LONDON: Wall Street is bracing for the slowest global revenue growth in the history of the social media sector, as intensifying competition from TikTok and Apple in advertising threaten to compound economic woes in the second quarter.
The dour expectations come after a blowout 2021, when social media ad sales in the United States grew 36 percent to reach $58 billion as brands increased marketing budgets to recover from the pandemic and reach customers online.
But social media platforms have since warned investors and employees that the tide is turning as inflation lingers around 40-year highs, an environment where brands spend less on advertising.
Meta Platforms Chief Executive Mark Zuckerberg told employees last month the company was slashing hiring plans and that “this might be one of the worst downturns that we’ve seen in recent history.”
Snap Inc, which owns Snapchat and is due to report earnings after the close, earlier said it expected to miss its own quarterly revenue forecast due to deteriorating economic conditions.
Global social media ad sales are now expected to grow by 11 percent, the slowest pace on record, according to media intelligence firm MAGNA, which downgraded the growth forecast from 18 percent.
Analysts had expected some degree of slowing growth after 2021. However, growing competition from viral short-form video app TikTok and Apple has created a “perfect storm” and “investors are rightfully wary” about digital ad growth this year, wrote Barclays analysts in a research note this month.
Apple had already upended the digital ad industry when it introduced new iPhone privacy controls last year that hurt the ability for companies like Meta and Snap to target and measure ads on their apps.
Apple’s own advertising business, which mostly consists of developers paying to promote their app on the App Store, is expected to grow 36 percent this year to $6.9 billion, Barclays wrote, adding that Apple and TikTok together will take 34 percent of every new ad dollar that is spent outside China this year.
Lior Eldan, chief operating officer of mobile app marketing agency Moburst, which has worked with brands like Uber and Reddit, said clients are now spending about two to three times more on Apple ads, in part because the effectiveness of ads on other platforms has been degraded by Apple’s privacy changes.
“We’ve seen dramatic increases in budgets on Apple search ads following the privacy changes,” he said.
While still much smaller than behemoths like Facebook and YouTube, TikTok is poised to grow over 200 percent to become a $12 billion business, Barclays wrote.
TikTok remains important for many clients’ advertising strategies, said Yvonne Williams, vice president of media at ad agency Code3, which has worked with brands like Gap and Dior.
Alphabet’s Google, which reports second-quarter earnings on Tuesday, is the company most likely to be shielded from negative effects, because Google Search is “mission critical” for many advertisers, analysts from RBC Capital Markets said in a note on Tuesday.
Meta, Snap and Pinterest are more exposed to the Apple privacy changes and competition from TikTok, Barclays said.
Social media revenue growth expected to slow as TikTok, Apple compete
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Social media revenue growth expected to slow as TikTok, Apple compete
- Global social media ad sales are now expected to grow by 11 percent, the slowest pace on record, according to media intelligence firm MAGNA, which downgraded the growth forecast from 18 percent.
Fearless Saudi 13-year-old launches Vision 2030 podcast
- Teenager aims to educate the public about Kingdom’s vision
- Overcame public speaking fears to become podcaster
RIYADH: Saudi Linda Al-Faisal, who is only 13, aims to make an impact through her podcast, Linda Vision 2030, with each episode featuring a guest trailblazer.
Through her podcast, she connects with thousands of local and international subscribers, engaging in conversations about the Kingdom’s vision.
In her first episode, titled “How Saudi Arabia Became a Global Hub,” she discusses the projects being driven by the Kingdom, led by Crown Prince Mohammed bin Salman, claiming “Saudi Arabia is no longer the land you once knew.”
In her third episode, Al-Faisal interviewed Tamim Turki, a teenage Saudi sports presenter.
Then, in her fourth episode, Al-Faisal sat down Hassan Yusuf, program director for Saudi Arabia’s Real Madrid foundation, where the pair discussed the role of youth in achieving the goals of Vision 2030.
When she was five years old, Al-Faisal was interested in becoming a ballerina, and after being enrolled in classes she later fulfilled her childhood dream. Today, she is a ballerina as well as a podcast host.
Influenced by her friends, who have their own podcast, Al-Faisal decided to create her own platform.
“Why I chose (the topic of) Vision 2030 is because many people don’t know what it talks about or what is going to happen. So, I decided to search and learn more about Vision 2030 so I can teach the people.
“The biggest goal that I want to achieve from my podcast is that I want to make every listener feel proud with all the developments and changes happening in Saudi Arabia.”
After years of presenting at school, facing her fears, Al-Faisal became a natural public speaker, learning communication techniques through observation and practice to become an effective presenter.
“I used to be nervous while presenting during my first time in school. We all learn from our mistakes, and I learned from mine and became stronger. The speeches I used to present in school made me more powerful.”
Al-Faisal’s ballet talent earned her third place in the “Creative Journey Around the Kingdom,” a program launched by the General Entertainment Authority in collaboration with MBC Academy, which sets out to identify local talent.
Al-Faisal’s message to teenagers is to keep dreaming and always stay positive.
“Do not let negative thinking destroy you. Always focus on yourself because you are the main character of your life.”
Sky News Arabia opens new headquarters, announces fresh programming
DUBAI: Sky News Arabia, part of media group IMI, has opened its new headquarters in the same building as the IMI HQ on Yas Island, Abu Dhabi.
The new HQ features advanced broadcasting studios fitted with the latest AI technologies, the company said.
Sky News Arabia has also launched a new programming grid covering politics, lifestyle, sports, business and entertainment.
The announcements come 12 years after the channel’s launch.
They mark a new chapter that “embodies our forward-thinking strategy to anticipate and exceed audience expectations by embracing cutting-edge technologies and delivering diverse, engaging programming that transcends borders, setting new benchmarks for excellence,” said Rani Raad, CEO of IMI and president and operating partner of Redbird IMI.
The company has been working over the past year to elevate “the way each of the media companies within our network engage with audiences, to ensure we continue to deliver content that truly resonates,” he added.
The new programming will include shows such as “Studio One” hosted by Fadila Souissi, which will highlight political and societal issues, and the “Emad Eldin Adib” show, which will focus on politics in the Arab world.
Sky News Arabia is also expanding its lineup of non-political shows. The “Al Sabah Show” will return, featuring segments on health, fashion, law, and celebrities. It will be hosted by Maha Abdullah, Ahmed Qassem, Hani Ziadeh, Christine Dagher and Lubna Mansour.
The show will extend to digital channels and social media platforms through 12 specifically tailored mini-segments.
“In an era of rapid change and information overload, we are committed to empowering our audience with the tools to navigate and discern credible news,” said Nadim Koteich, general manager of Sky News Arabia.
He added: “By providing transparent, engaging and diverse content across politics, economics, lifestyle and technology, we ensure that Sky News Arabia remains a credible source of information that meets the dynamic needs of our viewers.”
Benefits of AI economy must be equitably distributed, says UN tech envoy in Davos
- Amandeep Singh Gill seeks ‘global’ efforts to tackle digital divide
- ‘We need to have a more collaborative and respectful approach’
DAVOS:The power of artificial intelligence and quantum computing must be harnessed to benefit nations across the world, not only developed economies, said Amandeep Singh Gill, the UN’s envoy on technology, on Thursday.
Speaking during a panel titled “From High-Performance Computing to High- Performance Problem Solving,” Gill said that countries in Africa, for example, hold less than 0.5 percent of graphic processing units worldwide.
Also participating in the discussion were Georges-Olivier Reymond, co-founder and CEO of PASQAL; Ana Paula Assis, senior vice president and chair IBM EMEA and Growth Markets; and Paul Alivisatos, president of the University of Chicago.
“My challenge is to convince policymakers who have limited resources to invest in the digital divide, data and AI and quantum development as well,” explained the envoy.
“There is a backlash against the neo-colonial situation, where the tech is developed in just a few geographies, and the rest of the world is takers of this tech. You can call it the sovereignty backlash … we need to have a more collaborative and respectful approach,” he added.
When asked by panel moderator Azeem Azhar, CEO of Exponential View, about the risk of uncertainty in the field of quantum computing, Gill said he sees an opportunity more than a risk.
“We are at an early stage in terms of the science and technology of developing things so different technologies might be used. A degree of uncertainty and diversity is important,” he added.
But the envoy emphasized the need to have a unified global force that would ensure everyone can participate in this area of technology.
“When we look at the global majority, not everyone will be able to use quantum computing, the cryptographic effort has to be global, it can’t be isolated,” he said.
Gill said the world is shifting toward quantum infrastructure in order to reduce energy consumption. According to the envoy, today’s AI systems consume a great deal of energy.
The UN deemed 2025 as the “International Year of Quantum Science and Technology.” This initiative aims to celebrate quantum mechanics and educate people on its impacts on technology, culture, and understanding of the world.
Al Jazeera says the Palestinian Authority arrested one of its reporters
- The Qatar-based news network reported that its reporter Mohammed Al-Atrash was arrested from his home
The Al Jazeera news network says the Palestinian Authority arrested one of its reporters after preventing him from covering an Israeli operation in the occupied West Bank.
The Qatar-based news network reported Thursday that its reporter, Mohammed Al-Atrash, was arrested from his home.
It said Palestinian security forces had earlier prevented him from reporting on a large Israeli military operation in Jenin, an epicenter of Israeli-Palestinian violence in recent years. The Palestinian Authority launched its own crackdown on militants in the city late last year.
There was no immediate comment from the Palestinian Authority.
Both Israel and the Western-backed Palestinian Authority banned Al Jazeera last year. Israel accuses it of being a mouthpiece of Hamas over its coverage of the war in the Gaza Strip and says some of its reporters are also militants.
The pan-Arab broadcaster has rejected the allegations and accused both Israel and the Palestinian Authority of trying to silence critical coverage.
The internationally recognized Palestinian Authority administers parts of the Israeli-occupied West Bank and cooperates with Israel on security matters. It is unpopular among Palestinians, with critics portraying it as a corrupt and authoritarian ally of Israel.
South Sudan orders temporary ban on social media over violence in neighboring Sudan
- Many South Sudanese have been angered by footage from Sudan that purports to show killings by militia groups of South Sudanese in Gezira state
JUBA, South Sudan: South Sudanese authorities on Wednesday ordered telecoms to block access to social media for at least 30 days, citing concerns over the dissemination of graphic content relating to the ongoing violence against South Sudanese in neighboring Sudan.
The temporary ban, which could be extended to up to 90 days, will come into force at midnight Thursday, according to a directive from the National Communication Authority, NCA, to telecom companies stressing that the measure was necessary to protect the public.
“This directive may be lifted as soon as the situation is contained,” the NCA said. “The contents depicted violate our local laws and pose a significant threat to public safety and mental health.”
Many South Sudanese have been angered by footage from Sudan that purports to show killings by militia groups of South Sudanese in Gezira state. South Sudanese authorities imposed a dusk-to-dawn curfew on Jan. 17 after a night of retaliatory violence during which shops owned by Sudanese traders were looted.
Moussa Faki Mahamat, chairperson of the African Union Commission, condemned “the brutal killings of South Sudanese nationals” in Sudan and urged restraint.
Civil war in Sudan has created a widening famine and the world’s largest displacement crisis. Fighting between forces loyal to rival military leaders exploded in the capital, Khartoum, in April 2023 and has since spread to other areas.
The conflict has been marked by atrocities, including ethnically motivated killing and rape, according to the UN and rights groups.
