TikTok left the boat dock; DirecTV’s ad is back in the game

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TikTok rocking the boat

TikTok advertising budgets have gone from experimental to critical overnight.

Brands are rapidly increasing their TikTok budget. This is why TikTok expects its advertising revenue Three times this year From 12 billion.

Buy-side platforms are also preparing for the short-form video shift, as TikTok “grew like a weed” last year, System 1 CEO Michael Blend told investors.

Many brands that you wouldn’t expect, such as Ollie’s Bargain Outlet, announced TikTok advertising costs for the first time this year – “which I never thought I’d say out loud,” the discount chain CEO said during his earnings call. Other brands that are raising costs across the vertical include Vera Bradley, Abercrombie & Fitch Pizza Hut, Internal Report

Digital costs are already on the rise as linear TVs shrink. TikTok holds a debt on direct competitors – severely hampered by Apple’s new AppTrackingTransparency privacy measures, its front-runner meta-in-app SDK integration and reliance on a network integrated with site pixels. Unlike Meta, TikTok did not build its advertising business long before its introduction.

But TikTok’s biggest advantage may be its penetration with a younger audience. The platform beats Instagram to the popularity of Gen Zers and is a powerful place for brands to tout celebrity sponsorships and keep their products in the hands of influential people.

Direct to the point

DirecTV named Amy Lifer as its first-ever chief advertising sales officer.

DirecTV exited AT&T last year, although AT&T held a 70% stake.

As an independent company (Wink Wink), DirecTV may be committed to its video streaming service and its own unique advertising offerings, including new leadership to boot. Another example: One month after the departure of DirecTV AT&T, the company launched DirecTV Stream, a live TV and on-demand video service.

“The team has obviously been doing other things over the last few years,” Leffer said Adweek. “But what we’re really excited about is bringing that focus back to DirecTV and leading our data-driven products and portfolios.”

DirecTV’s advertising business collapsed as AT&T packaged AppNexus with its own AdWorks addressable TV unit. Leifer, who has worked for the same company under three different business names (AdWorks, WarnerMedia and Xandr), is well aware of this change.

“Amy has a unique idea about the advertising market,” said Bill Moro, CEO of DirectTV, in a statement.

Spoon con

Small sellers on Amazon are fighting to break Amazon’s results page.

A survey of over 900 online sellers Institute for Local Self-RelianceA local business advocacy group leads to a growing tide of frustrated companies that are boxed out of Amazon search, even when buyers explicitly search for their brand or product.

These sellers are forced to participate in the Amazon Marketplace and Amazon Advertising because Amazon controls much of the online shopping market, and organic traction on Amazon is not possible without parallel payment media investment.

At Amazon, sellers must compete with big brands with deep marketing pockets. They face Amazon’s private-label brands. Clean enough.

But Sponsored product placements have completely taken over Amazon Feed. Three years ago, two of the top 10 products listed on Amazon results were sponsored. A year ago, it was 40%. It could be half now.

Wherever Amazon-owned brands compete, they always sit “organically” at the top of the charts, breaking into open search space is almost as difficult (and expensive, at the expense of advertising) as breaking through the App Store’s top download charts.

But wait, there’s more!

Verifying the fate of advertising technology in the public market. [Digiday]

Amazon workers in New York have voted to form the company’s first U.S. workers’ union. [WSJ]

Google’s test for cookie replacement may be hampered. [Ad Age]

Big hugs to annoying companies that actually help people. [NYT]

You got hired!

Olivia Mills joins Claravine as Senior Manager of People and Culture. [release]

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