MOBILE ADVERTISING

Advertisers Triple their Upfront Commitment with Snap

Snapchat | April 26, 2021

Advertisers are increasing their spending on Snap as the world reopens.

Snap reported US$770 million in Q1 revenue on Thursday, a 66% growth year on year, as the number of advertisers it deals with nearly doubled.

Snap's ad business is expanding in all ways. Direct response ads currently account for more than half of the platform's revenue. Snap, on the other hand, tripled the number of upfront commitments it got from brands this year compared to 2020.

Over the same time frame, Snaps' user base rose by 22% to 280 million, while average revenue per user increased by 36% to $2.74 year over year.

Since the majority of Snap's users use Android smartphones, insulating it somewhat from upcoming tracking changes on Apple’s iOS 14.5.

Ad rebound

Advertisers are increasing their spending on Snap as the world recovers from the pandemic and the ad economy heats up again.

Snap, which has been beefing up its direct response and e-commerce capability, is seeing travel and leisure advertisers, which have been hard hit by the pandemic, rebound “with a fury,” according to chief business officer Jeremi Gorman, highlighting the company's March acquisition of AR e-commerce platform Fit Analytics.

Ecommerce, CPG, technology, streaming, online education, and telco brands are all showing interest in the platform.

“We are seeing the return of some previously powerful categories, such as theatrical and movies,”she said.

Snap is prioritizing augmented reality, partnering with brands such as Sweat, Gucci, The North Face, and American Eagle on branded lenses this quarter. In Q1, almost half (40%) of Snap users used filters regularly, with more than half of them being branded.

“Augmented reality is one of our most exciting challenges as we look forward, and we are investing heavily in both core technology and community-facing AR apps on our service,” Evan Spiegel, co-founder and CEO of Snap, said during the earnings call.

Snap also introduced a TikTok-rival update, Spotlight, in Q4, which was used by more than 125 million people in Q1. India, Mexico, and Brazil are now among the countries that have access to this feature.

The IDFA to drop

Snap is still unsure how Apple's App Tracking Transparency changes, which are set to take place on Monday, would affect its business. However, the company expects to grow by 80% in the second quarter.

“It is not yet clear what the longer-term effect of the iOS platform updates might be on the topline momentum of the business,” said chief financial officer Derek Anderson.

According to Spiegel, Apple's decision to delay the updates until April has given Snap time to implement SKAdNetwork, Apple's solution for measuring user activity across its applications, which it is testing with partners along with other "privacy-centric" solutions.

Spotlight

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Spotlight

Clear Channel Outdoor has the most bulletin sign inventory in Chicago. Stretching from the Wisconsin state line through northern Indiana we cover the full market. Bulletins afford heightened visibility due not only to their size, but also because they allow creative “customizing” through extensions and embellishments.

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AD NETWORKS

IAS & Anzu Partner to Provide Media Quality Measurement for In-Game Advertising Environments

Anzu.io, IAS | August 02, 2022

Integral Ad Science a leader in digital media quality, today (July 28th, 2022) announced a partnership with Anzu, an in-game advertising leader. This partnership enables global brands and agencies to effectively monitor the quality of their in-game media investments in mobile gaming environments. Through this collaboration, IAS provides advertisers with Invalid Traffic (IVT) measurement and reports on viewability through the IAS Signal platform. “Gaming continues to emerge as a medium with broad appeal and growing reach. By partnering with Anzu, we now deliver in-game measurement and transparency for advertisers within gaming environments,” said Tom Sharma, chief product officer of IAS. “This integration sets the platform for quality standards within ad-supported gaming and allows advertisers to better understand and control the quality of their media on Anzu.” In-game environments have posed various challenges for verification measurement throughout the ad tech industry, such as multiple forms of device types, game developers, and platforms, all of which make it difficult to use a single tech suite for verification coverage. This strategic collaboration further delivers ad transparency into mobile gaming environments, continuing IAS’s progress related to in-game brand safety, suitability, IVT, and viewability measurement everywhere in the digital advertising ecosystem. “Anzu’s new partnership with IAS is the next step in standardising in-game viewability and performance in the mobile gaming industry, which is projected to reach $136 billion (£112.6bn) worldwide this year,” said Itamar Benedy, co-founder and CEO of Anzu. “Anzu’s new partnership with IAS is the next step in standardising in-game viewability and performance in the mobile gaming industry, which is projected to reach $136 billion (£112.6bn) worldwide this year,” said Itamar Benedy, co-founder and CEO of Anzu. “This new partnership means advertisers can now get enhanced visibility into the effectiveness of their campaigns. This further strengthens the already robust metrics and reporting advertisers benefit from when running in-game ad campaigns with Anzu.” “This important measurement advancement will help accelerate advertisers’ ability to scale their in-game media investments by further demonstrating the high performance of the Anzu platform,” said Joe Cady, EVP advanced advertising & partnerships, NBCUniversal. “We are excited to see Anzu and IAS partner to expand insights and streamline measurement operations for marketers as they evaluate their in-game media effectiveness.”

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AD NETWORKS

Moloco Ranks #95 on the 2022 Inc. 5000 Annual List

Moloco, Inc. 5000 Methodology | August 17, 2022

Today, Inc. revealed that Moloco placed 95th on its annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. The list represents a one-of-a-kind look at the most successful companies within the economy’s most dynamic segment—its independent businesses. Moloco joins the ranks of the world’s most growth-minded companies, including Facebook, Dave, Credit Karma, Scopely, and Skillz, who have been listed on the Inc. 5000 in previous years. In addition to its overall Inc. 5000 listing, Moloco ranked 9th among all advertising and marketing companies, 15th among all California companies, and 5th among all San Francisco metro companies. “Today’s mobile app developers are tasked with supercharging growth by finding their highest-value customers across the open internet. But performance marketing has never been so complex or important, as protecting user privacy has become the responsibility of every digital platform. That’s where Moloco comes in,” said Ikkjin Ahn, co-founder and CEO of Moloco. “Today’s mobile app developers are tasked with supercharging growth by finding their highest-value customers across the open internet. But performance marketing has never been so complex or important, as protecting user privacy has become the responsibility of every digital platform. That’s where Moloco comes in,” said Ikkjin Ahn, co-founder and CEO of Moloco. “The world’s smartest performance marketers rely on Moloco’s machine learning engine to drive user acquisition and retention at a speed and scale previously only seen within the so-called walled gardens of Google, Facebook, and Amazon. Our solutions unlock the power of every advertiser’s own, unique first-party data, creating a more equitable and profitable digital economy for all.” As the world has moved toward mobile, advertisers now require their campaigns to be not only programmatic, but also truly performant. Moloco’s rapid growth can be attributed to its advanced machine learning engine, powered by deep neural networks previously unavailable beyond the walled gardens. With Moloco Cloud DSP, performance marketing teams achieve faster return on ad spend, driven by machine-scale automation built to protect advertisers against privacy and regulatory risk and quickly adapt to data availability changes. The company recently expanded its executive team, with key hires from Disney, Google, Momentive, and RBC Capital Markets. Moloco also expanded its machine learning platform to new product categories, including Moloco Retail Media Platform for e-commerce marketplaces. The company also raised $150 million in Series C funding in 2021 at a $1.5 billion valuation by demonstrating not only the exceptional 4,455 percent three-year growth recognized by the Inc. 5000, but also 9 consecutive quarters of profitability, an achievement with few precedents among technology businesses. The companies on the 2022 Inc. 5000 have not only been successful, but have also demonstrated resilience amid supply chain woes, labor shortages, and the ongoing impact of Covid-19. Among the top 500, the average median three-year revenue growth rate soared to 2,144 percent. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000. The top 500 companies are featured in the September issue of Inc. magazine, which will be available on August 23, 2022. “The accomplishment of building one of the fastest-growing companies in the US, in light of recent economic roadblocks, cannot be overstated,” says Scott Omelianuk, editor-in-chief of Inc. “Inc. is thrilled to honor the companies that have established themselves through innovation, hard work, and rising to the challenges of today.” About Moloco Moloco’s goal is to make the digital economy more transparent, equitable, and profitable by delivering advanced machine learning to companies of all sizes. With Moloco’s machine learning platform for growth and performance, every app publisher and online retailer can now unlock the value of their unique, first-party data. Moloco Cloud DSP enables performance marketers to scale user acquisition quickly and achieve greater lifetime value through battle-tested prediction models. Moloco Retail Media Platform enables online retailers and marketplaces to establish their own performance ad business. Moloco was founded in 2013 by a team of former Google machine learning engineers. Headquartered in Redwood City, Calif., Moloco has nine offices across the US, UK, Korea, China, Japan, and Singapore. For more information, visit www.moloco.com. Inc. 5000 Methodology Companies on the 2022 Inc. 5000 are ranked according to percentage revenue growth from 2018 to 2021. To qualify, companies must have been founded and generating revenue by March 31, 2018. They must be US-based, privately held, for-profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2021. (Since then, some on the list may have gone public or been acquired.) The minimum revenue required for 2018 is $100,000; the minimum for 2021 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Growth rates used to determine company rankings were calculated to four decimal places. The top 500 companies on the Inc. 5000 are featured in Inc. magazine’s September issue. The entire Inc. 5000 can be found at http://www.inc.com/inc5000.

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PROGRAMMATIC ADVERTISING

IAB Europe Announces Results of its Annual Attitudes to Programmatic Research

IAB Europe | October 03, 2022

IAB Europe, the leading European-level industry association for the digital marketing and advertising ecosystem, today announced the results of its annual ‘Attitudes to Programmatic Advertising Study’. Now in its eighth year, this study has become an industry benchmark and helpful insight to show how programmatic advertising attitudes, adoption and strategies are evolving. This year the study tripled in responses with over 1000 industry professionals taking part across 29 markets in Europe. The respondents represent four stakeholder groups – advertisers, agencies, publishers, and ad tech vendors – to ascertain the views and directions from the entire ecosystem. More than half of the respondents across advertisers, agencies and publishers manage annual advertising budgets of €1m or above. Nick Welch, Head of EMEA Programmatic Sales at IAS and Programmatic Trading Committee Chair at IAB Europe said: The “Attitudes to Programmatic Advertising 2022 Study’ serves as an important annual benchmark towards programmatic strategies in digital advertising. The widening of the research shows its focus across various players in the industry from multiple markets. We’re grateful for all the respondents to the study and helping set the agenda for the coming 12 months. Even amongst the backdrop of tightening budgets and further media scrutiny, it’s encouraging to see that investment in programmatic is likely to increase. Alongside this, we’re witnessing tremendous appetite across growing environments such as CTV and audio. However, marketers must play a crucial role in these areas, ensuring that balance is found between optimising media spend, data transparency and delivering a targeted and enjoyable consumer experience.” Positive Outlook Driven by Connected TV All stakeholders (74% of advertisers, 80% of agencies and 68% of publishers) are expecting their programmatic investment to increase over the next 12 months. There seems to be consensus around connected TV as a key growth area; more than 50% of all stakeholder groups cite this as a key to programmatic growth over the next 12 months. Voice, almost non-existent as key to growth in previous years – makes a strong appearance this year with 32% of advertisers and 28% of agencies citing this as a key growth area. Commenting further on the investment trends, James Collins, SVP, Media Network, Rakuten Advertising said “The annual Attitudes to Programmatic Report from IAB Europe is an important indicator for the industry on the opportunities and challenges for programmatic advertising. It’s positive to see that CTV remains the largest growth area for programmatic, with key learnings in this report hopefully the industry can take a step closer to capitalising on this opportunity.” Media Cost Efficiencies Are Key to Investment More than a quarter of advertisers and agencies ranked cost efficiencies as the most important driver for programmatic investment. This is closely followed by granularity of controls and transparency of reporting. Advertisers also cite costs as a barrier to investment; 22% ranked it as the number 1 barrier. Quality of media is also a concern (38% ranked this as the first or second barrier to investment). For agencies, hiring and training staff is a key barrier to programmatic investment. Advertisers Shift from In-Housing to a More Dynamic Approach In 2021 50% of advertisers said they had an in-house model. This seems to have dropped significantly to 16% in 2022. There seems to be a more hybrid or dynamic approach with advertisers tapping into a range of methods such as outsourcing to a DSP, independent trading desk etc. This is perhaps being driven by the struggle to source the correct talent, paving the way for consultancies to play a more vital role in the process. Interaction and Quality Metrics Are Key to Measurement When asked which metrics are important to evaluate display campaigns that are traded programmatically, the majority of advertisers cited social interactions as the most important, as opposed to sales which was the top metric in 2021 (59% vs 37%). For agencies and publishers, it is in delivering quality metrics (60% and 53% respectively) that is most important. Shift in the Type of Data Used for Audience Targeting The study shows a decrease in the use of first-party data alongside an increase in second-party data. Whilst 2021 showed first-party data was the priority for advertisers, agencies, and publishers in 2021, this is now ranked third behind second-party data (the most popular priority averaging 57% with agencies leading at 60%) and third-party at 49%. The report, written by industry experts from IAB Europe’s membership, and forms part of a comprehensive programme of pan-European educational and guidance outputs published by the IAB Europe Programmatic Trading Committee. The full report with accompanying graphs can be downloaded from IAB Europe’s website HERE. About IAB Europe IAB Europe is the European-level association for the digital marketing and advertising ecosystem. Through its membership of media, technology and marketing companies and national IABs, its mission is to lead political representation and promote industry collaboration to deliver frameworks, standards and industry programmes that enable business to thrive in the European market.

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