IAB, ad groups protest Calif.'s proposed opt-out rules | Pandora courts advertisers with host ads, custom content | Budget-savvy consumers turn to social media
October 30, 2020
IAB SmartBrief
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Top Story
IAB is among industry groups that have signed an eight-page letter to California Attorney General Xavier Becerra's office protesting the addition of proposed opt-out regulations to the state's privacy law. "The proposed online and offline modifications unreasonably limit consumers' ability to access accurate and informative disclosures about business practices as they engage in the opt out process," the letter states.
Full Story: MediaPost Communications (10/29) 
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Marketing Trends
Pandora is enticing brands that want to tap into the booming audio listenership demographic by bolstering its podcast library and host ad opportunities and co-creating branded content. In this interview, Pandora Vice President of Ad Innovation Strategy Claire Fanning says, "We're going to look to be more prescriptive around how advertisers take advantage of this space in a way that I think has really only been available in more visual environments."
Full Story: Adweek (tiered subscription model) (10/28) 
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Budget-savvy consumers turn to social media
Mediahub research shows that budget shoppers include more men, parents, millennials and affluent consumers. Many use TikTok, Twitter and other online communities for ideas, reviews and even purchases.
Full Story: MediaPost Communications (10/28) 
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Mobile Focus
Twitter said that integrating mobile privacy rules has caused it to delay other changes, such as an enhanced direct response format for advertisements. The social media platform added only 1 million users last quarter, significantly fewer than analyst predictions, but increased ad revenue by close to 15%.
Full Story: The Wall Street Journal (tiered subscription model) (10/29),  BNN Bloomberg (Canada) (10/29),  Deadline Hollywood (10/29) 
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Company Watch
Alphabet reported a 14% increase in revenue last quarter, driven primarily by an advertising rebound for YouTube and Google. Google pulled in $37.1 billion, versus $34 billion for Q3 2019, while YouTube boosted ad revenue 30% year-over-year, reaching $5 billion.
Full Story: Deadline Hollywood (10/29),  MediaPost Communications (10/29),  The Verge (10/29) 
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Facebook Q3 revenue up; US/Canadian users down
(Sean Gallup/Getty Images)
Facebook appears undaunted by the recent ad boycott, logging record third-quarter revenues of $21.47 billion, a 22% year-over-year increase, but Chief Finance Officer David Wehner sounded a warning bell for next year as the social media platform faces regulatory threats and data collection challenges. Facebook also reported a declining user base in the US and Canada, which had increased at the start of the pandemic.
Full Story: The Wall Street Journal (tiered subscription model) (10/29),  TheWrap (10/29),  Reuters (10/30),  BNN Bloomberg (Canada) (10/29) 
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Brands & Campaigns
Estee Lauder is enabling Spotify listeners on Google Home devices to request a sample of its Advanced Night Repair serum by voice. The brand also is letting listeners create personalized "New Beginnings" playlists to play during their nighttime skin care routines.
Full Story: Mobile Marketer (10/29) 
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Policy & Research
Holiday e-commerce expected to soar this year
(Matt Cardy/Getty Images)
US online sales during November and December will jump 33% compared with the same period last year, with a record $189 billion in spending, Adobe Analytics predicts. The pandemic has fueled this growth, which is forecast to be even higher if Americans receive another round of aid from the government.
Full Story: CNBC (10/28) 
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IAB News
"Digital" is much more than a media channel to promote brands. Brands are using digital tools to connect with consumers in much more robust ways and this has led to disruption across all aspects of the marketing mix. Many forces of the ecosystem are convening to make 2020 is an inflection point -- and COVID-19 has accelerated many of these trends. This disruption can ignite innovation and brands are looking to the IAB, as a leader in digital transformation, to help them navigate through this evolution and translate complex topics into actionable and applicable brand strategies.

Learn more about our brand disruption content.
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IAB Learning & Development has announced a new slate of trainings to ensure you have the latest tactical knowledge to optimize your 2021 media plans. Take advantage of these courses to get you and your teams educated and prepared for the future of business. Use code LEARN20 for 20% off each registration. Learn more.
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Editor's Note
A headline and summary in Wednesday's issue of IAB SmartBrief misstated the new collaboration between LiveRamp and The Trade Desk. The summary should have stated that The Trade Desk's Unified ID 2.0 is now available through LiveRamp's Authenticated Traffic Solution. SmartBrief regrets the error.
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