Short-form video ad boom may not be great for TikTok (eventually)

The growth of short-form video advertising may not be a great thing for TikTok.

This doesn’t necessarily mean it will be a bad thing either. Money continues to pour into the short-form video app at a clip, despite the ongoing controversies over it. But those dollars may not flow as fast as they once did, now there’s more competition — competition from the likes of Instagram Reels, YouTube Shorts and even Snapchat’s Spotlight.

While more ad dollars are being spent on the short-form format, it’s now being allocated across more platforms than ever before. And this could become troublesome for TikTok in the long run even if it initially got marketers addicted to short-form video content.

“TikTok led the global short video field over the last few years — 2023 is the first time that run may be challenged,” said Jamie MacEwan, senior research analyst at Enders Analysis. “TikTok’s user base crossed a billion while ad revenue reached around $9 billion in 2022, up tenfold on 2020. We expect its ad growth to slow a bit to around 40% this year.”

If this happens, it could be a chance for a company like Meta to carve out a bigger share of those ad dollars earmarked for short-form video.

Reels is closing the gap

Momentum for advertising on Reels is building. Expect Meta will do what it can to sustain it. Marketers have told Digiday over the last few months that Reels is already in a strong second place to TikTok, and the gap between the two is narrowing.

Reels has already made inroads into those budgets over the last year or so. Its annual ad revenue run rate tripled from $1 billion in Q2 2022 to $3 billion at the end of the year, a rate likely to continue now

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Google might eventually have a deserving challenger in on line advertisements

Telecom conglomerate receives a nod from the European Commission

When we are chatting about advertising and marketing, it really is difficult to disagree Google is a dominant force. A the greater part of its revenue comes from serving advertisements which you’ve no doubt occur across all around the World-wide-web. But even as antitrust sentiment all over the enterprise swells, it would continue to consider a behemoth work from company as nicely as regulators to counter this sort of dominance. Effectively, it appears to be like like Europe’s most significant telecom companies are willing to give it a test.

ANDROIDPOLICE Video clip OF THE Working day

Germany’s Deutsche Telekom (T-Mobile), Spain’s Telefónica (Movistar, O2), United Kingdom’s Vodafone, and France’s Orange have announced that they are coming collectively to launch a joint promoting enterprise (by way of Reuters). Every of the 4 teams will have an equivalent share in the new holding company which will be managed independently — a supervisory board has been established with its customers decided on by the shareholders.

In accordance to a joint assertion from the venture’s individuals, the conglomerate aims to launch an promotion platform for European consumers which is designed from the floor up to be compliant with the European Union’s stringent on-line privacy procedures these kinds of as the ePrivacy Directive and the GDPR.

Vodafone created out the ad system that the joint venture will be applying. The system has been in testing as a result of Deutsche Telekom as nicely as Vodafone in Germany over the past 12 months and is established to be analyzed in Orange and Telefonica’s residence marketplaces of France and Spain.

Important features of the technology allows buyers just take handle of how they see ads, demanding consumers to choose into obtaining communications from models as a result

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