Advertising Digest: September 2024

Summer is over and it's "back to school" time in the advertising industry.

In the September edition of "Advertising Digest", we'll dive deeper into the following topics:

1. Netflix' strategic hunt fior an ads leader
2. Latest big moves in the CTV industry
3. News from our Retail Media friends
4. Advertising trends: US slowing ad spend, rise of commercial OLV
5. Strategic business moves: Merger to create the largest US pay TV provider

This 4-minute read will bring you up-to-date on all that's been happening last month.

Let's dive right in! ??

1. Leadership Shifts: Netflix’s Strategic Hunt for an Ads Leader

Netflix is signalling a pivotal shift in its advertising strategy.

Amy Reinhard, Netflix's Advertising President, is on the hunt for a new ad sales leader with a robust background in ad product and programmatic sales.

Insider reports suggest that the next hire will be more tech-centric than traditional Madison Avenue types.

This move underscores Netflix’s ambition to scale its advertising footprint, potentially integrating more sophisticated tech-driven ad solutions.

2. Connected TV: Innovations and Strategic Moves

The Trade Desk’s Bold Steps

Rumors are swirling around The Trade Desk potentially developing its own smart TV operating system.

While The Trade Desk's CEO, Jeff Green, denies plans to rival giants like Roku or Amazon, the company is undeniably enhancing its connected TV (CTV) capabilities.

Their focus remains on data and maintaining neutrality in ad markets, crucial for retaining advertiser trust.

Walmart and Amazon Lead the Charge

Walmart is leveraging Fubo’s new Triple Play ad format to seamlessly integrate content and commerce, making ads shoppable via QR codes.

Meanwhile, Amazon has surpassed $1.8 billion in streaming ad commitments, solidifying its dominance in ad-supported video.

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Google TV’s Fresh Approach

Google TV’s recent rebranding of its FAST channels to Freeplay, along with the launch of its Streamer device, illustrates the ongoing evolution of CTV platforms.

By introducing new ad formats like non-skippable and bumper ads, Google TV is enhancing monetisation options for advertisers while providing diverse viewing experiences for users.

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3. Retail Media: Expanding Horizons

Programmatic Opens Up Retail Media

Retailers are increasingly embracing programmatic advertising, opening up shopper audience data to enhance targeting and attribution.

Giants like Kroger, Target, and Macy’s are leading the charge, though some, like Walmart, maintain walled gardens by withholding ad IDs.

This openness fosters a more dynamic ad ecosystem but also introduces potential legal ambiguities regarding data usage.

?? Will the future of retail media be an open ecosystems or walled gardens?

In-Store Innovations

Emerging technologies like smart carts and interactive screens are enabling personalised in-store advertising, merging digital and physical shopping experiences.

Retailers recognise that over 80% of sales still occur in-store, making the integration of digital ad formats a lucrative avenue for driving sales and enhancing customer engagement.

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4. Ad Market Trends: Growth, Commerce Video, and Data Optimisation?

Slowing Ad Spend Growth

U.S. ad spending is projected to grow by 7.2% in 2024, slightly up from previous estimates, but the pace is expected to decelerate in the latter half of the year.

Factors such as the dissolution of the Global Alliance for Responsible Media (GARM) and declining TV viewership are contributing to this slowdown, despite a healthy economy.

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Rise of Commerce Video

Commerce video ads are reshaping retail advertising, with 70% of digital video advertisers deploying these formats to create seamless product discovery and purchasing experiences.

These ads, featuring clear calls to action like “purchase” or “shop now,” are proving highly effective, with 75% of consumers finding them aligned with their buying process.

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Data Optimisation Innovations

Quorum, a data optimisation platform, has raised $2 million to enhance programmatic media’s optimisation capabilities.

By tracking 80 million unique mobile IDs and utilising proprietary geo-fencing data, Quorum aims to provide more precise targeting and attribution, integrating seamlessly with major DSPs like The Trade Desk and Google DV360.

What It Means: While overall ad spend growth is moderating in the US, innovations in commerce video and data optimisation are driving new efficiencies and opportunities within the ad tech ecosystem.

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5. Strategic Company Moves

Dentsu’s New Coalition for Credible Media

In the wake of GARM’s dissolution, Dentsu is spearheading a new coalition aimed at encouraging investment in credible news outlets.

Partnering with The 614 Group and ad tech suppliers like OpenX and Sightly, Dentsu is addressing the challenges of brand safety and suitable media environments, promoting responsible advertising practices.

DirecTV and Dish Merger Talks

DirecTV and Dish Network are reportedly in advanced talks to merge their operations, potentially creating the largest U.S. pay TV provider with nearly 20 million subscribers. If successful, this merger would reshape the pay TV landscape, challenging incumbents like Comcast and expanding the combined entity’s market reach.

Conclusion

As the advertising industry continues to transform, we're seeing a profound shift in how connected TV, retail media, and programmatic solutions are shaping the future.

The convergence of data-driven ad technologies with platforms like CTV is creating unprecedented opportunities for brands to reach consumers in more personalised and engaging ways.

As major players push the boundaries with strategic moves and retail innovations, the challenge now lies in how effectively the industry can harness these advancements to not only drive growth but also create seamless, value-driven consumer experiences.

The future of advertising will belong to those who can adapt swiftly and think beyond the conventional.

More in next month's edition of "Advertising Digest"!