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Amazon is also staffing up for Prime Video sales teams, recently hiring ad veteran and former NBCUniversal sales exec Krishnan Bhatia as VP of global video advertising for Amazon Ads. Advertisers' initial reaction to Prime Video ads was mixedAdvertisers reacted with a mix of excitement and skepticism when Prime Video entered the TV ad market last year. Amazon estimated Prime Video ads would reach 115 million monthly viewers in the US. AdvertisementBut the skepticism was short-lived as Amazon set Prime Video up for success in several ways. Amazon will also have to start regularly sharing data showing advertisers how many people are actually watching Prime Video and for how long.
Persons: , Krishnan Bhatia, Amazon, It's Organizations: Service, Business, YouTube, Hulu, Amazon, Comcast, Disney, Etihad, Best, Samsung's, Prime, Amazon Ads, Netflix, Street Journal
"Advertising on Reddit is rapidly evolving, and we are still in the early phases of growing this business," Reddit wrote in its IPO filing. The company said advertisers were attracted to Reddit due to its "high-intent" audience, much of which is hunting for product recommendations. And elsewhere, Reddit doesn't have the kind of e-commerce structure that Meta, TikTok, and Google have built, experts said. It has poached ad talent from companies like Pinterest and Meta to grow its ad business. Also last year, Jim Squires, a former longtime Meta ad exec, joined Reddit in a new role as EVP of business marketing and growth.
Persons: it's, Reddit, Reddit hasn't, Brad Kay, Reddit didn't, haven't, TikTok, Jerry Daykin, Daykin, Carly Carson, Reddit doesn't, Anthony Macro, Harold Klaje, Klaje, Jim Squires, Jeff MacDonald, That's, MacDonald, PMG's Carson Organizations: Google, Business, Brand, Meta, Beam Suntory, PPC, Reddit, YouTube Locations: Meta
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. AdvertisementBusiness Insider confirmed that the cause of the error was a brief "server anomaly" at PubMatic, an adtech company. A PubMatic spokesperson said the anomaly, at one of its US data centers, caused "abnormally high CPMs being passed to the publisher ad server on a limited number of impressions." The PubMatic error occurred in the communication that happened between the SSP and PubMatic's ad server, according to the company. The actual financial impact for individual publishers and adtech companies is likely to be minimal.
Persons: , Nicolas Schueller, Adomik, Friday's snafu, Kargo, aren't, PubMatic, Scott Messer Organizations: Service, Business, Publishers, CNN, AMC Networks, Fox, The New York Times, Delta Airlines, Comcast Locations: PubMatic, Friday's
The ad buyers said they did not know what caused Meta's glitch. And there's no guarantee ad buyers will ever get the full amount they've lost. Advertisers continue to battle Meta glitchesThe overspending glitch is the latest in many issues advertisers have had with Meta's ad tools breaking. He estimated that he spends five to 10 hours a month per client working on Meta glitches. "If I look at where we spend most of our money across four platforms — which is Google, Microsoft, Amazon, and Meta — Meta would be the one who's the most dysfunctional," he said.
Persons: , Tom Brown, CPMs, Brown, Andrew Faris, Milo McMahon, Faris, I'm, Duane Brown, McMahon, AJF Growth's Faris Organizations: Service, Business, Meta, BRND Labs, Outdoor, Google, Microsoft
The number of ads per hour on streamers including Hulu and Disney+ also has crept up, adding to the supply. (Check out last year's list of streaming TV ad prices here .) Netflix and Disney+ also have slashed their ad prices since launch. CPMs, or cost per mille, is what advertisers pay per thousand views of their ads. A second top ad buyer estimated that streaming ad prices have come down 5% to 10% over the past year as more ad space gets rolled out.
Persons: Max, Read Organizations: Netflix, Disney, Hulu, Business, Amazon, YouTube
UBS says Reels on Instagram is outperforming TikTok. Jeff Bottari/Getty ImagesAccording to a recent note from UBS, channel checks by the bank indicate that "Reels is outperforming TikTok with lower CPMs and much improved engagement." That's great news for Meta, given that TikTok has been viewed as one of the company's top risks in the competition for more eyeballs. "We think the GenAI consumer app bull case is still under-appreciated and not priced into shares. We think more disclosure on GenAI product uptake and eventual monetization could bolster confidence in the durability of top line growth, driving multiple expansion," UBS said.
Persons: Jeff Bottari, TikTok Organizations: UBS, Meta, Instagram, Facebook
Amazon's decision to start running ads within Prime Video in early 2024 could drive up to $7 billion in ad revenue, according to three new Wall Street notes. UBS isn't the only Wall Street firm betting that Amazon's Prime Video ads will drive billions. UBS expects Prime Video ads will likely have a $30-$42 CPM — the cost to reach 1,000 people. Wedbush analysts expect Amazon to charge $50 CPMs for Prime Video ads. Insider previously reported that Amazon estimates that Prime Video ads will initially reach more than 115 million US monthly users.
Persons: Wedbush, Discovery's Max Organizations: UBS, Nielsen, UBS isn't, Disney, Netflix, Warner Bros, Prime Locations: Canada, Germany, France, Spain, Italy, Mexico, Australia
The Trade Desk will start undercutting the fees publisher adtech firms tack on to digital ads. The adtech used by publishers often inaccurately prices their inventory, said a Trade Desk exec. Adtech firm The Trade Desk is about to execute a plan to lower the price advertisers pay for digital ads. The Trade Desk operates software called a "demand-side platform" that advertisers use to buy ads across the internet. While other DSPs occasionally send low-ball bids, publishers might be more willing to look at The Trade Desk's bids due to the large amount of advertisers using its platform.
Persons: SSPs, Will Doherty, Doherty, Chris Kane, Adam Soroca, aren't Organizations: Google, Jounce Media, Trade
Ad prices declined in the second quarter as new formats like Reels and Shorts rolled out. After some rough quarters, Google's and Meta's ad businesses are on the rebound , and they're creating so much short-form video ad inventory that the surge in supply is driving ad prices down. "Anytime you've got an influx of newer ad inventory, typically that inventory does come with lower ad pricing," he said. And Instagram Reels ad inventory is both plentiful and 39% cheaper than Instagram Feed ads, according to Tinuiti. Meta also added more ads to its Marketplace on Facebook, which dropped Facebook ad prices by 25%, Taylor said.
Persons: Shawndu Stackhouse, Tom Williams, Andy Taylor, Pacvue, Taylor, Tinuiti's Taylor, Mike Ryan, Meta, TikTok TikTok Organizations: Inc, Getty, Tinuiti, Brands, Google, Anadolu Agency, Meta, Facebook, CPM Locations: Google's, Northeast Washington, lockstep
Marc Hustvedt, president of the YouTube empire MrBeast, likens Jimmy Donaldson's stardom and impact to that of a professional athlete. "To me, creators, particularly YouTube creators, always stood out," Hustvedt said. "A 100-million-view video is exponentially more valuable than 20 5-million-view videos," Hustvedt said. "Get really, really good at making the content," he said. "It sounds so basic, but in practice, it's really, really hard."
Persons: MrBeast, Alberto E, Rodriguez, Marc Hustvedt, Hustvedt, Jimmy Donaldson's, Donaldson, Philip DeFranco, he's, MrBeast doesn't, Anita Elberse, YouTubers Rhett, Link, Smosh, Smosh cofounders Anthony Padilla, Ian Hecox, it's Organizations: Nickelodeon, Microsoft Theater, YouTube, React Media, Hustvedt, Blockbuster, Big Business, Entertainment, Harvard Business, Twitter Locations: Los Angeles , California, Greenville , North Carolina, VidCon, India, Brazil
Amazon is reportedly plotting an ad tier for Prime Video, per The Wall Street Journal. A new ad-supported tier for Prime Video could bring in nearly $5 billion in yearly revenue for Amazon, according to Morgan Stanley analysts. "We size US Prime subscribers at ~95 million in 2025, and ourAlphaWise surveys suggest ~77% of Prime subscribers use Prime Video, implying 73 million Prime Video viewers in 2025." "We size US Prime subscribers at ~95 million in 2025, and our AlphaWise surveys suggest ~77% of Prime subscribers use Prime Video, implying 73 million Prime Video viewers in 2025." But they estimated that a Prime Video ad tier outside the US could add a further $209 million to 2025 EBIT.
Persons: Morgan Stanley Organizations: Amazon, Prime, Street, Street Journal, Netflix, NFL, Disney, US, YouTube, NBA, CTV Locations: EBIT
Amazon is reportedly plotting an ad tier for Prime Video, per The Wall Street Journal. A new ad-supported tier for Prime Video could bring in nearly $5 billion in yearly revenue for Amazon, according to Morgan Stanley analysts. "We size US Prime subscribers at ~95 million in 2025, and ourAlphaWise surveys suggest ~77% of Prime subscribers use Prime Video, implying 73 million Prime Video viewers in 2025." "We size US Prime subscribers at ~95 million in 2025, and our AlphaWise surveys suggest ~77% of Prime subscribers use Prime Video, implying 73 million Prime Video viewers in 2025." But they estimated that a Prime Video ad tier outside the US could add a further $209 million to 2025 EBIT.
Persons: Morgan Stanley Organizations: Amazon, Prime, Street, Street Journal, Netflix, NFL, Disney, US, YouTube, NBA, CTV Locations: EBIT
Apple usually plays it so low-key at big industry events, you wouldn't even know the company had attended. It has rented a space at the top of the iconic Carlton hotel, situated on the busy Croisette promenade, according to multiple advertising industry sources. It's also planning a week of programming, with panel topics expected to include sports on Apple TV+, Apple News, apps, and the broadening Apple advertising offering, those sources said. All of which were "not necessarily a strong-point with Apple advertising in the past," Auzins said. Today, Apple's ad business largely consists of search ads sold within the App Store, which Insider Intelligence forecasts will generate $8.7 billion this year.
Michael Nagle | Bloomberg | Getty ImagesOver the weekend, Alex Gorlick experienced what he called the worst Facebook glitch he's seen in the decade he's worked in digital advertising. A spokesperson for Facebook parent Meta acknowledged there was an ad glitch but declined to provide details or an explanation as to why it happened. Additionally, the Facebook ad bug impacted companies running ads tied to Earth Day. Hott noted that Facebook experienced a major ad glitch a day before Black Friday in 2020 as well as another similar bug earlier that summer. The main issue for advertisers will be whether they get refunds from Meta because of the glitch, industry experts said.
Identity and email management company Lockr raised $2.5 million in pre-seed funding this week. Check out the pitch deck that convinced investors like Mozilla Ventures to join the funding round. Lockr, a digital identity management startup, said this week it had raised $2.5 million in pre-seed funding, investment it plans to use to grow its team, scale its userbase, and add more features to its consumer product. For publishers and marketers, the company provides Lockr Identity. Investors in Lockr's pre-seed funding round included Mozilla Ventures, Junction Venture Partners, and Grit Capital Partners, as well as individual investors.
YouTube CEO Susan Wojcicki is stepping down after nearly ten years at the helm. Under her leadership, the video platform cemented itself as a favorite of online creators. YouTube Shorts, the company's direct competitor to TikTok, recently surpassed 50 billion daily views and opened up monetization to creators. Still, under Wojcicki's tenure the video platform was rarely mentioned in discussions about the ills of social media, and the CEO was not regularly hauled in front of Congress like other tech leaders. Under Wojcicki's tenure, YouTube expanded monetization and released a slew of new ways to make money, like a merchandise shop.
The platform began sharing advertising revenue from Google-placed ads that show on the Shorts feed — YouTube's short-form video offering — with creators. In 2022, eight YouTube creators shared with Insider their RPMs, which ranged from $1.61 to $29.30. With the debut of the ad-revenue sharing, YouTube is shutting down its Shorts Fund. The final Shorts Fund invites for January activity will go out in mid-February, with final payments in March. Khadair's channel earned a YouTube Shorts Bonus for January of $1,232.75 based on his Shorts' performance.
Meta, Google, and Snap reported declines in ad sales, or flat ad revenue, during the fourth quarter. Out of the four big ad-supported tech companies — Google, Meta, Amazon, and Snap — only Amazon reported that its ad business grew year-over-year in the fourth quarter. Meta's ad prices have declined as the company rebuilds its ad business with artificial intelligence after getting hit by Apple's app-tracking privacy crackdown. While CPMs fell year-over-year during the fourth quarter, ad prices were 7.2% higher in the fourth quarter compared to the third quarter, according to Northbeam. The average return on Meta ad spend during the fourth quarter was $1.96, up from $1.30 in the first quarter of 2022.
Streaming TV ad spend will surge in 2023. The foundation is set for streaming TV advertising to be a huge growth area in 2023. The global media agency Magna Global predicted in its recent forecast that streaming TV ad spend in the US will surge 32.7% next year. Here's what experts — including advertisers, content owners, TV measurement firms, and analysts — think will impact the flow of dollars in streaming TV advertising next year. More advertisers will buy streaming TV ads — and pay higher rates — because of live sports2022 was a boom year for live sports in streaming TV.
Its App Store search ad business is growing at a clip and Apple has begun pitching advertisers Major League Soccer ad packages. Here's what experts think Apple might have in store for its advertising business next year, from TV ads to further privacy interventions. Prediction 2: Ads will be placed on Apple TV+Apple's 10-year, $250 million-a-season deal to broadcast Major League Soccer on Apple TV will air its first game in February 2023. It could become the key entry point for advertisers looking to reach Apple users across its portfolio of apps and services. "Apple is about to find out how difficult it is to serve TV ads," he added, referring to its MLS telecasts.
Netflix founder and co-CEO Reed Hastings said Wednesday he was slow to come around to advertising on the streaming platform because he was too focused on digital competition from Facebook and Google . "So Google and Facebook were going to mop up the world — and they have in non-TV advertising." Advertisers were "desperate" for avenues in connected TV and internet, Hastings said, but Netflix was still on the sidelines. "We didn't have to steal away the advertising revenue. There are also free streaming services, such as Paramount's Pluto and Fox Corp.'s Tubi, which make revenue solely through advertising.
Microsoft Advertising has ambitions to double the size of its ads business to $20 billion. Today, Wilk heads up Microsoft Advertising, a $10 billion business. Microsoft is now looking to double the size of its ads business, Wilk said, though he didn't offer a timeframe of when it might hit that target. If Microsoft Advertising were to grow into a $20 billion business, it would overtake Chinese tech giant Tencent. Gaming could become an important Microsoft Advertising assetGaming will become another key driver of Microsoft's advertising growth.
Four creators with 1 to 2 million subscribers shared how much they made from ads. To start earning money from YouTube, creators must have at least 1,000 subscribers and 4,000 watch hours in the past year on their long-form videos. Starting early 2023, creators who have 1,000 subscribers and 10 million views on short-form videos over the previous 90 days will also become eligible. Insider has spoken with dozens of YouTube creators about how much each of them earned from the platform. Four YouTube creators we spoke with had between 1 million and 2 million subscribers.
The maturation of ad-supported streaming services over the last year have become clearer. Discovery, and Netflix, which are charging high rates for streaming ads against so-called premium content. If these companies hope to attract premium CPMs however, they need to get them now. "The only reason, in my opinion, that they can control premium CPMs today is that they're just starting at this," Martin said. She believes the market will force services charging "premium" CPMs to lower these prices over time.
Ad prices on Meta, Amazon, and Google skyrocketed during the pandemic but are now declining. Digital ad prices are declining due to a number of factors:Advertisers are pulling back on spend on Meta and Google. Ad prices are typically low during the third quarter as marketers prepare to spend during the fourth quarter. Ad buyers usually anticipate a 15% to 20% increase in ad prices during the fourth quarter, said Vic Drabicky, founder and CEO of ad agency January Digital. As TikTok continues to build out its technology and relationships with advertisers, ad prices continue to rise.
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