Apple Announces New Privacy Features

Apple Announces New Privacy Features

Apple

Apple has once again made some moves to make the internet more private. At its 2021 Worldwide Developers Conference (WWDC), Apple announced new features intended to give consumers more control over how businesses interact with them. Let’s take a closer look.

What Privacy Controls Did Apple Announce at WWDC?

Apple announced that later in 2021, the company will roll out new features to help people control how their online data is used by third parties. They include:

  • Allowing people to disable the ability of marketers to see if and when an email is opened via Apple’s Mail app.
  • Making it possible for people to hide their internet protocol (IP) address information in order to prevent businesses from tracking web usage on the Safari browser.

In addition, Apple indicted that premium iCloud users will be able to access the internet with a feature called Private Relay. This feature will  block network providers from using IP addresses and web usage to create a user profile for tracking.

Why Does Apple’s WWDC Announcement Matter?

The news from WWDC is the latest in a series of actions from technology giants Apple and Google to make it more difficult for businesses to track users in order to deliver personalized advertising. For instance:

  • In 2020, Google announced it would stop supporting third-party cookies on the Chrome browser. In 2021, Google toughened its stance by saying it would not support workarounds for third-party cookie tracking.
  • Apple recently launched a privacy control known as Application Tracking Transparency (ATT), which requires apps to get the user’s permission before tracking their data across apps or websites owned by other companies for advertising, or sharing their data with data brokers.

The advertising world has reacted with a mixture of concern and resignation as businesses adapt to a reality in which third-party cookies will be less useful for creating targeted advertising. In addition, Facebook has argued that Apple’s ATT will hurt small businesses that rely on Facebook’s advertising tools to create personalized content.

How Will the WWDC Announcement Affect Advertisers?

It’s really too early to say yet how advertisers will be affected by Apple’s latest announcements. For one thing, they have not been launched yet. In addition, although Safari is the second-most popular browser in the world, it lags far behind Chrome in terms of usage. On the other hand, Chrome and Safari together constitute 83 percent of the global market share for browsers. The real impact will be seen when both Google’s and Apple’s tighter restrictions take hold together. It will be interesting to see the impact of the restrictions in Apple Mail, which has the largest market share among email apps.

What Should Advertisers Do?

As I noted in a recent blog post,

  • Don’t assume targeting and personalization are dead because of the way Apple and Google are focusing on privacy. You can still use your own data to buy targeted ads on Google properties such as YouTube, Gmail, and Google Search – so long as you bring their first-party data into Google through the company’s existing Customer Match product. Moreover, as we noted in a recent blog post, if you want to use your own data to serve up targeted ads outside Google’s walls, Google is developing its own cohort-based alternative to third-party cookies to help you do that. Stay tuned for more product developments.
  • Do consider tapping into your own first-party data more effectively to create ads (and True Interactive can help you do so). For example, collect more first-party data by using cookies to understand who visits your site; or run a promotion that collects email addresses. Collect purchase data if applicable to your site.

My blog post “Google Unlocks First-Party Data for Publishers” contains more tips.

At True Interactive, we’re doing the heavy lifting to help our clients navigate these changes. Bottom line: be ready to adapt. But don’t panic.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

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For Further Insight

Five Lessons From the 2021 Ad Spending Surge

Five Lessons From the 2021 Ad Spending Surge

Advertising

Ad spending is surging. As reported in The Wall Street Journal, U.S. companies are expected to spend 15 percent more on advertising in 2021 year than they did in 2020. That’s because consumer confidence is increasing, and the pace of Covid-19 vaccinations is accelerating. And digital is getting a bigger share than ever of the advertising pie:

Digital Share of Ad Spending

Announcements from technology giants and social media apps in recent days underscore just how much businesses are investing into digital advertising:

  • As we reported on our blog, Amazon Advertising and Facebook reported strong year-over-year ad revenue growth in their most recent quarterly earnings announcements.
  • Alphabet announced 32 percent year-over-year ad growth for Google, demonstrating an impressive rebound from a slump triggered by the pandemic.

Amid this spending surge, we see some important lessons emerging:

  • Businesses that maintained their spending levels during the depths of Covid-19 in 2020 are at an advantage over those who pulled back and are now kickstarting their spending. Consumer behavior and sentiment are changing faster than ever. We predicted in 2020 that reducing ad spend during the pandemic would catch businesses flat-footed when consumer behavior shifted again – as it has done in 2021.
  • We’ve hit an inflection point with digital. As the stay-at-home economy takes hold, consumers are remaining online at higher levels than ever. As a result, online spending continues to accelerate. Businesses that asked, “But how long will the growth last?” in 2020 fell behind those that saw the surge for what it is: a behavioral change. The faster businesses adapt to those changes by boosting their online advertising, the sooner they’ll attract shoppers online.
  • The tech giants are experiencing a golden era. We’ve seen the tech giants – namely Amazon, Apple, Facebook, Google, and Microsoft – experience heavy criticism in recent years for reasons too numerous to summarize in a blog post. And of course the specter of antitrust lawsuits looms over Facebook and Google (and Apple in Europe). On top of that, they’re at war with each other, and the demise of third-party cookies calls into question how well advertisers will be able to target consumers across these platforms. But guess what? Amid the blowback, the tech giants continue to run the table, as noted above. Smart advertisers aren’t allowing negative headlines to scare them away from the tech giants. They’re watching how these platforms innovate with new ad units that monetize the surging online audience.
  • Retail ad platforms are on the rise. Savvy marketers are capitalizing on the fact that retailers such as Amazon, Dollar Tree, Kroger, Macy’s, Target, and Walmart are monetizing their first-party customer data by building ad businesses. Each retailer can give advertisers access to different types of consumers. We expect more of these platforms to emerge, contributing to robust ad growth.
  • Social commerce is going to fuel more ad spending. As we discussed on our blog recently, businesses should capitalize on social commerce advertising tools such as Pinterest Product Pins, through which a business can connect its product catalog to Pinterest, filter and organize inventory, create shopping ads, and measure results; or numerous ad units on Instagram that make it easier for businesses to turn advertising into shopping experiences.

We urge businesses to take a fresh look at how your customers’ journeys are changing amid the rise of digital-first living and spending. Monitor performance closely as consumer behavior fluctuates. Businesses that invest in strong real-time analytics tools will have the upper hand.

Contact True Interactive

At True Interactive, we know how to help businesses navigate the complex waters of online advertising. Contact us. Learn more about our work here.

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Google Unlocks First-Party Data for Publishers

Google Unlocks First-Party Data for Publishers

Google

Google continues to nudge businesses away from using third-party cookies to personalize ads and toward the management of first-party data. On March 11, Google announced some product developments intended to make it easier for publishers to use their first-party data programmatically for ad buys. Let’s take a closer look.

What Google Announced

Google is going to help publishers expand the use of Publisher Provided Identifiers (PPIDs) in Ad Manager to more programmatic campaign types, including the Open Auction. PPIDs are created from anonymized first-party data and then fed into Google Ad Manager by the publisher. PPIDs improving functions such as audience segmentation and frequency capping. Publishers will now be able to surface their first-party data programmatically for buyers — so long as they use Google as their intermediary.

As AdExchanger explains,

The PPID’s technical setup works like this: the publisher will create a unique ID for users, based on a first-party cookie or a log-in ID. Then it will put that ID into Google Ad Manager, and choose who it wants to share that data with. Google will hash that ID and pass it through to buyers.

Buyers won’t know that PPID 123 is a sports fan in an open auction. But as they observe the ID in bid requests, they may notice that the user ID goes to a sports site frequently, for example, and deduce that a buyer is a good fit for an ad campaign.

Google also said it is experimenting with functionality that will provide publishers with the option to share encrypted data directly with advertisers with whom they already have a direct relationship. Publishers will have full control over what data is collected, and who can receive the data. Google will not be able to read or decrypt the data. Ad Manager will only act as an intermediary on behalf of the publisher to pass the signals to the third-party bidders they choose.

What the News Means

The announcement is another sign of Google’s intention to bring about the demise of third-party cookies and push businesses toward using first-party data to personalize content. Over the past several months, Google has announced that it would stop supporting third-party cookies on its Chrome browser and that Google would reject alternatives to third-party cookie tracking. As an alternative, Google is developing alternatives to third-party cookie tracking in Google’s privacy sandbox. Tellingly, Google also noted in a March 3 blog post:

We will continue to support first-party relationships on our ad platforms for partners, in which they have direct connections with their own customers. And we’ll deepen our support for solutions that build on these direct relationships between consumers and the brands and publishers they engage with.

Google’s March 11 post now shows that Google is going to nudge publishers to use their first-party data more effectively.

What Advertisers Should Do

Flexibility and patience are key. Don’t assume targeting and personalization are dead. You can still use your own data to buy targeted ads on Google properties such as YouTube, Gmail, and Google Search – so long as you bring their first-party data into Google through the company’s existing Customer Match product. Customer Match takes information a consumer gave to a brand, such as an email address, and determines whether it matches data Google already has. If so, advertisers can work with Google to send an ad to that individual. Moreover, as we noted in a recent blog post, if you want to use your own data to serve up targeted ads outside Google’s walls, Google is developing its own cohort-based alternative to third-party cookies to help you do that. Stay tuned for more product developments.

Do consider tapping into your own first-party data more effectively to create ads (and True Interactive can help you do so). For example, collect more first-party data by using cookies to understand who visits your site; or run a promotion that collects email addresses. Collect purchase data if applicable to your site. Note that brands that have relationships with publishers can pass first-party data directly to those publishers, outside the Google environment, and still manage the buy inside Google’s automated ad-buying system Display & Video 360 (often called DV360). But the use of data and the ad buy will be supported by proposed methods that enhance privacy as discussed in Google’s March 11 blog post.

At True Interactive, we’re doing the heavy lifting to help our clients navigate these changes.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

For more reading:

Google Rejects Alternatives to Cookie Tracking: Advertiser Q&A.”

Google to Stop Supporting Third-Party Cookies on Chrome: Advertiser Q&A.”

Photo by Mitchell Luo on Unsplash

Google Rejects Alternatives to Cookie Tracking: Advertiser Q&A

Google Rejects Alternatives to Cookie Tracking: Advertiser Q&A

Google

Google recently made another major announcement in its quest to usher in a cookie-less world. Recall that in January 2020, Google said it was going to phase out third-party cookies on Chrome in a bid to protect consumer privacy more effectively. On March 3, Google published an update: Google will not build alternative tracking technologies (or use those being developed by other companies) for its own ad buying tools to replace third-party cookies. Let’s take a closer look at what Google announced.

What exactly did Google announce?

Google said that once third-party cookies are phased out of Chrome browsers, Google will not build alternative identifiers to track individuals as they browse across the web, nor will Google use them in its products. Examples of those alternative identifiers include Unified ID and LiveRamp IdentityLink.

Instead, Google wants advertisers to adopt cohort-based targeting, or grouping people based on their common browsing behavior as an alternative to third-party cookies. Specifically, Google is advocating for the adoption of FLoCs (federated learning cohorts) developed out Google’s own Privacy Sandbox initiative. According to Google,

. . . our latest tests of FLoC show one way to effectively take third-party cookies out of the advertising equation and instead hide individuals within large crowds of people with common interests. Chrome intends to make FLoC-based cohorts available for public testing through origin trials with its next release this month, and we expect to begin testing FLoC-based cohorts with advertisers in Google Ads in Q2. Chrome also will offer the first iteration of new user controls in April and will expand on these controls in future releases, as more proposals reach the origin trial stage, and they receive more feedback from end users and the industry.

How will online advertising be affected?

It’s likely that advertisers will still be able to create targeted ads based on user behavior – but the ads will be based on larger cohorts of people based on their common browsing behavior as an alternative to third-party cookies. Google told The Wall Street Journal that ads using cohort-based targeting have performed nearly as well as the existing tools that target consumers individually.

But no one yet knows exactly how targeting will change. As Raja Rajamannar, chief marketing and communication officer at Mastercard, told The Wall Street Journal, “When you’re able to target precisely to individuals your effectiveness is very high. When you’re doing it to cohorts it’s bound to be lesser than the individual, but we don’t know how much less at this point in time.”

What should advertisers do?

We always recommend that when Google makes a major change to its products that advertisers keep a close watch on their spend and costs especially for any potential near-term fluctuations. (If you are a True Interactive client, we do that for you.) Beyond that, it’s time to wait and see. The worst action to take is to stop advertising on Google. Google remains the Number One digital advertising platform, even if targeting consumer behavior across Google’s universe changes from personal to cohort-based targeting.

Also:

  • Keep an eye on how the Google sandbox initiative evolves especially as Google begins testing FloC with advertisers in the second quarter.
  • Consider tapping into your own first-party data more effectively to create ads (and True Interactive can help you do so). As Google pointed out, “We will continue to support first-party relationships on our ad platforms for partners, in which they have direct connections with their own customers. And we’ll deepen our support for solutions that build on these direct relationships between consumers and the brands and publishers they engage with.”
  • Google’s FloC may not be your only alternative, the March 3 announcement notwithstanding. Watch the development initiatives such as Unified ID 2.0, which is a next generation identity solution built on an open-source digital framework. Unified ID 2.0 is the result of a collaboration among publishers, buyers, and technology providers. According to a recent announcement, Unified ID 2.0 serves as an alternative to third-party cookies. Unified ID 2.0 aims to improve consumer transparency, privacy, and control, while preserving the value exchange of relevant advertising across channels and devices. Tom Kershaw, the chief technology officer of Magnite and chairman of Prebid.org — which is the operator of Unified ID 2.0 — dismissed the Google news. He told Campaign that Google’s March 3 announcement has zero effect on Unified ID 2.0. He also said that he was never under an impression that Google would participate in Unified ID 2.0. For more insight, read his newly published commentary on AdExchanger.
  • Consider ad platforms such as Amazon Advertising and Walmart Connect, which give businesses entrée to a vast base of customers who search and shop on Amazon and Walmart. True Interactive offers services on both platforms in addition to our longstanding work on Google, Bing, and other platforms.

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Image by Photo Mix from Pixabay

Google to Expand Phrase Match and Drop Broad Match Modifier

Google to Expand Phrase Match and Drop Broad Match Modifier

Google

On February 4, Google announced changes intended to help advertisers reach searchers more efficiently and precisely in context of search intent. Within the next few weeks. Google will expand phrase match to include additional broad match modifier traffic. In addition, Google will end support for broad match modifier. As a result, Google says that advertising on Google will become more relevant to search behavior.

In a blog post, Google explained how the expansion of phrase match will work. Google cited the example of a moving service wanting to have its ads appear alongside someone searching for “moving services NYC to Boston.” The way phrase match works now, that ad might appear alongside a “moving services NYC to Boston” search – but it also might appear alongside “moving services Boston to NYC” searches, which is obviously an irrelevant ad placement. But this problem will go away over the next few weeks with the expansion of phrase match, as Google depicted on its blog:

Google search query

Google also shared more examples to illustrate how matching behavior will change after this update:

Google Content

Meanwhile, Google is phasing out support for broad match modifier. Google intended for broad match modifier to trigger a business’s ads if keywords were present in the search query in the exact or close variant form.

To minimize disruption, Google will roll out the change over several months. According to Google:

  • Starting mid-February, both phrase match and broad match modifier keywords will begin to transition to the new matching behavior. Advertisers will keep their performance data and will not need to migrate their keywords.
  • In July, once the new behavior has been rolled out globally, advertisers will no longer be able to create new broad match modifier keywords. But, existing broad match modifier keywords will continue to serve under the new behavior – so Google suggests that advertisers start now by create new keywords in phrase match going forward.

What Advertisers Should Do

Google suggests that advertisers:

  • Monitor performance and shift budgets where necessary. Traffic may fluctuate due to these changes; so make adjustments as needed.
  • Regularly check Recommendations page: “Add new keywords” helps an advertiser maintain keyword coverage, and “Remove redundant keywords” helps an advertiser consolidate duplicate keywords.
  • Consider using broad match with Smart Bidding. If an advertiser is concerned about losing coverage, broad match with Smart Bidding helps reach more relevant searches that meet an advertiser’s performance objectives. Google cited the example of online food delivery service Just Eat Takeaway.com, which just tested the combination of broad match with Smart Bidding. The business said, “[W]e’ve been surprised by the results of using broad match with Smart Bidding. We saw a 127% increase in conversions while hitting our goals.”
  • Continue to use negative keywords: Exclude matches an advertiser doesn’t want with negative keywords.

In the near term, advertisers will find themselves busy adapting their campaigns, and they may experience some traffic fluctuations – so it’s best to watch performance metrics closely during the transition.

Of course, if you are a True Interactive client, we’ll do all the heavy lifting for you. We’ve got you covered!

Contact True Interactive

To succeed with online advertising, contact True Interactive. Read about some of our client work here.

Photo by Solen Feyissa on Unsplash

Why Procter & Gamble Is Succeeding (Hint: Advertising!)

Why Procter & Gamble Is Succeeding (Hint: Advertising!)

Advertising

Procter & Gamble has exploded analyst predictions for the company’s just-concluded fiscal first quarter. Organic sales are up to $19.3 billion, a jump of nine percent; net earnings have risen 19 percent; and there’s no indication that, as the pandemic grinds on, people are trading down to cheaper products. Why is P&G succeeding? It’s not just because it’s selling the right products at the right time. Read on to learn more about how:

P&G Is Prepared for the Moment

According to statista.com, P&G ranked as one of the Top 5 advertisers in 2019 based on the company’s ad spend. This is important to recognize because, even before COVID-19 was a glimmer on the horizon, the company was keeping in the forefront of consumer’s minds. P&G’s strategy was sound, predicated on the fact that during flu season, people naturally want to stock up on cleaning products. And although the company had no idea a pandemic would soon eclipse the flu in severity, its strategy and preparation mentality, rooted in strong advertising, served P&G well. When COVID-19 hit and consumers rushed to purchase cleaning products, P&G product name awareness was already high.

P&G Never Wavers from Creativity

The company’s advertising isn’t just timely, it’s creative. P&G consistently rolls out innovative, culturally relevant campaigns with digital at the center. For example:

  • During a year when the pandemic has left many older Americans feeling isolated, P&G’s Ivory brand launched an Acts of Gentle Kindness initiative to support and uplift seniors through distribution of “Ivory gentle care packs.” The packs, which included an assortment of Ivory products, cozy accessories like socks, and puzzles/brain games, celebrated World Kindness Day by focusing “on spreading positivity.” For the initiative, Ivory partnered with TV personality Catherine (Giudici) Lowe and Cavanaugh Bell, the seven-year-old Chief Positivity Creator at nonprofit organization Cool & Dope. Both encouraged families to get involved and create care packs for their own communities; the resulting stories could be shared on Instagram, Facebook, or Pinterest with the hashtag #IvoryKindness.

Woman and Child

  • P&G’s Skinclusive Summer Line by Venus celebrated the many skins we’re in by partnering with the popular Animal Crossing video game series. During a summer when going to the beach wasn’t necessarily a slam dunk due to COVID-19, Animal Crossing became a way to hit the beach virtually. And the game, which is especially popular among women aged 19-24, took self-expression to a new level: Gillette Venus partnered with digital designer Nicole Cuddihy to co-create new “skin-clusive” avatar designs. The game, which originally offered just a few representative skin types for its avatars, now gives players a choice of 250+ designs encompassing 19 different skin types and eight in-game skin tones. Notably, common skin features such as acne, cellulite, vitiligo, and tattoos are represented. Cuddihy notes, “While momentum for diversity in design is building, there are many areas where progress feels slow. The fact that I could add scars and wrinkles to warriors or outlaws, but not characters in less combat-driven games felt discouraging. With these designs, I hope that all women in Animal Crossing can find comfort and representation in this carefully developed collection. I drew inspiration from those in my own life to ensure the designs I was creating accurately represented their skin stories in a way that feels real, celebratory and beautiful.”

Animal Crossing

P&G Is Preparing for the Future

Per Ad Age, P&G does not seem inclined to tighten the purse strings when it comes to marketing: marketing spending for P&G grew at least $100 million last quarter. As Vice Chairman and Chief Financial Officer Jon Moeller said, “We view this as a time to spend forward in terms of our advertising levels, not to spend back. First, there’s never been more media consumed than there is currently, as we all try to entertain ourselves and our families and survive. And two there’s a heightened need to spend on hygiene and health.”

The message is clear: P&G isn’t afraid to invest in advertising. And as we recently blogged, it’s important that all businesses keep their eyes on the ball by maintaining brand awareness with advertising: now, and going forward.

Contact True Interactive

How can your brand benefit from digital advertising? Contact us. We can help.

Why Businesses Need to Step up Their Digital Advertising in 2021

Why Businesses Need to Step up Their Digital Advertising in 2021

Advertising

When COVID-19 first took hold in 2020 and the world entered a time of seismic change and uncertainty, we urged businesses to stay in the ring with a strong digital presence. We wrote, “You don’t want to be caught flat-footed when consumers shift their behaviors again as the current disruption subsides. And subside it will; not knowing when is different from not knowing if.”

As we look to the new year ahead, this truth resonates more strongly than ever. Here’s what you should know about why digital advertising remains important, how digital presence relates to consumer—not to mention competitor—behavior, and what you can do going forward:

Consumer Behavior Has Shifted Online — Have You?

IBM’s U.S. Retail Index indicates that the pandemic has deeply informed the way people shop: the shift from visiting brick-and-mortar stores to shopping online has in fact been accelerated by approximately five years. The types of goods consumers deem essential has come into sharper focus, too. Clothing shopping, for example, has dipped in an era when more people are attending school and working their jobs online. By contrast, sales in categories such as groceries, alcohol, and home improvement materials have all accelerated.

The question to ask yourself: when people go online to shop, will your brand be present with targeted online advertising, such as paid search, that is relevant to what consumers are looking to buy?

Your Competitors Are Connecting with Consumers Online — Are You?

Ad revenues for the Big Three—Amazon, Facebook, and Google—can also shed some light on what a successful path forward can look like for brands. As reported in The Wall Street Journal, the Big Three are enjoying a surge of online revenue: Amazon and Google have reported strong quarterly sales, and Facebook has also enjoyed record revenue. All three had a great third quarter, evidence that businesses continue to connect with people, online, on multiple levels, from retail to social media to digital advertising. Even the StopHateFor Profit ad boycott did not seem to take a lasting bite out of Facebook’s advertising revenue, which was up 22 percent in the third quarter as compared to a year ago. (It’s worth noting that changes in consumer habits have manifested themselves not just in terms of venue—e.g., the move online—but timing. As Amazon Chief Executive Jeff Bezos notes, “We’re seeing more customers than ever shopping early for their holiday gifts.”)

Social media ad spend overall is also on the rise. In the third quarter, global social media ad spend increased 56.4 percent. According to The Drum, that’s almost double the average spend recorded during the COVID-19-related spending nadir of late March.

In short, brands that understand where, and when, to connect with consumers will benefit. If you are ignoring trends in online advertising, you are probably falling behind competitors who are speaking to these tendencies. Are you taking the prevailing trends to heart?

What Businesses Should Do

To stay competitive, we recommend that you:

  • Keep focused on digital. That’s where the action is, according to the data.
  • Invest in creative advertising. As more people go online and interact with brands, it’s going to be harder to stand apart from the pack. As we’ve blogged, it’s critical to invest in strong creative—and creative that is consistent across all your touch points.
  • Keep growing as digital tools evolve. An understanding of—and investment in—new technology helps brands communicate that what they have to offer is cutting edge. And that new technology is out there for the taking. For example, Consider Google’s new visual search tools:
    • Google Lens allows shoppers to tap and hold an image in the Google app or Android Chrome browser in order to find it in an online store.
    • AR Autos will soon allow shoppers to look for a vehicle in Google Search, then see it rendered in 3D or augmented reality. The result? A more immersive look at key features before consumers even arrive at a dealer lot. This advance “peek” is particularly beneficial at a time when many shoppers are trying to limit in-person contact during the pandemic.

Google’s offerings are just a taste of the new opportunities out there. The headline is this: staying on top of new technology can help position you for success.

Contact True Interactive

The changes brought by 2020 won’t go away with the flip of a calendar page. Rather, they have invited brands to adapt. Curious as to how digital can elevate your brand in 2021? Contact us.

Image source: https://www.pexels.com/photo/apps-blur-button-close-up-267350/