Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
Scaling The Wal’
Many big retailers are down on total volume, but Walmart shares were up 7% yesterday after the company reported a slight increase in overall sales. Walmart also had a strong uptick of almost half a percent in profit margin. When you sell as much as Walmart does, picking up an extra .43% really matters.
But what are the reasons behind the profit-margin growth?
“If you took advertising and membership, those two alone accounted for over 50% of our operating income growth,” CFO John Rainey told an investor.
Walmart’s global advertising business, which is recorded in either net sales or as a reduction to the cost of sales, was up 26% overall, including 30% growth for Walmart Connect in the US. Walmart only discloses ad revenue once per year. In February, it reported 2023 annual ad revenues of $3.4 billion. But the growth of advertising, the Walmart Plus membership program and the online marketplace business – which carries millions of items not sold in Walmart – operate like a flywheel.
When the ecommerce marketplace grows, it “helps pull through things like membership and advertising and fulfillment services,” said CEO Doug McMillon on the investor call.
Hash It Out
Is The Trade Desk hashing its way to an inevitable showdown with regulators?
TTD CEO Jeff Green noted during the company’s Q2 earnings call last week that its alternative ID program, UID 2.0, has “reached a critical mass of adoption.”
UID 2.0 uses hashed emails (although it still incorporates cookies while it can) to anchor its profile data. But the FTC warned advertisers in July that hashing sensitive data, including email addresses, doesn’t make the data anonymous or satisfy privacy requirements.
Given UID 2.0’s adoption as a long-term replacement for third-party cookies, TTD could find itself getting some unwanted regulatory attention, writes Mike Shields at Next In Media.
This isn’t exactly new. For years, UID2 has been a bit of a hot potato. For example, TTD hasn’t been able to find any independent entity to serve as the administrator for UID 2.0.
Shallow Streams
Amazon Prime is making the first season of “Lord of the Rings: The Rings of Power” available for free for two weeks on Samsung TV Plus (which sounds like a subscription, since it’s got a “plus” at the end, but it’s actually a free streaming service on Samsung TVs and devices).
On the one hand, Amazon needs as many eyeballs as possible on its hugely expensive series before season 2 comes out, Variety reports. But the partnership also points to an uncomfortable fact for the entertainment industry.
The biggest studio companies – like Netflix, NBCUniversal, Amazon and Disney – are taking the content fortress approach of hoarding their shows and movies. But once upon a time, TV shows were cemented as hits after being picked up on other stations. The content fortress strategy is a market favorite, but it prevents potential breakout shows from, well, breaking out, because they’re trapped inside one service or another.
No Peacock-exclusive program, for example, can reach critical mass. Consider “The Office,” which was the most-streamed show for years – before NBC pulled it from Netflix to exclusively live on Peacock. But, then again, one of the biggest recent breakout hits is “Suits,” another NBC show, but one that was languishing in obscurity – until NBC let Netflix have it.
But Wait, There’s More!
Meta killed CrowdTangle, an “invaluable” research tool, because what it showed was inconvenient. [Engadget]
The IAB Tech Lab has updated the US section of its Global Privacy Platform to reflect multistate privacy agreements. [release]
The FTC finalizes a rule banning fake reviews and testimonials. [release]
After a fatal food allergy reaction in a Disney Springs restaurant, Disney is arguing that the widower waived his right to a trial by accepting the Disney+ end user agreement. [Law & Crime]
A judge is allowing a copyright infringement case brought by a group of artists to proceed against Stability AI, Midjourney, DeviantArt and Runway AI. [The Hollywood Reporter]
You’re Hired!
YouTube alum Adam Smith is the new chief product and technology officer for Disney entertainment and ESPN. [The Hollywood Reporter]
Cumulus Media promotes Carolyn Chauncey to SVP of marketing and podcasting. [release]
Composable CDP GrowthLoop appoints Chris O’Neill as CEO. [release]
8/16: Updated to reflect the nature of the current opt-out consent framework in the US.
