Hi! Welcome to the Advertising and Media Insider newsletter. I’m Lauren Johnson, a senior advertising reporter filling in for Lucia this week. If you’re new to this email, sign up for your own here. Send me tips or feedback at [email protected]
This past week, Lucia looked at Time magazine’s plan to expand into verticals like health and business and grow revenue from audio, video and events. Here are the main takeaways:
- With billionaire owners Marc and Lynne Benioff, the company is no longer under corporate earnings pressure or facing internal competition that other media companies often deal with.
- Time is a $US200 million company today and wants to grow into a billion-dollar media company.
- The company is going deeper into live events and exhibits as a way to drum up revenue from ticket sales and sponsorships.
Meanwhile, my colleague Tanya Dua looked at buzzy mattress brand Casper’s IPO filing that gives a glimpse into how direct to consumer brands are spending marketing dollars.
- Between 2016 and 2019, Casper spent nearly half a billion dollars on marketing.
- The brand’s nontraditional approach to marketing – including quirky subway ads in New York and pop-ups – increased Casper’s brand sentiment to 80%, according to data from Salesforce Social Studio.
- Casper hires influencers for ad campaigns, but cited them as a potential risk in its filing.
Tanya also reported on Microsoft’s attempts to win over retailers and take on Amazon with new tools.
Unlike Amazon’s pitch that centres around marketers selling items on Amazon, Microsoft is betting that it can help retailers make money from their own websites.
One tool called PromoteIQ allows advertisers to put ads in their storefronts while another tool lets retailers add a search bar to e-commerce websites that can be filled with product recommendations.
“Our $US8 billion search-advertising business – though small within the overall Microsoft context – is a pretty meaningful focus for us,” Rik van der Kooi, the corporate VP of Microsoft advertising, said. “As retail undergoes significant digital transformation, our intention is to leverage our technology to help our customers and partners, specifically in retail.”
Research firm Cowen released its annual survey of 50 advertisers, and it gives a peek into Amazon and Instagram’s ad business.
As I reported, Cowen affirms Amazon’s becoming a third big player for advertising behind Google and Facebook. Cowen expects Amazon to make $US17.6 billion from advertising this year, up 36% increase from 2019, and $US46.6 billion by 2025. To compare, the firm expects Google to make $US191.4 billion in advertising this year and Facebook, $US84 billion.
Stories is expected to represent 26% of Instagram’s ad revenue this year, or $US5.3 billion, and rise to 37% of its ad revenue by 2025, Cowen says. But while more advertisers are experimenting with Stories, advertisers are still spending the bulk of their Instagram ad dollars on newsfeed ads, the survey found.
Amanda Perelli, our reporter covering the business of influencers, dug into how much money creators get from YouTube videos depending on how many views a video generates. Her reporting shows how significantly YouTube’s CPM (or cost per thousand views) varies for creators:
- A video with 100,000 views can make $US500 to $US1,000.
- A video with 150 million views can make $US97,000.
Here are other great stories from media, marketing, and advertising. (You can read most of the articles here by subscribing to BI Prime; use promo code AD2PRIME2018 for a free month.)
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