3 Media Stories That Got Our Attention This Week – 4/27

Another week is almost over. Here are some of the stories that got our attention:

Snapchat wants direct response ad dollars
Digiday reports that Snapchat has increased its focus on attracting direct response advertising dollars. By most direct response marketers Snapchat has been seen as a branding channel primarily. However, ad formats, such as videos and geofilters, do have the potential to drive direct response results, such as app installs or sign ups. With better data analytics and more options to optimize Snapchat ads for direct response goals, Snapchat could well become a platform to which direct response marketers will turn their attention – and ad dollars.

Amazon on track to become 3rd largest digital advertising player
These days it feels like Amazon is everywhere and wants to be everything, now including an advertising company. CNBC reports that Amazon’s quarterly ad sales in Q1 amounted to more than $2 billion. It’s still way behind Google and Facebook (both Google and Facebook releasing impressive growth numbers this week), but if Amazon can keep up the trajectory, the company will soon become the third largest digital ad sellers. With Amazon’s track record in mind and the crucial role of Amazon in most online and offline buyers’ journey, advertisers might soon find Amazon ads an essential part of their digital media mix.

TV commercials on OTT bring better ROI than linear TV
A recent study showed that video ads on Roku’s over-the-top (OTT) platform is 67% more effective than traditional linear TV commercials, according to B&C. Roku is a internet TV streaming platform with competitors like Sling TV, YouTube TV, and Hulu Live. Why Roku video ads are so effective is down to various reasons, the study says. There’s less ad clutter than on linear TV, the audience is more targeted, and ads are generally more innovative. Thus, less exposure is needed to create an impact with viewers. The study is done by Roku and its strategic partner, MAGNA, so we should keep in mind that this is not an independent study. Yet, it’s safe to say that OTT advertising is going through an interesting development. It holds a lot of potential to deliver highly targeted TV ads and to reach an audience that has shifted away from classic, linear TV. But, it’s also a very fragmented market that has yet to offer the scale that linear TV does.