AdTech Weekly Roundup

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

Google Misses Self-Imposed Deadline to Implement IAB Consent Framework
When GDPR took effect in May, Google told publishers and ad tech vendors it expected to implement the IAB Europe Transparency and Consent Framework (TCF) by August. But Google’s consent management solution, Funding Choices, is still not an IAB-registered consent management platform (CMP) and isn’t interoperable with many IAB members. And no new timeline has been set for Google to launch an official CMP. For its part, Google said it has been working closely with IAB Europe over the last several months to ensure our ad products are interoperable with the Transparency and Consent Framework. Google developed an interim solution in June so publishers with an IAB CMP can still pass consent to Google for targeted ad buys. And the company has worked out deals with some of the largest programmatic players, including AppNexus, Rubicon Project and Criteo, to pass consent. Despite the partial integrations, however, Google’s delay in fully joining the TCF is a blow for many programmatic publishers and tech vendors.

Publishers are Turning to Audiences for Help with Ad Campaigns
To win advertiser budgets with creative services, some publishers that tend to be small and user generated content-based are putting audience ideas and content at the heart of their pitches. To avoid the cost of a large creative department, the publishers tap influencer and amateur creators, many of whom are just starting their professional careers or who are eager for a creative outlet on the side. Such programs can mean six figures in revenue and the chance to build direct relationships with advertisers. They come with headaches, too. These talents are rarely offered retainers, so publishers need to spend money to keep creators feeling engaged and valued. On the advertising side, publishers also need to explain away the irony of turning to a publisher for help getting ideas from amateurs.

Inside Twitter’s Process to Police Bad Actors (Users)
Just who decides whether a user gets kicked off Twitter? To some Twitter users—and even some employees—it is a mystery. In policing content on the site and punishing bad actors, Twitter relies primarily on its users to report abuses and has a consistent set of policies so that decisions aren’t made by just one person, its executives say. Yet, in some cases, Twitter CEO Jack Dorsey has weighed in on content decisions at the last minute or after they were made, sometimes resulting in changes and frustrating other executives and employees, according to people familiar with the matter. Understanding Mr. Dorsey’s role in making content decisions is crucial, as Twitter tries to become more transparent to its 335 million users, as well as lawmakers about how it polices toxic content on its site.

The State of Advertising on Instagram Stories
The rapid growth and consumption of Instagram Stories has made it hard for advertisers to ignore, even if they have reservations over whether they can match the high-end, premium content on the platform. Spending is shifting to Instagram, with brands like Smirnoff, Nike and Stella Artois starting to spend more money on the vertical video format. The Stories format has lured more advertisers over to Instagram, but the ones that were already there aren’t seeing the cost of impressions rise as a result of the competition. After a rise in 2017, average cost per thousand impressions over the first six months of 2018 is $4.91, according to analytics firm Brand Networks’ analysis of its clients’ spend.

Amazon Sets Its Sights on the $88 Billion Online Ad Market
Amazon, which has already reshaped and dominated the online retail landscape, is quickly gathering momentum in a new, highly profitable arena: online advertising, where it is rapidly emerging as a major competitor to Google and Facebook. The push by the giant online retailer means consumers — even Prime customers, who pay $119 a year for access to free shipping as well as streaming music, video and discounts — are likely to be confronted by ads in places where they didn’t exist before. Amazon derives the bulk of its annual revenue, forecast to be $235 billion this year, from its e-commerce business, selling everything from books to lawn furniture. Amazon is also a leader in the cloud computing business, with Amazon Web Services, which accounts for around 11 percent of its revenue but more than half of its operating income. But in the company’s most recent financial results, it was a category labeled “other” that caught the attention of many analysts. It mostly consists of revenue from selling banner, display and keyword search-driven ads known as “sponsored products.” That category surged by about 130 percent to $2.2 billion in the first quarter, compared with the same period in 2017.

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