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Media Buyer + Planner: Facebook’s $9B Quarter; Taking on Amazon

 
 
 

Media Buyer & Planner Today

 

July 27, 2017

 
 

Media Buyer & Planner Today
 
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#1 Facebook 2Q Ad Sales Top $9B
The social media giant just keeps churning along, with second quarter ad sales reaching $9.16 billion, a 47% increase over the same quarter last year. And most of those ad sales are now in mobile, where 87% of the total ad revenue in second quarter came from. That's up 84% from second quarter 2016. At the same time, daily active Facebook users totaled 1.32 billion in June for a 17% increase over the same month a year ago, while monthly active users also increased 17% to 2.01 billion. Facebook saw a sizable gain in video advertising, but some speculated that some of that new found advertising was a result of an ad boycott against YouTube.
WHY THIS MATTERS: The popularity of advertising on Facebook is good for the platform but not so good for ad buyers. While the Facebook ads reach massive audiences, the heavy demand can also tend to result in higher pricing. On the downside for Facebook, it is reaching a space ceiling for ads in its news feed and needs to find other places for advertisers to go. That's why it's looking to sell more ads on its Messenger platform.
Three Takes: Ad Age | Adweek | WSJ
 
#2 Criteo Launching Data Coop To Take on Amazon With Retailers
The ad tech retargeting company that works with retailers to serve personalized ads to consumers who have previously visited their websites, is putting together a cooperative of retailers, publishers and brands to pool their data together to more effectively compete with online ecommerce giant Amazon, The Wall Street Journal reports. Criteo has a customer base of 11,000 retailers and has information on $550 billion in annual commerce sales. It is hoping to get its customers to band together to share their data to help them all better target people and get them to buy from them and not from Amazon. Criteo is proposing to put algorithms to work to match up all the differently stored data from the respective retailers so all the data can be used most effectively in total. The new cooperative is being called The Criteo Commerce Marketing Ecosystem.
WHY THIS MATTERS: Some 55% of U.S. online shoppers start their product searches on Amazon, according to BloomReach, and the company recently made inroads into the brick-and-mortar commerce business with its acquisition of food retailer Whole Foods. Jonathan Opdyke, Criteo's president for brand solutions, says, "The need for diversity is important," and that brands and retailers need a way to compete with a growing monopoly ecommerce giant like Amazon. He's hoping the new venture will help them do that.
A Take: WSJ
 
#3 Discovery-Scripps Combination Could Be Boon for Buyers
A takeover of Scripps Networks Interactive by Discovery Communications would create a media giant far better positioned to offer advertisers a compelling audience mix, more high quality programming, and advanced ad-targeting products all under one roof, The Wall Street Journal reports. In particular, a Discovery-Scripps networks tie-up would create a must-buy package for advertisers interested in targeting women. And the one-stop shopping would facilitate ad buying and also result in better deals than buying the two companies' networks separately. "There are simply too many ad-supported entities on television," says Ben Winkler, chief investment officer at OMD. If the merger happens, "the playing field will be narrower but more lush." Women are frequent viewers of Scripps' unscripted shows like HGTV's Property Brothers and Fixer Upper and Food Network's Chopped. Discovery's TLC is the most-watched by women on cable and its Discovery ID network is also high on the list. Overall, among the Top 20 cable networks, four of the five most female-skewing channels are owned by Discovery and Scripps, according to Nielsen data.
WHY THIS MATTERS: Ad buyers are more and more looking for media companies to offer comprehensive data and analytics to help their media buys and Scripps is not viewed by them as an industry leader in that area. A takeover by Discovery could provide Scripps with the financial resources to invest more in advanced ad products.
A Take: WSJ

 
 

 

 

 
 

 
 
#4 P&G Sales Grow Despite $140M Digital Ad Cutback (Ad Age)

#5 Fox Stations Launch Programmatic Sales (B&C)

#6 HomeGoods Shifts Creative to McCann (Adweek)

#7 Penney CMO Faces Turnaround Challenge (Ad Age)

#8 Allstate Connecting with Hispanic Soccer Fans (MediaPost)

#9 Conde Nast Sells Merchandise on Instagram, Facebook (Digiday)

#10 Mercedes-Benz Tops in Social Engagement (MediaPost)

 
 

Stat Of The Day
 
 

93.7
Percentage of U.S. females who will completely watch 30 second online video ads in exchange for some type of reward, according to data from ad agency Jun Group. The percentage among men is 92.1%.
– Reported by eMarketer

 
 

 

 

 
 

 

Ratings
 
 

'Big Brother,' CBS Top Wednesday
by Luke McCord

Led by reality stalwart Big Brother, CBS won the primetime ratings race Wednesday with a 0.9 rating/4 share among adults 18-49, according to Nielsen overnight numbers. Big Brother slipped two tenths to a 1.7, while Salvation fell a tenth to a 0.6.

Fox followed with a 0.8/3. MasterChef and The F Word With Gordon Ramsay were each down a tenth at 1.0 and 0.6, respectively.

Spanish-language broadcaster Telemundo did a 0.7/3, while Univision pulled in a 0.5/2.

NBC and ABC (which aired repeats) tied with a 0.6/3. NBC's Little Big Shots: Forever Young was even at 0.8, and The Carmichael Show was steady at 0.7

The CW scored a 0.2/1 with repeats of Arrow and Supernatural.


 
 

Fates & Fortunes
 
 

• STEVE MANDALA was promoted to president of advertising sales and marketing at Univision Communications, succeeding Keith Turner, who plans to retire at the end of this year. Mandala was elevated from executive VP of advertising sales. Prior to that he was VP of sales for Univision's west coast operation. He has been with Univision since 2012. Before that, he served as executive VP of cable entertainment ad sales at NBCUniversal and also held sales roles at Telemundo.

• ANDRE MOREIRA was named executive creative director at WPP agency The&Partnership, where he will work on the European Toyota account. He was previously global creative director at Havas Worldwide London.

• MARIE MURPHY was appointed creative director of PIA Agency's new Portland, Oregon, office. She was most recently a freelance creative director, but prior to that, was a lead creative director at Razorfish Portland

• PAUL STECHSCHULTE has joined San Francisco-based agency Muh-tay-zik Hof-fer as executive creative director. Also joining the agency are KATIE RAMP in he newly created role of director of talent and TANYA LeSIEUR as head of production. Stechschulte was previously creative director at Airbnb and prior to that worked at assorted agencies, including Wieden+Kennedy and Goodby, Silverstein & Partners. Ramp was previously director of talent at Heat San Francisco, while LeSieur was chief production officer at TBWA/Chiat/Day.


 
 

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