Welcome to The Polar Report, a curated view of what’s happening in the world of Digital Monetisation, Audience Development, and Measurement. This week, we explore the evolving landscape of the U.S. Ad Industry, with predictions suggesting 5% growth in 2023. We also venture into the world of YouTube, where the platform is delving into bite-sized games. Discover how FAST viewing is reshaping the U.S. media landscape and how X Analytics is undergoing significant changes, leaving implications for its users.

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Monetisation

U.S. Ad Industry Predicted to Grow 5% in 2023

According to a recent industry forecast by analyst Brian Wieser, the U.S. advertising industry is expected to see 5% growth in 2023. While this is a slight slowdown from the 6.5% growth seen the previous year, it represents a return to pre-pandemic economic conditions.

The surge in e-commerce during the pandemic boosted retail media investments and online direct-to-consumer sales, benefiting the advertising industry. However, most experts believed that sustaining such high growth over the long term was unsustainable.

This growth projection is seen as positive news by marketers, indicating a stable industry. However, not all sectors will experience the same outlook. Traditional publishing and TV advertising are expected to face modest declines as channel proliferation slows down.

Traditional media, particularly television, is encountering challenges due to cord-cutting and the ascent of streaming platforms. Advertisers must pivot towards innovative strategies, embracing digital platforms like search, social media, and retail media to remain competitive.

Full Article on AdWeek

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Audience Development

YouTube Explores Bite-Sized Games

YouTube is venturing into gaming with an experimental in-app platform for bite-sized games, currently available to selected beta testers. Users can check for access via the "Playables" tab on YouTube’s home feed, with games playable on both desktop and mobile devices.

While specific titles haven’t been listed, “Stack Bounce” is one known game. YouTube hints at future expansions, including more complex games and saved progress features.

This aligns with a broader trend, as platforms like Netflix and TikTok also explore in-app gaming. Monetisation could come through premium subscriptions or integrated advertisements such as pre-game/mid-game ads and banners, offering new revenue streams and advertising opportunities.

As of 2023, Netflix games average 1.7 million daily users, less than 1% of their subscribers, raising questions about the viability of YouTube’s gaming venture.

Full Article on Engadget

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Measurement

Why FAST Viewing Is Transforming the US Media Landscape

Inscape’s data from millions of VIZIO smart TVs reveals a shift towards streaming and free ad-supported TV (FAST) services, now the primary media consumption mode.

Streaming overtook cable/satellite TV in early 2022 and continues to grow, driven by smart TVs offering instant access to streaming apps and FAST services. FAST viewing time increased by 70% from Q2 2022 to Q2 2023.

Marketers, measurement providers, and media owners must adapt by understanding consumer connection points for effective audience strategies, enhancing ad relevance, and driving ROI through targeted campaigns.

Full Article on Advanced Television

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X Analytics Undergoes Changes: Implications for Users

X Analytics, previously essential for tracking tweet performance, has seen changes with X Premium’s introduction. Users report missing data from August-September, with a message stating improvements are in progress.

Access issues with the beta version of account analytics raise concerns, particularly as certain features become exclusive to X Premium subscribers. Social media managers now face challenges in accessing critical insights for content optimization.

This development underscores the tension between monetisation and user experience, emphasizing the need for accessible data for creators and businesses. Could X risk losing users, or is its platform strength sufficient to retain them?

Full Article on Forbes