Meta adds more advertising incentives on Reels, WhatsApp to debut watch app on Wear OS, and other notable stories from this week
Welcome to “#SocialStocks,” The Fly’s weekly recap of Wall Street’s reactions to social media stock news.
YOU MAY PROCEED:
A Delaware judge is allowing investors’ lawsuit accusing Facebook (META) directors of relaxed oversight related to Cambridge Analytica to proceed, reported Bloomberg.
SHOP OR DROP:
TikTok disputed a report from the Wall Street Journal that said the launch of its U.S. shopping platform has been delayed to June from early spring, Akash Sriram of Reuters reported. The report, which cited unnamed sources, said the app’s Chinese owner ByteDance’s decision was based on growing concerns about the platform’s U.S. future. A TikTok spokesperson said in an email statement to Reuters that the launch has not been delayed.
WATCH THE WATCH:
Google (GOOG, GOOGL) says WhatsApp, owned by Meta Platforms, is bringing its first ever watch app to Wear OS this summer.
REEL ADS:
Meta announced an expansion of Ads on Reels tests so more creators can earn money for creating and sharing engaging public reels.” In the statement, the company said, “We’re inviting thousands more creators on Facebook to join our updated tests, including many of the creators who previously participated in our Reels Play bonus program on Facebook. And in the coming weeks, we’ll begin testing a similar program on Instagram. We’re also evolving the program to pay creators based on the performance of their public reels, not the earnings of ads on their reels. This means creators can focus on creating engaging content while we optimize the ad experience for advertisers and people. Payouts will be determined by the number of plays. The better a creator’s reel performs, the more they can earn. Over time we may begin to incorporate other signals into payouts. Many variables outside of creators’ control have traditionally influenced their ad earnings, such as how many ads have already been shown to the person viewing their content or whether there’s a relevant ad to deliver that viewer. With a performance-based model, creators can focus on the content that’s resonating with their audiences and helping them grow; advertisers get access to more ad inventory to reach more people; and people get a more consistent viewing experience with more relevant ads. All creators onboarding to the test will automatically be added to the new payout model, and over the coming weeks creators previously testing Ads on Facebook Reels will be transitioned. In addition, we’ll begin to test Ads on Instagram Reels with a similar performance-based payout model among a small group of creators and advertisers in select markets. We also plan to start testing a performance-based payout model for In-Stream ads on Facebook with a small group of creators to support creators making all types of content.
LICENSED:
Zoom (ZM) announced that it has received the Unified License with Access – All/PAN India, NLD National Long Distance, and ILD – International Long Distance from the Department of Telecommunications, FoT, Government of India. With these licenses, the company will be able to offer Zoom Phone, its industry leading cloud PBX service, to multinational corporations and businesses operating in India. “We are thrilled and proud to receive the unified licenses from the Department of Telecommunications. With Zoom Phone, India businesses and multinational corporations can support hybrid work environments, foster greater collaboration among employees and elevate the customer experience,” said Abe Smith, Head of International, Zoom. “This important milestone underscores our continued focus in countries like India, a strategic growth market for Zoom, and our commitment to bringing new and innovative collaboration solutions to our customers.”
ANTITRUST LATEST:
France’s antitrust watchdog has given Meta two months to change its access rules for ad verification partners, arguing the company is taking an unfair advantage of a dominant market position in online advertising, Reuters staff reported. The competition authority specifically said Meta must publish new access rule for partners seeking to use its analytical tools to determine if their online ad campaigns have been seen by actual people and not displayed in a way that can harm the brand’s image. The new criteria must be transparent, objective, non-discriminatory, and proportionate.
CANADA NEWS BILL:
Google and Meta executives say their platforms would withdraw access to news articles in Canada if the proposed Online News Act passes, Canadian lawmakers were told on Wednesday, Reuters’ Sam Jabri-Pickett reported. The proposed legislation would force platforms including Alphabet and Meta to negotiate commercial deals and pay Canadian news publishers for their content.
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Originally Posted May 10, 2023 – #SocialStocks: TikTok denies delay of U.S. shopping platform launch
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