Brian O’Kelley, an executive widely thought of as one of “the godfathers of ad tech,” is back with his latest venture Scope3 — striking a deal to help make ad inventory with a low carbon footprint more easily available to advertisers.
Scope3 is O’Kelley’s third ad tech start-up (previously he sold Right Media to Yahoo and AppNexus to AT&T), which aims to help companies across the ad-tech supply chain reduce the carbon emissions of their activity.
The company’s research estimates that approximately one gram of carbon is produced every time an ad impression is generated, and has now struck a deal with Blockthrough to package inventory with a low carbon footprint and then make it available via private marketplaces.
“Our model is to get buyers to make emissions part of their spending decisions,” O’Kelley, Scope3’s CEO, told Digiday. “We know that publishers and supply-side ad tech companies will go where the money is.”
Marty Krátký-Katz, CEO of Blockthrough, a company that helps publishers recoup revenue that would otherwise be lost to ad blocking, told Digiday ads that adhere to the “acceptable ads program” are less likely to aggravate readers.
It may be that Google having its hands tied is enough to allow innovation, which is great.
Brian O’Kelley, Scope3, CEO
“Because they create a lighter ad experience, they inherently involve a lower carbon experience,” he said. “Acceptable ads do not allow auto-refresh, animated or video ads, and they’re the three big culprits when it comes to cranking up the carbon footprint of publishers’ online ads.”
In one of his first interviews since Scope3 came out of beta, O’Kelley shared with Digiday details on the intricacies of modeling the environmental impact of digital advertising, plus his views on the state of competition in the sector.
The following interview has been edited for length and clarity.
There are four major components to the emissions of a web page: the device or browser rendering on a page, energy from data transmissions, production costs for content, and then there’s things like targeting and analytics. We can calculate the first two by simulating a page, kind of like a search engine does, and then we can see CPU usage and the data it downloaded.
What we can’t see is what’s happening inside the mysterious ad tech world, but we can look at Prebid configurations and Ads.txt files, plus we can use third-party data sources for aggregated, anonymous data about supply paths. So, we’re using all these different datasets, and we’ve built one of the most accurate pictures of the advertising supply chain that’s ever been put together.
And then we’ve built a proprietary model for how an SSP works, how a DSP works, how a Prebid or Open Bidding configuration works at a CPU level — and this is because we have years of experience of building ad tech.
It depends by country. I would say that in the U.K., France and Australia, it’s definitely the number one topic and there is immense interest from agencies and brands. I would say that in the U.S., it’s number two, maybe number three [in priority].
DEI is probably the hottest topic in the U.S. Plus I think that cost-control and some of the Big Tech issues are concerns, but [sustainability issues] are definitely rising. There’s been an immense amount of interest in Europe. We thought we’d pilot in one country, but our first pilot is in six countries [one of which is the U.K.] and we will have 10 countries by April.
Speaking of Big Tech, in 2019 you testified before Congress about ad tech’s competitive landscape. Since then, several antitrust cases have been filed against Google in the U.S. alone. What are your thoughts now?
You’re asking a politics question, and I don’t claim to have any knowledge of how politics actually works. That case is going to take forever and the Democrats have said they’re serious and not going to take any flak from the Big Tech people. But the 2022 [mid-term] elections are going to have a big impact and you need to think what Congress will look like in 12 months.
If you can tell me who the president is going to be in 2025 – when that case is probably going to hit – and what the Democrat or Republican majority is, then I could probably tell you a bit more. But I do think that Google is extremely cautious and very much in defensive mode on the business side.
I think that creates opportunities for other folks to innovate because Google has had its hands tied. And it may be that Google having its hands tied is enough to allow innovation, which is great. I think the risk is that Amazon takes advantage of that because it has so many more assets than independents.
Just look at how companies like Microsoft [which recently bought the assets of Xandr, a.k.a. AppNexus] is reentering advertising — how cool is that? Yahoo is also reinvigorating itself under new management. So, Google is not dominating the future of advertising; I think that’s the main point of all of this. If the antitrust case serves to further scare them into not being aggressive then I’m okay with that.
AMD CEO says 5-nm Zen 4 processors coming this fall
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Advanced Micro Devices revealed its 5-nanometer Zen 4 processor architecture today at the Computex 2022 event in Taiwan.
The new AMD Ryzen 7000 Series desktop processors with Zen 4 cores will be coming this fall, said Lisa Su, CEO of AMD, in a keynote speech.
Su said the new processors with Zen 4 architecture will deliver a significant increase in performance upon their launch in the fall of 2022. Additionally, Su highlighted the strong growth and momentum for AMD in the mobile market as 70 of the more than 200 expected ultrathin, gaming and commercial notebook designs powered by Ryzen 6000 Series processors have been launched or announced to-date.
In addition, other AMD executives announced the newest addition to the Ryzen Mobile lineup, “Mendocino;” the newest AMD smart technology, SmartAccess Storage; and more details of the new AM5 platform, including support from leading motherboard manufacturers.
“At Computex 2022 we highlighted growing adoption of AMD in ultrathin, gaming, and commercial notebooks from the leading PC providers based on the leadership performance and battery life of our Ryzen 6000 series mobile processors,” said Su. “With our upcoming AMD Ryzen 7000 Series desktop processors, we will bring even more leadership to the desktop market with our next-generation 5-nm Zen 4 architecture and provide an unparalleled, high-
performance computing experience for gamers and creators.”
AMD Ryzen 7000 Series desktop processors
The new Ryzen 7000 Series desktop processors will double the amount of L2 cache per core, feature higher clock speeds, and are projected to provide greater than 15% uplift in single-thread performance versus the prior generation, for a better desktop PC experience.
During the keynote, a pre-production Ryzen 7000 Series desktop processor was demonstrated running at 5.5 GHz clock speed throughout AAA game play. The same processor was also demonstrated performing more than 30% faster than an Intel Core i9 12900K in a Blender multi-threaded rendering workload.
In addition to new “Zen 4” compute dies, the Ryzen 7000 series features an all-new 6nm I/O die. The new I/O die includes AMD RDNA 2-based graphics engine, a new low-power architecture adopted from AMD Ryzen mobile processors, support for the latest memory and connectivity technologies like DDR5 and PCI Express 5.0, and support for up to four displays.
AMD Socket AM5 Platform
The new AMD Socket AM5 platform provides advanced connectivity for our most demanding enthusiasts. This new socket features a 1718-pin LGA design with support for up to 170W TDP processors, dual-channel DDR5 memory, and new SVI3 power infrastructure for leading all-core performance with our Ryzen 7000 Series processors. AMD Socket AM5 features the most PCIe 5.0 lanes in the industry with up to 24 lanes, making it our fastest, largest, and most expansive desktop platform with support for the next-generation and beyond class of storage and graphics cards.
And AMD said the “Mendocino” processors will offer great everyday performance and are expected to be priced from $400 to $700.
Featuring “Zen 2” cores and RDNA 2 architecture-based graphics, the processors are designed to deliver the best battery life and performance in the price band so users can get the most out of their laptop at an attractive price.
The first systems featuring the new “Mendocino” processors will be available from computer partners in Q4 2022.
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AMD’s Ryzen 7000 desktop chips are coming this fall with 5nm Zen 4 cores
AMD’s upcoming Ryzen 7000 chips will mark another major milestone for the company: they’ll be the first desktop processors running 5 nanometer cores. During her Computex keynote presentation today, AMD CEO Lisa Su confirmed that Ryzen 7000 chips will launch this fall. Under the hood, they’ll feature dual 5nm Zen 4 cores, as well as a redesigned 6nm I/O core (which includes RDNA2 graphics, DDR5 and PCIe 5.0 controllers and a low-power architecture). Earlier this month, the company teased its plans for high-end “Dragon Range” Ryzen 7000 laptop chips, which are expected to launch in 2023.
Since this is just a Computex glimpse, AMD isn’t giving us many other details about the Ryzen 7000 yet. The company says it will offer a 15 percent performance jump in Cinebench’s single-threaded benchmark compared to the Ryzen 5950X. Still, it’d be more interesting to hear about multi-threaded performance, especially given the progress Intel has made with its 12th-gen CPUs. You can expect 1MB of L2 cache per core, as well as maximum boost speeds beyond 5GHz and better hardware acceleration for AI tasks.
AMD is also debuting Socket AM5 motherboards alongside its new flagship processor. The company is moving towards a 1718-pin LGA socket, but it will still support AM4 coolers. That’s a big deal if you’ve already invested a ton into your cooling setup. The new motherboards will offer up to 24 channels of PCIe 5.0 split across storage and graphics, up to 14 USB SuperSpeed ports running at 20 Gbps, and up to 4 HDMI 2.1 and DisplayPort 2 ports. You’ll find them in three different flavors: B650 for mainstream systems, X650 for enthusiasts who want PCIe 5.0 for storage and graphics and X650 Extreme for the most demanding folks.
Given that Intel still won’t have a 7nm desktop chip until next year (barring any additional delays), AMD seems poised to once again take the performance lead for another generation. But given just how well Intel’s hybrid process for its 12th-gen chips has worked out, it’ll be interesting to see how it plans to respond. If anything, it sure is nice to see genuine competition in the CPU space again.
While Ryzen 7000 will be AMD’s main focus for the rest of the year, the company is also throwing a bone to mainstream laptops in the fourth quarter with its upcoming 6nm “Mendocino” CPUs. They’ll sport four 6nm Zen 2 cores, as well as RDNA 2 graphics, making them ideal for systems priced between $399 and $699. Sure, that’s not much to get excited about, but even basic machines like Lenovo’s Ideapad 1 deserve decent performance. And for many office drones, it could mean having work-issued machines that finally don’t stink.
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Disney’s Disney+ ad pitch reflects how streaming ad prices set to rise in this year’s upfront
With Disney+, Disney is looking to set a new high-water mark for ad prices among the major ad-supported streamers. The pricey pitch is representative of a broader rising tide in streaming ad pricing in this year’s TV advertising upfront market, as Disney-owned Hulu, Amazon and even Fox’s Tubi are looking to press upfront advertisers to pay up.
In its initial pitch to advertisers and their agencies, Disney is seeking CPMs for Disney+ around $50, according to agency executives. That price point applies to broad-based targeting dubbed “P2+,” which refers to an audience of any viewer who is two years old or older (though Disney has told agency executives that programming aimed at viewers seven years old and younger will be excluded from carrying ads). In other words, more narrowly targeted ads are expected to cost more based on the level of targeting. A Disney spokesperson declined to comment.
At a $50 CPM, Disney+ is surpassing the prices that NBCUniversal’s Peacock and Warner Bros. Discovery’s HBO Max sought in last year’s upfront market and that gave ad buyers sticker shock. The former sought CPMs in the $30 to $40 range, while the latter sought $40+ CPMs. By comparison, other major ad-supported streamers like Hulu, Discovery+ and Paramount+ were charging low-to-mid $20 CPMs that major ad-supported streamers charge. As a result, Peacock’s and HBO Max’s asks ended up being price prohibitive, with some advertisers limiting the amount of money they spent with the streamers because of their higher rates.
Unsurprisingly, agency executives are balking at Disney+’s price point. “They’re citing pricing that no longer exists, meaning Peacock and HBO Max recognized they came out too high and they’re reducing it. Disney+ is using earmuffs to pretend that second part didn’t happen,” said one agency executive.
However, Disney+ isn’t the only streamer seeking to raise the rates that ad buyers are accustomed to paying. Hulu is also seeking to increase its prices in this year’s upfront, with P2+ pricing going from a $20-$25 CPM average to averaging in the $25-$30 CPM range, according to agency executives. And during a call with reporters on May 16, Fox advertising sales president Marianne Gambelli said that the company will seek higher prices for its free, ad-supported streaming TV service Tubi in this year’s upfront market. It’s unclear what Tubi’s current rates are, but FAST services’ CPMS are typically in the low to mid teens, said the agency executives.
“We have to get the value for Tubi. Tubi has grown to a point — it’s doubled, tripled in size over the past couple of years. So we are going to obviously make that a priority and look for not only more volume but price,” Gambelli said.
Meanwhile, in pitching its Thursday Night Football package that will be streamed on Amazon Prime Video and Twitch, Amazon has been pressing for a premium on what Fox charged advertisers last year, according to agency executives. The e-commerce giant will be handling the games’ ad placements like traditional TV, meaning that it will run the same ad in each ad slot for every viewer as opposed to dynamically inserting targeted ads. “It’s streaming broadcast,” said a second agency executive.
An Amazon spokesperson declined to comment on pricing but did provide a general statement. “Thursday Night Football on Prime Video and Twitch is a purely digital broadcast, and we’re excited to bring fans a new viewing experience. There are 80MM active Prime Video households in the U.S. and, in a survey of our 2021 TNF audience, 38% reported they don’t have a pay-TV service – meaning TNF on Prime Video and Twitch enables brands to connect with cord-cutters and cord-nevers. Brands can also reach these viewers beyond TNF. Our first-party insights enable them to reengage TNF audiences across Amazon, such as in Freevee content.”
One of the agency executives that Digiday spoke to said the latest ask is for a plus-10% increase on Fox’s rates, though what Fox’s rates were are unclear and other agency executives said the premium that Amazon is asking for varies. Ad Age reported in February that Amazon was seeking up to 20% higher prices than Fox’s rates. “I don’t know if it is consistently plus-10, but it is definitely more. Which is crazy because Fox couldn’t make money on it, which is why they gave it up for this fall,” said a second agency executive.
“Someone was eating way too many gummies before they put the pricing together,” said a second agency executive of Amazon’s Thursday Night Football pitch.
Ad-supported streaming service owners also see an opportunity to push for higher prices as advertisers to adopt more advanced targeting with their streaming campaigns, such as by using the media companies’ and/or advertisers’ first-party data to aim their ads on the streamers.
Said one TV network executive, “You’ll see premiums, especially as it relates to advertisers that really want to hook into [their company’s streaming service] and buy those targeted audiences across the platform and either use [the TV network’s] first-party data or bring their own data to the table. That’s the biggest business we’re in, and that’s where we see great growth from a pricing standpoint.”
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