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CMO TLDR: Your Weekly Marketing Brief
Weekly Digest - February 7, 2025
Peter Brendan
February 07, 2025
CMO TLDR: Your Weekly Marketing Brief
Earnings Updates
Alphabet Q4 Earnings Show AI and Election Ads Boost Revenue
Alphabet's Q4 2024 revenues surged by 12% to $96.5 billion, fueled by AI enhancements and U.S. election ad spending, with Google Search and YouTube at the forefront. Marketers should note the rising impact of YouTube ads on retail and holiday campaigns, with significant gains from AI-driven Demand Gen strategies, evidenced by Petco’s 275% higher return on ad spend. Google’s AI advancements, like Gemini 2.0 and AI-driven video campaigns, are reshaping advertising efficiency and creativity, signaling transformative shifts for 2025.
Publicis Bets on Data, AI for Future Growth After Solid 2024
Publicis Groupe concluded 2024 as the world's largest advertising entity, boasting a strong +5.8% organic growth and an impressive 18% operating margin, despite macroeconomic uncertainties. Major acquisitions enhanced its strategic communications, influencer marketing, and e-commerce solutions, while Epsilon's data-driven capabilities bolstered personalized marketing efforts. Looking ahead to 2025, Publicis aims for a 4-5% organic growth, focusing on first-party data, AI, and integrating creativity with data to maintain its industry-leading position.
Criteo Rides Retail Media Boom, Sees Continued Growth Ahead
Criteo reported record financial results, fueled by 25% YoY growth in Retail Media Contribution ex-TAC, cementing its leadership in retail media. The company's AI-powered Commerce GO platform and strategic partnerships with Microsoft and agencies are driving this growth, enabling full-funnel advertising strategies and expanding into social commerce. With retail media projected to grow 20-22%, Criteo is well-positioned for continued success.
Omnicom Posts Solid Q4, Full-Year Growth; IPG Deal Looms
Omnicom Group showcased robust financial health with a 5.2% organic revenue growth in 2024, hitting $15.7 billion in total revenue and a Q4 EPS of $2.26. Key growth areas included Media & Advertising and Precision Marketing, while regional growth was spearheaded by the U.S. (9.9%) and Latin America (16.1%). Looking forward, Omnicom plans to enhance its portfolio through the proposed acquisition of IPG and strengthened partnerships with giants like Amazon and Google, all aimed at driving innovation and anticipated to boost earnings in 2025.
NYT Hits 11.4 Million Digital Subs, Digital Ad Revenue Climbs
The New York Times reported strong digital growth with 350,000 new subscribers in Q4 2024, boosting their total to 11.43 million and increasing digital subscription revenue by 16% YoY. Digital advertising revenue also grew by 9.5%, due to higher revenues from direct-sold display advertising and programmatic advertising Notably, operating profits increased by 13.6% with a 20.2% profit margin, driven by strategic capital moves and advancements in AI-powered ad products, making digital channels essential for future growth.
Snap's DAUs Surge, Ad Innovations Drive Q4 Revenue Beat
Snap Inc's Q4 saw a 14% revenue surge to $1.56 billion, fueled by a 9% rise in Daily Active Users to 453 million, with growth driven by direct response ads and expanding SMB participation. New ad formats like Sponsored Snaps achieved a 30% reach increase, while augmented reality innovations engaged 400 million users, demonstrating significant potential for deepening brand engagement. Looking ahead, Snap anticipates reaching 459 million DAUs by Q1 2025, with revenue projections aligned between $1.325 billion and $1.360 billion.
Amazon Sees Strong Ad Growth, Prime Members Drive Holiday Sales
Amazon's Q4 sales rose 10% to $187.8 billion, fueled by a record holiday season and continued strength in its advertising services, which grew 18% year-over-year. Prime member engagement remained a key driver, with faster delivery speeds and a wider selection of same-day and overnight items. The company's focus on content, including Prime Video hits and Thursday Night Football, alongside innovative shopping experiences like Amazon Haul, presents valuable opportunities for brands.
Quick Links
Publicis became the leading advertising giant in 2024, surpassing WPP through strategic acquisitions and digital marketing growth.
Google's Gemini AI Assistant to Potentially Include Native Ads. While Gemini currently offers a free tier and paid subscriptions, Google's Gemini AI assistant may eventually incorporate native ads.
StackAdapt is poised for major growth with a $235 million funding boost aimed at global expansion and enhancing AI capabilities. This funding opens new opportunities for marketers to access untapped markets and leverage advanced AI tools for more efficient and personalized campaigns.
As the original placement attribute is deprecated in the OpenRTB specification, adopting the plcmt attribute is vital for enhanced transparency, fostering trust, reducing discrepancies, and pushing the industry towards standardization for consistent understanding and delivery of ad placements.