Digital Minute - February 10, 2020
The following is a transcription of the Tailwind Flash Briefing published February 10th, 2020. To listen activate through the Amazon Alexa Skill store.
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Tailwind Digital Minute Flash Briefing for February 10th, 2020
Good morning listeners, today is Monday, February 10th and this is your weekly digital minute. I’m your host this week, David Ericson, and joining me in delivering today’s stories is Tailwind’s marketing coordinator, Bri Larkin.
Hello everyone! We have two big stories that really build off one another this week, both focusing on what’s happening in the advertising marketspace recently with an emphasis on Google. Now, we want to make sure we leave enough time to really speak on these stories so, without further ado, let’s jump straight into the first story of the week.
2019 Ad Revenue Totals Are Coming In And We’ve Got New Insights
As many people would, Amazon went into their fourth quarter last year expecting a good holiday season to support and bolster a massive chunk of revenue; and with $87.4 billion being made in net sales, they were spot on. However, it begs the question, how much are they making through other business ventures of theirs like, for example, their advertising platform.
Well, they have officially announced now that they generated $4.8 billion in terms of quarterly ad revenue, an increase of 41% since last year.
That amount brings their total revenues from ad placements to $14.1 billion throughout all of 2019, a 39% increase over 2018’s $10.1 billion.
Now what’s important to remember is that Amazon is growing their offerings as key attractions for advertisers based on the full funnel service they can deliver in the ecommerce realm. But I know what you might be thinking, how does this compare to the other titans of the industry?
Well, [name], putting it simply it doesn’t. Facebook is presently reporting that they have made a total of $70 billion from their ad sales with Google then dwarfing that with approximately $135 billion themselves.
In fact, we can even call out that YouTube, merely one funnel of Google’s respective ad platform and network, actually made over $15 billion in revenue itself, beating out Amazon.
Now, not to discredit YouTube, by making that amount, they’ve also secured a position larger than consumer magazines, newspapers, out-of-home, and several other traditional media channels.
In fact, only traditional television advertising and radio, yeah, radio, are still larger than YouTube. Really this is actually a big deal though as this is one of the first times Google has been able to confirm and give proof to just how massive of a revenue driver YouTube is.
And with 1.5 billion monthly total active users within all of their ad units, as reported by Greg Sterling of Marketingland, Google is only growing their practice and making it easier to navigate multiple channels in growing your brand.
We also have to give credit where it’s due, Google is constantly evolving and developing their ad units, YouTube more often than most, to remain safe and transparent for brands and avoid the deceptive perspective Facebook suffers from users having.
Google Ad Manager Antitrust Investigation Is Underway
Speaking of Google, and public perception moreso, Google Ad Manager might actually be up for some potential trouble.
The U.S. Justice Department has begun interviewing publishers and rivals in the advertising industry about Google’s control over “monetization of digital content.”
What originally began as an open scrutinization of Google’s third-party advertising tools has grown into a full antitrust investigation that has caught the attention of the Wall Street Journal.
As reported by WSJ last Wednesday, the DOJ has already reached out to the New York Times, Conde Nast, Oracle, Yelp and DuckDuckGo among a multitude of others.
Now as we alluded to earlier, the focus, or so it is reported, of this probing is Google Ad Manager; more specifically the combination of DoubleClick for publishers and DoubleClick Ad Exchange which were, according to SearchEngineLand, rebranded throughout 2018.
What’s under investigation from this is A) Google’s integration of it’s own ad server and it’s ad exchange; and B) Google’s decision to require advertisers to use Google tools to buy ad space in Google-owned YouTube.
What’s already being noted from the probe, by Wall Street Journal of course, is that major rivals are definitely contending that Google has too much power and that it is currently limiting the ability for them to compete.
Google is countering, however, that they are only creating a better advertising infrastructure and experience for customers that could only come from a merger.
Also noted by Greg Sterling, the contributor who wrote for SearchEngineLand, attention for this investigation has turned to the “buy side” of the business in the past two months which puts agencies in a delicate spot considering they use and rely on Google’s tools for day to day work.
In fact, we can even quote, “The deep integration of Google’s buying and measurement tools make it easy for agencies and in-house media buyers to transact across Google’s owned and operated properties, including its ad exchanges.”
While we, obviously, cannot speak directly to the investigation as is, we can say that Google is an important component of the work we do, the biggest marketing titan company in the digital industry, and something we will need to watch heavily moving forward.
On that note, we’ve now covered everything we wanted to for this week! To see our transcript, which comes with links to the resources we use to put these stories together, head on over to FindYourTailwind.com/blog. Until next week, I’m Bri Larkin,
And I’m David Ericson,
Thanks for listening.
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