Fried Bids, #DigitalNews | 4-10 Nov 2024
This is my personal selection of the most interesting stories published 4th-10th November 2024. Enjoy!
Google Redefines Demand Gen Audience Targeting
Google has redefined audience categorization for its Demand Gen campaigns by shifting from strict targeting parameters to a system of "signals." This change allows Google's algorithm to utilize these signals for optimizing ad delivery while broadening the reach of ads beyond the defined audience. Although this offers the potential for greater exposure, it also reduces advertisers' control over who sees their ads, which may lead to less predictable performance and conversion rates. Advertisers are encouraged to monitor audience signals closely and adjust bidding strategies accordingly, as the update emphasizes a more AI-driven approach to advertising, necessitating a reevaluation of Demand Gen strategies.
Google Ads Shows Competition Impact Alert
Google Ads is testing a new feature in its optimization score system that highlights how competitive pressure impacts campaign performance. Users may see notifications indicating that their campaigns lost impression share due to competition from specific competitors, such as Amazon. This enhancement provides advertisers with clearer insights into how major players affect their ad visibility, allowing for more informed optimization decisions. However, experts caution against directly mimicking competitor strategies, as this could lead to overspending without guaranteed results. This shift aims to improve the strategic approach for advertisers navigating competitive landscapes in digital advertising.
Google AIO Push Shopping Organic Results Lower
Google has updated its AI Overviews (AIO) for shopping queries, significantly impacting eCommerce traffic. These updates have led to larger panels and increased ad placements, which push organic search results lower on the page. Notably, citations to websites within AIO have surged by over 300%, indicating a shift in how these rankings align with traditional organic results. Despite increased ad presence, the volatility of AIO results is stabilizing, offering a more predictable environment for advertisers. This trend is likely to influence the holiday shopping season, as AIO increasingly prioritizes educational content and early-stage research queries, highlighting the need for businesses to adapt their content strategies accordingly.
Instagram Surpasses Facebook in EU Users
Meta has revealed that Instagram now surpasses Facebook in active user count in the EU. Instagram boasts 269.1 million monthly active users, compared to Facebook's 260.6 million. This shift follows a period where both platforms had similar user counts, but Facebook has experienced slower growth and even a decline in usage over recent months. Factors contributing to this trend may include increased data privacy regulations in Europe, which have led some users to perceive Facebook as outdated. Despite this decline, Facebook remains a significant platform with 260 million active users, while TikTok and X have 150 million and 66 million users, respectively, indicating a changing social media landscape.
IAB Europe Releases 10th Report on Programmatic Trends
IAB Europe has released its 10th Annual Attitudes to Programmatic Advertising Report, providing insights into the current state and evolution of programmatic advertising in Europe. The report, based on responses from 254 industry professionals across 31 markets, highlights a steady increase in programmatic spending, particularly in display, mobile, and emerging channels like Connected TV (CTV) and retail media. Despite challenges related to media quality and privacy, AI and addressability are identified as key growth areas. Additionally, sustainability remains a focus, though progress varies among stakeholders. The findings underscore the need for enhanced standards in brand safety and transparency as the programmatic landscape matures.
Google Ad Manager Introduces Inventory Curation
Google has introduced new tools to enhance agency efficiency within Google Ad Manager. These updates include improved curation capabilities that allow agencies to discover and activate ideal inventory more effectively, addressing challenges in a fragmented digital advertising landscape. By simplifying operations, agencies can now manage payments and billing through Google Ad Manager, eliminating the need for separate invoices. The curation feature supports partnerships with data providers, enabling agencies to access curated inventory packages. Additionally, programmatic buying processes have been streamlined, providing agencies with better insights and performance tracking across multiple platforms, ultimately enhancing their ability to serve clients effectively.
SoundCloud Partners With PubMatic for Ads
SoundCloud has partnered with PubMatic to enhance its advertising capabilities by offering programmatic video and display inventory across its desktop and mobile platforms. This collaboration allows advertisers worldwide to access premium ad inventory while benefiting from PubMatic's monetization expertise and demand access. While the partnership focuses on display and video ads, it does not include programmatic audio advertising, which SoundCloud considers still developing, particularly outside the U.S. The move aligns with the growing digital audio market, projected to reach $11.13 billion in ad spending, positioning SoundCloud to attract new advertisers and leverage its extensive library of over 400 million tracks.
DoubleVerify Wins 70% of Moat’s Clients
DoubleVerify has successfully secured 70% of the advertising clients from Moat, including major brands like P&G and Google, following Oracle's shutdown of Moat’s services. This transition occurred rapidly after Oracle's announcement in September 2024, condensing the typical RFP process into just six weeks. DoubleVerify's CEO, Mark Zagorski, noted that this expedited timeline required aggressive pricing and thorough technical due diligence. While these new client wins promise future revenue growth, CFO Nicola Allais emphasized that the financial impact will unfold gradually over one to three years. Additionally, DoubleVerify aims to enhance its offerings by upselling performance solutions, leveraging its recent acquisition of Scibids to optimize programmatic bids.
https://www.adexchanger.com/marketers/doubleverify-won-70-of-the-former-moat-advertisers-it-courted/
Canada Shuts Down TikTok Offices
Canada has ordered the shutdown of TikTok's offices, specifically ByteDance’s operations in the country, due to national security concerns. This decision does not extend to blocking the TikTok app itself, allowing users to continue downloading and using it. The closure affects hundreds of jobs and follows ongoing scrutiny about TikTok's data handling practices, with critics alleging potential data harvesting by China. Despite the job losses, TikTok plans to appeal the decision, arguing that shutting its Canadian offices is not in the best interest of stakeholders. This move comes after Canada previously banned TikTok on government devices, reflecting broader concerns about the app's impact on user privacy and security.
Privacy Sandbox Interest Declines
Since Google announced in July 2024 that it would not deprecate third-party cookies in Chrome, interest in the Privacy Sandbox has significantly waned among advertisers. Many companies initially eager to test the Sandbox have since shifted their focus, with adoption rates for key APIs dropping sharply. For instance, the use of the Protected Audiences API fell from 22% in March to 13.3% by August, while the Topics API usage declined from 41.2% to just under 29% in the same timeframe. This decline is attributed to a perception that the urgency around adapting to the Privacy Sandbox has diminished. Analysts express concerns that if the Sandbox takes off, it could lead to increased energy consumption in ad tech, raising questions about user experience and privacy protections.
LiveRamp Revenue Grows Despite Profit Drop
LiveRamp reported a surprising increase in Q3 revenue, rising from $160 million last year to $185 million in 2024, driven by the decline of Oracle’s ad business and the growth of digital advertising, particularly in connected TV (CTV) and commerce media. CEO Scott Howe emphasized that LiveRamp is not an ad tech company but focuses on data clean room services, collaborating with major streaming platforms like Netflix and Disney. The company aims to achieve a "Rule of 40" benchmark by improving its growth rate and profit margins, with plans to expand its data marketplace. Despite a net profit drop to $2 million, LiveRamp positions itself as a key player in the evolving data landscape, leveraging its identity graph and clean room capabilities to attract large advertisers.