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If Perplexity wants to make a mark on advertising, Andrew Beck will be one to watch.
As head of business development, he’s been at the forefront of convincing advertisers (so far) to buy in — a task he took on just months before the company began selling ads around its search results.
And what a task it is: leading the AI startup’s bold attempt to challenge Google’s auction-based ad system, where marketers bid for sponsored links against search queries. Instead, Perplexity’s model lets marketers sponsor questions, generating AI-produced answers approved by the advertiser. The twist is its reliance on CPMs over CPCs, an unexpected approach for an AI-powered search engine.
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Both a boon of opportunity but also the bane of most media folk that have to immediately snap out of holiday mode and head to Las Vegas, CES is again upon us. With each passing year, CES becomes a more important staging area for agencies and ad-tech firms to not only learn what’s just around the corner but also to showcase what they’ve assembled.
Tech, in its various guises, is rapidly becoming a differentiator among both holding companies and independent media agencies alike. And tech is what’s helped power French agency holding company Publicis to the forefront of its holdco brethren — at least by the gauge of financial results and stock performance.
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Several new ad networks joined the bevy of existing (and growing) retail media networks last year with new terminology to match: financial media networks, travel media networks and, as of just last month, the (allegedly) first real estate media network (Re/Max). Ah, 2024, the year that nearly every brand (well, every brand that hadn’t yet done so) realized the potential of an ad network. The thinking seems to go, if everyone else has one — and they’re getting the additional revenue from ad dollars — why shouldn’t my brand have one too?
Re/Max aside, the bulk of 2024 ad network debuts took place during the first half of the year (Chase, Revolut, United Airlines, Expedia, T-Mobile, Costco). The second half was quieter for new entrants (PayPal, Grubhub, Thrive Market), but many of the existing players beefed up their capabilities. Walmart finally finishing its Vizio acquisition was likely the biggest example of this. Could it be that all of the brands that were setting up their ad networks had already done so? Have we finally reached peak ad network?
“While the pace of new ad network launches has slowed, it is unlikely that we have fully reached ‘peak ad network,’” surmised Jim Misener, president of creative consultancy 50,000feet. “Instead, the market is likely entering a phase of consolidation and specialization.”
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