Hi there! I’m John Cobb, CEO and Co-Founder of VuePlanner. I wanted to take a moment to share a weekly recap of some content surrounding the AdTech, AI and, advertising ecosystem. In this newsletter, I will share digestible pieces of industry content socialized and shared each week. I hope this resource brings you value and makes it easier for you to stay up to date on our ever-evolving world.
Is Ad-Free Streaming in Our Future?
In his article “Pay TV’s $100 Billion Funding Source,” Colin Dixon, a technology and media analyst, examines how the pay TV industry is currently funded and proposes an alternative funding model. He notes that while the #paytv industry generates approximately $100 billion in annual revenue, the industry is heavily reliant on affiliate fees from cable and satellite providers, which make up a significant portion of that revenue. Dixon argues that this reliance on affiliate fees is unsustainable in the long term, as more consumers opt for streaming services instead of traditional pay TV packages. To address this issue, he suggests that pay TV companies should explore new revenue streams, such as advertising, sponsorships, and partnerships with content creators. Ultimately, Dixon believes that pay TV companies must adapt to the changing media landscape in order to survive and thrive in the years ahead. Learn more.
IAB reports Growth in Digital Video Ad Spending
An #iab report cited in a Next TV article by Jon Lafayette suggests that digital video advertising spending will grow 17% in 2023. The report states that ad spending in 2022 will reach $47 billion, up from $43 billion in 2021. The growth will continue in 2023, reaching an estimated $55 billion, with digital video being the main driver. The report also noted that ad spending on connected TV (#CTV) and social media platforms will continue to grow rapidly. Additionally, the report predicts that the growth in digital video ad spending will be driven by new viewership patterns, including the continued adoption of streaming services and social media platforms. Learn More.
Digital Video Expect to Grow Even More in 2023
Laurie Sullivan, a Senior Writer at #MediaPost, reports on an IAB study that shows digital video ad spending is predicted to increase 21% in 2022, with advertisers projected to spend $38.8 billion on digital video ads. The report states that mobile video ad spending will experience the highest growth rate, increasing by 25% YoY to reach $26.2 billion. Connected TV ad spending is also expected to rise significantly in 2022, with an estimated $7.3 billion spent on the platform. Furthermore, the report highlights that 68% of digital video advertisers are expected to use #programmaticadvertising for their campaigns in 2022. The study also found that brand safety and privacy concerns will remain a significant factor for digital advertisers. Learn more.
This Week’s Agency News
Marketing Brew’s Claire Cole reports on recent executive moves and account changes within the advertising industry. Publicis Groupe-owned creative agency Leo Burnett has announced that it will be adding 400 new positions in response to recent account wins. Meanwhile, global advertising agency Grey has appointed Jean Lin as Global CEO, effective immediately. In account news, Mars Wrigley has named WPP’s VMLY&R as its global agency of record for its confectionery brands, while IPG’s Deutsch LA has been selected as the new creative agency for Hyundai Motor America. Additionally, Cole notes that Edelman has launched a new specialty consulting group, Edelman Health. Learn more.
Have You Heard About BlueSky Yet?
In a #MorningBrew article, Alex Hickey discusses Bluesky, a decentralized social media protocol being developed by Twitter. The article notes that #blueskyaims to give users more control over their social media experiences by enabling them to choose who hosts their content and how it’s moderated. The protocol will be open-source, allowing third-party developers to create their own Bluesky-compatible social media platforms. The article also mentions that Bluesky has recently hired a new director, Jay Graber, who previously worked on another decentralized social media project, Mastodon. While the project is still in the early stages of development, Hickey suggests that Bluesky could have significant implications for the future of social media and online discourse. Learn more.
Meta Pitched AR Ads
Scott Nover reports on #Adweek that Meta (formerly Facebook) is looking to pitch augmented reality (AR) advertising to advertisers. During the #newfrontsconference, Meta’s vice president of global marketing solutions, Carolyn Everson, spoke about the potential for AR ads to provide immersive experiences for users. Everson also noted that Meta is developing AR tools that allow advertisers to create 3D models of their products and place them in the real world, similar to Snapchat’s AR Lens feature. Furthermore, Meta is experimenting with new ad formats that take advantage of AR technology, such as interactive try-on experiences for fashion and beauty products. The article highlights that Meta’s push into AR advertising comes as the company looks to diversify its revenue streams beyond traditional digital advertising. Learn more.
How Generative AI is Changing the Ad Space
Gavin Dunaway, Editorial Director of AdMonsters, explains in his article the concept of generative AI and how it is changing the advertising ecosystem. Generative AI refers to a type of artificial intelligence that can produce original and creative outputs, such as images, videos, and text. Dunaway discusses how generative AI is being used in advertising to create personalized and engaging content that is specifically tailored to individual users. For example, generative AI can be used to generate dynamic ad creatives that change based on user data, or to create custom videos that tell unique stories about a brand. The article also explores some of the ethical concerns surrounding generative AI, including the potential for misuse and the need for transparency and accountability in its use. Finally, Dunaway suggests that generative AI is likely to become increasingly important in the advertising industry in the coming years. Learn more.
AI-Developed Marketing is Already Here Despite Inaccuracies
MediaPost’s Ray Schultz reports on the results of a survey conducted by MIT Technology Review Insights, which found that the vast majority of companies are using artificial intelligence (AI) for marketing and customer engagement purposes. The survey of 1,004 executives revealed that 69% of companies are currently using AI for marketing, with another 13% planning to implement it in the near future. Furthermore, the report notes that companies are using #ai to enhance customer experiences, with 54% of respondents citing personalization as a key benefit of the technology. However, the survey also highlighted that companies face several challenges in implementing AI effectively, including the need for specialized talent and the difficulty of integrating AI with existing systems. Finally, the article suggests that AI is likely to continue to be a critical tool for marketers in the years ahead. Learn More.
What is John Listening To?
Learn what distinguishes a true purpose brand in this episode of the Beyond Profit Podcast.