Data privacy regulations are sparking a tax on ad tech.
Google is still the leader in search advertising, mobile publishers turn to real-time auctions, Walmart enters the digital advertising business, and Facebook introduces new safety measures to give advertisers more control.
PS— don’t panic if you don’t hear from us next week. We’re taking the week off but we’ll be back with more ad tech news on 12/5!
Privacy management technology platforms have emerged from the crackdown on data privacy in ad tech. And companies are paying a significant amount for such services— as much as $30,000 per year. These new data privacy platforms help companies achieve compliance by training employees, producing documents, and managing consumer requests.
According to new research from Thinkbox, TV provides the most consistent return on investment in comparison to other media channels. Other channels such as print, social media, display, and OOH have higher variability of returns. The research also found TV has the highest ‘multiplier effect’ boosting all other channels by 20%.
Google’s revenue in search advertising still sits way ahead of any competition. But the company is forecasted to lose over 2% of its search ad business to Amazon by 2021. Search ad spend overall is growing and expected to rise 18% this year alone.
Real-time auctions have hit the mobile in-app ad world, but why now? According to a recent survey, mobile publishers cited benefits such as more transparency, more demand choices, and reduced latency. But the main benefit to embracing programmatic in-app is revenue lift.
The EU has once again intervened with Google’s advertising business forcing them to make changes to protect user privacy. The company will now limit data sharing for contextually targeted ads to avoid the risk of being able to associate them with individual ad identifiers.
The retail giant is set to launch both a self-serve ad platform and an API for programmatic buying in early 2020. These new tools will allow advertisers to buy search and display ads in addition to being able to manage their own programmatic campaigns. This move gives Walmart an opportunity to compete with Amazon’s ad business as advertisers seek out alternatives to the platform.
Facebook introduced new brand safety advertising tools that give brands more control over where their ads are being placed. The new safety measures include whitelists, easier implementation of brand safety settings, and new ways of reporting.
The ad tech industry is still out of line according to GDPR and has received strict warnings from the UK data protection authority to get it together. The Information Commissioner’s Office, held an “ad tech fact-finding forum” where the latest industry findings that violated GDPR were discussed.