Weekly Digital News Roundup: July 19-23
Google Results Show Struggle With Mobile
- According to the New York Times, Google reported second-quarter results that missed analysts’ expectations for revenue and profit. They showed that its desktop search business continues to slow and ad prices continue to fall as it struggles to make as much money on mobile devices.
- It is a vexing problem for every company that has generated revenue through advertising, be it a century-old magazine with a mobile app or a new Web site aggregating the news. Mobile ads do not command the premium that Web advertising does (and Web ads do not make as much as print ads).
- Mobile ad pricing is “one of the many factors at work” affecting click prices, said Nikesh Arora, Google’s chief business officer. Google is in the early stages of enhanced campaigns and it will most likely take a year for the results to become apparent, he said. In addition to enhanced campaigns, Google is doing other things to improve its mobile offerings and its profits from mobile ads. And it introduced its product listing ads, for shopping, to mobile devices. “It’s pretty easy to come up with ideas,” Larry Page, Google’s chief executive said, “It’s pretty hard to make them real and get them to billions of people. And that’s to me what’s so exciting.”
eBay’s EEMS Integrates Agency, Marketing Services
- According to MediaPost, sure to draw a few double takes from agency heads, eBay this week is rolling out the closest thing yet to a full-service digital agency offering. Headed up by its eBay Enterprise division, eBay Enterprise Marketing Solutions — or EEMS — plans to integrate a number of the company’s agency services and marketing product offerings, including ClearSaleing, e-Dialog, FetchBack, M3 Mobile, MBS, PepperJam Exchange, Silverlign and True Action.
- “We fully integrated our nine marketing product and agency services companies … into one organization,” Steve Denton, vice president of marketing solutions at eBay Enterprise, said Thursday. The group, Denton said, “is a new breed of marketing services dedicated to driving commerce marketing.”
- Over the past seven years, eBay Enterprise — then known as GSI Commerce — has developed its agency services and marketing products. With the help of eBay’s other divisions — eBay Marketplaces and PayPal — the newly integrated EEMS now hopes to simplify the marketing landscape for clients, according to Denton.
Mobile Targeting at Heart of Ad Tech Acquisition Spree
- According to Ad Age, the long-awaited ad tech consolidation picked up its pace this week, as four online ad companies — retargeting firm Criteo, ad targeter Media6Degrees, ad buying company X+1 and Yahoo — each acquired a mobile ad tech startup over the course of three days.
- Mobile ad tech acquisitions aren’t an altogether new trend. Google picked up mobile ad network AdMob in 2009, and Apple followed suit in buying rival ad net Quattro Wireless in 2010. But those deals were largely about being able to run ads on mobile. The recent spate is about getting closer to targeting mobile ads as though they were desktop ones. “Every ad tech company that’s good at the web has to get good at mobile,” said David Pakman, a partner at VC firm Venrock and investor in Media6Degrees.
- Desktop ad spending is expected to plateau at $35.4 billion next year then proceed downhill, according to eMarketer estimates. Mobile display ad spending, meanwhile, is on a steady upswing. U.S. mobile ad revenues increased by 111% in 2012 to hit $3.4 billion, according to the Interactive Advertising Bureau, and eMarketer expects mobile display ad spending to rise by 100% in 2013 and 54% in 2014. “Because big companies have not invested adequately to be the leaders they all want to be, now is a good time for them to acquire companies to allow them to catch up, particularly when they don’t have to pay huge numbers to get in the game,” said Jeff Green, CEO of online ad buying company The Trade Desk.