Fun And Games Until Someone Loses; Forbes Fires Freelancers, Blames Google | AdExchanger

Bet Your Bottom Dollar

The proliferation of legal sports betting has made tough political and societal issues quickly bubble to the surface, as The New York Times reports.

And – surprise, surprise – advertising is often at the center of the problem.

There are numerous state-level class-action suits over allegedly deceptive advertising claims. Practically all sports gambling apps promote “risk-free” or “no-regret” first bets with a promo credit. 

Also, as these apps get more sophisticated, they’re able to recognize which bettors win big on their platforms and have begun blocking them or capping the bets they can place. 

Sportsbooks, of course, don’t restrict spending when people lose a ton of money in a short time, which is what they should do. 

The potential for cynical, problematic ad targeting is also a problem. 

If sportsbooks can recognize sharp bettors (those who consistently beat their betting lines), perhaps they can zero in on the flats, too. Targeting by customer lifetime value makes sense for retail brands. With a sportsbook, that means people with high lifetime losses. 

There is a bill in Congress now that would forbid in-game sports gambling ads.

Bad Reputation

Google updated its search rankings in November to crack down on spammy affiliate marketing sites run by big-name publishers. This so-called “site reputation abuse” policy has already caused traffic to crater for some sites.

Now, Forbes says it will stop hiring outside writers to create product reviews for one of its affiliate sites, according to a note sent to freelancers that was seen by The Verge. Forbes blames Google for the move.

Google’s policy bodes ill for the site in question Forbes Vetted.

One freelancer who wrote for Forbes Vetted said they were paid $3,000 per review. That’s a huge paycheck in today’s digital media market, which suggests the site has been a money maker for Forbes.

Google, for its part, claims that it’s trying to prevent large general-interest publishers from using their high search rankings to swipe affiliate revenue from dedicated review sites and blogs. In particular, Google’s search update targets pubs that outsource their affiliate businesses to third parties, content farms or, increasingly, generative AI.

On The Clock

The TikTok drama just won’t quit.

Two weeks ago, a US federal court upheld the ban and denied an injunction sought by TikTok to delay implementation, currently set for January 19 – a day before President-elect Trump assumes office. 

Now, the Supreme Court has agreed to hear TikTok’s appeal, CNBC reports. SCOTUS is waiting until oral arguments on January 10 to decide on a potential stay. 

The ad industry seems to be operating under the assumption that TikTok advertising and ecommerce will move forward mostly unaffected. And TikTok Shop, which was a nonentity in the US at the start of 2024, has gross sales of $8 billion in the US this year. 

It’s one of the last affiliate marketing revenue lifelines and a major ecommerce conversion hub. 

In other words, can we really lose TikTok? 

Well, yes. 

ByteDance, TikTok’s Chinese owner, has been steadfast that it will not sell off the US business, which is what the law calls for to avoid a ban. It’s also important to note that people will still be able to use the app if they already have it. US-based app stores just can’t allow future TikTok downloads or updates. 

But life, uhhh, finds a way. 

But Wait! There’s More!

Nielsen releases attention metrics for evaluating ad creative, including a partnership with attention measurement vendor Realeyes. [Ad Age]

A Q&A with Rebecca Bauer-Kahan, chair of California’s privacy and consumer protection committee. [Pluribus News]

Apple halts work on a project to build an iPhone hardware subscription service. [Bloomberg]

You’re Hired

Lauren Douglass joins Brand Innovators as chief brand officer. [release]

Nexxen taps Carine Spitz to lead West Coast sales and client services. [release]