Revenue forecast for 2017 +14%
The digital display market looks set to have enjoyed continued impressive revenue growth in 2016 of c21% year-on-year, if the IAB revenue report is anything to go by. However despite the big numbers, this year we have seen examples of the market’s biggest media companies facing challenges inherent within their businesses as they position themselves in an effort to be as attractive as possible to advertisers.
Verizon’s Yahoo purchase
In September 2016 it was reported that data from at least 500m Yahoo accounts was stolen in 2014 in a cyber-attack by hackers. This couldn’t have happened at a worse time for Yahoo, who were nearing the completion of their sale to Verizon, originally scheduled for completion in February 2017. This news caused Verizon to review their position in the sale, and mid-February it was reported by sources close to the sale that Verizon had renegotiated the terms of the deal & reduced the original agreed price of $4.83bn by between $250m and $350m
Facebook & MRC auditing
Also in September 2016 the mighty Facebook were struck by their own scandal, when it was publicised that they had been overstating a key video metric for two years. They had been inadvertently artificially inflating their reported average time users spent watching videos, as they had only been measuring this against video of more than 3 seconds. Facebook up to this point have been notoriously closed to 3rd party tagging and verification on their closed platform. Last month saw the company blog plans to help address this, by committing to an independent audit by the MRC in order to verify the accuracy of the measurement it delivers to its advertisers.