In this week’s Week in Review: Spotify builds an SSP, ITV uses AI for show development, and Perplexity considers publisher deals.
Top Stories
Spotify Targets Video Ad Growth with Ad Exchange Launch
Music streaming service Spotify has launched its own ad exchange in an effort to scale its programmatic ad sales, and is initially focussing on video advertising, Axios reported this week. The Trade Desk is signed up as the first demand-side platform (DSP) partner for the product, which is known as Spotify Ad Exchange or SAX internally.
SAX has started undergoing testing through The Trade Desk, with buys running through The Trade Desk’s direct-to-publisher product OpenPath, but SAX will be able to plug into other DSPs in the future. A spokesperson for The Trade Desk said the integration would give advertisers direct access to Spotify’s inventory with high levels of transparency.
While Spotify is primarily known as an audio platform, it’s been growing out its video offering in recent years. It started hosting music videos in some of its markets earlier this year, and is continuing to expand into new territories. It is also set to begin paying creators to host video content on its platform, and launched a CTV-specific ad offering with Roku last year.
ITV to Use GenAI for Show Development
ITV will use AI to generate programme ideas, the Telegraph reported last week, citing a new job listing for an AI expert to develop ideas for “TV shows, films, and digital-first content”. Their duties will include using GenAI to assist with “character development” and “ideation”, according to the job description.
The use of AI in TV and film production has caused concern among creatives, prompting strikes last year in Hollywood by writers and actors worried that their work or likenesses could be replicated without proper compensation.
“At ITV we are using AI tools to enhance and expand our creative and production processes,” said an ITV spokesperson. “While nothing can replace the human creativity of our teams, we are exploring how GenAI can help our staff to work more efficiently and creatively and optimise our content for viewers.”
Perplexity Seeks Rev Share Deals with Publishers, After News Corp Lawsuit
The Wall Street Journal’s publisher Dow Jones and the New York Post, both of which are owned by News Corp, filed a lawsuit against AI-driven search business Perplexity this week, claiming copyright infringement. The two accused Perplexity of “a massive amount of illegal copying of publishers’ copyrighted works” In the wake of the filing, Perplexity CEO and founder Aravind Srinivas said his company is keen to agree revenue share deals with publishers, claiming that Perplexity had spoken with News Corp about the possibility of such a deal prior to the lawsuit being filed.
Perplexity had drawn the ire of a number of publishers, whose content helps inform Perplexity’s search results, since the AI startup diverts traffic away from their own properties. Unlike OpenAI, Perplexity hasn’t yet agreed licensing deals with publishers whose content it uses. And while it claims it doesn’t scrape content from publishers’ sites which actively block its crawlers, some are sceptical. The New York Times has stated it still sees its content appearing in Perplexity search results, despite its effort to block the company.
However, speaking (somewhat awkwardly) at a Wall Street Journal event this week, Srinivas said that Perplexity is working on a revenue sharing model which it will put in place once it starts running ads. “The whole point I’m here is to make it very clear that I would love to have a commercial contract [with publishers],” he said.
The Week in Tech
IAB Tech Lab Pushes to Standardise New CTV Ad Formats with ‘Ad Format Idol’
IAB Tech Lab this week announced a new initiative called ‘Ad Format Idol’, which seeks to standardise emerging CTV formats, enabling efficient programmatic transactions and broader adoption across the industry. Industry stakeholders are invited to submit their most successful CTV ad formats between now and January 22nd next year, and submissions will be evaluated by a task force appointed by Tech Lab’s Advanced TV Commit Group. This group will select a number of formats, and these will be passed on to the Advanced TV and Programmatic Supply Chain working groups, which will work to update their respective specifications. Read more on VideoWeek.
Irish Data Regulator Fines LinkedIn €310 Million Over Ad Targeting
Ireland’s Data Protection Commission has handed professional social network LinkedIn a €310 million fine today, stating that LinkedIn has violated Europe’s General Data Protection Regulation (GDPR) in its processing of personal data for behavioural analysis and ad targeting. The ruling was based on a complaint raised back in 2018 by French privacy advocacy group La Quadrature Du Net, which claimed that LinkedIn was using personal data for advertising purposes without a proper legal basis for doing so. The data regulator says that LinkedIn has not had a legal basis for processing data, has not been transparent about how it uses data, and has been misleading towards users in terms of how it uses their data. Read more on VideoWeek.
Meta Tests Facial Recognition Tech to Crack Down on Scam Ads
Meta is introducing facial recognition technology to detect scammers fraudulently using celebrities in ads, the BBC reported on Tuesday. The tech will compare images from ads flagged as dubious with celebrities’ Facebook or Instagram profile photos, then automatically delete fraudulent ads. Meta said the system is currently in “early testing”.
DoubleVerify to Measure LinkedIn Video Ads
DoubleVerify, a measurement and verification firm, is expanding its media quality measurement to video ads on LinkedIn. “With DV’s viewability metrics for video ads on LinkedIn, customers can gain valuable insights to optimise their B2B campaigns and increase performance on a safe and trusted platform,” said Abhishek Shrivastava, VP Product at LinkedIn. The news follows last week’s announcement that DV would measure Spotify video ads.
Magnite and Disney Extend Sell-Side Partnership
Magnite, a sell-side ad tech business, has announced a two-year extension to its partnership with Disney, continuing to monetise the entertainment giant’s entire ad-supported inventory. The companies have worked together for six years, calling Magnite “Disney’s preferred supply-side technology partner.” Magnite facilitates transactions for all 30+ DSPs that Disney works with, according to the partners.
Hightouch Unveils First-Party Targeting and Measurement for CTV
Hightouch, a customer data platform (CDP), has launched a new product allowing advertisers to target, match and measure first-party audiences across the CTV ecosystem. The product enables advertisers to sync first-party audiences to DSPs and OEM CTV platforms, including LG Ad Solutions, Roku Advertising, Samsung Ads, and Vizio Ads. “We are expanding first-party targeting, identity matching, and measurement to direct CTV channels like OEMs and streaming apps where, historically, fragmentation has been a real challenge,” said Tejas Manohar, co-CEO of Hightouch.
Nexx360 Extends Cloud-Based Programmatic Bidding Solution to Video
Nexx360, a French ad tech start-up, is extending its cloud-based programmatic bidding capabilities to video. The Programmatic Cloud for Video product aims to help publishers increase revenues, control ad auction dynamics, maximise ad delivery rates, and reduce their carbon footprint. The product bypasses classic header bidding using a cloud-based mediation layer to produce a latency-free solution, according to the company, enabling publishers to integrate with multiple SSPs without using significant processing power.
LiveIntent Cuts Staff Following Acquisition by Zeta Global
LiveIntent, an email marketing company, has laid off 35 staff following its acquisition by Zeta Global, according to Adweek. The layoffs affect 22 percent of LiveIntent’s 159 employees, and will continue until 22nd November. Zeta Global acquired LiveIntent this month for $250 million.
The Week in TV
Viaplay Slashes Losses as Turnaround Continues
Half way through last year, Nordic broadcaster Viaplay announced a major change in direction, as the company found itself in dire financial straits. An ambitious international expansion plan had failed to grow as quickly as had been hoped, resulting in unsustainably high losses. This change of course was painful – the company laid off a quarter of its staff, replaced its CEO, and exited several international markets. The result however has been a steady improvement in Viaplay’s balance sheet. And the broadcaster’s Q3 results, released on Tuesday, show that its quarterly losses have fallen significantly. Operating income before associated company income and items affecting comparability – the financial indicator used by Viaplay’s management to analyse underlying profit – sat at SEK -56 million (-£4.1 million) across the quarter. Read more on VideoWeek.
ITV Studios Launches Digital Label Zoo 55 for New FAST and YouTube Channels
ITV Studios is launching a digital label called Zoo 55, expanding its distribution to YouTube channels, social media and streaming services. Zoo 55 will launch new channels across AVOD and FAST platforms, and create environments for audiences to engage with ITV Studios brands on Roblox, Fortnite and Minecraft. The company has named Martin Trickey, former Group Head of Digital at Warner Bros. International Television Production, as Managing Director.
Canal+ Drives Vivendi Revenues Ahead of Proposed Spin-Off
Vivendi, the French media company, has posted a 4.5 percent YoY rise in nine-month revenues, driven by its Lagardere and Canal+ businesses. The news comes as Vivendi seeks to split Havas, Louis Hachette and Canal+, listing the latter on the London stock exchange. “These performances confirm the strength of our main businesses and their capacity to become independent if the Shareholders’ Meeting convened on Dec. 9 2024 approves the group’s proposed split project,” said Vivendi Chairman Yannick Bollore and CEO Arnaud de Puyfontaine.
Sky Losses Doubled Last Year
Sky’s annual losses doubled last year, the FT reported this week, following increased investment in sports programming and film/TV production. The broadcaster reported an operating loss of £224 million in 2023, widening from a loss of £111 million in 2022. Its outlay included more than £5 billion for the Premier League, and £3.4 billion in programming costs. Revenues were flat at £10.2 billion in 2023, with 1.5 percent YoY growth for its D2C business, which generated £8.5 billion in revenues. Sky said the increase was driven by continued growth and price rises for its mobile, broadband and streaming businesses, including its smart TV product, Sky Glass.
Tubi Eats into Freevee and Pluto TV Viewership in UK, Finds Kantar
This summer saw the UK launch of Tubi, the Fox-owned AVOD service aiming to tap into the appetite for free streaming content. New research from Kantar suggests the launch has eaten into the number of active viewers on rival free ad-supported streaming services.
Kantar’s research indicates “a heavy overlap” between Tubi viewers and those on Pluto TV and Freevee. The report found that 48 percent of Tubi viewers also use Pluto TV, and 35 percent use Freevee. While there was “no noticeable impact” on paid SVOD services, both of these free services saw a reduction in the number of active viewers after the launch of Tubi. Read more on VideoWeek.
Disney to Name Bob Iger’s Replacement in Early 2026
Disney will name a new CEO in “early 2026” as Bob Iger prepares to step down – for the second time. The CEO left the post in 2020 and was replaced by Bob Chapek, but Iger returned in 2022. The company has also appointed James Gorman, ex-CEO of Morgan Stanley, as chair.
Netflix Raises Prices in Japan, Europe, Middle East and Africa
Netflix is raising subscription fees in Japan, parts of Europe, the Middle East and Africa, according to the BBC. Netflix added 5.1 million subscribers globally in the latest quarter, its lowest intake since Q1 2023, in signs that the boost spurred by its password-sharing crackdown is starting to fade.
TV Delivers Highest Sales Contribution Finds Ekimetrics
A study by Ekimetrics, a European data science firm, has found TV to be the leading media contributor to sales, according to M6 Publicité. The SNPTV #ROITV5 study analysed 750 campaigns between 2021 and 2023, and found that TV generates €5.9 for every €1 invested. The result was up from the previous study where ROI was €5.6.
US TV Ad Revenues to Climb in 2024 but Fall in Next Five Years
US TV and radio stations will reach $36.19 billion in total ad revenues in 2024, according to the S&P Global Market Intelligence Radio & TV Annual Outlook report, up 9.3 percent YoY. The total includes $24.95 billion from TV stations, but TV advertising is forecast to enter negative growth over the next five years. The report notes that the local ad market will fare better than the national broadcast market, as stations continue to benefit from close ties to local brands, while larger brands and agencies shift budgets to digital and streaming platforms.
The Week for Publishers
Jon Steinberg Resigns as Future Plc CEO
Specialist publisher Future Plc last Friday announced that its CEO Jon Steinberg, who joined in April last year, is leaving the company next year in order to relocate back to the US with his family. The company is now searching for a successor – an exact date wasn’t given for when Steinberg will depart, though Future said in a filing announcing the news that his notice period is twelve months. “Whilst we are disappointed that he will be departing next year, we respect Jon’s decision to return to the US,” said Future’s chair Richard Huntingford. “The Growth Acceleration Strategy he has implemented is well underway and, as highlighted by the pre-close update announced in September, continues to drive good strategic and financial progress. We will continue to work closely with Jon over the course of his notice period as we look to appoint his successor.”
DPG Media Stops Selling Ads Via Open Marketplaces
Belgian media group DPG is winding down open marketplace sales of its ad inventory, and from November 1st will only sell ads on its websites and apps via direct deals (including direct sales facilitated by third-party ad tech companies) and its own Ad Manager advertising platform, Dutch trade publication Adformatie reported this week. DPG Media’s chief digital officer Stefan Havik said the company wants to become less reliant on big tech platforms, adding that focusing on its own products creates a better user experience for readers, since ads more naturally fit the apps and websites they appear in.
Daily Mail Tops 20 Million TikTok Followers
UK newspaper the Daily Mail is continuing to find success in its push to grow its audience on social video platforms, announcing this week that it now has more than 20 million TikTok followers across its various accounts. The newspaper says the Mail’s primary page, which has over 14 million views, is now the largest TikTok news account in the UK, having surpassed news influencer Dylan Page.
Editor-in-Chief of Shuttered Gaming Publication Blames Google Algorithm Update
The ex-editor-in-chief of a UK-based esports and gaming publication has blamed Google’s ‘Helpful Content Update’ to its search algorithm for the publication’s recent closure. Lloyd Coombes, who headed up editorial at GGRecon, said via a Medium post that the update – designed to prioritise content geared toward readers rather than optimised for SEO – decimated the site’s traffic. Even after updating over 10,000 old articles, GGRecon wasn’t able to improve its search ranking, according to Coombes. Gamurs, another gaming-focussed website, also recently blamed the update on its decision to lay off thirty of its staff.
Half of World’s Top English Language News Publishers Grew Traffic in September
Half of the world’s top 50 English language news publishers increased their traffic year-on-year in September, according to Press Gazette’s analysis of Similarweb data, with around a third seeing double-digit percentage growth. Newsweek achieved the fastest growth, with traffic up 108.3 percent year-on-year, while The Mirror saw the steepest drop, down 34.9 percent.
The Week for Brands & Agencies
WPP Posts 0.5 Percent Organic Growth in Q3
British agency holding group WPP posted 0.5 percent growth in like-for-like revenues less passthrough costs in Q3, returning to organic growth for the first time since the end of 2023. WPP’s media arm GroupM saw 4.8 percent year-on-year organic growth in the quarter, though this was offset by a 3.1 percent decline in WPP’s integrated creative agencies. Revenues for North America were up by 1.7 percent on an organic basis, while Western Continental Europe was up 2.2 percent, but UK revenues were flat.
IPG Plans to Ramp Up Principal Media Following Flat Q3
US agency group Interpublic Group reported that organic revenues were flat year-on-year in Q3, bringing total organic growth for the first nine months of the year to one percent. Speaking on an earnings call following the results, CEO Philippe Krakowsky said the company is looking to scale up its principal media buying activity, which he said helps win pitches while giving IPG further services to offer existing clients. Krakowsky said it’s becoming an increasingly core part of IPG’s media offering, and the group is looking to roll it out in between six to eight international markets in 2025.
Havas Net Revenues Fall in Q3
Vivendi-owned agency group Havas saw net revenues fall by 0.6 percent year-on-year in Q3, Vivendi’s earnings update revealed this week. The result meant net revenues were down 0.8 percent on an organic basis for the first nine months of the year, which Havas attributed to the loss of a major client in the US. However the French agency group said it saw strong organic growth in Europe and Latin America, and said that Havas Media performed well across the quarter.
L’Oréal Plans Increases Ad Investment
Beauty brand L’Oréal plans to continue growing its ad investment on a dollar basis, as it looks to spur growth in the market, though CEO and Director Nicolas Hieronimus says marketing investment will likely decrease as a percentage of net sales. Hieronimus added that the company’s AI-powered BETiq tool, which optimises advertising and promotion spend and now covers 40 percent of marketing investment, is helping the brand be more efficient with its spending. But while he wants to “control” the level of marketing spend as a proportion of net sales, Hieronimus said there’s “no doubt” total marketing spend will continue to grow.
Dentsu Finds Big Disparity Between Games Industry’s Size and Level of Ad Investment
Japanese agency group Dentsu this week released its latest ‘State of Gaming’ report, which found that while the gaming industry is much larger that both the global box office and music industries combined ($184 billion vs $62.5 billion), ad investment in gaming is still very low. Just five percent of ad spend in the US is invested in gaming. “There are too many opportunities for brands to ignore in gaming today,” said Dentsu’s EVP global gaming lead Brent Koning. “Integrated gaming marketing plans have touchpoints in playing, watching, and creating in and around games. Brands can be active participants and build credibility with these communities by supporting the games that players subscribe to.”
Bountiful Cow Launches Tool to Buy ‘Brand Unsafe’ Inventory
Independent media agency Bountiful Cow this week announced the launch of ‘Relative Advantage: Unblocked’, a tool developed with publisher alliance Ozone to enable clients to buy ‘brand unsafe’ inventory on quality news publishers, which would be blocked by brand safety filters. “Brand safety technology was developed as a means of protecting advertisers from the worst of the internet, but nowadays it unfairly penalises the best of the internet,” said Adam Foley, CEO of Bountiful Cow. “It means avoiding mainstream news, politics, sex, even football articles that contain the word ‘attack’, but that’s all the good stuff. That’s what millions of people want to read every day.” A part of the initiative, Bountiful Cow is conducting a study with Hilltop Honey to measure the impact of running campaigns across brand safety verified inventory versus inventory without any brand safety filtering.
Razorfish Opens Up Gen AI Tools Across Clients
Publicis-owned agency Razorfish has opened up its ‘Beta Lab’ suite of generative AI tools to all of its brand clients, Adweek reported this week, as it seeks to show clients practical examples of how generative AI can be used for marketing. Beta Lab’s offering includes its Conversational Intelligence Platform, which helps brands build AI-powered chat bots, and a Virtual AI Content Studio, which uses AI to help generate visual assets at scale.
Hires of the Week
James Gorman Becomes Chair of Disney Board
James Gorman has been chosen as the new chairman of the board for The Walt Disney Company, succeeding Mark Parker, it was announced this week. Gorman will step down from his current role as executive chairman of Morgan Stanley. Gorman is already chair of the Disney board’s Succession Planning Committee, and a big focus over the next year will be choosing a successor to Disney’s current CEO Bob Iger.
Havas Media Picks Emma Withington to Lead UK Strategy and Planning
Havas Media Network UK has hired Emma Withington as its new chief planning and strategy officer, Campaign reported this week. Withington joins from MG OMD UK, where she has worked since 2009, holding the chief planning officer role for over two years.
This Week on VideoWeek
Will Google be Forced to Divest Android and Chrome?
Premium Video Supply is at “Tipping Point”
Why Semantics Are Key in Brand Safety
TV Remains “Cornerstone of Plans” – but Definition of TV is Changing
Viaplay Slashes Losses as Turnaround Continues
“We’re Leaving Effectiveness on the Table” in Addressable TV
IAB Tech Lab Pushes to Standardise New CTV Ad Formats with ‘Ad Format Idol’
WPP’s Mark Read Expects GenAI to Deliver Agency Revenues in 2025
Why Unified Measurement Must Come from Collaboration
Tubi Eats into Freevee and Pluto TV Viewership in UK, Finds Kantar
Now is the Time for European Broadcasters to Adopt Programmatic
FAST Hasn’t Reached Full Maturity Yet in Europe
Irish Data Regulator Fines LinkedIn €310 Million Over Ad Targeting
Ad of the Week
Totino’s Pizza Rolls, Chazmo Goes Home
Follow VideoWeek on Twitter and LinkedIn.
{Categories} _Category: Applications{/Categories}
{URL}https://videoweek.com/2024/10/25/the-wir-spotify-tests-an-ad-exchange-itv-turns-to-ai-for-show-development-and-perplexity-seeks-publisher-deals/{/URL}
{Author}Tim Cross-Kovoor{/Author}
{Image}http://img.youtube.com/vi/Zp04IqCZ_n4/0.jpg{/Image}
{Keywords}Ad of the Week,Ad Tech,Agency,Analysis,Articles,Connected TV,Data,Europe,Measurement,Media,News,Programmatic,Publishing,Social Media,Social Video,Tech,TV,US,Week in Review{/Keywords}
{Source}Applications{/Source}
{Thumb}{/Thumb}