Home Ad Exchange News Facebook’s New Algorithm Impacts Pubs Negatively; Record Labels Are Unhappy With YouTube

Facebook’s New Algorithm Impacts Pubs Negatively; Record Labels Are Unhappy With YouTube

SHARE:

turndownthevolumeHere’s today’s AdExchanger.com news round-up… Want it by email? Sign-up here.

Diminishing Returns

“Facebook was built on the idea of connecting people with their friends and family,” writes Adam Mosseri, the company’s VP of product management for its news feed, in a blog post introducing an algorithm change lowering the reach of publisher stories. Mosseri is breaking some pretty tough news, as many pubs have come to rely on Facebook for traffic and revenue. These media companies once again find themselves out in the cold after a sudden policy shift. You might have noticed Mosseri doesn’t mention brands or media companies as a part of Facebook’s mandate. So what power do pubs have in this situation? Ha. That’s a joke, obviously. The NYT has more.

Oversight

Record labels aren’t happy with YouTube, which has nudged its royalty rates to fractions of a penny per play and allegedly fails to protect copyright infringement, The Wall Street Journal reports. Sony said manual searches on YouTube uncovered 1.5 million illicit recordings, a loss of $7.7 million in ad revenue. YouTube, however, claims its $60 million tech is sound, and that Content ID catches over 99% of illegal content. YouTube can also fairly claim a key role in keeping the industry afloat as retail music dwindles to nothing (amounting now to little more than trendy vinyl sales), and the promotional value of its billions of music video views isn’t neatly encapsulated by ad revenue. More.

The Mighty Amazon

Amazon and Moto G have worked out a deal where Prime members who allow targeted ads on their lock screen can buy the phone at a 25% discount. As Gizmodo notes, $50 off a $200 phone may not be a killer deal when you consider the countless times a user looks at his or her lock screen over the life of the phone. Still though, Prime members have shown a willingness, an eagerness even, to sacrifice data and ads in exchange for savings. And don’t act surprised when the manufacturers involved in the deal (Moto and the less well-known BLU) end up atop Amazon’s coveted electronics best-seller chart. More at Wired.

Snapchat Goes Bigger

Snapchat’s platform APIs are now available to advertisers at a $100,000 minimum, Digiday’s Garett Sloane reports. When Snapchat opened its platform to ads in 2014, spots cost around $750,000. “Snapchat is about to go gangbusters and scale to a billion in revenue so quickly with this API. They are getting rid of high minimums so brands can experiment in ways they haven’t been able to yet,” said one agency executive. More.

The Cheap Seats

The International Olympic Committee is in fits over Snapchat and live social media broadcasting, which threaten to undermine the value of its broadcast rights. NBC paid $7.8 billion for the next decade of Olympic Games, but what happens when athletes and individuals can create their own content to buy against? In 2012, the Olympics went so far as to cover the logos on stadium toilet paper dispensers to keep nonpaying brands from reflected Olympic glory, writes the International Business Times. And it isn’t just social media. Publishers are gearing up to offer non-Olympic advertisers a way to tap Olympic audiences without paying the premiums demanded of NBC sponsors [AdExchanger coverage].

But Wait, There’s More!

You’re Hired!

Tagged in:

Must Read

Amazon Faces An Easy Boycott But An Existential Question

The Amazon advertising boycott last week wasn’t really about Amazon’s ad platform as much as it was a dispute over evolving seller economics. And this raises a fundamental question for many ecommerce marketers and entrepreneurs, one that’s been lurking in the back of their minds: Can you even build a brand on Amazon anymore?

Unity And Index Exchange Unite Behind Gaming Data In Non-Gaming Channels

For the first time, Unity’s gaming audiences will be available for ad targeting outside the Unity platform, with Index Exchange using Unity’s data to curate web and CTV inventory.

Brand-Trained Agents Can Give Marketers A Fuller View Of Their Customers

Agentic commerce company Envive builds on-site agents for brands like footwear company Clove, painting a clearer picture of what their customers are looking for.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Don’t Worry About Netflix – It’s Doing Fine Without Warner Bros. Discovery

Paramount might have outlasted and outbid Netflix in the competition to acquire Warner Bros. Discovery, but Netflix is not overly fussed about the loss.

Paramount’s Upfront Pitch Is About Three Things

Paramount is merging the ad tech stacks behind Paramount+ and Pluto TV, releasing a new performance product, offering more control over ad placements and introducing dynamic ad insertion in live sports.

Hard Truths For Retail Media At The IAB Connected Commerce Summit

The IAB’s Connected Commerce event in New York City this week felt to me like the retail media industry’s first sit-down explanation to a child who is now a “big kid” and must act accordingly.