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Edition #441
Dull advertising, overexposure and the space economy.
Overexposure and dull ads. Two topics that don’t come up often but are in this weeks note.
Edward Cotton shared:
“Working with System1 data, Adam showed that 75% of ads in System 1’s US database could be classified as dull, doing the math to calculate how many $ are being wasted, he emerged with the figure of $46 billion.“
His takeaway was that it “fires off a warning to those in the industry concerned about the commoditization from advances with AI; if 75% of advertising is dull and people are OK with that, we are talking about AI potential shrinking the business to 35-25% of its current size.”
Wow yeah. That’s probably the most profound thing I’ve read this week.
The other story was about overexposure, which is nice framing. People talk about frequency capping, but they mean is overexposure, but you also want to solve for underexposure. It’s a turn of phrase but I think one that gets lost in the frequency capping, I think people more think about being annoying, versus what is the right level of exposure.
Notable stories this week
- Desperate for credit, content marketers get creative with ad space.
- Razorfish launches in-house creator offering as agencies grow content practice.
- Companies can now promote member content with LinkedIn Thought Leader Ads.
- Reddit introduces a new native ad format that looks similar to posts made by users.
- Reports of spotty ad performance on Meta recently.
- A new chapter for Sports Illustrated.
- Jamie Quint on how Reddit is a behavioral ad platform.
- BBC develops AI plans and talks to big tech over archives access.
- MrBeast to take a game show to Prime Video.
- Gale debuts generative AI platform for media-buying.
- OpenAI’s deals with publishers could spell trouble for rivals.
- A ‘server anomaly’ that made it look like some advertisers were bidding billions of dollars sent the adtech industry into chaos.
- Snapchat & Lumen Research release global rich media attention measurement solution.
- Yahoo to drop headcount in its adtech business 50%.
- New York’s MTA enables programmatic across its entire DOOH Network.
- Advertisers don’t see new immediate value in Snapchat’s ad offerings despite its brand marketing campaign.
- News podcasts and ad buyers have yet to see a presidential election year ad spend bump.
- Sprouts of Hope in a Gloomy Media Landscape.
Deals/M&A
- Vox Media offloads Outsports to Q.Digital.
- Condé Nast to reap $1.4b windfall in Reddit IPO.
Campaign of the week
- Intelsat with Economist, what better place to talk about the space economy.
View all 2024 best campaigns.
Smartest commentary
- “If 75% of advertising is dull and people are OK with that, we are talking about AI potential shrinking the business to 35-25% of its current size.” –Edward Cotton.
Datapoints of note
- Avg email subscriber receives 3,650 emails/month.
- In early testing of the new format, Reddit found that free-form ads outperform all other ad types in average click through rate (CTR) by 28%, along with increased community engagement when comments are enabled.
- On Spotify, in 2023, 328k songs were streamed over a million times. And to rank in the top 100k, need 4m streams/year.
- Leveraging AI, Coca Cola is seeing 10-30x faster concept iteration cycles, 38% higher audience testing scores. Source.
- Lumen and Snapchat proved that 1 second of visual attention per impression is correlated to a 20X increase in ad recall, a 3x higher chance to drive outcomes, and that Snapchat augmented reality lens and commercial ad formats have a 40% lower cost of attention compared to other formats.
- Working with System1 data, Adam showed that 75% of ads in System 1’s US database could be classified as dull, doing the math to calculate how many $ are being wasted, he emerged with the figure of $46 billion.
- Approximately 65% of campaigns experience overexposure, primarily affecting a small subset of users.
- Spotify shares who has the most amount of followers. Joe Rogan pops in at 14.5m.
View all 2024 datapoints of note.
That’s it for this week.
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