20/03/2017 World Business Report


20/03/2017

Similar Content

Browse content similar to 20/03/2017. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Now for the latest financial news with Sally Bundock

:00:00.:00:07.

As more advertising dollars are spent on line companies

:00:08.:00:21.

are being warned to make sure they get what they pay for.

:00:22.:00:27.

And two of India's largest telecoms firms, Vodafone India

:00:28.:00:29.

and Idea Cellular, are merging to become India's

:00:30.:00:32.

Also in the programme, the President of Uber says

:00:33.:00:52.

he is leaving the company after less than six months in the job.

:00:53.:00:56.

One thing that all businesses have in common, regardless

:00:57.:01:01.

Making yourself known brings in customers and their cash.

:01:02.:01:05.

But advertising can also be a sizeable investment,

:01:06.:01:07.

and whatever size of business you have, you don't want

:01:08.:01:10.

That's bound to be discussed at one of the industry's big annual events

:01:11.:01:16.

starting in London in the next few hours.

:01:17.:01:18.

So, how much is spent on advertising?

:01:19.:01:20.

Worldwide, across all forms of media, it's estimated to be

:01:21.:01:23.

at almost half a trillion dollars a year.

:01:24.:01:25.

But where companies chose to spend their ad dollars is changing.

:01:26.:01:28.

About 38% went on traditional TV adverts last year with 36%

:01:29.:01:31.

This year, on-line ads are set to become the biggest slice

:01:32.:01:35.

But the platforms which host the ads, like Google and Facebook,

:01:36.:01:39.

are grappling with a big rise in advertising fraud.

:01:40.:01:41.

This comes in the form of bots and software that tricks websites

:01:42.:01:44.

into thinking more people have actually seen an ad,

:01:45.:01:47.

which means advertisers are overcharged for it.

:01:48.:01:49.

And this problem is growing, and some of the leading players

:01:50.:01:52.

in the industry are now warning that 20% of all digital ad spending

:01:53.:01:55.

is in danger of being wasted on fraud.

:01:56.:01:57.

Here's what Sir Martin Sorrell, Chief Executive of the world's

:01:58.:02:00.

biggest ad agency, WPP, told us about some of these issues

:02:01.:02:03.

The measurement of traditional media is the efficient. But the

:02:04.:02:38.

measurement of new media is virtually non-existent. -- pretty

:02:39.:02:44.

efficient. We have to expand the measurement capability to make sure

:02:45.:02:47.

we are getting the proper returns. Other issues like fake news, which

:02:48.:02:52.

you know a fair bit about on the BBC in terms of subject matter on brand

:02:53.:02:58.

safety and media placement on fraud, all of those issues are also

:02:59.:03:00.

important as well. With me is Ross Barnes,

:03:01.:03:01.

Chief Technology Officer Advertising Week Europe opens

:03:02.:03:03.

in London today at a time when new research suggests that

:03:04.:03:07.

nearly 20% of total digital ad spend You will be one of the big speakers.

:03:08.:03:15.

This is a key subject of discussion. Explained how this can go on when

:03:16.:03:20.

people are paying more than they need to for advertising. -- explain.

:03:21.:03:25.

This is a significant problem the industry is facing at the moment to

:03:26.:03:30.

be with the rising digital ad spend, we are seeing more ways in which

:03:31.:03:37.

fraudsters are mimicking human behaviour. A huge proportion of on

:03:38.:03:43.

line ad spend is being wasted on fake views, add fraud, as the

:03:44.:03:51.

industry calls it. -- ad fraud. How do you make sure your money is being

:03:52.:03:54.

well spent on Google or whatever rather than on robots clicking with

:03:55.:04:01.

algorithms? It is not easy to solve. There is no silver bullet.

:04:02.:04:07.

Fraudsters are getting more and more sophisticated. We recommend to our

:04:08.:04:12.

clients they use ad verification software. Before the ad appears, it

:04:13.:04:19.

makes sure it is a human and it is an appropriate website and the ad is

:04:20.:04:26.

actually seeing on the page at all. We say that all of our clients

:04:27.:04:29.

should use this software because 1- 2% of your ad spend of your budget

:04:30.:04:37.

could be saved from fraud. But the big sites you want to be on like

:04:38.:04:41.

Google, they will not be happy with third-party software being used. Is

:04:42.:04:47.

that correct? Facebook and Google are unique. They are platforms and

:04:48.:04:52.

consume a large amount of digital ad spend. Because of the value of the

:04:53.:04:57.

data they create, they are what is called wall gardens. And within

:04:58.:05:02.

those wall gardens, they reluctant to open up to third-party

:05:03.:05:06.

verification supplies. So on some platforms we are not able to make

:05:07.:05:15.

sure their content is appropriate. I don't know if you are a luxury

:05:16.:05:20.

holiday resort, you could appear next to something that is not in

:05:21.:05:24.

line with your company at all. Exactly. That was talked about in

:05:25.:05:30.

the UK press this week, some advertisers were appealing against

:05:31.:05:35.

inappropriate content. Content that, certainly, as a brand, you do not

:05:36.:05:40.

want to appear next to. This week, Google and Facebook among other

:05:41.:05:47.

companies will face questions about what they are doing to combat this

:05:48.:05:53.

brand safety issues bite it is so complicated, isn't it? Honestly.

:05:54.:06:01.

Thank you so much for coming in. We will see what comes out of that. Let

:06:02.:06:05.

us move on to a story breaking in the last hour.

:06:06.:06:08.

In the last hour, two of India's largest telecoms firms,

:06:09.:06:10.

Vodafone India and Idea Cellular, announced they are merging.

:06:11.:06:13.

The new joint entity will become India's largest telecoms operator.

:06:14.:06:16.

Shares in Idea rose by over 14% on the news.

:06:17.:06:18.

Recently, rival telecoms firm Bharti Airtel announced

:06:19.:06:21.

that it is buying Norway-based Telenor.

:06:22.:06:23.

So, why is India's telecommunications industry

:06:24.:06:25.

The BBC's Sameer Hashmi reports from Mumbai.

:06:26.:06:40.

Two decades ago, most people in India had to come to places like

:06:41.:06:48.

this to make a phone call. And now, India has the second-largest mobile

:06:49.:06:51.

phone market in the world, with over a billion users. And there are a

:06:52.:06:57.

dozen companies operating mobile phones in this highly competitive

:06:58.:07:03.

market. But Vodafone India and Idea Cellular merging, the industry is

:07:04.:07:06.

expected to go through a major shakeup in India. With nearly 400

:07:07.:07:11.

million customers, the new company will become one of the largest

:07:12.:07:16.

telecom operators in the world. This is the second major deal in India's

:07:17.:07:23.

the communications market. Cutthroat competition has severely damaged the

:07:24.:07:31.

profitability of these phones. Jio has crossed the 100 million customer

:07:32.:07:35.

mark. Last year, Jio, which was initially allowing mobile phones for

:07:36.:07:41.

free, has changed the market further. This is left companies to

:07:42.:07:51.

look for ways to combat this. Jio is offering data at dirt cheap prices,

:07:52.:07:57.

forcing others to offer it as well. We will adopt digitisation and

:07:58.:08:01.

digital life faster than anyone else in the world. This optimism extends

:08:02.:08:08.

from the fact that India is one of the fastest to the communication

:08:09.:08:12.

growing markets in the world. They will switch to it completely by

:08:13.:08:19.

2020. And there is more consumption of data because of this. Many people

:08:20.:08:27.

are using far less efficient technology. As we get more and more

:08:28.:08:33.

used to efficient technology, all the factors will combine together

:08:34.:08:39.

with a low-cost smartphone using efficient technology at their

:08:40.:08:42.

fingertips. And, again, price points, which affordable, will

:08:43.:08:52.

expand. India is a tough market for India telecommunication firms. It

:08:53.:08:57.

will be customers and not service providers which will remain the

:08:58.:08:59.

winners in this competitive market. Uber president Jeff Jones is leaving

:09:00.:09:02.

the company after less A source at the taxi booking app

:09:03.:09:06.

told the BBC the resignation They said Mr Jones was frustrated

:09:07.:09:10.

the company was hiring a new Chief Operating Officer

:09:11.:09:13.

and that he was not But according to technology news

:09:14.:09:16.

site Recode, Mr Jones left because of Uber's continued struggle

:09:17.:09:20.

with issues around sexism Greece is still waiting to secure a

:09:21.:09:35.

provisional agreement with creditors for another instalment of the

:09:36.:09:40.

country's $92 billion bailout. So far, there have been many

:09:41.:09:44.

encouraging noises from the IMF in Germany. Without an agreement,

:09:45.:09:47.

Greece could run out of money as early as July. A quick look at the

:09:48.:09:51.

market. A brand-new trading week opening up in Asia. Japan is close

:09:52.:09:59.

for a holiday. The price of oil is going the last deal. I will see you

:10:00.:10:01.

soon.

:10:02.:10:07.

Download Subtitles

SRT

ASS