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Takeaways from NewFronts 2024

This year's NewFronts was marked by intense competition among ad tech giants and social media platforms, with Google and T-Mobile making their debut appearances. Snap positioned itself against TikTok and Meta, emphasizing its distinctiveness to advertisers. Amidst concerns over TikTok's future in the States, alternative short-form video platforms are vying for market share. Here’s some key creator-takeaways from the ad sales event of the year:

👊TikTok versus Snap

Snap's NewFronts presentation emphasized its differentiation from other social media platforms like TikTok and Instagram, highlighting a focus on fostering genuine connections over competition for attention, while Snap's vertical video products offer a more secluded experience, reducing the risk of negative exposure but also limiting viral moments. In contrast, TikTok expanded its Pulse program and addressed brand safety concerns during its NewFronts event, vowing to oppose potential U.S. bans.

🐘The elephant in the room 

Despite the rising trend of generative AI in technology and media, there's also a pervasive tendency to label every automated ad capability as "Gen AI," with numerous companies, especially those in CTV and streaming, attributing new tools to AI during this year's NewFronts, leading to fatigue among attendees with the overuse of the buzzword.

⏩FAST channels are on the rise

As consumers seek relief from subscription fatigue by turning to free ad-supported TV (FAST) content, CTV companies have inundated their platforms with a plethora of FAST channels catering to various interests, showcased by partnerships with sports leagues like MLB and PGA Tour, as well as celebrities like Tracee Ellis Ross and John Cena, with advertisers previewing upcoming FAST content and channels from various media groups.

Industry latest

⚠️The bill to ban TikTok advances as it heads for a Senate vote, leaving some influencers and creators anxious, but options are opening in potential buyers for ByteDance’s stake. 

🌅Cannes Lions Festival introduces LIONS Creators, a new event taking place from June 18 to 20, offering specialized learning and networking opportunities for creators and industry professionals.

👋Join content creators of all kinds at CEX24, the premier event for learning and networking, happening May 5-7 in Cleveland, Ohio.

📈Electronics Hub's team recently created a visualization using Datareportal's data on screen time and social media use across international regions.

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Platform round-up

Leverage the latest updates and features across digital platforms to help you get ahead of the game…

❗Meta unveiled new advertising tools at NewFronts 2024, including improved creator search for affiliate campaigns on Instagram, AI-driven predictions for partnership ads, expanded use of AI in Reels campaigns, multi-destination product ads on Reels and the ability to include external links in Reminder promotions, all aimed at making ads more effective and efficient.

👏Snapchat introduced new ad products at NewFronts 2024, focusing on augmented reality (AR) integration, including AR Extensions allowing advertisers to incorporate AR Lenses and Filters into all ad formats, aiming to simplify AR creation with automation tools, and potentially expanding promotional opportunities beyond the app.

🆕TikTok has enhanced its Pulse ad placement option, allowing brands to showcase their ads alongside more content from top publishers and creators, boosting their visibility in the app.

🫧Instagram is testing a new feature called Clear Mode, allowing users to hide descriptions and UI buttons on reels clips for a cleaner viewing experience, activated by long pressing on a reel.

What comes next for TikTok?

In the latest for TikTok-ban-gate, President Joe Biden signed off on a bill that gives TikTok 270 days to be sold to a U.S.-based owner or face a ban in the States. TikTok's CEO has called the move unconstitutional and plans to challenge it in court. However, the odds of TikTok winning the legal battle remain uncertain, as the government is likely to defend the bill on national security grounds.

In terms of timing, TikTok has about a year before any potential shutdown, with the option to extend negotiations for an additional three months under certain conditions. The sale, however, faces challenges, particularly with the Chinese government's opposition. As for potential buyers, Oracle, among others, has shown interest, but any deal may hinge on access to TikTok's algorithm, a critical asset ByteDance, TikTok's current owner, may be hesitant to include.

The ban in the U.S. could set a precedent for other nations to follow suit, potentially leading to a domino effect of restrictions on TikTok globally. Amidst the uncertainty, diversifying digital strategies beyond TikTok is being advised across industry events, with platforms like Instagram Reels and YouTube Shorts emerging as viable alternatives. Nonetheless, the future of TikTok remains uncertain as the divestment push unfolds amidst diplomatic tensions between the U.S. and China over an app known for its lighthearted content.