Consumer products companies account for only six percent of the total U.S. interactive spend today, but there will be a compound annual growth rate of 36 percent through 2012, with a 50 percent rise this year, and with online video growing faster than any other platform, according to a Forrester Research IM Spend study, released May 2.
The “declining effectiveness of television ads, recession-tightened marketing budgets and better ways to execute and measure online ad campaigns against branding goals” are the major reasons for the increased interactive spend.
The online video spend will jump from $110 million in 2008 to $208 million in 2009 and $834 million by 2012. The main reasons for the increases are the ads “work for branding goals like awareness and customer engagement and they have a low cost of entry.” Online video ads can be bought on a cost per impression basis, which is “a model friendly to CP firms since it’s similar to offline media buying models, offered by media players with whom most CP firms already have relationships, and can be launched with repurposed existing video assets.”
Supreme Court Allows Multibillion-Dollar Class Action Lawsuit To Proceed Against Meta
The Supreme Court is allowing a multibillion-dollar class action investors' lawsuit to proceed against Facebook parent Meta, stemming from the privacy scandal involving the Cambridge Analytica political consulting firm.
The justices heard arguments in November in Meta's bid to shut down the lawsuit. On Friday, they decided that they were wrong to take up the case in the first place.
The high court dismissed the company's appeal, leaving in place an appellate ruling allowing the case to go forward.
Investors allege that Meta did not fully disclose the risks that Facebook users' personal information would be misused by Cambridge Analytica, a firm that supported Donald Trump 's first successful Republican presidential campaign in 2016.
Inadequacy of the disclosures led to two significant price drops in the price of the company's shares in 2018, after the public learned about the extent of the privacy scandal, the investors say.
Meta spokesman Andy Stone said the company was disappointed by the court's action. "The plaintiff's claims are baseless and we will continue to defend ourselves as this case is considered by the District Court," Stone said in an emailed statement.
Meta already has paid a $5.1 billion fine and reached a $725 million privacy settlement with users.
Cambridge Analytica had ties to Trump political strategist Steve Bannon. It had paid a Facebook app developer for access to the personal information of about 87 million Facebook users. That data was then used to target U.S. voters during the 2016 campaign.
The lawsuit is one of two high court cases involving class-action lawsuits against tech companies. The justices also are wrestling with whether to shut down a class action against Nvidia.... Read More