Snap has weaker Q2 but makes progress: The company posts a smaller loss, demonstrates a 14% increase in DAUs, and sees strides in innovation.

My AI is an advertising play. At a Wall Street Journal event during the 2023 Cannes Lions International Festival of Creativity on Tuesday, Snap CEO Evan Spiegel said that insights gathered from conversations on My AI could help improve advertising on Snapchat.

Are social media AI chatbots just a gimmick? Moves from Snap and other platforms are revealing their potential as advertising tools.

ChatGPT fever has hit social media. Advertisers need to pay close attention, but generative AI social media chatbots still have a lot to prove—and challenges to overcome.

The 2023 upfront market will likely be the last one transacted primarily on Nielsen’s legacy currency. A shift from traditional TV to digital video advertising is the main factor driving this change.

Total media ad spending in the US will pass the $350 billion mark this year, but growth is slow at just 3.8%, according to our forecast. “That is not great compared to almost anything in recent memory; however, there is a U-shape to this line,” our analyst Ethan Cramer-Flood said during our “US Digital Ad Spend Outlook” webinar. Connected TV and retail media will prove to be bright spots, but social media could be a challenge.

The battle against TikTok took center stage at this week’s NewFronts, as Meta, Snapchat, and YouTube unveiled new ad products tied to short-form video. While none of them can compete with TikTok’s lock on the youth market or the enormous amount of time its users spend on the app, these new ad products are an attempt to bring Reels, Spotlight, and Shorts into greater parity with TikTok’s ad formats.

Next year, Snapchat’s ad revenues will increase by 10.4% worldwide after a year of almost no growth. Its ad revenues will rise from $3.80 billion this year to $4.20 billion next year, but they’ll still make up just 0.6% of total digital ad revenues worldwide.

Snap is having trouble monetizing because Snapchat is primarily a chat platform, and “messaging apps are notoriously difficult to monetize,” according to our analyst Jasmine Enberg. The company could lean into its software as a service retail offerings, but consumers also aren’t sold on AR for shopping. Just 12.4% of US adults use AR for shopping, according to our forecast.

Snapchat's Q1 revenues fall short of expectations: Despite lower ARPUs, Snap's saving grace is its coveted younger audience.

The way advertisers think about TV is changing as it shifts from linear to ad-supported streaming. Here are three developments shaping TV ad measurement, streaming behaviors, and consumer targeting.

Amazon’s ad business powered the retailer to a better-than-expected Q1: A 21% increase in ad revenues helped offset flat sales growth in its ecommerce business.

As retail media enters its next phase, marketing efforts are moving up the funnel toward new formats like open web, social, and streaming TV. By leveraging partnerships with social media companies, streaming platforms, and publishers, retail media networks can reach consumers earlier in the buying cycle and build brand awareness.

Nearly three-quarters of US TikTok users will also use Instagram this year, making it the most popular alternative to the social video app, per our forecast. That’s good news for Instagram Reels, which is positioning itself as a viable successor in the event of a US TikTok ban.

Friction developing between Microsoft and OpenAI: The tech companies compete for AI customers under a profit-sharing model that could undermine Microsoft’s cloud growth. An acquisition attempt is likely.

Consumer device and behavior trends are affecting payment providers’ strategies across retail, P2P, B2B, disbursement, and cross-border channels. Here’s what that means for the payments ecosystem.

Snap continues its Q3 storyline into Q4: Users top estimates in fourth quarter, but dwindling cash is a hurdle to innovation and growth.

Can a new service help Shopify attract more enterprise retailers? Commerce Components by Shopify allows large retailers to integrate Shopify’s tools and services into their online platforms.

Gen Zers aren’t watching appointment TV. They’re not even the biggest cohort of connected TV users. (That distinction goes to millennials.) Instead, Gen Z is watching short digital videos and looking for new ways to interact with friends. Here are five charts on what Gen Z’s media consumption looks like.

Ads go live on Netflix and Disney+, YouTube ad revenues decline, and streaming services get creative about financing content production.