Why Retailers Are Launching Ad Businesses

Why Retailers Are Launching Ad Businesses

Advertising

Best Buy recently announced the launch of Best Buy Ads, a new in-house media company. Best Buy Ads offer a range of ad units including paid search ads, onsite and offsite display ads, onsite and offsite video ads, social ads, and in-store ads. According to Best Buy, Best Buy Ads capitalizes on the fact that Best Buy interacts with its customers three billion times a year. From those interactions, Best Buy learns about the search and shopping habits of its customers. This makes it possible for the retailer to sell ad units that target a specific demographic: people with a strong interest in consumer technology.

Best Buy is the latest retailer to launch an ad business. Other examples include:

  • Walmart Connect, the leading ad business run by a brick-and-mortar retailer.

As with Best Buy, they offer services ranging from display to media buying. They all have one thing in common: they monetize their customer data.

Why an Ad Business Appeals to a Retailer Like Best Buy

An online advertising business is appealing to Best Buy for a number of reasons, including:

  • This is a proven model. The growth of Amazon Advertising (Amazon’s own in-house ad operation) speaks for itself. Amazon Advertising is so successful that Amazon is now challenging Google’s and Facebook’s dominance of online advertising. In light of this, we’ve witnessed a slew of retailers jumping into the ad business. For example, Walmart Connect (Walmart’s ad operation) has enjoyed strong growth.
  • Customer data is a competitive weapon. Retailers such as Best Buy collect a treasure trove of data about their customers, starting with their search and shopping preferences. This data gives each retailer an edge because they can promise advertisers access to a targeted audience with intent to buy. As noted, Best Buy targets consumers in the market for home electronics. By contrast, the recently launched ad platform from retailer Macy’s targets a fashion-conscious consumer. Walmart promises entrée to grocery shoppers and price-conscious consumers. Of course, retailers must know how to mine all this data and then develop attractive ad units. But the data provides a built-in advantage.
  • Retailers’ customer data is getting more attractive to advertisers. Businesses are looking for alternative ways to reach consumers amid the demise of third-party cookies, which are crucial for third-party ad targeting, and the advent of stricter consumer privacy controls on Apple’s iOS, which has also made it harder for businesses to target consumers with ads. With third-party ad targeting across the web threatened, platforms that give advertisers entree to shoppers within retailers’ walled gardens are more appealing. Basically, retailers are using their own customer data to do what Apple and Google won’t do for advertisers anymore.
  • e-Commerce is booming. Online ad businesses in particular are catching fire because of the e-commerce boom. According to S&P Global Market Intelligence, “The e-commerce industry is expected to hold on to pandemic-elevated sales into 2022, with big retailers including Amazon.com Inc. and Walmart Inc set to benefit as consumers stick to new, hybrid shopping patterns.” S&P Global Market Intelligence says U.S. e-commerce sales are on track to exceed $1 trillion for the first time in 2022. Businesses want to reach those shoppers, which creates a demand for online advertising. The surge in online commerce also means more people are using retailers’ sites to search and shop, which creates more valuable customer data that retailers’ ad businesses can monetize. This also means advertising.

What Advertisers Should Do

  • Consider retailer-based ad networks as a complement to your existing digital ad strategy, not as a replacement. If your strategy focuses on Facebook and Google, for instance, don’t move your ad dollars over to a retailer network. Remember that Facebook and Google also already offer proven advertising products that capitalize on their vast user base. For example, location-based digital advertising tools help strengthen Google’s advertising services at the local level.
  • Do, however, monitor the effectiveness of your advertising on Facebook and Google amid the demise of third-party cookies and the onset of Apple’s App Tracking Transparency, which includes more privacy controls that may make Facebook ads less effective (which remains to be seen).
  • Work with an agency partner that knows the terrain. For instance, at True Interactive, we complement our history of helping businesses advertising on Google and social media with expertise across retailer ad networks such as Amazon and Walmart.
  • Learn more about the ad products that might apply to you – and those products are evolving. In 2022, more retailers will use first-party data to help businesses create more targeted ads off-site – meaning advertising across the web, as well as via connected TV.

Contact True Interactive

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

For More Insight

Walgreens Doubles Down on Its Advertising Business,” Tim Colucci, May 19, 2021.

Amazon Unveils New Ad Units Across Its Ecosystem,” Kurt Anagnostopoulos, May 4, 2021.

Why Macy’s Launched an Advertising Platform,” Tim Colucci, March 3, 2021.

Walmart Asserts Its Leadership in Advertising,” Tim Colucci, February 8, 2021.

The Roku Deal with Google: Advertiser Q&A

The Roku Deal with Google: Advertiser Q&A

Connected TV

The fight is over – for now. Connected TV provider Roku has reached a multiyear agreement with Google to keep YouTube and YouTube TV on its streaming platform. Thus ends a months-long standoff between Roku and Google that had resulted in Roku users losing access to YouTube TV (Google’s livestreaming service) and most likely the YouTube app. The deal will allow the 56.4 million active Roku accounts to continue to watch YouTube and YouTube TV without disruption. So, what does all this mean to advertisers? Let’s answer some questions:

Why does Roku matter to advertisers in the first place?

Roku matters because it’s a gateway to over-the-top (OTT) television viewing, which is gaining in popularity. OTT television refers to watching TV content that is streamed directly through the Internet – such as subscribing to a streaming service or streaming content from apps like YouTube on TV.

Approximately 2.3 billion people worldwide watch OTT content, and the number are growing. The OTT market will grow to $1.039 trillion by 2027, according to Allied Market Research. Of all the revenue made in the OTT market, 52 percent comes from advertising video-on-demand (AVOD). In short, advertisers are following the eyeballs.

You don’t need cable to watch OTT — but you do need a device like Roku.

Roku competes with devices such as Amazon Fire TV and Apple TV to offer audiences access to OTT. These devices collectively are known as connected TV. Roku is the most popular device, with a 37 percent share of TV viewing time in North America.

These devices control access to content on OTT. They need to support apps and streaming services in order for a viewer to get access to OTT. In short, connected TV devices wield considerable power. And Roku is especially popular because it sells smart televisions with built-in streaming technology along with devices that users can plug into TVs.

Roku makes most of its money selling ads on streaming channels and taking a share of the streaming services’ subscription revenue and ad inventory. In addition, Roku offers OneView, an ad-buying platform for TV streaming.

What was the problem between Roku and Google?

Roku had removed YouTube TV from its channel store in April as part of a dispute with Google over how search results were displayed on Roku’s platform. As a result, viewers could still watch the Google app, but access to the app was about to expire when Roku and Google reached a deal.

Roku alleged that Google interfered with Roku’s independent search results, requiring that it favor YouTube over other content providers. The company also claimed that Google discriminated against Roku by requiring search, voice, and data features not required of other connected TV devices.

As a result of Roku removing YouTube TV, an owner of a Roku device could not stream YouTube TV via OTT. The YouTube TV app allows subscribers to watch live TV channels online for a monthly fee. YouTube TV offers live streams of nearly 100 popular channels, including ESPN, CBS, Fox News, and CNN.

And, Google lost access to those viewers for its ad-supported YouTube TV service.

Why did Google and Roku reach an agreement?

Google was under pressure to reach a deal. Google would have lost out on millions of dollars in ad revenue in addition to the YouTube TV revenue that would have come from Roku. But Roku had motivation to reach an agreement, too. Competitors such as Amazon Fire TV and Apple TV carry YouTube. Roku could have lost customers to those competitors.

What were the terms of the deal?

Terms were not disclosed. We don’t know what concessions both sides made to restore access to YouTube TV for Roku viewers. Likely Google eased up on some behaviors that Roku deemed anticompetitive, but it’s hard to say exactly what might have happened.

What should advertisers do?

The news underscores why it is important for advertisers to understand the constantly evolving OTT and connected TV landscape. Connected TV makers are rolling out more ad units that increase revenue (for the connected TV devices) and reach (for advertisers). For example, Amazon is expanding advertising opportunities on Amazon Fire TV, which competes with devices such as Apple TV and Roku to stream content on connected TVs for millions of viewers. Amazon Fire TV is more than a connected TV provider. It’s a way for advertisers to reach people as they browse and discover new entertainment. One new ad unit, Sponsored Content Rows, is designed for businesses to promote content such as new shows and movies in the form of a row (or carousel) of sponsored content while people browse for shows on their connected TVs (akin to sponsored search results in a Google search engine results page).

Watch, learn, and capitalize on connected TV and OTT ad opportunities.

Contact True Interactive

Eager to capitalize on the opportunities connected TV can offer your brand? Contact us. We can help. Learn more about our connected TV services here.

For More Insight

Advertiser Q&A: Connected TV,” Tim Colucci

How Video Advertising Delivers Results

How Video Advertising Delivers Results

Video

The digital advertising industry is picking up steam, and one reason is the growth of video advertising, according to a new research report from PQ Media. Anyone who works with video advertising can attest to this growth. Video ads are delivering more benefits because:

  • The formats and placement channels are expanding. Look at how TikTok has exploded in popularity. It didn’t even exist five years ago.
  • In the age of TikTok and YouTube, consumers love video as a content format.

At True Interactive, we’re definitely seeing the results of video’s popularity. Recently, one of our clients experienced a challenge: its share of branded search was dropping. The client, a photo curating and sharing company, naturally wanted to improve. So, we launched a video-based awareness campaign that spanned display, YouTube, Google Display Network, connected TV, Yahoo Online Video, Facebook, and Yahoo Display. Our focus: mobile and connected TV. We also ensured that YouTube ads could target connected TV screens. 

Our ads consisted of continuous promotions with six-to-seven offers consisting of aggressive pricing and deep discounts across multiple products. We ran:

  • 10 different 15-second videos specific to a product (trimmed from a master 30-second video).
  • Four 30-second videos.

The ads also focused on mobile users in order to drive downloads of the client’s app.

As a result, our client enjoyed significant improvements in both awareness and also revenue – showing how powerful video can be as a direct-response format in addition to brand awareness:

Year-over-year sales results

Meanwhile, the client’s search share increased noticeably for three consecutive months. Mobile and TV screens typically accounted for 65 percent-to-70-percent of video views/Impressions.

So, why did this campaign deliver results? A few reasons stand out:

  • We began with a large audience (women aged 25-54) with the purpose of hitting as many eyes as possible. That’s because the brand’s low levels of search volume told us that it lacked brand awareness more broadly. Targeting an audience would have been premature.
  • Incorporating mobile video to drive downloads of the client’s app was well timed with the popularity of in-app usage.


Mobile app usage

  • Our approach allowed us to keep CPMs down. The more targeted you are, the more expensive the ad becomes; your CPMs increase when you narrow your audience.

We recommend that businesses take a closer look at how you are using video advertising. How much are you investing into video ads? If you’re not deploying video ads, what’s holding you back? If it’s a lack of in-house creative and media expertise, then a partner can help you.

Contact True Interactive

We deliver results for clients across all ad formats, including video and mobile. To learn how we can help you, contact us.

Photo by CardMapr on Unsplash

Google Firebase: A Workaround for Apple’s Privacy Controls

Google Firebase: A Workaround for Apple’s Privacy Controls

Apple Google Privacy

Apple’s Application Tracking Transparency (ATT) privacy control has caused understandable alarm among businesses that rely on mobile to create personalized advertising. But advertising agencies and their clients are figuring out workarounds. One of them is Firebase. Here’s a quick overview:

The Fallout of Apple ATT

Apple’s ATT is a consumer privacy control that Apple rolled out with an update to Apple’s operating system in 2021. ATT requires apps to get a user’s permission before tracking their data across apps owned by other companies for advertising, or sharing their data with data brokers. Apps can prompt users for permission, and in Apple Settings, users will be able to see which apps have requested permission to track so they can make changes to their choice at any time.

Advertisers have feared that ATT will trigger an uptick in users opting out to having their behavior tracked. Consequently, advertisers will have a harder time serving up targeted ads because they cannot track user behavior. This concern is well founded. As many as 96 percent of users in the United States are opting out of having their behavior tracked. A number of businesses are shifting their ad budgets to the Google Android operating system and away from Apple’s iOS.

Others are trying to find workarounds. And this is where Firebase comes into play.

How Firebase Works

Firebase is Google’s mobile, cloud-based platform that helps users quickly develop apps. People and businesses can use Firebase to accomplish a variety of tasks, such as accelerating app development and test the performance of apps, including A/B testing. Businesses can integrate Firebase with Google’s Android operating system, iOS, and the web. This Venture Beat article delves into more detail (probably more than an advertiser needs to know), and Google provides context as well.

Firebase becomes really interesting to advertisers for this reason: with Google Analytics for Firebase, a business can export its mobile app data (iOS and Android) to a Google-hosted data warehouse known as BigQuery. From there, a business can match behavior via Google User-ID, a feature that lets a user or business associate a persistent ID for a single user (with that user’s engagement data from one or more sessions initiated from one or more devices).

By contrast, before the era of ATT, an advertisers would have access to mobile device IDs for Android and iOS environments. The advertiser could download device IDs from Apple iOS. Then the advertiser could target different people directly with personalized ads – at scale. That’s because the advertiser would have access to those individual device IDs from app analytics accounts. But you cannot do that with Apple ATT anymore.

Firebase does not track mobile device IDs, per se. Rather, Firebase creates audiences inside Firebase based on user events, such as a person registering to use an app, installing it, or making a purchase on the app. With Firebase, the advertiser downloads that audience transaction data through the dashboard the advertiser uses to create Google ads. (For more detail, check out this article, which delves into the mechanics of managing data on Firebase to understand user behavior across apps.)

We have been using Firebase to support clients’ mobile ad campaigns, and we are seeing results. For one client, we’ve seen an increase in revenue by up to 7 percent over the past six months while cutting ad spend in half.

It’s important for True Interactive to continue delivering excellent results through online advertising. We’re actively monitoring our clients’ advertising performance results as we assess the impact of ATT. Yes, the world is changing. But as you can see from our client experiences with Firebase, an increased privacy control does not mean the end of effective advertising.

Contact True Interactive

To achieve results with online advertising, contact True Interactive. We’ve been helping our clients enjoy measurable results as these case studies show.  We’re happy to collaborate with you.

Why Streaming Companies Are Embracing Ads

Why Streaming Companies Are Embracing Ads

Advertising

Amazon got all the headlines with the news of its $8.45 billion acquisition of MGM on May 26. But days earlier, HBO Max made an announcement with equally big ramifications for streaming companies and advertisers: the launched of a tiered version in which consumers will pay less for a subscription that includes advertising. The news raised eyebrows. After all, HBO has essentially been known as something of a “walled-off garden”: freedom from advertising has been practically a calling card for the television network since its origination. The new offering is the latest example of a streaming company introducing ads — and a sign that HBO is paying attention to trends and consumer behavior. Let’s take a closer look at the news.

Ad-Supported Streaming Is Gaining Ground

HBO is clearly aware of a shift to more ad-supported services in the streaming realm. And as noted by CNBC, Nielsen data supports the uptick: “In January 2021, 34% of U.S. households that had video streaming capability used ad-supported streaming services, up 6 percentage points from January 2020 . . . That applies both to ad-supported on-demand video platforms and linear streaming.”

The advent of ad-supported services is just the latest chapter in the so-called streaming wars, which have been raging over the last year and a half as media and tech giants rolled out their versions of competitors to Netflix and Amazon Prime. Ad-supported tiers have become part of that contest, as streamers gauge what balance of ads consumers will tolerate — for a lesser fee.

HBO Max’s bid to navigate that balance is HBO Max With Ads, which at $10 a month represents a $5 discount to HBO Max’s ad-free subscription. Even with the discount, HBO Max is still one of the pricier alternatives out there. As CNET observes, “HBO Max’s $15-a-month ad-free pricing goes up against Disney Plus at $8 and Netflix’s cheapest plan at $9. Even among the services with discounted advertising-supported tiers, Hulu and Paramount Plus both charge only $6.”

But Julian Franco, vice president of product management at HBO Max, is confident that consumers will appreciate the dynamic their ad-supported platform creates (if at a higher price point): in Franco’s estimation, viewers won’t be bothered by the ads at all.

In some cases, that’s because even on HBO Max with Ads, there may not always be any. Franco explained that the amount of video advertising one sees — that is, the ad load — may vary depending on what one watches. Programs licensed to HBO Max, like Big Bang Theory, will have ad breaks. But programs that originated on HBO’s regular network won’t feature bumpers or spots during playback. Bottom line: HBO Max estimates that typical ad load for an ad-supported subscriber will clock in at just under four minutes per hour. If this projection holds true, HBO Max will be honoring its vow that it will have the lightest ad load in the streaming industry (NBCUniversal’s Peacock currently holds that crown, with an ad load of five minutes per hour).

Why Are Streaming Companies Introducing Ad-Supported Options?

In part, it all goes back to the streaming wars referenced earlier. More people are online watching content, a phenomenon that really picked up during the online surge of 2020. Streaming companies are competing for those eyeballs — and trying to entice viewers by offering ways those consumers can pay less.

Another factor: it costs a lot of money to operate a streaming service, whether you are producing original shows and movies (like Amazon’s new Lord of the Ring series) or buying rights to someone else’s content. Ads help defray those costs.

What’s Next: A Prediction

Will more streaming companies adopt advertising? Possibly so. But Netflix may not be able to pull it off. Netflix is spending billions to create new content, and the company has gradually increased subscription prices to recoup some of the costs. Netflix does not dare introduce advertising to its 200 million subscribers who are already paying a premium. But offering a lower-priced subscription with advertising may not attract enough subscribers at a time when its customer base is plateauing. I predict that Netflix will be sold to Apple. That’s because Apple has deep pockets and is eager to achieve brand cachet, which it lacks right now.  But Netflix has plenty of brand cachet. I could see Apple buying Netflix but allowing the company to keep its own name. Time will tell. But the day is coming.

What Advertisers Should Do

How should brands respond in this evolving environment? We suggest:

  • Consider the different options available. According to CNET, HBO Max intends to embrace some unconventional ad formats, including “pause ads,” which come up only after viewers have paused playback for at least 10 seconds, or a “branded discovery” option that places a sponsor’s banner at the top of a page of recommendations. Think about what format best serves your brand.
  • Use analytics to monitor the reaction to ads. The industry is still learning how receptive people will be to ads — and if different approaches, such as HBO’s effort to provide a more “high end” ad experience, engender a more positive response.

Contact True Interactive

Eager to learn more about this new world of advertising in the streaming world? Contact us. We can help.

Walgreens Doubles Down on Its Advertising Business

Walgreens Doubles Down on Its Advertising Business

Advertising

In December 2020, Walgreens launched its own advertising business, Walgreens Advertising Group, wag.  Now Walgreens is doubling down on advertising by expanding wag’s capabilities into over-the-top (OTT) services, connected TV (CTV) and traditional linear TV across 100 apps and 10 supply-side platforms, with an inventory of 2.5 billion daily impressions. This development demonstrates a growing trend of retailers using their customer data to provide advertising services.

What Walgreens Announced

Walgreens has touted wag as an effective way to leverage insights from 100+ million Walgreens loyalty members and one billion daily digital touchpoints with customers to create personalized advertising. wag provides businesses access to advertising platforms on Walgreens-owned and third-party channels, with the potential of achieving higher match rates versus the industry standard method of digital media buying. wag provides the ability to reach shoppers across digital display, video, social, streaming audio, email as well as Walgreens digital platforms and stores. On May 17, Walgreens announced that wag will extend its reach into television. According to Walgreens, the new capability consists of:

  • The addition of OTT & CTV inventory accessible via the wagDSP — a proprietary programmatic buying technology that integrates Walgreens customer and transaction data with dynamic creative capabilities and real-time optimization.
  • A first-to-market collaboration with OpenAP, and integration with the OpenID that enables brands to reach audiences powered by Walgreens first-party data as part of their television buys. Brands will be able to collaborate with Walgreens to execute against deterministic audiences now, and closed loop measurement will be in place by the start of the broadcast year.

Inventory is sourced through 100+ apps and 10 supply-side platforms with 2.5 billion+ available impressions daily, including access to inventory from key platforms.

Brands activating against this inventory can do so with all of the same functionality, optimization, and measurement capability as in digital video and display executed through the wagDSP. This enables people based media targeting, with measurement and real-time optimization.

Why the Expansion of Walgreens Advertising Group Matters

This news matters for two reasons:

  • wag’s expansion is part of a broader effort by retailers to capitalize on their own-first party data to provide advertising services. Retailers such as AmazonDollar TreeKrogerMacy’sTarget, and Walmart are all monetizing their first-party customer data by building ad businesses. Each retailer can give advertisers access to different types of consumers. For instance, wag gives advertisers access to consumers in the health and wellness space, and Macy’s is geared toward businesses wanting to reach fashion-conscious shoppers. We expect more of these platforms to emerge as businesses seek alternative ways to reach consumers amid the demise of third-party cookies, which are crucial for third-party ad targeting. With third-party ad targeting across the web threatened, platforms that give advertisers entree to shoppers within retailers’ walled gardens are more appealing.

What Advertisers Should Do

We suggest that advertisers:

  • Consider retailer-based ad networks as a complement to your existing digital ad strategy, not as a replacement. If your strategy focuses on Facebook and Google, for instance, don’t move your ad dollars over to a retailer network. Remember that Facebook and Google also already offer proven advertising products that capitalize on their vast user base. For example, location-based digital advertising tools help strengthen Google’s advertising services at the local level.
  • Do, however, monitor the effectiveness of your advertising on Facebook and Google amid the demise of third-party cookies and the onset of Apple’s App Tracking Transparency, which includes more privacy controls that may make Facebook ads less effective (which remains to be seen).
  • Learn more about the ad products that might apply to you – and those products are evolving, as the expansion of wag demonstrates. In addition, we recently blogged about how Amazon is creating more ad units. The time may come soon when advertising on the web means constantly capitalizing on walled gardens’ offerings.
  • Work with an agency partner that knows the terrain. For instance, at True Interactive, we help businesses advertise through connected TV, complementing our deep expertise with online advertising on Google, social media, and the retailer networks such as Amazon and Walmart.

Contact True Interactive

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

Why the Google Ad Juggernaut Is Back

Why the Google Ad Juggernaut Is Back

Google

Google’s advertising business has come roaring back. In 2020, Google found itself to be in the unusual position of seeing a downturn in its advertising revenue for the first time in 29 years. That’s because a pullback in ad spending among Google’s clients, many of whom come from a travel/hospitality industry ravaged by the COVID-19 pandemic, hurt Google even as ad competitors Amazon and Facebook were reaping a windfall. But Google’s recent financial results show that the downturn was temporary, and Google will continue to exert an enormous influence on the advertising world.

Recently, Google’s parent firm Alphabet announced quarterly earnings that exceeded investors’ expectations. Although the growth of Google’s cloud computing business had a lot to do with Alphabet’s success, the rebound of Google advertising played a big role, too. Google’s advertising revenue rose to $44.68 billion for the first quarter of 2021, up from $33.76 billion the year before, prompting CNBC to note that the ad revenue spike was the fastest annualized growth rate in at least four years. So, what can we conclude form the turnaround?:

  • Google is benefitting from the popularity of video. YouTube earned $6 billion in revenue for the quarter, increasing 49 percent from a year earlier. Earlier in 2021, we predicted a surge in online video consumption, a reality that has been borne out during the pandemic. To be sure, online video is much bigger than YouTube, as the success of TikTok demonstrates. But as Google reported later in 2020, during the pandemic, people were turning to video more as a learning tool when in-person learning options were shut down, which benefits YouTube given the amount of instructional content that exists there. The only question that remains now is whether the popularity of online video, and, by extension, YouTube, will remain as strong in a post-pandemic world.
  • Google’s Knowledge Graph is becoming more powerful. The Google Knowledge Graph consists of all the sources of information that Google draws upon to provide search results to queries. It’s a wonky concept that people in the search engine optimization (SEO) industry follow closely. But the Knowledge Graph applies to advertising, too. When Google provides answers to searches such as “Where can I find a plumber near me?” or “Where can I find Anime T shirts?” Google draws upon sources such as Google Maps, Snippets, and a company’s Google My Business (GMB) listings (among other sources) to share information about relevant businesses. Well, guess what? Google is doing such an effective job tapping into its Knowledge Graph to serve up answers on search engine results pages (SERPs) that people are finding answers to what they need on Google without needing to click anywhere else. More eyeballs on Google SERPs means that Google can deliver a larger audience to advertisers through Google Search. As Google becomes an even stronger all-purpose search tool (hard to believe given Google’s dominance in search already), the company becomes even more valuable to advertisers.
  • Google is creating its own future. As widely reported, Google has intensified its war against third-party cookies that are essential for businesses to deliver ads based on a person’s browsing behavior across the web. As Google forces the demise of third-party cookies, advertisers will need to tap into businesses that possesses first-party data (such as Amazon) in order to continue to deliver effective personalized ads. And as it turns out, Google is sitting on a lot of first-party data through that Knowledge Graph I mentioned. When people use Google Maps, YouTube, and other Google properties, they give Google a ton of information about their search and purchase habits, which Google uses to create better ad products. According to Brendan Eich, cofounder and CEO of the privacy-focused browser company Brave, “The reality is that Google already has first-party access to nearly every site—via Google Analytics, ad words, Google Tag Manager, Google Maps, etc.—and that its users are being data mined for profit.”

All of this is not to say that businesses need to dial up their advertising on Google. We’ve always recommended that advertisers go where their audience is, period. At the same time, Google has demonstrated the wisdom of businesses taking the long view with their advertising. The Big Tech ad platforms – Amazon, Facebook, Google, and Microsoft – have carved out a powerful space in the advertising world. Those companies are all big targets for critics, which has resulted in antitrust action and negative PR. But the negative PR can lead a business around by the nose, too, resulting in short-sighted thinking. The ad giants are not going away. If they’re important to your business – and I suspect they are if you’ve read this far into my post – don’t pump on the brakes in 2021.

Contact True Interactive

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

Photo by Brett Jordan on Unsplash