Here are the items from the perpetually evolving advertising world that caught our eye this week…
Ominichannel marketers, who used online and mobile to push brick and mortar shopping. Overall, however, Black Friday sales were down, some attributing it to “Black Friday fatigue” and others pointing to a preemptive discount strike by certain retailers, like Target cannibalizing the day. Mobile was the big winner on Cyber Monday, accounting for nearly a third of all online purchases. In related news, once Amazon gets this drone technology launched, the sky is the limit for mobile ordering. Pardon the horrible pun.
The premium online display ad network was acquired by an Israeli performance tech company, Perion. Undertone is known for high-impact online display inventory, including rich media and above-the-fold units, with premium publishers, like MensFitness.com and Shape.com. Undertone was one of the go-to networks for advertisers, willing to pay a higher CPM for the premium units, especially well suited for branding goals. Its “ad network” model provides arbitrage between publishers and buyers, an outmoded idea in the era of programmatic. If you think about programmatic media buying as analogous to electronic trading in the stock market, it begs the question: Who buys stocks through a broker anymore?
YouTube, primarily known for short, user-generated content, is working to get on the big-kids’ playground. YouTube recently launched a $10 monthly “Red” service, which would compete with Netflix, Amazon and Hulu. By 2020, annual revenue from online TV will double from $19 to $42 billion. What does this all mean? Cable providers, like Xfinity, are facing unbundling competition, online advertisers are combating ad blocking, terrestrial radio must compete fiercely with the efficiencies of streaming, the television upfront model is an endangered species and even billboard companies are getting locked out of new development in many markets. The advertising industry is a challenge like never before.