Global Data Market News

M&A 2023: Ad Tech Deals Were Muted, But That Could Be A Mark Of Maturity?

Ad tech M&A activity in 2023 saw a modest increase compared to the previous year, but it was still considered weak overall. The sluggishness can be attributed to various factors, including regulatory uncertainty, rationalization in valuations, and general macroeconomic turbulence.

?Additionally, the ad tech market is maturing, leading to a shift towards efficient growth rather than a growth-at-all-costs mentality. Some notable acquisitions in 2023 include Samba TV selling its media sales business to MiQ, Tinuiti acquiring Ampush, Kargo acquiring VideoByte, and DoubleVerify acquiring Scibids

Source: AdExchanger

If 2023 Was The Last Year Of Third-Party Cookies, Did Programmatic Make The Most Of It??

The extra time provided by the multiple deadline delays for Chrome's third-party cookie deprecation plan has not been effectively utilized by advertisers and ad tech companies. The Chrome Privacy Sandbox, the main testing ground for post-cookie strategies, has had limited sample sizes, hindering significant experimentation.?

Even Google Ads' experiment using the Privacy Sandbox APIs did not yield impressive results, as it still relied on third-party cookies for attribution. Companies like Criteo and RTB House have invested substantial time and resources into the Privacy Sandbox, hoping it will replace third-party cookies, but there is no guarantee of its success.

Source: AdExchanger

Predictions 2024: Economy??

1. The cautious approach to ad spend is expected to continue in 2024 due to the challenges of inflation, the cost of living crisis, and the TV industry's advertising downturn, although major sporting events and the US elections may cause a spike in budgets during certain periods.
2. Despite economic uncertainties, brands are likely to capitalize on the increased availability of third-party technologies to deliver cost-effective and engaging ad experiences to consumers, with the mainstream adoption of Artificial Intelligence expected to play a crucial role in campaign optimization.
3. Publishers and networks need to focus on enhancing efficiency and automating processes through specialized systems, which can lead to streamlined operations and increased revenue management.
4. The digital advertising sector in the UK evolved positively in 2023, with a focus on transparency, collaboration, efficiency, and sustainability. As the industry prepares for cookie deprecation in 2024, it aims for growth, meaningful audience connections, and data-driven strategies.
5. Mobile advertising is expected to absorb a significant portion of budgets globally as the industry moves away from cookies. Mobile offers unique user-level attribution, engaging formats, and the opportunity for economic growth through solutions like attention metrics and AI-powered ID-less audiences.

Source: AdExchanger

Ad Agency Trends 2024: How Agencies Plan to Use AI?

Agency leaders and experts in the advertising industry have shared their predictions for the role of artificial intelligence (AI) in 2024. They believe that AI will transition from being a novelty to a practical tool that enables creativity and improves workflow efficiency.?

Some foresee bigger creative bets utilizing AI, a shift towards comedy in advertising, and brands focusing more on their social impact. While AI can help decrease content creation costs, the increasing volume of content may lead to quality and decision-making bottlenecks.?

However, AI can also be applied to solve these challenges by automating content quality assurance. Overall, AI is expected to become an essential tool that requires integration and responsible use in the marketing industry.

Source: AdWeek?

Amazon Prime Video streaming content to include ‘limited advertisements’

Starting from early next year, Amazon Prime Video subscribers in the UK, Germany, and the US will see limited advertisements in streaming content unless they pay an extra fee of ￡2.99 for an ad-free experience. This move follows the footsteps of rivals Netflix and Disney who have introduced cheaper ad-supported streaming packages.?

The aim is to generate additional revenue and offset the post-pandemic slowdown in subscriber growth. Amazon assures viewers that they will have fewer ads compared to ad-supported TV channels and other streaming providers. The company plans to invest the additional revenue in creating compelling content for its streaming service.

Source: The Guardian?

Ad Market Expands For 8th Consecutive Month In November

According to Guideline's U.S. Ad Market Tracker, the U.S. advertising market showed consistent growth for the eighth consecutive month in November. The tracker analyzes actual media buys from major agencies and independent media services, capturing billing records and adjustments over time.?

Guideline notes that billings tend to settle over time, with recent months experiencing more significant fluctuations compared to older periods, similar to how government estimates for employment and GDP data reconcile over time.

Source: MediaPost?

What will it take to get brands to increase their gaming spend in 2024?

Gaming has become the most popular form of entertainment, generating $187.7 billion in revenue in 2023. However, ad spend in the gaming sector is still behind traditional media, with U.S. ad spend on games at $8.6 billion in 2022. Brands approach gaming as an experimental channel, resulting in cautious spending. In-game advertising companies are developing standardized ad units and attention measurement solutions to boost brand confidence and anticipate increased spending in gaming.

Source: Digiday