AdTech Weekly Roundup

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

Mobile ad sales push Facebook revenue to $12.97 billion
Buoyed by mobile ads sales, Facebook reported $12.97 billion in revenue for the fourth quarter (ending December 31). This represents an increase of 47 per cent from $8.81 billion in the same period last year. Mobile advertising revenue represented approximately 89 percent of revenue for the fourth quarter, up from nearly 84 per cent of advertising revenue in the fourth quarter of 2016. Daily active users (DAUs) were 1.40 billion on average for December 2017, an increase of 14 percent year-over-year. Monthly active users (MAUs) were 2.13 billion as of December 31, also an increase of 14 percent year-over-year, the company said in a statement this week. However, for the first time, Facebook reported a user count decline in the US and Canada region (from 185 million to 184 million daily active users). Facebook currently employs 25,105 people, an increase of 47 per cent year-over-year.

Mobile the Driving Factor as UK Ad Spend Reaches Record High
UK mobile ad spend grew 30.7 percent year-on-year in Q3 2017, helping overall UK ad spend to rise by 3.5 per cent to a record high £5.4bn. Nearly one in every four pounds spent on advertising during the third quarter was spent on mobile, putting preliminary forecasts for 2017 for mobile alone at above £5bn, most of which is being invested in video ads on social media. Growth within the internet as a whole was up 9.9 per cent YoY in Q3 2017. According to the latest expenditure report from the Advertising Association and Warc, Q3 2017 represented the 17th consecutive quarter of market growth, and supports preliminary estimates that £22.1bn was spent across the whole of 2017.

Making Mobile VPAID Ads Mainstream
Video ads continue to attract more advertising dollars because of its known ability to provide higher level of engagement. US marketers anticipate spending more than $9 million on their brand’s desktop and mobile video advertising in 2017—a 67% increase from 2015, according to e-Marketer. Yet there are still several challenges around mobile video, especially when transacted programmatically that has to do with video formats, viewability and ad quality. This article discusses the differences in the two two video ad standards that are currently in play for the distribution and tracking of video ads—VAST (video ad serving template) and VPAID (video player ad interface definition).

Caffeine Aims to Re-Awaken the Video Streaming Space
A couple of former Apple engineers have waded into the crowded and choppy waters of live online broadcasting with yesterday’s broader launch of Caffeine. Caffeine aims to take on the likes of Twitch and YouTube Gaming, a streaming service from Google-owned YouTube. Although Caffeine quietly launched their product last year, and closed a round of funding back in March 2017, yesterday’s announcement constitute the company’s formal debut. The announcement included news of $46 million in venture funding from Andreessen Horowitz and Grelock partners.

The Challenges of Mobile Measurement and Targeting
Mobile advertising has been hampered by fragmented formats and standards, which limit what marketers can do with the newer and richer types of marketing data available in mobile. Full consolidation of standards is still many years away, but improved measurement and transparency will help marketers make some progress in 2018. These insights are drawn from eMarketer’s latest report. Media Rating Council (MRC) guidelines and auditing tools have made a difference, but acceptance is still early, with viewability a notable exception. Meanwhile, most of the impact of mobile advertising occurs away from smartphone screens, in the physical world or on other devices.

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