Here’s today’s AdExchanger.com news round-up… Want it by email? Sign up here.
Apple’s Bite
We already knew that Google shells out a heck of a lot for its default iOS search status – and now we know how much.
Google pays Apple a 36% (!) cut of the total revenue it makes from searches conducted on iPhones using Safari.
That nugget came from University of Chicago economist Kevin Murphy, who let it slip during his testimony in Google’s defense this week while being questioned by the DOJ.
Bloomberg reports Google’s main litigator, John Schmidtlein, “visibly cringed” when the number was disclosed. The judge had agreed to keep it confidential. Oops.
Everyone knew Google and Apple had a rev-share, but it’s fascinating to see the actual number. For one thing, it’s one-fifth above the 30% fee app developers pay Apple – which is pretty onerous.
Microsoft CEO Satya Nadella testified last month that Microsoft had offered a higher rev-share for Bing, but he personally suspected Apple only pursued the offer to drive up Google’s rate.
However, even if Microsoft offered a higher percentage share than Google, it would mean lower overall revenue. According to a 2020 CMA report on Google Search, Microsoft believed Google’s rev-share offer would out-earn Microsoft’s offer – even if it were to give 100% to Apple.
No Ads For EU
You know TFW when you want to buy ads … and Meta won’t let you? (?!)
An error in Meta’s ad-buying system is preventing European account holders from buying and running ads via Ads Manager if they also subscribe to the new ad-free experience. (h/t @RobertPaidAds)
Meta launched ad-free versions of Facebook and Instagram in Europe earlier this month, meaning that people who don’t consent to allow data collection for ad targeting purposes must pay.
But choosing not to see ads shouldn’t preclude buyers from purchasing ads, right?
That seems to be the case for now, however. Weird world.
What’s even weirder, though, is a glitch that’s stopping advertisers from purchasing ads in the EU even if they do consent to see ads.
Meta is apparently aware of the issue and working on a fix. In the meantime, the good people of Reddit devised a workaround that involves manually logging into the Instagram account associated with their Ads Manager account and opting out of Advantage+ placements.
This isn’t the first (second or even third) time the Meta ad platform has run amok in recent months.
’Tis the season, perhaps.
ByteDancing In The Dark
Speaking of Meta, ByteDance is catching up with it.
ByteDance’s Q2 revenue this year totaled $29 billion, which is more than 40% annual growth, The Information reports.
Meta’s growth rate was 11% in Q2, totaling $32 billion in ad revenue.
There are many grains of salt to consider, though. ByteDance’s revenue doesn’t just come from TikTok, for one. The Chinese version, Douyin, is likely bigger than TikTok.
Also, Meta’s numbers are reported to the SEC and investors, while ByteDance’s leaked revenue bears no legal weight and faces no public investor inquiry.
Also, ByteDance appears to earn a larger piece of its revenue from ecommerce sales and fulfillment, rather than ads.
The big question is this: Does the TikTok app outearn Instagram and Facebook when it comes to true revenue growth? (Not just percentage growth, mind, but actual revenue from ads and ecommerce.)
We still don’t know, and the answer is “probably not.” But, clearly, ad spend on TikTok is still rocketing up, despite existential concerns about a potential ban by the US government and other lawmakers around the world.
But Wait, There’s More!
Buckle up: Google will make major changes to Search rankings. [Search Engine Roundtable]
The Dutch parent company of Russian search engine Yandex will spin out the Yandex business in Russia from the global business. [Bloomberg]
Call it a re-reorg: Insider becomes “Business Insider” again as co-founder Henry Blodget steps down as CEO. [WSJ]
The IAB has established a voluntary accountability program as part of its Multi-State Privacy Agreement compliance framework. [release]
Inside WPP’s multiyear plan to transform its giant media buying business GroupM. [Business Insider]
You’re Hired!
Adludio names Chris Allan its next CEO. [release]
33Across promotes Lisa Mollura to chief marketing officer. [release]
