As Brand Safety Concerns Grow, Marketers Taking Action

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In today’s digital environment, brand safety is more challenging than ever. From fake news to other questionable content, advertisers are being forced to be more careful and cautious in navigating their media supply chain.

Brands like Cisco and Sonos recently had to pull their ads given brand safety concerns and these are only two examples among dozens who have had to do similar in the last year. Interestingly, social media—where most of these issues have occurred—has also made it even more likely that brands appearing alongside unsavory content will be called out in real-time. Every miscue is now under the spotlight, instantly challenging a brand’s reputation. So how is the industry dealing with it?

To dive deeper into the state of brand safety, Oath recently partnered with Advertiser Perceptions to poll more than 300 U.S. ad execs about their concerns. Most are taking the actions necessary to ensure the integrity of their brands. But there’s more that can be done. Here are three critical findings every marketer should know.

Brand Safety Concerns Are Growing

According to the findings, the overwhelming majority of advertisers—99 percent—worry about whether their ads will appear in brand-safe environments. Additionally, 58 percent of advertisers are more worried about brand safety this year than they were last year. We’ve even seen that manifest at Cannes Lions, where some glamor was replaced with more sobering discussions about trust.

It’s up to ad platforms and media partners to win over the confidence of advertisers. Tech platforms—including demand-side platforms (DSPs) and exchanges—are most effectively addressing advertiser concerns. Seventy percent of advertisers feel that DSPs and exchanges do a satisfactory job dealing with these problems. A recent focus on vetting inventory—think high-quality content that is professionally produced—plus efforts to tackle fraud and viewability issues is having a positive impact. But advertisers are split when it comes to other media partners.

Fifty-one percent feel that social media platforms do a good job, while 45 percent think there’s space for improvement. What’s more, only 54 percent of advertisers feel that user-generated content (UGC) sites address their concerns, while 42 percent say they don’t. Clearly, social platforms have a lot of work to do given the nature of their inventory—UGC that is not developed professionally and often distributed without quality controls.

Brand Safety In Action

With brand safety now a major issue among advertisers, they’re having to change their programmatic buying strategies. Half of the respondents we surveyed say they’re pressuring their partners to screen for brand safety, while 45 percent are shifting their ads to premium publishers with good reputations. This has created a massive opportunity for high-quality media brands in their efforts to lure ad spend away from Facebook and Google.

Additionally, 40 percent of advertisers now use whitelists with programmatic partners, and 44 percent find blacklists to be an effective method. Whitelists and blacklists both use a combination of in-house and third-party tools to monitor where ads are delivered and prevent ad misplacement in advance. Across owned and operated sites, contextual targeting can also help prevent advertisers from coming in contact with unsafe content.

Lastly, of all the advertisers we polled for our study, only 3 percent say they have no actions planned to combat brand safety. With the way things are trending now, these advertisers might want to rethink their strategies so that they don’t run the risk of threatening their brand.

Partners Need To Lead

The big takeaway from our study: advertisers are concerned—and ad-buying platforms and media partners need to lead on brand safety. In order to minimize risk, partners need to take more reasonable and effective steps such as manual and automated vetting, installing whitelists/blacklist capabilities, incorporating pre-bid filter systems, bringing on third-party auditors and developing a comprehensive takedown policy. Social media networks have the most work to do because these channels mainly rely on user-generated content—making brand safety inherently challenging to manage.

Brands have never been more important and marketers spend billions each year to raise awareness and build brand love with their customers, but it only takes one misstep to change consumers’ minds. That’s why concern about brand safety issues has reached a fever pitch.

In this environment, content publishers and platforms will continue to feel the pressure to bear the responsibility to address brand safety concerns and provide effective solutions. The good news is that brands and agencies are sensitive to the problem and are grappling with it in a number of ways. It will be interesting to see how this growing concern about brand safety changes the advertising industry moving forward.

Jeff Lucas is head of Americas sales and global teams at Oath. In this role, he manages Oath’s sales teams in the US, Canada and Latin America as well as global teams including RYOT Studio and agency partnerships. Before his current post, Lucas was the vice president and global head of sales at Snapchat and prior to that served as the head of marketing & partner solutions at Viacom.

Opt-In Video Ads Could Help Fix AdBlocker Dilemma, Report Says

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Digital advertisers all face the same problem. As users become increasingly dissatisfied with the number of ads they’re shown online and on mobile devices, they download ad blockers to stop them from showing up.

A recent survey conducted by adtech company OpenX in partnership with the Mobile Marketing Association (MMA) and MediaMath shows that 80 percent of consumers feel overwhelmed by ads, with eight in ten considering ad blockers. That’s in addition to the estimated one in three people who have used them in the past. But fortunately, the study also provides a solution in the way of opt-in video ads.

Opt-in ads, also known as rewarded videos, let users choose to watch in exchange for something such as a discount coupon or digital goods. They’re primarily used in mobile video games where players receive in-game currency or other bonuses in exchange for watching an advertisement. These rewarded videos enjoy exceptionally high returns in terms of engagement and completion, but brands outside of gaming have been slow to adopt them.

The OpenX study explains that one of the reasons for this is some marketers believe that the opt-in ads only works for games, but testing across multiple app types shows that the ad format is ready to go beyond gaming and into other app categories like photography, social networking, music and dating.

This determination matches well with findings from video ad technology company Tapjoy, which reported an astounding 97 percent completion rate for the 30-second Ferdinand movie trailer when it was converted to a rewarded video and coupled with some interactive minigames. However, those trailers were found in existing mobile games, which already has a highly receptive audience.

The OpenX paper states, “They (consumers) expect to be valued for their time spent engaging with a brand, and they see the opportunity to do this with a variety of advertisers and in all sorts of app environments.”

According to the OpenX survey, respondents said that they were willing to watch 15-second ads for certain value exchanges such as retailer discounts, free streaming music or an hour of premium streamed video content, but advertisers aren’t necessarily limited to that standard. Over half said that they were willing to watch a full minute of ad content in exchange for a retail discount while 77 percent would watch a 30-second ad for the same reward.

The survey data also shows that mobile advertising in general, when done well, can deliver high brand recall among consumers, strong click-through rates and purchases. Additionally, opt-in ads are ranked significantly higher than other formats, including pre-roll, mid-roll, social/native or pop-up/interstitial advertising.

Despite how opt-in videos align with key KPIs, particularly viewability, marketers haven’t been eager to use them. Responses from over 100 global marketers found that opt-in videos were used the least while the most popular format was in-feed/native ads at 59 percent—even though the overwhelming majority agreed that rewarded videos deliver better consumer experiences and ROI.

The study concludes that consumers are ready for deeper brand engagement, and ads need to provide more consumer-friendly experiences, but marketers may still need more time to come on board with the opt-in format.

GSMA Announces Event Updates For 2018 Mobile World Congress Americas, In Partnership With CTIA

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The GSMA today announced several additions to the Mobile World Congress Americas event line-up, including new speakers in the conference program, additional participating companies and exhibition experiences, and new programs and events.

The show will take place in the Los Angeles Convention Center from September 12-14, 2018.

“With its new location in Los Angeles, this year’s event—our second in North America—shifts the focus to the intersection of mobile with content, entertainment and media,” said Michael O’Hara, chief marketing officer, GSMA. “This is an exciting and transformative time for the industry, as evidenced by recent merger and acquisition activities to create truly integrated communications providers. Mobile is becoming the preferred way of consuming entertainment content, and the 2018 Mobile World Congress Americas will convene decision-makers from across these industries to explore the opportunities and challenges in this new converged world.”

New Keynote Speakers Announced

The GSMA announced several new speakers for the Mobile World Congress Americas keynote program, with executives representing mobile, sports and entertainment organizations, including:

  • Dan Beckerman, president and CEO, AEG
  • David Christopher, president, AT&T mobility and entertainment
  • David Hagan, chairman and CEO, Boingo Wireless
  • Michael Sievert, president and COO, T-Mobile
  • Ronan Dunne, group president, Verizon Wireless
  • Rick Fox, entrepreneur, actor and former NBA player

These executives join previously announced keynote speakers:

  • Sunil Bharti Mittal, founder and chairman, Bharti Enterprises and chairman, GSMA
  • Meredith Attwell Baker, president and CEO, CTIA
  • Mats Granryd, director general, GSMA
  • Richard Plepler, chairman and CEO, HBO
  • Seleta Reynolds, general manager, Los Angeles Dept. of Transportation
  • Rajeev Suri, president and CEO, Nokia
  • Tim Baxter, president and CEO, Samsung Electronics North America
  • Marcelo Claure, executive chairman, Sprint and chairman, CTIA

In addition to the keynote program, the Mobile World Congress Americas conference will address an array of topics including 5G and next-generation networks; artificial intelligence (AI); sports, entertainment and media; immersive content; connected vehicles; the digital consumer; the Fourth Industrial Revolution; regulation and policy; privacy and security; sustainable development and smart cities, among others.

Recently confirmed conference speakers include:

  • Sameep Tandon, CEO and co-founder, Drive.ai
  • Lesley Young, global director, growth at Workplace, Facebook
  • Ronalee Zarate-Bayani, CMO, Los Angeles Rams
  • Soma Velayutham, head of global industry development, AI and deep learning, NVIDIA
  • Kevin Crull, chief strategy and business development officer, Sprint
  • Maryanne Morrow, CEO, SurgeXLR and 9th Gear Technologies
  • Angela Shen-Hsieh, director, predicting human behavior, Telefónica
  • Dr. Rosanna Chan, founder, Therefore
  • Molly Battin, EVP, global CCO and CMO, Turner
  • Nicola Palmer, chief network officer, Verizon Wireless

For more information on the conference program, including the agenda and keynote speakers, click here.

Latin America Media And Convergent Services Summit Confirmed

Inspired by recent consolidation activity in the industry, the Latin America Media and Convergent Services Summit will focus on the future of mobile and content distribution across the region, addressing key issues facing operators and the wider ecosystem, including innovation and investment, business cases and partnership opportunities for convergent services, and regulatory considerations, among others. Featuring keynotes, presentations and panel sessions, the Latin America Media and Convergent Services Summit will take place on Thursday, September 13.

The first speakers confirmed for the Summit include:

  • Tomas Genenari, executive vice president, Business Bureau
  • Martin Gallone, global digital director, Millicom
  • Rosario Ballesteros-Casas, founder and CEO, VR Americas
  • Michele Edelman, executive vice president, marketing and content strategy, Vubiquity

For more information, click here.

Additional Exhibitors, Sponsors Aand Partners Confirmed For 2018

The GSMA announced new participating companies at Mobile World Congress Americas including AT&T, NBC Universal and Spirent. These brands join previously announced companies including Accenture, American Express OPEN, ARM, Cisco, Dell, Ericsson, G+D Mobile Security, Gemalto, Google, Hewlett Packard Enterprise, IBM, Infosys, JMA Wireless, Mastercard, Mavenir, McAfee, Nokia Solutions, Samsung Networks, Sprint, Synchronoss, Syniverse, TELUS, Verizon Wireless, VMware and more.

On the show floor, country and regional pavilions will feature companies, products and services from around the world, including Canada, China, Finland, France, India, Ireland, South Korea, Turkey and the United Kingdom. Attendees visiting the pavilions will be able to explore and experience the latest cutting-edge technologies and innovations from the regions.

Another major exhibit floor attraction area is the IoT Zone, with interactive demonstrations and connected products from KORE, Microsoft, the Open Network Foundation, Pycom, Sitch Ai, U-blox and many other exhibiting companies. The IoT Zone will showcase the role 5G plays in the IoT, enabling connectivity across diverse, real-world applications for consumers and enterprises, including health and wellness, fleet management, autonomous vehicle experiences and more.

Also on the show floor, the NEXTech Zone will feature new and established companies that are disrupting today’s ecosystem including Asocs, Mimosa Networks, Sunitor, Syncleo and others. NEXTech will demonstrate the use of next-generation technology, such as AI, augmented reality, virtual reality and robotics, in everyday scenarios including in hospitals, homes and schools, to name a few. For more information on the Mobile World Congress Americas exhibition, click here.

Cisco has joined as the headline sponsor for the show’s IoT and 5G Industry Theme, while NBCU Code is the headline sponsor of the CMO Industry Theme. CBS Interactive, LinkedIn and the Wall Street Journal have signed on as official media partners for Mobile World Congress Americas, alongside Fortune. For more information on sponsors and partners, click here.

New Speakers, Partners For 4YFN Startup Event

Over the three event days, the 4YFN Startup Event will provide an opportunity to connect international startups, investors and large corporations. A highlight of 4YFN is the 4YFN Stage, which will host the startup and innovation program, startup pitching sessions, the exclusive investors networking program, 4YFN Americas 2018 Awards finals, and the 4YFN Talk Series.

The first 4YFN Startup Event speakers include:

  • Yossi Vardi, 4YFN event chairman
  • Edith Yeung, partner, 500 Startups
  • Michelle Klein, senior marketing director, North America and global, Facebook
  • Jonathan Perelman, head of digital ventures, ICM Partners
  • Dan Shiebler, machine learning modeling engineer, Twitter Cortex

Rivetz has been confirmed as the 4YFN Silver Sponsor; additional 4YFN partners include Boston Consulting Group Digital Ventures, Expert Dojo, Grid110, Qualcomm Ventures, Tech in Motion and Verify Investor. For more details on 4YFN, click here.

Updates For Women4Tech Program In Los Angeles

The Women4Tech program at Mobile World Congress Americas will feature a range of activities, including a speed coaching and networking session on Wednesday, September 12 and the Women4Tech Summit which will be held on Thursday, September 13. The GSMA announced several additional speakers who will be participating across the Women4Tech program, including:

  • Michelle Morris, vice president, global marketing solutions, Facebook
  • Hilary Gosher, managing director, Insight Venture Partners
  • Anarghya Vardhana, principal, Maveron

YoMo To Attract 6,000 Students And Educators

In its first year at Mobile World Congress Americas, the Youth Mobile Festival (YoMo) is set to welcome over 6,000 students and educators from across Los Angeles and Southern California to a major showcase featuring more than 500 hours of unique content designed to encourage studies and careers in science, technology, engineering, art and design and math (STEAM) fields. The GSMA today announced the first official YoMo partners for the Los Angeles event, including arc, Los Angeles Convention Center, Propel LA, Star Education and Think Together. The inaugural YoMo Los Angeles will be held September 12-14 in Kentia Hall at the LACC. For more information on YoMo, click here.

New Partner Programs Added To Agenda

The GSMA announced a number of new Partner Programs at Mobile World Congress Americas, including the IDE Drone Summit, the Sports and Entertainment Summit, and the SmartDeviceLink (SDL) Connected Car Developer Conference by FordDev. Additional Partner Programs will be presented by A10 Networks, AirFuel Alliance, ATrack Technology Inc. and VisTracks Inc., Award Solutions, CBRS Alliance, Circle, mGage and Vodafone. Spanning the three-day show, Partner Programs will be held both onsite the LACC in the Theater District in Concourse Hall, Level 2, and at the JW Marriott LIVE! LA hotel. To learn more about Partner Programs, including Power Hour sessions, click here.

Get Involved At Mobile World Congress Americas 2018

The official Mobile World Congress Americas Opening Party will take place on Wednesday, September 12 at 4:30 p.m. in the Networking Gardens of the LACC. For more details, click here.

Attendees can also participate in the MWC Americas Sunrise 5K Run in the heart of the vibrant L.A. Live entertainment district. The run will start at the LACC South Hall Entrance at 6 a.m. on Thursday, September 13. For more information and to register, click here.

More information on Mobile World Congress Americas 2018, including how to attend, exhibit or sponsor, is available here. Follow developments and updates on Mobile World Congress Americas on Twitter @GSMA using #MWCA18, on our LinkedIn Mobile World Congress Americas page or on Facebook. For additional information on GSMA social channels, click here.

About the GSMA
The GSMA represents the interests of mobile operators worldwide, uniting more than 750 operators with over 350 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organizations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.

For more information, please visit the GSMA corporate website. Follow the GSMA on Twitter: @GSMA.

About CTIA
CTIA represents the U.S. wireless communications industry and the companies throughout the mobile ecosystem that enable Americans to lead a 21st century connected life. The association’s members include wireless carriers, device manufacturers, suppliers as well as apps and content companies. CTIA vigorously advocates at all levels of government for policies that foster continued wireless innovation and investment. The association also coordinates the industry’s voluntary best practices, hosts educational events that promote the wireless industry and co-produces the industry’s leading wireless tradeshow. CTIA was founded in 1984 and is based in Washington, D.C.

Twitter Q2 Revenue Growth Credited To Video Ads And Fake Account Removal

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Twitter CEO Jack Dorsey began the company’s Q2 earnings call by highlighting its strong growth, but also the importance of the social platform and how it connects everyday users and celebrities together. Focusing specifically on moments in sports and athletes, Dorsey recounted how people use Twitter to talk about what’s happening and how the platform provokes conversation and catalogs defining moments in history.

“We see these types of moments every day. They bring us together when we agree, and all too often divide us when we don’t,” said Dorsey. “But they inspire us to do better and they provide the context for the action that we’re taking to prioritize the long-term health of Twitter over near-term metrics.”

Total revenue increased by 24 percent year-over-year to $711 million, driven by ongoing enhancements that improved ad relevance, which led to better ROI for advertisers. To put that into perspective, total revenue from advertising reached $601 million in the second quarter, an increase of 23 percent year-over-year.

Over half of ad revenues came from videos, which Twitter named as its fastest-growing ad format in Q2, and Dorsey said that the video website card brings performance and brands together, driving better ROI across all parts of the funnel. Video and livestreaming will remain top priorities for Twitter, with in-stream ads that allow advertisers to reach viewers at relevant moments. The company stated that it will continue to invest in better quality and performance for the experience while increasing the reach and engagement for content owners.

“We’re receiving positive feedback from customers about our efforts to enhance advertiser transparency and improve the health of the public conversation,” said Dorsey. He also noted that Unilever CMO Keith Weed, who called upon social platforms to take actions against fraudulent accounts, publically praised the company’s efforts to eliminate fake followers.

Twitter’s daily active users grew 11 percent year-over-year, but the removal of suspicious accounts led to a significant decrease in monthly active users, down to 335 million. The company credits much of the user growth to marketing and infrastructure improvements that make it easier for users to follow topics and events.

The system’s primary test came during the FIFA World Cup, which received over 115 billion impressions. In partnership with Fox, Twitter highlighted scores while surfacing relevant tweets in near real-time to the top of users’ timelines.

Twitter signed 50 new video livestreaming, highlight, Amplify and video-on-demand agreements in Q2, with 30 of them from international markets. Some prominent partners include ESPN, NBCUniversal and Viacom, and the company aims to bring hundreds more on board.

The company’s ongoing revenue priorities include nurturing new channels such as online video, ensuring that advertisers reach audiences when they are most receptive, and continuing to build trust with users by improving quality and transparency. The last point includes the formation of the Twitter Ads Transparency Center, which lets the public see who is advertising on the platform.

The platform is now removing twice the number of accounts that are in violation than it did last year, and in June, over 50,000 spammy sign-ups were prevented per day.

Dorsey said that the Twitter shifted much of its focus to behavior and conduct on the platform rather than content because improving the health of the public conversation is an important long-term growth vector.

“When we focus on removing some of the burden of people reporting, blocking or muting, we see positive results in our numbers,” Dorsey explained. He believes that as public discourse improves, users will be encouraged to stay with the platform while getting others to join.

Facebook Q2 Earnings Miss Expectations; Messenger Monetization Coming Soon

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Facebook reported second-quarter earnings of $13.23 billion, just shy of estimates. While the company treads water against a barrage of controversy and data concerns, Facebook turns to new monetization sources like messenger apps.

Saturation may have finally set in for Facebook users in the US and Canada, as illustrated by a lack of growth between the first and second quarters. Still, the site managed to boost its average revenue per user in all markets from $23.59 to $25.91 in US and Canada and from $5.53 to $5.97 worldwide.

Facebook reassured investors that they are investing heavily in data security—so much that it could negatively impact profits for the near future, CFO David Weiner warned.

The site recently added ad transparency tools such as labels that identify who paid for marketing and allowing users to view all ads served on a page, regardless of whether it was targeted to them originally.

Upcoming elections will be a “real test” for Facebook, the company said, adding that its already removed “thousands” of accounts and groups that violated Facebook policies.

In terms of monetization, Facebook stressed the importance of video a number of times throughout the call. Mark Zuckerberg said that features like Watch and just-added Watch Party are part of a wider initiative to create content that brings people together.

When asked where Facebook will turn next for monetization, Sheryl Sandberg indicated an interest in messenger apps. She said that Messenger has over 8 billion messages sent between businesses and users per month which includes automated messages.

“We’re being very slow and deliberate with monetization but I think we’ve launched some things that people are excited about like click-to-messenger ads,” said Sandberg on the investor call.

Sandberg indicated that they are “very focused” on WhatsApp as well, with more than 3 million people currently testing business solutions.

Instagram is growing at a faster rate than Facebook, and Sandberg sees this as an opportunity for brands.

“I think Instagram is both a direct response opportunity but [also] an opportunity for discovery,” she said. “The format is so visually appealing and people are telling stories with pictures. We see both anecdotally and in the data that this is a great place for people to become aware of a product in the first place.”

Brand Safety Institute Launches With Aim To Educate Digital Advertising Industry

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The Brand Safety Institute (BSI) is a newly launched initiative that offers certified training to advertising executives so that they can minimize brand risks while capitalizing opportunities. To mark its launch, the Institute prepared a white paper in partnership with the Trustworthy Accountability Group that outlines the challenges brands face in digital advertising while offering some tips on achieving “brand suitability,” which describes the marketer’s desired balance between content adjacency (brand safety) and viewability (ROI).

One of the problems with discussing brand safety is that it’s both a hot button and broad topic. As the report states, the term has come to describe everything from ad fraud to user experiences and appropriate content adjacency—the digital environments where ads can be found. While many use the term to describe the protection of a marketer’s brands, the report states that publishers have also said that inadequate controls in the advertising supply chain put their brands at risk too. At the same time, the broad definition has caused confusion among supply chain parties, some of which have shifted significant resources to ensure a sense of transparency.

To help clarify the topic the report interviewed over 20 company executives who work with the digital advertising supply chain to establish a more narrow definition of brand safety. In doing so, it allowed the report to discover newly used descriptions, isolate execution issues and understand how various companies see their responsibility with regards to the marketer’s brand safety.

The report established the following definition: “The term ‘Brand Safety’ describes the controls that companies in the digital advertising supply chain employ to protect brands against negative impacts to the brand’s consumer reputation associated with specific types of content, criminal activity, and/or related loss of return on investment.”

In creating the definition, several phrases were frequently used by respondents in association with brand safety. The most common were “association with criminal activity,” “negative press,” and “ad placement analysis.”

However, the report admits that some industry terms are subjective. For example, placing a brand adjacent to violent content may be viewed negatively by consumers, depending on the context. But at the same time, marketers understand that this kind of positioning may lead to better conversion results.

BSI advises having brand suitability standards, defined by the marketer’s tolerance of different content types, audience demographics and viewability percentages. But the challenge to implementing that kind of standard is that “execution is heavy on tools, light on understanding and knowledge.”

The paper makes two recommendations to help overcome brand safety challenges, which include appointing brand safety officers and pursuing safer targeting. Given how many of the challenges are based on risk tolerance, marketers should charge an individual with the task of pursuing quality control, preferably someone who is well educated on the topic.

As for safer targeting, the report refers to how the Media Ratings Council’s addendum to the 2012 Ad Verification Guidelines as a source of technical guidance, stating, “This at a minimum will start to standardize the tools used by practitioners of media buying.”

After having established a definition for brand safety in this survey, BSI will continue to co-publish future white papers that will focus on understanding brand safety practices across various areas of the digital advertising supply chain.

Advertising, Data Privacy Prominent In Users’ Social Media Dissatisfaction, Study Shows

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Users aren’t happy with social media. The American Customer Satisfaction Index (ACSI), which measures US customer satisfaction across multiple industries, released a report indicating that users are growing increasingly dissatisfied with social media platforms such as Facebook, Twitter and LinkedIn, which the organization names as having the least satisfied users.

The reason: the amount of advertising found on the platforms coupled with data privacy concerns.

According to “The ACSI E-Business Report 2018,” which surveys 5,169 consumers between July 18, 2017 and June 28, 2018, satisfaction with social media as a whole has dropped 1.4 percent down to a score of 72 on ACSI’s 100-point scale. This ranks social media among the bottom of the five industries the organization covers and the lowest of its three e-business categories, which includes internet news and search engines.

“Privacy concerns, bots and toxic online discourse have taken their toll on social media,” ACSI managing director David VanAmburg said in a statement, but those concerns are eclipsed by the number of ads users are presented with on these platforms.

He explains that even though data privacy remains an important topic for users, it’s “often in the back of their mind.” In terms of advertising, VanAmburg notes that “users don’t want to be inundated with ads while looking at pictures of their grandkids or watch a commercial before a YouTube video.”

Specifically, satisfaction with Facebook fell by one percent down to a score of 67, putting it near the bottom of the industry despite remaining as the largest social media platform in the world—a signal that user growth is slowing.

Facebook users ranked it as the worst when it comes to privacy protection, likely because of data scandals involving companies such as Cambridge Analytica, and the platform’s influence on the 2016 US Presidential Election. The social network has since been working to regain users’ trust by rooting out other potential privacy threats and working with Google, Microsoft and Twitter on a way to protect and transfer personal data between platforms. But most of all, users find advertisements on Facebook intrusive, with poor video and navigation speeds and stale content.

Similarly, the Facebook-owned photo-sharing platform Instagram saw a four percent drop to 72, driven largely by changes made to its order-feed algorithm, which haven’t been offset by feature upgrades such as Instagram stories. Despite being one of the most popular platforms for marketers, survey respondents said that the content doesn’t seem fresh, the site and video performance is poor, and the ads are too intrusive. However, the study does not take into account the recent implementation of IGTV, which could change things around for Instagram by letting users post longer videos.

Twitter saw a more severe drop in user satisfaction, falling four points to 66. Meanwhile, the Microsoft-owned LinkedIn platform gained two percent in rankings, tying it for last place alongside Twitter. Most other services including Tumblr remained static.

But not all social media platforms are doing poorly. Of the three services to gain points in the survey, Pinterest is named as the most satisfying social media platform, growing by three percent to 80. This makes for the second consecutive year the platform has improved, with its active user base doubling since 2015.

Unlike on most other social platforms, Pinterest users are more receptive to advertising. The report notes that even though most of the ads on Pinterest are content marketing-based, users state that it’s on par with Wikipedia, which has no ads.

The only other platform to see gains is YouTube, which rose one percent to a score of 75. Users enjoy the video streaming service’s speed and reliability, and they seem to have become accustomed to commercials appearing before their videos. It is unknown if subscription offerings such as YouTube Premium, which removes ads while providing access to additional content, will have a marked impact on user satisfaction going forward.

Google’s Q2 Ad Revenue Earnings Up 23 Percent

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Google parent company Alphabet, Inc. announced second quarter revenues of $32.7 billion, an increase of 26 percent YoY. Google stock rose four percent following the earnings call.

Unsurprisingly, Google’s advertising business accounted for a majority of revenue, reaching $28 billion in the second quarter—an increase of 23.9 percent YoY. Mobile search and YouTube were the main drivers of this growth, according to Alphabet, Inc. CEO Ruth Porat, adding that the company’s ad platforms are “firing on all cylinders” as they use machine learning to help marketers succeed.

Paid ad clicks on Google’s own sites and apps rose 58 percent YoY to $23.3 billion, the company reported, only a slight drop from the first quarter’s 59 percent growth. The amount of money Google receives on the average ad click fell 22 percent. Traffic acquisition costs accounted for 23 percent of ad revenue in the second quarter.

Reported second quarter income includes the $5 billion fine imposed by European antitrust regulators last week. Google was accused of forcing device makers to install its search engine and Chrome browser on Android devices. Alphabet plans to appeal the fine but the ruling forced the company to readdress how it handles its smartphone partnerships.

“There’s more work to be done, and it’ll become clearer as we go along,” Google CEO Sundar Pichai said during the second-quarter earnings call. “I’m confident we can find a solution that makes Android available at scale to users everywhere.”

The company’s capital expenditures jumped nearly double YoY to $5.5 billion, attributed to an increase of investments in data centers and facilities, as well as production equipment.

Non-ad businesses within Google earned $4.43 billion, compared to $3.09 billion a year ago. This total includes revenue from the Play Store, hardware such as Google Home speakers and Pixel smartphones and Google’s cloud computing platform.

 

Huawei Launch Pop-Ups Where Users Can Smash Their Old Phones

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According to Huawei Mobile, about 63 percent of UK consumers carry around outdated technology, manage poor battery performance or deal with similar nuisances. In response, the mobile phone maker has been hosting a series of “destruction booth” and “phone break-up party” pop-up events at select London stores as part of its recent “A Phone Anonymous” campaign and in support of the company’s P20 Pro smartphone.

At these events, users who are fed up with their phones are invited to come and select from an array of tools including baseball bats, hammers and sledgehammers. Then they smash their phones to bits, providing a more literal sense to the term “break up.” Not only did the events provide attendees with a much-needed chance to vent their frustrations and perhaps party alongside some local celebrities, but they walked away with brand new Huawei P20 Pros for free.

Locations for pop-up events were shared on social media and attendees were encouraged to share their smashing experiences using the hashtag #APhoneAnonymous. However, the public response to the chance to smash for a free phone turned out to be much greater than anticipated, forcing the phone brand to cancel its final destruction booth event at the last minute as the line grew ever longer. The good news is that there were no angry mobs reported, unlike the recent Build-A-Bear promotion.

Huawei Mobile launched its “A Phone Anonymous” campaign earlier this year with a study that found that short battery life, autocorrect text fails, lack of storage, poor reception quality and outright phone freezes were among the top complaints for consumers. In fact, respondents said that running out of battery at a crucial moment was more stressful than being late to a meeting or starting a new job.

As part of the campaign, Huawei Mobile opened a helpline for people who are sick of their smartphones. Consumers were invited to call “0800 020 9348” and get frustrations off their chests, presumably before their phones ran out of battery life.

Mobile AR Continues To Climb; Presents Challenge For Marketers To Integrate Into Existing Tech

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Mobile augmented reality is expected to earn $1.5 billion this year, outselling virtual reality games and creating opportunities for creative marketing. According to second quarter 2018 data released by SuperData Research, virtual reality continues to lag behind but Oculus Go sales look promising.

Pokémon GO, the game that kicked off an AR mobile movement in 2016, reached its highest monthly player count since 2016, SuperData noted. The world is still waiting for a new “killer app,” however, and developers are competing to make it. Apps using Apple’s AR platform, ARKit, grew 13 percent quarter-over-quarter, while monthly active users declined 11 percent.

AR has created a number of creative opportunities for brands, too. Social media platforms like Facebook and Snapchat have incorporated branded AR campaigns into their mobile apps. Facebook recently began testing AR ads that let users try on products like sunglasses and makeup, for example.

“AR is one of the most talked-about technologies, so branded AR experiences like IKEA Place have the potential to generate major buzz,” SuperData research principal analyst Carter Rogers said in a statement. “However, as the novelty wears off, consumers will be less willing to make the effort to download standalone branded apps.”

The key to continued engagement, Rogers said, will come by way of seamlessly integrated AR into existing sites and platforms.

Console gamers are still waiting for VR to take off, and so are developers, apparently. Sony’s PSVR had a lackluster VR showing during E3 and sold just 100,000 units in the second quarter, compared to three times as much during the same time last year. Microsoft, meanwhile, abandoned bringing VR to the Xbox One X entirely.

“Big developers either aren’t sold on the technology or don’t believe that investing time and resources in console VR content is worth the hassle… yet,” Superdata notes.

Facebook is taking advantage of the lack of competition, selling 289,000 Oculus Go headsets in the second quarter.

“Oculus GO is part of an important movement for XR [cross-reality],” SuperData Research’s head of XR Stephanie Llamas said in a statement. “Facebook sold more units of the standalone headset in its launch quarter than they did the Oculus Rift in the entire first half of 2017. Its price and convenience are proving to be selling points, but it will be up to them to create compelling content that keeps users engaged over and over again.”

SuperData predicts that the immersive technology market—which includes VR, mobile AR, Mixed and Augmented Reality headsets and 360 cameras—will reach $7.7 billion in 2018 and $30 billion by the year 2020.