Ad giants tout strength despite warnings of economic chaos
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The digital ad industry is pitching its strengths to Madison Avenue this week in an effort to lure future ad dollars, despite economic and regulatory headwinds.
Why it matters: President Trump's economic policies present a significant threat to ad spend, causing analysts to reduce their forecasts and companies like Snap to withhold guidance.
The big picture: David Cohen, CEO of the Interactive Advertising Bureau which hosts the annual NewFronts event, kicked off this week's showcase on Monday with a reminder that change can benefit the industry. The digital ad spending sector grew 35% during the pandemic, from 2020 to 2021, he noted.
- "We need to remember that change — even massive, unsettling change — isn't always bad. We need to remember that the digital advertising industry was born from change, and it was born to change," Cohen said onstage at Google's Pier 57 office.
- "The faster things change, the more disruption is in our world, the more that digital grows. ... Now is not the time for fear. Now is not the time for hunkering down and short-termism," he added.
Zoom in: Snap chief business officer Ajit Mohan, who is presenting on Wednesday, told Axios that he views this NewFronts as a good time to be a challenger company and noted Snap's unique audience and improved ad platform.
- "When disruptions happen, there's always a good opportunity for challengers to ... remind advertisers that their current mode of putting a disproportionate amount of ad money on just a couple of platforms may not be the right answer," Mohan said.
- T-Mobile is also returning to NewFronts after hosting its first presentation last year as it invests more in ad tech with its acquisition of Vistar Media and Blis even as its telecom competitors retrench.
- "We look at the market and we see a tremendous opportunity," said JP Colaco, senior vice president and chief T-Ads officer for T-Mobile Advertising Solutions. "We're one of the largest marketers in the United States, so we're able to understand the pain points from a marketer's position."
Between the lines: Ad platforms shared how they are making buying easier for advertisers and innovating in the fast growing sectors of connected TV and retail media.
- Smart TV maker Vizio on Monday said it is making its ad inventory available on the demand-side platform of its new parent company, Walmart, to select advertisers.
- Also on Monday, LG announced more interactive ad formats, in partnership with BrightLine, and shoppable ad units with QR scans.
The intrigue: Google's hour-long presentation did not mention losing a federal antitrust case on online advertising, which sought to force Google to sell off part of its "network" ad business.
- Instead, Google repeatedly touted its dominance with its overall network and YouTube. Google shared ad updates including adding live inventory to its demand-side platform, Display & Video 360, and retail media solutions to YouTube.
- In a Monday filing, the Justice Department argued Google should sell two of its ad businesses.
- "The DOJ's additional proposals to force a divestiture of our ad tech tools go well beyond the Court's findings, have no basis in law, and would harm publishers and advertisers," Lee-Anne Mulholland, Google vice president of regulatory affairs, said in a statement to Axios.
What's next: Other presenters this week include TikTok and Meta. Next week, the legacy networks and streaming giants including NBC, Fox, Disney, Amazon, Netflix and YouTube will host their own events.
