Olempic
FTC Cracks Down on Location Data Providers for Lack of Consent and Transparency
Summary
- Transparency and consent issues in data-driven advertising industry highlighted; FTC settles with location data providers Mobilewalla and Gravy Analytics for collecting and selling sensitive data without consumer consent.
- Mobilewalla and Gravy Analytics accused of selling location data without consumer awareness, including sensitive details like medical decisions and political activities.
- FTC criticizes real-time bidding for enabling unfair data collection practices and bans Mobilewalla from selling sensitive data without verifying consent.
Why it matters? | Strategic Impact
Understanding the recent FTC settlements with Mobilewalla and Gravy Analytics over the misuse of location data is crucial for industry stakeholders to navigate data privacy complexities and regulatory scrutiny effectively.
Key Areas Of Focus
- Data Privacy and Compliance
- Strategic Positioning in AdTech
The Significance of Curation in Ad Tech Industry and Advertising
Summary
- Curation in the ad tech industry is a highly debated concept with conflicting definitions, likened to creating diverse solutions like skateboards, cars, and airplanes in response to the need for ‘personal mobility devices.’ Some view it as a crucial technological advancement for advertising, distinct from traditional premium ad networks.
- In the context of advertising, curation mirrors the art world’s concept, aiming to assist advertisers in selecting the best content from a vast array of online publishers. With the internet hosting over 200 million active websites and a continuous influx of new domain registrations, the demand for effective curation is heightened.
- Advertisers seek curators to filter through the abundant data signals and identify suitable ad placements meeting their specific criteria, from targeting large publishers to audience-based ad placements. On the other hand, publishers possess valuable consumer data and regain control by curating data exchange for higher CPMs.
- Curation’s strategic distinction lies in its tailored content combinations from various sources compared to exclusive inventory focus of premium networks. Leveraging AI and machine learning, ad tech platforms efficiently curate audiences within premium inventory, enhancing precision and paving the way for future advancements in advertising.
- The future of advertising envisions widespread adoption of curation driven by AI, leading to improved ad relevance and personalized placements. As curation evolves, the industry may explore concepts like ‘dynamic curation,’ ultimately transforming the advertising landscape.
Why it matters? | Strategic Impact
The concept of curation in ad tech is revolutionizing how advertisers and publishers interact with audiences, marked by its integration of AI and machine learning, it addresses pressing industry dynamics and leverages data privacy compliance.
Key Areas Of Focus
- Enhanced Audience Targeting and Data Utilization
- Technological Advancements
- Industry Adaptation and Trends
Media Arbitrage: Transparency in Agency-Client Relationships
Summary
- Belsky, former CEO of Dentsu agency 360i and current chief of Acadia, highlights the issue of a lack of transparency in the agency/client relationship, citing the ‘trading desk fiasco’ as an example where agencies made significant margins without brands understanding the process.
- Belsky advocates for educating advertisers about the drawbacks of principal-based buying, where agencies buy ad inventory in bulk and resell it to clients at a higher rate for profit.
- He emphasizes the need for agencies to act as transparent fiduciaries for a brand’s budget, advocating for fair fees based on mutual agreement for quality work.
- Belsky questions the role of agencies, suggesting that they should prioritize client benefits over excessive profit margins, akin to being a thoughtful service provider rather than a mere middleman.
Why it matters? | Strategic Impact
This article highlights the ongoing challenges in the agency-client relationship within ad tech, particularly focusing on the lack of transparency and ethical considerations surrounding media buying practices.
Key Areas Of Focus
- Media Arbitrage and Transparency
- Programmatic Advertising and Emerging Solutions
GroupM Forecast: Global Advertising Industry Growth and Trends
Summary
- GroupM forecasts the global advertising industry to exceed $1 trillion in revenue by 2024 and grow 7.7% to $1.1 trillion in 2025. The top five digital advertising companies (Google, Meta, ByteDance, Amazon, and Alibaba) will receive over half of this revenue.
- Digital advertising is projected to contribute 81.7% of revenue in 2025, including income from streaming TV, digital out-of-home, and online newspapers and magazines. Streaming TV revenue is expected to surge by 12.9%, while linear TV revenue will only grow by 1.9% in 2025.
- Global retail media ad revenue is anticipated to surpass TV revenue for the first time in 2025, reaching $176.9 billion with significant growth in North America and particularly in China.
- AI tools are shaping the advertising landscape, with major platforms investing heavily in AI agents. However, AI purchase decision-making remains in its nascent stages.
- Publicis stands out among agency holding companies due to its tech strategy, leadership, and deal-making successes.
Why it matters? | Strategic Impact
Understanding the projected trends and growth in the advertising industry can significantly shape strategic decisions for Nativo Inc., especially considering its focus on branded content and leveraging machine learning and artificial intelligence.
Key Areas Of Focus
- Digital Advertising Dominance
- Impact of AI in AdTech
- Retail Media Growth
US Federal Court Rejects TikTok’s First Amendment Suit; Netflix Explores Live NFL Games; Ad Tech Consolidation Continues
Summary
- A US federal appeals court dismissed a lawsuit by TikTok and creators challenging the law enforcing a ban or sale of the app, citing national security concerns. When effective in January, Americans can have TikTok, but app stores like Google and Apple cannot support updates or new downloads.
- Netflix is venturing into live NFL games on Christmas, introducing advertising to ad-free subscribers. This move poses challenges as live events and sports demand more advanced ad tech.
- Ad tech industry witnesses increased M&A activities with acquisitions like Experian’s purchase of Audigent. Channel Factory, a YouTube specialist, is nearing a deal, joining other recent consolidations.
Why it matters? | Strategic Impact
This article highlights significant developments in the ad tech landscape, relevant to programmatic advertising, streaming services, and ad tech consolidation, all crucial for Nativo to adapt to market dynamics.
Key Areas Of Focus
- Impact of TikTok Ban Legislation
- Netflix’s Foray into Live Sports with Ads
- Ad Tech Merger and Acquisition Trends
Mars United’s Acquisition by Publicis and Focus on Commerce Marketing
Summary
- Mars United, now under Publicis following an acquisition, faces increased competition for indie agencies.
- Advantages of the acquisition include access to Epsilon’s CORE ID identity resolution service and Citrus Ad retail media DSP.
- Rob Rivenburgh, the CEO of Mars United and Publicis Commerce global group, highlights leveraging data for commerce and driving sales.
- Publicis Commerce emphasizes the combination of advertising, creative strategy, and brand marketing for effective sales.
- Rivenburgh expresses thoughts on the growth and sustainability of retail media amidst increasing costs and market dynamics.
Why it matters? | Strategic Impact
The acquisition of Mars United by Publicis highlights significant shifts within the advertising technology landscape, particularly concerning the consolidation trend among major players. This development has vital consequences for stakeholders in the ad tech industry, from independent agencies to technology vendors.
Key Areas Of Focus
- Consolidation and Identity Resolution in Ad Tech
- Retail Media Landscape
- Market Growth and Challenges