Retail media ad revenue hit $43.7 billion in 2023, surging 16.3%
Despite concerns about privacy laws, attribution loss and economic instability, advertisers keep investing heavily in online ads — with retail media standing out as a fast-growing medium. Advertisers spent a record $225 billion on digital advertising in the U.S. last year, a 7.3% increase year over year, according to the Internet Advertising Revenue Report published last week by the Interactive Advertising Bureau (IAB) and PwC. In addition to retail media, other top channels include connected TV (CTV) and audio, which both saw double-digit ad spend growth in 2023. Retail media was a key driver of growth, with revenue up 16.3% year over year, reaching $43.7 billion in 2023, according to the report. The IAB report notes that “key e-commerce players are all expanding their retail media platforms to enable future growth.” Read more from The Current.
Roku inks NewFront deals with Trade Desk, iSpot, NBCU
Roku made multiple announcements during its NewFronts presentation regarding its deals with The Trade Desk, iSpot, and NBCUniversal. The big streaming app distributor has inked a deal with The Trade Desk, a demand-side advertising platform (DSP). Trade Desk advertisers now have direct access to Roku via a private marketplace where brands can benefit from Roku audience and behavior data. Roku platforms reach more than 81 million U.S. streaming households. Read more from TelevisionNewsDaily.
Data Drop: Time spent with social video 2024
This year, for the first time, social video will account for over 10% of all US time spent with digital media. That’s a major milestone and reflects the changing nature of where and how people consume video content. Spoiler alert: It’s not just while scrolling clips on TikTok. Meta’s Reels has made major gains, and that’s having a ripple effect across the entire TV and video landscape. Between 2019 and 2022, Meta’s share of total time spent with social video in the US fell from 51.8% to its nadir of 37.4%, as TikTok steadily chipped away at time spent on Facebook and Instagram. But 2023 was a turning point for Meta, and we expect it to account for 40.8% of US adults’ social video time this year. The turnaround is largely thanks to Meta’s investments in AI-driven content recommendations, which surface more relevant content to users, and the insertion of video into nearly every aspect of its apps, particularly Instagram. Read more from Insider Intelligence.
Earnings from social and search players signal that AI will be a long-play investment
In the latest earnings reports from tech giants like Google, Microsoft, and Snap, a resounding message is emerging: Generative AI is the future, but it will require patience. Despite exceeding expectations, CEOs are cautioning that scaling generative AI across social and search platforms will take time. Microsoft’s impressive growth in search advertising revenue, propelled by its incorporation of generative AI, hints at the potential of AI-driven marketing strategies. Meta CEO Mark Zuckerberg similarly emphasizes a long-term investment cycle for scaling Meta AI, foreseeing substantial returns. Google, too, is leveraging generative AI to enhance user experiences and drive advertising conversions. Amidst this AI revolution, agencies and brands are exploring ways to harness the power of AI, recognizing its transformative potential in marketing and advertising strategies. Read more from Digiday.
NBC plans $2.5B offer in bid to nab NBA rights from TNT
NBCUniversal is planning to pay an average of about $2.5 billion a year for the rights to the NBA as fees for the league’s coveted broadcasts are set to double from current levels, according to a report Monday. If accepted, the broadcast rights to the basketball games could change hands from TNT, which has paid an average fee of $1.2 billion under its current deal, to the Peacock network, The Wall Street Journal reported. For Warner Bros Discovery, the loss of the NBA would be a huge blow to its TNT cable network, as well as its planned sports-streaming venture that it is launching alongside Disney and Fox. Read more from Yahoo Finance.
