Key Industry Updates: October 2024

To stay in the loop on all things media, check out these key industry updates for October.

TikTok Strengthens Search Ads and Subscription Options as Music Service Bows Out

TikTok is making bold moves across multiple fronts. Its new “TikTok Search Ads Campaign” lets advertisers target users through keyword-based ads, challenging Google’s dominance, especially among younger audiences. With 57% of users relying on TikTok’s search function, early tests show a 20% conversion boost for brands leveraging these ads. David Kaufman, TikTok’s Global Head of Monetisation, highlighted that the feature aims to align with users' search behaviour for maximum impact.

At the same time, ByteDance, TikTok’s parent company, will close TikTok Music on 28 November, after just over a year of operation. Despite expanding to markets like Singapore and Mexico, the service, initially branded as Resso, struggled with setbacks, including a ban in India. ByteDance says the shutdown will allow a sharper focus on enhancing TikTok’s role in music discovery, which already drives strong listener engagement. Apple users must request refunds by the shutdown date, while Google Play subscribers will receive automatic refunds.

Meanwhile, TikTok is expanding its Subscription feature, previously exclusive to LIVE creators, to a broader range of eligible creators in select regions, with more markets to follow. The feature offers exclusive perks such as private chats, special content, and badges, helping creators strengthen connections with their most engaged followers while boosting revenue. To qualify, creators must be 18+, have 10,000 followers, 100,000 video views in the past month, or meet specific LIVE criteria. TikTok also provides support through the Creator Academy and ensures all content aligns with its Community Guidelines to maintain a safe platform.

Sources: TikTok Newsroom, Social Media Today, and Mashable Middle East

Dubai Launches Mada Media to Oversee Advertising Operations

Dubai Ruler HH Sheikh Mohammed bin Rashid Al Maktoum has launched Mada Media, a private joint-stock company (PJSC), to manage and develop advertising sites across Dubai under Law No. (20) of 2024. Mada Media will focus on operating ad sites, investing in ad technologies, conducting research, and ensuring compliance. It can also form partnerships, own assets, and sign contracts within and beyond Dubai.

The law allows Dubai’s RTA and Municipality to delegate their ad-related functions to Mada Media, transferring assets, rights, and obligations to support its goals. This move aims to streamline advertising operations and enhance media investments across the emirate.

HH Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, approved the company's Articles of Association and appointed a Board of Directors, chaired by Mattar Mohammed Al Tayer.

Source: Gulf Business

YouTube Launches AI Tools as Viewer Trends Surge in MENA

YouTube CEO Neal Mohan announced new AI-powered tools aimed at enhancing creativity for creators. These tools will include six-second AI-generated videos for YouTube Shorts, powered by Google’s DeepMind technology. The features are set to roll out later this year and will also introduce an "Inspiration" tool. This tool will offer AI-generated content ideas and suggestions for responding to comments. Mohan assured that these tools are designed to assist, not replace, creators’ original ideas. He also emphasized the responsible use of AI, which is integral to YouTube’s operations. Currently, 92% of creators leverage AI tools.

As YouTube embraces these advancements, viewer behavior in the UAE, Saudi Arabia, and Qatar is shifting towards Connected TV (CTV), with over 2.5 million users in the UAE, 12 million in Saudi Arabia, and 600,000 in Qatar engaging with the platform as of May 2024. Tarek Amin, YouTube's Director for MENA, highlighted YouTube's growing influence, noting that 87% of UAE viewers and 86% of Saudi viewers believe the platform significantly impacts their purchase decisions.

At the recent YouTube Brandcast event, the beta version of partnership ads was introduced, allowing brands to connect authentically with audiences through creator content linked to Google Ads. Amin remarked that today's creators are producing high-quality content, creating valuable opportunities for advertisers across various formats.

Sources: NBC News and Campaign Middle East

Snapchat Expands AI, AR, and Creator Tools to Boost Engagement and Brand Collaboration

At its sixth Partner Summit, Snapchat introduced new tools to enhance creativity and engagement. The updates include an upgraded Profile Design with easier account toggling, pinned Snaps, and message-to-photo replies, along with AI-powered features in the enhanced Lens Studio. New tools like Easy Lens and GenAI features (Animation Blending and Body Morph) simplify AR creation.

Snap also announced its shift to Google’s Gemini AI for improved multimodal capabilities, moving away from OpenAI’s GPT models. This switch aims to enhance problem-solving, translation, and interaction based on user behaviour. Additionally, Snap's Spectacles Gen 5 now offers immersive AR experiences through see-through glasses.

Hussein Freijeh, VP of Snap MENA, emphasised that these innovations will strengthen community connections, empower creators, and unlock better brand partnerships through the new Snap Star Collab Studio.

Sources: Campaign Middle East and Social Media Today

X Faces User Decline as Monetization Shifts Toward Premium Engagement

Elon Musk's social media platform X is facing significant user losses in key markets. From May 2023 to September 2024, daily active users dropped nearly 20% in the U.S. and 33% in the UK, according to SimilarWeb. The EU user base also declined from 112.2 million in early 2023 to 105.9 million by mid-2024. Contributing factors include a temporary ban in Brazil and advertiser concerns over Musk's controversial comments. Although the upcoming U.S. election season may provide a short-term boost in activity, Musk's political involvement could lead to further declines.

In a related update, X is changing its Creator Revenue Sharing Programme, effective 8 November. Creators will now earn money based on engagement from X Premium users—subscribers paying $8 per month—rather than ad views in replies. Monetisation will depend on replies, reposts, and likes from X Premium users, even without ads, which X claims will result in higher payouts for creators. This shift prioritises revenue from Premium subscriptions over declining advertising sales, which have dropped nearly 40%. The change may also encourage more controversial content, as restrictions on monetising certain types of content are lifted.

Source: Mashable Middle East

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