Behind Headlines: 180 Seconds in Ad Tech — Secrecy & Augmented Reality

Hey there! This is Ari at Sharethrough. In this episode I'll be giving you a quick recap of what happened the week of November 15th in ad tech, in 180 seconds. Let’s go!

First up, Apple has been secretly buying Google search ads for high-value brands like HBO, Masterclass and Tinder that drive users to the app store link instead of the brand’s website. You’d think that free advertising is great, but by siphoning  user subscriptions through the app store, Apple is able to take their 30% cut from subscriptions in the first year, and 15% in subsequent years, instead of brands receiving the full subscription fee. Advertisers would also have to spend more in order to rank above Apple’s ads for their own brands. Thus increasing the cost per acquisition, and lowering a customer’s lifetime value. (Source: Forbes)

Next up, Buzzfeed and Yahoo strike a new partnership. Advertisers using Yahoo’s supply-side platform (SSP) will gain preferential access to Buzzfeed’s site network, with sites like HuffPost, Tasty, and Goodful. In return, Buzzfeed agrees to use Yahoo’s identity tech products, like ConnectID and Next-Gen Solutions, allowing the two companies to pair first-party data, creating an addressable audience of nearly 150 million people. The caveat is users will have to opt in to tracking from BOTH publisher groups. Otherwise, ads will be placed based on contextual data using AI to deliver relevant messages. And as long as demand is coming from Yahoo’s SSP, Buzzfeed is able to enjoy higher CPMs than other platforms. (Source: Adweek)

In other news, Snapchat now offers multiple formats for their ad creatives. Now advertisers can place video on formats like Story Ads, Snap Ads, and Collection Ads while Snap uses machine learning to optimize the ad delivery based on targets, budget allocations and campaign length. Previously, advertisers would have to create multiple ad groups for the different formats. And starting in Q2 2022, Snap will allow advertisers to use Augmented Reality as an ad format. While the current changes resemble the capabilities of other social platforms, Snapchat is the first to announce future AR capabilities. (Source: AdExchanger)

Speaking of AR, Niantic, the company that brought Pokemon GO on our phones and strangers closer together, released their first branding advertisement, for what it hopes the future of the metaverse could be. Niantic believes the current path towards the metaverse is a “dystopian nightmare”, and hopes that the metaverse will instead be used to get people outside, interacting with each other, and the world around them. (Source: FastCompany)

And lastly, Yelp, the review platform, announced two new products within it’s ad offerings. The first of the offerings called “Sponsored Collections” is a way to promote national CPG brands like Heinz, the program pilot, on Yelp’s home page; directing users to self-identified restaurant partners that carry those brands. Rather than ROI being tied to the product purchases like on Instacart, Yelp instead says that restaurants go through more ketchup than consumers can. The second offering is called “Seasonal Spotlights” which allows restaurants like IHOP, the program pilot, to promote their seasonal deals. Just in time for the holidays! (Source: Yelp)

Thanks for tuning in! For more in-depth information or to subscribe to these weekly updates, check out the links in our blog. This has been Ari at Sharethrough for our weekly 180 second-recap in Ad tech. See you next week!