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Edition #466
On what LLM ads could look like, Outbrain brings Moments to their publishers and who makes $1m/year on Substack?
As promised I put some thoughts down on what LLM advertising could look like.
I think the big variables in whether there is a whole net new ecosystem/platform does still come down to two variables, 1) how big each of them get with sustained usage. Alphabet, Meta & Microsoft are all exhausting the potential use cases and growth by implementing them in their own eco-systems. And 2) how the platforms think about their ad product and whether they invest for scale, in the product & training. Supporting small advertisers through to big advertisers.
The strategic rationale is around the cost, it is expensive to run these LLMs. An ad supported offering, maximizes reach of the platform, whilst capturing as much value as possible.
But give the piece a read, would love your thoughts/feedback. The other implication is that the platforms would probably need to pull together a few acquisitions to make them happen.
In messages I got some great feedback on the how brand studios can leverage ML & AI to drive performance. It really is a generalizable framework, which shows how anyone can build their own predictive models. The framework can be used for anyone that generates 7 figures in content revenue (whether through sales, licensing or advertising) runs a content studio or ad platforms, dealing with a lot of ads.
That’s enough AI for one opening, this week we saw Outbrain bring Moments, a TikTok like experience for their publishers, VSCO starting to sell ads and who makes $1m/year on Substack?
In the design story on Substack, they share the story of an advertiser who supported a couple of Substacks, only to be disappointed by the metrics. Metrics matter! Especially on email.
Notable stories this week
- Substack is design journalism’s irreverent new home.
- TikTok video for Open Web Publishers, Outbrain built it.
- TikTok’s Search Ads are live, but advertisers aren’t ready to reallocate those Google dollars.
- VSCO starts selling ads with Liquid IV Campaign.
- How Discord is laying the groundwork for ads to make as much revenue as subscriptions.
- You probably can’t make more than $1 million a year on Substack. But Matthew Yglesias does.
- Taylor Lorenz leaves legacy media and launches User Mag on Substack.
- Talk Tuah is expanding the conservative podcasting bubble.
- Attention Metrics ecosystem 2024.
- Why Storytelling will be the super skill of the AI age.
- Viant’s genAI tool could attract new pool of advertisers to the DSP.
- As Lyft’s Media Network matures, it’s adding more measurement into the mix.
- The Women who power the world of content.
- Down goes Oracle Advertising.
- Zip codes: The simple fix for advertising ROI measurement.
- Roblox is starting to take programmatic advertising more seriously.
- Newspaper entrepreneur builds Jersey Shore news empire.
- Apple rolls back its big plans to release movies in theaters.
- Attention measurement is progress for publishers like The New York Times.
- What do 9,000 Brand Lift studies teach us about attention & memory.
- Taboola partners with Jounce Media to tackle Made for Advertising.
- How Disney is nearing its goal to automate 75% of ad sales by 2027.
- The publisher AI adoption model.
- Reuters, CNN add website paywalls.
- [From us] What would LLM Advertising look like?
Deals/M&A
- Nielsen rival VideoAmp eyes sale.
- Contently acquired by Zax Capital.
- Equativ acquires Kamino Retail.
- Optimizely enters definitive agreement to acquire warehouse native analytics leader Netspring.
- OpenAI has acquired real time analytics Rockset.
- Fidelity has reduced the value of X by 78.7% bringing the valuation down to $9.4b.
Campaign of the week
View all 2024 best campaigns.
Smartest commentary
- “One of the hottest trends in advertising effectiveness measurement, especially with privacy concerns killing user-level online tracking, is geographic incrementality experiments. These experiments are cost-effective, straightforward and reliable, if done right.” –Rick Bruner.
Datapoints of note
- From LG. Brands incorporating a full TV experience – spanning CTV Video, Native ads, and Mobile Video – into their campaigns saw significant improvements in performance. Brand awareness increased by 4.7 times, ad recall surged by 8.7 times, and brand consideration grew by 11.2 times, all while reducing cost per visit by 23%.
- At 88% of ad impressions, programmatic most popular method for promoting ads on digital.
Events
- Watch this space!
View all 2024 datapoints of note.
That’s it for this week.
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