Issue #28: Major advertiser plans to reduce PPC spend while YouTube soars

☕ Hello there adtech alchemists

Pick-up a Columbian espresso and take a look at the top stories from this week so far.

🗞️ Top Stories

1. Money Super Market to double down on social and loyalty

   Facing 20% higher PPC costs, the group is shifting budget to its Super Save Club and social channels to boost ROI. Marketing Week

2. AI powered ads to propel media to $3.5trn by 2029

   PwC is reporting that by 2029 digital formats will command 80% of ad revenue and CTV alone $51 billion as AI fuels growth. Reuters 

3. Ofcom tells YouTube to boost UK public service channels

   A new action plan warns public service content is “endangered” and urges urgent algorithmic priority to safeguard UK media visibility. The Media Leader 

4. Mantis plugs AI contextual targeting into PubMatic

   The new partnership lets buyers access nuanced, brand safe segments at scale through PubMatic’s Connect marketplace. ExchangeWire 

5. DoubleVerify brings attention metrics to Snapchat ads

   DV Authentic Attention for Social lets brands track granular, in-app engagement on Snap, marking DV’s first launch on a social platform. ExchangeWire

6. YouTube ads revenue grows 13% to $9.8 billion

   Alphabet’s Q2 beat shows advertisers funnelling budgets toward YouTube as it continues to win Connected TV ad spend. TechCrunch 

💭 60-Second Take – YouTube’s CTV surge provides ad revenue lift in latest earnings report

Alphabet’s Q2 report shows YouTube ad revenue jumping 13% year on year to $9.8 billion, fuelled by YouTube users leaning more into big screen viewing and the platform taking an increasingly large share of CTV budgets.

• CTV share: Nielsen’s April stats puts YouTube at c.12% of all US TV viewing, its highest share yet and three straight months at No. 1

• Budgets follow consumers: Market data from May reveals brands now direct c.40% of YouTube spend to TV screens, overtaking mobile and almost doubling last year’s share across devices

• Big screen cost arbitrage: One further driver of the increasing CTV share is the YouTube CPM rate, typically around c.$6-10 CPM vs more competitors like Netflix charging c.$30-40 CPM

• Competitive heat: Netflix, feeling the squeeze, informed investors it will double ad revenue in this as it races to match the scale that YouTube offers

With viewers and budgets shifting to Connected TV, YouTube is truly establishing itself at the the top of the streaming pecking order. Advertisers that still treat it YouTube simply as digital video risk missing out on new “prime time” viewing dynamics.

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See you next time,

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