With the presidential election and the Tokyo Summer Olympics, television networks expected robust advertising in 2020. But MoffettNathanson noted that, with the Olympics postponed and presidential campaigns muted due to the coronavirus pandemic, advertising revenue is expected to drop 12 percent; the WARC research group predicted that will pencil out to a $25.5 billion loss in spending. Although viewership has exploded during the shutdown, research firm Kantar said that companies have cut advertising budgets more than 40 percent. Continue reading TV Ad Budgets Dwindle, Productions Shut Down in Pandemic

To help creators make more money, Instagram debuted advertising on IGTV videos, digital badges that fans can buy via Instagram Live, and merchandise sales through Instagram Shopping. It also expanded its Brand Collabs Manager, which enables sponsored campaigns between companies and creators. Last week, Instagram expanded shopping features on Instagram Live as well. In China, meanwhile, e-commerce giant Alibaba Group plans to sign up 100,000+ creators this year to its AliExpress marketplace for shoppers outside of China. Continue reading Instagram, Alibaba Lure Creators with Revenue Opportunities

AT&T launched HBO Max this week, with a plan to spend $4.5+ billion on the streaming platform over the next few years. AT&T, which hopes to sign up 50 million HBO Max subscribers by 2025, bought Time Warner for $85.4 billion in 2018 with the idea of creating a significant streaming platform. HBO Max, which costs $15 per month, offers 10,000 hours of programming, including HBO series “Game of Thrones” and “Succession” as well as Warner Bros. hit TV shows such as “Friends” and “The Big Bang Theory.” Continue reading Streamer HBO Max Offers Wide Range of Movies, TV Shows

Facebook chief executive Mark Zuckerberg announced updates to Shops, a new version of an existing Facebook feature that lets retailers upload product catalogs to their Facebook page or Instagram profile. Users can access Shops on the retailer’s page or, by clicking on an ad, will land on the retailer’s Facebook-located Shop. Zuckerberg stated that Shops will eventually be available on Messenger and WhatsApp as well. The company relies on several AI systems, including GrokNet, which can “segment, detect and classify images.” Continue reading E-Commerce: Facebook Reveals AI-Powered Shops Feature

Facebook has acquired the GIF platform Giphy for $400 million. Giphy’s 100+ million active daily users send over 1 billion GIFs a day. Facebook stated that Giphy’s content database will be integrated into its apps including Instagram, although it didn’t state a timeframe. Since every social app offers at least some GIF integration, including many that rely on a GIF keyboard and Giphy’s database, Facebook’s purchase is both a competitive edge and another way to harvest the kind of data that attracts advertisers. Continue reading Facebook’s Purchase of Giphy to Provide Valuable User Data

Facebook is a founding member of American Edge, an emerging political advocacy group. Because it is registered as a non-profit, American Edge can raise money and publish ads without disclosing its donors. “We’re working with a diverse group of stakeholders to help build support for our industry, and while we’re leading an effort to start this coalition, it’s one of many we are contributing to and supporting,” said spokesperson Andy Stone. The group, however, has not yet officially launched. Continue reading Facebook Leads Creation of Tech Industry Advocacy Group

Spring is when the television industry holds glitzy upfronts to showcase their fall TV lineup to advertisers in impressive locations like Carnegie Hall and the Beacon Theatre. NBCUniversal, for example, typically holds its upfront at Radio City Music Hall. This year, however, the coronavirus pandemic is impacting the traditional approach to upfronts. NBCUniversal chair of advertising & partnerships Linda Yaccarino held court over a livestreamed presentation from her home, joined by two celebrities making remote appearances. Advertisers accessed the upfront by clicking on a private link. Continue reading Pandemic Disrupts Traditional TV Upfronts and Ad Spending

According to Newzoo, in 2020 the globe’s 2.7 billion gamers will spend $159.3 billion on mobile, PC and console games, representing 9.3 percent growth from 2019. The game market is on track to exceed $200.8 billion in revenue by 2023, with growth of 8.3 percent per year. The COVID-19 shutdown and the release of new consoles by the end of the year are the biggest contributing factors to growth. Some game developers also note that, during the pandemic, older players of casual games are reactivating accounts. Continue reading Mobile, PC and Console Gaming Skyrocket During Pandemic

Roku benefited from the rise in streaming due to the COVID-19 pandemic, adding 2.9 million accounts in Q1 2020, up 37 percent year over year. The company now has 39.8 million active accounts, with 13.2 billion streaming hours in the quarter, representing a 37 percent year-over-year increase. This, however, was a smaller increase than its 68 percent jump in Q4 2019 and a decline from 16.3 billion hours in the same quarter. Roku also warned that advertising revenue will also likely drop in 2020. Continue reading Roku Users and Streaming Hours Skyrocket During Pandemic

Google introduced Web Vitals, an initiative providing performance and user-experience metrics aimed at web developers and website owners. Google has described it as “essential to delivering a great user experience on the web.” Web Vitals is just one of the tools that Google has offered over the years to help developers, advertisers and business owners improve the user experience of their websites. All those tools, however, have become an information overload that confuses its target demographic. Continue reading Google Unveils Web Vitals, its Metric Tool for Web Developers

In Q1 2020, YouTube reported $4.04 billion in ad revenue, up 33 percent from 2019. Last year, YouTube earned $15.15 billion in ad revenue, up 36 percent. Its parent company Alphabet — which first broke out numbers for YouTube in Q4 2019 — generated $41.16 billion in revenue, a 13 percent year-over-year growth, with an adjusted net income of $6.84 billion or $9.87 per share. Those figures exceeded analyst expectations for revenue of $40.38 billion, but missed its EPS of $10.33; shares rose 8+ percent in after-hours trading. Continue reading Alphabet and YouTube Ad Revenue Is Impacted by Pandemic

In Q1 2020, Twitter reported 24 percent year-on-year (YoY) increase in daily active users to 166 million, which it said is at least in part to the coronavirus pandemic. Although Q1 earnings beat estimates, the company’s advertising business slowed, which Twitter also attributes to the pandemic. Stock was up 12 percent during premarket trading on news of the report, but then fell 7.8 percent during the earnings call because executives didn’t reassure investors that the advertising slump would recover or stabilize. Continue reading Twitter Sees More Daily Active Users But Advertising Declines

With the coronavirus pandemic spurring online buying, Amazon saw its revenue for the quarter ending March rise 26 percent from a year earlier to $75.5 billion — the highest ever reached for what is ordinarily Amazon’s slowest quarter. According to FactSet, profit fell 29 percent from a year earlier to $2.5 billion, disappointing analysts’ average estimate of $3.26 billion. Amazon hired 175,000 new warehouse and delivery employees, and chief executive Jeff Bezos told investors this is “the hardest time” the company has faced. Continue reading Amazon: Rising Revenue and Technical Operation Challenges

With the coronavirus pandemic, advertising plummeted on many online sites, including social media giant Facebook. The company’s chief financial officer David Wehner declared that factor “largely attributable” to the 16 percent decline in average price of ads purchased in March. But gaming and e-Commerce companies picked up the slack by spending more, taking advantage of less competition in the company’s ad auctions. As a result, Facebook chief executive Mark Zuckerberg told analysts the company would “remain in growth mode.” Continue reading Facebook Ad Sales Pick Up, Resulting in Strong Q1 Revenue

Microsoft expected the original $10.75-$11.15 billion Q1 forecast for its personal-computing business to be negatively impacted by COVID-19 disruptions, yet the company reported that its PC group generated $11 billion in sales as consumers continue to stay at home. The PC group benefited from an increased demand for remote work and education solutions, as well as a 2 percent rise in Xbox sales, a solid increase from a drop in the previous quarter. Microsoft’s PC business includes licensing revenue from PC sales, its Xbox video-game platform and popular Surface laptops. Continue reading Microsoft: Remote Work Needs Outpace Supply Chain Issues