SRAX Recap: U.S. Digital Ad Spend Will Make Up 50% of Total Ad Sales in 2018

In this week’s digital news, Instagram updates its algorithm, new forecast reveals digital ad spend will grow 5.5%, Amazon becomes second most valuable company, and more.

Instagram updates algorithm and extends shopping tool to 8 countries.

Since switching its feed from reverse chronological to interest-based in 2016, Instagram has received major backlash from users. But recently, Instagram announced it’s making changes to “ensure that newer posts are more likely to appear first in feed.” Also this week, Instagram introduced hashtag and profile links in bio so users can express their interests directly in their profile. And, the company expanded Instagram Shopping, the tool that allows brands to tag products within their organic posts, to eight new countries.

Digital ad spend to make up 50% of total ad sales in 2018.

U.S. advertising ad revenue expected to reach $197 billion in 2018, a 5.5% growth from last year, according to Magna’s new forecast. Digital advertising including search, video, display, and social will grow 14% this year to hit $97 billion and make up 50% of total ad sales. Also, events in 2018 including midterm elections, Winter Olympics, and FIFA World Cup will bring in $3.7 billion in incremental net advertising revenue. Get more insight here.

LinkedIn adds “Ask for Referral” tool and new video filters and text.

Now on LinkedIn, job-seekers can filter their search for jobs at companies where they already know someone. And a new “Ask for a Referral” button allows users to request a referral from someone in their network that works for that company. According to LinkedIn, 50% of recruiters say referrals are the leading source of quality hires. And applicants are four times more likely to hear back from a recruiter after requesting a referral. Also this week, the company announced new video filters and text styles for on-platform video content.

Amazon becomes second most valuable publicly listed U.S. company

Amazon shares reached $1,586.51 on Tuesday for a market capitalization of $768 billion. This places the company in second place behind Apple ($889 billion). In February, Amazon bumped Microsoft from third place and now it’s surpassed Alphabet ($762 billion). In the past year, Amazon’s stock has grown 81%. At the rate the stock is climbing, the company could pass up Apple by August. Read more here.

Facebook Messenger adds new group chat features.

Group chats on Messenger now come with admin privileges. Admins can add or remove members in group chats as well as add or remove other admins. Facebook has also made it easier to add people to group chats with joinable links. Anyone in the chat can create a custom invite link and share it with others. With the rate at which they’re adding new features, Facebook Messenger is well on its way to becoming a social network in its own right.

YouTube tests picture-in-picture mode and makes live streaming easier.

YouTube is testing a new picture-in-picture mode, which allows users to continue watching a video in a small window even as you navigate around the website. This feature is common across streaming video services on iOS devices, however it’s not common on desktop. In other YouTube news, creators can now Go Live without any additional streaming software. It’s currently only available on Chrome, but will roll out to more browsers soon.

 

Published on March 23, 2018

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