This is a longer email this week, but it was a week with a lot of significant news. Mary Meeker released her 2017 internet trends report and Google made public their position on ad blocking/bad ads (and there was still other industry news). Here’s what you might have missed:
Mary Meeker Report
The full deck is here (warning 355 pages!). The key sections are 2. Online Advertising, 3. Interactive Games, 4. Media, and 10. Macro Thoughts. Don’t be dissuaded by the size of the deck. Meeker’s decks are quick to read and contain a wealth of information. In the digital, internet and VC industry, they are a must read.
Given the size of the deck, I’m going to give a top line summary of the Online Advertising section only:
- online advertising will be more measurable and actionable (better targeting and measurement)
- ad growth will come from mobile ($16B opportunity)
- internet advertising will overtake TV by the end of this year; Google/Facebook are 85% of ad growth
- ad blocking is a bigger issue on desktop and in developing markets
- User Generate Content on Instagram is an opportunity for brands
- a theme about the web moving to be more visual (Google Lens, Snapchat, Pinterest, etc) and the growth in AR
- voice interfaces (Echo, Google Home) growing as dominant input on mobile (20% of Google mobile search queries).
- ads becoming store fronts (browse, discover and ad to cart/buy within the ad)
- specific ad product/partner call outs in the deck (worth noting, as clients may ask you):
- Google Product Listing Ads
- Pinterest Targeted Pins
- Facebook Contextual Ads
- Snap Swipe to Play a Game
- Google Location Tracking
- Incentive-based + Skippable Video Ads
- Foursquare Venue/Location Recommendations
- Nextdoor (Local) Word of Mouth
- xAd Location Tracking on Commutes
I’d encourage anyone interested in cord cutting, subscription content (shout out Hulu team!) to read 4. Media section as there’s some good data on Netflix, Spotify, etc. A reminder, the full deck is here.
Google Ad Blocking
- The BIG news of the week is that more details are out about what ads Google will block in the new version of Chrome. Specifically, what the Coalition for Better Ads will accept. Anything that impairs a user experience of the content is, broadly speaking, going to get blocked. Google published A LOT of stuff this week on the topic:
- you can view the standards and research results here.
- there is a lengthy (Must Read!) doubleclick post on test results and recommendations
- a tool (Google login required) for publishers to evaluate ads
I am working with Google to try and get someone in to share the topline data across the agency in a more digestible format. This is going to have an impact on what media we buy and what creative clients supply. So a lot more to come on this topic. Chrome with the inbuilt adblocker will be available early 2018.
Other Industry News
- Skype is not just our internal business messaging app. It’s still used by consumers and had a major Snapchat-like makeover this week. Notably, the revamped experience is coming to mobiles first. No word on whether Skype for business will be filled with stickers, GIFs and more anytime soon.
- Transparency in programmatic is something everyone wants. The IAB Tech Lab has released a draft Ad.txt spec which would enable content owners to declare who is authorized to sell their inventory. The IAB blog post has a good explanation of how it not only will improve transparency but reduce counterfeit/fake inventory.
- Pandora is offering branded radio stations. This is different from the sponsored “30minutes of audio” unit and is a dedicated, themed station. Propel fitness is one of the first brands to experiment with the product.
- In a smart move by Snapchat, they’re looking to get ahead of brand safety. While IAS, DV, and MOAT cannot monitor content, Snapchat are partnering with them to build the right protocols to protect brands from inappropriate user generate content. Having the right process won’t solve for the lack of verification, but it’s a positive step in the right direction.
Hope you have a good week.
Joshua
PS. A small distraction for you – Miso Happy. A 3D selfie app. for the spring/summer. My money is betting this app gets acquired by Snap, Facebook or someone very soon.