Why Amazon and Facebook Are Catching up to Google

Why Amazon and Facebook Are Catching up to Google

Advertising Amazon Facebook Google

The race to lead the online advertising market is getting tighter. According to a new report from eMarketer, Amazon Advertising and Facebook are catching up to Google’s share of the online advertising market. Let’s take a closer look.

What eMarketer Reported

eMarketer says that in 2020:

  • Amazon’s share of the online advertising market increased from 7.8 percent in 2019 to 10 percent in 2020.
  • Facebook’s share increased from 23.6 percent to 25.2 percent.
  • Google’s leading share dropped from 31.6 percent to 28.9 percent.

To put this data in perspective, eMarketer says Google’s share of online advertising was 38.6 percent in 2017.

What Does the Marketer Data Mean?

  • Amazon Advertising is only going to get bigger. That’s because Amazon delivers advertisers insight on its vast customer base – and not just casual searchers, but people searching with intent and making purchases. Per eMarketer, Amazon is enjoying growth across the board — search revenues from Sponsored Products and Sponsored Brands, and video ad revenues on properties including Amazon Fire TV, Twitch, and IMDb TV. It’s worth noting that Amazon’s growth is coming not just from ads on Amazon.com but from the Amazon network, as noted (e.g., Twitch and IMDb). That means Amazon is figuring how to use data about its customer base to expand its ad services across the web. In addition, as we noted on our blog recently, Google’s crackdown on third-party cookies is favorable to companies such as Amazon that know how to sell ads based on their massive inventories of first-party cookie data.
  • Facebook and Google are doing just fine. Despite Google’s drop in market share, the company generated a whopping $147 billion in ad revenue in 2020. Google saw a dip in its ad revenue in 2020 because its travel advertisers were hit hard by COVID-19, but the company came roaring back in the back half of the year. Google’s ad revenue actually increased by 9 percent year over year. The decrease in Google’s market share may actually help the company combat multiple anti-trust lawsuits at the state and federal level. Meanwhile, Facebook continues to reap the benefits of being the world’s largest and dominant social media network. Despite numerous controversies, Facebook enjoyed advertising growth in 2020. An increase in its user base has played an important role. That growth spiked owing to the massive uptake of social media that occurred during COVID-19, but Facebook’s user base has been climbing for years. Simply put: there is a disconnect between news media criticisms of Facebook and the behavior of its user base.

What Advertisers Should Do

  • First, follow your audience. Make your advertising investments based on the journey your own customers are making. Most customers rely on multiple digital touchpoints on their way from awareness to purchase. It’s likely that no single ad platform will (or should) dominate your spend. Incorporating Amazon, Facebook, and Google into your ad spend is probably not going to be an either/or choice (more about that on our blog).
  • Do your homework. The ad giants are going to launch more ad tools as the market place becomes more competitive. Amazon recently launched Amazon Live, which makes it possible for retailers to use livestreams to sell products – part of the live commerce trend we blogged about recently. In addition, up-and-comers such as Walmart Connect and Macy’s will launch more ad products as they capitalize on their own first-party data to generate more ad revenue.

Contact True Interactive

At True Interactive, we’ve been helping businesses succeed through online advertising for many years. Our services span Google, Facebook, Amazon Advertising, and much more. Contact us to learn how we can help you.

 

Why the Rise in Zero-Click Searches Matters – to You and Google

Why the Rise in Zero-Click Searches Matters – to You and Google

Google Search

Google has become so powerful that it’s the subject of anti-trust lawsuits at the federal and state levels. That’s probably one reason why Google is feeling a bit touchy about a recent SparkToro report that 65 percent of all Google searches don’t click through to a website. Instead, people are finding answers to what they need on Google’s search engine results pages (SERPs) without needing to click anywhere else. Let’s take a closer look.

What Exactly Is a Zero-Click Search, and Why Does It Matter?

A zero-click search happens when someone searches for answers to a question – say, “Where is the closest car rental?” or “When is Earth Day 2021?” – and then finds the answer to their question on a SERP without clicking on a website for further information. For example, let’s say I find an answer to “Where is the closest car rental?” with the following local pack search result:

Google Local Pack

If I don’t bother clicking through to a website in the above local pack, and instead find what I need from the local pack itself, I have performed a zero-click search. And a SERP may display answers in many other ways, such as a featured snippet, image carousel, Google Ad, Google News, featured video, and more.

The term “zero click” was coined by SparkToro’s Rand Fishkin after SparkToro reported in 2019 that half of searches on Google do not result in a click on a website. Two years later, that number has climbed to 65 percent. Here’s what SparkToro said:

From January to December, 2020, 64.82% of searches on Google (desktop and mobile combined) ended in the search results without clicking to another web property. That number is likely undercounting some mobile and nearly all voice searches, and thus it’s probable that more than 2/3rds of all Google searches are what I’ve been calling “zero-click searches.”

This chart illustrates the findings:

SparkToro Zero Click chart

Industry watchers follow the zero-click phenomenon because it underscores the importance of complementing your website content with Google Ads, featured snippets, and many other types of search results that make your brand more visible on Google Search, Google Maps, and other elements of the Google universe.

Why Do Zero-Click Searches Matter to Google?

The rise of zero-click searches is a two-edged sword for Google. On the one hand, the SparkToro report shows why businesses need to choose Google as their home base for creating paid and organic content. More eyeballs on Google SERPs means a bigger audience for advertisers.

But the downside is that Google looks too powerful. This kind of attention does not serve Google well at a time when the company is fighting anti-trust lawsuits. In fact, Google has voiced opposition to the research. In a recent blog post, Google said,

This week, we saw some discussion about a claim that the majority of searches on Google end without someone clicking off to a website — or what some have called “zero-click” searches. As practitioners across the search industry have noted, this claim relies on flawed methodology that misunderstands how people use Search. In reality, Google Search sends billions of clicks to websites every day, and we’ve sent more traffic to the open web every year since Google was first created. And beyond just traffic, we also connect people with businesses in a wide variety of ways through Search, such as enabling a phone call to a business.

Google went on to knock the research SparkToro used. Among other things, Google said that SparkToro did not properly account for people navigating directly to apps or refining their queries after what appears initially to be a zero-click search.

In addition, as we have blogged, Google is trying to encourage businesses to adopt Google’s tools (under development) to maximize the value of their first-party data on their websites. If 65 percent of searches are not resulting in clicks on websites, the value of first-party data may get called into question.

What Should Brands Do?

It’s always been a good idea to balance the content you publish on your website with content across the digital world ranging from your Google My Business (GMB) listing to social media. That principle does not change in a zero-click world. We suggest:

  • Keep close tabs on your website data. Are you satisfied with visits, views, and click-through rates on your website? Are they staying at a level you want, going up, or going down? If your site is not performing where it should, first examine what needs to be fixed using tools such as website audits. You may need a tune-up, anyway.
  • Do build up your GMB listing. Why? Because according to Moz, your GMB listing is the biggest local search ranking signal (followed by reviews and proximity). If organic queries are increasingly going to your GMB and staying there, then make sure you’ve optimized your GMB content – including images, customer ratings/reviews, and location data – to be found.
  • Link your GMB account to your Google Ads account. Linking your GMB account to your Google Ads account makes it possible for your ads to appear with location extensions, which encourage customers to visit your storefront. Through location extensions, customers can see your ads with location information such as your address. And then they can get more information about your location by clicking on location extensions.
  • Make sure you’re capitalizing on Google ad products throughout the Google ecosystem. With Google keeping more searchers on Google and its properties, it behooves advertisers to capitalize on where that search activity is occurring.

Finally, it’s always a good idea to watch how Google develops its tools for maximizing the value of paid and organic content. Don’t be surprised if Google doubles down on the importance of personalizing content with first-party data.

Contact True Interactive

At True Interactive, we know how to help businesses navigate the complex waters of online advertising, including advertising on Google. 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.”

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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.

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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.

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Google Responds to Apple’s App Tracking Transparency

Google Responds to Apple’s App Tracking Transparency

Google

We recently blogged about a consumer privacy feature being built into iOS14.3, Apple’s latest operating system. As widely reported, under iOS14.3, users of iPhones will now need to agree to allow a business to collect information about them – known as an opt-in policy (in Apple’s words, app tracking transparency, or ATT). This imminent change has triggered a spat with Facebook. The world’s largest social network is upset because its advertisers will have a harder time tracking its users off Facebook and serve up personalized ads to them. And now Google has weighed in on iOS14.3.

Google’s Reaction

In a January 27 blog post, Christophe Combette, Google Group Product Manager, Google Ads, wrote:

Apple’s ATT changes will reduce visibility into key metrics that show how ads drive conversions (like app installs and sales) and will affect how advertisers value and bid on ad impressions. As such, app publishers may see a significant impact to their Google ad revenue on iOS after Apple’s ATT policies take effect.

He recommends that developers to upgrade to version 7.64 of the Google Mobile Ads SDK for new features like SKAdNetwork support.

He also encourages advertisers to monitor the performance and delivery of all iOS App campaigns — and, if necessary, make adjustments to budgets and bids to achieve their goals.

How Will Google Advertisers Be Affected?

Now, it’s helpful to consider his post in context of how Google makes ad revenue. Google makes most of its ad revenue from people searching on Google and being served up ads alongside search results. It is unlikely that advertisers will see a performance drop from search ads on Google.

But advertisers using the Google Display Network may see an impact on their ad performance. That’s because the Google Display Network encompasses a vast collection of  websites, including specific Google websites like Gmail, and YouTube,  that show ads. This network also includes mobile sites and apps. If iPhone users decide they don’t want apps on the Google Display Network tracking them, then advertisers using those networks may see declines in performance because they won’t be able to track user behavior and serve up more personalized ads.

What Advertisers Should Do

No one knows for sure when ATT takes effect – there’s a lot of speculation that it will happen in March 2021. In the meantime, we suggest that advertisers:

  • Prepare your app for iOS14.3. Google has published detailed steps here.
  • If you use Google Analytics, be aware that Google recommends advertisers upgrade to the latest version of Google Analytics for Firebase for new features like SKAdNetwork support.

If you work with an agency to manage your advertising on Google, ask them how they are preparing.

Contact True Interactive

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

2021 Advertising and Marketing Predictions from True Interactive

2021 Advertising and Marketing Predictions from True Interactive

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.

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