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Monday July 25
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Adtech

For the second time in 3 months disappointing Snap results trigger a crisis in confidence in digital advertising with many competitors share prices dropping - ahead of the next round of results this week.

Much of the issues are around the economic climate - and the WSJ makes the point digital ads are often a leading indicator of issues - but that they were quick to bounce back at the start of the pandemic

But the spectre of Apple and their privacy driven changes hangs over advertising sold by Snap and eveyone else. Eric Seufert is the best voice on this and he reminds us that fixing these problems is a long term challenge.

With typically good timing our friends at Arête have a call on Tuesday with investors around what they term Digital Ads - Uncharted Waters. Should be really insightful.

A long time theory of the Arête team is that Google could have to walk. Away from their AdTech business. Digiday look at this here.

Amazon: how ecommerce group became the world’s third largest digital advertising player 

Merchant

The supermarkets are inevitably going to compete fiercely given the cost of living crisis - but we see a couple of unexpected moves. 

Amazon have turned up the heat on grocery with an an announcement they are to price match Tesco Clubcard prices in their Amazon Fresh stores.

And Tesco are to offer home delivery for under £1 to people who sign up for 12 months. This is clearly unprofitable but may increase the Tesco share of their customers grocery shopping.

I covered Livecommerce in our Deep Dive this week and Digiday has some agency thoughts on the opportunity

Web3

For all the interesting projects from fashion and luxury brands, smart people innWeb3 know the real progress will happen when CPG brands make it work. These brands don’t enjoy the glamour or fandom of Gucci or Balanciaga but do have huge customer base and enormous marketing budgets. If Web3 can be made into a business positive platform for these brands its future is secure.

Unilever have shared their approach, which is typical of the more progressive CPGs firms.

This is a great opportunity for brands, but they must offer genuine utility to consumers and not just jump on the bandwagon. We’re shaping our approach in Unilever to ensure our brands show up authentically in the metaverse, and that people feel safe and valued in our spaces.”

Matthew Ball in Time Magazine; The Metaverse Will Reshape Our Lives. Let's Make Sure It's for the Better

IS NFT ART ANY GOOD?- Verge

newTV

So I guess we all saw the Netflix news? Subscriptions were down — but at 1m lower than feared. The company was fairly bullish - knowing they have made changes yet to impact the numbers;

Our challenge and opportunity is to accelerate our revenue and membership growth by continuing to improve our product, content, and marketing as we've done for the last 25 years, and to better monetize our big audience," the company said Tuesday in its letter to investors. "We're in a position of strength given our $30 billion-plus in revenue, $6 billion in operating profit last year, growing free cash flow and a strong balance sheet."

The FT talks of the great Netflx correction, pointing out the concerns of analysts;

Morgan Stanley this week described the situation as the “first streaming recession”. “Streaming video revenues may prove more vulnerable than expected to a global recession and lower consumer spending levels,” warned analyst Ben Swinburne.

Bank of America cautioned that streaming has “very quickly become a commoditised product”.

The challenge for Netflix as the primary innovator in the space, is whether they can make the adjustment needed to thrive in a competite market. Or do their fast followers keep eating away at their numbers?

Amazon prime are looking to improve discoverability in the video service - hopefully increasing viewing time, if people are better able to find something they want to watch.

So, what’s the big idea? Well, the most significant design change is coming in the form of an upgraded menu navigation system intended to help Prime Video subscribers more easily browse the platform’s roster of movies, TV shows, sports and premium channels.

Experimentation around how to reduce password sharing continues - The Verge report on how LatAm customers are being monitored - using IP addresses - and offered different deals to continue or face being cut off.

The WSJ reports how brands are looking forward to being able to advertise on Netflix and in a separate piece consider how the Netflix deal helped Microsoft Make a Splash on Madison Avenue

A look at the health of AVOD has an interesting quote from Kanta exec;

In developed markets like the US or UK, it’s clear Netflix has reached, or is close to reaching, peak penetration – the vast majority of those who want to get Netflix already have it,” he explains.

“(But) it’s not necessarily right to compare Netflix with other, more recently launched SVOD platforms, like Disney or, Discovery+. For almost all other players in the SVOD space there remains significant headroom for growth – in subscriber numbers and, also, in increased revenue per user.”

This is a good FT profile on whats next for DAZN as they move into sports betting

An insipid response from the Government on funding the BBC

Plus+

Amazon to acquire One Medical clinics in latest push into health care

Benedict Evans on a podcast around regulation

Amazon Sues Administrators of More Than 10,000 Facebook Groups Over Fake Reviews

Two Guys, A Welsh Football Team and A Hollywood Dream

Our latest Good TikTok Creative newsletter - Superdrug and Beyoncé

DOOH - is the climate cost of digital billboards too high to justify?

The Future of Advertising: A conversation with Rory Sutherland

The TikTokization of Media

Building and testing helpful AR experiences - Google

The new Creative Language — a TikTok tokumentary.

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