Thursday’s Headlines: Advertising Spend Soars In 2020
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Square (SQ) +3.6%
Twitter (TWTR) +3.0%
Facebook (FB) +2.2%
Amazon (AMZN) +1.7%
Chuy's (CHUY) +1.7%
Moving Down ⬇️
Trupanion (TRUP) -4.5%
Redfin (RDFN) -3.9%
Lemonade (LMND) -3.7%
Cognex (CGNX) -3.6%
Evolent Health (EVH) -3.5%
1. COVID-19 packed a mean punch when it hit digital ad spend early last year, but not mean enough. According to a new report commissioned by the Interactive Advertising Bureau and conducted by PwC, digital ad spend actually grew 12.2% in 2020, mostly to the benefit of the industry’s biggest players: Alphabet (GOOG), Facebook (FB), and Amazon (AMZN). Amazon’s share of the U.S. digital ad market was more than 10% for the first time in 2020, while Google and Facebook made up 28.9% and 25.2% respectively. It looks like Big Tech’s monopoly has gotten even bigger… Read the official report here.
2. Facebook may not be smiling much longer though, as Apple (AAPL) announced on Wednesday that it will be releasing its iOS 14.5 update in the coming weeks. For those unaware, this update was confirmed yesterday to contain a new privacy notification rule that digital advertising firms such as Facebook have warned will hurt their sales. The one-time notice will require an app developer to ask a user’s permission before the app tracks activities “across other companies’ apps and websites.” The expectation from advertising authorities is that many users will decline permissions, negatively impacting advertisers’ sales. Read the full story here.
3. Pinterest (PINS) just made a big leap into the more traditional world of influencer marketing on social media. Yesterday, the company announced that it will soon be launching a “Creator Fund” to pay a small group of influencers to create content for the platform. The fund will provide $500,000 in cash and media to small groups of influencers throughout 2021, starting with eight creators who come from under-represented backgrounds. To avoid falling foul of the same issues that plague the likes of Facebook and TikTok though, Pinterest will be introducing a strict set of guidelines for influencers to adhere to, including fact-checking and creating an inclusive environment. Read the official report here.
There is 1 company on the MyWallSt shortlist that will report earnings today: