Digital Ad Spends Decline 2% YTD Amid Inflation

Inflation has been hitting virtually every single industry quite hard. For a time, digital ad spends seemed like they were immune to the effects of inflation, and they managed to grow as a proportion of total ad buys to 59% with all things having been considered and taken into account. In spite of the fact that this is the case, inflation has finally hit the digital ad market as well, with the market recording a 2% decrease in ad buys year to date.

This data comes from a recent analysis conducted by the Standard Media Index, and it revealed that the overall ad industry is in dire straits. With all of that having been said and now out of the way, it is important to note that the 2% decline seen in digital ads is still better than the 6.9% decrease across the entire ad market, and that seems to suggest that digital ads are overperforming when compared to other forms of marketing.

This seems to suggest that digital ads are doing better than might have been the case otherwise, although this segment is still appearing to run out of steam. The worst hit form of digital ads is that of digital video, which registered a staggering 9% decline in the same period.

Paying attention to these trends is important because of the fact that this is the sort of thing that could potentially end up determining the direction in which the industry might be headed. However, it should also be mentioned that 2022 was a unique year in that it had the Winter Olympics, which necessitated an increased number of ad buys among media agencies.

All in all, the turmoil that is being caused by rampant inflation doesn’t look like it will be abating anytime soon. It will be interesting to see if 2023 indicates any further declines. If that were to occur, the future of the industry could look very different than what it does right now, and many major companies relying on ad revenue will need to look for other sources lest the inflow of ad buys dries up even further.

H/T: Mediapost

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by Zia Muhammad via Digital Information World

TikTok Takes the World by Storm Among Grown-Ups

TikTok, the famous social media app, has rapidly gained fame among grown-ups worldwide, according to a recent analysis by DataReportal. It analyzes the estimated number of TikTok consumers aged 18 and above in different parts of the world and identifies the locations where this app is the most widespread among adults.

As per the analysis, the US tops the list with approximately 114 million consumers, aged eighteen plus. This list was further followed by regions, such as Indonesia, Brazil, & Mexico, with a total of 110, 82, and 58 million documented consumers respectively.

Other countries where this app is popular among grown-ups include Russia (55 million consumers), the Philippines (43 million consumers), and Thailand (40 million customers). The report also highlights the impact created by this platform on various countries.

According to it, the greatest influence of this app was on Southeast Asia regions, such as Indonesia, Vietnam, & Philippines. Approximately, this platform impacted over 200 million individuals in these areas.

The popularity of TikTok among grown-ups can be attributed to several factors. For one, its algorithm provides personalized recommendations based on the customer's viewing history, making it easier for users to find content that aligns with their interests. Additionally, the short-form video format has proven to be a hit with adults who prefer to consume content in bite-sized portions.

Moreover, the prime focus on user-generated information has made it a platform for creativity and self-expression, with members from all walks of life showcasing their talents and sharing their experiences. This has created a sense of community on the platform, with users engaging with each other's content and participating in challenges and trends.

The COVID-19 outburst has also contributed to TikTok's popularity among grown-ups, as many turned to the platform for entertainment and distraction during lockdowns and social distancing measures. With the pandemic still ongoing in many countries, its popularity is likely to continue among adults in the foreseeable future.

In addition, two major giants, India & China are out of this race as they are not consuming this application to a greater extent. The Chinese are using a local version of this app, which is only designed for them, whereas, due to ban regulations, the consumption of this platform is prohibited in India.

To sum up, TikTok's rise in popularity has not been without controversy. The platform has faced scrutiny over issues such as data privacy and security, censorship, and the spread of misinformation. In response, the organization has taken measures to address these concerns, such as establishing a content moderation system and partnering with third-party fact-checkers to enhance their application towards perfection.

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by Arooj Ahmed via Digital Information World

Twitter Could Give Free Blue Badge Verification To 500 Advertisers And Leading Media Outlets

Twitter is ramping up its efforts to ensure users on the app are verified as the company says it’s one of the major means through which it can keep a check on bots on the app.

Just last week, we saw Elon Musk announce more exclusive features for Twitter Blue Subscribers. The tech billionaire was also seen speaking about how he would be excluding non-paying members from taking part in polls.

And today, we’re hearing the company impose a striking $1000 verification fee for companies using the app. But it’s not that bad because the top 500 advertisers would be attaining it for free. The same would be the case for those companies who are deemed to be a part of the 10,000 most followed firms out there today that attained verification in the past.

The news was confirmed through an internal document that was published by the New York Times today. Therefore, all such accounts that do end up buying verification would now be going through reviews to make sure they were not taking part in any form of impersonation behavior.

The charge in pricing for various firms may actually cause a huge impact on the tech billionaire’s marketing plans. Remember, verification badges are integral tools for firms as they help to establish legitimacy and great credibility on the app. In the same way, they’re serving as indicators of accounts being authentic and assist in developing trust with audience members too.

So if the platform does end up charging this fee for verification, it might make things all the more difficult for those brands that are startups or working on smaller scales to get the badge. And in the end, it would really cause a downfall in their followers who wouldn’t want to engage with them further, assuming they’re unreliable.

But seeing Twitter make these big exceptions for leading advertisers means it can create playing fields that just aren’t even. So many smaller companies would suffer and be overshadowed by the bigger ones.

Twitter made it very clear in December of last year how it would remove its old standards of verification and say hello to newer subscription plans that were paid called Twitter Blue. These old badges are going to be removed on April 1 and the latest update on this front is how many top media outlets claim they’re not interested in joining Musk’s bandwagon.

To help prevent them from feeling left out, Musk has planned to offer them free Blue Verification as mentioned in a new report today.

It’s all thanks to CNN reporter Oliver Darcy who posted through his account on Twitter that the app was going to give leading media firms the verification for free. It’s interesting how these changes are coming when Darcy pointed out that the NYT was a part of those who did not wish to pay any additional monthly fee for the Blue Badge on the app.

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by Dr. Hura Anwar via Digital Information World

Google Reorganizes Its Assistant Team To Direct More Focus On Its AI Chatbot Bard

Google is in no mood of taking a back seat in the AI race as other competitors including OpenAI and Microsoft continue with their winning streaks.

The leading search engine giant is now rethinking its planning and strategies including a complete reshuffle of its entire virtual assistant division that is dubbed Assistant.

The goal is to put more emphasis on its AI-powered chatbot called Bard which may not have gotten the praise and fame that its makers had hoped for. Bard is Google’s answer to innovative AI chat technology.

The news comes after a recent memo was sent out to employees on Wednesday that came with the title, ‘Changes to Assistant and Bard Teams’. Here is where the VP for the company’s Business Unit was seen highlighting some major shuffles to the company which delineated how strongly it planned to focus on Bard.

The memo also sheds light on some changes regarding people leaving the firm for personal reasons and how such shakeups would pave the way to more innovation and different strategies related to Bard.

Those being boarded on as replacements include veterans at Google with 16-year experience including Peeyush Ranjan who overlooked the firm’s commerce department including its payments.

Google says that the teams working at Bard are all the more hopeful that this product has what it takes to stand against other competitors and by working further on its systems and providing better execution, it can create the right kind of impact for users.

• Also read: SEOs Say Bing Chat is Better Than Google Bard

Remember, Google Assistant is the name given to AI-powered VR software apps which possess language processing capabilities that are quite near to that of iPhone maker Apple’s Siri and Amazon’s Alexa.

It’s commonly seen on mobile phones as well as other tech devices of home including the Pixel phone and Nest Speakers. Similarly, you can find it in smart display screens, televisions, watches, and vehicles as well.

This new leadership continues to bring about change and it suggests that the organization is making huge plans on combining Bard’s technology into a wide array of other smart products in the near future.

Just last week, we saw Android maker ChatGPT mention to its competitor Bard how this entire ordeal was a trial and they were conducting tests in places like the US and the UK. This was right after we saw a report by CNBC mention how the firm was pulling out members across several divisions so it could put greater focus on Bard after being called Code Red.

Read next: FTC Receives Complaint Against OpenAI’s ChatGPT For Violating Rules Against Deception And Unfairness
by Dr. Hura Anwar via Digital Information World

FTC Receives Complaint Against OpenAI’s ChatGPT For Violating Rules Against Deception And Unfairness

A non-profit organization has launched a complaint against OpenAI’s ChatGPT with the FTC.

CAIDP which is known for advocating its non-profit behavior mentioned in a recent statement how the AI-powered tool was breaking rules left and right that had been set up by the FTC. These rules had to do with unfair treatment and deception.

They called out the makers of the firm for engaging in such behavior and felt it was the right time that the world took notice before it got too late.

This news is breaking because this is the first time that we’re hearing some organizations come forward and make such huge claims against the leading AI firm that has been revolutionizing the tech industry for a while now.

Moreover, the news arrives at a time when we saw big names from the tech industry join hands and offer signatories for an open letter that was directed at top AI labs. The letter called for a temporary pause regarding the training of AI systems that were more powerful than GPT-4 technology.

This complaint was directed toward the Commission to begin an investigation into the matter and see how the latest generation of GPT-4 technology violates the FTC Act. Furthermore, the section explained how there was more guidance on offer about how AI should be run in the country so that it’s a useful endeavor and not one that ends up wreaking havoc and stealing credit from those who have worked hard over the years.

The complaint did not hold back in terms of revealing what it really felt about the matter. And that includes some harsh words to describe how the technology continues to deceive, manipulate, and carry out biased actions on a whole new level. It was also deemed to be a huge hazard to public safety and well-being as well as users’ privacy too.

Quoting OpenAI itself, CAIDP pointed out how the tool can worsen the already annoying trend of misinformation that so many tech giants are failing to control. So the last thing that the world needs right now is a proliferation in this regard.

OpenAI warns that the public is in danger through the hands of AI systems as they can reinforce whole ideologies and truths with untruths while cementing them.

The complaint similarly was seen ripping into ChatGPT’s makers for not carrying out necessary safety checks that are designed to protect the public.

Read next: Study shows, the majority of TikTok users do not appear to find the ads to be an issue
by Dr. Hura Anwar via Digital Information World

Study shows, the majority of TikTok users do not appear to find the ads to be an issue

TikTok is the tech giant created by Zhang Yiming, and it has grown to be a vital primary workplace for many content producers all over the world. The fact that this platform offers a number of ways to generate money, including advertising, has made it one of the most well-known social networking applications and attracted a lot of attention from content creators.

If you're looking to drive visitors directly to your account, advertisements might be highly beneficial. Users are not the only ones who benefit from this advertising option; several firms looking to expand their reach also gain from it in a variety of ways.

Nonetheless, some people still appear to find these advertisements annoying. To learn more about it, Statista recently polled 3,663 TikTok users out of a total of 9,992 individuals. It took place in January through December of 2022.

For those who may not be aware, the CEO of this social networking app was overblown with accusations in a congressional hearing on March 23, 2023. U.S. lawmakers alleged that TikTok is linked to the CCP, even though it doesn’t gather any less data than those U.S. based companies. This might be interpreted as the beginning of a Cold War.

To find out how many people are interested in these adverts and how many are bothered by them, the respondents in the poll were given a variety of alternatives. The research revealed that the vast majority of consumers do not mind advertisements, in contrast to TikTokers from the United States who are dissatisfied with this.

According to the study's findings, 38% of users and 34% in total said they are not easily upset by these ads unless they receive free content in exchange. Yet, as indicated by the percentages of 15% and 12%, respectively, many consumers selected the statement that they frequently struggle to distinguish content from advertising.

Moreover, a large number of consumers (28% of users and 18% overall) actually made purchases from the things they saw in TikTok commercials from various celebrities and influencers. And finally, the last option where 18% and 13% of those surveyed never mind when businesses utilize their personal information for advertising purposes.

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by Arooj Ahmed via Digital Information World

Consumer Spending on Mobile Games Drops 5% Despite Record Breaking Downloads

The mobile gaming industry seemed unstoppable after ten years of nonstop growth, but in spite of the fact that this is the case, the coronavirus pandemic threw a wrench into the works. This created inflation as well as widespread economic turmoil that made growth far more difficult than might have been the case otherwise. Furthermore, user targeting became harder than ever before, which decreased the value of mobile gaming companies around the world.

With all of that having been said and now out of the way, it is important to note that mobile gaming downloads just reached an all time high of 89.7 billion. However, despite the record breaking number of downloads, consumer spending on mobile gaming apps decreased by 5% year over year. This seems to suggest that consumers aren’t spending as much money as they used to on mobile games, even though they are downloading them with a higher level of frequency.

One thing to mention here is that the pre-pandemic highs still pale in comparison to 2022’s totals. Back in 2019, consumer spending on mobile games hovered at around $86 billion. On the other hand, gaming apps earned approximately $109.5 billion in 2022.

While this is still roughly half a billion dollars lower than the numbers seen in 2021, it is still a massive $23 billion increase from 2019 with all things having been considered and taken into account. Additionally, a number of individual games such as Genshin Impact are setting new milestones in terms of earnings. Genshin Impact’s lifetime in-app purchases crossed $3 billion in the second quarter of 2022.

Gamers are clearly willing to spend billions on the games of their choice. What’s more, much of the growth in downloads was driven by hyper casual games which are not known for in-app spending from consumers because of the fact that this is the sort of thing that could potentially end up driving away users.

It will be interesting to see if this minor dip continues through to the next year. Even if that occurs, the gaming app industry seems fairly secure in its prospects.

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by Zia Muhammad via Digital Information World