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The tie-up represents a major coup for Microsoft, a stealthy but growing player in the digital advertising sector. In De...
19/07/2022

The tie-up represents a major coup for Microsoft, a stealthy but growing player in the digital advertising sector. In December, the LinkedIn and Bing search engine owner acquired the programmatic unit Xandr from AT&T to complement its existing data-driven advertising solutions. Microsoft generated more than $10 billion in ad revenue last year.

“Microsoft, the fourth-largest ad seller in the U.S., offers fewer conflicts of interest for Netflix than some other companies and it has strong relationships with a wide swath of advertisers,” said Ross Benes, principal analyst at Insider Intelligence, in emailed comments.

“One of Netflix’s greatest strengths is its superior user experience,” Benes added. “Given the ad experience found in Microsoft products like Bing and LinkedIn, this partnership indicates that Netflix’s ads won’t set a new standard for the burgeoning streaming space, but rather will mimic the standard ad experience for better or ill.”

Netflix met with a number of parties, including Google and Comcast, after confirming plans for an ad-supported tier in April. The Wall Street Journal earlier this week reported the “Stranger Things” distributor is also interviewing multiple external candidates for a role that will oversee its newfangled ad operations.

Microsoft’s tech infrastructure and know-how could help the company get the concept off the ground on a faster timeline. The streamer has reportedly told employees that ads could go live as early as the end of 2022. The shift brings fresh complexities to Netflix, including around licensing content from other studios, per a separate Journal report.

Instead of bringing a fresh chapter for brand-building following two years of false starts, the first half of 2022 ultim...
17/07/2022

Instead of bringing a fresh chapter for brand-building following two years of false starts, the first half of 2022 ultimately threw marketers into another holding pattern, one where creative innovation — which seemed on the cusp of a resurgence — was hard to come by. Rather than pushing the envelope forward, the overriding theme has been playing it safe, which might provide stability in the short term but could prove problematic as loyalty is tested in a quickly souring economy.

“There’s just a general sense of uncertainty and fragility right now, which is preventing some of those longer-term bets from being made,” said Ewan McIntyre, vice president analyst and chief of research for Gartner’s marketing practice.

The underlying aversion to risk in H1 was understandable. The crypto sector crashed hard in the second quarter, leaving a void of marketing activity in its wake, while auto manufacturers have been hesitant to hawk cars that won’t be available on the lot. The metaverse is a neat idea, in theory, but remains far from realization beyond light gaming experiments. Even its most ardent evangelists are tightening their investments to direct more energy to existing business fundamentals that are being tested in a shifting privacy landscape.

The same back-to-basics instinct is one more segments have gravitated toward as macroeconomic obstacles piled up in the last six months, experts said. Meanwhile, media spending and CMO budgets have been sturdy in a broad sense, raising the question of where, exactly, brands are allocating their resources.

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