Documents Reveal Google’s Advertising Incentive Payout Plans; Daily Mail Owner Set Aside £20m in Advertising Rebates; Criteo CEO to Retire

by Aimee Newell Tarín on 28th Aug 2024 in News

On today’s news digest: Documents Reveal Google’s Advertising Incentive Payout Plans; Daily Mail Owner Set Aside £20m in Advertising Rebates; Criteo CEO to Retire

Documents filed last week for Google’s upcoming ad stack case against the DOJ reveal new details regarding Google’s incentive programmes with agencies and advertisers. Although Google had previously disclosed its advertising incentives programme publicly, the documents newly introduced to the case – dated May 2018 – bring to light the programme’s specifics. According to the documents, Google offered advertisers three types of incentives: DVIP Upfronts, Agency Capability Fund, and KPI Deals. The first allows agencies and advertisers to make an upfront commitment to spend on Google’s display and video ads in exchange for a discount on reservation-based spend. The tech titan expected to pay advertisers approximately $100m (£75.55m) in discretionary incentive funds in 2018. The second incentive provides agencies with cashback at the end of the year if they manage to meet YouTube growth targets and training requirements year-over-year, which Google expected to pay out around $300m (£226.68m) for in 2018. The latter incentive gives agencies cash at the end of the year for display and video KPIs which have been mutually agreed on – which would have set Google back another $45m (£34m) in 2018 according to the documents. They do not reveal how many agencies or advertisers were involved with the programmes.

Turning our attention to other documents, DMGT’s annual report reveals that DMG Media, the conglomerate’s publishing arm which owns media including the Daily Mail, set aside just under £20m for contract discounts and rebates in the 12 months to September 2017. The monetary provision, intended for advertisers and agencies, was collected during a year in which it outperformed the newspaper ad market, and the MailOnline’s growth offset its print decline. Almost 39% of DMG Media’s ad sales were generated through digital advertising, compared with 34% the previous year. The report states: “The DMG Media segment enters into agreements with advertising agencies and certain clients, which are subject to a minimum spend and typically include a commitment to deliver rebates to the agency or client based on the level of agency spend over the contract period."

Meanwhile, Criteo has announced that following five years in the position of CEO, Megan Clarken plans to retire within the next 12 months. Clarken will continue in her role until her successor is named. She will also remain as a senior advisor to the company until any necessary transition is complete. Both internal and external candidates will now be assessed to take over the position.