December 3, 2018 | by Alexian Chiavegato

AdTech Weekly Roundup

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

Facebook Exempts News from Political Ad Archive
Facebook has announced it will exempt paid posts promoting news articles from its political ad archive, ending a practice that rankled publishers who chafed at seeing their journalism classified as if it were paid partisan advocacy, the company said Thursday.
Rob Leathern, Facebook’s director of product management, said in a post that the decision to classify ads promoting news articles in Facebook’s political ad archive was “problematic for a number of news organizations,” adding that the new policy is aimed at supporting journalism.

Earlier this year, Facebook announced that it would begin storing and displaying political ads in a public archive, one of a series of steps aimed at increasing transparency in the wake of alleged Russian election interference on its platform. Paid posts promoting news articles mentioning political figures and electoral issues were lumped in with political ads, a decision that drew pushback from news organizations.

Video to Make Up 82% of IP Traffic By 2022
More than 28 billion devices and connections will be online by 2022, and video will make up 82% of all IP traffic, according to recently released data.

This means more opportunities for advertisers and marketers to buy a variety of media that will be delivered on many more devices.
Cisco released its Visual Networking Index (VNI) Tuesday, which estimates that by 2022 more IP traffic will cross global networks than in all prior years that the internet has existed. Stated another way, more traffic will be created in 2022 than in the 32 years since the internet started.

The traffic will come from all types of machines and the 60% of the global population that will use the internet, according to the report. The percentage accounts for about 4.8 billion internet users — up from 3.4 billion in 2017, or 45% of the world’s population. The average global mobile connection speeds will more than triple from 8.7 Mbps to 28.5 Mbps, giving marketers the bandwidth to design and create new types of advertisements.

Amazon, With Little Fanfare, Emerges as an Advertising Giant
Amazon.com Inc. handles nearly half of all online sales in the U.S., giving it a popular platform and a wealth of consumer data. Now it’s on track to become the next juggernaut of online advertising, and its rise threatens to upend Silicon Valley’s ad titans and change the way business is done on Madison Avenue.

The online retailer has ascended to the No. 3 spot in the U.S. digital ad market behind the dominant players, Alphabet Inc.’s Google and Facebook Inc. Though Amazon has just 4% of the market now, the company is expanding its avenues for marketers and hiring aggressively for its ad unit.

Some marketers eager for a new digital ad alternative are also conflicted about the rise of Amazon—a competing retailer with its own in-house brands to sell—setting up a new potential source of tension.
Amazon’s ad revenue is on pace to double this year, to $5.83 billion, according to eMarketer. Its ad sales are expected to jump $28.4 billion over the next five years, according to Cowen & Co.—more than the combined increases in ad revenue for all television networks globally, according to figures from media-buyer GroupM.

Facebook Debuts Local News Aggregator ‘Today In’
Taking another crack at local news, Facebook’s Today In will live within its flagship app.
After limited testing, the local news aggregator feature is now available to Facebook users in roughly 400 cities nationwide. As for international users, Facebook is testing Today In in Australia before rolling it out more broadly.
The company said “Today In” is a response to user demand for more local news and information.

After conducting user research earlier in the year, Facebook found that over 50% of users expressed a desire for more local news — more than any other type of content. Users said they wanted breaking news, city council meetings, crime reports, weather updates and the like, as well as community information such as bus schedules, road closures and restaurant openings, Facebook found.

UK Ad Spend to Surpass £20BN IN 2019; Digital Responsible for All Net Growth
UK ad spend is expected to cross the £20bn mark for the first-time next year, reaching £20.8bn with net growth likely to be entirely down to digital.

According to the latest forecasts from WPP’s GroupM, ad spend in the UK will see six per cent growth for 2018 – down on 6.4 per cent in 2017 – in reaching £19.9bn. Growth for 2019 is expected to sink further to 4.8 per cent, which will still be enough to carry spend comfortably over the £20bn mark.

Digital accounts for around 60 per cent of all advertising investment and, with that, accounts for all UK net advertising growth. Within this, pure-play internet increased 11 per cent in 2018 and is predicted to grow a further nine per cent in 2019.

This year, investment in news brands will account for 11.1 per cent of ad investment but, in 2019, will fall to 9.8 per cent. On the other hand, radio spot ad revenue will increase 10 per cent this year – with radio owners taking in around £500m in spot revenue – and rise seven per cent in 2019.