Home Ad Exchange News Can These Fortresses Be Breached?; An Ad Revenue Reality Check

Can These Fortresses Be Breached?; An Ad Revenue Reality Check

SHARE:

The Fortresses Of Anti-Solitude

It’s worth reading at length, but a Q&A between Ben Thompson of Stratechery and Eric Seufert, writer of Mobile Dev Memo, elaborates on platform advertising dynamics, particularly for self-attributing networks like Facebook, Snapchat and Apple. 

Will ATT and Apple’s privacy policies prove more damaging than expected to platforms like Facebook or Twitter? According to Seufert, “Instead of the brute force guerilla ‘collect all the data and attach it to a user’ approach,” self-attributing networks will move to “more sophisticated and technically demanding statistical and probabilistic approaches.” 

Another question: Will content fortresses (’roided-up walled gardens) consume online advertising? More content could shift to the open web, Seufert said. “Maybe this just reshapes our relationship with content and reshapes the things that we interact with on our phones and elsewhere. It’s also a very exciting time because just these ideas that we held as absolute have been shattered.”

Cruise Control

Ready for an advertising reality check? Facebook, YouTube, Twitter, Snapchat, Roku and Spotify saw revenue growth of 63%, 89%, 62%, 139%, 225% and 90%, respectively, over the past two years (which accounts for last year’s wacky results). There’s a clear trend for publicly traded online platforms compared to broadcasters (H/T @RichLightShed of LightShed Partners).

Don’t bother parsing the stats, just consider that category compared to ViacomCBS, NBCU, Fox, Discovery and Turner, which saw revenue growth (or … not) of 2%, 0%, 9%, -3% and -4%.

Relatively low year-over-year growth rates can be misleading, especially because huge businesses grow more slowly even while adding billions of top-line growth. But in this case, the broadcasters have no such excuse to fall back on. They’d be middle of the pack compared to digital-first rivals. 

The VC Fee 

The latest tool in the influencer monetization toolkit may be … VC investment? YouTube creator Marina Mogilko, who built four channels – a Silicon Valley-based lifestyle channel under her name, plus separate language-learning accounts – recently took a $1.7 million funding guarantee in exchange for 5% of her future revenue on the platform, Insider reports. 

The VC firm Slow Ventures is backing Mogilko and has $20 million from a recent fund earmarked for similar creator investments. 

Creators often bring in diversified revenue similar to many traditional VC-backed startups, but instead they work off cash flow and have little to no back-end business, said Slow Ventures partner Sam Lessin. 

The funding will help Mogilko focus on her content, she said, instead of being constantly beholden to sponsors and having sponsored content outweigh original content. “Google AdSense is a good stream of revenue, but I also have to take a lot of partnership deals in order to sustain a stable revenue stream,” Mogilko said. “That takes a lot of creativity away.” 

But Wait, There’s More!   

Dun & Bradstreet acquires Eyeota and NetWise, two ad tech data firms. [Mediapost]

Accrue Savings launches tool to diversify payment options for brands and merchants. [release]

TikTok is on TV screens now. Is it still TikTok? [WSJ]

Snowflake and Habu release cloud data clean room integration. [release]

For publishers, the post-cookie world is an opportunity to get the upper hand. [Digiday]

America loves choices. But not when it comes to phones. [NYT]

Must Read

Tal Jacobson, CEO, Perion

Affle Acquires Perion For $420 Million, Because ‘Synergies’

If you ask the executive leadership of Affle and Perion why the two companies are merging, the answer you’ll get is “synergies.”

Konskie, Poland - December 02, 2024: Fox Corporation logo displayed on mobile phone

Fox Doesn’t Want To Talk About Roku, But It’s Got Lots To Say About Tubi And Politics

A combo of Tubi, sports and political ads powered Fox’s growth this last quarter, even as Fox News lost viewers and the Roku deal awaits DOJ clearance.

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

Smart Acquisition Or Frankenstack? Stagwell-Freestar And DoorDash-Instacart

It’s fall, and M&A is in the air. Two acquisitions happened this week: Stagwell bought Freestar, and DoorDash bought Instacart.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Los Angeles, California - 26 February 2023: Reddit social media platform displayed on smart device

Reddit Is Going Login Only. Blame Google

Starting in Q4, Reddit will test logged-in-only mode to protect its user engagement, improve ad targeting and keep AI from scraping its content.

DoorDash Acquires Instacart As Consolidation Comes For Mobility Media

DoorDash on Thursday confirmed the rumors and announced its intention to acquire Instacart at a $17 billion valuation.

Meta’s $25 Billion Privacy Fine In New Mexico Is A Big Number. But Is It A Big Deal For Ad Tech?

Last week, a district court judge in New Mexico ordered Meta to pay $25 billion for misleading Facebook users about how it handled their data. Does it matter?