advertising

TikTok spotted testing native video ads

Posted by | ad tech, Ads, advertising, Advertising Tech, Apps, bytedance, Mobile, native ads, Social, TC, tiktok, Video, video ads | No Comments

TikTok is testing a new ad product: a sponsored video ad that directs users to the advertiser’s website. The test was spotted in the U.S. TikTok app, where a video labeled “Sponsored” from the bike retailer Specialized is showing up in the main feed, along with a blue “Lean More” button that directs users to tap to get more information.

Presumably, this button could be customized to send users to the advertiser’s website or any other web address, but for the time being it only opened the Specialized Bikes (@specializedbikes) profile page within the TikTok app.

However, the profile page itself also sported a few new features, including what appeared to be a tweaked version of the verified account badge.

Below the @specializedbikes username was “Specialized Bikes Page” and a blue checkmark (see below). On other social networks, checkmarks like this usually indicate a user whose account has gone through a verification process of some kind.

Typical TikTok user profiles don’t look like this — they generally only include the username. In some cases, we’ve seen them sport other labels like “popular creator” or “Official Account” — but these have been tagged with a yellowish-orange checkmark, not a blue one.

In addition, a pop-up banner overlay appeared at the bottom of the profile page, which directed users to “Go to Website” followed by another blue “Learn More” button.

Oddly, this pop-up banner didn’t show up all the time, and the “Learn More” button didn’t work — it only re-opened the retailer’s profile page.

As for the video itself, it features a Valentine’s Day heart that you can send to a crush, and, of course, some bikes.

The music backing the clip is Breakbot’s “By Your Side,” but is labeled “Promoted Music.” Weirdly, when you tap on the “Promoted Music” you’re not taken to the soundbite on TikTok like usual, but instead get an error message saying “Ad videos currently do not support this feature.”

Rolling through TikTok and got an ad from Specialized Bikes that just takes you to their profile when you tap “Learn more” but then brings up “video ads do not support this feature” when you tap on the promoted music track. pic.twitter.com/hBmedThVON

— Jeff Higgins (The Cool One) (@ItsJeffHiggins) February 14, 2019

The glitches indicate this video ad unit is still very much in the process of being tested, and not a publicly available ad product at this time.

TikTok parent ByteDance only just began to experiment with advertising in the U.S. and U.K. in January.

So far, public tests have only included an app launch pre-roll ad. But according to a leaked pitch deck published by Digiday, there are four TikTok ad products in the works: a brand takeover, an in-feed native video ad, a hashtag challenge and a Snapchat-style 2D lens filter for photos; 3D and AR lens were listed as “coming soon.”

TikTok previously worked with GUESS on a hashtag challenge last year, and has more recently been running app launch pre-roll ads for companies like GrubHub, Disney’s Kingdom Hearts and others. However, a native video ad hadn’t yet been spotted in the wild until now.

According to estimates from Sensor Tower, TikTok has grown to nearly 800 million lifetime installs, not counting Android in China. Factoring that in, it’s fair to say the app has topped 1 billion downloads. As of last July, TikTok claimed to have more than 500 million monthly active users worldwide, excluding the 100 million users it gained from acquiring Musical.ly.

That’s a massive user base, and attractive to advertisers. Plus, native video ads like the one seen in testing would allow brands to participate in the community, instead of interrupting the experience the way video pre-rolls do.

TikTok and Specialized declined to comment.

 

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Spotify’s increased focus on podcasts in 2019 includes selling its own ads

Posted by | ad tech, advertising, CES 2019, Media, Mobile, Podcasting, Podcasts, Spotify, TC | No Comments

Having established itself as a top streaming service with now over 200 million users, Spotify this year is preparing to focus more of its attention on podcasts. The company plans bring its personalization technology to podcasts in order to make better recommendations, update its app’s interface so people can access podcasts more easily, and broker more exclusives with podcast creators. It’s also getting into the business of selling ads within podcasts, as a means of generating revenue from this increasingly popular form of audio programming.

In fact, Spotify has already begun to dabble in podcast ad sales, ahead of this larger push.

Spotify, we’ve learned, has been selling its own advertisements in its original podcasts since mid-2018 year, including in programs like Spotify Original “Amy Schumer Presents: 3 Girls, 1 Keith,” “The Joe Budden Podcast,” “Dissect,” “Showstopper,” and others. With more exclusives planned for the year ahead, the portion of Spotify’s ad business focused on podcasts will also grow.

The company appears to be taking a different approach to working with podcasters than it does with it comes to working with music artists.

Today, Spotify gives artists tools that help share their work and be discovered – it invested in distribution platform DistroKid, for example, and now lets artists submit tracks for playlist consideration. With podcasters, however, Spotify wants to either bring their voices in-house, or at least exclusively license their content.

“Over the last year, we become very focused on building out a great podcast universe,” said Head of Spotify Studios Courtney Holt, speaking at the Consumer Electronics Show (CES) in Las Vegas this week. “The first step was to make sure that we’ve got the world’s best podcasts on Spotify, and integrated the experience into the service in a way that allowed people to build habits and behavior there,” he said.

“What we started to see is that the types of podcasts that really were working on Spotify were ones where they were really authentic voices…so we just decided to invest more in those types of voices,” Holt added.

Spotify’s collection of originals has been steadily growing over the past year. Last August, for example, Spotify nabbed an exclusive deal with the “Joe Budden” podcast, which is aimed at hip-hop and rap culture fans, and launched its first branded podcast, “Ebb & Flow,” focused on hip-hop and R&B. Its full original lineup today also includes “Dissect,” Amy Schumer’s “3 Girls, 1 Keith,” “Mogul,” “The Rewind with Guy Raz,” “Showstopper,” “Unpacked,” “Crimetown” (Its first season was wide, second season is exclusive to Spotify), “UnderCover,” and “El Chapo: El Jefe y su Juicio.”

At CES, Spotify announced the addition of one more –  journalist Jemele Hill is coming Spotify with an exclusive podcast called “Unbothered,” which will feature high-profile guests in sports, music, politics, culture, and more.

In growing its collection of originals, the company found that podcasters who joined Spotify exclusively were actually able to grow their audience, despite leaving other distribution platforms.

For example, the Joe Budden podcast had its highest streaming day ever after joining Spotify.

This has led Spotify to believe that influencers in the podcast community will be able to bring their community with them when they become a Spotify exclusive, and then further grow their listener base by tapping into Spotify’s larger music user base and, soon, an improved recommendation system.

There are other perks for Spotify, too – when users come to Spotify and begin to listen to podcasts, they often then spend more time engaged with the app, it found.

“People who consume podcasts on Spotify are consuming more of Spotify – including music,” said Holt. “So we found that in increasing our [podcast] catalog and spending more time to make the user experience better, it wasn’t taking away from music, it was enhancing the overall time spent on the platform,” he noted.

While chasing exclusive deals to bring more original podcasts to Spotify will be a big initiative this year, Spotify will continue to offer its recently launched podcasts submission feature to everyone else.

With this sort of basic infrastructure in place, Spotify now wants to help users discover new podcasts and improve the listening experience.

One aspect of this will involve pointing listeners to other podcast content they may like.

For instance, Spotify could point Joe Budden fans to other podcasts about hip-hop and rap. It will also leverage its multi-year partnership with Samsung to allow listeners pick up where they left off in an episode as they move between different devices. And it will turn its personalization and recommendation technology to podcasts – including the ads in the podcasts themselves.

“Think about what we’ve done around music – the more understand you around the music you stream, the more we can personalize the ad experience. Now we can take that to podcasts,” said Brian Benedik, VP and Global Head of Advertising Sales at Spotify, when asked about the potential for Spotify selling ads in podcasts.

The company has been testing the waters with its own podcast ad sales since mid 2018, Benedik said. The sales are handled in-house by Spotify’s ad sales team for the time being.

Benedik had also appeared on a panel this week at CES, where he talked about the value of contextual advertising – meaning, ads that can be personalized to the user based on factors like mood, behavior and moments. This data could be appealing to podcast advertisers, as well.

But to scale its efforts around podcast ads, Spotify will need to invest in digital ad insertion technology. We’re hearing that Spotify is currently deciding whether that’s something it wants to build in-house or acquire outright.

Spotify’s rival Pandora went the latter route. It closed on the acquisition of adtech company Adswizz in May 2018, then introduced capabilities for shorter, more personalized ads in August. By November, Pandora announced it was bringing its Genome technology to podcasts, which allowed for a recommendation system.

Now Spotify aims to catch up.

The addition of podcasts has reoriented Spotify’s focus as company, Holt said.

“We’re an audio company. We’re trying to be the world’s best audio service,” he told the audience at CES. “It’s a pure play for us. We’re seeing increased engagement; there’s great commercial opportunities from podcasting that we’ve never seen on the platform…And, obviously, exclusives are to give us something that makes the platform truly unique – to have people come to Spotify for something you can’t get anywhere else is the sort of cherry on top of that entire strategy,” Holt said.

Image credits: Spotify

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Spotify will now let brands sponsor its Discover Weekly playlist

Posted by | Ads, advertising, Advertising Tech, brands, Media, Mobile, Music, Spotify, streaming service | No Comments

Spotify has begun testing a new type of ad in Discover Weekly, its personalized playlist of music that’s the streaming service’s flagship feature. The company says that, for the first time, it will allow a brand to “sponsor” this playlist as opposed to just running ads. It believes many advertisers will be interested in this opportunity due to the playlist’s ability to reach heavily engaged Spotify users, and because it allows advertisers to “own the personalized listening experience” on Spotify.

According to Spotify, Discover Weekly listeners stream more than double the amount of users who don’t listen to the playlist because of the personalized experience it offers. That will make the ad product more compelling, compared with brands’ existing ability to sponsor other editorial playlists on the service.

With Spotify’s Sponsored Playlist ad product, brands can surround Spotify’s free listeners with audio or video messages in ad breaks, and gain Spotify’s help in building a collaborative marketing plan.

Microsoft will kick off the launch of branded ads by running an A.I. ad campaign called “Empowering Us All.” This will explore A.I. across sectors like Education, Healthcare and Philanthropy. Spotify says it was a good fit for the launch, as Discover Weekly is customized for each user by taking advantage of A.I. technology.

“At Microsoft we are focused on empowering every individual and organization to do more. Our work in AI is a central part of that mission to unlock human ingenuity,” said Erin Bevington, General Manager of Global Media at Microsoft, in a statement. “Our partnership with a technology innovator like Spotify offered a way for us to effectively share that message within a personalized entertainment experience powered by AI.”

Spotify recently passed 200 million monthly active users, but is now looking to new ways to generate revenue from its user base beyond simply converting free users to premium subscribers.

The company has been growing its subscriber base at a steady pace, but Wall St. hasn’t been happy with its financials. One issue is that its newer promotions, like its low-cost student and family plans, have seen its average revenue per user dropping – as of Q3 2018, it had fallen 6 percent year-over-year to $5.50. A more valuable ad product could help bring these numbers back up. 

“Personalization has quickly gone from a nice-to-have to an expected consumer experience that delights audiences and marketers are craving opportunities to be part of it” said Danielle Lee, Global Head of Partner Solutions at Spotify, in a statement. “Our new Discover Weekly ad experience positions advertisers for success and ensures that our fans are hearing messages that embody the ethos of discovery.”

Brand sponsorships for Discover Weekly are currently in beta testing, says Spotify.

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Apple’s Search Ads expand to six more markets in Europe and Asia

Posted by | ad tech, Ads, advertising, Advertising Tech, app-store, Apple, Apps, developers, Mobile, search ads | No Comments

In December, Apple introduced a new pay-per-install ad product called Search Ads Basic aimed at smaller developers, to complement the existing Search Ads product, which then became known as Search Ads Advanced. Today, the company is expanding Search Ads to more countries, including France, Germany, Italy, Japan, South Korea, and Spain, bringing the total number of countries where Search Ads is available to thirteen.

In addition to the U.S., Search Ads Advanced had already expanded to Australia, Canada, Mexico, New Zealand, Switzerland, and the U.K.

Developers in the newly supported countries will be able to create campaigns using Search Ads Advanced starting on July 25, 2018 at 4 PM PDT, with those campaigns appearing on the App Store starting August 1, 2018 at 4 PM PDT.

Meanwhile, Search Ads Basic will be available across all thirteen supported countries starting on August 22, 2018 at 10 AM PDT.

To encourage sign-ups, Apple is offering first-time advertisers a $100 USD credit to try out the product.

While the first version of Search Ads launched back in October 2016 in the U.S., the idea behind the newer “Basic” product was to offer developers a different – and simpler – means of reaching potential customers.

Search Ads was originally designed to allow developers to target users’ keyword searches, combined with other factors like location, gender or whether or not they had installed the app in the past. Developers would pay when users tapped on those targeted ads.

With the launch of Search Ads Basic, it’s easier to set up campaigns.

Developers only have to enter the app to be advertised, the campaign’s budget, and how much they want to pay per install. Apple helps by suggesting the max developers should pay using historical data. Then, developers only pay for actual installs, not taps.

Although the App Store was redesigned with the launch of iOS 11 to offer improved discoverability, search is still a key way people find out about apps.

Apple says that over 70 percent of App Store visitors use search to discover apps, in fact, and 65 percent of all downloads come directly from an App Store search.

The ads work well, too, as they have an over 50 percent conversion rate, on average, says Apple.

Apple’s advantage over the pay-per-install ads found elsewhere on the web isn’t only the ads’ placement – at the top of App Store searches, where they’re identified with a blue background and “Ad” icon – it also manages this without violating user privacy. That is, it doesn’t build specific profiles on individuals for ad targeting purposes, and it doesn’t share user data with developers. By its nature, this makes the system GDPR compliant.

In addition, Apple only places an ad when it’s relevant to a user’s search – developers can’t pay more to have their ad shown more often across less relevant searches, which offers a more level playing field.

Apple didn’t say when Search Ads would reach other countries, but with the new expansions it has some of the top markets now covered.

 

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Gravy’s new mobile game show is ‘Price is Right’ mixed with QVC

Posted by | Ads, advertising, Apps, Fundings & Exits, Gaming, iOS apps, Mobile, shopping, Startups | No Comments

Following the success of the live mobile game show HQ Trivia, a team of serial entrepreneurs have begun testing the market to see if another game show concept can work, too. Their new game show-inspired app, Gravy, is meant to be a riff on the “Price is Right” combined with a QVC-style shopping experience. That is, the “contestants” compete for discounts of 30 to 70 percent off the products advertised, with a portion of the proceeds going to charity. In addition, through a side game, users can guess when the product – whose quantities are unknown – will sell out and at what price. Those who guess closest win a cash prize.

The startup was created by Mark McGuire, Brian Wiegand, and Craig Andler – the founding team behind Jellyfish.com, an older social shopping network that was acquired by Microsoft back in 2007, to help create Bing Shopping. They’ve also paired up on other projects, including NameProtect (before Jellyfish), printable coupons resource Hopster, social network Nextt, and e-commerce subscription retail site, Alice.com. These have either exited or shut down or both.

The team’s efforts imply a clear passion for working with brands, but getting consumers to connect with brands in new ways is far more difficult, as their track record shows.

That’s why they’re now trying Gravy.

The hope is that the excitement around seeing the product unveiled nightly – and knowing you’ll get a big discount if you buy – will become an entirely new ad unit of sorts, while keeping players engaged in a game-show like experience.

“One of the challenges with millennials is their short attention spans, and they don’t respond well to interruptive advertising,” explains Wiegand, of why the team wanted to build this startup. “I don’t think anyone’s really mastered how to monetize live video. So we came up with this opportunity to create this new ad unit where brands could tell their story, and – for seven or eight or nine minutes – create a live shopping event where millennials can tune in and hear that story but in a fun, gamified kind of manner,” he says.

Here’s how Gravy works. Every night, at 8:30 PM ET in the Gravy iOS app, a live host will unveil the product users can buy. Currently, there’s a rotating selection of hosts who work on a per-show contract basis, usually local comedians – not brand reps.

Players are not told how many items are available, but it’s typically anywhere from two to twenty.

Then the price starts to drop. If you buy early, you’ll have a chance to snag it at a slight discount. But the longer you wait, the higher the percentage off will become. However, you don’t know who else could snatch it up first and when. If you wait too long, the product will sell out.

Meanwhile, if you’re not interested in the product itself, you can guess when you expect it to sell out (meaning, at which price.) Those ten or so closest will receive a small cash prize – a split of maybe $200 or $300, with first place receiving the largest chunk.

At least 20 percent of sales are given away to charity – a nod, I suppose, to millennials’ interest in do-gooder style companies. But ultimately, that decision that has more to do with the fact that Gravy doesn’t aim to be a retailer – it’s not another deal-of-the-day destination like Woot!, despite the similarities around generating product excitement.

Instead, it expects brands to donate products and pay a fee for the “advertising opportunity” Gravy offers.

Brands will like Gravy because they get millennials’ attention for seven minutes or more, Wiegand says. “They love the engagement. It’s a highly engaged audience…I have a chance to buy the products, so I’m heavily engaged in thinking about that product. The recall, memorability, and all of the subsequent buzz – tweeting and all the social media that gets created because of that – is great,” he adds.

However, none of this is proven out yet – Gravy is just a couple of weeks old.

So far, around 50 percent of the products it has featured have actually been donated by brands, including 23andMe, 3D Doodler, Tapplock, and others. The rest have been subsidized by Gravy, including the bigger draws – like a DJI drone, for example.

It’s not yet charging for the ad opportunity, either, as it’s hoping to grow the audience first.

The company says that’s already underway. After alerting friends and family to the app’s launch, the games are seeing 600+ players nightly, Wiegand claims, and is growing its audience 15 percent week-over-week. Around half of those who signed up to play are returning to watch around three shows per week, he says.

While the early numbers are promising if true, and it’s clear the team likes to work in the general space of connecting brands with consumers, Gravy still feels – like much of what the founders have created before – designed primarily with the needs of brands in mind, before that of consumers.

A “Price is Right”-style app would be a lot of fun, but this isn’t it – it’s, at the end of the day, an invitation to watch an ad and shop at a discount. That’s not something consumers may want to do every day, long-term – even if you try to woo them with a small cash prize won through a guessing game.

And like Trivia HQ , which has dropped from a top 20 app to the 140’s (by App Store overall rank, the shine may eventually wear off for Gravy, too. Especially because it’s not primarily a game – and millennials, as fickle and short attention-spanned as they may be (really? the generation that binges entire TV seasons in a few days?), will know it.

Wiegand isn’t concerned, though.

He says he gets bored with trivia apps in a few weeks, but Gravy is different.

“I always shop and I always like a deal. The deal industry and the shopping industry are so much larger than the trivia space,” Wiegand insists. “And the thrill of seeing a product that you like going down into the sixties and seventies percent off is unbelievably thrilling,” he enthuses. “We are able to feature things that have the best price on the planet of first-run products…it creates this heart-pounding, exhilarating and experience like, ‘Should I buy? Oh my God, look at this price. I can’t turn it down,’” he says.

The company raised $2.1 million in seed funding from a range of investors, including the founders at the turn of the year. Around eighty percent was outside capital, led by New Capital. The under-20 person team is based in both Madison and Minneapolis.

Gravy is on the App Store here.

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Pinterest is slowly rolling out its automated shopping ads to more marketers

Posted by | advertising, Apps, Mobile, Pinterest, Social, Startups | No Comments

Pinterest is looking to continue to increase its portfolio of ads, though sometimes that can take a little while to see the light of day — and that includes a new-ish tool called Shopping Ads that’s slowly getting opened to more marketers and advertisers.

Getting new ad formats is important for a smaller company looking to build out an advertising business, as it has to show potential advertisers it can offer an array of tools to play with as they experiment with that service. The company said today that it’s expanding those shopping ad tools to hundreds of additional advertisers after launching a pilot program last year as it looks to continue to ramp up that tool. Pinterest has to be able to convince marketers that it should be a mainstay advertising purchase alongside Facebook and Google, which are able to routinely show returns in value for their advertising spend.

Shopping ads automatically create promoted pins from an existing product feed for a retailer. That means it’s basically one less thing for retailers to worry about as they add more and more content to the service. Most of Pinterest’s content online is business content as users share products they might be interested in one day buying or already own. As Pinterest gets more and more data on this, they’ll have a better handle on what ads work best, and hope that businesses will hand off the process in full to something more automated.

Pinterest hopes to capture that routine user behavior of planning what they want to do next, whether that’s an outfit to wear that day or some kind of major event or purchase down the line. Getting a hold of those users in the moment they might be interested in a new product is key to the company’s pitch to advertisers. You can more or less consider this a continued test as the company starts to slowly give the tool to the advertisers it works with before it becomes generally available. If it works, it could probably end up down the line in the hands of all advertisers, which could help for small- to medium-sized businesses without a lot of experience build out their early marketing campaigns.

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Apple introduces a new pay-per-install ad product called Search Ads Basic

Posted by | Ads, Adtech, advertising, app store ads, app-store, Apple, Apps, developers, Mobile, search ads, TC | No Comments

 Apple today is introducing a new way for app developers to acquire users for their apps: it’s launching a pay-per-install advertising product called Search Ads Basic. The “basic” branding signals that this product is being aimed at smaller developers compared with the existing Search Ads product, which is now being renamed to Search Ads Advanced. Launched last year, Search… Read More

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Pinterest rolls out its own version of QR codes

Posted by | advertising, Mobile, Pinterest, qr codes, Startups, TC, WeChat | No Comments

 If you are walking around a retailer, you might have seen a sign or something along those lines posted to check out its Pinterest account for additional content or products — but there was not really a seamless way to get to that account. Taking a cue from the prevalence of QR codes around the world, Pinterest is rolling out its own variation of QR codes for retailers and brands. Read More

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ARAD helps developers get ads in their augmented reality apps

Posted by | advertising, Apps, ARAD, augmented reality, hackathon, Mobile, TC, techcrunch disrupt hackathon, TechCrunch Disrupt SF 2017 | No Comments

 ARKit and other augmented reality tools are going to make the experience more and more popular among developers and users — but, like any new platform, there probably won’t be a sophisticated way to monetize them yet outside of paying for a download. A team of developers from Google and Snapchat at the TechCrunch Disrupt SF 2017 hackathon are hoping to take the learnings from… Read More

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Snap’s earnings this week will once again test its place in the advertising universe

Posted by | advertising, Apps, Earnings, Facebook, Finance, Mobile, Snapchat, TC | No Comments

 Snap will report its second earnings report this week, which will once again look to answer the question: is there room on the advertising spectrum for Snap? The answer during its last earnings report (its first as a public company) was a resounding to be determined. The company’s stock has been hammered in the past several months falling well below its IPO price, which is not great… Read More

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