AGP Executive Report

Publisher Pressures: Malaysia has added RM30 million to its Media Innovation Fund as local outlets lose advertising revenue to Meta, Google and TikTok, with funding aimed at digital skills and technology. AI & Ad Platforms: Google is expanding ads in AI search to more countries, even as Alphabet’s sharp share-price fall fuels questions about AI’s impact on search advertising and whether Big Tech’s spending will pay off. Amazon’s ad business approached $20 billion in Q3. Political Advertising: US midterm campaigns are driving record ad spending, with AI-generated attacks and negative messaging prominent. A judge ordered three taxpayer-funded Trump ads removed, while some PACs pulled millions in planned TV buys. Brand & Streaming: UK retailers have begun their Christmas ad push, with Argos leaning on catalogue nostalgia and Tesco taking a cinematic approach. YouTube Music and Premium passed 150 million combined subscribers, while CJ ENM is bringing Korean dance programming to North American ad-supported streaming. Ad-Tech Scrutiny: A report says an Israeli firm used online ads to track Starlink users across more than 100 countries, raising fresh privacy concerns about targeted advertising.

AI Ad Economics: Alphabet’s record sell-off has intensified worries about Google’s slowing ad growth. The company is expanding sponsored placements in AI search across more markets, even as it says those ads earn less than traditional search. Meta faces a similar test: S&P turned its outlook negative as AI spending and cash outflows mount, leaving its ad business to prove the investment can pay off. Election Ad Blitz: U.S. midterm spending is on track to top $11 billion, with data centers becoming a campaign issue and AI-generated attack ads drawing fresh scrutiny. A judge also ordered the Trump administration to pull taxpayer-funded political ads. Media & Retail: UK retail media spending jumped 31% as the market heads for a record festive quarter, while TV ad volumes fell 6% in January–September. Amazon’s ad business neared $20 billion in Q3 but missed targets. Ad Standards: A judge allowed consumer-deception claims over McDonald’s McRib marketing to proceed; Rogers was fined $15 million over its “unlimited” wireless advertising.

AI Spending: S&P cut Meta’s outlook to negative, warning that surging AI investment and rising leverage may outpace the company’s ability to turn AI into revenue. Creative Counterpoint: Prada’s hand-drawn holiday campaign puts human craft at the center as brands race to use generative AI. Media Business: India’s JioStar lifted quarterly revenue 10% on subscription and digital ad growth, even as profit fell; Amazon’s ad growth also showed signs of cooling. Search and Platforms: Google is expanding ads in AI Mode worldwide as search growth slows, while Reddit plans to make logged-in access the norm to improve ad targeting. Market Momentum: UK retail media spending jumped 31%, helping drive a record festive-quarter outlook for the advertising market. Election Ads: Midterm campaigns are flooding screens with record spending, while regulators and courts are scrutinizing misleading claims and taxpayer-funded political spots.

AI Advertising: Google is expanding sponsored placements in AI search to more countries as traditional search growth slows, while acknowledging AI Mode ads earn less than standard search ads. Amazon’s ad business neared $20 billion in Q3, but missed targets as it bets on agentic AI. Platform Shifts: Reddit plans to require logins to view posts, a move tied to its growing ad business amid falling search traffic. Media Spend: UK retail media investment jumped 31%, pointing to a record festive quarter, even as TV ad volumes fell 6% in India over January–September. Ad Rules: A U.S. judge ordered three taxpayer-funded Trump administration ads pulled from TV and social media, while Canada’s Rogers was ordered to pay $15 million over misleading “unlimited” wireless plan advertising.

AI Search Ads: Google is expanding ads in AI Mode to more countries as Search growth cools, but says the format currently earns less than traditional search ads. ChatGPT ads are also live, opening another battleground for marketers. Platform Economics: Amazon’s ad growth slowed to 11% in Q3, its weakest since the company began reporting the figure, as online sales also cooled. Reddit, meanwhile, plans to limit logged-out browsing to deepen engagement and improve ad targeting. Market Watch: UK adspend rose 11% in Q2, led by retail media, cinema and social; retail media spending is up 31% as brands head into the festive quarter. Agency Business: WPP reported a 2.1% revenue decline, with APAC its weakest market, despite a return to growth in India. Ad Standards: India’s advertising watchdog found every nutraceutical ad it reviewed failed its standards, renewing scrutiny of health claims.

Retail Media: DoorDash’s planned $17 billion acquisition of Instacart would combine delivery and grocery technology with both companies’ advertising tools, giving retailers a larger platform to reach shoppers. AI Search Ads: Google is expanding ads in AI Mode even as Alphabet says those searches currently earn less; the company’s shares plunged after results highlighted pressure on search monetization and heavy AI spending. Election Spending: U.S. midterm ad wars are intensifying, with Texas alone drawing more than $500 million in political advertising and record spending expected across key races. Ad Market Outlook: UK advertising spend is forecast to hit a record £14 billion in the fourth quarter. Platform Trust: Meta faces growing scrutiny over scam ads, while TikTok has launched an Asia-Pacific brand safety centre for advertisers.

Digital Ad Slowdown: Alphabet shares fell more than 10% after ad revenue rose 11% to $82 billion, missing forecasts. Search growth slowed to 12% and YouTube ad growth to 9%, even as Google Cloud revenue more than doubled amid heavy AI spending. Election Spending: U.S. midterm advertising is projected to hit a record $11.6 billion, with AI-generated attack ads adding to concerns about deception and disclosure. Privacy and Trust: Google’s use of connected Gmail and Photos data to personalize ads is drawing scrutiny, while Rhode Island has sued Meta over alleged profits from scam ads. Adtech Shifts: ChatGPT ads have reached 100,000 advertisers across 26 more countries, as publishers and platforms move to automate campaign buying and targeting.

Platform Accountability: Meta has indefinitely delayed new commercial terms after publisher objections, while fresh scrutiny over scam ads includes a lawsuit alleging the company put profits ahead of user protection. AI Ad Growth: ChatGPT ads have reached 100,000 advertisers and expanded to 26 more countries, while StackAdapt is adding cross-channel retargeting capabilities for ChatGPT campaigns. Data and Privacy: Google’s updated policy allows Gmail and Photos data to inform personalized ads when users enable Personal Intelligence, sharpening questions about consent and targeting. Ad-Tech Risks: A Reuters report says an Israeli firm allegedly used online ad auctions to gather location data linked to Starlink users in more than 100 countries; the findings do not establish that users were successfully tracked. Regulation: Samsung faces a multimillion-dollar fine over ads that allegedly overstated Galaxy gaming performance, adding to growing scrutiny of misleading claims.

Ad Claims Under Scrutiny: South Korea’s competition regulator plans to fine Samsung KRW 20.1 billion for ads that failed to disclose gaming performance limits. Hungary fined Aldi over unsupported “widest selection” and “best deals” claims, while the UK upheld a complaint over Attraction Tickets’ price-match promise. Data and Trust: Google’s updated privacy policy allows Gmail and Photos data to inform personalized ads when a related setting is enabled. Separately, researchers suspect an Israeli ad-tech firm used online ad auctions to gather data that could help track Starlink users across 105 countries; the findings do not show individual users were identified. Election Ad Surge: US political ad spending is projected to hit a record $11.6 billion, as concerns mount over AI-generated attack ads and patchy disclosure rules. Platforms and Budgets: ChatGPT ads have reportedly reached 100,000 advertisers and expanded to 26 more countries. Hindustan Unilever cut quarterly ad and promotion spending 9.3% year on year, even as sales growth reached a 14-quarter high.

Platform Privacy: Google’s policy update allows Gmail and Photos data to inform personalized ads when users enable Personal Intelligence, raising fresh questions about how personal information feeds ad targeting. Ad Market Watch: Investors are looking to Google’s results for signs its AI spending is paying off; advertising sales are forecast at $83.5 billion. NBCUniversal, meanwhile, reported a 15% advertising increase, driven by Peacock and the World Cup. Agency Moves: Nairobi-based Expressions Agency will launch an influencer marketing unit, with a focus on measuring whether creator campaigns deliver business results. Growing Scrutiny: South Korea blocked 420 YouTube ads featuring AI-faked reviews and doctors, while Samsung faces a fine over misleading gaming ads. Rhode Island has also sued Meta, alleging the company profited from scam ads. New Ad Channels: ChatGPT advertising has reached 100,000 advertisers and expanded to 26 more countries, as brands explore emerging AI platforms.

Data and Privacy: Google’s revised policy allows Gmail, Drive and Photos data to inform ad targeting when users connect those services to Personal Intelligence features; the change does not mean Google automatically scans everyone’s files. Platform Competition: Instagram is testing horizontal videos up to 90 minutes, linking Reels to longer content as it takes on YouTube, though its creator-ad model remains unclear. Programmatic Growth: Pinterest has opened video and display inventory to programmatic buyers through major ad platforms, while Stagwell’s acquisition of publisher-services firm Freestar expands its owned-media business. Audio Opportunities: Formula 1 and ad-tech firm Consumable have launched an audio network to extend advertising reach beyond race broadcasts. Election Spending: Super PACs are pouring more than $1 billion into US midterm races, as AI-generated political ads and opaque funding draw growing scrutiny.

Agency and Media Deals: Publicis has expanded its Marcel platform and named Hagedorn its first CEO, while Stagwell acquired publisher-services firm Freestar. Pinterest has also opened video and display inventory to programmatic buyers. Privacy and Targeting: Google’s policy update says Gmail and Photos data may inform personalized ads when Personal Intelligence is enabled, sharpening scrutiny of how user data shapes targeting. Election Advertising: AI-generated campaign ads are spreading as spending surges and voters report ad fatigue. California and Pennsylvania are among the states moving to require disclosure of AI-made political content. Platforms and Budgets: OpenAI’s ad offering has reportedly passed 100,000 advertisers and expanded to 26 more countries, while brands are looking to AI for faster, cheaper festive campaigns. Streaming Ads: An Indian consumer commission ordered Amazon to refund a Prime subscriber after ads appeared during an active annual membership and an extra fee was charged for ad-free viewing.

Ad Targeting: Google’s privacy update allows Gmail, Drive and Photos data to inform personalised ads when users enable Personal Intelligence, drawing fresh attention to the trade-off between relevance and privacy. Thailand will require ID for paid social ads from November. Streaming & Spend: Netflix is adding targeting and measurement capabilities with The Trade Desk, while a new study says video-on-demand ads can drive short-term sales. Spotify is also seeking a larger share of festive ad budgets. Brand Moves: McDonald’s is ending its 32-year FIFA World Cup sponsorship, opening a high-profile gap in the tournament’s marketing lineup. Political Advertising: AI-generated campaigns are intensifying scrutiny ahead of the U.S. midterms, as political ad spending tops $10 billion; Pennsylvania has enacted disclosure rules for AI-made ads.

Connected TV: Instagram’s TV app has reached Apple TV, its fourth platform in 10 months, widening the screen for Reels, longer videos and live shows. AI Ad Rules: Pennsylvania’s new law requires clear labels on ads using AI-generated or modified content, adding disclosure obligations for campaigns shown in the state. Platform Growth: ChatGPT ads have expanded to 26 more countries, with more than 100,000 advertisers now using the platform. Privacy: Google says Gmail and Photos data may inform personalized ads when its Personal Intelligence feature is enabled, putting renewed focus on consent and targeting. Industry Results: Omnicom reported 7.2% third-quarter growth, led by media. Scam Ads: Rhode Island is suing Meta, alleging its platforms profit from scam advertising and have failed to protect users.

Ad Targeting: Google’s updated privacy policy says Gmail, Drive and Photos data may inform ads when users connect those services to products such as Search or Gemini, prompting fresh privacy concerns. AI Ad Rules: AI-generated political ads are surging ahead of the US midterms, with an estimated $137 million in spending; Pennsylvania and California are among the jurisdictions requiring disclosures. Platform Scrutiny: Rhode Island sued Meta, alleging it profited from scam ads across its platforms. Industry Results: Omnicom reported 7.2% third-quarter growth, led by media, while Netflix shares fell after the company lowered its advertising outlook. New Ad Channels: OpenAI has expanded ChatGPT ads to 26 more countries and says more than 100,000 advertisers have used the platform.

Streaming Ad Outlook: Netflix shares fell after the company cut its ad-revenue forecast, even as NBCUniversal reported advertising growth of 15%, led by Peacock and the World Cup. AI Ads: OpenAI says ChatGPT ads have reached 100,000 advertisers and expanded to 26 more countries. AI-generated political spots are also spreading through the US midterms, prompting new disclosure rules and calls to pull ads. Privacy & Trust: Google’s updated settings may allow Gmail and Photos data to inform ad targeting. Rhode Island sued Meta over alleged profits from scam ads, while the EU opened a probe into Booking.com over scams and hidden advertising. Ad Rules & Reach: Canadian lawmakers are advancing limits on gambling ads during sports broadcasts, and the OAAA launched a programmatic and automation center for out-of-home advertising.