"During Pepsi's earnings report last month, Barclays Bank Managing Director Lauren Lieberman called out an estimated $500 million decrease in ad spend in 2025. 'I would think advertising would go up,' she queried."
"Pepsi cut prices, reports, having lost shelf space due to outsized price hikes. Seven-dollar Doritos led to plummeting sales, so it's been reducing prices to win back shelves and customers."
"YouTube recently posted a huge new wave of software engineering roles in California and Bengaluru, India, which hint at a bigger push toward making more interactivity possible on its TV apps."
"Data consistently suggests that users are more likely to engage with interactive content as they become more exposed to the new formats. But, so far, that exposure is still mostly limited to ad breaks."
Online advertisers face a dilemma between lowering product prices and increasing ad budgets. Pepsi has reduced ad spending while cutting prices to regain market share after losing shelf space. The company acknowledges the need for efficiency in advertising expenditures. Meanwhile, YouTube is enhancing interactivity in its TV apps to engage users more effectively. The platform is hiring for roles focused on new features that promote user interaction, indicating a shift towards more engaging content formats.
Read at AdExchanger
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