What happened and who is to blame? (April 1 - 7, 2024)

Sixth edition of news from the world of AdTech and PubTech (previous: 5, 4, 3, 2, 1).

Advertisers Paid for Ads on Forbes.com, but Some Ended Up on a Fake Website

Advertisers were met with an unpleasant surprise: some of their ads ended up on a fake website. Users redirected to this domain encountered pages overloaded with advertisements, causing concern in the industry. Forbes maintained a hidden alternative version of its website where ads intended for the main resource were placed. Despite Forbes' claims that the audience of the fake website represents only a small part of their user base, their attempt to whitewash themselves failed to avoid criticism and loss of trust from advertisers. The situation raises questions about the transparency and reliability of advertising technologies in the industry and may prompt increased scrutiny and regulation in this area.

Ad Spending in 2024 to Exceed Expectations

In 2024, a significant increase in advertising revenue across various sectors is expected to surpass all expectations. According to forecasts from several American research agencies, 2024 promises to be the most favorable year for the advertising industry. IPG Mediabrands predicted in December of last year that advertising spending would increase by 8.4%, but last week its research division, Magna, raised the forecast, stating that revenues would grow by 9.2% to reach $390 billion. The growth in spending is driven not only by political advertisers. Retailers and tourism brands will increase ad spending by 9%, and the automotive industry will increase spending by 6% compared to 2023. Advertising on social networks will grow by 14% and reach $80 billion, surpassing the volume of advertising on traditional television. Advertising on streaming platforms will continue to grow by 13% and reach $10 billion thanks to advertising on the Amazon Prime platform.

Google Chrome Cookie Disablement: What's Happened in 4 Months

Four months later, Google continues the process of phasing out third-party cookies in the Chrome browser (... and sets new records for ad revenue). The experiment still involves 1% of users. While market experts assess this small breakthrough, questions arise about the future of technologies and rules that will shape the next stage of digital marketing. However, despite this small victory, most data still reside in the third-party world, providing Google with the opportunity to strengthen its position in the advertising technology market (and the corporation shows no signs of stopping). Resolving data privacy and advertising management issues is expected to be one of the top priorities in this digital circus.

What to Expect in the Second Quarter of 2024?

The second quarter of 2024 is characterized by a number of changes in the advertising industry (see publisher reviews of the first quarter). One of the key trends is the continued growth of programmatic video, which not only captures users' attention but also helps advertisers more effectively achieve their goals. With the increase in direct and curated deals, advertisers gain access to premium inventory, which contributes to the emergence of a stable source of income for publishers. At the same time, it is important to consider the trend of separating in-stream and out-stream advertising, as well as the increasing use of 1st party cookies in the context of privacy regulation. There is also expected to be an increase in interest in server-side bidding, which can optimize ad call operations and improve the user experience. Meanwhile, smaller publishers are at risk of losing competitive advantages due to the attraction of direct deals by major platforms, so it is important for them to work more actively with narrow content niches to preserve revenues. Overall, the second quarter of 2024 implies increased efficiency, improved user experience, and strengthened control over deals in programmatic advertising, which requires flexibility and awareness from all participants in the advertising ecosystem.

Alphabet Considers HubSpot Offer: What It Means for AdTech

Alphabet, Google's parent company, is considering acquiring HubSpot, an online marketing software company with a market value of $35 billion, sources familiar with the situation report. The potential acquisition would be the largest in Alphabet's history and would allow the company to effectively allocate a significant portion of its capital, which reached $110.9 billion by the end of December. However, at this point, Alphabet has not yet made an official offer to HubSpot, and there is no certainty that it will, according to sources who requested anonymity. If the deal goes through, it will not only expand Google's offerings in the growing CRM market but also strengthen its position in cloud computing, where the company seeks to narrow the gap in the competitive battle with rivals such as Microsoft and Amazon.

Will a SaaS SSP Help Publishers?

Publishers are aiming for strategic partnerships with SSPs, and perhaps SaaS will be the answer. In the traditional revenue share model, publishers and SSPs interact closely, but such a model does not provide transparency or strategic partnerships. At the Publisher Forum New Orleans event, representatives from DSPs, SSPs, and publishers discussed how relationships and the industry can evolve. The discussion raised questions about SSP transparency, their evolution, and the potential transition to a SaaS model. Industry changes are forcing SSPs to rethink priorities, prioritizing advertisers over publishers. According to discussion participants, transitioning to a SaaS model could be key to improving partnerships between SSPs and publishers, providing transparency, budget clarity, and improving inventory quality.

Groundbreaking Ad Platform for Publishers

PubCircle is a new global advertising platform designed to increase publisher profits and maximize their revenue. PubCircle understands the importance of strategically generating demand to optimize publisher revenue, so it offers a comprehensive approach using innovative Prebid Wrapper technology. With Prebid Wrapper, PubCircle integrates partner adapters into its system, connecting various demand sources through Prebid js, Prebid Server, OpenRTB, VAST, and JS tags.

Forbes Tested Various SSPs and Increased Revenue

Usually, advertisers and agencies are clients of DSPs, and publishers are SSPs, but this may soon change. Forbes conducted a series of tests with various SSPs. In this material, Forbes shares the results of its work.

Preparing for Google Privacy Sandbox: Insights from Remerge

Adjust and Remerge are closely collaborating to help marketers adapt to the "privacy era" for mobile marketing and the launch of Google Privacy Sandbox. The impact of Privacy Sandbox on Android, testing Google's secure audience API, and retargeting strategies in new conditions are considered. Remember that there are serious concerns about ad rendering slowdown due to Privacy Sandbox.

SSPs Seek to Take a More Active Role in the Industry

SSP representatives disagree with the notion that they are just "dumb pipes" (simply transmitting data from buyers to publishers and vice versa, about the importance of SSPs in the ecosystem), emphasizing their importance and evolution in the face of changing market dynamics. In recent years, they have been responding to new challenges by launching their own products. Despite the trend of disintermediation in the advertising chain, SSPs continue to adapt and evolve, highlighting their expertise in revenue optimization for publishers and the importance of their role in the advertising technology ecosystem.

Optimization Strategies and the Importance of CLS for Publishers

The importance of Cumulative Layout Shift (CLS) in website performance and user experience is undeniable. The optimization of this metric determines both the success of publishers' monetization efforts and the level of user engagement. This review examines the significance of CLS for publishers, including its impact on search engine rankings, user experience, and monetization success.

ANA Launches Programmatic Benchmarking Service for Marketers

ANA is launching an advertising transparency program to help its members better control advertising spending, especially in the programmatic space. They plan to conduct a "programmatic benchmarking report," where participants will evaluate their supply chains. This is in response to marketers' concerns about insufficient transparency and increased demands for accountability.

Embracing a Cookieless Future

A Teads column dedicated to changes in a world without cookies. The company shares its ideas and developments in replacing this technology.

Europe Investigates Whether "Pay or Okay" Model Violates Laws

The European Commission has launched an investigation into Alphabet, Apple, and Meta under the Digital Markets Act (DMA). Meta is under scrutiny for the "Pay or Okay" model, which was introduced last October in the EU, EEA, and Switzerland. The accusations are based on two violations: collecting consent for processing personal data once and applying it to two different "core platform services," as well as depriving consumers of alternative business model choices. Despite Meta's previous compliance with GDPR regarding this model, the European Commission appears to be using the DMA as a pretext to attack personalized advertising. While data protection regulation and promoting competition are important, it is essential to recognize that consumer privacy and personalized advertising can coexist, and any regulatory body should facilitate the use of new methods of preserving privacy and consumer choice while ensuring the economic benefits of personalization.

Brands Set More Restrictions on Ad Agencies' Use of AI

Brands are wary of the unintended consequences of using artificial intelligence. New restrictions on AI usage are becoming increasingly common in agreements with advertising agencies. Companies like Google, Meta, Microsoft, and others are developing their generative AI tools, but errors in working with such tools provide reason for caution. However, despite potential risks, AI remains a useful tool in agencies, where it is used for campaign strategy analysis and creative thinking.

Report on Media and Advertising Investments in Turkey 2023

The recently published report "Turkish Media and Advertising Investments by the end of 2023" presents impressive figures on the industry's growth. The total volume of investments in media and advertising increased by 120%, reaching 140.69 billion Turkish Lira. Digital media saw a growth of 72.6%, with video advertising, digital audio, and Connected TV standing out in particular. This growth indicates the increasing power and potential of digital media and underscores their significance in Turkey's modern advertising industry.

New Trends in Programmatic Purchases: Using Metadata Instead of Audience Data

Marketers are increasingly turning to metadata to improve ad targeting in internet advertising and Connected TV as data quality deteriorates with the gradual phase-out of third-party cookies. Metadata includes signals such as ad-to-content ratio. These historically underestimated signals are becoming increasingly important due to the decline of cookies. Marketers are forced to seek alternative signals for targeting, and metadata provides an effective solution, allowing them to improve the quality of purchased media resources and increase campaign targeting accuracy.

In 2024, Publishers Should Rely Less on Subscriptions

Publishers are increasingly relying less on subscriptions as a source of revenue. Digiday survey results show that subscriptions are no longer as important to publishers as they used to be. A significant portion of publishers (44%) stated in the first quarter of 2024 that they do not generate revenue from subscriptions. This is significantly higher than the 26% who said the same six months ago. The trend of a decreasing share of publishers receiving significant or very significant revenue from subscriptions has been observed over the past year and a half. In early 2022, 27% of publishers reported that subscriptions accounted for a significant or very significant portion of their revenue, which decreased to 7% in early 2024. Interestingly, more publishers noted earlier this year that subscriptions account for a very large portion of their revenue compared to those who indicated that they contribute a significant portion of revenue (5% versus 2%). It seems that publishers are beginning to realize that subscriptions no longer play as crucial a role in revenue generation as they once did.

Wells Launches First Cookieless Ad Campaign Using AI

Wells conducted its first campaign using cookieless segmentation, leveraging Havas Media Network's unique solution - Converged. Since the introduction of the strategic vision for data usage for Wells in November 2023, proprietary data has been actively collected, including site visit profiles.

Impact of Cookie Deprecation, Rise of First-Party Data, and User Privacy Regulations on Digital Advertising

In 2024, data will play a more significant role in marketing than ever before, while the landscape in which this data is collected, stored, and used will change. New trends will set the tone for further development in the advertising industry. It goes without saying that Google's reduction in the use of third-party cookies will lead to increased interest in antitrust regulation issues. On the other hand, the rise of first-party data and strict privacy rules will push brands to participate in consumer data protection.

Resurgence of Mergers and Acquisitions Trend in Ad Tech

Major deals in the AdTech industry, such as Cadent's acquisition of AdTheorent for $324 million, hint at a possible resurgence in M&A activity. However, the overall atmosphere surrounding deals this year is significantly different from previous years. Public companies have substantial cash reserves and are ready for investments. It is expected that new deals will be strategically aimed at meeting specific needs in the CTV and Retail Media sectors.