AdTech Weekly Round Up

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

Europe Hits Google with $5 Billion Android Antitrust Fine
The European Commission’s antitrust regulators fined Google a record 4.34 billion euro ($5 billion) and ordered the company to stop using its Android mobile operating system to block rivals. Google said it is going to appeal the ruling. Google has 90 days to either halt such anti-competitive practices with smartphone makers and telecoms providers or seek a delay of the order while it appeals. Alphabet risks additional penalties of up to 5 percent of average daily global revenue for non-compliance. A separate ongoing EU case against Google involves its AdSense advertising service which is accused of blocking users from displaying search advertisements from Google’s competitors, which Google denies.

FTC Says It Can’t Penalize Data Rule Breakers
Members of the Federal Trade Commission said during a House hearing that the FTC does not have the authority to adequately punish companies that misuse consumer data. Several data privacy scandals over the last year and a half prompted the House Energy and Commerce Committee hearing. The FTC oversees the transfer of personal data from the EU to the US and with the EU’s General Data Protection Regulation now in effect the agency has added incentives to address consumers’ concerns about privacy issues. The FTC cannot fine first-time data privacy law violators, it can currently only get an injunction to curb bad behavior after a first offense. The FTC can only seek fines if a company breaks the rules again after signing a consent decree stating it will not commit that violation again.

Local Publishers Consider Agency Services in Search for Growth
Local broadcaster Nexstar grew its digital marketing and agency services revenue 38 percent to $62 million in the first quarter of 2018, representing more than 10 percent of the broadcaster’s quarterly revenue. Local publishers have less competition for small marketers’ business than do national publishers. But local publishers also have more service needs that they will hand off to third parties. Nearly one-third of the publisher respondents to a survey by the Local Media Association said digital marketing services like SEO, website design, native ads and social media management were their top growth opportunity. The survey also showed homogeneity in publisher offerings as more than three quarters of respondents offered the same services.

Why AT&T-Backed AppNexus Is Making A Move On Connected TV
With its expected acquisition by AT&T, AppNexus will take a more prominent role in converging online video and TV advertising, with a chance to blaze a new trail for programmatic. Eric Hoffert, AppNexus’ senior VP of video technology, is already seeing 20 billion connected TV (CTV) impressions per month and believes it is starting to achieve meaningful scale. The trend he is seeing is that the first wave of adoption is made up of programmatic video buyers who are active across mobile and desktop and see the value of connected TV’s reach.

Study Shows Positive Impact of 3D Audio Advertising
To measure the effects of 3D audio advertising on the brain, Sky Sports and DAX partnered with Neuro-Insight. Sky Sports ran a multimedia campaign to increase subscriptions to its Formula 1 channel, featuring 3D digital audio ads through DAX, the digital audio advertising platform. Neuro-Insight examined the brain reactions of 48 males to Sky Sports’ 3D audio ads and tested long-term memory encoding, emotional intensity and attention levels. They found that 3D audio ads increased long-term memory encoding by 36 percent compared to stereo ads. This neuroscience metric correlates with decision-making and purchase intent.

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