AdTech Weekly Roundup

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

Facebook Revenues Hike 33%, Daily Active Users Rise 9%
Facebook reported better-than-expected third-quarter earnings in its most recent report.
Although quarterly revenue was up 33% to $13.7 billion, it was still short of analyst expectations. From September 2017 to September 2018, daily active users (DAUs) increased 9% to 1.49 billion. During the same period, monthly active users (MAUs) increased 10% to 2.27 billion. Every month, Facebook now estimates that roughly 2.6 billion people use its flagship property, along with WhatsApp, Instagram, and Messenger, while about 2 billion visit at least one of those properties daily.

Mobile ad revenue continues to represent an ever larger share of Facebook’s total ad revenue. During the third quarter, mobile ad revenue represented approximately 92% of all ad revenue — up from approximately 88% of total ad revenue, year-over-year.

Despite Facebook’s mixed performance, some marketers say Facebook is more important than ever to their digital strategies.

Adobe Forecasts Mobile to Drive 27.2% of $124B in Holiday Online Sales
In its annual holiday forecast, Adobe is estimating that consumers will spend $124 billion online this year — about $1 for every $6 spent overall.

Thanksgiving Day is forecast to bring in $3.3 billion, while Black Friday will bring in $5.9 billion and Cyber Monday, $7.8 billion. The five days between Thanksgiving and Cyber Monday are forecast to drive $23.4 billion — about 19% of total holiday revenue.

Voice search will help shoppers make purchases on a variety of channels. Adobe estimates that 47% of consumers conduct product searches using voice search, 43% create shopping lists, and 32% do price comparisons. Other reasons to use voice include researching store information, checking for deals and promotion, and placing one-time orders for delivery.

Adobe suggests that marketers should ensure mobile campaigns are in order. Improved smartphone checkout processes can increase revenue by 7.3%, because there is a $9 billion gain overall if cart abandonment rates fall to desktop levels.

Data Shows Programmatic Video Ad Buys on the Rise
A company which focuses on mobile video advertising will release data next week showing the growth of programmatic advertising based on analysis from more than 166 billion ad auctions and $4 million advertising dollars.

The report — Programmatic Mobile Video Advertising Insights for Marketers — also takes into consideration impressions, revenue, and eCPM data to provide analysis of key trends within the mobile advertising industry. The data is from April 1, 2018 through June 30, 2018, and from January 1, 2018 through March 31, 2018.

Overall, the amount spent on mobile video advertising rose 41% in the second quarter of 2018 — nearly double the industry growth between 25% and 28% per year for programmatic advertising, according to the study. In-app video ad spend rose 38% and now accounts for 86% of total programmatic mobile video ad spend. Full-screen video ads — the most preferred ad format — saw 38% growth in the second quarter of 2018, according to the findings.

Pinterest Introduces Carousels to its Ad Formats
Pinterest has introduced a new ad format for businesses to promote their goods and services. Now, advertisers will be able to take advantage of carousel ads.

With Pinterest’s ‘Promoted Carousel’ ads, businesses can use up to five images within one ad on Pinterest, enabling them to show off more of what they have to offer to users. Each card in a carousel can feature a different image, title, description, and landing page. The carousel ads appear in user’s feeds just like any other pin and can be swiped through directly from the feed. The cards on the carousel can also be tapped to see the image and website.

Early partner brands of Promoted Carousel ads include Toyota, Away, Everlane, Cheerios, REI, DSW, Covergirl, and Rothy’s. According to Pinterest, Cheerios saw an 11.4 point lift in ad awareness and an 8.6 point lift in message association thanks to a carousel campaign. Meanwhile, Covergirl received a 3.8 point lift in brand awareness and a 6.1 point lift in ad awareness, DSW improved ad performance by 20 percent, and Everlane drove engagement more than three times what they normally see.

ASA warns it needs more industry support to effectively regulate online ads
The Advertising Standards Authority is recommending a rethink if it is to successfully regulate advertising, particularly online ads, in the future.

The ASA’s CEO Guy Parker says there needs to be a “stepchange” over the next five years in how it regulates online ads as consumers spend more time online and advertisers increasingly target them there. For that to work, it will require the “commitment” of the industry, from brands to platforms, and from media owners to small businesses that may be new to advertising. That commitment involves everyone playing a “meaningful and fair part” in contributing to the system, both in terms of ensuring ads are responsible and in funding.

Much of the ASA’s work already focuses on online advertising. In 2017, 88% of the 7,099 ads that were amended or withdrawn were online either in whole or in part. And two-thirds of the 19,000 cases resolved by the ad regulator last year were about online ads. However, the fast-changing nature of online ads means the ASA has its work cut out to ensure its regulations remain relevant. For example, it points to new areas such as voice, facial recognition, machine-generated personalized content and biometrics as areas that could need regulating in the future.

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