Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
Poison Apple
Disney+ and Hulu are free.
Not free to subscribe, mind. Free of Apple’s 30% cut, at least for new sign-ups.
Starting last week, Disney’s streaming services began diverting iOS users to an external site to create an account and subscribe. Then users just log in and Disney doesn’t pay Apple’s triple tithe. Disney joins Netflix, Spotify and others that have done the same since Apple was compelled to loosen its iron grip on iOS payments.
9to5Mac notes that Disney benefited from being in the Apple Video Partner Program, which promoted its content in search and Siri, as well as reduced some subscriber fees from 30% to 15%.
Although, when Apple says it provides a marketing boost to media partners, it’s still about Apple. For instance, in 2021, Apple was found to be discreetly serving ads on behalf of some apps without developers’ knowledge so it could cash in on its 30% cut. Apple was locking in new subscribers to apps like Masterclass, Tinder and Max, which have high lifetime value and are the types of well-known brands likely to divert new subscribers.
IPO, More Like IPee-Yew
The tech IPO market is fizzling pretty badly.
The stock market has been in high gear, led by tech stocks like Apple, Meta and Nvidia, The Information reports.
“You would think there would be more IPOs,” says Denny Fish, a tech investor at Janus Henderson Investors.
The tough antitrust environment should be a boon to IPOs. Figma, the design software, is poised to IPO next year, after Adobe abandoned a proposed acquisition in the face of regulatory disapproval.
The problem is investors don’t think the “growth stocks” are worth it, compared to just buying more Microsoft, Meta, Apple, etc., at their current prices.
This trend is good news for … drum roll please … ad tech!
Recent tech IPOs like Reddit and Instacart, as well as likely upcoming IPOs, including Klarna and Databricks, are for companies making big bets on advertising. For Reddit, that’s always been the lifeline. But, for others, the ad tech and data monetization are a pivot of necessity to sustain growth rates and achieve profitability.
‘Trump No Tiene Un Plan’
A Democratic Super PAC called Future Forward has already spent $30 million on Spanish-language media in the run-up to the election, NBC News reports. It’s on pace to be the largest US Spanish-language political ad campaign in history.
By contrast, two of the largest Spanish-language campaigns run by Republican-affiliated groups this election totaled $1 million and $5 million.
Future Forward is targeting ads in the swing states of Arizona and Nevada, as well as media markets with large, growing Latino populations such as Atlanta, Philadelphia, Milwaukee and Raleigh. The PAC believes Spanish-language audiences are more persuadable, since they haven’t been exposed to the same volume of political ads as English speakers in these districts.
While past Democratic Spanish-language campaigns focused on Republican immigration policy, these ads focus more on the economy. And they may be working. A recent survey from Equis Research showed Vice President Kamala Harris held a slight lead with Latino voters when they were asked which candidate was better for the economy.
Still, $30 million is just a drop in the PAC’s overall 2024 spending, which totals more than $422 million as of this writing.
But Wait, There’s More!
The Washington Post will not endorse a presidential candidate (specifically, Harris) for the first time in 36 years, at the behest of owner Jeff Bezos. [WaPo]
Meanwhile, several LA Times editors have resigned in response to a similar decision made by the paper’s owner, Patrick Soon-Shiong. [Deadline]
The Irish Data Protection Commission fines LinkedIn Ireland 310 million euros for privacy violations related to targeted advertising. [release]
The nonprofit political outlet Notus will soon run ads on its website. [Adweek]
Meta strikes a multiyear AI deal with Reuters to use the news org for fact-checking its chatbots. [Axios]
