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[1/2] Google, Microsoft and Alphabet logos and AI Artificial Intelligence words are seen in this illustration taken, May 4, 2023. Microsoft is testing ads in the Bing AI chatbot, which began rolling out to users in February, by relocating some traditional search ads and inserting them into the AI responses, the company said. In a May interview, Google’s general manager of ads, Jerry Dischler, said the tech company would also use existing search ads to experiment with ad placements within the AI search snapshots, an early-test feature called Search Generative Experience that first became available last month. Microsoft and Google said existing guard rails on their search engines, including lists of blocked keywords to prevent ads from appearing on those queries, would also apply to their AI search features. Three ad buyers said they were concerned about Microsoft’s lack of transparency reporting, or reports that can show what search terms triggered a brand’s ads to appear in generative AI experiences, or how the ads performed versus traditional search ads.
Persons: Dado Ruvic, Google’s, Jerry Dischler, Jason Lee, Wells, Wells Fargo, Lynne Kjolso, Bing, , Samantha Aiken, Max, can’t, Kjolso, Sheila Dang, Kenneth Li, Matthew Lewis Organizations: Google, Microsoft, REUTERS, Reuters, MAGNA, Bing, Horizon Media, Thomson Locations: Anthropic, Corona, Wells Fargo, Dallas
But in the past year, ad loads have crept up on almost all the top services, per MediaRadar. Now that streaming companies have fallen in love with ads, viewers can expect to see a lot more of them. Discovery+'s ad load grew 69%, to about 5 minutes per hour, while Hulu's jumped 38%, to 7.3 minutes per hour. MediaRadar shared numbers for standard commercial spots, which are the most common form of ads on streaming services. Disney+ Basic and Netflix's Basic with Ads are also increasing their ad loads — which is to be expected, as they're still ramping up.
The departure of ads chief Linda Yaccarino to Twitter has thrown NBCU into chaos. The exit comes on the heels of the departure of NBCU CEO Jeff Shell after sexual harassment allegations. One advertising executive who works closely with NBCUniversal described the situation inside the company as a "Cuban missile crisis." NBCU does have a deep bench of ad executive talent that's highly regarded in the ad industry. Although Yaccarino's departure from NBCUniversal to Twitter was a surprise, she had been close with the company and its billionaire owner.
Last week, Microsoft and Alphabet's (GOOGL.O) Google announced new generative AI chatbots a day apart from the other. Microsoft expects the more human responses from the Bing AI chatbot will generate more users for its search function and therefore more advertisers. Advertisements within the Bing chatbot may also enjoy more prominence on the page compared to traditional search ads. loadingMicrosoft's Edge web browser, which uses the Bing search engine, has a market share under 5% worldwide, according to one estimate from web analytics firm StatCounter. Parts Geek did not immediately respond to questions about whether it was aware of its ads appearing in the new Bing chatbot.
A TV era is quietly coming to a close and high-profile ad sales executives are hitting the exits. The changes come as advertisers pause spend due to economic uncertainty, and linear TV ad buys decline as viewers shift to streaming TV. Paramount CFO Naveen Chopra noted at an investor event "significant restructuring in our ad sales organization." NBCUniversal has done small groups of layoffs across divisions and just cut ad sales staff. Horizon's Campanelli said that with clients knowing much more about their audiences' viewing preferences, traditional ad sales desks have a smaller role to play than before.
A shift to streaming is shrinking the need for big ad sales teams. A TV era is quietly coming to a close and high-profile ad sales executives are hitting the exits. The changes come as advertisers pause spend due to economic uncertainty, and linear TV ad buys decline as viewers shift to streaming TV. Horizon's Campanelli said that with clients knowing much more about their audiences' viewing preferences, traditional ad sales desks have a smaller role to play than before. And local stations are still hiring TV sales executives, said Robert Russo, CEO of RNR Media Consulting, a former VP of political sales at ION Media.
Elon Musk went to New York on Halloween to meet with advertisers and visit the Twitter office. He brought his mom, Maye Musk, along to the meeting where execs asked about un-banning Trump. The billionaire then tweeted a joke about Trump during the meeting. Two advertising executives from Twitter also came along, as well as Musk's friend Jason Calacanis, and Maye Musk. Horizon Media CEO, Bill Koenigsberg, told Musk that some of his clients had heard about the meeting, according to Bloomberg.
Netflix's ad tier launched November 3, and its top ad exec Jeremi Gorman has said its ad inventory is nearly sold out. But some ad buyers said they're advising clients to hold out until the price comes down. One buyer said only half of its TV advertisers initially interested in Netflix are going forward with a deal. This person is advising clients to buy Netflix ads only when prices likely dip in six to 18 months. Most ad buyers think Netflix will eventually field a valuable offering but early returns are likely to be disappointing.
But some ad buyers said they're advising clients to hold out until the price comes down. One buyer said only half of its TV advertisers initially interested in Netflix are going forward with a deal. This person is advising clients to buy Netflix ads only when prices likely dip in six to 18 months. Advertisers are also reluctant to buy Netflix ads because they're untested and competing against platforms that have proven performance, like Hulu, NBCUniversal's Peacock, HBO Max's ad tier, and Amazon, sources said. Most ad buyers think Netflix will eventually field a valuable offering but early returns are likely to be disappointing.
"Per our prohibited content policy, ad content must not encourage, glamorize or depict excessive consumption of alcohol," Amazon's advertising policy says. The policy for alcohol ads doesn't affect non-alcohol ads that happen to feature alcohol content, Amazon said. The first "Thursday Night Football" broadcast offered a hopeful look for Amazon, which signed an 11-year deal with the NFL for $11 billion. The e-commerce giant's "Thursday Night Football" broadcast brought in 13 million viewers, which was over the company's estimation of 12.5 million viewers. Schwartz bought into "Thursday Night Football" for some of his clients, he told Insider.
Amazon said it averaged 13M viewers for its first "Thursday Night Football" broadcast, beating projections. Amazon said Thursday it averaged 13 million viewers for its first "Thursday Night Football" stream, citing Nielsen, whose numbers slightly beat the streamer's own projection of 12.5 million. "While just one game, I think it validates that streaming exclusive NFL games can compete with the traditional linear networks. Amazon started exclusively streaming the games last week as it makes a play to be a mainstream sports player. "We could see viewership continue to go up in the coming weeks as well, as more fans become more accustomed to the Prime TNF stream.
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