Agency consolidation, is CTV "better"? and more...

Welcome to The Refresh, a weekly newsletter from AdTechGod and Marketecture. Every Thursday we’ll bring you the latest advertising news, commentary, and memes.

• Nielsen and TikTok launch cross media measurement (AdAge)

• Global advertising revenue Is recovering — except for linear TV (Hollywood reporter)

• Mars United CEO Rob Rivenburgh on selling to Publicis, and where Retail Media goes next (AdExchanger)

• 2024's Biggest Adtech Deals show the industry's shift to strategic M&A (AdWeek)

• Mirakl acquires AdTech company Adspert (Mirakl)

• LoopMe Acquires Chartboost from Zynga (Businesswire)

Omnicom & IPG Merger

The announced merger between Omnicom and IPG, forming a $25 billion marketing powerhouse, is a seismic shift in the advertising industry. This consolidation promises synergies and innovation, with $750 million in cost savings anticipated from back-office integration. The merger also brings new opportunities for leveraging data assets, such as Axiom’s capabilities, to enhance client targeting and personalization. However, it raises concerns about competition and the potential dominance of larger holding companies, which could further commoditize the industry.

While the merger might streamline operations and boost buying power, questions remain about its impact on clients, particularly small to mid-sized brands. With centralized decision-making, the nimbleness required to adapt to market changes could be compromised. Additionally, the increased leverage of these mega-agencies might squeeze publishers and smaller industry players.

Interestingly, this consolidation could catalyze growth for independent and mid-sized agencies. As larger agencies focus on their biggest clients, smaller advertisers may seek alternatives that offer personalized service and innovative strategies. The talent shifts resulting from the merger could also spur the creation of new agencies, fostering innovation and competition.

This development signals a pivotal moment in the evolution of the agency model.

(With guests from Check My Ads, Magnite and Silverblade Partners)
Listen to the Refresh Podcast

Google asks FTC to break up Microsoft's cloud deal with OpenAI, the Information says

Google has urged the U.S. government to break up Microsoft's exclusive agreement to host OpenAI's technology on its cloud servers, according to a report by The Information. The request followed inquiries from the Federal Trade Commission into Microsoft's business practices. Competing cloud providers like Google and Amazon want to host OpenAI's models to give their customers direct access, avoiding reliance on Microsoft servers. The report also highlighted concerns that customers using OpenAI's technology through Microsoft could face extra charges if they don't already operate on Microsoft's infrastructure. Neither Google, Microsoft, OpenAI, nor the FTC commented on the matter.

Ari’s View: This seems a little silly, the focus on the cloud hosting. The real issue is potential “round tripping” of revenue from the investment back to the cloud business. In a sense Microsoft is using its balance sheet to pay itself revenue.

Read Reuters

Linear TV = 6X ad Impressions of CTV?

On a shared chart from eMarketer, I received some great responses from industry experts about CTV advertising. The comments show a mix of views on its current state.

Reactions:

• Michael Gifis: "assuming CTV here excludes non-ad supported? don’t know about you guys… lots of holiday content streaming in my house… I don’t think we’ve seen an ad on the big screen in almost a week (or if we did, obviously it didn’t work)."

• Kris Johns: "The disparity between CTV’s viewing time and its share of ad spend presents a unique opportunity to maximize the potential of CTV. At AdGood Foundation, we’re addressing this gap by transforming unused CTV ad inventory into affordable, high-quality advertising opportunities for nonprofits. This approach not only amplifies the reach of vital causes but also helps to improve the balance in the ecosystem."

• Tal Ozery: "Very interesting graph. I am guessing it’s due to the fact that linear has ad breaks of 5-10 min, while most CTV holds pods of max 2-3 ads. Also, in terms of ad spent, it just shows that there [is] much potential to grow in CTV, and it’s still hasn’t been fully optimized."

• Scott Ensign: "I don't see this as a problem. There should be lighter ad loads with better targeting and more relevant messages in a streaming environment. Who is seeing those linear 'impressions' anyway? And how are they being measured? Ratings? The future should hold fewer ad opportunities with higher personalization. That is how younger cohorts will accept the value exchange of CTV and other critical channels. We don't need to pump more impressions through CTV."

The responses show varying perspectives but agree on one thing: CTV has room to grow and optimize its ad strategy.

Ari’s View: Football FTW.

See all the comments

Agency news is so HOT right now!

It’s getting harder to tell agency holding companies apart these days. Their big advantage- “scale” - isn’t what it used to be. With over half of media budgets running through tech platforms, affordable digital talent everywhere, and AI doing more of the heavy lifting, the era of 5-6 dominant holding companies is fading.

As the big guys merge, there’s a growing lane for mid-sized and independent agencies to shake things up.

Ari’s View: There’s no amount of agency news that will ever get me to care. I’m a tech guy, and these are not tech companies.

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