Verizon trying to bring back the good ol’ carrier deck model!
The wireless carrier has offered to install big brands’ apps on its subscribers’ home screens, potentially delivering millions of downloads, according to agency executives who have considered making such deals for their clients. But that reach would come at a cost: Verizon was seeking between $1 and $2 for each device affected, executives said.
Source: Verizon Offered to Install Marketers’ Apps on Phones | Digital – AdAge
“If we just have a fundamental disconnect on how ad sales works, that’s a pretty big deal,” said Ron Lamprecht, executive vice president of business development and digital distribution at NBCUniversal.A Facebook spokeswoman pointed to recent comments at an industry event from the company’s director of product, Fidji Simo, who said that over the next few months Facebook would experiment with “a lot of different models” and that “it’s probably going to take a bit of time.”
Source: TV Companies Resist Facebook Video Deals – WSJ
Contrast to the pro-advertiser treatment here:
“This may draw more ad dollars into Facebook since Facebook can now promise advertisers that their ads will be seen by a highly targeted audience,” says Teddy Lynn, CCO at Ogilvy & Mather.
This also might repair Facebook’s tarnished reputation with media agencies and advertisers after the social network recently altered its News Feed and Instagram algorithms to prioritize user posts, which can reduce organic reach.
Facebook’s ad-block strategy might alienate consumers, but platforms will replicate their plan anyway
We won’t know for a while whether the shift toward subscriptions will save the media industry or doom it. Advertising makes it possible to have free news and entertainment, and that makes for a bigger number of users. It was a great deal for a while: Media company makes fun or informative stuff. The stuff attracts people. Advertisers pay to pitch products to the people drawn by media content. It was a good deal on all sides. Until it wasn’t, and everyone shifted to the subscription plan B route.
Source: Google and Facebook Killed Free Media – Bloomberg Gadfly
Data powerhouse sells a big piece of itself:
Merkle announced Monday that it’s sold a majority stake in its business to global media group Dentsu Aegis Network. The deal values Merkle’s business at $1.5 billion, according to sources with knowledge of the transaction. Merkle joins Dentsu Aegis’ nine existing global brands and will remain semi-autonomous after the deal, with longtime CEO David Williams remaining in charge.
Merkle employs more than 3,600 people in 21 offices worldwide serving 650 major clients such as Pandora and News Corp. The company provides data analytics and performance marketing for companies who want to advertise on platforms such as Google, for which it is one of the largest agency partners, and Facebook, for which it was one of the first to offer custom audience data. Profitable since just a couple years after Williams took over the company in a leveraged buyout for just $5 million in 1988, Merkle took in revenue of $436 million in 2015 on 14% growth.
Source: Merkle, Marketing Partner To Google And Facebook, Sells Majority Stake Valuing It At $1.5 Billion – Forbes
Yesterday was a big day for advertising technology, with earnings reports from three of the top names, Rubicon Project (RUBI), Criteo (CRTO), and Rocket Fuel (FUEL).And the stocks are taking quite different directions following those reports:Rubicon is down $4.39, or 32%, at $9.28; Criteo is down $2.77, or 6%, at $40.39; and Rocket Fuel is up 11 cents, or 5%, at $2.34.
Source: Rubicon Plunges 33%, Criteo Drops 6% as ‘Header Bidding’ Dogs Online Ad Market – Tech Trader Daily – Barrons.com
Against fundraising headwinds:
“It is the most difficult time I’ve ever had fundraising. In this environment there’s a lot of people who don’t believe any more, or have made bets that have lost in the past 5 years,” Mr. Mendez said.
Source: Yieldbot Raises $35 Million to Grow Online Ad Business – WSJ
Battery status indicators are being used to track devices, say researchers from Princeton University – meaning warnings of privacy exposure have come to pass
Source: Your battery status is being used to track you online | Technology | The Guardian
But without much notice on Wall Street or beyond, Microsoft has turned into a quiet giant in digital advertising.Bing is on track to generate roughly $5.3 billion in revenue for Microsoft’s fiscal year ended June 30, based on the pace of sales during the previous nine months.
Source: Microsoft’s Bing Isn’t a Joke Anymore – Bloomberg Gadfly
Microsoft recently acquired Linkedin for $26.2 billion, which works out to $60 per user. We break down how that figure compares to similar deals and companies.
Source: How much are you worth as a user? | PitchBook News
Running a subway ad campaign is admittedly pricier than buying up some online display ads—for a half “brand train,” or ads along one interior side of 570 subway cars, companies can expect to pay around $240,000, while the cost of a full “station domination” ranges from $100,000 to $350,000 depending on the location—but for companies looking for a relatively clutter-free environment and captive audience, the investment can be worth it.
Source: Savvy Subway Ads From Service Startups Are Captivating Millennials on the Move | Adweek