While Google and Facebook are the undisputed advertising leaders online, companies are increasingly looking for other digital ways to spend their marketing budgets, according to advertising and public relations company WPP CEO Sir Martin Sorrell.
"What our clients want and what our agencies want is more competition of the space, anything that gives more competition to the duopoly of Facebook and Google," Sorrell said to CNBC.
The two tech giants account for about 75 percent of digital ad budgets, according to Sorrell. But, there are competitors ready to chip away at their dominance, including AOL and Yahoo's ad tech platforms and Snap. Even Amazon is becoming a threat, with its ad platform recently valued at $350 billion, he pointed out.
"Getting more than two solutions is important," he said.
But while Google's issue of ads appearing next to questionable content is causing companies to pull dollars right now, Sorrell doesn't think the moves will be permanent because of how big of a presence the company has in digital adverting. WPP spent a little under $5 billion on Google media buys last year.
"You're negating or withdrawing from arguably one of the most powerful mediums," Sorrell said.
Courtesy of CNBC
In Other Advertising News.........
YouTube Creators Won't Make Money Until They Hit 10,000 Lifetime Views
In an effort to weed out users who steal original content and re-upload it to their channels, YouTube announced a change to its Partner Program that prevents users from monetizing any video until it reaches 10,000 views.
"Starting today, we will no longer serve ads on YPP [YouTube Partner Program] videos until the channel reaches 10k lifetime views," according to a blog post Ariel Bardin, vice president of product management.
"This new threshold gives us enough information to determine the validity of a channel," Bardin continued. "It also allows us to confirm if a channel is following our community guidelines and advertiser policies. By keeping the threshold to 10k views, we also ensure that there will be minimal impact on our aspiring creators. And, of course, any revenue earned on channels with under 10k views up until today will not be impacted."
YouTube's decision could have a negative side effect. As "YouTubers" know, building an audience large enough to turn a decent profit making videos takes time. Without an assist by a popular creator or a stroke of luck—such as a video getting shared by the right social media account or website—new users looking to make a go of creating videos full-time could find themselves swimming upstream.
YouTube seems to have anticipated such a consequence. "In a few weeks, we’ll also be adding a review process for new creators who apply to be in the YouTube Partner Program," Bardin continued. "After a creator hits 10k lifetime views on their channel, we’ll review their activity against our policies. If everything looks good, we’ll bring this channel into YPP and begin serving ads against their content. Together these new thresholds will help ensure revenue only flows to creators who are playing by the rules."
Courtesy of ShackNews