Why TikTok Has Embraced Social Shopping

Why TikTok Has Embraced Social Shopping

by Bella Schneider TikTok

TikTok has partnered with Shopify to make it possible for TikTok users to shop directly in the TikTok app. The headline here? Social shopping has become huge! Read on to learn more:

TikTok Made Me Buy It

TikTok, the video app that has taken Gen Z by storm, is perhaps best known as a go-to for short-form entertainment and memes. It’s not that products have been ignored. But up to now, TikTok has featured influencers who talk up merch—from clothing to household goods—and users could only buy those products through ads on the app.

Things have changed.

Now, with the Shopify/TikTok partnership, Shopify merchants participating in a pilot program can add a shopping tab to their profiles, then build a “mini-storefront” including prices, photos, and an “add to favorites” button. As Marketing Dive explains it, the storefront “leads users to [the brand’s] website upon checkout by syncing their product catalogs.” The shopping pilot is currently open to Shopify sellers in the U.S. and U.K., and will launch in other regions in coming months. (Merchants must have a TikTok For Business account in order to participate.)

The move is a savvy one, indicative of an understanding of a simple fact: users find merch that speaks to them on TikTok. According to The New York Times, two-thirds of TikTok users have been inspired to shop, even if that wasn’t their original intent when accessing the app in the first place. The phenomenon has gained enough attention that it even has a hashtag: #TikTokMadeMeBuyIt has garnered more than 4.7 billion views on the app.

TikTok isn’t alone: apps like Instagram, Facebook, Snapchat, and Twitter have all jumped onto the social commerce bandwagon. The data supports this trend: a recent eMarketer report reveals that social commerce sales in the U.S. have exploded, growing 35.8 percent this year, from $26.97 billion in 2020 to $36.62 billion in 2021.

Although TikTok is relatively new to this crowded field, it’s already demonstrated that it has a talent for making merch go viral. As we have blogged, TikTok collaborated with Walmart last December to host a shoppable livestream event. The response was . . . significant, with viewership exceeding expectations so spectacularly that a second event was scheduled for March 2021.

It’s also worth noting that TikTok Shopping is meant to appeal to brands large and small. As Blake Chandlee, the president of global business solutions at TikTok, said in a statement, “TikTok is uniquely placed at the center of content and commerce, and these new solutions make it even easier for businesses of all sizes to create engaging content that drives consumers directly to the digital point of purchase.” And brands are taking note. Kylie Jenner’s Kylie Cosmetics is pegged to be one of the early TikTok Shopping adopters.

Why the News Matters

These developments underscore how big social shopping (also known as retail social commerce) has become. As noted above, eMarketer has acknowledged the multibillion-dollar industry retail value that social commerce represents. The market research company goes on to make a bold projection, predicting that 2020’s $26.97 billion in sales “will more than double by 2023, when we predict retail social commerce earnings will hit $56.17 billion.”

eMarketer also notes that social shopping is particularly popular with the surging Gen Z population. That’s good intel for brands hoping to reach this audience. Per eMarketer, more than half of U.S. social media users aged 18 to 24 have used a social channel to make purchases. eMarketer also says that in the United States, it’s the Millennials who are most likely to rely on social media networks as important information sources when deciding what to buy.

What Brands Should Do

How to incorporate social commerce into your marketing plan? We recommend that you:

  • Understand your audience. Are you reaching out to Gen Z? Boomers? Not all social commerce platforms are the same. TikTok resonates with Gen Z and Millennials. Boomers tend to gravitate to Facebook. Ask yourself: who am I trying to reach, and where can I find them?
  • Learn how to use the tools available to you. Each platform will have its own requirements for creating content. In addition, all of these popular sites will demand a strong understanding of how to use visuals—anymore, it’s essential that brands know how to create powerful imagery.
  • Appreciate how influencers can be a powerful ally to your brand. How might you partner with influencers to reach your audience online—and fan the flames of demand?
  • Make sure you are teed up for success. As we’ve blogged, many businesses have struggled to manage the surge in demand that can happen when they attract more shoppers with an intent to buy. Make sure your online fulfillment is up to handling an uptick in sales.

Contact True Interactive

Now more than ever, there are multiple ways brands can connect with their audience—and facilitate purchases. Contact us to learn more about leveraging the exciting digital opportunities out there.

How Snapchat Keeps Innovating with Augmented Reality

How Snapchat Keeps Innovating with Augmented Reality

by Bella Schneider Social media

As we’ve blogged, Snapchat has been demonstrating a profound appetite for investing in augmented reality (AR). It could even be argued that Snapchat is the most AR-driven platform out there, continuing to reimagine what AR experiences might be on mobile and beyond. Let’s take a look at how Snapchat is leading the pack when it comes to AR innovation.

AR: the “Ace in the Hole”

AR is such an area of strength that it might be considered Snapchat’s “Ace in the Hole.” As Medium observes, “One of the reasons that Snapchat is able to carve out its own niche in the increasingly combative social media arena is its singular focus on AR-powered visual communication, which differentiates Snapchat from its competitors.”

Snapchat Data

Recent Developments with AR at Snapchat

That’s a message Snapchat has energetically promoted, and underlined with a commitment to new AR features. Consider the following additions:

  • The Connected Lens allows two Snapchat users to share an interactive AR experience, whether they are sitting side-by-side in the same room or located miles apart from one another (in a demo, Snapchat partnered with Lego to show how two people can build a virtual Lego set together using the AR lens). In a post-pandemic world where social interaction has become a sort of Holy Grail, AR facilitates connection. And that makes AR more relevant than ever right now.
  • Snapchat has also worked to improve Scan, its built-in visual search tool. Scan, which helps users ID everything from songs to car models, now has a new feature, Screenshop, which recommends clothing purchases based on photos of outfits.
  • Snapchat also hasn’t forgotten the importance of sometimes . . . just having fun. The Cartoon 3D Style by Snapchat lens scans your face and then imposes upon it a 3D cartoon look — as if the user has just stepped out of a Pixar film. The lens uses AR technology, and results are impressively realistic.

Calling All Creators

Snapchat isn’t just expanding its AR features willy nilly; its investment in AR is informed by the desire to grow a vigorous creator community. It does this by giving creators useful tools—and the possibility of rewards.

Consider the standalone iOS app, Story Studio, which provides a suite of vertical video editing tools. Or the new Gifting feature, which attracts creators with the promise of monetization. Gifting gives users a way to tip their favorite Snap creators. Also new: a Creator Marketplace, which allows businesses to locate and pair up with Snapchat creators. 

AR Platform for Brands

So, are businesses spiking an interest? There’s certainly reason to: according to Medium, Snap has said its users “are two times more likely to make purchases if they have interacted with a product via AR lens than not.” That’s a powerful incentive for brands.

 

Snapchat data

Some, like Estée Lauder, have already risen to the challenge. According to Medium, the cosmetics giant has been recognized as “one of the first companies to integrate their product catalog through Snapchat’s API, which makes it easy to create and publish new Dynamic Shopping Lenses that include price, availability, and a path to purchase.” Other brands that have successfully employed AR try-ons and shoppable lenses include Gucci, American Eagle, and the eyewear brand Clearly.

What Should Advertisers Do?

Could your brand likewise benefit from a partnership with Snapchat — and an exploration of AR? Ask yourself the following:

  • Might AR provide some fresh opportunities for your advertising? If so, Snapchat is an excellent platform to try it on.
  • What do you know about AR? According to Threekit, a tiny one percent of retailers are currently using AR or virtual reality in their customer buying experience. And yet a whopping 61 percent of consumers indicate that they prefer retailers that incorporate AR experiences. Does it make sense for your brand to get in on the ground floor?
  • Finally, are you hoping to reach the Millennial and Gen Z audiences? The Threekit stats also note that 70 percent of consumers aged 16 to 44 are at least aware of AR. Snapchat — and AR — can be a meaningful way to reach this group.

Contact True Interactive

 AR can be a powerful go-to in a brand’s toolkit. Contact us to learn more. We can help.

Brands Killing It with Social Commerce

Brands Killing It with Social Commerce

by Bella Schneider Social media

As we’ve blogged, social commerce is gaining traction as a way to bring attention, and sales, to brands. Although social commerce is still in the early stages of real growth, businesses are already embracing its elements in increasingly interesting ways. Read on to learn about companies who are doing a great job in this arena and making the most of the opportunities social shopping affords:

Creating Community

So you’ve got a Facebook page set up for your brand? Don’t stop there: according to growcode.com, “[s]ome companies attribute as much as 50% of their sales to Facebook groups!” But it’s not just sales that drive these groups; it’s the opportunity for discussion that draws users in the first place.

Consider how Mokosh, a Polish natural cosmetics brand, positioned its Facebook group called MOKOSH Lovers. Customers join the group to ask for skincare advice; they also share their own experiences with the brand and suggest improvements. A meaningful exchange takes place between user and brand. And during an era still defined by the limitations of Covid, the group is also a way for users to connect and “belong” to a cohort of people who share their interests and tastes.

Some brands underline the value inherent in belonging by offering special perks to Facebook group members. The ZigZag Stripe, an online women’s clothing boutique, distributes special offers. Group members are introduced to new arrivals 24 hours before other shoppers, and they have access to exclusive products and live sales.

Engaging Shoppers from Afar

Chatbots can also create some interesting opportunities in the realm of customer engagement on social. Avon, for example, makes it possible for shoppers to “try on” different lipstick shades on camera, using Messenger. Thanks to the messenger chatbot, a special plugin, and camera filters, users can get a sense of whether a color suits them before ordering. Chatbots can also be used to share newsletters or distribute promo codes.

Wooing Youth Culture

Meanwhile, American Eagle Outfitters has pushed the social shopping envelope by partnering with Snapchat in an augmented reality experiment that focuses on denim. As reported in Yahoo! Finance, the clothing and accessories retailer worked with Snapchat to come up with a campaign that centers on American Eagle’s biggest category: jeans. Thanks to the AE x Snapchat 3D Shoppable Jeans Guide, Snapchat users can peruse different AE jeans styles and silhouettes. They might view different washes, learn styling tips, and even see 3D views of how a pair of jeans looks on different body types—by “twisting the world-facing camera on their mobile devices.”

The campaign, which features Chase Stokes and Madison Bailey, stars from the Netflix show “Outer Banks,” targets Gen Z. “Gen Z is clearly looking for new ways to shop,” notes Craig Brommers, American Eagle’s chief marketing officer, who notes that approximately 50 percent of Gen Zers use Snapchat every day. “And wherever Gen Z wants to shop is where you need to go, because if you aren’t innovative, you’ll be left behind.” To that end, shoppers can make American Eagle purchases directly through the app, and share reactions to styles with Snapchat friends.

Generating Buzz

Instagram is also a powerful social commerce channel. As reported in growcode.com, a recent Yotpo study reveals that a whopping 72 percent of respondents say that seeing a product depicted on Instagram increases the chances they’ll buy it; almost 40 percent claim they frequently buy products they see on Insta. The app’s dedicated social selling features, like the “tap to shop” function, definitely give brands a way to take advantage of these tendencies. And companies like Sephora use product tagging to make it easy for shoppers to directly access the brand’s online store. Anything a user sees in a given image, be it brow pencil or blusher, can be purchased in only a couple of taps. The process is easy and seamless, increasing the chances Sephora will earn sales from the initial buzz generated by Insta posts.

Contact True Interactive

How can your brand capitalize on the new opportunities social commerce affords? Contact us. We can help.

Social Commerce Is on the Rise

Social Commerce Is on the Rise

by Bella Schneider Advertising

Social commerce is on the rise. According to a new report from eMarketer, the pandemic has fueled a surge in e-commerce across the board, and social commerce in the U.S. has benefitted from that acceleration. By all accounts, it will continue to do so: the prediction is that social commerce will gain even more traction as platforms boost their checkout and shopping functions. What does this news mean for your brand? Read on to learn more.

The Market Is Growing

Social commerce is certainly enjoying a banner year already. eMarketer predicts that in 2021, U.S. retail social commerce sales will rise to $36.09 billion — a whopping 34.8 percent leap that would represent a 4.3 percent piece of the retail ecommerce sales pie. The prediction comes on the heels of a revised 2020 social commerce forecast: from 19.8 percent growth to 37.9 percent growth.

Social Commerce Hot Spots

Because of their focus on images, Instagram and Pinterest have a leg up on displaying merchandise; it’s probably no coincidence, then, that both platforms, as eMarketer points out, “provide the most relevant social commerce experiences for brands today.” Instagram and Pinterest have also been enjoying exceptionally strong growth. And both sites have been very proactive about developing business tools that make it easier to sell products and services online.

For example, Pinterest offers tools such as:

  • Product Pins, through which a business can connect its product catalog to Pinterest, filter and organize inventory, create shopping ads, and measure results.
  • Promoted Pins, which appear in search results and home feed as regular pins do, but are targeted and boosted to deliver more reach. Users can pin them to boards, comment on them, and share them. Note that after a Promoted Pin is shared once by a Pinner, the “Promoted” label disappears, with repins considered “earned media.”
  • Promoted Carousels, which feature two to five swipeable images. This can be a useful format for brands wishing to showcase multiple products or features.

But it’s Instagram that has really rocked social commerce by continuously offering tools that make it easier for brands to use the platform for sales. Consider features such as:

  • Instagram checkout, which facilitates simple, convenient, and secure purchases made directly from Instagram. As we’ve blogged, shopping from Instagram means protected payment information is kept in one place. So Instagrammers can shop multiple favorite brands without having to log in and enter intel multiple times.
  • Instagram Live, which allows checkout-enabled businesses to sell products through “live shopping.” In live shopping, consumers might be inspired by a creator or brand’s live video content and subsequently buy promoted products in real-time.

Platforms such as Facebook, Snapchat, and TikTok are also making moves to stay competitive. As we’ve blogged, TikTok has been doubling down on social commerce, especially in the arena of livestreaming. Consider the site’s recent collaboration with Walmart, in which shoppers could check out Walmart’s TikTok profile to see fashions highlighted by TikTok creators like Michael Le (it’s worth noting that categories like apparel/accessories really lend themselves to social commerce). Using mobile checkout, consumers could then buy the same products they saw in the livestream.

What You Should Do

Eager to incorporate social commerce into your marketing plan? We recommend that you:

  • Do your homework on your audience. Not all social commerce platforms are the same. Pinterest tends to appeal to Millennial women, TikTok to Gen Z and Millennials as a whole. Ask yourself: what demographics am I trying to reach?
  • Learn how to use the tools available to you. Each platform will have its own requirements for creating content. In addition, all of these popular sites will require a strong understanding of how to use visuals — it behooves you to make creating powerful imagery a strength. Finally, if you choose to get into live commerce, you’ll need to get really savvy about using livestreaming effectively.
  • Make sure you are set up for success. As we discussed on our blog in January, many businesses are struggling to manage the surge in demand that happens when they attract more shoppers with an intent to buy. Make sure your online fulfillment can handle the demand.

Contact True Interactive

How might social commerce fit into your brand’s digital marketing plan? Contact us. We can help. Read about our expertise in online shopping here.

Photo by Jakob Owens on Unsplash

Live Commerce: Advertiser Q&A

Live Commerce: Advertiser Q&A

by Bella Schneider Marketing

Twenty years ago, online shopping transformed retail; today, live streaming is poised to shape e-commerce. “Live commerce” is a term applied to the partnering of streaming video and shopping. Read on to learn more about the concept dubbed “QVC for the digital age.”

What Is Live Commerce?

The QVC analogy is an apt one. Back in the 1980s, home shopping network QVC expanded shopper reach by connecting with consumers in their homes. Television was the medium; suddenly, shoppers could browse and buy in the middle of the night, from the comfort of a favorite living room chair. With live commerce, consumers can still make purchases from their homes, but the fusing of online retail with live streaming brings shoppers even closer to the energy of an in-person experience. Live commerce can take different forms:

  • Online marketplaces. Marketplaces like eBay have traditionally allowed users to buy and sell online. These same marketplaces are now responding to consumer behavior by incorporating live streaming into their platforms. The real-time interactivity replaces static exchanges with the energy and experience of actually “being” in a marketplace.
  • Live auctions. Live video streaming gives auction houses an opportunity to bring bidders from all around the world into the saleroom. The benefit? An institution like Sotheby’s can reach a broader audience with widely varied interests.
  • Influencer streaming. Using live streaming, influencers can leverage their personal brand to promote their favorite products in an interactive format. While influencer streaming got its start on social media, the practice is now common across e-commerce sites, as well. (Brands targeting Gen Z take note: influencers especially resonate with the Gen Z generation. According to Wowza, 44 percent of that demographic make purchase decisions based on social influencers’ recommendations.)
  • Live events. Events like product launches, limited edition drops, and retail holidays such as Black Friday are well suited to shoppable live broadcasts.

Why Is Live Commerce Popular Now?

Before 2020, online commerce was already gaining traction. Then the pandemic hit. According to IBM’s U.S. Retail Index, COVID-19 hastened the shift from shopping at brick-and-mortar stores to digital shopping by approximately five years. And home shopping channels like QVC, which had already started exploring on-demand video shopping prior to 2020, enjoyed a surge of popularity with Americans staying home because of COVID-19. Econsultancy reports that between March and May of 2020, viewership for networks like Home Shopping Network and QVC rose 10 percent.

The interactive nature of live commerce has made it particularly resonant during the pandemic. People are social beasts. They crave connection. During COVID-19 lockdowns, when social interaction has been limited, being able to ask questions about a product or directly interact with an influencer online helps fill that need to connect.

Who Is Embracing Live Commerce?

Live commerce is a huge market in China; according to a survey by AlixPartners, reported in November 2020, two-thirds of Chinese consumers say they made purchases via livestreaming in the previous 12 months. But United States brands are also getting on board:

  • An early adopter of livestream shopping in the US, Levi Strauss reached out to consumers afraid to visit brick-and-mortar stores during the pandemic. Shoppers could ask questions—and make purchases—during 30-minute to one-hour sessions devoted to featured products and tips.
  • Walmart and TikTok recently worked together on a livestreamed shopping event. During the “Holiday Shop-Along Spectacular,” TikTok creators like Michael Le showed off their favorite Walmart fashions on Walmart’s TikTok profile, and shoppers could buy the same products using mobile checkout.

How Should Brands Be Involved?

Live commerce can help brands connect with consumers in meaningful ways, even when physical contact is limited. Interested in experimenting with what live commerce can do for you? We recommend that you:

  • Do your research before working with an influencer. Find the right match for your brand. Does it make sense to work with a superstar? It can be more economical to work with micro-influencers who draw a strong following from a geographical region or niche industry relevant to your brand. (According to Econsultancy, micro-influencers can also generate higher levels of trust and authenticity.)
  • Pay attention to the “commerce” part of live commerce. Does your checkout process run seamlessly? Make sure it does before unrolling a live commerce campaign.
  • Continue to make customer experience a priority, even after checkout, even from afar. Live commerce can never exactly re-create the in-store shopping experience, but taking shoppers’ needs into consideration goes a long way towards building customer satisfaction—and brand loyalty. Zappos, an early e-commerce adopter, is an instructive example. By encouraging customers to order multiple sizes of an item, then making it not only easy, but free to return anything that didn’t fit, Zappos built satisfaction and encouraged return visits.

Contact True Interactive

Want to learn more about live commerce—and how digital can elevate your brand? Contact us. We can help.

2021 Advertising and Marketing Predictions from True Interactive

2021 Advertising and Marketing Predictions from True Interactive

by Kurt Anagnostopoulos Advertising

If 2020 had a few surprises up its sleeve, the year certainly set the stage for 2021. In the months ahead, businesses are poised to transition more boldly to a digital-first economy, which includes a more seamless approach to e-commerce and increased opportunities for engaging with people through immersive experiences such as e-sports. At the same time, businesses will continue to navigate an increasingly complicated consumer privacy landscape. All those trends, and others, will influence the uptake of digital advertising and marketing in 2021. Read on for our fearless predictions for the year:

E-commerce Grows Up

We’ve all heard the same statistic bandied about: in 2020, the pandemic accelerated the shift to e-commerce by five years, according to IBM. But that doesn’t mean the acceleration went smoothly. As we saw during the holiday season, the surge in online commerce has exposed cracks in the seams for many retailers. Sellers struggled with a variety of issues ranging from stocking items properly to following through with orders. Going into 2021, these challenges are forcing companies to integrate all their processes (online, in store, shipping logistics, etc.) more seamlessly. Larger retailers such as Target and Walmart have already successfully expanded services such as curbside pick-up, which make it possible for shoppers to buy online and pick up merchandise at the store without needing to go inside. Going forward, they’ll follow Amazon’s lead and invest more in their own shipping and delivery services to own the order fulfillment process (Target and Walmart already have them – they’re still refining them, though). As we have seen during the holidays, the strain on shipping services such as FedEx and UPS is becoming unacceptable to retailers, and if they lack the resources to build out their own delivery services, they will partner with businesses such as InstaCart.

In addition, learning from the events of 2020, retailers will likely become more nimble in their approach to advertising and supply chain management in order to adapt to quickly changing shifts in consumer demand. They’re going to do a better job using tools such as Google Insights to adapt their campaigns to consumer behavior. The key will be to ensure their supply chain processes are as nimble.

— Kurt Anagnostopoulos, co-founder

Rough Sledding for Facebook

It may be rough sledding ahead for Facebook in 2021. Do a quick Google News search for Facebook and you will see a slew of articles depicting the challenges the social media giant currently faces. At the top of the list? News that more than 40 attorneys general and the U.S. government are expected to sue Facebook for alleged antitrust violations. And while Mark Zuckerberg has routinely appeared at congressional hearings addressing concerns of privacy, misinformation, and censorship, this latest lawsuit might be a final awakening for businesses who use Facebook as an ad platform.

Adding to Facebook’s already uphill battle is the release of the Netflix documentary, The Social Dilemma, which explores the dangerous human impact of social network platforms as told by tech experts who expose secrets behind their own creations. Many media outlets reported a wave of people canceling their social media accounts after viewing the documentary. Of course, Facebook has slammed the documentary, claiming it’s full of misinformation, but is the damage already done? Even if the documentary did not get all the details right, it has undeniably affected public perception of social media platforms. And if even a fraction of current users de-activate their accounts, this will absolutely have a negative impact on audience size available to advertisers. More importantly, with the continued negative publicity surrounding the biggest social media platforms, are businesses really going to want to ramp spend on Facebook and Instagram? My prediction is no. After a crazy year filled with pandemic fears and general social unrest, I do not believe businesses are looking to invest in platforms embroiled in controversy. And if media spend is pulled from some of the social media giants, it may leave the door open for other search engines or community-based ad platforms to emerge. Stay tuned!

— Beth Bauch, director, digital marketing

Walmart Gains Ground as an Ad Platform

The Walmart marketplace is still very much in its infancy. I believe that 2021 will lead to exponential growth of Walmart’s advertising services, and the company will become more competitive with Amazon in this regard. The current platform is still very small scale and, technically, still in beta or just out of it. Many larger advertisers have not been invited to join the Walmart marketplace because it is still so brand new. I believe that Walmart will enjoy a large jump in advertising on their app and site Q1-Q2 2021.

— Tim Colucci, vice president, digital marketing

Augmented Reality Takes Hold

I think in 2021 we will see more brands invest money into creating virtual experiences for their customers. Augmented reality (AR) was already becoming popular before the onset of COVID-19, but now, given the urgency to shop online during the pandemic, consumers are missing the in-store experience of physically trying on items. And retailers are responding with AR: Warby Parker, for example, has created a virtual try-on for their glasses via their app. My glasses broke this weekend, and instead of going to a Warby Parker store to try on different frames, I could use their app to see what the glasses would look like on me, and felt more confident ordering online. Another brand capitalizing on the opportunities inherent in AR? A make-up line called NARS. They allow you to experiment with their products, such as blush and eye shadow, through a virtual try-on feature. Overall, I think more retail brands will create virtual shopping experiences for their customers in 2021.

— Taylor Hart, senior digital marketing manager

E-sports Dominates

The world of e-sports is never one to stop changing. With e-sports accumulating a total revenue that reached more than $1 billion in 2020 (a $150 million increase from 2019), we can only expect that to continue to rise in 2021. Given the ongoing global pandemic and application of stricter stay-at-home rules, more and more people will turn to e-sports as another form of entertainment. It all starts with streaming services that allow e-sports players to become household names in the gaming industry. Giving these players an opportunity to reach tens, potentially hundreds of thousands of viewers without leaving their home is something advertisers can only dream of. Players will do sponsored streams, with designated ad reads to be presented at certain points during the broadcast. The NFL is also getting involved with Twitch (the biggest live streaming platform), getting some of the big name streamers (e.g., NICKMERCS and TimTheTatman) to watch Thursday Night Football on stream with various advertisers as sponsors. Watch for more professional sports and entertainment services to follow in the footsteps of the NFL and try to reach this large, somewhat untapped market.

— Max Petrungaro, digital marketing associate

Privacy Dominates the Executive Agenda

For years, CEOs and CMOs have treated consumer privacy as a problem for their information technology teams to worry about. No longer. Privacy is rapidly becoming a C-level problem that can damage a company’s reputation if managed poorly. A variety of forces have elevated the importance of privacy in the United States. First off, the state of California rolled out a tough privacy act, the California Consumer Privacy Act, in January 2020, and then made the law more strict in November. Because California is one of the world’s largest economies and is a bellwether state, what happens there will influence how other states treat consumer privacy. In addition, the big technology firms are already under close scrutiny, and the new presidential administration is likely to take an even closer look at their privacy practices.

Speaking of the tech giants – their actions are casting a spotlight on privacy. As widely reported, Facebook has launched a public campaign attacking Apple’s privacy iOS 14 updates, which are going to make it harder for Facebook and other platforms to target users with ads. Meanwhile, Google continues to move forward with its plans to stop supporting third-party cookies on the Chrome browser by 2022 – an action that continues to reverberate across the ad industry. In 2021, businesses will face a year of transition as they navigate an increasingly complicated consumer privacy landscape. The challenge involves more than reacting to changes in legislation and cookie tracking technology; advertisers also need to stay on top of emerging tools such as Verizon Media’s ConnectID, designed to manage ads without the use of third-party cookies. School will be in session constantly.

— Mark Smith, co-founder

More Social Shopping

With the world of online shopping expanding in 2020 due to the pandemic, I predict that 2021 will bring new ways to shop across social. Instagram has already released its e-commerce store to elevate shopping online. I predict that the platform will continue to refine its online shopping tools, even as more social networks follow Instagram’s lead and create additional opportunities for shopping right from consumer smart devices.

— Bella Schneider, digital marketing manager

Online Video Explodes

Online video is going to explode as the number of streaming services expands. I believe we are also going to see a cheaper, monthly subscription option (akin to the base Hulu subscription) that includes video ads as a way to subsidize lower-cost services. It is rumored that HBO Max will offer this option, but I believe we will see similar offerings from Peacock, Disney+/Hulu (which I believe will be combined at some point . . . in 2021?), and Amazon Prime. I think the opportunity for more ad space is going to be too good to pass up as more and more consumers cut the cord OR sign up for multiple streaming services. In addition, I believe we will see other live TV options becoming available from streaming services: cord cutters will still have the opportunity for live TV . . .  plus the ad space that goes along with it.

— Tim Colucci, vice president, digital marketing

Contact True Interactive

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

Photo by Ian Taylor on Unsplash

Three Reasons Why Snapchat Is Back

Three Reasons Why Snapchat Is Back

by Bella Schneider Social media

Snapchat has come roaring back. Its parent company, Snap Inc., was once on the verge of collapse, but recently it posted stronger-than-expected quarterly earnings: according to a FactSet poll, while analysts had estimated revenues around $557 million, Snap’s quarterly revenue in fact enjoyed a 52 percent rise to $678.7 million. And its stock value is soaring, with shares gaining 74 percent this year through the October 20 close.

Why is Snapchat rebounding?

Reasons for the Rebound

Understanding Snapchat’s renaissance means understanding the factors in play during a complicated year:

  • Snapchat’s user base has grown. According to Adweek, the social media company has seen 249 million daily users in the third quarter of 2020: that’s an 18 percent increase from the 210 million users noted for the same period last year, and 11 million more new daily users since last quarter. Notably, the growth is not restricted to the United States: in India, for example, daily active users in the third quarter are up almost 150 percent from the same time in 2019. The growth makes sense: as The New York Times reported earlier this year, “Stuck at home during the coronavirus pandemic . . . Americans have been spending more of their lives online.” That online phenomenon has been repeating itself again and again around the globe during this year of COVID-19, and at least some of those users are gravitating to Snapchat.
  • Advertisers are spending money on Snapchat. The July ad boycott of Facebook, which protested the company’s policies on hate speech, may have helped Snap in terms of where advertisers are channeling their dollars. TikTok’s troubles, both domestically (attempts by the Trump administration to ban it) and abroad (India’s successful TikTok ban) also likely gave advertisers pause. While Snap has declined to draw a direct line between other companies’ struggles and its own resurgence, Chief Business Officer Jeremi Gorman said in a prepared statement, “As brands and other organizations used this period of uncertainty as an opportunity to evaluate their advertising spend, we saw many brands look to align their marketing efforts with platforms who share their corporate values.”

In another example of innovation, Snap Inc. worked with Headspace to mark World Mental Health Day on October 10, releasing two new meditations in Snapchat’s Headspace Mini. During a year when Snapchatters in the U.S. are feeling significant stress — a survey by independent research company GroupSolver indicates that COVID-19, finances, politics, and school are leading sources of that stress —the meditations, called Snap Minis, are “bite-sized utilities” that require no installation and are accessible via chat and search. Headspace director of meditation Eve Lewis guides the meditations, which run approximately six minutes each and focus on practicing kindness and navigating uncertainty during the school year.

What Should Advertisers Do?

What does this news about Snapchat mean for brands? We recommend that advertisers:

  • Consider Snapchat if you are interested in the Millennial and Gen Z markets. As we’ve blogged, the app appeals to these demographics. Meet your desired audience where they are at—and right now, these powerful demographics can be found on Snapchat.
  • Consider Snapchat to be a complement to your advertising with Amazon, Facebook, and Google. Snapchat is not going to challenge the Big Three. But if you are interested in experimenting with technologies such as augmented reality, Snapchat is a good platform to try.

Contact True Interactive

Should Snapchat be part of your digital plan? Contact us. We can help.