E-commerce, online video set to fuel global ad spend recovery

E-commerce, online video set to fuel global ad spend recovery
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Updated 27 July 2021

E-commerce, online video set to fuel global ad spend recovery

E-commerce, online video set to fuel global ad spend recovery
  • Digital channels will contribute to ad industry’s recovery: Zenith forecast

DUBAI: Global spending on advertising was expected to grow by 11.2 percent this year to $669 billion, according to new industry figures.

The expenditure boom was being driven by demand for performance-led e-commerce advertising and brand advertising on online video, said Zenith in its latest advertising expenditure forecasts report.

If the predictions ring true, the total spend this year will be $40 billion more than before the start of the coronavirus disease (COVID-19) pandemic in 2019. And growth was likely to remain robust in the medium term, at an anticipated 6.9 percent next year, and 5.6 percent in 2023.

“After a very tough year last year, the ad market is enjoying rapid and broad-based recovery, and will end this year well above the level it achieved in 2019,” said Jonathan Barnard, head of forecasting at Zenith, which is part of Publicis Groupe.

A rise in ad spending was expected globally this year with the Middle East and North Africa region, currently recovering from the steepest decline, forecast to see expenditure increase by 15 percent.

According to data, the strongest growth since 2019 was taking place in North America where spending was up 13 percent this year after shrinking by only 1 percent last year.

Effect of e-commerce on advertising market

The COVID-19 pandemic accelerated the shift from physical sales to e-commerce, driving more consumers than ever before to research and complete purchases online. Brands responded to the change in customer behavior by forming partnerships with retailers and creating new direct-to-consumer operations, using performance-driven advertising – primarily in social media and paid search – to lead consumers down the path to buy.

The Zenith report noted that the patterns would expand social media advertising by 25 percent this year to reach $137 billion, overtaking in scale for the first time paid search that was expected to grow by 19 percent to $135 billion.

FASTFACTS

Ad spend will exceed the pre-pandemic peak by 6% this year.

Digital advertising will command 58% share of market in 2021, up from 48% in 2019.

Online video advertising will be fastest-growing digital channel in 2021, rising 26% to reach $63bn.

The average cost of television advertising is up 5% this year.

Middle East, North Africa region will see growth of 15% in ad spend this year.

A significant part of the new money being pumped into advertising was coming from small businesses that had to pivot to e-commerce due to COVID-19 lockdowns, and from brands that reallocated money from securing physical shelf space with retailers to display and search ads on retailers’ websites.

As lockdowns ease around the world, the growth of e-commerce will slow down but not return to pre-pandemic levels, the report revealed, adding that e-commerce would continue to pull in incremental revenues to the ad market, driving growth next year of 13 percent in social media and 12 percent in search.

Growth of online video

Audiences continued to migrate online where video viewing was growing rapidly, the report found, and despite traditional television ratings experiencing a surge when lockdowns began last year, they were shrinking again.

Advertisers valued online video as a means of maintaining reach while TV declined, but it was also an effective form of brand communication in its own right. Zenith predicted that online video advertising would be the fastest-growing digital channel this year, rising by 26 percent to reach $63 billion.

Benoit Cacheux, global chief digital officer at Zenith, said: “The online video landscape continues to transform, fueled by the growth of streaming services and connected TVs.

“Its continued evolution requires a radical rethink of how to build the optimal screen-neutral reach model. The ingestion of new data sources into TV planning also creates further opportunities to further sync TV and video planning.”

Traditional media will continue to trail behind digital

Overall, Zenith expected digital advertising to grow by 19 percent this year and increase its share of total ad spend to 58 percent, up from 48 percent in 2019, and 54 percent last year.

Most other media channels were enjoying growth this year, as spending rebounded from the 16 percent drop in traditional media ad spend in 2020. Cinema and out-of-home were the most affected by COVID-19-related restrictions, shrinking by 72 percent and 28 percent, respectively, but were expected to witness the fastest recovery this year with respective growth rates of 116 percent and 16 percent.

Radio advertising, which shrank by 22 percent last year, was forecast to grow by 4 percent this year, while television fell 8 percent in 2020 and was predicted to grow 1 percent in 2021.

Print would continue its long decline, now in its 14th consecutive year, with an 8 percent drop in ad spend in 2021, the report said.

Although cinema and out-of-home would have made up almost all lost ground by 2023, ad spend across traditional channels would still be below 2019 levels.

Cost of advertising

This year’s rapid recovery, coupled with the continued migration of audiences from traditional to digital channels, was fueling substantial increases in media prices, particularly in television.

The cost of television advertising was up 5 percent this year on average, though the variance between markets and audiences was wide. Television spend has increased by 1 percent, so the volume of audiences reached globally has shrunk.

In contrast, digital media growth was mainly driven by rising audiences and more extensive monetization with online video inflation averaging 7 percent, and social media roughly flat, compared to their 26 percent and 25 percent respective ad spend growth rates.

“Digital advertising is becoming a more effective tool for brand growth as media and commerce continue to move online, attracting greater investment from large brands and small businesses alike,” added Barnard.


Neo-Nazis are still on Facebook. And they’re making money

Members of the National Socialist Movement (NSM) and other white nationalists rally at Greenville Street Park in Newnan, Georgia. (File/AFP)
Members of the National Socialist Movement (NSM) and other white nationalists rally at Greenville Street Park in Newnan, Georgia. (File/AFP)
Updated 26 September 2021

Neo-Nazis are still on Facebook. And they’re making money

Members of the National Socialist Movement (NSM) and other white nationalists rally at Greenville Street Park in Newnan, Georgia. (File/AFP)
  • By carefully toeing the line of propriety, these key architects of Germany’s far-right use the power of mainstream social media to promote festivals, fashion brands, music labels and mixed martial arts tournaments that can generate millions in sales
  • Dozens of far-right groups that continue to leverage mainstream social media for profit, despite Facebook’s and other platforms’ repeated pledges to purge themselves of extremism

BRUSSELS: It’s the premier martial arts group in Europe for right-wing extremists. German authorities have twice banned their signature tournament. But Kampf der Nibelungen, or Battle of the Nibelungs, still thrives on Facebook, where organizers maintain multiple pages, as well as on Instagram and YouTube, which they use to spread their ideology, draw in recruits and make money through ticket sales and branded merchandise.
The Battle of the Nibelungs — a reference to a classic heroic epic much loved by the Nazis — is one of dozens of far-right groups that continue to leverage mainstream social media for profit, despite Facebook’s and other platforms’ repeated pledges to purge themselves of extremism.
All told, there are at least 54 Facebook profiles belonging to 39 entities that the German government and civil society groups have flagged as extremist, according to research shared with The Associated Press by the Counter Extremism Project, a non-profit policy and advocacy group formed to combat extremism. The groups have nearly 268,000 subscribers and friends on Facebook alone.
CEP also found 39 related Instagram profiles, 16 Twitter profiles and 34 YouTube channels, which have gotten over 9.5 million views. Nearly 60 percent of the profiles were explicitly aimed at making money, displaying prominent links to online shops or photos promoting merchandise.
Click on the big blue “view shop” button on the Erik & Sons Facebook page and you can buy a T-shirt that says, “My favorite color is white,” for 20 euros ($23). Deutsches Warenhaus offers “Refugees not welcome” stickers for just 2.50 euros ($3) and Aryan Brotherhood tube scarves with skull faces for 5.88 euros ($7). The Facebook feed of OPOS Records promotes new music and merchandise, including “True Aggression,” “Pride & Dignity,” and “One Family” T-shirts. The brand, which stands for “One People One Struggle,” also links to its online shop from Twitter and Instagram.
The people and organizations in CEP’s dataset are a who’s who of Germany’s far-right music and combat sports scenes. “They are the ones who build the infrastructure where people meet, make money, enjoy music and recruit,” said Alexander Ritzmann, the lead researcher on the project. “It’s most likely not the guys I’ve highlighted who will commit violent crimes. They’re too smart. They build the narratives and foster the activities of this milieu where violence then appears.”
CEP said it focused on groups that want to overthrow liberal democratic institutions and norms such as freedom of the press, protection of minorities and universal human dignity, and believe that the white race is under siege and needs to be preserved, with violence if necessary. None has been banned, but almost all have been described in German intelligence reports as extremist, CEP said.
On Facebook the groups seem harmless. They avoid blatant violations of platform rules, such as using hate speech or posting swastikas, which is generally illegal in Germany.
By carefully toeing the line of propriety, these key architects of Germany’s far-right use the power of mainstream social media to promote festivals, fashion brands, music labels and mixed martial arts tournaments that can generate millions in sales and connect like-minded thinkers from around the world.
But simply cutting off such groups could have unintended, damaging consequences.
“We don’t want to head down a path where we are telling sites they should remove people based on who they are but not what they do on the site,” said David Greene, civil liberties director at the Electronic Frontier Foundation in San Francisco.
Giving platforms wide latitude to sanction organizations deemed undesirable could give repressive governments leverage to eliminate their critics. “That can have really serious human rights concerns,” he said. “The history of content moderation has shown us that it’s almost always to the disadvantage of marginalized and powerless people.”
German authorities banned the Battle of the Nibelungs event in 2019, on the grounds that it was not actually about sports, but instead was grooming fighters with combat skills for political struggle.
In 2020, as the coronavirus raged, organizers planned to stream the event online — using Instagram, among other places, to promote the webcast. A few weeks before the planned event, however, over a hundred black-clad police in balaclavas broke up a gathering at a motorcycle club in Magdeburg, where fights were being filmed for the broadcast, and hauled off the boxing ring, according to local media reports.
The Battle of the Nibelungs is a “central point of contact” for right-wing extremists, according to German government intelligence reports. The organization has been explicit about its political goals — namely to fight against the “rotting” liberal democratic order — and has drawn adherents from across Europe as well as the United States.
Members of a California white supremacist street fighting club called the Rise Above Movement, and its founder, Robert Rundo, have attended the Nibelungs tournament. In 2018 at least four Rise Above members were arrested on rioting charges for taking their combat training to the streets at the Unite the Right rally in Charlottesville, Virginia. A number of Battle of Nibelungs alums have landed in prison, including for manslaughter, assault and attacks on migrants.
National Socialism Today, which describes itself as a “magazine by nationalists for nationalists” has praised Battle of the Nibelungs and other groups for fostering a will to fight and motivating “activists to improve their readiness for combat.”
But there are no references to professionalized, anti-government violence on the group’s social media feeds. Instead, it’s positioned as a health-conscious lifestyle brand, which sells branded tea mugs and shoulder bags.
“Exploring nature. Enjoying home!” gushes one Facebook post above a photo of a musclebound guy on a mountaintop wearing Resistend-branded sportswear, one of the Nibelung tournament’s sponsors. All the men in the photos are pumped and white, and they are portrayed enjoying wholesome activities such as long runs and alpine treks.
Elsewhere on Facebook, Thorsten Heise – who has been convicted of incitement to hatred and called “one of the most prominent German neo-Nazis” by the Office for the Protection of the Constitution in the German state of Thuringia — also maintains multiple pages.
Frank Kraemer, who the German government has described as a “right-wing extremist musician,” uses his Facebook page to direct people to his blog and his Sonnenkreuz online store, which sells white nationalist and coronavirus conspiracy books as well as sports nutrition products and “vaccine rebel” T-shirts for girls.
Battle of the Nibelungs declined to comment. Resistend, Heise and Kraemer didn’t respond to requests for comment.
Facebook told AP it employs 350 people whose primary job is to counter terrorism and organized hate, and that it is investigating the pages and accounts flagged in this reporting.
“We ban organizations and individuals that proclaim a violent mission, or are engaged in violence,” said a company spokesperson, who added that Facebook had banned more than 250 white supremacist organizations, including groups and individuals in Germany. The spokesperson said the company had removed over 6 million pieces of content tied to organized hate globally between April and June and is working to move even faster.
Google said it has no interest in giving visibility to hateful content on YouTube and was looking into the accounts identified in this reporting. The company said it worked with dozens of experts to update its policies on supremacist content in 2019, resulting in a five-fold spike in the number of channels and videos removed.
Twitter says it’s committed to ensuring that public conversation is “safe and healthy” on its platform and that it doesn’t tolerate violent extremist groups. “Threatening or promoting violent extremism is against our rules,” a spokesperson told AP, but did not comment on the specific accounts flagged in this reporting.
Robert Claus, who wrote a book on the extreme right martial arts scene, said that the sports brands in CEP’s data set are “all rooted in the militant far-right neo-Nazi scene in Germany and Europe.” One of the founders of the Battle of the Nibelungs, for example, is part of the violent Hammerskin network and another early supporter, the Russian neo-Nazi Denis Kapustin, also known as Denis Nikitin, has been barred from entering the European Union for ten years, he said.
Banning such groups from Facebook and other major platforms would potentially limit their access to new audiences, but it could also drive them deeper underground, making it more difficult to monitor their activities, he said.
“It’s dangerous because they can recruit people,” he said. “Prohibiting those accounts would interrupt their contact with their audience, but the key figures and their ideology won’t be gone.”
Thorsten Hindrichs, an expert in Germany’s far-right music scene who teaches at the Johannes Gutenberg University of Mainz, said there’s a danger that the apparently harmless appearance of Germany’s right-wing music heavyweights on Facebook and Twitter, which they mostly use to promote their brands, could help normalize the image of extremists.
Extreme right concerts in Germany were drawing around 2 million euros ($2.3 million) a year in revenue before the coronavirus pandemic, he estimated, not counting sales of CDs and branded merchandise. He said kicking extremist music groups off Facebook is unlikely to hit sales too hard, as there are other platforms they can turn to, like Telegram and Gab, to reach their followers. “Right-wing extremists aren’t stupid. They will always find ways to promote their stuff,” he said.
None of these groups’ activity on mainstream platforms is obviously illegal, though it may violate Facebook guidelines that bar “dangerous individuals and organizations” that advocate or engage in violence online or offline. Facebook says it doesn’t allow praise or support of Nazism, white supremacy, white nationalism or white separatism and bars people and groups that adhere to such “hate ideologies.”
Last week, Facebook  removed almost 150 accounts and pages linked to the German anti-lockdown Querdenken movement, under a new “social harm” policy, which targets groups that spread misinformation or incite violence but didn’t fit into the platform’s existing categories of bad actors.
But how these evolving rules will be applied remains murky and contested.
“If you do something wrong on the platform, it’s easier for a platform to justify an account suspension than to just throw someone out because of their ideology. That would be more difficult with respect to human rights,” said Daniel Holznagel, a Berlin judge who used to work for the German federal government on hate speech issues and also  contributed to CEP’s report. “It’s a foundation of our Western society and human rights that our legal regimes do not sanction an idea, an ideology, a thought.”
In the meantime, there’s news from the folks at the Battle of the Nibelungs. “Starting today you can also dress your smallest ones with us,” reads a June post on their Facebook feed. The new line of kids wear includes a shell-pink T-shirt for girls, priced at 13.90 euros ($16). A child pictured wearing the boy version, in black, already has boxing gloves on.


LinkedIn unveils top startups in Saudi Arabia 

LinkedIn has released its 2021 LinkedIn Top Startups list, identifying the top 10 startups in Saudi Arabia. (Supplied)
LinkedIn has released its 2021 LinkedIn Top Startups list, identifying the top 10 startups in Saudi Arabia. (Supplied)
Updated 24 September 2021

LinkedIn unveils top startups in Saudi Arabia 

LinkedIn has released its 2021 LinkedIn Top Startups list, identifying the top 10 startups in Saudi Arabia. (Supplied)
  • LinkedIn marked the Kingdom’s 91st National Day by revealing the first list of top startups in KSA

DUBAI: LinkedIn has released its 2021 LinkedIn Top Startups list, identifying the top 10 startups in Saudi Arabia. Based on data from the company and compiled by the LinkedIn News team, the Top Startups list globally is an annual ranking of the emerging startups to watch out for and work for.

In its inaugural year, the list from KSA highlights the Kingdom’s emerging startups through a four-pillar methodology that measures employment growth, engagement, job interest, and talent attraction. It showcases startups that are successfully navigating the evolution of consumer and business needs in the post-pandemic landscape.

Many are paving the way through the “Great Reshuffle,” a phrase coined by LinkedIn to signify the moment of unprecedented change in which employers and employees are rethinking how and why people work.

The startup funding rate in KSA, which was about $8 million per annum in 2016, surged to over $150 million in 2020 and continues to grow exponentially in 2021, according to business research firm Magnitt.

The top 10 companies on the list are:

- Sary

- Tamara

- Jahez International Co.

- The Chefz

- Salasa

- Zid

- Nejree

- Shgardi

- Hala

- Shift inc.

“Startups are a natural place to look to for forward thinking and innovation around the future of how we live and work. LinkedIn’s Top Startups list for KSA is the place to find the startups you should be paying attention to,” said Salma Altantawy, news editor for the Middle East and North Africa region at LinkedIn.

Based on the list, LinkedIn has identified three key trends driving the startup market in the Kingdom:

Convenience: The companies featured on the list are ones offering easy-to-use apps that have revolutionized the concept of convenience for customers and businesses in the country. Sary, for instance, connects small businesses with wholesalers to boost the supply chain, while Tamara aims to empower people with its buy now pay later business model.

Delivery: With people turning to e-commerce more and more during the pandemic, the convenience of using an app to order everything from groceries to sneakers has become second nature to most shoppers, explaining the success of companies such as Zid and The Chefz.

Logistics: Through innovation and technology, small companies are able to make a big impact. For example, Hala provides effective logistics solutions from warehousing to freight forwarding. Similarly, Shift inc. offers smart transportation solutions in an easy-to-use format.

“The startups — mostly in the apps, technology, information technology and business-to-business marketplace space — are innovative, contributing to the Kingdom’s growth and helping build the booming small to medium-sized enterprise ecosystem,” added Altantawy.


Burundian journalist briefly detained while investigating blast

Bujumbura was investigating a series of explosions this week that killed at least five people. (REUTERS)
Bujumbura was investigating a series of explosions this week that killed at least five people. (REUTERS)
Updated 24 September 2021

Burundian journalist briefly detained while investigating blast

Bujumbura was investigating a series of explosions this week that killed at least five people. (REUTERS)
  • Police on Friday briefly detained a journalist investigating a grenade attack in the commercial capital Bujumbura in Burundi

NAIROBI: Police on Friday briefly detained a journalist investigating a grenade attack in the commercial capital Bujumbura, his radio station said, after a series of explosions this week that killed at least five people.
Radio Bonesha FM had earlier said their reporter, Aimé-Richard Niyonkuru, had been mishandled and arrested by police in Bujumbura’s Kamenge neighborhood while he investigated a grenade incident that was said to have killed two people on Thursday.
“Radio Bonesha FM journalist arrested on Friday morning by the police has just been released. Aimé Richard Niyonkuru is still waiting for his recorder. He spent many hours at the Special Research Office under the hot sun,” the station said on Twitter.
Police spokespeople were not immediately available to comment on the arrest.
Burundi, a nation of about 11.5 million people, has suffered decades of war and ethnic and political violence. The United Nations says the youth wing of the ruling party and the security services are involved in the torture, gang-rape and murder of political opponents, charges the government denies.
On Monday, two grenade explosions hit a bus park in Bujumbura, while on Sunday a grenade attack in the administrative capital Gitega killed two, according to local media.
The Interior Ministry said “unidentified terrorists” were responsible for attacks in Bujumbura. There was no immediate claim of responsibility for the attacks.
An airport worker said on Monday there had also been an attack on the Bujumbura airport on Saturday, for which Congo-based rebel group Red Tabara claimed responsibility, saying it fired mortars as the president prepared to travel to the United Nations General Assembly in New York.
On Tuesday, Attorney General Sylvestre Nyandwi accused leaders of a suspended opposition party, MSD, of being behind the recent attacks, adding that authorities had issued international arrest warrants for them.


Podean wins The Drum startup agency of year award

Global Amazon agency and marketplace consultancy Podean has been named as startup agency of the year at The Drum advertising awards. (Supplied)
Global Amazon agency and marketplace consultancy Podean has been named as startup agency of the year at The Drum advertising awards. (Supplied)
Updated 24 September 2021

Podean wins The Drum startup agency of year award

Global Amazon agency and marketplace consultancy Podean has been named as startup agency of the year at The Drum advertising awards. (Supplied)
  • E-commerce firm specializing in Amazon advertising scoops international gong

DUBAI: Global Amazon agency and marketplace consultancy Podean has been named as startup agency of the year at The Drum advertising awards.

The gongs were judged by a panel of C-suite industry experts from leading firms and brands including Danielle Bassil of Digitas, Lucy Taylor from MullenLowe, Emma Montgomery from Leo Burnett, and OMD’s Stephen Li.

They evaluated agency nominees based on, “demonstrated innovative thinking to build and develop their business, shareholder value, outstanding client experience, and a talented and engaged team,” according to a statement.

The awards’ startup agency of the year category is dedicated to individual companies that are less than three years old and provide examples of how the new entity has set out to solve a need in the market, has been creative and innovative in terms of strategy, and has managed to cut through and build a profile in a crowded field.

Global chief executive officer, Travis Johnson, accepted the award during the virtual event, and thanked all Podean teams for their “dedication and constant focus on delivering innovation and results.”

Podean founder and CEO, Mark Power, said: “We knew from the start that e-commerce could be a more sophisticated and innovative discipline and that marketplaces must fit into a brand’s broader retail context. This award reinforces that our approach is the right one and one that delivers results for clients.

“I’m especially proud that the work we submitted – and that won – was contributed by our teams all around the world. We know we are not simply raising the bar in the US but also in the Asia-Pacific, Middle East and North Africa, Latin America, and EU regions,” he added.


Economist magazine calls for Georgieva to quit IMF over World Bank data scandal

Economist magazine calls for Georgieva to quit IMF over World Bank data scandal
Updated 23 September 2021

Economist magazine calls for Georgieva to quit IMF over World Bank data scandal

Economist magazine calls for Georgieva to quit IMF over World Bank data scandal
  • "The head of the IMF must hold the ring while two of its biggest shareholders, America and China, confront each other in a new era of geopolitical rivalry," the Economist said
  • Critics of multilateralism are already citing the findings as evidence that international bodies cannot stand up to China

WASHINGTON: The Economist magazine on Thursday called for International Monetary Fund (IMF) Managing Director Kristalina Georgieva to resign over her role in a China-related data-rigging scandal while at the World Bank, saying it has undermined the IMF’s credibility.
The influential London-based publication said in a scathing editorial that an external investigation’s findings that Georgieva pressured staff for changes to the World Bank’s “Doing Business” rankings in 2017 to favor China compromises the IMF’s ability to act as the custodian of data for the world’s macroeconomic statistics.
“The head of the IMF must hold the ring while two of its biggest shareholders, America and China, confront each other in a new era of geopolitical rivalry,” the Economist said, adding that critics of multilateralism are already citing the findings as evidence that international bodies cannot stand up to China.
“The next time the IMF tries to referee a currency dispute, or helps reschedule the debt of a country that has borrowed from China, the fund’s critics are sure to cite this investigation to undermine the institution’s credibility. That is why Ms Georgieva, an esteemed servant of several international institutions, should resign,” the editorial said.
It cited the allegation in the WilmerHale law firm’s report that Georgieva, who at the time was the World Bank’s CEO, thanked a senior bank researcher for “doing his bit for multilateralism” in altering the China data.
“Now she too should do her bit for multilateralism by falling on her sword,” the Economist said.
The World Bank’s “Doing Business” reports, now canceled, ranked countries based on their regulatory and legal environments, ease of business startups, financing, infrastructure and other business climate measures.
Georgieva, a Bulgarian who is a longtime former World Bank economist and European Commission official, has denied the accusations in the WilmerHale report, saying last week they are “not true” and she has never pressured staff to manipulate data.
The IMF’s executive board is conducting its own review of the allegations and has emphasized “the importance it attached to conducting a thorough, objective and timely review.”
An IMF spokesman declined comment on the Economist’s editorial. A US Treasury spokeswoman also declined comment beyond the Treasury’s earlier statement that is analyzing “serious findings” in the WilmerHale report.