Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
Not It!
The broadcaster-backed joint industry committee (JIC) is celebrating its certification of Comscore and VideoAmp as national TV currencies this week.
But it also draws attention to the standoff between the JIC and the media and measurement companies that won’t join.
Nielsen still refuses to join the JIC, while major streaming players like Netflix, Disney, YouTube and Amazon are also absent.
Disney, for one, is “all about collaboration,” said Lisa Valentino, Disney Advertising’s EVP of category sales and client solutions, during CIMM’s summit in New York on Wednesday.
But when it comes to the JIC, “the [biggest] players in the streaming marketplace are not sitting at that table,” she said. “And that’s a problem.”
Netflix, Disney, YouTube and Amazon control a majority of streaming inventory. Without one or more of those companies, the JIC doesn’t sufficiently represent the streaming market, Valentino argued.
But JIC representation is a chicken-or-the-egg situation. After all, Disney could change the dynamic overnight by deciding to participate.
And often with large collaborative efforts, the smaller companies primarily benefit while the bigger platforms are relative gainers.
Ultimately, somebody needs to make the first move. Who will it be?
Tough Spot
Spotify is changing its subscription pricing plans, Bloomberg reports.
It will raise the price of its baseline plan for the second time in 12 months in five major markets, including the UK, Australia, US and Pakistan. (The fifth market isn’t cited.) Though this comes after a period of stable pricing since 2011.
The streamers like Netflix and Disney+ have doubled (or more) their prices in the past couple years. But there’s a different dynamic at play here, despite the ostensible similarity of streaming media with a cheap ad-supported tier and an ad-free premium subscription.
And it comes down to audio ads not earning their keep.
The thing is, Spotify’s ARPU is better – much better – on the ad-free subscription. So it’s been very hesitant to rock the boat even a little by raising prices. Netflix and other streamers relish in price increases because they’ll lose premium subscribers – with a good chance to reacquire them in the ad-supported tiers.
Spotify’s ARPU is likely to contract further, too, compared to streamers and social media because it over-indexes to international markets and not the US (which has the relative highest ARPU).
The Chase Is On
Chase – like, the bank – is throwing its hat in the retail media ring with the launch of a new programmatic data business called Chase Media Solutions, The Wall Street Journal reports.
Chase’s approach is similar to the kind of banking ad business pioneered by Cardlytics, which connects retailers and brands with discount offers plugged right into the banking app or that can be applied after a credit card purchase. That means Chase isn’t really selling ad space in CTV, the web, or even its own site or branches.
Chase will allow its data to be used to target deals to particular audience targets – like Chase customers who are lapsed subscribers to a service that might be targeted for reacquisition, or deals for a pet care brand to regular pet food purchasers.
Unlike other businesses expanding into retail media – Uber, Chewy, Zoom, Instacart and many more – Chase isn’t desperate to increase revenue and improve its profit margin. JPMorgan Chase reported record $49.5 billion profits in 2023.
But they know a whale when they see one.
But Wait, There’s More!
TikTok faces advanced, ‘mature’ nationwide probe by dozens of US state attorneys general. [MLex]
Trying to break a reliance on Google products, even by paying for a pricey search engine. [404 Media]
Spotify wants to monetize live events. [Adweek]
FOX consolidates ad sales from its entire linear and streaming portfolio to its updated AdRise platform, which comes via Tubi. [release]
You’re Hired!
X hires a new head of brand safety (lol). [WSJ]
