Bonded Bitesize – Your Midweek Roundup

EU Commission Says Meta’s Ad Free Subscription Offering Violates DMA

Meta’s plan to offer EU users an ad-free subscription to comply with EU laws might lead to significant penalties. The EU Commission ruled that Meta’s ad-free package, introduced in November for €9.99/month, violates the Digital Markets Act (DMA), which aims to give users more control over their data. Privacy advocates argue that Meta’s model undermines GDPR protections, prompting an investigation that found Meta in breach of the DMA. The Commission stated that Meta’s “pay or consent” model fails to provide an equivalent service without data tracking, as required by Article 5(2) of the DMA. If upheld, Meta could face fines up to 10% of its global turnover. Meta may argue that charging for an ad-free experience is necessary to offset ad revenue loss, but the EU Commission’s stance could force Meta to alter or remove its subscription offering in the EU.

X Rejoins GARM to Reassure Ad Partners on Brand Safety

X is working to reassure ad partners about its brand safety by rejoining the World Federation of Advertisers’ ‘Global Alliance for Responsible Media’ (GARM). This move follows significant staff changes and distancing from GARM after Elon Musk’s takeover. X aims to demonstrate its commitment to reducing harmful content and improving brand safety.

Despite these efforts, X’s ad revenue has dropped by 50% since Musks’s acquisition, due to concerns over content moderation, offensive content, and its relatively limited reach compared to platforms like Instagram and YouTube. With stagnant user growth at 250 million daily active users, X’s future ad revenue relies on increasing its user base and maintaining brand safety, along with potential growth from new initiatives like X Payments and xAI’s Grok chatbot.

TikTok Updates Option to Download Clips Without Watermark

TikTok now allows creators to download their videos without a watermark, but only after posting them to TikTok first. This new option appears when users tap “Save” within the upload flow, offering choices to save with or without a watermark. This ensures TikTok gets more content while allowing users to share videos on other platforms without restrictions. Previously, users could download watermark-free clips, but the new requirement ensures uploads to TikTok. This move also simplifies the process for users who don’t use external editing tools like CapCut. The option is available in the latest app version under the Save menu.

Google Expands Conversion Tracking For Merchant Centre

Google Merchant Center will soon expand conversion tracking beyond clicks on Shopping free listings to include conversions from Search web results and other sources. This update, rolling out in the coming months, aims to give merchants more comprehensive performance data and enhance the Google shopping experience. Conversion tracking will now cover all conversions from merchants’ websites, and Google will use this data to optimise shopping search experiences and improve its services. The expanded tracking will automatically apply to all merchants using Google Merchant Center. Merchants can opt out by disabling the conversion setting in Merchant Center, turning off the setting in the Google & YouTube channel app on Shopify, or unlinking Google Analytics and Merchant Center accounts. This change reflects Google’s effort to provide more data to merchants and improve shopping-related services. The impact on merchants’ ability to optimise listings and overall performance on Google’s platforms will be closely watched.

Apple Expands 30% Fee On Facebook And Instagram Ads Globally

Starting July 1, Apple will extend its 30% fee on Facebook and Instagram ad purchases made through iOS devices to advertisers worldwide. This change, initially implemented for U.S. advertisers in February, could significantly impact digital advertising costs and strategies, potentially shifting budget allocations towards desktop platforms to avoid the fee. Meta has updated its web platforms to offer the same ad-boosting functionality as mobile apps, enabling advertisers to bypass the fee by using desktop browsers. EU regulators and a U.S. federal judge have criticised Apple’s fee structure as anti-competitive, while Apple defends its right to charge for platform access. This expansion reflects the ongoing battle between tech giants over app store policies and revenue sharing, and may reshape mobile advertising practices.

Pinterest Users Can Now Turn Boards Into Videos For Sharing On Instagram And TikTok

Pinterest is adapting to the TikTok era by allowing users to create short videos of their curated boards, inspired by the video-sharing trends on platforms like TikTok. This new feature aims to enhance social sharing, enabling users to showcase their boards creatively. It includes links back to the complete board on Pinterest for browsing or shopping. Pinterest has seen a surge in searches and creations related to this trend, known as “mecore” indicating strong user interest. The company hopes this update will boost engagement, particularly among Gen Z, who are already active on Pinterest. Partnering with influencers like Avril Lavigne and Tierra Whack, Pinterest aims to promote the feature as a tool for creative expression and fan engagement.

Roblox Tests In-Game Commerce With e.l.f. Beauty Product Launch

e.l.f. Beauty is breaking new ground by partnering with Roblox to test real-world commerce within the virtual gaming platform. As the first beauty brand to do so, e.l.f. has launched a virtual kiosk powered by Walmart, where U.S. visitors can purchase a physical hoodie featuring their cruelty-free products. This initiative follows the success of e.l.f.’s Roblox game, e.l.f. UP!, which has attracted over 12 million visitors since November 2023. The brand sees this integration as a way to merge beauty with immersive platforms, emphasising social commerce with a purpose, including a donation to the Humane Society.

AIO Pullback: Google Shows 2/3 Fewer AIOs And More Citations

Google’s AI Overviews (AIOs) have seen a notable decrease in frequency since their initial rollout, with reductions of up to two-thirds observed across various industries. Despite appearing less frequently, AIOs now include a higher number of citations per query, aimed at improving the reliability and trustworthiness of the information presented. Analysis indicates that domains cited in AIOs experience a decrease in organic clicks compared to traditional search results, highlighting shifts in organic traffic patterns. AIO content often mirrors the structure and information found in the top-ranked organic search results, relying heavily on sources such as Reddit and Wikipedia. These adjustments reflect Google’s ongoing efforts to refine its search experience based on user feedback and to uphold credibility in delivering information through AI-powered overviews.

New Study Suggests YouTube Advertising Is More Effective Than TV For Kids

The study by Precise TV and Giraffe Insights reveals that YouTube ads are highly effective among children aged 2-12, with 53% recalling YouTube ads more than those on other platforms. YouTube boasts 2.3x better ad recall than broadcast TV and cable, and 2.6x better than video-on-demand services. Reasons for this include targeted and contextually relevant ads, appealing toy commercials, and the novelty of TV ads for a generation raised on streaming. YouTube’s popularity among kids is unmatched, with 81% consuming content on the platform, excluding YouTube Shorts. Parents often buy products after seeing ads their children watch, highlighting YouTube’s influence and effectiveness in reaching younger audiences.

Fox Launches Ad-Supported Streaming Service, Tubi, In The UK

Rupert Murdoch’s Fox Corporation has introduced its ad-supported streaming platform, Tubi, in the UK, positioning it against competitors like Netflix, Disney+, and BBC iPlayer. Tubi launches with over 20,000 on-demand movies and TV episodes, including content from Disney, Lionsgate, NBCUniversal, and Sony Pictures, alongside original productions like “House of Heat.” Anjali Sud, Tubi’s CEO, emphasises their North American success and commitment to tailoring content to UK viewers. In the US, Tubi reportedly matched Disney+ in total viewing time with 80 million active users. The UK library features titles like “Twilight,” “Candyman,” and popular British TV shows, amid fierce competition in the streaming market.