Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
Search And Discovery
The Department of Justice’s antitrust suit against Google began in earnest this week, with Google economist Hal Varian taking the stand and both sides presenting their opening arguments.
The case could have major repercussions, just like the government’s 1990s antitrust case against Microsoft, which just so happened to pave the way for a little-known startup called Google with the unbundling of Internet Explorer from Windows 95.
But regardless of the eventual outcome here, Google will no doubt squirm under the revelation of private business deals and communications as the case moves from the legal discovery process to the courtroom.
We’ve already heard that Apple initially used Google Search by default without payment. Google then approached Apple about a rev-share, Bloomberg reports, which was part of Google’s plan to “weaponize” default search agreements to block competition, per the government’s lawyers.
For instance, Samsung and AT&T tapped Branch Metrics to create a cross-app search service that would pull info from apps after download. But Google blocked that nascent product based on its exclusive search distribution deal with the carriers.
In 2007, Apple told Google it wanted to offer iPhone customers a choice between Google and Yahoo.
“No default placement, no revenue share,” Google responded by email.
Max Stays Minimal
Does the adage “less is more” apply to streaming TV ad loads?
Jon Steinlauf, head of US ad sales at Warner Bros. Discovery, says yes.
All of the major ad-supported streaming services recently hiked their average ad load, except for Max (née HBO Max).
These moves make a kind of sense: More ad slots means more revenue. We’ve seen this dynamic play out on linear TV, where the ad load has skyrocketed in the past decade as viewers switched to streaming.
But buying commercials in a scarce and premium inventory pool has “more value and impact” for the advertiser, whereas the “greed” of simply increasing ads reduces the effect, Steinlauf said during NextTV’s Advanced Advertising Summit in New York City earlier this week.
Yes, that’s a self-serving comment, but it highlights how WBD is trying to differentiate Max from other streaming services.
Steinlauf also shared more details about how advertising works on Max.
On average, Max has two to three minutes of ads per hour of content, but shows that are still in production (such as “House of the Dragon”) have no midroll ads, only pre-roll.
The Retail Wags The Dog
TikTok and Amazon have grown strangely chummy as the platforms try to cement their respective dominance in online retail, Ad Age reports.
Amazon is the defacto buying platform for most US shoppers, but the power of “TikTok made me buy it” can’t be denied. And TikTok is the hot social media platform with the youths, but Amazon has ambitions in social shopping and content creation. Each is leaning on the other to fill in where it’s weak.
Last year, Amazon launched a social platform, Amazon Inspire, complete with a TikTok-esque video feed. But the platform has failed to gain momentum and has low payouts to creators. So Amazon still needs TikTok’s creator network to drive purchases on Amazon. In the first half of 2023, Amazon increased its ad spend on TikTok by 30%, according to Sensor Tower.
This type of frenemy relationship isn’t new, though. Amazon was the top Google Search advertiser for years, before becoming Google’s main search competitor.
But Wait, There’s More!
TikTok Shop, the social platform’s ecommerce marketplace and affiliate program, officially launched in the US. [TechCrunch]
Unity will charge developers that use its game creation engine on a per-install basis. [Mobile Dev Memo]
The FTC fines online shoe seller Hey Dude $2 million for suppressing negative reviews. [release]
Editorial “co-pilots” and monetizing archives: Generative AI in action at ITN, Future, Bauer, AP and others. [Press Gazette]
Criteo announced the public release of Commerce Max, its retail media DSP that spans on-site and off-site placements. [release]
You’re Hired!
GroupM’s Mindshare hires Tom diSapia as global chief strategy officer. [MediaPost]
Ogury taps Wilfried Schobeiri as CTO. [release]
Playwire promotes Stacy Willis to COO. [release]
