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A Programmatic Standoff
Agencies sing the praises of open marketplace bidding. But clients aren’t listening.
Neither company stakeholders nor advertiser clients are fully convinced that bidding on the open marketplace is effective enough to justify all the expenses, Digiday reports. Transparency – rather, the lack thereof – is to blame.
The C-suite still sees programmatic as a means to buy cheap inventory with insufficient reporting, while clients are reluctant to cover commission costs in addition to all the hidden fees agencies throw in, media buyers say.
Perhaps the only way agencies can persuade clients to spend bigger programmatic budgets is to address the brewing tension with clients over all those hidden fees.
Clients have been demanding more transparent breakdowns of fees and charges attached to programmatic campaigns. But agencies keep that information private, in part, because they mark up prices attached to principal-based deals, which often include flat-out arbitrage.
The lack of transparency could backfire, an exec said on condition of anonymity. “The more agencies have hidden fees, the more we’re going to tarnish the agency reputation and the trust of our clients.”
Hulu Hullabaloo
Disney is so vocal about Hulu’s role in its streaming future, it’s almost easy to forget Hulu doesn’t fully belong to Disney.
Disney only owns two-thirds of Hulu. And although Comcast expects to sell the remaining third, considering how much it leans on Peacock, the two companies are at an impasse over how much Disney should pay for full control over Hulu, WSJ reports.
Both sides have hired banks to appraise the value, which, unsurprisingly, didn’t result in an agreement. Comcast estimated its share of Hulu at more than $40 billion, while Disney’s side pinned it at about $27.5 billion – the floor price the two had agreed on several years ago.
The next step is for a third-party appraiser, RBC Capital, to present an independent valuation estimate.
Disney needs full ownership of Hulu to maximize the subscription and ad revenue growth coming from the new app that combines Disney+ and Hulu (and soon, ESPN+). The combined app is a draw for advertisers that like the convenience and cost efficiency of buying ads across multiple streaming platforms in one place.
Sooner rather than later, Disney will have to decide if it’s willing to pay to keep all that revenue growth to itself.
The New Book Sellers
Book publishing is in a weird place right now, and online marketing is at the center of it.
The road for new authors to become bestsellers now runs through social media or online platforms.
The New York Times writes up “The Shadow Work Journal,” a self-published nonfiction book by Keila Shaheen, a 25-year-old with a background in marketing, which became an Amazon chart-topper due to its success on TikTok. Kohn Glay, a creator and proponent of the book, earned $150,000 in affiliate sales he generated on TikTok.
There are other examples, too. Perhaps you know the “Bobiverse” sci-fi series, which was a major bestseller based on huge sales in its native Audible audiobook category.
The Times writes that Shaheen’s success on TikTok and Amazon “has left many authors and publishers wondering whether that formula can be replicated,” as publishers figure out how to navigate “the fast moving, algorithm-driven marketplace that threatens to cut them out entirely.”
But Wait, There’s More!
Leaked docs reveal internal Google Search info. [Business Insider]
What advertisers must consider about the new Google Search experience. [Adweek]
Skydance Media sweetens its offer to Paramount Global (again) while the programmer continues talks with other suitors. [WSJ]
TikTok is reportedly cloning its recommendation algorithm to create a separate US version. TikTok denies this. [Reuters]
