Charts of the Week
Strong Reach and Brand Safety Among Highest Indicators of Quality Inventory
Brands and agencies often discuss the need to buy ‘quality inventory’, but what that inventory actually looks like can be hard to define. According to a new survey from EMARKETER and Verve, most media buyers associate the term with strong reach in the right environments (60.5 percent) and brand-safe environments (53.8 percent). But the research found less agreement around technical or operational definitions of quality inventory, with just 16 percent associating the term with inventory that performs well without relying solely on identifiers, and only 18.5 percent considering direct supply paths as a defining factor.
Audience Demand for WBD and Paramount Shows to Overtake Disney
The combined share of US audience demand for series on channels and streaming services owned by Warner Bros. Discovery (WBD) and Paramount is set to reach 27 percent when the companies merge, according to Parrot Analytics, outgrowing Disney at 18 percent. “In terms of cultural footprint and franchise power, bringing together DC, Harry Potter, HBO’s prestige pipeline, Star Trek, and the Yellowstone universe creates an entity capable of dominating the attention economy for decades,” the analysts said in the research.
Q1 Earnings Bump Magnite and PubMatic Stock as The Trade Desk Falls
The Trade Desk, Magnite and PubMatic reported their Q1 earnings last week, all reporting revenues above expectations for the quarter. But the stock market reaction was less positive, with The Trade Desk’s H2 forecast spooking investors. And while Magnite and PubMatic saw immediate gains following their results, both stocks declined on Monday, signalling wider concerns pressuring the ad tech sector.
Roku’s Ads and Subscription Business is Offsetting its Squeezed Device Revenues
The growth of Roku’s ads and subscription business (which it calls its Platform business) drove a 22 percent YoY increase in total revenues during Q1, offsetting a 16 percent fall in revenues from its device sales. The company forecast a further drop in device revenues in Q2, projecting that “higher memory costs will weigh on device margins in the second half of the year.”
The Week in Stocks
Agencies
S4 Capital’s share price jumped nine percent following the marketing and technology services firm’s Q1 results, despite macroeconomic and geopolitical volatility continuing to weigh on the company’s revenues.
TV
Comcast stock hit a 52-week low on Friday, as the mass media company grapples with competition in the broadband sector and the impending merger of Paramount Skydance and Warner Bros. Discovery (WBD).
Publishers
Reach’s stock price took a hit when the publishing group posted a 6.9 percent YoY decline in revenues for Q1. Meanwhile News Corp jumped five percent after posting nine percent YoY revenue growth.
Ad Tech
Teads is the only ad tech stock in our list to rise over the past week, after the company posted a bump in profits during Q1, alongside a seven percent YoY fall in revenues.
Tech
Nvidia stock is trading at a record high ahead of the chip giant’s earnings update next week.
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