Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
A Betsy On Etsy
Etsy should be in dire straits. In 2020, a quarter of Etsy’s gross merchandise was homemade masks. Pandemic ecommerce numbers deflated, Apple ATT reversed the mobile economy, then the recession hit.
Yet, a dollar on Etsy in December 2019 (just before the first news of the coronavirus) tripled the share price performance of Shopify, eBay or the Nasdaq, The Wall Street Journal reports.
Etsy made decisions investors like – launched an ad platform, beefed up ad placements and increased seller fees by 30%. Etsy began requiring advertising fees when it launched off-site listings. Four percent of sellers left in revolt, but the ad revenue and higher commission on sales more than make up for it.
Etsy has navigated treacherous paths as an online marketplace.
For example, if Shopify floats the idea of an ad platform, merchants shoot it down. Something about Shopify picking and choosing between sellers who offer similar products is verboten; Etsy pulls it off. Etsy feels personal between seller and customer but has the marketplace approach of eBay or Amazon.
Another relative strength is that Etsy indexes to the web. It’s less app-dependent and reliant on mobile growth marketing, which cushions Etsy from the worst blows of ATT.
Skin In The Game
Rebecca Ruiz, a New York Times reporter covering sports gambling laws, addiction and sports corruption cases, has a new story about how getting into sports gambling (for business, not recreation) turned her from a passive and disinterested sports viewer to a full-throated fan.
It is not a coincidence that the leagues got behind betting apps so quickly. Or that Fanatics, the merchandise and online retailer co-owned by the major US sports leagues, is launching a betting app and gambling unit in January.
It covers Ruiz’s initiation into sports gambling – lines, wagers and betting tactics. But for those initiated in the ways of data-driven advertising, the programmatic tactics also show through clearly. She uses three popular apps, and all deploy highly effective promotional campaigns, marketing and push alerts to onboard her with can’t-miss deals, educate her on the sports and keep her engaged and redepositing to the account.
Occasionally, an app would surface a pop-up cautioning her about time or money spent, she reports. “Though such push alerts aren’t required in New York or most states, some companies have instituted them, seeking to telegraph responsibility and, perhaps, stave off stricter consumer protection mandates.”
The Stream Dream
Disney CEO Bob Iger, who, in 2022, left and then resumed the job in a drama-laden reversal, has a two-year window to set the entertainment leader on a sustainable path in new media, Insider reports.
But as streaming services duke it out for ad dollars, they’re sinking billions into their plans. Just weeks before the launch of Disney+ with ads, Disney reported operating losses for its streaming business of $1.5 billion.
Disney announced additional price hikes for its streaming tiers to make up for the losses (and to make the cheaper ad-supported subscription a better value for price-savers). Like everyone else, Disney has been trying to figure out the streaming revenue balance. But price hikes also aren’t unique to AVOD. Disney hiked up theme park prices in December, which may mean bigger blowback among fans (who grow to love Disney through streaming its shows).
But Wait, There’s More!
Google tests new “Sponsored” label on desktop search ads. [Search Engine Land]
What publishers want from platforms in 2023. [Digiday]
Michael Bloomberg eyes purchase of WSJ-parent Dow Jones or Bezos-owned WaPo. [Axios]
Six predictions for Apple’s growing ad business in 2023 – from ads on Apple TV+ to building and buying ad tech. [Insider]
2022: Media’s annus horribilis. [Variety]
