Publisher Woes And Shoppable TV

I’m feeling the energy! Maybe it’s just the Spring weather, but I think it’s more so the energy from the industry and more importantly, my team. We had an amazing time at Possible, meeting with many of you who subscribe to this newsletter! Thank you to those who helped and to AdTech God for the AfterParty.

I also had a PACKED turnout for the Montclair Media Lunch.?It’s invigorating to have grown something from a small happy hour to a 60+ media professional turnout in my hometown! Similarly, we’ve grown Qortex from an idea to an entire platform to help brands, advertisers, and publishers gain the deepest understanding and utilization of video.

This year, publishers especially face numerous hurdles that compromise their ability to effectively monetize content, influenced by shifting consumer behaviors and new technologies. Here’s an overview of the significant challenges I see them facing in the back half of 2024:

1. Advertiser Uncertainty Amid Privacy Concerns

Digital publishers in 2024 must deal with uncertainty in online advertising driven by increased privacy regulations and the elimination of third-party cookies. This creates a ripple effect, impacting publishers’ revenue from targeted advertising. Innovating new advertising models that comply with privacy laws is now more crucial than ever. ?

2. Brand Safety and Contextual Advertising

Advertisers are intensifying their focus on brand safety and the context in which their ads appear, fearing brand damage from association with unsuitable content. This pressure compels publishers to enhance content moderation and develop sophisticated contextual advertising technologies that align ads with content safely and effectively.

3. Ad Overload

Ad overload is a significant threat to publishers' revenue as consumers get overwhelmed by frequent and intrusive ads, steering away from Made-For-Advertising sites. Publishers must balance creating engaging, non-intrusive ad experiences with the need to generate enough revenue, a challenging task that demands innovative solutions to keep both advertisers and audiences satisfied.

4. Fragmentation of Audience and Distribution Channels

Audience fragmentation across various platforms requires publishers to employ a multi-channel approach to monetization. Tailoring strategies to each platform's specific characteristics stretches resources and complicates efforts to optimize revenue.

5. Evolving Content Consumption Habits

The rise of audio, video, and interactive content reshapes monetization strategies. Publishers should be experimenting with shorter formats of video as well as diving deeper into understanding the content that their viewers and advertisers are interested in. What do you think? Are publishers facing a significant switch in monetization strategy and perceptions?

Have a great day! Zack?Rosenberg Achieving the deepest level of understanding of video through AI. Get in Touch P.S. Want 6.8X the results from your video advertising??Learn more!

The Voice

I'm thrilled to announce that Vanessa Eng of Qortex has been honored as a Top Woman in Media & Ad Tech, specifically recognized for her excellence as a Programmatic Storyteller. This accolade follows closely on the heels of her inclusion in Business Insider's list of Rising Stars in Adtech just last week.



Vanessa's exceptional talent and influence are key assets to our team at Qortex, and it's fantastic to see her industry recognition reflect her contributions. Congratulations, Vanessa.
        

?The Quest?

Netflix Ads Grow Netflix has significantly shifted its business model by embracing advertising, evidenced by its latest Q1 earnings report showing a 15% year-over-year revenue increase, mainly fueled by new accounts due to anti-password sharing measures. This strategy aims to funnel more users into its ad-supported subscription tier, which saw a 65% growth since the last quarter. To enhance its appeal to advertisers, Netflix has expanded its measurement capabilities by partnering with several new analytics providers, including Kantar, Cint, and NCSolutions, joining existing partners like Nielsen and Integral Ad Science. This move is part of Netflix's broader strategy to build a robust advertising offering by providing detailed metrics on ad performance and audience engagement, attracting more advertising budgets despite ad revenue still not being a major contributor to its bottom line.?>

Shoppable TV vs. T-Commerce? Sounds like the same thing, yeah? Well, definitions states that T-Commerce is any purchase that occurs due to a TV commercial, while shoppable TV is purchasing directly from a TV. The hard part is moving more T-Commerce into directly attributable purchases. QR codes have been a Segway into that, but also emerging are “text me” options, which allows users to save the info for later. Viewers might not want to buy a new pan in the middle of watching the latest bake-off, but the moment can still illicit user purchase intent ??>

Speaking of Prime Shopping… Amazon has showcased impressive advertising growth, reporting a 24% increase in advertising revenue, climbing from $38 billion in 2022 to $47 billion in 2023. This growth is not just about traditional ads, but involves creating seamless shopping experiences that blend naturally with consumer search results, enhancing user engagement. Amazon has expanded its advertising scope beyond physical goods to include sponsored content within Prime Video recently, which has driven much of the growth.?>

?Quality Ad of the Week?

Hypnovels, a new generative AI tool developed by Silverside AI, put out an ad this week. They offer creative method for authors to promote their books by transforming text into dream-like, audiovisual excerpts shared across digital platforms. The hope is to get more people back into reading! Read More>