Daily Edition · Page 10

THE DAILY INDEX

Technology, AI, software, security, crypto and business

NEWS & TRENDS

TLDR Marketing

APPLE BEGINS SELLING NEWS ADS DIRECTLY AS ITS ADVERTISING AMBITIONS GROW

Apple has begun selling advertising inventory directly within Apple News. It is giving publishers a 70% revenue share and targeting curated content sponsorships like the Met Gala. The move aligns with Apple's growing advertising ambitions, as its global ad revenue is projected to reach $11 billion in 2024, up from $8.9 billion last year. This expansion follows slowing hardware sales and signals a broader strategy to boost revenue streams through its highly engaged audience.

BUSINESS SPENDING ON AI SURGED 500% THIS YEAR TO $13.8 BILLION, SAYS MENLO VENTURES

Business spending on generative AI rose 500% this year, reaching $13.8 billion, up from $2.3 billion in 2023. OpenAI's market share in enterprise AI dropped from 50% to 34%, while Anthropic doubled its share to 24%. Large language models received $6.5 billion in investments, with code generation cited as the top use case. AI agents are emerging as a key trend, with companies like Google and OpenAI advancing technology to handle complex, multi-step tasks.

WHY BEAUTY BRANDS ARE TURNING TO PODCASTS TO ADVERTISE

Beauty brands are turning to podcasts to build trust with audiences, especially Hispanics, who spend 37% more annually on beauty than the general market. Sonoro Global Media, which caters to multicultural listeners, sees brands like Ulta and Estée Lauder spending $200K on podcast ads. Podcasts influence 60% of men and 62% of listeners aged 18–34, driving US ad spend to $2.28 billion in 2024, up 15.9% YoY.

WHY ‘RISK ON MARKETING INVESTMENT' IS THE NEW ROI

A Fortune 100 CEO redefines ROI as "risk on marketing investment" to emphasize the importance of managing uncertainties and opportunity costs in marketing spend. Traditional ROI metrics are ineffective, he believes, with up to 30% of billion-dollar marketing budgets getting wasted. The CEO advocates reallocating funds to initiatives like talent acquisition and market expansion. He stresses the importance of reputation and brand trust, noting that demand generation often fails to demonstrate tangible results. C-suites increasingly demand precise, data-driven accountability in marketing and other functions, driven by external pressures like economic volatility and shareholder scrutiny.

TLDR IndexPage 10