Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
My Handshake Brings All The Boys To The Mall
Amazon’s retail marketplace is a mammoth, slow-growing business. Social media commerce is a fraction of online shopping, but it has buzz and growth behind it.
That said, Amazon is well positioned to seize the growth of social app-based shopping. It has third-party ad-serving partnerships with Pinterest, Snapchat, Facebook and Instagram, which are highly advantageous to Amazon Advertising, since the platform retains all the data and direct customer relationship.
And Amazon’s partnerships with Meta’s apps and Snapchat allow Amazon product purchases without exiting the app. Again, it’s Amazon rather than the social net that claims the payment and direct customer relationship.
Amazon is now close to inking deals with TikTok and Pinterest that would also allow purchases without users exiting their apps, The Information reports.
For Amazon, the trend represents an acknowledgement that it can’t just astroturf its own social network or live-shopping app, or awkwardly fit Twitch into the role.
For Meta, the partnership with Amazon is worth giving up the main benefit – customer and payment info – if users become acclimated to buying on Instagram and Facebook.
Which might explain Amazon’s internal name for the new in-app social shopping product: “Project Handshake.”
How Do You Like Them Apples?
Apple updates are wreaking havoc on publishers again, this time on two distinct fronts.
First, Ad Age reports that Apple is testing a new feature in Safari called “Distraction Control,” which hides website pop-ups and autoplay ads. It’s not technically an ad blocker – the effect is temporary and relies on user input – but for some publishers and advertisers, it might as well be.
Meanwhile, as part of Apple’s new DMA compliance plan, EU developers will be allowed to link to external purchase options outside of iOS apps. Except, as The Verge notes, Apple is demanding steep “store service fees” from these developers, which still apply even if the user never clicks the external link.
In other words, if the developer even displays the option to subscribe or make purchases around the iOS fee, Apple will add a different 20% fee anyway, regardless of whether the user makes that purchase.
The new policy also continues a years-long trend of Apple proposing remedies to antitrust rulings that run directly contrary to the heart of the law or ruling and flaunt Apple’s brazen noncompliance to regulators.
So Many Ventures, So Little Capital
Being a venture capitalist is just so hard these days, sources are telling Business Insider.
After years of being seen as a hot, lucrative new career path in the business world (as well as an easy villain for frustrated entrepreneurs and political progressives), recent market downturns and rising interest rates are causing the venture capitalist industry a lot of grief.
This year, VC firms will reportedly raise 48% less than they did in 2021. Some are missing their fundraising targets, and others are laying off staff. Not to mention all the complaints of increased competition, less opportunities for junior investors and “tedious” cold emailing processes.
Maybe the V in VC should stand for “violin,” as in “world’s tiniest.”
Joking aside, a lot of incoming money followed by relative stagnation isn’t good for any industry, venture capital included. After all, just look at how the ad tech industry’s been dealing with a similar investment slowdown.
But Wait, There’s More!
Amid uncertainties, Silicon Alley’s leading lights collectively shrug at Google’s cookie news on earnings calls. [Digiday]
Be careful about relying on “kidfluencers” for your social advertising strategy. [Ad Age]
Warner Bros Discovery shuts down the Cartoon Network’s streaming site to push viewers to its Max subscription service. [Variety]
Chrome is the quiet fulcrum of Google’s dominance. [ProMarket]
You’re Hired!
Spring Xu Rouhana will join eyeo as its new CFO. [Release]
