▸ Week 41

• - News publishers collaborating to overcome brand safety blocking
• - Publishers addressing AI challenges at Digiday Publishing Summit
• - Connatix and JW Player merge into largest video tech platform
• - New certification provides GDPR clarity for ad tech companies
• - DOJ searching for remedies in Google’s search monopoly case
• - Microsoft plans to shut down retail media business
• - IAB Europe's Programmatic Day H2 2024 in Berlin approaching
  
  

News Publishers Are Banding Together To Beat Brand Safety Blocking. 

News publishers are tackling costly & overly cautious brand safety measures by creating the ProNews Collective, a PMP of trusted news sites designed to ensure safety without 3P brand safety technologies. The initiative, launched by Prohaska Consulting & Index Exchange, consolidates premium news publishers' inventory, including display, video, and audio ads, into a secure programmatic selling environment.

Matt Prohaska, CEO of Prohaska Consulting, emphasised that the goal is to redirect advertising dollars back to news publishers while allowing buyers to purchase ad space from multiple publishers simultaneously, ensuring both scale and safety. The ProNews Collective discourages the use of third-party brand safety tools, instead relying on internal safety measures set by publishers, such as excluding ads from sensitive content like war or disaster coverage.

Scheduled around the US presidential elections, the initiative aims to leverage high-traffic periods for optimal impact and assures advertisers they can choose specific publishers or contexts for their campaigns without having to commit to all. ProNews aims to provide a more equitable revenue share for publishers by reducing intermediary costs and countering the industry’s reliance on problematic last-click attribution methods that favor certain platforms over news publishers.

Media Briefing: Publishers confront the AI era during the Digiday Publishing Summit.

During the Digiday Publishing Summit, publishers expressed unease about the nature of their relationships with generative AI companies like OpenAI and Google, which are seen as the new major digital platforms. Some publishers, like Hearst, have secured content licensing deals with these AI firms, suggesting a potential for more equitable partnerships compared to previous platform dynamics.

However, smaller publishers are struggling to engage with AI companies for similar agreements, often finding themselves overlooked and without a straightforward way to initiate discussions. Overall, the situation remains complex, with some publishers optimistic about new traffic opportunities, while others seek more tangible benefits such as revenue sharing, which companies like OpenAI are currently not offering.

Connatix and JW Player Merge To Create the Industry’s Largest Video Technology and Monetization Platform.

JW Player and Connatix have merged to form JWP Connatix, establishing a broad platform for video technology and monetization aimed at broadcasters, publishers, and advertisers. The merger responds to shifts in digital video consumption towards Connected TV and streaming, requiring updated video strategies.

JWP Connatix will offer extensive streaming services, hybrid monetisation options, and AI-driven insights to enhance viewer engagement. The new entity, led by CEO Dave Otten and Chairman David Kashak, is headquartered in New York City with global offices. 

New Certification Initiative Launches to Give Ad Tech Clarity on GDPR Compliance.

The Coalition for Privacy Compliance in Advertising (CPCA) has collaborated with the UK's Information Commissioner's Office (ICO) to introduce a new privacy certification for ad tech companies, ensuring compliance with the UK's GDPR. This certification is designed to clarify GDPR compliance for ad tech businesses and bolster confidence amongst publishers and advertisers regarding their ad tech partners.

The CPCA plans to finalise and publicise the certification criteria by early 2025, with ambitions to extend similar frameworks across Europe to accommodate varying GDPR interpretations. Mattia Fosci, founder of the CPCA, emphasises that this certification aims to level the playing field amongst digital market participants and resolve ongoing confusion regarding GDPR compliance within the ad tech industry.

DOJ Searches for Remedies in Google Monopoly Case. 

As the DOJ continues its antitrust trial against Google, it is considering significant actions to curb the tech giant's control over search markets, potentially including breaking up parts of its business such as the Android operating system, Chrome browser, or Google Ads. This follows a ruling by Judge Amit Mehta in August, which determined that Google had maintained its search monopoly through illegal practices.

The DOJ is exploring remedies like forcing Google to divest certain businesses, open up its underlying search data to competitors, and end the revenue sharing agreements that keep Google as the default search engine on many devices. Additional measures may require Google to offer more transparency and control to advertisers and prevent Google from using its dominance to unfairly influence the burgeoning field of AI.

Google plans to appeal any decision but argues that such drastic actions would harm consumers, raise costs, and stifle innovation. The final proposals for remedies are due to be presented soon, with a trial for these remedies expected next spring and a decision by August 2025. 

Microsoft looks set to shutter its retail media business. 

Five years after acquiring the retail advertising platform PromoteIQ, Microsoft is reportedly phasing it out, pushing clients towards Criteo. Microsoft initially purchased PromoteIQ to boost its retail media strategy by linking publishers with retail advertisers, benefiting from PromoteIQ's client base which included major names like Kroger and Home Depot.

Despite early successes, Microsoft has faced challenges with PromoteIQ's profitability and has started redirecting its retail media efforts away from PromoteIQ towards partnerships like the one with Criteo. This shift includes potential layoffs at PromoteIQ and plans to offload its technology to an external partner, with Microsoft not publicly announcing the closure but moving towards integrating Criteo's technology into its advertising services.

The change has caused some disquiet among retailers, with concerns about the forced migration to Criteo's platform. This strategic shift reflects broader dynamics in the retail media sector, which is still evolving and requires companies to adapt quickly and develop new capabilities to stay competitive. 

IAB Europe's Virtual Programmatic Day H2 2024 Hybrid in Berlin. 

The Virtual Programmatic Day, the largest virtual event in the programmatic industry, will be held in a hybrid format in Berlin on 6th November 2024, hosted by Verve. It brings together global leaders to discuss trends in programmatic trading through panel discussions and interactive Q&As. Register here.

▸ Week 40

• - The US media market grew 8%, driven by programmatic deals and retail media.
• - IAB Europe releases a repository of European IAB initiatives.
• - Disney aims to automate 75% of ad sales by 2027.
• - Google ad tech antitrust trial: What's next after testimony concludes?
• - Publishers fear a Google ad breakup could backfire.
  

The US Media Market grew 8% in the year-to-August, Boosted by Programmatic Premium Deals and Retail Media.

The premium programmatic market, including PMPs and PG deals, saw a +47% year-on-year growth in the first eight months of 2024, driven by demand for brand-safe environments. Retail Media also grew +33% YoY, contributing to the overall +8% growth in the US advertising market, with digital media spending up +16%.

Programmatic Premium Deals now account for 48% of programmatic investments, a significant rise from 25% in 2020, and are projected to reach 50% by year-end. While open exchange ad spend grew by +10%, premium deals far outpaced it, with Travel Services and Technology sectors leading premium investments.

Despite CPM price reductions for Streaming Audio and Standard Display, Programmatic Premium Deals continued to command higher CPMs over open exchanges, reflecting the industry's growing preference for quality, transparent ad environments.

IAB Europe Publishes Repository of European IAB’s Initiatives.

IAB Europe has released a document titled ‘Repository of European IAB’s Initiatives for Responsible Digital Advertising’, showcasing various initiatives from its National Federation members across Europe. The repository includes contributions from countries such as Germany, France, Greece, Italy, and others, focusing on promoting a sustainable digital advertising ecosystem.

These initiatives align with key EU digital policy priorities, such as respecting user privacy, enhancing online safety, and building a sustainable digital industry. IAB Europe remains committed to evolving these initiatives and engaging with policymakers as the digital landscape continues to change.

How Disney is nearing its goal to automate 75% of ad sales by 2027. 

The Walt Disney Company plans to automate 75% of its advertising business by 2027, with over half of its streaming ad revenue already transacted programmatically in 2023. A key factor in this growth has been making its entire streaming inventory, including interactive ad formats, available for programmatic purchase.

Disney’s infrastructure allows ads to be published once and distributed across all platforms, enhancing efficiency. Expanding campaigns from Hulu to Disney+ increases reach by 40%, with minimal audience duplication.

Programmatic guaranteed deals have shifted to 70% biddable, requiring active management from sales teams. Some of Disney's largest advertisers are now spending up to $100 million annually in biddable environments.

What happens in the Google ad tech antitrust trial now that testimony is done?

The U.S. vs Google ad-tech antitrust trial, has concluded most of its testimony with closing arguments expected in November. The trial, presided over by Judge Leonie Brinkema, was shorter than anticipated but included high-profile testimonies and significant evidence.

DOJ argues that Google holds monopolies in three ad-tech markets and has used its dominance to harm competitors and customers, including publishers and advertisers. Google defends itself by claiming its actions were in the interest of privacy and ad quality, while critics argue its practices hinder competition.

Legal experts suggest the court may reject Google’s argument that ad tech is a single market, favoring a narrower interpretation that could align with past antitrust cases. The outcome of the trial may influence future decisions regarding the structure of the open internet and could intersect with parallel trials, such as the ongoing Google search case.
 

Breaking point or breakup? Why publishers fear a Google ad breakup could backfire.

With the Google ad-tech antitrust trial nearing its end, speculation is rife about the potential outcomes, including a breakup or hefty fines. Publishers, who have long struggled under Google's dominance, are concerned that a breakup of the ad empire could harm their access to programmatic ad revenue especially if Google retains control of key platforms like DV360 and Google Ads.

Many are conflicted, as they desire change but also fear losing the revenue Google provides. Past experiences, such as News Corp’s failed experiment with switching ad servers, underline the risks for publishers if Google's sell-side business is split.

Industry leaders like The Trade Desk's CEO, Jeff Green, have noted the complexity of dismantling Google's integrated ad systems, suggesting DV360 could easily pivot to other Google properties. Ultimately, many believe a breakup is unlikely, and instead expect Google to face fines or behavioral remedies, although the trial's outcome remains uncertain. 

▸ Week 39

• - Highlights from Digiday Publishing Summit, September 2024
• - Tech Lab launches privacy-focused PAIR protocol
• - UK’s CMA still concerned over Google’s updated privacy plans
• - The new CTV Advertising Guide 2025 is available
• - Washington Post and Vox adjust subscription strategies in 2024
• - ID Provenance introduced in OpenRTB for better transparency
  

Media Briefing: Overheard at the Digiday Publishing Summit, September 2024 edition 

At the Digiday Digiday Publishing Summit, publishers voiced frustration over Google's influence on the digital advertising landscape, particularly concerning its antitrust trial and the decision to shift third-party cookie deprecation responsibility to Chrome users. Many expressed concerns about the lack of control they have over Google's decisions, which significantly impact their businesses.

Discussions revealed dissatisfaction with Google's ad products, citing issues like self-dealing, poor monetisation options, and lack of transparency, leaving publishers feeling like they have little agency. The opt-in cookie plan from Google was compared to Apple's App Tracking Transparency (ATT), with skepticism about its effectiveness.

Publishers also expressed doubts about the effectiveness of Google's Publisher Provided Signals (PPS), noting that despite initial enthusiasm, they have seen little positive impact and feel misled. Overall, there was a pervasive sense of mistrust and dissatisfaction with Google's handling of these issues.

Tech Lab releases PAIR protocol for the industry.  

IAB Tech Lab has launched the PAIR (Publisher Advertiser Identity Reconciliation) protocol developed by the Rearc Addressability and Privacy Enhancing Technologies working group, to enable privacy-centric audience targeting without third-party cookies. Initially donated by Google, the protocol has been developed into an open standard that supports interoperability between data clean rooms and DSPs.

IAB Tech Lab will update the PAIR prebid module and publish open-source reference implementations to encourage adoption. The protocol is now open for public comment until October 25, 2024. 

CMA Says “Competition Concerns Remain” Over Google’s Privacy Plans.

The UK’s Competition and Markets Authority (CMA) has expressed ongoing concerns about Google’s revised approach to the Privacy Sandbox. After Google decided to make the Privacy Sandbox optional instead of removing third-party cookies entirely, the CMA invited stakeholders to share their views and found that competition concerns remain.

The regulator is in continued discussions with Google and is also collaborating with the Information Commissioner’s Office (ICO) to address privacy and user choice issues. The CMA stated that Google’s current commitments would need updates to support competition in digital advertising and plans to decide on accepting any changes by Q4 2024 after further public consultation.

The CMA’s concerns have persisted since it began investigating the Privacy Sandbox in 2021, and despite Google’s changes, both the CMA and ICO remain cautious about the impact on consumer privacy and competition. The ICO has also expressed disappointment with Google’s shift away from fully deprecating third-party cookies. 

The CTV Advertising Guide 2025 is Now Available to Download. 

VideoWeek’s CTV Advertising Guide for Europe highlights significant developments in the European CTV market. It also provides insights into the market’s challenges and opportunities, covering topics such as programmatic approaches, CTV pricing, and strategies for advertisers to succeed in this space—link to guide.

Digiday+ Research News Subscription Index 2024: Washington Post, Vox shift their strategies.

The publishing industry faced significant challenges in 2024, including layoffs at major outlets like The L.A. Times, Business Insider, and The Washington Post, alongside disruptions caused by Google’s changes to its cookie deprecation plan. Publishers who had invested in alternative IDs and first-party data now need to reassess their ad strategies.

As advertisers become more "news avoidant" due to sensitive global events, publishers are increasingly relying on subscriptions for revenue. Gannett, The New York Times, and The Wall Street Journal reported significant growth in digital-only subscriptions, highlighting this shift.

Digiday’s Subscription Index analyses publishers’ strategies across various dimensions, including gating models, member benefits, and pricing structures. In 2024, some publications like The Washington Post and Vox shifted to hybrid gating strategies, reflecting a need to diversify revenue streams amidst economic uncertainty.

Regional publishers like the Chicago Tribune adjusted their free article thresholds and subscription pricing to balance ad revenue and subscription growth. Meanwhile, national publications such as Business Insider and The New York Times aggressively increased subscription prices, focusing on premium content strategies and first-time subscriber discounts.

ID Provenance Added to OpenRTB.

In 2024, the AdTech industry introduced the term "ID Bridging," which involves using alternative methods to identify users when direct identifiers like cookies or device IDs aren't available. This practice raised concerns as identifiers were being passed in critical OpenRTB attributes (buyeruid and ifa), leading to industry-wide discussions about the proper use of these fields.

In response, IAB Tech Lab launched a workstream to update the OpenRTB 2.6 specification, aiming to clarify the expected use of these attributes and introduce new signals for transparency. The updates, detailed in the 2.6 GitHub Repository, include revised attribute descriptions, new attributes for extended identifiers, and extensive implementation guidance. 

▸ Week 38

- DMEXCO Briefing: Google’s antitrust troubles spark schadenfreude
- U.S. v. Google: Ad tech antitrust trial by the numbers
- Google offered to sell AdX, but EU publishers weren’t satisfied
- Privacy Sandbox: Your feedback in action
- IAB Europe releases in-store retail media standards for comment
- Publishers' ad revenue rebounds, H2 looking even brighter

DMEXCO Briefing: Google’s antitrust troubles spark uneasy schadenfreude.

For nearly two decades, ad executives watched Google dominate the ad industry, resigning themselves to its untouchable power. However, recent revelations and the DOJ’s antitrust case against Google have sparked a shift in sentiment, leading to a sense of schadenfreude among those who once felt powerless.

At DMEXCO, there is now a palpable vibe of cautious optimism as executives savor Google’s legal troubles. Despite this, there is still fear that Google might escape unscathed, as its complex roles in the ad ecosystem blur the lines of anticompetitive behavior.

Some industry insiders remain skeptical, comparing the situation to battling a villain who always finds a way to return. Nevertheless, this rare moment of collective satisfaction has brought the ad tech community closer together.

U.S. v. Google: Ad tech antitrust trial by numbers — so far.

The U.S. Department of Justice is pursuing a trial against Google’s $307 billion-per-year ad empire in a Virginia courtroom, aiming for a potential breakup of its ad-tech dominance. The trial highlights the complex workings of Google’s ad tech, with detailed discussions on components like its ad server (DFP) and ad exchange (AdX).

Key revelations include Microsoft’s $2 billion bid for DoubleClick, Google's "Three Pillars" strategy, and the significant market influence Google wields, such as keeping 37% of every dollar flowing through its platform. The DOJ’s case also examines Google’s dealings with Facebook, including the Jedi Blue arrangement, and its impact on publishers like NewsCorp and Gannett.

Witnesses revealed stark statistics, such as Google’s 53% win rate in auctions compared to rivals' 1% or less. The DOJ plans to rest its case by September 20, with Google’s defense set to begin the following week.

Google Offered to Sell Off AdX, but EU Publishers Weren’t Satisfied, Reports Claim:

Google reportedly offered to sell off its ad exchange, AdX, to avoid an EU antitrust investigation into its ad tech business, but the move was deemed insufficient by European publishers to restore market balance. The offer came after the European Commission’s initial objections, which suggested forced divestment might be necessary to restore competition.

Publishers were not satisfied with just the sale of AdX and wanted more of Google's ad tech stack spun off. Recent reports indicate that the EU may not force a divestiture, finding it too complex, and may instead require Google to end specific anticompetitive practices.

The U.S. Department of Justice, however, continues to push for the divestment of AdX and Google's publisher ad server DFP. Google's willingness to sell AdX suggests it sees it as the most expendable part of its ad tech stack.

Your feedback in action: Upcoming Privacy Sandbox developments. 

The Privacy Sandbox reflects years of input from developers, businesses, users, advocates, and regulators, with recent updates focusing on enhancing user choice. H1 2024 saw significant progress as ad tech companies tested core Privacy Sandbox technologies, such as Topics, Protected Audience, and Attribution Reporting APIs, leading to valuable feedback and proposals for enhancements.

Google proposed updates to the Protected Audience API, including support for deal-based use cases, clickiness signals for better bidding optimisation, and extending the interest group lifespan from 30 to 90 days to support advertisers with longer customer journeys. These updates aim to balance user privacy with industry needs, incorporating feedback from stakeholders to refine the Privacy Sandbox.

Industry leaders have expressed optimism about these changes, anticipating improved performance metrics and more effective ad strategies. Google remains committed to collaborating with the ecosystem to continuously improve Privacy Sandbox and advance online privacy.
 

IAB Europe and IAB Release First-Ever In-Store Retail Media Definitions and Measurement Standards for Public Comment. 

IAB Europe and IAB have released the first industry definitions and measurement standards for in-store Retail Media, now open for public comment until November 1, 2024. These standards aim to unify definitions, measurement, and guidelines for ad formats and store zones, addressing the expanding in-store Retail Media opportunities.

The initiative builds on previous Retail Media guidelines and was developed through a collaborative process involving key industry stakeholders, including 14 Retail Media Networks. The standards cover essential areas such as terminology, ad formats, store zone classifications, and measurement guidelines for in-store media.

IAB leaders emphasise the importance of these standards in driving consistency, transparency, and new revenue streams for retailers, brands, and technology providers. As in-store Retail Media continues to grow, these standards are seen as a critical step toward wider adoption and cross-channel integration.

Publishers’ ad revenue rebounded in the first half, but H2 is looking even brighter.

The latest Media Ad Sales Trend Flash Report from Boostr shows positive ad sales trends for the first half of 2024, suggesting a rebound from the challenges of 2023. Direct-sold advertising campaign deal sizes and RFP volumes both increased in Q1 and Q2, with Q2 seeing the highest average deal size since Q1 2023.

However, some publishers reported that Q2 was still somewhat soft, though they expect a stronger performance in the second half of the year, especially with pre-booked revenue showing year-over-year growth. RFP volumes rose significantly in several advertiser categories, including utilities, tech, and professional services, although luxury is anticipated to decline in 2025.

Net revenue retention improved slightly, with more revenue coming from existing clients, indicating that advertisers are becoming more confident and are starting to unlock budgets held back earlier in the year. Overall, the digital media industry appears to be on a positive trajectory heading into the latter half of 2024.

▸ Week 37

DOJ accuses Google of knowingly taking power from publishers as government enters emails and audio as evidence.

The U.S. Justice Department presented internal Google documents in court revealing the company's strategies to counteract header bidding, a rival monetisation technology that threatened its control over online ad spend.

The documents suggest Google executives were aware of industry concerns regarding the company's evolving publisher platform, DoubleClick, but continued to push forward with monetisation tactics. 

Witnesses, including former Google employees, discussed changes like the move to a first price auction and the introduction of Unified Pricing Rules (UPR), which publishers felt reduced their control. Evidence also showed Google's efforts to protect its dominance, such as disabling rivals' tools to set higher floor prices.

During testimony, industry leaders like PubMatic CEO Rajeev Goel and former Rubicon Project CTO Tom Kershaw highlighted the challenges of competing with Google. The case focuses on whether Google’s practices have stifled competition and whether its commitments to open competition have been upheld.

Google Ads Will Now Use A Trusted Execution Environment By Default.

The digital ad ecosystem is evolving towards greater privacy, requiring advertisers to better manage their first-party data. Google Ads has introduced a new feature called confidential matching, using a trusted execution environment (TEE) to securely handle first-party data for ad targeting and measurement.

Confidential matching, built on Google Cloud, ensures that only the advertiser has access to their data, reducing the risk of data leakage. This feature is now the default for all uses of first-party data in Google Ads and is free for users.

Google is collaborating with the IAB Tech Lab to create best practices for TEE use and has made its TEE architecture open-source. The aim is to build privacy into the system without extra cost, making it accessible to advertisers of all sizes. 

Time Spent with Commercial Media Has Risen Since the Pandemic, Finds IPA.

UK adults spend 64% of their media consumption time on commercial media, with a rise in time spent since 2020, suggesting subscription services aren't significantly eroding this share. Younger audiences (16-34) spend 67% of their media time on commercial platforms, although this is a decline from 76% in 2015.

The report highlights the evolving landscape, with ad-funded streaming services gaining reach and commercial TV seeing a decrease in share but maintaining significant presence. The study recommends diversifying media plans to effectively target different age groups and their preferred platforms.

Unraveling The Mystery Of PubMatic’s $5 Million Loss From A “First-Price Auction Switch

PubMatic lost $5 million in 2024 revenue after Google DV360 updated its bidding logic to stop favoring second-price auction signals, which PubMatic was still using. Although most of the industry shifted to first-price auctions years ago, PubMatic had been tagging its auctions as second-price, allowing it to win more bids from DV360.

With DV360's update in May, PubMatic’s win rate dropped, redistributing the $5 million to other exchanges using first-price auctions. This highlights that some SSPs were still leveraging second-price auctions despite the industry-wide move to first-price models.

Programmatic Ads, Affiliates, and Subscriptions: Where are Publishers Finding Growth?

Publishers face challenges as major tech platforms capture most ad revenue growth and deprioritise news content, while AI further diverts traffic from their sites. However, some publishers are finding growth by diversifying their revenue streams. 

For example, Reach and Dotdash Meredith see growth in data-driven ads, partnerships, and licensing deals; The New York Times focuses on subscriptions and digital ads; and BuzzFeed leverages AI to boost audience engagement and programmatic revenues.

Other publishers like Future, Gannett, and Ziff Davis also report growth in digital advertising, affiliate revenues, and subscriptions despite overall market challenges.

Madison and Wall forecast $397 billion in 2024 ad spend.

The U.S. advertising industry grew by 9.6% in Q2 2024, driven by a healthy economy and easy comparisons to last year, reaching a projected $397 billion in total spend for 2024.

Growth is expected to slow in the latter half of the year due to high growth rates in 2023. Digital ad platforms, especially retail media networks, led growth with a 16.4% increase, accounting for 67% of ad revenue. Political and issue advertising are significant contributors, projected to add $16 billion.

Traditional media is expected to face limited growth due to challenges like consumer identification and brand safety concerns. Marketers are increasingly focused on performance over content, impacting their media investment decisions.

Google’s ad tech impact on publishers front and center during opening day of DOJ’s antitrust trial.

The U.S. Justice Department's antitrust trial against Google could lead to the breakup of its ad tech tools, accusing the company of monopolistic practices in the digital ad market.

The DOJ argues Google acquired its dominance by buying competitors, controlling the market and diminishing publishers' independence, which resulted in significant financial losses for publishers.

Google's defense claims the DOJ's case relies on outdated market definitions and ignores existing competition and industry changes, such as AI.

Witnesses like Gannett's Tim Wolfe highlighted Google's dominance and the industry's reliance on header bidding to counteract it, showing the challenges publishers face breaking free from Google's ecosystem.

The trial follows similar allegations by the UK's Competition Market Authority against Google's practices. Both trials suggest potential significant changes in the digital ad industry in the coming weeks.