ads – Zion Tech Group

Apple in discussions to test out ads on Elon Musk’s X: report

Elon Musk’s social media platform X may not only be getting more interest from e-commerce giant Amazon.

As per a recent report, tech giant Apple may also be pondering a return to the social media platform.

X controversies:

Apple, together with several high-profile advertisers, pulled its ads from X in late 2023 following a report from Media Matters of America, which claimed that the tech giant’s ads were appearing alongside extremist content.
X has responded by suing Media Matters, arguing that the watchdog used deceiving tactics to give the impression that advertisements from major corporations were appearing alongside controversial content.
In August 2024, a Texas judge allowed X’s lawsuit to proceed despite Media Matters’ efforts to have the case dismissed.

Apple’s potential return to X:

In a recent report, The Wall Street Journal noted that Amazon was increasing its ad spend on X.
The publication, citing a source reportedly familiar with the matter, stated that in recent weeks, Apple has also had discussions about testing out ads on X.
“Apple, which pulled all of its ad dollars from X in late 2023, in recent weeks has had discussions about testing out ads on the platform, according to a person familiar with the situation,” the WSJ report noted.

X after Musk:

Following Musk’s controversial takeover of X, the company’s ad revenue saw a steep drop.
X, however, has since launched several initiatives aimed at gaining more revenue and attracting more users to the platform.
These include the launch of a monetization program for creators, as well as upcoming services like X Money, which was recently announced by the company.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Apple in discussions to test out ads on Elon Musk’s X: report

According to a recent report, Apple is in discussions to test out ads on Elon Musk’s X. This potential partnership could bring a new revenue stream for both companies and provide an innovative advertising platform for Apple. Stay tuned for more updates on this exciting development! #Apple #ElonMusk #Advertising #Innovation #Partnership

Tags:

Apple
Elon Musk
X
Ads
Testing
Discussions
Report
Technology
Innovation
Marketing

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February 2, 2025

Fox Super Bowl ads beckon up to $8 million apiece

Fox Corp. is scoring big this Super Bowl.

The broadcaster has sold out of ad spots for Super Bowl 59 on Feb. 9, and more than 10 of those commercials sold for $8 million apiece, according to a person familiar with the matter.

Fox reported during its November earnings call with investors that it sold out of ad spots for the Super Bowl in the fall of 2024. At the time, media reports pegged average prices at more than $7 million per ad.

“We’re sold out for the Super Bowl at record — what we believe [is] a record pricing,” Fox CEO Lachlan Murdoch said on November’s call.

Much of the ad inventory for the Super Bowl was sold during Fox’s Upfront presentation to investors last spring, and when it became clear that open spots were dwindling, the price of each unit stepped up, said the person familiar with the matter, who spoke on the condition of anonymity to discuss nonpublic matters.

Typically, pricing for Super Bowl ads can escalate by about $100,000 as remaining inventory lessens and game day approaches. This year, the jump in price was closer to $500,000 per spot, the person said.

The voracious appetite for commercial time during the country’s biggest live sports event is no surprise, even if the pricing is eye-popping. Live sports continue to beckon the biggest audiences as the cable TV bundle shrinks, making the matches some of the most coveted programming on live TV for advertisers.

Last year, an estimated 123.7 million people watched the Super Bowl, which was aired on Paramount’s CBS broadcast network, streaming service Paramount+ and Spanish-language telecaster Univision, among other platforms, according to Nielsen.

In 2023, the last time the Super Bowl aired on Fox, more than 115 million viewers tuned in. These audience sizes are a key reason why media giants have shelled out hefty sums for the rights to NFL games.

“If I learned anything, it’s that we’re in a period now where the live sporting event, where people and families come together to watch, is that much more coveted,” said Mark Evans, executive vice president of ad sales for Fox Sports. “There’s an escalation in price and interest in the demand for live sports, but we’re not at its peak. We’ve still got runway for growth.”

The advertising market has been improving since its slump during the height of the Covid-19 pandemic. Traditional media companies with sports rights and tentpole live programming are benefiting the most, while advertising for general entertainment programming still lags in comparison.

This year’s Super Bowl, which will see the reigning champion Kansas City Chiefs once again take on the Philadelphia Eagles, will have plenty of commercials from the typical players, including automakers, restaurants and food and beverage companies, with lots of familiar celebrity faces, said Evans.

Viewers will notice an increase in ads from companies in the artificial intelligence and pharmaceutical industries, while there will be fewer commercials from streaming services and movie studios, he said.

Evans noted that “multiple advertisers have fallen in love with the creative,” adding there will be more 60-second ads in addition to the usually popular 15- and 30-second spots.

Advertisers will also get a little more bang for their buck this year. In addition to broadcasting on Fox, the company is also offering the Super Bowl on its free, ad-supported streaming service Tubi for the first time. Tubi will air the same ad load as the broadcast network.

The Super Bowl is not just a big day for football fans – it’s also a huge day for advertisers looking to capture the attention of millions of viewers. And this year, Fox is reportedly charging up to $8 million for a 30-second ad spot during the big game.

With such a hefty price tag, advertisers are looking to make the most of their investment by creating captivating and memorable commercials that will leave a lasting impression on viewers. From celebrity cameos to heartwarming storylines, the Super Bowl ads are sure to be a highlight of the game.

So get ready to see some of the biggest and most innovative ads of the year during the Super Bowl, as advertisers pull out all the stops to win over viewers and make the most of their $8 million investment.

Tags:

Fox Super Bowl ads
Super Bowl commercials
Fox advertising rates
Super Bowl ad pricing
Fox network marketing
Super Bowl advertising costs
Fox advertising strategies
Super Bowl ad investment
Fox Super Bowl ad prices
Super Bowl advertising trends

#Fox #Super #Bowl #ads #beckon #million #apiece

January 30, 2025

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January 27, 2025

AWS, Robotics, Prime Video Ads Fuel Amazon Growth Potential: Analysts – Amazon.com (NASDAQ:AMZN)

Wall Street analysts rerated Amazon.com Inc AMZN as the U.S. kicked in its earnings season last week.

Needham analyst Laura Martin reiterated a Buy rating on Amazon and a $250 price target.
BofA Securities analyst Justin Post maintained a Buy rating on Amazon with a price target of $255.

Also Read: Google Stock Boosted By AI Growth, Cloud Expansion, Cost Discipline Despite DOJ And Generative AI Challenges: Analyst

Needham: Martin hosted a panel of prior Amazon employees during the Needham Growth Conference.

In answer to a question from the audience, the panelists agreed that Amazon CEO Andy Jassy is the right person to lead the company today. Amazon Web Services is both the present (i.e., high margins and high revenue growth rate) and the future (i.e., large language models and generative AI features, tools, and applications), they said.

They also agreed that Amazon’s strategy is shifting away from e-commerce and toward becoming the backbone of large language models, or LLMs. Jassy was the former founder and president of AWS.

Since Jassy became CEO, he has lowered the amount spent on long-term bets, such as the Fire Phone and Grocery, to improve near-term profitability and reallocate more resources toward AWS.

Amazon has a “debate and commit” culture. After everyone voices their disagreements, a decision is reached, and everyone commits. The downside of this culture is that challenging projects and problems never stop. If the old team cannot figure it out, new folks are rotated into that problem. Among all the panelists, they could only think of 2 projects that had ever been shut down. This inability to end risk-taking projects wastes time and resources.

Amazon has a rotational culture in which employees switch roles every 18-24 months. This rotation ensures fresh perspectives on every problem. It also redirects top talent to high-priority and difficult projects, but it risks talent burnout and high turnover rates.

One panelist argued that Amazon’s Delivery Service Partner (DSP) model, which relies on external contractors, may not be sustainable over time. Low control and high turnover among DSPs make it hard for Amazon to maintain operational excellence in last-mile delivery.

Retail operates on very thin margins, but operating efficiencies bolster its profitability over time.

Investments in automation and “hands-off-the-wheel” technology can improve margins in the future.

Ad Business is leading the industry in data collection and tying ad revenue to actual purchases on Amazon. They said it is the best Retail Media Network available today, and Martin agreed.

BofA Securities: Amazon outperformed the Nasdaq and e-commerce sector in 2024 (+44%, versus 25% for Nasdaq), aided by multiple expansions, with forward-year P/S growing to 3.1 times (versus 2.3 times at the start of 2024).

While AWS growth and Retail margin expectations have increased, Post noted AI-driven Cloud growth remains a top sector opportunity, while Retail Margin expansion can continue to drive outsized profit growth versus peers. Amazon is also relatively well positioned for the impact of US$ appreciation, which aids Cloud margins.

Post noted that the strong AI-demand cycle for AWS will drive upside in 2025. Further, Retail Margin efficiencies drive outsized profit growth for the company.

Amazon is a robotics play, which should drive a multi-year productivity cycle and reduce labor dependence, according to the analyst. The analyst also flagged a ramp in Prime Video ad dollars, further headcount cost savings from mid-level manager cuts, and online retail normalization as additional growth drivers for 2025.

Post slightly lowered his 2025 estimates for recent US$ appreciation. He lowered 2025 International Revenue by $7 billion (~5% of International revenue but just 1% of total), offset by slightly higher AWS margins. For fiscal 2025, Post estimates Revenue and EPS of $700 billion and $6.10, down from $707 billion and $6.13 prior.

Relative to large-cap peers, Post still expects more stable revenue growth in the first half of 2025 (with potential Cloud acceleration) and better margin expansion and noted Amazon as a relatively strong player in AI (Cloud revenues, robotics, R&D efficiencies).

Price Action: Amazon stock is up 2.35% at $231.25 at last check Tuesday.

Also Read:

Image: Shutterstock

Amazon’s potential for growth is soaring as analysts predict that the company’s investments in AWS, robotics, and Prime Video ads will drive significant expansion in the coming years.

According to analysts, Amazon’s cloud computing division, Amazon Web Services (AWS), continues to be a major driver of growth for the e-commerce giant. With an increasing number of businesses turning to cloud services, AWS is well-positioned to capitalize on this trend and further solidify Amazon’s position in the tech industry.

Additionally, Amazon’s investments in robotics technology are expected to streamline its operations and improve efficiency in its fulfillment centers. By utilizing robots to assist with tasks such as picking, packing, and shipping orders, Amazon can increase productivity and reduce costs, ultimately leading to higher profits.

Furthermore, analysts believe that Amazon’s aggressive advertising strategy for its streaming service, Prime Video, will help the company gain market share in the competitive streaming industry. By promoting original content and securing exclusive deals, Amazon can attract more subscribers and generate additional revenue from its video streaming platform.

Overall, analysts are optimistic about Amazon’s growth potential, citing its strong position in key sectors such as cloud computing, robotics, and streaming services. With a solid foundation and strategic investments in place, Amazon is well-positioned to continue its expansion and deliver long-term value to shareholders.

Tags:

Amazon growth potential
AWS
Robotics
Prime Video Ads
Analysts
Amazon.com
NASDAQ:AMZN
Amazon stock analysis
Technology trends
E-commerce growth

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January 22, 2025

How University of Arizona Global Campus’ Online Recruitment Ads Drain Its Finances

Amid this firestorm, UAGC’s enrollments continue to slip.

Zak argued this decline “was expected and planned for during the transitional period” as the institution works to integrate the former Ashford into the University of Arizona. He said UAGC is trying to lift enrollment, including through programs that help stopped out students return to college.

Still, the enrollment downturn raises questions in particular about the efficiency of its marketing efforts.

While the analysis doesn’t reveal the full extent of UAGC’s marketing splurge, it likely devotes hundreds of millions of dollars to it, based on figures in the EY audit. A similar institution to UAGC, the University of Maryland Global Campus, also dropped $500 million on just two six-year advertising contracts, according to a separate audit.

UAGC is investing significantly in lead generation, a strategy colleges have tried for more than a decade. They pay for advertisements to appear on webpages, particularly social media platforms, that typically summarize a program and also try to entice prospective students to click a new link for more information.

That ad takes prospects to a separate webpage, where they can fill in their name and other information, becoming a “lead” that a college can try to convince them to enroll.

Yet UAGC’s use of lead generation has been astonishingly fruitless, the audit shows.

Fewer than 1% of students reached through UAGC’s top five paid marketing sources, including Google and Facebook, actually enroll. The numbers concerning Facebook are particularly bleak — only 0.5% of prospective students end up enrolling at UAGC after clicking an advertisement on the platform. The auditor said this means it effectively costs the university more than $34,000 in marketing dollars just for one person to enroll from Facebook.

Even UAGC’s most successful lead generation source — Google search ads — converted just 3% of prospects, with each enrollment costing more than $7,500.

These figures are even more staggering considering UAGC pays to find 85% of its prospects, according to the audit. By contrast, Arizona Online — the university’s self-created online program, which still operates, in parallel to UAGC — buys just 50% of its student leads.

Zak said that UAGC has since “refined” its marketing to “prioritize efficiency and effectiveness,” but did not go into greater detail.

“UAGC has implemented a targeted approach in alignment with its mission of serving non-traditional learners,” Zak said. “UAGC is focused on retention and success and focuses on students who are most likely to benefit from a flexible and supportive learning environment. UAGC leverages data analytics, audience segmentation, and advanced tracking mechanisms to help improve conversion rates and reduce marketing costs.”

He later said that UAGC serves nontraditional students like working adults, military members and first-generation college attendees.

“Reaching those students in a competitive marketplace requires a different approach than traditional four-year universities,” Zak said.

The University of Arizona has faced budget problems broadly and last year said it had a $177 million budget deficit, which it has since reduced significantly.

But for all the university’s publicity efforts around UAGC, prospective students recognize Arizona Online as part of the institution’s brand, more so than UAGC, the audit said. Maintaining both platforms has actually spurred “market confusion,” according to the audit.

To remedy this, the University of Arizona has angled to integrate UAGC and Arizona Online, and Zak pointed to a university statement last year that said the audit findings validate this merger.

Still, this “confusion” underscores broader marketing challenges, like relying heavily on lead generation, a strategy UAGC has leaned into despite the fact that experts have said it’s inefficient to boost enrollment.

In part, that’s because institutions don’t recognize that students won’t make life-altering choices, like where to attend college, based on what’s essentially a pop-up ad, two marketing experts wrote in a 2022 essay.

“Prospective students prudently take their time researching your programs’ offerings in addition to many others,’” they wrote. “They are not naïve, impatient or easily persuaded by glitzy ads and copy. They spend many months researching and deliberating.”

Worse, lead generation can be used for nefarious or even predatory recruitment efforts. Some lead generation companies, for instance, have caught consequences from the Federal Trade Commission, particularly those that target current and former military members.

University of Arizona Global Campus has been spending a significant amount of money on online recruitment ads in an effort to attract more students to its online programs. However, these ads may actually be draining the university’s finances rather than helping it grow.

One major issue with these ads is that they can be incredibly expensive, especially when targeting specific demographics or keywords. This means that the university may be spending thousands of dollars on ads that are not effectively reaching its target audience.

Additionally, the online recruitment ads may not always result in a high conversion rate. This means that even though the university is spending a large amount of money on ads, they may not be getting a significant return on investment in terms of new students enrolling in their programs.

Furthermore, the constant need to compete with other universities and online programs for students through online ads can lead to a bidding war, further increasing the cost of advertising for the University of Arizona Global Campus.

Overall, the university needs to reevaluate its online recruitment ad strategy to ensure that it is not unnecessarily draining its finances without seeing a significant return on investment in terms of new student enrollments.

Tags:

University of Arizona Global Campus
Online recruitment ads
Financial drain
Higher education marketing
Cost-effective advertising
Online enrollment strategy
Academic advertising budget
Digital marketing campaigns
Financial sustainability
ROI in higher education marketing.

#University #Arizona #Global #Campus #Online #Recruitment #Ads #Drain #Finances

January 18, 2025

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January 17, 2025

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December 31, 2024

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Tag: ads

Apple in discussions to test out ads on Elon Musk’s X: report

X controversies:

Apple’s potential return to X:

X after Musk:

Fox Super Bowl ads beckon up to $8 million apiece

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AWS, Robotics, Prime Video Ads Fuel Amazon Growth Potential: Analysts – Amazon.com (NASDAQ:AMZN)

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