China Bans 105 Apps; Short-Form Video Consumption Rises in US

In today's ExchangeWire news digest: China's Cyberspace authority bans 105 apps for violating the country's internet regulation; a survey finds that 42% of US adults are watching more short-form video content under lockdown; and PubMatic files to go public.

China bans 105 mobile apps

China has announced that it is banning 105 mobile apps for breaking the country’s internet regulations. The majority of the apps barred by the Cyberspace Administration of China (CAC) came from Chinese developers, although US travel site TripAdvisor also saw its app make the list.

In a short statement, the CAC revealed that it began outlawing the apps on 5^th November in an effort to “clean up” China’s cyberspace. The 105 banned apps were brought to the body’s attention after reports from users that they hosted illegal content or activity. 8 app stores were also taken offline as part of the campaign, with the bureau accusing them of non-compliance with China’s review and content legislation.

The purge is not the first carried out by the ruling Chinese Communist Party (CCP), whose aim of keeping the country’s internet under strict control is well documented. However, with China’s online space evolving so quickly, the CCP frequently finds itself playing catch-up in order to quell what it deems dangerous or controversial content.

Unlikely to be the last of its kind, it remains to be seen whether developers and users within the country will ever launch any counter-action against such bans.

 

Short-form video consumption rises in US

COVID-19 has accelerated a number of trends, including the amount of time consumers spent watching videos of less than 10 minutes in length. According to a survey commissioned in the US by independent digital studio TheSoul Publisher, 42% of adults watched more short-form videos under lockdown, with 83% stating that they would likely watch as much or more such content in 2021.

Conducted between 30^th September and 10^th November and carried out by Censuswide, the study surveyed 2,000 men and women aged 16 and above. Of this group, 69% said that they now spend between 30 minutes and 3 hours a day watching short-form videos. 32% of “Gen Z” respondents reported watching 2 or more hours per day, with 62% favouring comedy videos and 32% reporting watching “positive” content to cope with the stress of the ongoing crisis.

Craft videos proved popular amongst all the respondents, with 86% reporting having watched them to learn new skills, such as baking, or to complete DIY and creative tasks. Unsurprisingly, smartphones proved the handiest device for short-form viewership, with 63% reporting watching such videos primarily on their mobile.

With the effects of the pandemic set stretch beyond the end of stay-at-home measures, these trends are likely to continue.

 

PubMatic files IPO

Programmatic advertising company PubMatic has filed to go public. The company announced an initial public offering of 5,900,000 shares of Class A common stock at a price of USD $20.00 (£14.88) per share. The stock on offer is currently split between PubMatic, which is offering 2,655,000 shares, and select stockholders, who hold 3,245,000 shares.

Trading on the Nasdaq Global Market is expected to have begun today (9^th December), and will finish on Friday (11^th December) provided the customary closing conditions are met. The IPO is being led by Jeffries LLC and RBC Capital Markets LLC, who are acting as joint book-running managers, with JMP Securities LLC, KeyBanc Capital Markets, Oppenheimer & Co. Inc., and Raymond James & Associates, Inc. acting as co-managers.

The move is undoubtedly a big moment for PubMatic, but it also helps to paint a wider picture of the state of ad tech after a year of unprecedented disruption. As Axios’ Sara Fischer notes, the filing is indicative of ad tech’s resilience in spite of the pandemic, fostered by businesses’ moving their operations online and the immense growth of ecommerce.

With their eyes reportedly set on achieving an IPO worth USD $115m (£85.3m), the next couple of days will prove tense but doubtlessly exciting for PubMatic.