Ad Tech Weekly Roundup

A look at how last week’s news affects mobile publishers…

Instagram Further Tightens Third-Party Access to User Data
Instagram’s new Basic Display API (application-programming interface) will eventually replace its current “Basic Permission,” which lets applications read users’ profile information and media.

The Basic Display API will now provide the option to import photos from Instagram or to connect or link to the video and photo sharing site. The change will make it easier for users to manage third-party services that they connect to their account. It will also give them the option of removing third party services if they so choose.

Instagram says this change will be the last associated with the Graph API migration it instituted in August of 2017.

Amazon’s Share of Search Ad Spend Forecast to Grow 30% in 2019
Amazon continues to make strides in turning the Google/Facebook “duopoly” into a “triopoly” for advertisers. The retail giant has become the second destination for search ad dollars, but still a long way from Google territory.

This is based on eMarketer forecasts that search ad dollars directed towards Google will drop from 73.1 percent to 70.5 percent by 2021. That 73.1 percent still translates to $40.3 billion revenue for Google, which dominates the market. eMarketer’s data shows that most of the decrease for Google will be directed towards Amazon. By the end of 2019, eMarketer projects Amazon’s search ad business will grow nearly 30 percent, increasing net search revenues to $7.09 billion.

eMarketer’s polling also shows it is the only company in the sector that will see gains from its current level of the search ad market (12.9 percent in 2019 to a level of 15.9 percent by the end of 2021, which will translate to revenues of $11.7 billion.

Gaming is the Big Missed Opportunity in Mobile Advertising
Brands are missing a huge opportunity to connect with consumers if they ignore mobile gaming in the APAC region. This according to Tom Simpson, VP Brand and Exchange, APAC, Ad Colony. Simpson says that the classic “teenage-boy-gamer” stereotype is not true anymore.

Simpson says that everyone is a gamer in 2019, especially in APAC. He says more than one billion Asian consumers of all ages, both male and female, play games on their smartphones each and every day. In fact, he says they see larger numbers of females playing in several markets.

Projected to be worth $174 billion by 2021, the global mobile gaming market earns 49 percent of its revenue in APAC. Also, by that time, Southeast Asia will have more than 250 million mobile gamers. Simpson says a passionate audience is a real attraction to advertisers such as Unilever, Coca-Cola and Ford. He said two thirds of APAC gamers would prefer losing social media, apps or TV than mobile games.

O2 Launches its 5G service in Select Areas of UK
Mobile phone company 02 has launched 5G service in six locations throughout the United Kingdom. Concentrating on “heavy footfall” areas, 5G was introduced to parts of London, Leeds, Edinburgh, Cardiff, Belfast and Slough (which also happens to be home to 02’s UK headquarters).

The 02 5G network is being built out by Ericsson and Nokia and will be live in a total of 20 towns and cities by the end of 2019. That number will grow to 50 UK areas by mid-summer 2020. 02 will be providing flexible 5G plans that will not cost more than the 4G service currently provided.

Study finds Phone Addiction Real, Loyalty Moving Mobile
Is it possible for people to be even more addicted to their mobile phones? A new report AppDynamics answers the question. It says more than half the people it surveyed will reach for their smartphone before even speaking to another human being first thing in the morning.

Researchers found that 70-percent feel their smartphone reduces stress, 68-percent feel their phone improves productivity and 55-percent say they can’t go more than four hours without their phone. This, of course, has major implications moving forward for digital businesses. Consumers no longer believe in “forgive or forget” if they have a poor experience. Almost 50-percent say they’ll jump to competitors based on a single issue or “mistake.” And 63-percent says they’ll bad-mouth brands based on a single bad experience.

The AppDynamics report showed that 85-percent will be choosing brands on the variety of digital services offered, highlighting the need for brands to begin upgrading their digital performance.

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