“Our economists forecast that a recession, while it could happen later in the year than we had originally anticipated, will also likely be milder than what we anticipated at the beginning of the year,” said Naveen Sarma, senior director of US media and telecommunications for S&P.
The Week in Tech
IAB Tech Lab Updates Video Ad Format Classifications
IAB Tech Lab has updated the technical specifications for digital video ads, in efforts to improve transparency for media buyers. Previously the framework split video into in-stream and out-stream ads. Now the classification divides the formats into four: in-stream, accompanying content, interstitial and no content/standalone. “These new definitions represent a significant step forward towards improving the transparency and accuracy of web video inventory,” said IAB Tech Lab. “By introducing new definitions that more accurately reflect the different levels of user engagement provided by various video placements, in conjunction with additional signals already available and more to come in future updates, the guidelines provide greater clarity for advertisers and publishers alike.”
Permutive to Cut 40 Percent of Staff
Ad tech firm Permutive has announced 80 layoffs, accounting for 40 percent of its staff. The company cited challenging economic conditions, according to Business Insider, but gave no details on the divisions affected by the cuts. “Late-stage venture capital has fallen by 80 percent,” said Permutive CEO Joe Root, “and as we chart a course for responsible growth, we’ve decided to prioritise profitability and double down on our existing customers.”
ByteDance Earnings Hit $25 billion in 2022
TikTok owner ByteDance saw its pre-tax earnings reach $25 billion in 2022, the FT reported on Sunday. This represents a 79 percent YoY increase for the Chinese firm, even as losses mount at the TikTok unit, which is also threatened with a ban or divesture from the US Government. “TikTok is not as material a percentage of ByteDance’s total revenue as people assume,” said a ByteDance investor. “But the ban would be a real loss to future potential given its growth rate.”
Amplified Intelligence Launches Campaign Attention Tracker
Attention measurement firm Amplified Intelligence has launched a campaign evaluation tool called attentionPROVE, designed to help agencies monitor attention in real-time. The product is now live in the US, Canada, Australia, UK, Ireland, France, Germany, Poland, Sweden, Denmark and Dubai. The tool takes sub-second attention data from over 55,000 global panelists, the company said, for desktop, mobile web, mobile app, CTV and BVOD campaigns.
Lack of Understanding is Inhibiting VR/AR Adoption by Advertisers
As virtual and augmented reality (VR/AR) usage rises among consumers, advertisers are slow to integrate the technology into their campaigns, marketing research firm Advertiser Perceptions has found. According to market data tracker Statista, consumer spending on VR and AR is expected to reach $72 billion by 2024 – and as Advertiser Perceptions notes, everyone with a smartphone already owns an AR-ready device. But just 8 percent of advertisers have a full understanding of the benefits of VR/AR advertising, the research reveals, and only 11 percent fully understand the audience these technologies can reach. Read the full story on VideoWeek.
Video Revenues Grow as Search Declines Says IAB Report
Video ad revenues reached $47.1 billion in 2022, according to newly released IAB data, as budgets shift away from search and towards digital video. Connected TV and retail media are also expected to grow this year, due to the scale and addressability offered by these media channels. Read the full story on VideoWeek.
Marketers Are Still Embracing the Metaverse
Almost half (46 percent) of consumer brand marketers are planning to increase their metaverse budgets this year, the WSJ has reported, with just 12 percent intending to lower their metaverse spending. The Forrester survey suggests a contrast between advertising appetite for the technology, and the tech companies (Meta, Microsoft and Disney) scaling back their investment. Mastercard and Shiseido are among the brands embracing the metaverse, sponsoring events and experiences on online gaming platform Roblox.
The Week in TV
Paramount Explores Sale of Streaming Service “Noggin”
Paramount is looking to sell a majority stake in its kids subscription product Noggin, the WSJ reported this week. According to people familiar with the situation, Paramount is seeking an investor to help make Noggin (which houses Paw Patrol and Peppa Pig) into an interactive learning platform, but the company would reportedly like to retain a minority stake. The move would also allow the company to prioritise its streaming services, Paramount+ and Pluto TV.
WBD’s Max Streaming Service Gets Official Launch Date
Warner Bros. Discovery (WBD) has confirmed plans to launch SVOD service “Max”, featuring content from Discovery+ (which will remain a standalone service) and HBO Max (which will not). The US launch is slated for 23rd May, with a global roll-out to be announced. For current users, HBO Max will make the switch automatically, with data and preferences migrating alongside the update. WBD said the ad-supported plan will cost $10 per month or $100 per year, and the ad-free version $16 per month or $150 per year.
Disney+ Ad Tier Arrives on Roku
Disney+ with ads is now available on Roku, the device manufacturer announced this week. Disney+ Basic was absent from the Roku player while the companies negotiated an ad-sharing agreement, according to TechCrunch, as Roku requires its channels to split its ad revenues. Four months later, the ad tier is available to Roku users for $7.99 a month.
Paramount+ Teams Up with Formula 1 in Sponsorship Deal
Paramount+ has signed a sponsorship deal with Formula 1 for the 2023-2024 season. The partnership includes Paramount+ branding on the track and signage, alongside digital promotional opportunities. “Becoming an official partner of Formula 1 means bringing the Paramount+ brand and all our characters to life for hundreds of millions of fans worldwide,” said Marco Nobili, executive vice president and international general manager at Paramount+. “Through this global deal the worlds of motorsport and entertainment will come together, resulting in powerful storytelling opportunities on and off the grid.”
Google TV Positions Itself as the New Gateway to FAST
There have been stirrings for over a year now that Google has been lining up a play in the free ad-supported streaming TV (FAST) space. This time last year, YouTube began offering full seasons of archive TV content (which is popular on many FAST platforms) for free. And last summer, code found hidden within the Google TV app suggested the company was gearing up to launch its own channels. Read the full story on VideoWeek.
The Week for Publishers
News UK Revenues Rise, but Legal Costs Cause Losses at The Sun
News UK-owned newspaper The Sun reported pre-tax losses of £127 million for 2022, roughly double the previous year, Press Gazette reported this week. But these losses were due primarily to ongoing legal costs. The paper saw an increase in revenues across the year, and fellow News UK newspapers The Times and Sunday Times saw profits up by £73.2 million, a 115 percent rise.
Search Drives News Traffic as Social Declines
Search remains the dominant referrer of traffic for news websites, Press Gazette has found, now accounting for around 35 percent of referrals. According to Chartbeat data, Google is responsible for approximately 95 percent of page views generated from searches. Meanwhile, referrals from social networks have dropped in the last five years, now representing 30 percent of traffic. Facebook is the dominant source for social-derived traffic, noted the report, generating more than eight times as many page views as Twitter.
Axel Springer CEO Accused of Influencing Political Content
Mathias Döpfner, CEO of German publisher Axel Springer, is facing criticism for using his newspapers to funnel his personal views on climate change, Covid measures, Muslims and Angela Merkel. Leaked messages published by German weekly Die Zeit suggest the CEO tried to use his flagship tabloid, Bild, to influence the outcome of Germany’s last election. Döpfner holds a 22 percent stake in Axel Springer, and also sits on the board of directors at Netflix.
Gender Pay Gap Decreases but Persists at UK Media Companies
The gender pay gap at UK media companies has decreased from 15.7 percent to 12.1 percent over the last five years, according to government data. On average, men were paid more than women at 31 of the 33 firms that submitted their figures for 2022. Mirror Group Newspapers had the largest median pay gap, with men paid an average 23.2 percent more than women.
3000+ Redundancies Reported Across UK, US & Canadian Publishers
UK, US and Canadian publishers cut at least 3,340 jobs in Q1 2023, Press Gazette revealed this week. Most of the companies affected attribute the redundancies to declining ad revenues. More than one-third of the layoffs came at News Corp, accounting for roughly 1,250 positions.
The Week For Brands & Agencies
Advertisers are Slow to Put Diverse Supplier Plans into Action
A study from the Association of National Advertisers (ANA) has found a lag between advertisers’ stated interest in funnelling more spend to diverse suppliers, and actually following through with action. A survey of 89 certified diverse suppliers, covering agencies, media partners, consultants, and researchers among others, found a 49 percent net increase in Q4 last year in marketers’ interest in working with diverse suppliers. But over the same period, there has only been a 17 percent net increase in spend with diverse suppliers.
Horizon Media Charts Impact of Inflation on Consumer Habits
US independent media agency Horizon Media has released a follow up to its Inflation Nation report released last year, charting the impact of inflation on consumer spending habits. Among Horizon’s findings are that saving has stagnated as people are eating into pandemic savings, but are also returning to simple pleasures like dining out and lifestyle expenditures.
ASA Bans Etihad’s ‘Sustainable Aviation’ Ads
The UK’s Advertising Standards Authority (ASA) this week banned an ad from airline Etihad Airways which positioned the company as a more sustainable airline. The ads, posted on social media, referenced consumers making a “conscious choice for the planet”, and spoke about Etihad’s “louder, bolder approach to sustainable aviation”. The ASA’s ruling found that not only were Etihad’s ads misleading, but that “there were currently no initiatives or commercially viable technologies in operation within the aviation industry which would adequately substantiate an absolute green claim such as ‘sustainable aviation'” – suggesting that any similar claims made by other airlines should also expect to be struck down.
Netflix Set to Appoint Mediahub as UK Media Agency of Record
Netflix is set to appoint IPG agency Mediahub, which was recently integrated into the Mediabrands group, as its media agency of record in the UK, Campaign reported this week. The account was previously held by WPP’s Wavemaker.
Ford Hands Social Media Duties Back to WPP
Car manufacturer Ford had handed WPP social media duties for the primary Ford brand, Campaign reported this week, just a year after moving that portion of the account across to VaynerMedia. Prior to VaynerMedia, WPP’s VMLY&R handled the account, according to Campaign.
Omnicom Downsizes US Office Space
Agency group Omnicom has begun a “massive” consolidation of its US office space, according to Ad Age. The report claims that Omnicom owed over $1.1 billion in future rent payments, with $240 million due this year. But since the pandemic, the offices only average 12 percent occupancy, a spokesperson said. As a result, downsizing will likely force the group’s various agencies to share space in Los Angeles, New York and Chicago.
Hires of the Week
Assembly Names Matt Adams European CEO
Media agency Assembly has appointed Matt Adams as CEO of Europe. Adams was previously COO at Brainlabs, following a four-year stint as CEO of Havas Media Group UK&I.
ShowHeroes Promotes International Growth Lead Tanya Priyank
ShowHeroes has promoted Tanya Priyank to VP International Growth & Better Media. Priyank previously served as Director of International Growth & Better Media, having joined the ad tech firm in 2019 as Head of International Growth.
Kim Granito Becomes AMC Networks Marketing Chief
Kim Granito has been named Head of Marketing at AMC Networks. The appointment marks the latest executive shake-up at the US media company, following the sudden departure of CEO Christina Spade in November. Granito has been at AMC since 2011, and replaces Len Fogge who retires next month.
This Week on VideoWeek
SSPs Should be the “Safeguarders of Quality” in CTV, watch on VideoWeek.
FreeWheel is Seeing More Interest in Contextual Targeting than it Has in Ten Years, watch on VideoWeek.
Attention is the Word of 2023 for Canal+ Brand Solutions, read on VideoWeek.
Lack of Understanding is Inhibiting VR/AR Adoption by Advertisers, read on VideoWeek.
Google TV Positions Itself as the New Gateway to FAST, read on VideoWeek.
Google News Showcase is Proving Important for UK Publishers, read on VideoWeek.
There’s an Untapped Media Opportunity on the Smart TV Home Screen, watch on VideoWeek.
CTV Can Outperform DRTV for Performance Campaigns, watch on VideoWeek.
Video Grows in Diversified Advertising Environment Says IAB Report, read on VideoWeek.
Ad of the Week
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