AdTech Weekly Roundup

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

European Union Agrees to New Copyright Law
The European Union agreed on a new copyright law aimed at reining in tech giants and throwing a lifeline to news publishers. The deal comes after months of opposition and lobbying from internet giants and open-internet activists that led to a stalemate among EU governments.

Two controversial parts of the draft bill held up negotiations. One, aimed at platforms that allow users to upload content, would make the platforms liable for copyright violations. The other would allow news publishers to negotiate licenses with aggregators such as Google. Any search results that go beyond one word or “very short extracts” of news articles would be subject to such licenses.

The deal was made possible after France and Germany proposed a compromise last week, giving smaller internet companies some exemptions from the rules. The compromise coincided with a separate deal in which France agreed to support Germany on a natural-gas pipeline with Russia, according to officials in Brussels and Berlin.

Publishers Chafe at Apple’s Terms for Subscription News Service
Apple’s plan to create a subscription service for news is running into resistance from major publishers over the tech giant’s proposed financial terms, according to people familiar with the situation, complicating an initiative that is part of the company’s efforts to offset slowing iPhone sales.

In its pitch to some news organizations, the Cupertino, Calif., company has said it would keep about half of the subscription revenue from the service, the people said. The service, described by industry executives as a “Netflix for news,” would allow users to read an unlimited amount of content from participating publishers for a monthly fee. It is expected to launch later this year as a paid tier of the Apple News app, the people said.

The rest of the revenue would go into a pool that would be divided among publishers according to the amount of time users spend engaged with their articles, the people said. Representatives from Apple have told publishers that the subscription service could be priced at about $10 a month, similar to Apple’s streaming music service, but the final price could change, some of the people said. The New York Times and the Washington Post are among the major outlets that so far haven’t agreed to license their content to the service, in part because of concerns over the proposed terms, which haven’t been previously disclosed, according to the people familiar with the matter.

Google Plans to Invest $13 billion in Data Centers and Office Space This Year.
Google CEO Sundar Pichai today said the company is expanding its U.S. footprint, with plans to create “tens of thousands” of jobs while giving it a physical presence in nearly half the states in the country.

The planned investments are a sharp increase from 2018, when Google spent $9 billion on data centers while also adding 10,000 new jobs. “This growth will allow us to invest in the communities where we operate, while we improve the products and services that help billions of people and businesses globally,” Pichai said in a blog post. “Our new data center investments, in particular, will enhance our ability to provide the fastest and most reliable services for all our users and customers.”
By adding data centers and office space in more than a dozen states, from South Carolina and Ohio to Nevada and Oklahoma, Google will be able to improve its cloud computing capabilities and potentially gain more lobbying clout in a year when the advertising powerhouse is coming under intense scrutiny.

The Results Are In: Data Is King and It’s Delivering Big Wins for Mobile Marketers
Industry analysts and market experts alike have predicted data would play a central role in mobile marketing during 2019.

In an effort to better understand its impact, YouAppi, a leading growth marketing platform for premium mobile brands, reached out to more than 540 of the world’s top in-house and agency marketers to find out how critical data has become for the brands they represent. A full 98 percent of respondents said they have increased their organizational investment in data, spending that has been substantial from both brand and performance marketers alike. These investments are proving worthwhile, as 97 percent of all marketers have seen improvement, more than half of those calling improvements ‘significant.’

Areas of investment include reporting and dashboard technology (81 percent), in-house data analytics teams (64 percent), purchasing 3rd party performance data (47 percent), adding more data-centric roles on internal teams (46 percent) and hiring outside agencies for data analysis (24 percent). In addition to increased spending, 96 percent of marketers say their job duties have also required a larger focus on data, with 57 percent categorizing that increase as significant. Though every level of the marketing team has been impacted by the role of data, executives have seen the largest change, with 62 percent citing a dramatic increase in their focus on data and metrics.

Digital Ad Revenue Tops $26 Billion in Q3 2018
Digital advertising revenue continues to grow at a rapid pace.

According to the Interactive Advertising Bureau’s latest Internet Advertising Revenue Report, digital ad revenue was $26.2 billion in the third quarter of 2018 — up a whopping 22% compared to the same quarter a year prior.

The report, which was prepared by PwC U.S., found marketers spent a total of $75.8 billion over the first three quarters of 2018. With that explosive growth, the first three quarters of 2018 were the highest-spending on record.

The data suggests that 2018 will be the biggest year yet for digital advertising revenue and spend.
Relatively new players in the digital advertising space helped propel the overall market to that record number, according to Sue Hogan, senior vice president of research and measurement for the IAB.

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