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FTC Charges Company for Review Hijacking on Amazon

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Online shopping has become a common practice in recent years, and it has become increasingly important for customers to rely on product reviews to make informed decisions. As a result, online marketplaces like Amazon have created features that allow customers to rate and review products. However, it has become a growing concern that some companies are manipulating these features to deceive customers. For the first time, the Federal Trade Commission (FTC) has filed charges against a company for “review hijacking.”

The complaint, filed by the FTC on Thursday, alleges that the Bountiful supplement company manipulated product reviews on Amazon. Bountiful, which manufactures vitamins and nutritional supplements under the Nature’s Bounty and Sundown brand names, is accused of abusing an Amazon feature that allows products to be displayed in “variation” relationships. This feature allows similar products with minor differences to share reviews.

Bountiful is alleged to have merged its new products with different well-established products that had more ratings and reviews. By doing so, the company gave the impression that the new products were well-rated and established. The FTC’s complaint states that Bountiful manipulated Amazon’s variation relationships to deceive customers and unfairly compete with other companies.

The Bountiful Company is paying back $600,000 for manipulating product pages and deceiving customers, said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. Levine added that “boosting your products by hijacking another product’s ratings or reviews is a relatively new tactic, but is still plain old false advertising.” The FTC’s action is expected to serve as a warning to other companies that engage in similar practices.

In an internal email, Bountiful stated that it created variations for products “to try and ramp them faster as they were NOT selling and we wanted to give them a little boost.” However, this action is in violation of Amazon’s policies and is considered false advertising by the FTC. Review hijacking not only deceives customers, but it also damages the reputation of honest sellers who rely on authentic product reviews to sell their products.

Online marketplaces like Amazon have been taking steps to address this issue, such as implementing review verification processes and algorithms to detect fake reviews. However, it is a complex problem that requires cooperation from both online marketplaces and companies to ensure the accuracy and authenticity of product reviews.

Instagram says goodbye to live shopping: Time to start hoarding your Reels views

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Instagram has announced it will sunset its live shopping feature on 16 March, after removing the Shop tab from its navigation bar earlier this month. The move will prevent brands and creators from tagging products for sale during their livestream broadcasts. However, it will not affect the ability to invite guests or host Q&As with viewers. It will also not impact the ability to set up and manage shops on the main Instagram platform. The app has affirmed it will continue to invest in shopping experiences for main feed, stories, ads and Reels.

This is the latest move in a series of commerce-related cutbacks for Meta Platforms, which has struggled to maintain consumer interest in social commerce, despite the channel being a promising driver of engagement and revenue earlier in the pandemic. Instagram first rolled out live shopping in 2020, during a time when many brick-and-mortar retailers remained closed due to health restrictions. However, Meta shut down a similar live shopping feature on its core Facebook app last autumn.

Meta is attempting to become a leaner organization following a brutal few quarters of declines. The company’s revenue was down 4% year-on-year in Q4 2021 to $32.2bn, as it contended with weak advertiser demand and ongoing challenges around iOS changes that have made tracking and measuring mobile campaigns more difficult.

The social networking giant has stated it will direct more attention and resources toward the metaverse and Reels, which are becoming more popular with users, but remain relatively immature in terms of monetization. Meta enacted a steep round of layoffs last year, and the Financial Times has reported that more job cuts could be in the pipeline in the near future. Meta CEO Mark Zuckerberg has promised 2023 will be a “year of efficiency” for the embattled firm as it seeks to improve its situation.

TikTok, which Reels closely emulates, has also struggled to crack social commerce despite its popularity with digital natives like Gen Z and young millennials. Social commerce is a widely adopted tactic in other markets such as China but has yet to take off in the US more generally.

Overall, Instagram’s removal of live shopping is another sign of the difficulties Meta Platforms has experienced in keeping consumer interest in social commerce, as it tries to create a more efficient organization in the face of declining revenues. Despite this, it is continuing to invest in shopping experiences around its main feed, stories, ads, and Reels, while shifting more resources towards the metaverse. While social commerce has yet to take off in the US, Meta Platforms and TikTok are hoping it will gain traction in the coming months and years.

WTF is De-Influencing?

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De-influencing, the practice of criticizing influencer recommendations and encouraging consumers to think twice before buying a product, is a growing trend among younger generations. With the rise of videos on TikTok criticizing influencers and urging users to carefully consider their purchases, the days of influencers telling us what to buy, wear, watch, and follow may be coming to an end. While a 2020 study showed that over a quarter of the general population has made a purchase based on an influencer’s recommendation, followers are becoming increasingly aware of influencers’ marketing strategies and are taking steps to no longer be duped.

The de-influencing trend has even given rise to the term “de-influence,” which is being used by content creators to help other users not fall for a scam or even an over-hyped product that just doesn’t live up to the attention. TikToker Michelleskildelsky is one such creator who has been critical of the useless products that influencers recommend acquiring, such as 25 different perfumes and Ugg slippers. Some creators even make a project out of buying products recommended by influencers and setting out to critique them and deconstruct their lack of utility.

For brand collaboration coach and content creator Kahlea Nicole Wade, de-influencing is about trust and reclaiming power, especially for Gen Z. Some influencers have been called out for being untrustworthy, such as in the “MascaraGate” incident involving an influencer being accused of wearing false eyelashes while promoting the virtues of a mascara from L’Oréal. In response to such critiques, some influencers are calling for everyone to take responsibility for themselves and their purchases.

However, not all messages on de-influencing are aimed at reducing users’ consumption generally. Some de-influencers criticize over-hyped products and encourage their followers to buy cheaper ones. In a departure from their usual content, TikTok beauty influencers are offering uncharacteristically critical product reviews, many directed at products that they believe have been overhyped by other influencers on the platform.

While the term “de-influencing” is new, the strategy itself has been around for years. Influencers who rose to prominence on YouTube as “beauty gurus” offered unbiased product reviews in the early days of the platform. As they grew in popularity, the world of influencer marketing was born, with brands capitalizing on the trusted guru role by paying or incentivizing them to promote products to their loyal followers.

The de-influencing trend may have arisen from a controversy over a product recommendation, with viewers accusing TikTok beauty influencer Mikayla Nogueira of exaggerating the effect of a mascara that she had been paid to promote by secretly applying false lashes. This video and its backlash sparked wider debates surrounding influencers’ authenticity, prompting a deluge of de-influencing posts.

It is not just influencers who are facing scrutiny. A recent survey found that consumers are becoming more skeptical of influencer content and are looking to other sources for product recommendations. With 83% of respondents stating that they have been deceived by influencer content, it is clear that trust is an issue in the influencer space.

The rise of de-influencing may also reflect a shift towards conscious consumerism, with consumers seeking to make more informed and responsible purchasing decisions. With younger generations more environmentally conscious than their predecessors, they are looking to brands and influencers to take a stand on important issues such as sustainability, diversity, and inclusion.

Ultimately, the de-influencing trend is a wake-up call for influencers and brands to reassess their marketing strategies and ensure that they are transparent, authentic, and responsible. Influencers should be more conscious of the products they endorse, and brands should be more transparent about their collaborations with influencers. In a world where consumers are becoming savvier and socially conscious, both influencers and brands need to be honest and ethical in their practices to gain and maintain the trust of their audience. De-influencing is a reminder that the power dynamic between influencers and their followers is not one-sided, and that consumers have the power to influence their own purchasing decisions.

As the de-influencing trend continues to grow, it is likely that we will see more influencers and brands adapting to this shift in consumer behavior. Those who are transparent and responsible in their marketing strategies will likely succeed in gaining the trust and loyalty of their followers, while those who continue to rely on unethical practices may face consequences.

Texas Attorney General Launches Investigation into Rudy Giuliani Promoted Scam

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The state of Texas is investigating the marketing claims of Home Title Lock, a California-based anti-fraud service that has been promoted by Rudy Giuliani, Newt Gingrich, and other right-wing personalities. The investigation seeks to determine whether the company has misled consumers through its ads and promotional materials. For nearly $20 a month or $199 a year, Home Title Lock promises to monitor a homeowner’s title “24/7” and help stop title theft, a crime where a con artist uses fraudulent documents to claim ownership of someone else’s home and swindle lenders or sell the property.

The company claims to help victims reclaim their homes if needed, including covering legal fees, and markets itself to people over 45, who are “essentially conservative,” according to a spokesperson. However, several claims made by the company have been challenged, including the scope of the crime known as “home title theft.” In its advertising materials on TV, radio, and online, Home Title Lock has at times described title theft as a threat “exploding across America.” But, the FBI says it couldn’t find any evidence that the agency ever described home title theft that way, and the FBI reports that Home Title Lock cites to support its claims don’t offer any statistics specific to home title theft.

In June 2021, ABC News published an in-depth investigation into Home Title Lock and its advertising practices, raising questions about several claims made by the company. Since ABC News published its findings, Home Title Lock has made changes to some of its marketing materials, now claiming on its website that FBI reports show “real estate fraud” — not home title theft specifically — “is one of the fastest growing cybercrimes in America.”

The Texas attorney general’s office announced its investigation, noting that Home Title Lock was “potentially violating the Texas Deceptive Trade Practices Act by misleading consumers with deceptive statements concerning the prevalence of home title theft and the need for Home Title Lock’s services.” In December 2021, Paxton’s office issued a “civil investigative demand” to Home Title Lock, ordering it to hand over 27 categories of documents.

However, a spokesperson for Home Title Lock defended the company’s claims, pointing to a dramatic increase in the amount of money real estate fraud victims lose each year. While it is true that home title theft is a real crime with potentially devastating consequences, many local governments offer free title-notification services or are taking other measures to help protect homeowners. But Paxton’s office is investigating whether Home Title Lock’s ads may be overstating the occurrence of the crime.

As the investigation continues, consumers should be wary of claims made by companies like Home Title Lock that promise a complete solution to a complex problem. Instead of relying on these companies, consumers should seek advice from their real estate agents or local government officials to learn about the free services available to help protect them from title theft.

With Home Title Lock under investigation, it raises questions about the legitimacy of other products promoted by right-wing personalities like Rudy Giuliani. Consumers need to be vigilant and take responsibility for their financial and real estate security. Don’t let the flashy promises of scam artists and con men fool you.

Digital Video beats Linear TV for First Time Ever

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US adults are set to spend more time watching digital video on platforms like Netflix, TikTok, and YouTube than traditional TV for the first time ever, according to a recent forecast by Insider Intelligence. The market tracker predicts that linear TV will account for less than half of daily viewing, falling to under three hours, while average daily digital video watching climbs to 52.3%, with an average of 3 hours and 11 minutes.

The shift towards digital video is being driven by people spending more and more time watching video on screens of all sizes, including connected TVs and smartphones. With teens preferring social and streaming video over TV, the trend is expected to continue to favor digital, according to Paul Verna, principal analyst at Insider Intelligence.

Netflix and YouTube are currently the two leaders when it comes to digital video audience attention, with US adults tuning in for an average of about 33 minutes daily on each platform. However, TikTok is quickly becoming a key driver, with the average time spent on the app daily by US adults rising sharply, according to Insider Intelligence.

Over the past five years, the rise of streaming services has caused major Hollywood studios to pull programming budgets from broadcast and cable channels and invest in their own streaming services. However, sports and news channels have remained profitable and have continued to generate strong cash flows from their linear businesses. Cable channels such as TNT, Syfy, and Comedy Central have reduced their budgets for everything from staffing to marketing, focusing their efforts on streaming. Channels like ESPN and Fox News have benefited from their ability to generate strong cash flows from their linear businesses.

However, there are early warning signs that the growth of news and sports channels is ending. For years, these channels have used rising carriage fees and advertising growth to offset cord-cutting. But with cord-cutting only growing and a tough ad environment, times may be changing. Last quarter, Fox Corp. saw its cable affiliate revenue decline on a yearly basis for the first time. Disney also saw a decline in U.S. cable revenue.

Executives in the sports world are beginning to grapple with the skyrocketing cost of sports rights, with similar implications. ESPN is going through challenging times due to the changing landscape of linear programming. Companies are pivoting streaming services to focus on profitability, making the fate of linear TV more uncertain. The linear business is in crisis, and the need to control costs is more urgent. In the end, streaming is inevitable, and while it isn’t all doom and gloom, the challenges will only grow starker.

“TikTok versus Netflix will be a major trend to watch this year,” said Insider Intelligence principal analyst Jasmine Enberg. “The lines between social and entertainment have blurred, and TikTok is now coming for the bigger-screen video players.”

While Twitter is not primarily a video platform, overall time spent on the platform by US adults is expected to drop this year and next year as its user base declines. “The problem is that Twitter’s efforts to encourage more original videos, from Vine to Fleets, have so far been unsuccessful,” said Enberg. “Twitter owner Elon Musk’s attempts to bring more video to the app, including potentially incentivizing YouTube creators to post to Twitter, will be futile at improving time spent among all US adults unless he also manages to stave off a user decline.”

The rise of digital video is also being fueled by the availability of live sporting events on video streaming platforms and the popularity of shared video clips on apps. The shift away from traditional TV is expected to continue, with more and more people opting to consume video content on digital platforms.

Can We Finally Say the AOR Model is Dead?

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The Agency of Record (AOR) model, which has been a staple in the advertising industry for over 50 years, is facing an existential crisis as brands look for more value and greater efficiency in their advertising spend. While the AOR model has been effective in the past, recent trends in advertising, including shifts toward e-commerce, data and performance marketing, have forced agencies to diversify their offerings beyond traditional media and creative services. As a result, there has been a decrease in the value of new business for creative and media agencies. According to a recent report from consultancy R3, large advertisers are consolidating their marketing with holding groups that offer integrated services.

Some industry experts believe that the AOR model is still relevant, albeit in a smaller capacity. For instance, Pam Hamlin, CEO of Arnold Worldwide, believes that the AOR model can still work for large consumer brands as long as there is clarity around who leads and who ultimately is the final arbiter of the quality of the strategy and the creative work. Hamlin suggests that the AOR should continue to serve as the keeper of the brand flame across all media, even those communications the AOR doesn’t execute themselves.

However, many brands, including Frito-Lay, Best Buy, Mondelez International, PepsiCo, and Constant Contact, are choosing a DIY AOR model. In a Wall Street Journal piece last year, Mondelez’s CMO, Dana Anderson, said that it’s time to accept that the AOR model is no longer the pathway to Oz for clients or agencies. Anderson notes that digital has created thousands of new mediums, and it’s just not possible for one agency to be an expert in all these areas.

The Agency of Record (AOR) model has been the traditional way of marketing and advertising, where a single agency is responsible for all marketing services a brand needs. However, the AOR model is being replaced by more project-based models because of digital media, which has brought new marketing needs such as social media marketing, email marketing, and digital advertising, that require sub-specialties that are difficult to hire for.

This model has given way to a mix of different agencies to supply various specialized services. Although some companies still rely on the AOR model, others have opted for the DIY model, where they use several different agencies to complete different tasks. There is also a new “Voice Agency of Record,” where VaynerMedia was bestowed this title by JPMorgan Chase.

However, partnerships will continue to be the driving force behind marketing, and brands will look to roll support into several agencies, leading to new opportunities. While the AOR model is threatened, it is not dead, and the landscape will continue to change in the digital world.

The shift away from the AOR model is also being driven by a need for greater efficiency and value. Large advertisers are looking to diversify their marketing spend, and they’re seeking out agencies that can provide more advanced solutions. Greg Paull, principal at R3, says that the future is in e-commerce, data, and performance marketing, and agencies need to sell more advanced solutions to clients.

The use of multiple specialized agencies can create a robust toolkit for companies to take on new initiatives and drive innovation. To achieve the best results, companies should give their partners time to understand their business, marketing, and technology needs. The lipstick on a pig approach of bolting on the word “Digital” to the agency of record model is not sufficient, and companies need to choose specialized agencies that align with their goals and challenges.

The move away from the agency of record mindset fosters a culture of entrepreneurship and creates an environment that supports new ways of working. As the demand economy continues to grow, companies that partner with specialized agencies will be better equipped to meet their customers’ needs and create remarkable experiences that set them apart from the competition.

The rise of new guard independent agencies in the US suggests that CMOs are looking for bold ideas that maximize value. According to the R3 New Business League report, OKRP, Barkley, and Zambezi all joined the top 10 US creative agencies in the last month of the year. These independent agencies are besting more established agencies by winning pitches for Burger King, Red Lobster, and Under Armour, respectively.

While the AOR model may no longer be as relevant as it once was, it’s clear that there are still opportunities for agencies to win new business. The key is to be able to offer more advanced solutions that can help brands maximize value and efficiency. Agencies that can adapt to the changing landscape of advertising and provide innovative solutions are likely to be the ones that thrive in the years to come.

SJ Luedtke Scores with CMO Position at Houston Dynamo Football Club

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Houston Dynamo Football Club (HDFC) has announced that SJ Luedtke will be joining the team as its new chief marketing officer. Luedtke, who previously served as the vice president of marketing for the NTT IndyCar Series, will oversee media relations, creative content, advertising, retail, youth programs, community engagement and fan development for the Dynamo, Dash, Shell Energy Stadium and Houston Sports Park. She will be responsible for helping to build and grow the reach and engagement of the organization. Luedtke is the third front-office executive hired by the Club since the arrival of Majority Owner and Chairman, Ted Segal in 2021.

According to HDFC Chief Operating Officer Jessica O’Neill, Luedtke’s leadership and experience make her uniquely qualified to take the Dynamo and Dash to new heights. O’Neill said, “Given her background with both challenger brands and global brands, she’s uniquely qualified to take the Dynamo and Dash to new heights.” Luedtke herself is thrilled to be joining the HDFC family, and said, “It’s an exciting time to join HDFC. The organization is primed to realize its potential as a world-class organization on-and-off the pitch and I am elated to help lead and build towards that vision.”

Prior to joining the HDFC team, Luedtke spent nearly a decade with Nike, beginning as a regional event manager in 2010 and ending as global football brand director in 2016. During her time with Nike, she led a number of successful marketing campaigns, including “Make ‘Em Miss” and “Who You With”, which generated positive revenue growth. Luedtke also secured contracts with elite professionals such as Russell Wilson and Saquon Barkley.

Luedtke’s extensive experience also includes nearly seven years with two leading sports marketing agencies, where she worked with brands such as Goodyear Tire & Rubber, Craftsman, Motorola and Target. During her time at the NTT IndyCar Series, Luedtke expanded the organization’s marketing strategy by celebrating its history with a modern voice to appeal to new consumers. Her efforts delivered year-over-year growth across several key performance indicators, including app use and engagement rates.

Luedtke graduated from the University of Wisconsin with a bachelor of elementary education and is an active member of Women in Sports Executives (WISE). The life-long sports enthusiast has completed eight marathons and three Ironman triathlons. Her previous experience and passion for sports make her a valuable addition to the HDFC team. The organization is excited to have Luedtke on board and looks forward to working with her to achieve their vision of becoming a world-class organization both on and off the pitch.

Leading the Way for Women in Digital Marketing: Sara Malo’s Vision

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Sara Malo is the President/COO of LinkUnite, a community of executive women in digital marketing and the VP of Partnerships at Lead Generation World. She started LinkUnite in 2022 with Amanda Farris after realizing that there was a need for support and representation for executive women in the male-dominated digital marketing industry.

Malo and Farris both have over 30 years of experience in the industry and are dedicated to providing value to their members, partners, and ambassadors.

Malo has seen significant changes in the industry’s gender representation and equality over the years, from the days when the only women representation was booth babes at events to now having women owners, Presidents, and CEO’s at the forefront. “We often wondered why it was so male dominated and how there wasn’t any support out there for the executive women in the space,” Sara told us. She is excited about the progress that has been made but acknowledges that there is still a long way to go.

Sara is clear what her mission is: “We want to see more brilliant women delivering content at the industry events.”

As a single working mom, Malo believes in not seeing things as challenges or as negative but instead choosing to focus on the positive. She is a very busy person but manages to be a present mother by working from home full-time and being a master of multitasking.

She enjoys running, hiking, and blogging, believes it is essential to make time for hobbies and interests outside of work. “I start every day hiking my two dogs (Luna and London) in the woods and catching the morning sunrise,” she told ADOTAT. “This gives me time to get fresh air and figure out how to attack my day. I do my best thinking in the early morning hours. Oftentimes I am texting or skyping Amanda and Mike with new ideas that pop into my mind. I love that they get to wake up to this as they are both on different time zones.” Blogging is another hobby that she finds therapeutic, and she does it to get her thoughts out, “even if no one reads it.”

Aside from her hobbies, Sara is also passionate about community involvement. She chairs a local scholarship committee that has given out $500,000 to graduating seniors, and she enjoys writing letters of recommendation for young people heading off to college. Sara also serves as the President of her local athletic boosters association, which supports student athletes and athletic programs. She believes that volunteering is essential and finds it to be one of the most rewarding experiences, second only to being a mother.

According to Sara, “I think my biggest pet peeve is when people say they don’t have time to volunteer. My response is to make time and give back.” She emphasizes the importance of being a role model and leading by example, especially for young people. By volunteering in her community, Sara feels that she is making a positive impact and contributing to a better society.

Malo’s latest project is the LinkUnite Mentor Program (L.I.N.K.), which she launched with Kathy Yang from Digital Moses and a young college student named Emma. The program aims to ensure that industry knowledge is passed on to the next generation, and Malo encourages anyone interested to reach out to her.

Malo approaches business development in the marketing events industry by listening to what her clients need and being a good person they want to talk to. She takes time to understand their business and how events can help them with growth and ROI, with the value being the number one component.

Her expertise in sales, client success, and business development has been instrumental in her current role as the President & COO of LinkUnite. She creates her approach, which focuses on building strong relationships and always making herself available to brainstorm a new idea with clients.

She has worked with many clients, some of whom have become close friends over time.
As the Vice President of Partnerships at Lead Generation World, Malo is responsible for creating partnerships with industry players and finding the right sponsors for events. She has a vast network and works to bring in sponsors that are a good fit for the event and provide value to attendees. She is also responsible for creating and executing on-site sponsorship programs.

She sees that performance marketing is a rapidly growing industry with endless possibilities for innovation and development. She says, “Performance Marketing is very unique and rapidly growing. I am still learning something new daily and I only see digital marketing growing from here on out.”

When it comes to her personal brand, Sara says it has been the “key to her success.” She used to work behind the scenes, but she wanted to be known and give back some goodness. She believes that every post, picture, video, podcast, etc. that she puts out into the world comes from a genuine place, and she takes pride in that. “

Sara also emphasizes the importance of networking in the marketing events industry. She believes that it is essential to be visible and have in-person conversations, particularly when it comes to business development. As she puts it, “I am in the part of my career where I only surround myself with good people.” She believes that good people can make a significant impact in the industry, and she only surrounds herself with those kinds of people.

“At our most recent LinkUnite II Event we asked our members to meet us on the beach,” remembered Malo, “We sat in a large circle and we asked our members to share their story. Tell us how they got here both personally and professionally. We had tears, laughter and so many emotions. Giving these women the opportunity to speak and share was life changing. Definitely my most cherished accomplishment thus far.”

Malo is a sought-after speaker and has spoken at many industry events over the years. Malo is passionate about giving back to the industry and has served as a mentor to many young professionals over the years. You can link up with her here.

Inside Yahoo’s Massive Advertising Layoffs

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A Yahoo spokesperson told CNBC that the company would provide severance packages to domestic employees who had lost their jobs. Yahoo didn’t provide specific details on the size or value of the severance packages.

He added that the changes will be beneficial for the profitability of Yahoo and will allow the company to invest more in its profitable areas. Yahoo was acquired by Apollo for $5 billion in 2021, and with AOL, the company has made over 30 ad tech acquisitions over the past decade.

Yahoo will shut down its supply-side platform (SSP) and native advertising platform, Gemini, as part of the changes. Instead, the company will use its newly formed partnership with Taboola to sell native advertising.

This move will increase the number of advertisers competing for ad placements on Yahoo properties by 8 times. Yahoo will not be exiting the ad tech business and will instead double down on its demand-side platform (DSP) that helps advertisers buy ads in an automated fashion across multiple websites.

The Yahoo spokesperson added: “The new division will be called – simply – Yahoo Advertising.

“In redoubling our efforts on the DSP on an omni-channel basis, we will prioritise support for our top global customers and re-launch dedicated ad sales teams towards Yahoo’s owned and operated properties – including Yahoo Finance, Yahoo News, Yahoo Sports and more.”

Yahoo’s CEO plans to hire more roles and make more acquisitions to grow the DSP business in the coming months. Under Elizabeth Herbst-Brady, Yahoo’s chief revenue officer, the company will streamline its DSP business to focus on selling advertising to Fortune 500 businesses and premium accounts in its most lucrative global markets.

Yahoo will build out a premium ad sales team for its owned and operated properties, like Yahoo Sports, Yahoo News, Yahoo Mail and Yahoo Finance, for the first time in years.

ADOTAT INSIGHT: These moves will help shift Yahoo’s focus towards growing its owned and operated properties as standalone brands, which is a focus of Yahoo’s strategy under Apollo. The reliance on its own SSP and native ad tech businesses negatively impacted Yahoo’s ability to monetize those channels, but the moves will simplify and strengthen the good parts of the business while sunsetting the rest, according to Lanzone. The CEO added that it was too resource-intensive to do everything at once. The total number of layoffs is expected to be more than 50% of the ad tech unit’s current staff and more than 20% of Yahoo’s current staff.

Sling TV Takes a Swing at Free Streaming with Freestream Launch

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Sling TV, the virtual MVPD, just dropped a bomb on the streaming world with the launch of Sling Freestream, a completely free ad-supported streaming TV service that’s different from their pay-TV offering. And, get this, you don’t even need to sign up!

Sling Freestream comes loaded with over 210 channels and 41,000 on-demand titles, with plans to beef up their content library in the coming months. You’ll find channels like ABC News Live, CBS News, Fail Army, FilmRise, and the Pet Collective, just to name a few. Plus, you’ll get free episodes of shows like “Forensic Files,” “Heartland,” and “Hell’s Kitchen,” along with international programming in seven languages.

And here’s the kicker, Sling Freestream doesn’t require a Sling TV subscription or account to access. But, if you do sign up, you’ll be able to create user profiles, favorite frequently watched channels, and tap into other personalized features.

Sling Freestream is live on Roku devices and rolling out across Comcast, LG, Samsung, Vizio, and Xbox devices. In the near future, the service will be available on all Sling-supported devices, including Apple TV, Chromecast, Fire TV, and TiVo Stream.

According to Sling TV Group President Gary Schanman, the goal behind Freestream is to meet consumers’ evolving needs, as research shows a continued increase in FAST consumption as a cheaper alternative to SVOD services.

“We know some people want free content, some may want a year-round paid subscription, while others may want to subscribe for certain events or shows,” Schanmann said. “We have combined world-class content with the option to easily flex in and out of premium pay TV, creating a one-of-a-kind entertainment experience.”

And here’s the cherry on top, Freestream users can upgrade to Sling’s Orange or Blue paid tiers or add a subscription from over 50 standalone streaming services, including AMC+, Discovery+, Showtime, and more. Talk about a more aggregated streaming experience!

Schanmann also boasted about the value of Freestream’s “premium advertising experience,” saying, “Built on the same advertising tech that powers Sling, Freestream is yet another opportunity for us to lead, innovate, and deliver a greater impact for our advertisers.”

As Sling Freestream grows, the company plans to enhance the user experience by integrating universal search functionality, autoplay capabilities, updated guide filters, and more.

So, there you have it, folks! Sling TV just raised the bar with their launch of Sling Freestream, a free ad-supported streaming TV service. And, it’s just a few months after their first price hike in nearly two years. Looks like the streaming wars just got a little more interesting.

Inside Warner Bro’s Change of Plans for HBO Max and Discovery+

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The year 2022 and 2023 will be remembered as a time of interesting and controversial decisions in the entertainment industry. With the recent merger between Warner Bros and Discovery, there have been numerous changes and headline-making moves that have left many in the industry scratching their heads. One such decision was the initial plan to merge the streaming services of HBO Max and Discovery+.

Instead, Discovery+ will remain a separate streamer, as the company fears that many subscribers would not be willing to pay the increased fee for the new mega channel.

The new streaming platform from Warner Bros, once referred to as Max, will still merge content from both services but Discovery+ will continue to feature new content that is exclusive to the channel. The CEO of Warner Bros Discovery, David Zaslav, has had a turbulent year, with controversial business moves and decisions that have not been well received by fans. One such decision was the shelving of the nearly completed feature film, Batgirl, which was deemed to be “unreleasable” by DC President Peter Safran.

Despite this, Zaslav has assured viewers that the shows and movies that have been removed from the platform were ones with low viewership numbers.

However, the partnerships with Roku and Tubi for the new free, ad-supported streaming television (FAST) channels is a significant step for Warner Bros. Discovery in their efforts to “aggressively attack” the lower end of the streaming market. The FAST channels will give the media giant an opportunity to reach a new audience, providing them with access to a wealth of entertainment options at no cost.

The content available on the Roku Channel and Tubi will feature a range of titles from the company’s extensive portfolio, including popular shows like “Westworld,” “The Bachelor,” “Cake Boss,” and “Say Yes to the Dress.” This move represents a strategy shift for the company, which previously relied solely on its premium streaming platform, HBO Max. However, with the growing number of streaming options available, offering a free, ad-supported platform is a smart move to reach a wider audience.

In addition to the FAST channels, Roku will also add about 2,000 hours of on-demand content from Warner Bros. Discovery’s TV series and movies, including content from HBO, HBO Max, Discovery Channel, HGTV, Food Network, TLC, and more. This partnership with Roku and Tubi is part of the company’s larger effort to increase its reach and addressable market, providing consumers with more options for entertainment.

The FAST channels are set to launch in the spring of 2023, and it will be interesting to see how they are received by audiences. If successful, this could be a model that other media companies look to follow, as they seek to expand their reach in the increasingly crowded streaming landscape. The Warner Bros Discovery merger has already made waves in the entertainment industry, and this new venture could prove to be a game-changer in the world of streaming.

Similarly, Tubi has announced a content deal with Warner Bros Discovery that will bring 14 WB-branded FAST channels and more than 225 ad-supported VOD titles to the platform. The content will begin rolling out on Tubi as early as February 1, 2023, and will include popular series such as Westworld, The Bachelor, Cake Boss, and Say Yes to the Dress, among others. The Tubi platform will also launch three new curated FAST channels that will include all seasons of popular series such as Westworld and Raised by Wolves, among others.

The future of streaming entertainment continues to be an ever-evolving landscape, and the Warner Bros Discovery merger is a prime example of the rapid changes taking place. The combination of HBO Max and Discovery+ was a bold move that aimed to provide a one-stop destination for all of your entertainment needs. However, with the change in plans to keep Discovery+ as a separate platform, it is clear that the company is taking a more measured approach to the streaming industry.

The impact of the COVID-19 pandemic has only accelerated the shift to streaming, with many people opting to stay at home and consume their entertainment online. This has led to a saturation of the market, with new streaming platforms launching all the time, each vying for a piece of the pie. The competition is fierce, and it is no longer enough to simply offer a broad library of content. To be successful, companies need to offer something unique and compelling that sets them apart from the rest.

Warner Bros Discovery’s decision to keep Discovery+ as a separate platform acknowledges this reality and is a smart move for the company. The platform already has a large subscriber base, and by not disrupting it with a radical overhaul, the company is more likely to retain those subscribers. This move also gives the company the opportunity to focus on the new platform, which is set to launch later in 2023. By keeping Discovery+ and the new platform separate,

The company can cater to specific target audiences, rather than trying to appeal to everyone with a generic offering. For example, Discovery+ caters to audiences interested in lifestyle, reality, and documentary content, while the new platform could focus on the more traditional entertainment offerings, such as movies and television shows.

GumGum Achieves MRC Accreditation for Verity™ Platform

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GumGum, a leading global digital advertising platform, has announced a new accreditation from the Media Rating Council (MRC) for its contextual intelligence platform, Verity™. The MRC has granted Verity™ a new accreditation for the measurement of English-language content-level classification and URL reporting through the Verity™ API for Connected TV (CTV). This new accreditation adds to GumGum’s existing MRC accreditations, which include classification and reporting for desktop and mobile web.

“The addition of accredited content-level classification for CTV to GumGum’s existing MRC accreditations is a noteworthy achievement,” said George W. Ivie, the Executive Director and CEO of the MRC. “It speaks to GumGum’s commitments to both transparency and innovation, and we’re pleased that advertisers and others now have the benefit of an MRC-accredited solution to help them navigate this critical emerging space.”

Verity’s content-level capabilities go beyond current solutions that rely on video metadata. It conducts frame-by-frame analysis to provide a comprehensive and human-like understanding of CTV content. This allows advertisers to target users dynamically in contextually-relevant and brand safe environments at scale. The accreditation also provides exceptional content monetization for CTV publishers through superior inventory alignment with advertisers in a privacy-forward solution.

“GumGum is committed to providing transparent and trustworthy solutions that will herald advertisers into the digital-first age. This additional accreditation from the MRC will now ensure that advertisers looking to engage with audiences in CTV environments can do so safely and with unparalleled precision,” said Peter Wallace, General Manager, EMEA, at GumGum.

Connected TV is set to be one of the fastest-growing environments for digital advertising. A study conducted by GumGum and MAGNA Global found that ads placed with insights that go beyond metadata create a 12 percent stronger alignment between an ad and a video. The study also found that video ads placed on a content level were 2.3 times more memorable than video ads placed using only metadata or property-level capabilities.

“It still shocks me that the norm in advertising is to choose to partner with providers who have limited third-party validation,” said Phil Schraeder, CEO of GumGum. “Why would we not do the same for protecting our brand and advertising dollars? CTV is looking to have an explosive year in 2023, and now with our MRC content-level accreditation for CTV, advertisers and publishers alike can confidently partner with us to advance their brand safety and advertising strategies.”

To earn MRC accreditation, an independent CPA firm completed a comprehensive audit and review of GumGum’s systems and processes to ensure Verity met the MRC’s rigorous standards. However, during the accreditation process, no testing was done for GumGum’s content-level mobile in-app capabilities, and GumGum was denied in-app accreditation. The accreditation only applies to English-language content at this time and is not applicable to mobile in-app.

GumGum’s In-Video product, a patented overlay ad unit for OTT and CTV streams, is currently available across North America and will be available in the EMEA region at a later date.

Overall, GumGum’s new MRC accreditation for Verity™ demonstrates the company’s commitment to transparency and innovation in the digital advertising space. Advertisers and publishers can now partner

Biden Wages War Against Big Tech’s Data Collection Practices in SOTU

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President Biden is taking a strong stance against targeted advertising in his upcoming State of the Union address. He plans to call for strict curbs on the collection of personal data, especially sensitive information such as health and geolocation, and place the burden on companies to minimize the amount of information they collect. In his speech, Biden will urge lawmakers to ban targeted advertising to children and young people and to enact strong protections for their privacy, health, and safety online.

The president’s stance on targeted advertising comes after numerous privacy bills were introduced in the past year, including the American Data Privacy and Protection Act (ADPPA) and the Kids Online Safety Act. The ADPPA, which would have imposed restrictions on data collection and some forms of behavioral advertising, was advanced by the House Energy and Commerce Committee by a vote of 53-2 but was never voted on by the full House or held hearings in the Senate.

President Biden’s plan to curb targeted advertising data collection has come under fire from those who believe it’s a violation of free speech. David Cohen, CEO of the Interactive Advertising Bureau, spoke out against the proposal in a recent speech, stating that it would “destroy our industry” and negatively impact both “Big Tech and Small Tech.”

Critics of Biden’s plan argue that curbing targeted advertising is not the solution to protecting personal data and privacy. Instead, they suggest that tech companies should be held accountable for ensuring the security of their customers’ data.

In a letter sent to lawmakers last year, the libertarian organization TechFreedom and a group of law professors criticized a similar bill, the American Data Privacy and Protection Act (ADPPA), for its broad mandates. They stated that “there is no way to accurately identify what content might exacerbate self-harm, suicide, eating disorders, or substance use disorders,” and that these mandates were both unworkable and unconstitutional.

Additionally, the Kids Online Safety Act, which would have required web companies to act in the best interest of users under the age of 17, faced similar criticism for potentially curbing content protected by free-speech principles.

In his State of the Union address, Biden will also demand transparency from tech companies regarding their algorithms and how they collect Americans’ personal data. The White House says that social media companies often do not enforce their terms of service with respect to minors and that Biden will discuss how his administration plans to address this issue.

Critics of the Kids Online Safety Act argue that it would have been unconstitutional to curb content protected by free-speech principles, such as material related to eating disorders. The libertarian organization TechFreedom and a group of law professors even sent a letter to lawmakers saying that there is no way to accurately identify what content might exacerbate mental health issues or substance use disorders.

President Biden’s call for bipartisanship on tech issues is a notable stance, given the split Congress and the complicated landscape for passing legislation in any domain. However, tech may be a rare area of hope for progress across the aisle. The State of the Union address will be the first time since 2019 that the president and congressional leaders can bring guests and the first time Biden gives the speech before a divided Congress.

In-Game Advertising: The Future of Marketing or a Bust?

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The world of video games and advertising has changed dramatically in recent years, with big brands and marketers taking note of the massive success of popular games like Fortnite and using them to target specific audiences with their advertising. This is a big shift from the past, where video games were seen as just a form of entertainment for children and teenagers, and marketers were hesitant to invest in this type of advertising. But now, with more than 80% of gaming adults saying they would be interested in seeing a brand advertise within a game, the trend has shifted towards in-game advertising.

So, what is driving this trend towards in-game advertising and why are brands so interested in using video games to reach their target audience? To answer these questions, it’s important to understand what makes video games so appealing to consumers and how they can be used to reach them.

The Psychology of Video Games

Video games are a multi-billion dollar industry, and they have a massive following of avid consumers. Playing games triggers a variety of psychological and physiological responses, from increasing focus and memory to reducing stress and tension. Video games also help to develop important skills, such as problem solving, critical thinking, cooperation, and creativity. This combination of psychological benefits and skill development is what makes video games so appealing to consumers.

The Fortnite Phenomenon

Fortnite’s rise in popularity has not gone unnoticed by brands and marketers. With over 250 million registered players, Fortnite is the biggest game in the world, and it has become a major source of entertainment for a huge number of people. Brands have taken advantage of this and started using video games like Fortnite to reach specific audiences with their advertising.

In-game advertising in Fortnite can take many forms, from sponsoring individual players and content creators, to creating branded events and live experiences, to running ads in pre-game content and in between matches. Brands can also create and run their own in-game ads, which allow them to place ads within the game world, making the ads part of the environment and promoting the brand in a more immersive way.

The Key to Success in In-Game Advertising

While gaming audiences are very aware of brands that advertise in video games, this does not mean that they are necessarily interested in the brand. Gaming is a personal medium that often involves a sense of community, so if a gamer is not feeling a brand, it doesn’t matter if it is a big brand with a huge advertising budget. This is why the key to success in in-game advertising is to create content that appeals to the gaming community on a personal level, so that the ad content resonates with the audience.

Examples of successful in-game advertising in Fortnite include Bootstrapped by Ninja, Shut Up & Dance, and Out of the Park. Each of these campaigns leveraged the game and its community to create content that resonates with gamers and drives brand awareness.

The Future of In-Game Advertising

There are still some questions about its future and whether or not it will become the next big thing in marketing. While some believe that in-game advertising is the future of marketing and will continue to grow and evolve, others are more skeptical and see it as a fad that will eventually fade away.

One of the biggest challenges facing in-game advertising is the issue of ad inventory. As more brands and marketers enter the world of in-game advertising, the demand for ad inventory is increasing, and it’s not always clear where this inventory is located. Some argue that this is a problem that will eventually lead to a saturation of in-game ads, which will turn off consumers and cause the trend to fade. However, others believe that the growth of the video game industry will lead to the development of new ad inventory, and that the demand for in-game advertising will continue to grow.

Another challenge facing in-game advertising is the issue of ad relevance. The success of in-game advertising depends on creating content that resonates with gamers, but this can be difficult if the ad is not relevant to the audience. This is why it is important for brands and marketers to understand their target audience and create content that appeals to them.

Also, the majority of in-game ads are still located in free-to-play or mobile games, not the premium console titles that attract most of the gamers’ attention. This confusion about what in-game advertising is can be frustrating for brands that are looking for a more significant, immersive experience for their ads.

One of the main challenges that the in-game ad industry faces is a lack of console inventory. Currently, in-game ad firms such as Bidstack and Anzu produce bespoke ads inside console titles, but not the programmatic ads that make up the majority of their inventory. Both Xbox and PlayStation have reportedly started to develop their in-game ad departments, and in-game ad companies like Bidstack and Anzu are working toward offering console inventory, but it is still a slow process.

Another challenge facing the in-game ad industry is a data gap that prevents brands from fully buying into the concept. Marketers are eager to know more about in-game advertising and the returns they can expect, but full transparency about in-game ad performance is still several years out. In-game ad measurement standards have improved in recent years, but it will still take time to provide the kind of data that advertisers need to make informed decisions.

In-game ad companies also face the challenge of educating brands about the space. Brent Koning, an evp and global gaming lead at Dentsu, points out that for sports games, advertising is already native for consumers, but for other genres of video games, advertising is still seen as non-traditional, which makes it harder for marketing teams to sign off on it.

Despite these challenges, the in-game ad industry is still poised for growth in 2023. Jude O’Connor, the CRO of Bidstack, predicts that industry-wide in-game ad sales will double in 2023, from an estimated $20 million to $40 million. But the in-game ad industry will have to work on overcoming these challenges if they want to achieve their growth potential.

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