At its second annual Upfront 2025 event yesterday, Netflix announced that it has created interactive mid-roll ads and pause ads that incorporate generative AI. These new ad formats are expected to roll out in 2026. Ars Technica reports: "[Netflix] members pay as much attention to midroll ads as they do to the shows and movies themselves," Amy Reinhard, president of advertising at Netflix, said. Netflix started testing pause ads in July 2024, per The Verge. Speaking to advertisers, Reinhard claimed that ad subscribers spend 41 hours per month on Netflix on average. The new ad formats follow Netflix's launch of its own in-house advertising platform in the US in April. It had previously debuted the platform in Canada and plans to expand it globally by June, per The Verge. Netflix considers its advertising business to be in its early stages, meaning customers can expect the firm's ad efforts to continue expanding at a faster rate over the coming years. The company plans to double its advertising revenue in 2025. "The foundations of our ads business are in place, and going forward, the pace of progress will be even faster," Reinhard said today. Further reading: Netflix Says Its Ad Tier Now Has 94 Million Monthly Active Users

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The U.S. government is seeking to break up Google's advertising technology business after a judge ruled the company holds an illegal monopoly over ad tools for publishers, marking the second such antitrust case following a similar request to divest Chrome. The Guardian reports: "We have a defendant who has found ways to defy" the law, US government lawyer Julia Tarver Wood told a federal court in Virginia, as she urged the judge to dismiss Google's assurance that it would change its behavior. "Leaving a recidivist monopolist" intact was not appropriate to solve the issue, she added. [...] The US government specifically alleged that Google controls the market for publishing banner ads on websites, including those of many creators and small news providers. The hearing in a Virginia courtroom was scheduled to plan out the second phase of the trial, set for September, in which the parties will argue over how to fix the ad market to satisfy the judge's ruling. The plaintiffs argued in the first phase of the trial last year that the vast majority of websites use Google ad software products which, combined, leave no way for publishers to escape Google's advertising technology and pricing. The district court judge Leonie Brinkema agreed with most of that reasoning, ruling last month that Google built an illegal monopoly over ad software and tools used by publishers, but partially dismissed the argument related to tools used by advertisers. The US government said it would use the trial to recommend that Google should spin off its ad publisher and exchange operations, as Google could not be trusted to change its ways. "Behavioral remedies are not sufficient because you can't prevent Google from finding a new way to dominate," Tarver Wood said. Google countered that it would recommend that it agree to a binding commitment that it would share information with advertisers and publishers on its ad tech platforms. Google lawyer Karen Dunn did, however, acknowledge the "trust issues" raised in the case and said the company would accept monitoring to guarantee any commitments made to satisfy the judge. Google is also arguing that calls for divestment are not appropriate in this case, which Brinkema swiftly refused as an argument. The judge urged both sides to mediate, stressing that coming to a compromise solution would be cost-effective and more efficient than running a weeks-long trial.

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An anonymous reader quotes an op-ed from Ars Technica's Scharon Harding: TVs offer us an escape from the real world. After a long day, sometimes there's nothing more relaxing than turning on your TV, tuning into your favorite program, and unplugging from the realities around you. But what happens when divisive, potentially offensive messaging infiltrates that escape? Even with streaming services making it easy to watch TV commercial-free, it can still be difficult for TV viewers to avoid ads with these sorts of messages. That's especially the case with budget brands, which may even force controversial ads onto TVs when they're idle, making users pay for low-priced TVs in unexpected, and sometimes troubling, ways. [...] Buying a budget TV means accepting some trade-offs. Those trade-offs have historically been around things like image quality and feature sets. But companies like Vizio are also asking customers to accept questionable advertising decisions as they look to create new paths to ad revenue. Numerous factors are pushing TV OS operators deeper into advertising. Brands are struggling to grow profits as people buy new TVs less frequently. As the TV market gets more competitive, hardware is also selling for cheaper, with some companies selling TVs at a loss with hopes of making up for it with ad sales. There's concern that these market realities could detract from real TV innovation. And as the Secretary Noem ad reportedly shown to Vizio TV owners has highlighted, another concern is the lack of care around which ads are being shown to TV owners -- especially when all they want is simple "ambient background" noise. Today, people can disable ambient mode settings that show ads. But with some TV brands showing poor judgment around where they sell and place ads, we wouldn't bank on companies maintaining these boundaries forever. If the industry can't find a way to balance corporate needs with appropriate advertising, people might turn off not only their TVs more often, but also unplug from those brands completely. Some of the worst offenders highlighted in the article include Vizio TVs' "Scenic Mode," which activates when the TV is idle and displays "relaxing, ambient content" accompanied by ads. Roku City takes a similar approach with its animated cityscape screensaver, saturated with brand logos and advertisements. Even Amazon Fire TV and premium brands like LG have adopted screensaver ads, showing that this intrusive trend isn't limited to budget models.

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