Social media revenue growth expected to slow as TikTok, Apple compete

In 2021 social media ad sales in the United States grew 36 percent to reach $58 billion as brands increased marketing budgets to recover from the pandemic and reach customers online. (Shutterstock/File)
In 2021 social media ad sales in the United States grew 36 percent to reach $58 billion as brands increased marketing budgets to recover from the pandemic and reach customers online. (Shutterstock/File)
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Updated 21 July 2022

Social media revenue growth expected to slow as TikTok, Apple compete

Social media revenue growth expected to slow as TikTok, Apple compete
  • Global social media ad sales are now expected to grow by 11 percent, the slowest pace on record, according to media intelligence firm MAGNA, which downgraded the growth forecast from 18 percent.

LONDON: Wall Street is bracing for the slowest global revenue growth in the history of the social media sector, as intensifying competition from TikTok and Apple in advertising threaten to compound economic woes in the second quarter.
The dour expectations come after a blowout 2021, when social media ad sales in the United States grew 36 percent to reach $58 billion as brands increased marketing budgets to recover from the pandemic and reach customers online.
But social media platforms have since warned investors and employees that the tide is turning as inflation lingers around 40-year highs, an environment where brands spend less on advertising.
Meta Platforms Chief Executive Mark Zuckerberg told employees last month the company was slashing hiring plans and that “this might be one of the worst downturns that we’ve seen in recent history.”
Snap Inc, which owns Snapchat and is due to report earnings after the close, earlier said it expected to miss its own quarterly revenue forecast due to deteriorating economic conditions.
Global social media ad sales are now expected to grow by 11 percent, the slowest pace on record, according to media intelligence firm MAGNA, which downgraded the growth forecast from 18 percent.
Analysts had expected some degree of slowing growth after 2021. However, growing competition from viral short-form video app TikTok and Apple has created a “perfect storm” and “investors are rightfully wary” about digital ad growth this year, wrote Barclays analysts in a research note this month.
Apple had already upended the digital ad industry when it introduced new iPhone privacy controls last year that hurt the ability for companies like Meta and Snap to target and measure ads on their apps.
Apple’s own advertising business, which mostly consists of developers paying to promote their app on the App Store, is expected to grow 36 percent this year to $6.9 billion, Barclays wrote, adding that Apple and TikTok together will take 34 percent of every new ad dollar that is spent outside China this year.
Lior Eldan, chief operating officer of mobile app marketing agency Moburst, which has worked with brands like Uber and Reddit, said clients are now spending about two to three times more on Apple ads, in part because the effectiveness of ads on other platforms has been degraded by Apple’s privacy changes.
“We’ve seen dramatic increases in budgets on Apple search ads following the privacy changes,” he said.
While still much smaller than behemoths like Facebook and YouTube, TikTok is poised to grow over 200 percent to become a $12 billion business, Barclays wrote.
TikTok remains important for many clients’ advertising strategies, said Yvonne Williams, vice president of media at ad agency Code3, which has worked with brands like Gap and Dior.
Alphabet’s Google, which reports second-quarter earnings on Tuesday, is the company most likely to be shielded from negative effects, because Google Search is “mission critical” for many advertisers, analysts from RBC Capital Markets said in a note on Tuesday.
Meta, Snap and Pinterest are more exposed to the Apple privacy changes and competition from TikTok, Barclays said.


CNN CEO Chris Licht to leave — report

CNN CEO Chris Licht to leave — report
Updated 58 min 48 sec ago

CNN CEO Chris Licht to leave — report

CNN CEO Chris Licht to leave — report
  • Licht, a former CBS executive producer who replaced Jeff Zucker at CNN, has been under pressure in the days following a damning report in the Atlantic magazine

DUBAI: CNN CEO Chris Licht will be leaving the media company, news website Puck reported on Wednesday.
CNN did not immediately respond to Reuters’ request for comment.
Licht, a former CBS executive producer who replaced Jeff Zucker at CNN, has been under pressure in the days following a damning report in the Atlantic magazine.
Among other criticism, he has taken heat for the network’s decision to broadcast a May 10 town hall with former Republican President Donald Trump, during which Trump repeated falsehoods about his 2020 election loss, said that if elected he would pardon many supporters convicted of taking part in a Jan. 6, 2021, attack on the US Capitol, and called CNN moderator Kaitlan Collins a “nasty person.”
CNN’s ratings have been sagging, even as the company attempts to get more Republican viewers.


Three Middle Eastern brands make it onto YouTube’s global list of year’s top 10 adverts

Three Middle Eastern brands make it onto YouTube’s global list of year’s top 10 adverts
Updated 06 June 2023

Three Middle Eastern brands make it onto YouTube’s global list of year’s top 10 adverts

Three Middle Eastern brands make it onto YouTube’s global list of year’s top 10 adverts
  • Telecom Egypt, Orange Egypt and Qatar Airways earned places on the eighth annual YouTube Cannes Ads Leaderboard
  • Collectively, the commercials that earned places on this year’s list streamed in a total of 28 countries across five continents

DUBAI: Three brands from the Middle East appear on the eighth annual YouTube Cannes Ads Leaderboard, which was unveiled on Tuesday and features the top 10 most-watched adverts globally on the video-streaming platform over the past 12 months.

Collectively, the commercials that earned places on this year’s list streamed in a total of 28 countries across five continents.

Telecom Egypt’s “WE Summer Campaign,” featuring Akram Hosny, ranked second. Qatar Airways’ official FIFA World Cup song “C.H.A.M.P.I.O.N.S” featuring DJ Rodge and Cheb Khaled took fifth spot; and Orange Egypt’s “Crazy about Football” commercial was seventh.

“It’s great to see the MENA (Middle East and North Africa) region’s diversity and creativity shine through on YouTube this year, which exemplifies the different formats on YouTube that allow brands to explore different styles and approaches to storytelling on the platform,” said Anthony Nakache, Google MENA’s managing director.

Mohammed Abutaleb, Telecom Egypt’s commercial vice-president, said that “agility is key to product success” in a “competitive technology marketplace.” The company is always ready to “test, adjust and reshape” its digital strategy, and “Google ad technology has been integral to our success on that front,” he added.

A spokesperson for Qatar Airways said: “YouTube is a great place for driving brand awareness and one of the key channels to communicate to a wide audience of football fans from around the world.”

Orange Egypt described YouTube as “one of the main platforms that help us increase top-of-mind awareness.”

The selection of the ads on the leaderboard was based on an algorithm that uses internal YouTube data to measure audience engagement and retention. Only one advert from each brand can appear, to “better reflect the broad range, quality and popularity of YouTube ads throughout the year,” according to YouTube.

Netflix took the top spot on the list with an advert featuring a prank in New York City to promote its “Addams Family” spin-off show, “Wednesday.” Apple’s “Introducing iPhone 14 Pro” was in third place, followed by the official trailer for the Max (formerly HBO Max) streaming show “The Last of Us.” The remaining brands that made the top 10 were Samsung, Bulgari, streaming service Peacock, and Burger King.

The ads on the list have cumulatively racked up 213.5 million views, 2.5 million likes and 70,000 comments.


Filmmakers invited to apply for Red Sea Fund grants toward movie production

Filmmakers invited to apply for Red Sea Fund grants toward movie production
Updated 06 June 2023

Filmmakers invited to apply for Red Sea Fund grants toward movie production

Filmmakers invited to apply for Red Sea Fund grants toward movie production
  • 3rd funding round offers financial backing to directors in Arab world, Africa

LONDON: Officials behind a fund offering grants to help toward the production of Arab and African films are inviting new applications for financial backing.

Red Sea Film Festival Foundation organizers announced on Tuesday the opening of a third round of Red Sea Fund support grants.

Running from June 6 until July 2, applications are being invited for flicks ready to go into production, with up to $500,000 per movie available for filmmakers.

Head of the fund, Emad Eskander, said: “We are truly impressed by the exceptional talent that aspiring and world-renowned filmmakers brought to the table in our second edition.”

The third round of funding will support projects from directors in Saudi Arabia, Africa, and throughout the Arab world, with the aim of helping launch a new generation of movie producers while supporting established filmmakers as they take their work from script to screen.

“It’s clear that the bar has been set high, but we have no doubt that the filmmakers are up for the challenge.

“Looking ahead to the third edition’s production cycle, we are confident that filmmakers will continue to push the boundaries of creativity and innovation,” Eskander added.

The Red Sea Fund has made a significant impact in the film world, supporting movies that have premiered and won awards at prestigious festivals such as Berlin and Cannes.


Media watchdogs demand Kosovo authorities investigate recent violence against ethnic Albanian journalists

Media watchdogs demand Kosovo authorities investigate recent violence against ethnic Albanian journalists
Updated 06 June 2023

Media watchdogs demand Kosovo authorities investigate recent violence against ethnic Albanian journalists

Media watchdogs demand Kosovo authorities investigate recent violence against ethnic Albanian journalists
  • Journalists covering the demonstrations have been attacked with bricks and stones, news reports say
  • 'Kosovo authorities, as well as international NATO-led forces in the area, must ensure that members of the press can safely cover protests,' says CPJ Europe representative

LONDON: Thirteen press freedom organizations, including the Committee to Protect Journalists, on Monday urged Kosovo authorities to investigate violence against ethnic Albanian media crews covering protests in the country’s north last month.

The media watchdogs also called on the authorities to take the necessary measures to protect reporters while performing their duties, according to a CPJ press statement.

Following the election of ethnic Albanian mayors to represent Serb-majority areas in northern Kosovo, several news crews were attacked physically and verbally by protesters, reported multiple news outlets.

Attila Mong, CPJ’s Europe representative, said: “Kosovo authorities must thoroughly investigate the recent attacks on news crews covering protests in the country and hold the perpetrators to account.

“Kosovo authorities, as well as international NATO-led forces in the area, must ensure that members of the press can safely cover protests without fear of harassment or assault.”

The attacks took place in the towns of Zvecan, Leposavic, North Mitrovica, and Zubin, with journalists allegedly having their cars vandalized and equipment knocked violently out of their hands, in addition to getting stoned, shot at, punched, and harassed.

A2 CNN reporter Jul Kasapi, who was allegedly attacked with his colleagues in Leposavic, was quoted by his employer as saying officers with the NATO-led peacekeeping Kosovo Force did not intervene despite witnessing the violence.


Arabs excited for Apple’s latest gadgets, some wary of high price

Arabs excited for Apple’s latest gadgets, some wary of high price
Updated 06 June 2023

Arabs excited for Apple’s latest gadgets, some wary of high price

Arabs excited for Apple’s latest gadgets, some wary of high price
  • Experts predict Apple’s Vision Pro could be game changer, others ask is it worth price tag?

LONDON: Apple’s latest gadgets have sparked excitement among Arabs, although some are raising eyebrows at the hefty price tags.

Along with an upgraded iOS system, new MacBooks range and its most-powerful chips yet, Apple on Monday unveiled a long-rumored headset that will place its users between the virtual and real world, while also testing the technology trendsetter’s ability to popularize new-fangled devices after others failed to capture the public’s imagination.

Apple chief executive officer, Tim Cook, proudly introduced the sleek Vision Pro goggles at the annual developers’ conference in Cupertino, California, a campus co-designed by the late Steve Jobs.

“This marks the beginning of a journey that will bring a new dimension to powerful personal technology,” Cook said.

The Vision Pro is Apple’s maiden voyage into the mixed reality market, boasting a high-resolution display, eye-tracking technology, and a formidable processor.

For some Arabs, the Vision Pro could revolutionize work, learning, and play with potential applications in remote collaboration, education, and gaming.

Emkwan, a UAE-based tech content creator at the event, said: “I’m actually shocked at all this. There’s so much to take in about Apple Vision Pro. It’s both scary and beautiful. Has Apple killed the iPhone with the Apple Vision Pro?”

However, with a $3,500 price tag, not everyone is ready to jump on the Vision Pro bandwagon.

One user said: “Not yet. You won’t kill the iPhone with VR until you make it affordable enough to put into the average and above average consumer hands and right now, it’s priced outside of their reach.”

Saudi-based tech influencer Majed Al-Dakhiel recognized the game-changing potential of the goggles, but questioned Apple’s target audience.

“The goggles are truly transformative and open the door of competition between developers. But will they be an entertainment or retail product?” he said on Twitter.

The Cupertino company is certainly making waves with its new technological offerings and the headset could become another feather in Apple’s cap for releasing industry-altering technology, even if it were not the first to do so.

While analysts are not expecting the Vision Pro to be a big hit right away, the buzz and concerns surrounding the headset suggest it has the potential to become a major contender in the MR market. Only time will tell how Arab consumers will embrace the device.