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July 30, 2019ACCC Digital Platforms Inquiry Final Report – much needed digit [...]
Flash Report, ReportsThe ACCC in its final report on the Digital Platforms has come up with a range of practical measures that could potentially help curb any anti-competitive behaviours from the tech giants. While the report focuses primarily on Google and Facebook, the ACCC has aimed to ensure that the recommendations are future-proof and adaptable to other digital platforms as the market evolves.
July 15, 2019Ad blocking update – Publishers and tech giants work togeth [...]
Flash Report, ReportsDigital publishers are using a variety of strategies to counter the impact of ad blockers from requesting users to turn off ad blockers or whitelisting websites to blocking access to content. Publishers have also found unlikely allies in Google and Facebook that are making it harder for third party ad blockers to block ads on their platforms.
July 10, 2019Google’s Icarus moment
Flash Report, ReportsGoogle’s advertising business has begun losing market share in the US, with competition from Amazon, Facebook and Microsoft intensifying in search and display. In response, the company is redoubling efforts to reshape its apps, services, and the entire web for more efficient monetisation, spelling uncertainty for partners and users. The adaptability and complexity of Google’s services reduce business risk from targeted regulatory measures, but increase the pressure for a radical intervention
June 26, 2019Facebook Libra – the cryptocurrency arms race has begun…
Flash Report, ReportsFacebook announced the launch of Libra, a new digital currency that aims to transform how we pay and transfer money. Calibra, Facebook’s Libra ewallet, has the potential to shake the entire payments industry through its scale and value. However, Libra faces multiple challenges, including regulatory hurdles and Facebook’s chequered past with privacy and data security.
June 12, 2019Monetising user-generated video
Flash Report, ReportsVideo sharing platforms, like YouTube, Facebook Watch and Twitch, are vying to attract creators with monetisation options such as branded content and user payments. Advertising income, already limited for many small and medium-sized creators, has been undermined by YouTube’s response to brand safety concerns. The new tools come with their own obstacles, but are necessary to keep platforms attractive to video creators.
May 29, 2019Facebook’s video strategy – loads of content but nothing to W [...]
Flash Report, ReportsBy 2020, online video will account for 82% of all internet traffic in Australia. It is therefore not surprising that global tech giants are investing in and acquiring different genres of video content as they make a play to dominate online video consumption. Facebook’s half-hearted attempt at video streaming has had its fair share of issues so far and is playing catch up in a market already dominated by other SVOD players.May 14, 2019Facebook doubles down on advertising
Flash Report, ReportsAfter the most challenging period in its history since 2012, Facebook has been able to stabilise its fundamental metrics and announce a major product overhaul. Despite talk of a business model pivot, Facebook’s focus remains on advertising, whose growth will remain concentrated in developed markets. News publishers wishing to stay relevant on the upgraded product set need to target exclusive layers of social interaction, with groups particularly important.
April 3, 2019eSports and Broadcasters – to TV or not to TV…
Flash Report, ReportseSports viewership and revenues have grown significantly in the past few years and look set to continue growing rapidly. The rapid growth and the much-coveted millennial viewer base has caught the eye of traditional broadcasters who are looking at ways to explore this new content genre. But has the eSports ‘gravy train’ already left the station?
March 19, 2019UK online advertising: Brexit year forecast and trends
Market Outlook, ReportsUK online advertising spend continued its double-digit growth in 2018, up 11% to reach nearly £13bn in annual spend or 58% of the total advertising market, but a no-deal consumer downturn could nearly stop growth this year. Google, Facebook, Amazon, professional services firms and the largest marketing cloud companies are the biggest winners, while content media, media agencies and independent advertising technology firms languish. Self-regulation has improved as pressure mounts on advertising technology firms, but interventions by both privacy and competition authorities are now inevitable.
March 15, 2019TikTok’s challenge to Western social media
Flash Report, ReportsLaunched to the world in September 2017, TikTok is the first Chinese app to pose a serious threat to Western social media companies as it attracts hundreds of millions of Generation Z users around the globe. Privately-owned parent company Bytedance earned $7 billion in online advertising revenues in 2018 and is valued at $75 billion, placing it ahead of Uber as the world’s most valuable internet start-up, with an IPO likely this year. Bytedance’s goal of earning half its revenue outside China by 2022 is far from certain. In order to hit the target, TikTok will need to attain super scale with best-in-class revenue per user, an unlikely combination.
March 11, 2019ACCC’s Digital Platforms Inquiry – more regulation on the hor [...]
Flash Report, ReportsGoogle and Facebook have made their submissions relating to the ACCC’s Digital Platforms Inquiry. Both tech giants have focused their attention on the ACCC’s recommendation for the need to establish an "algorithm" regulator. If implemented it will have major consequences to the tech giants and potentially other players.
March 8, 2019GDPR tested on Google, ad tech and Facebook
Flash Report, ReportsRecently issued regulator rulings on Google, ad tech companies and Facebook challenge prevailing online advertising practices of obtaining user consent under the EU’s General Data Protection Regulation (GDPR). Rulings from France on Google and ad tech partners of media owners called them out for inadequate disclosure to users, and excessive merging and processing of data. In a landmark precedent for Germany, the Federal Cartel Office found that Facebook lacked “freely given” consent from users, calling its terms “exploitative” and an abuse of its dominant position, also harming competitors.
February 27, 2019The price is right for UK’s national newspapers
Flash Report, ReportsThe average cover price of national newspapers has risen by 58% since 2010, more than twice the CPI increase of 22%. Are publishers “shooting themselves in the foot” at a time when buyers and advertisers are defecting to online?. To settle this, we analysed all the cover price events by national titles between 2010 and 2018, which reveals the relative success of The Times when it has raised its price. For mid-market and popular titles, cover price hikes have on balance reduced circulation revenues and, by lowering reach, drained advertising revenue: a lose-lose scenario.Sector Media.January 21, 2019UK advertising spend: Brexit year forecasts
Market Outlook, ReportsOur central case forecast with orderly EU withdrawal predicts 2.7% growth for total UK advertising spend, down from 4.7% in 2018. We have a no-deal Brexit scenario that predicts a smaller advertising recession than in 2009, with total ad spend declining 3% and display down 5.3% in 2019. The total advertising figures partly mask the pressure on UK consumers, through an expansion of the measured advertising spend universe. This is due to significant self-serve online advertising growth by SMEs, and non-advertising marketing budgets moving to online advertising platforms. In a downturn, we’d expect advertisers to become more tactical, which would disproportionally affect display media including TV, which is further affected by declining commercial impacts among younger adults. Search and social advertising would see only small growth through the first year of a recession.
January 17, 2019Apple and Amazon bury the hatchet
Flash Report, ReportsAmazon’s recent deals with Apple in TV, music and device sales mark a turning point after a decade of frosty relations. The context for this involves shifting priorities at both firms, growing pressure on Apple’s iPhone business, and rivals in common — first and foremost Google, but also the likes of Netflix and Spotify. The uneasy alliance helps both companies consolidate their strengths in the platform competition over media and the connected home — but trouble already brews.
December 19, 2018UK Recruitment classified marketplace
Market Outlook, ReportsThe UK’s labour market is tight, with an unemployment rate of 4.1%, the lowest since 1973. Peak vacancies and reports of skill shortages mask dull hiring plans amidst the gathering Brexit gloom, which will hit temporary hiring hard. We expect media expenditure to fall in 2018, substantially more among print publishers, spilling over into 2019 expenditure on media. The recruitment industry has benefited from the structural shift to outsourcing, and large agencies are portals in their own right, providing tools to companies to sift applicants to find the best match. Companies doing their own recruitment of professionals value listing on LinkedIn, the top UK site by visitors, and the efficiency of paying per applicant rather than for the listing. Second-placed Indeed has gained considerable momentum since being acquired by Japan’s Recruit Holdings in 2012. Indeed acquired third-placed Glassdoor in 2018, the latter having built its market position through user-generated reviews of employers. With Google serious again about Jobs, a sector (among others) it has tried to disrupt before, Monster and Jobsite are the more vulnerable to being crowded out.Sector Media.December 18, 2018UK Vertical marketplaces overview and property classified outlook
Market Outlook, ReportsThe UK consumer’s loss of confidence since the June 2016 referendum vote in favour of Brexit has reduced the revenues of both estate agents and auto dealers, with knock-on effects on their media spend, entrenching further the leadership positions of Rightmove and Auto Trader respectively. Only the UK’s recruitment marketplace is buoyant with a record level of vacancies, benefiting general recruitment aggregator Indeed, although deepening Brexit gloom among businesses will rapidly melt away vacancies. With internet users flocking to portals and away from print media, advertisers have followed suit with media spend on these portals to stimulate purchaser interest, although transactions are still conducted offline. Facebook and Google, which have long histories of contesting markets for local advertisers with little success, have re-entered classifieds. Facebook Marketplace is now accepting listings from estate agents and dealers, expanding from C2C to B2C in homes and cars. Google Jobs launched in the UK in July 2018 and enjoys partnerships with all the major portals other than Indeed. The sharp decline in sales and shift to lettings, sluggish price growth and pressure on estate agents’ commissions, are making marketing key to driving transactional activity in a longer sales funnel. Rightmove’s revenues are on track for a 10% increase in 2018 on the uplift in average revenue per agent (ARPA). Zoopla's market share rose with the end of OnTheMarket's 'one-other-portal' rule for shareholders upon its AIM listing in February 2018.
December 13, 2018ACCC Digital Platforms Inquiry – Google and Facebook have just [...]
Flash Report, ReportsOn 11th December 2018, the ACCC released its preliminary report on the Digital Platforms Inquiry, and one thing is certain – Google and Facebook won’t be happy after reading it. The draft recommendations are extensive and call for significant changes to privacy and consumer protection laws and new regulatory oversight to monitor and curb the market power exerted by Google and Facebook.Sector Media.
October 31, 2018US department stores, Amazon, and omnichannel fashion retail
Market Outlook, ReportsAmazon is finding women’s fashion, a missing piece of its household-centric model, a tougher nut to crack than downmarket apparel. Higher-end US department stores are pushing back with an omnichannel model, emphasising long-term partnerships, a clever full-price/outlet model, and experiences which cross the online-offline divide. In apparel, Amazon and big box retailers have already triumphed over lower-tier American department stores, and even prestigious fashion brands are finding it harder and harder to refuse cooperation with the giants.
October 30, 2018Neobanks – The David against banking Goliaths?
Focus Report, ReportsThe banking industry has traditionally displayed inertia to major disruption and innovation. With the rise of neobanks in Europe and the UK, and the arrival of Australia’s first neobanks; Volt, Xinja and 86 400, this may be set to change as the younger generation of customers increasingly adopt more digital and customer-centric banking services.$450.00
October 26, 2018Video Entertainment Market Outlook: The overall Video Entertainme [...]
Market Outlook, ReportsWe anticipate the Australian video market to marginally decline from A$5.48bn in 2018 to A$5.33bn in 2023 driven by a deflationary shift from traditional to digital platforms. While we don’t expect the overall size of the video entertainment market to decline materially, we do expect platform share to change dramatically over the next five years. Pay-TV will remain under pressure as the way video is consumed and paid for changes. Foxtel will offset some of this pressure by its participation in the xVOD market albeit this market will be heavily contested with multiple new players emerging.
October 11, 2018UK Esports & broadcasters: No game for old players
Focus Report, ReportsDrawn by its rapid growth and enviably youthful audience profile, incumbent broadcasters are paying increased attention to esports and its followers. Viewership of esports on UK broadcasters’ linear channels is low, with consumption on their online platforms likely the same. The market’s fragmented nature and global audience, along with the dominance of Twitch—and to a lesser extent YouTube—makes this unlikely to change. Broadcasters’ low-cost approach has primarily benefited competition organisers and games publishers. For broadcasters to create real revenues, massive upfront investment would be needed, with the risk of failure high.October 4, 2018From promises to practice: AI in marketing at DMEXCO 2018
Focus Report, ReportsAt DMEXCO, the top online advertising conference in continental Europe, a call for responsibility took centre stage rhetorically, but was hardly reflected on the conference floor. In contrast, concrete, on-the market applications of AI in advertising were no longer a rarity, with businesses from ad tech to consultancies demonstrating case studies in campaign management, consumer segmentation and personalisation. The industry is betting that the ePrivacy Regulation will be canned as policymakers fear Chinese and American dominance in AI, but the Chinese giants still had a confused marketing pitch at DMEXCO.Sector Media.
September 26, 2018Telcos and the battle for HDMI 1 – bringing everything under on [...]
Focus Report, ReportsThe rise of SVOD platforms has driven a significant change in TV viewing habits with viewers having an unprecedented choice of content. The result is a fragmented video market which has made it increasingly complex for users to manage the various sources of content that are available.Sector Media.
