A look at how last week’s news affects mobile publishers…
Study: Mobile Ads to Exceed 30% Market Share in 2020
Mobile advertising will grow to nearly 31% of global expenditure by 2020 from 19% last year, and will overtake broadcast television by 2021, according to a new study by Zenith Advertising Expenditure Forecasts. Mobile ad spending’s growth rate will drop to 21% a year until 2020 from 35% in 2017. The tipping point for mobile dominance is 2021, given the projected trends for the next two years. Mobile’s growth rate will lead to $187 billion of ad expenditures in 2020, more than twice the $88 billion spent on desktop ads and closer to the $192 billion forecast for TV. Zenith’s estimates of ad spending show the ongoing strength of mobile platforms as audiences shift their viewing habits to smartphones that have bigger screens and greater capacity to handle streaming video. Mobile ad spend will outpace the global rate, which Zenith forecasts will increase 4.5% this year, in line with worldwide economic growth. That projection is less than the 4.6% growth forecast in March, a reflection of a stronger 2017.
News UK, Telegraph and Guardian to Offer Joint Digital Ad Sales with The Ozone Project
News UK, Telegraph Media Group and Guardian News & Media are to pool some of their digital display ad inventory in a new joint advertising platform in a significant move. Advertisers and agencies will be able to buy digital inventory and access audience data across The Sun, The Times, The Daily Telegraph and The Guardian from one sales point for the first time. The three publishers say they want to offer a “premium” scale alternative to Google and Facebook and they have put aside their historic differences to invest what they say is “a sizeable amount of money” in The Ozone Project, which takes its name from the protective layer that protects the Earth’s atmosphere. It is a potentially landmark moment because the UK newspaper industry has held on-off talks about pooling their ad sales for at least two years and has made little headway on collaboration until now.
Facebook Adds Autoplay Video Ads to Messenger
Facebook has recently added video ads to its Messenger chat app that automatically start to play when a mobile user scrolls through the inbox section. The addition of video comes 18 months after Messenger started selling static ads. The video ads, which appear alongside messages from friends and other contacts, are like those on Facebook properties including News Feed and Instagram. Messenger won’t allow users to opt out of seeing them, but they can be hidden by tapping on a three-dot icon. Facebook is slowly rolling out the ads in Messenger, which has 1.3 billion monthly active users, while the company monitors consumer reactions.
YouTube Launching “Creative Suite” for Brands
Brands that buy advertising on YouTube will soon have a new set of tools at their disposal. The Google-owned video platform announced a new product called the YouTube Creative Suite, which combines three new tools to test variations of ads and to measure their impact. Debbie Weinstein, managing director for YouTube & Video Solutions, said that the new suite was part of a “big bet” that YouTube is making this year on “improving the reporting, insights, and guidance YouTube provides on video creative.” The creative suite includes “Video Experiments,” a testing tool that “works with brand lift measurement and allows you to measure the impact of creative on key metrics like awareness, consideration, purchase intent and more,” according to the company.
AT&T, Verizon to End Sale of Location Data to Third Parties
AT&T and Verizon have pledged to stop providing phone location data from cellular phone owners to data brokers following a leak of real-time location data. The decision transpired following a U.S. Senate investigation found that law enforcement agencies could use the data to track people without their consent. The practice is common and legally done with a search warrant. “When these issues were brought to our attention, we took immediate steps to stop it,” Rich Young, spokesperson for Verizon, wrote in a published email. “Customer privacy and security remain a top priority for our customers and our company. We stand-by that commitment to our customers.” In a letter released Tuesday from Verizon to Senator Wyden, the parent company of online ad firm Oath, which includes the former businesses of AOL and Yahoo, said it would end the practice of selling customer location data to vendors that aggregate the data.