CMO TLDR: Alphabet, CTV, and CAPI

Platform Power Plays

YouTube Ad Revenue Surges 13% to $9.8 Billion as TV Viewing Dominates

YouTube's advertising revenue climbed 13% year-over-year to $9.8 billion in the second quarter, beating analyst expectations of $9.56 billion, as the video platform continues to capture ad dollars from traditional television networks. The growth comes as TVs have now become the primary viewing device for YouTube, surpassing mobile for the first time. At the same time, YouTube Shorts has achieved revenue parity with regular YouTube content on a per-watch-hour basis in multiple countries, including the U.S. Parent company Alphabet reported overall revenue of $96.4 billion, up 14%, driven by strong performance across its advertising platforms and AI investments.

Read more on Variety

Google's AI Overviews Hit 2 Billion Users as Search Traffic Shifts

Google's AI-generated search summaries now reach over 2 billion monthly users across more than 200 countries, up from 1.5 billion last quarter, as the tech giant rapidly transforms how people discover information online. The feature is driving increased query volume where it appears, but publishers are paying the price with click-through rates dropping to just 8% when AI Overviews are shown compared to 15% for traditional search results. While Google maintains the same monetization rate from AI-enhanced searches, the shift threatens to further reduce website traffic for publishers already grappling with declining referrals from the search giant.

Catch the full story at Digiday

Holding Pattern

IPG Revenue Slides as Agency Holding Company Prepares for Omnicom Merger

Interpublic Group posted a 3.5% decline in organic net revenue to $2.2 billion in the second quarter, slightly better than the previous quarter but still reflecting the agency holding company's ongoing struggles ahead of its acquisition by Omnicom later this year. The company has reduced its workforce by 6% to 51,300 employees as part of a restructuring program that's expected to generate $300 million in cost savings, while investing heavily in AI tools, including a new commerce optimization platform for CPG brands. IPG executives said they haven't seen clients pull back spending due to economic uncertainty, though a single healthcare client's decision significantly impacted the company's creative services segment.

AdExchanger

CAPI Diem: Seize the Server Side

Ad Platforms Double Down on Server-Side Tracking

Conversion APIs have become essential tools for advertisers looking to bypass browser privacy restrictions and maintain accurate campaign measurement. These server-to-server data pipelines allow brands to send conversion data directly from their backend systems to ad platforms like Meta, Google, and TikTok, circumventing cookie blocks and Apple's tracking limitations. While CAPIs promise more reliable measurement and improved campaign optimization, they require careful implementation and clean data to deliver the promised performance gains of 20% to 30%.

Read more at AdExchanger

Quick Links

Despite Growth, CTV Is 'Not a Perfect Science,' Making It Hard to Justify Prices

Connected TV advertising faces mounting pressure from marketers questioning pricing transparency and measurement accuracy, with some demand-side platforms charging CPMs of $45-$55 compared to $20 for direct buys from streaming services, while ad tech fees can consume up to 40% of media budgets.

Heineken Is Expanding the Use of Contextual Targeting on Its Brand Campaigns

Heineken achieved a 17% boost in brand awareness for its Old Mout cider by combining contextual targeting with attention metrics to identify overlooked digital display inventory, leading the brewer to roll out the strategy across its entire portfolio in the second half of 2025.

To Beat the AI Squeeze, Newsweek Is Building Revenue Beyond Traffic

Newsweek is diversifying away from its current 63% reliance on digital advertising revenue by expanding subscriptions, events, and direct ad deals as the publisher prepares for an AI-driven future where search traffic could decline significantly.

WBD and VideoAmp Expand Partnership for '2025 Upfront and Beyond'

Warner Bros. Discovery signed a multi-year deal with measurement company VideoAmp to provide alternative TV audience measurement solutions across linear, digital, and cross-platform campaigns as the media industry moves toward a multi-currency ecosystem beyond traditional Nielsen ratings.

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