A look at how last week’s news affects mobile publishers…
Google will Reportedly Share Some Revenue with News Publishers
Google is reported to be acting on recent assurances that it will be more of a “partner” with news publishers. After last month’s announcement that the search engine will be making it easier for paywalled sites to obtain subscribers, Google has indicated it will soon engage in a revenue share for those subscribers that will be “very generous” to news publishers. But exact details have yet to be disclosed.
Alphabet’s Mobile Ad Revenue Surges; Shares Jump
Google’s parent company, Alphabet, announced it had stronger-than-expected advertising sales and higher operating margins in the 3rd quarter. Third-quarter revenue jumped 24 percent to $27.8 billion. The company said that efforts to attract “both large and small advertisers” around the world were paying off, especially in Asia, where sales rose 29 percent to $4.2 billion. The third quarter was the 15th in a row in which Alphabet has shown double-digit, year-over-year consolidated sales increases. Ad sales at Google have continued to grow as more users turn to Google’s YouTube and mobile search services.
Twitter Shows Signs of a Turnaround and Starts Alpha Testing Programmatic Buying
Twitter also announced its third quarter results and the company beat revenue expectations with $590 million but that number was down 4% year over year. Monthly active users grew by 2 million compared to the last quarter which was roughly on track with what analysts predicted. Moving forward, Twitter said one of its top revenue priorities is introducing demand channels, including online video, and introducing new ways to buy ads on Twitter. Twitter is in the early stages of alpha testing programmatic buying and real-time bidding and is negotiating partnerships with demand-side platforms. The hope is to tap into premium display budgets, which Twitter isn’t accessing today, and to use programmatic to offload some of its unsold inventory.
Proposed Legislation Makes Some Online Political Ads More Transparent
The Honest Ads Act was introduced into the US Senate this past week. It would make political ads on platforms such as Facebook and Google transparent like those on TV and radio stations. The bill would “require companies with more than 50 million monthly users to maintain a public database containing information about all ads bought by anyone spending more than $500 in a year.” The record would include a variety of info: a digital copy of the ad, a description of the targeted audience, the average rate charged for the ad, the name of the candidate or issue the ad refers to and contact info for the buyer. Companies that don’t comply would be subject to penalties by the Federal Elections Commission.
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