Why Google Is Bullish About Winning Its Fight with TikTok

Why Google Is Bullish About Winning Its Fight with TikTok

Google YouTube

Alphabet, Google’s parent, announced third-quarter earnings that fell short of expectations. Normally an earnings miss is cause for concern especially during recessionary times. But the company sounded upbeat. In fact, Alphabet believes it’s making the right investments for long-term growth, including one crucial YouTube feature.

The Numbers

First, let’s take a look at the numbers. For the third quarter, Alphabet reported:

  • Revenue: $69.09 billion vs. $70.58 billion expected, according to Refinitiv estimates.
  • Google advertising revenue: $54.48 billion, up 2.5 percent year over year but down 3 percent between the second and third quarters. (By contrast, Google’s ad revenue jumped 43.2 percent between the second and third quarters of 2021.)
  • YouTube advertising revenue: $7.07 billion vs $7.42 billion expected, according to StreetAccount estimates.

The decline in ad revenue for YouTube is most bothersome for Google, especially because YouTube rival TikTok continues to pick up steam. Advertisers are finding something better on TikTok: younger, highly engaged audiences who prefer TikTok’s short-form video content.

According to Statista, TikTok generated $4.0 billion in advertising revenue in 2021, a figure that is expected to double by 2024 and triple by 2026.Digiday reported just a few days ago that ad agencies are shifting content creation from Instagram and YouTube to TikTok. In April, Insider Intelligence predicted that TikTok’s ad revenue will grow 184% to nearly $6 billion in 2023 (that amount tops Twitter and Snap combined). Meanwhile, Insider Intelligence says that Influencer-marketing spend on TikTok will overtake YouTube in 2024.

YouTube Is Fighting Back

But Alphabet CEO Sundar Pichai says he is confident that Google will turn things around. One reason: the company has developed an answer to TikTok.

YouTube recently launched Shorts, which is YouTube’s version of short-form TikTok videos. Shorts is basically a TikTok copycat. Using the YouTube app, people can quickly and easily create short videos of up to 15 seconds. The videos are created on mobile devices and viewed, in portrait orientation, on mobile devices. And once you open one short, you essentially access the motherlode in that videos start playing one after the other. Just swipe vertically to get from one to the next.

According to YouTube, more than 1.5 billion people use Shorts – impressive numbers that actually surpass TikTok’s user base. As a result, more brands are creating campaigns on Shorts. It’s early days for Shorts and brands, but Shorts has two big advantages over TikTok:

  • Integration with YouTube, which has 2.6 billion active users. This is important because YouTube can promote Shorts to the built-in user base, and brands can connect Shorts content to their already established YouTube presence.
  • A creator monetization program that is more favorable than TikTok’s. YouTube recently announced Shorts will soon be eligible for monetization, and creators will keep 45 percent of the revenue generated from viewership. Having more savvy and popular creators on Shorts will generate more ad revenue for YouTube – and likely attract more brands.

Shorts is a fledgling operation. It only recently launched an ad program. But in an earnings call with investors, Pichai voiced optimism that the company’s investment into Shorts will pay off. He reiterated YouTube’s commitment to Shorts monetization, challenging TikTok directly, and attracting creators to the platform.

He has one other reason to feel upbeat. TikTok continues to grapple with a recurring and very ugly issue about its possible threat to national security related to accusations of privacy breaches — an issue that flared up in 2020 and is making headlines again. Who knows how that is going to turn out?

The best course of action for YouTube is the one that the company has chosen already: answering TikTok as it has done and capitalizing on its built-in user base. This will take time, and investors are impatient, especially during a down economy. But Alphabet has the cash to ride out the down times and continue to make YouTube more appealing to advertisers and creators.

Contact True Interactive

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Why Google Upped the Ante with Visual Search and Shopping

Why Google Upped the Ante with Visual Search and Shopping

Google

With the rise of Gen Z, Google has come to grips with the reality that people are using the Internet in a more visual way. We recently blogged about Google admitting publicly that Instagram and TikTok are challenging Google’s dominance of search with Gen Z.  Well, Google is responding. At the company’s recent Search On event, Google announced a slew of features to make search and shopping more immersive.

Search Is More Immersive

Google said that it’s making search more immersive and visual than ever. Earlier this year, Google introduced multisearch, which makes it possible for people to take a picture or use a screenshot and then add text to it (similar to the way you might naturally point at something and ask a question about it). At Search On, Google previewed “multisearch near me,” which enables people to snap a picture or take a screenshot of an item, then find it nearby instantly.

This is important because half of Google searches seek local information. According to Google, “This new way of searching will help you find and connect with local businesses, whether you’re looking to support your neighborhood shop, or just need something right now. ‘Multisearch near me’ will start rolling out in English in the U.S. later this fall.”

Shopping Is More Visual

Google is also making shopping a more visual experience. For instance:

  • Search with the word “shop.” In the United Sates, when people search using the word “shop” followed by the item they’re looking for, they’ll get access to a visual feed of products, tools, and inventory for that product. Technically this shoppable search experience has been in development already, but Google is expanding it to include more categories such as electronics and beauty.

search

  • Shop the Look: This tool will allow searchers to see options of where to buy the products you see in search. The “shop the look” feature show links to the exact product being searched for, as well complementary pieces and where to buy them.

Shop

  • Shop in 3D: Google began to roll our 3D visuals of home goods in search results, and the company is expanding 3D search to include more products such as shoes. To give merchants and advertisers better access to 3D visuals, Google is making available a new automated 360-degree spin feature that can be accessed by using a handful of static photos. The new technology will become available in the coming months.

3D shoe

These are the latest examples of how Google is changing for a more visual web. As we discussed, Google recently announced features such as Product feeds for a shoppable YouTube experience and Swipeable shopping ads in search.

What Advertisers Should Do

  • Capitalize on Google’s advertising tools that are designed to be more visually appealing. For instance, Google Discovery ads are image-rich ads designed for a more “laid back” search experience (more about that here). Google is clearly doubling down on the visual web, and advertisers should expect more visually appealing ad products as it attempts to become a stronger e-commerce player.
  • Optimize your online inventory for visual search. For instance, offer numerous images, choose high-resolution photos, optimize image titles and descriptions, add alternative text, optimize image sizes and file types, and include great captions.

Contact True Interactive

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

Tips for Winning the 2022 Holiday Shopping Season

Tips for Winning the 2022 Holiday Shopping Season

Retail

How is the 2022 holiday shopping season shaping up? We’re already getting some important clues. Here’s what we are learning:

1 It’s Already Here

According to Google, nearly one out of five consumers had started their holiday shopping, and more than a third (36 percent) already had ideas for gifts they were going to buy – back in May!

Retailers are ready for them. In August, Walmart unveiled its annual top toy list, nearly a month earlier than in 2021. And when Walmart acts, others follow. Retailers should expect Best Buy, Target, and Amazon to dial up the heat on Walmart by promoting their holiday deals sooner.

2 Consumers Are Cost Conscious

Amid high inflation, retailers expect consumers to be choosier and cost conscious. Walmart’s top toy included a new budget-friendly category — toys under $25. According to Walmart, Walmart the list includes “more Rollbacks on toys” to give consumers “deeper savings” on top of “everyday low prices.”

And Walmart is not alone. As reported in CNN, executives at stores such as Best Buy, Gap, and Ulta expect the holiday season to be loaded with discounts amid economic uncertainty:

In addition to toys, shoppers will likely find discounts on clothing, televisions, beauty products, sporting goods and other items.

Some chains have stockpiled too much inventory in recent months and will increase promotions to try to sell the glut of goods during the holiday stretch.

Other companies are also ramping up promotions to give incentives to inflation-strained shoppers who might otherwise be priced out of holiday gifts.

Best Buy CEO Corie Barry told CNN, “We’re seeing a customer who’s more value-oriented, who is definitely moving more towards some of those sale events. You’re going to see a holiday that starts to look a little bit more like what we saw pre-pandemic.”

What It All Means

  • A bigger Black Friday? Black Friday 2021 proved to be a return to pre-pandemic form, with sales increasing nearly 30 percent over 2020. Traditionally, consumers have been conditioned to expect doorbuster sales on this most hallowed of shopping days, but in recent years, retailers have reimagined the concept of Black Friday to feature Black Friday sales that happen long before the actual day. But in 2022, retailers will be eager to shed excess inventory to budget-conscious consumers, positioning Black Friday to reclaim its stature.
  • Retailers need to be nimbler with their ad campaigns. It’s not just that retailers need to plan earlier. They need to adapt to shifts in consumer behavior. Why? Because choosy consumers are going to be less brand loyal and more careful about looking for deals online, which could cause rapid shifts in demand at the store and product level – in your favor and sometimes in a competitor’s favor. We suggest capitalizing on tools such as Google’s demand forecasts on the Insights page. This predicts upcoming trends relevant to your business so that you can adjust your budget and bidding strategy to capture spikes in demand. Additionally, use Performance Planner to understand how these changes to your advertising spend will affect your predicted clicks, conversions and conversion values. In addition, Product-specific insights are now at your disposal at the account level in the Google Ads products tab. These insights let you spot underperforming offers, identify products with missing feed attributes and compare your bidding strategy with your top competitors’.

Contact True Interactive

True Interactive has deep experience helping clients plan and implement holiday shopping campaigns online. We can help you, too. We understand how to create nimble search campaigns and multi-channel ad outreach to target consumers with the right message at the right time. Contact us to learn more.

Image source: https://unsplash.com/photos/_3Q3tsJ01nc

How Apple Will Grow Its Advertising Business

How Apple Will Grow Its Advertising Business

Apple

Apple changed the advertising industry when the company launched an important privacy control in 2021, Application Tracking Transparency (ATT).  ATT asks iPhone users to decide whether apps can track them across other applications and websites. After the introduction of ATT, 62 percent of iPhone users opted out.

This has created a problem for advertisers and ad tech platforms such as Meta that rely on the ability to track user behavior across the web in order to serve up targeted ads to them. Without tracking user behavior via third-party cookies, their ads are less personalized. Meta said that ATT would cost the firm $10 billion in revenue in 2022. Apple, for its part, justified the new privacy control as taking a stand for consumer privacy.

Well, we now know Apple had something else in mind with ATT: taking a stand for Apple’s advertising business.

As Bloomberg reported recently, Apple is now earning $4 billion in revenue annually by selling ads on its devices, and the company plans to grow that amount aggressively. Granted, $4 billion is a far cry from the $209 billion that Google pulled down from advertising in 2021, but Apple’s newfound focus on ads sure casts its consumer privacy push in a different light.

How Does Apple Earn Ad Revenue?

Apple makes money selling ads on spaces that people see all the time on their iPhones and connected TVs as they navigate their screens to download apps, read the news, and watch content. Those include:

  • The App Store, as shown here:

Apple Ads

  • Apple’s own News and Stocks apps.

The additional ad revenue will come from:

  • The Today tab (the home page of the home page of the App Store, which includes content ranging from App of the Day to Game of the Day).
  • The You Might Also Like section of the App Store (this is found at the bottom of the App Store).
  • Third-party app download pages.

Does ATT Apply to Apple?

How will Apple sell targeted ads? By collecting first-party data, meaning the information that users of Apple devices cough up to Apple whenever they use the App Store, News and Stock apps, and so on. And, by the way, Apple will not make it easy for users to opt out of having their data tracked. You can disable the ad personalization feature, but you have to look for it under Apple Advertising in the settings app’s Privacy & Security menu. There is no pop-up menu asking you if you’d like to have tracking disabled as is the case with ATT, as shown below:privacy noticeBut shouldn’t ATT also apply to Apple? Not in Apple’s view. According to Bloomberg:

You may ask then, why don’t Apple apps have to ask permission to track users via a pop-up message? That’s what happens with other apps under ATT.

The reason, Apple says, is that the system “does not follow you across apps and websites owned by other companies.” That’s what ATT is designed to prevent. If a third-party app doesn’t track across outside apps and websites, it also doesn’t need to show a pop-up.

The “we are exempt from our own policy” rationale is how Google justifies its plans to kill third-party cookies on the Chrome browser. Google apps such as YouTube are exempt because technically they collect first-party data, not third-party data.

It’s easy to connect the dots and see what’s going on here: by attacking third-party cookie tracking, Apple bolsters its own ad program, which relies on first-party data collection.

Apple’s ad business is far too small to threaten the lead enjoyed by Amazon, Google, and Meta. But Apple has the muscle and money to grow its business quickly. ATT was a declaration of war.

What Advertisers Should Do

  • Understand the big picture. There is no going back: tech firms such as Apple and Google are undercutting the value of third-party cookies. Accept the reality that as third-party cookies crumble and technology companies enact privacy controls, your ads will be less targeted than they were. This does not mean you should stop advertising online. Online advertising remains the most efficient and cost-effective way to reach your audience. At the same time, first-party data is more valuable than ever to advertisers as a means to creating targeted ads. 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. Learn more about our services with Amazon Ads here and Walmart here. Apple and Google cannot undercut what these companies are doing.

True Interactive can help you navigate the ever changing world of consumer privacy and advertising.

Contact True Interactive

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

Lead image source: https://pixabay.com/photos/apple-inc-mac-apple-store-store-508812/

 

 

 

Why Google Delayed Its Cookie-Killing Effort to 2024

Why Google Delayed Its Cookie-Killing Effort to 2024

Google

To no one’s surprise, Google announced that the company is postponing its plans to kill third-party cookies on Google Chrome. The deadline, originally scheduled for 2022, will now be late 2024. If this news seems familiar to you, you are not alone. In 2021, Google announced a delay to 2023, but now 2023 no longer is feasible.

Why?

The problem for Google comes down to the reality that the company raked in more than $209 billion in advertising revenue in 2021.

Google Ad Revenues

As a result, Google needs to proceed very carefully in its phasing out of third-party cookies, which advertisers use to serve up targeted ads to people by tracking their browsing habits across the web. The fact that Google announced the delay after it disclosed subpar quarterly earnings shows just how wary Google is of rocking the boat. To protect its advertising business, Google must:

  • Come up with an alternative to third-party cookies that will satisfy advertisers. If Google fails to do that, Google will lose business to competitors such as Amazon Ads. Amazon Ads deliver targeted ads based on their own data beyond the reach of Google’s privacy controls. And Amazon Ads isn’t the only one, as I blogged recently.
  • Mollify regulators. Because Google is the largest online ad platform in the world, Google must convince regulators that its consumer privacy changes won’t give Google an unfair advantage. As we blogged in 2021, U.K. regulators have already slowed down Google’s efforts. Regulators are concerned that the demise of third-party cookies could give Google too much power because Google can rely on first-party data on sites such as YouTube (which Google owns) to support its ad business.

Google’s approach to satisfy advertisers consists of the Privacy Sandbox, where Google experiments with alternatives to third-party cookies that enable targeting with stricter privacy controls in place. Those alternatives include:

  • Fledge, for remarketing new ads.
  • Attribution reports, for telling advertisers which ads work without compromising consumer privacy.

But it is taking some time for Google to devise solutions as noted above, and not without some considerable trial and effort. For the record, here is Google’s rationale for the delay this time:

The most consistent feedback we’ve received is the need for more time to evaluate and test the new Privacy Sandbox technologies before deprecating third-party cookies in Chrome. This feedback aligns with our commitment to the [U.K. Competition and Markets Authority] to ensure that the Privacy Sandbox provides effective, privacy-preserving technologies and the industry has sufficient time to adopt these new solutions. This deliberate approach to transitioning from third-party cookies ensures that the web can continue to thrive, without relying on cross-site tracking identifiers or covert techniques like fingerprinting.

That rationale underlines both the impact of regulators and the difficulty in developing an answer to third-party cookies.

This latest delay has annoyed advertisers who had been taking measures to adapt to a cookie-less world and now find themselves delaying their plans. Others simply do not like the uncertainty of living in an extended transitional period while Apple enacts privacy control measures of its own. We suggest that for now, advertisers:

  • Accept the reality that as third-party cookies crumble and technology companies enact privacy controls, your ads will be less targeted than they were – at least until the industry adapts to alternative tools being developed. This does not mean you should stop advertising online. Online advertising remains the most efficient and cost-effective way to reach your audience.
  • Try alternatives beyond Google’s Privacy Sandbox. These include alternative IDs, contextual targeting, and seller-defined audiences.
  • Work with your advertising agency to understand what’s happening and how you may be affected. That’s exactly what our clients are doing with True Interactive. That’s what we’re here for.
  • Don’t abandon ship with ads that rely on web tracking. As you can see with Google’s announcement, things may not proceed the way Google plans.
  • Do invest in ways to leverage your own (first-party) customer data to create personalized ads. We can help you do that.
  • 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. Learn more about our services with Amazon Ads here and Walmart here.

One other important consideration: remember, Google is not the only company doing away with third-party cookie tracking. Apple did so with Safari in 2020, and Mozilla with Firefox. The writing is on the wall: it’s time to adapt to a world without third-party cookies. True Interactive can help you do that.

Contact True Interactive

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

Lead image source: https://unsplash.com/@laurenedvalson

For Further Reading

Where Amazon, Google, and Meta Are Headed

Where Amazon, Google, and Meta Are Headed

Amazon Google Meta

Technology earnings week is always watched closely. The rising and falling fortunes of Alphabet (Google), Amazon, Apple, Meta, and Microsoft have a direct impact on adjacent industries such as retail, advertising, and marketing. During a topsy turvy year such as 2022, the most recent quarterly earnings announcements of the Big Tech firms were followed especially closely. And here are some of the highlights from the Big Three of online advertising – Amazon, Google, and Meta — with implications for online advertising:

  • Amazon beat analysts’ estimates and enjoyed a strong quarter with the exception of its core retail business. The big news was the continued strong growth of Amazon Ads, which is Amazon’s advertising business that has quickly challenged Google and Meta for leadership of the online ad market. Ad revenue climbed 18% in the period for its most recent quarter. All told, Amazon Ads raked in $8.76 billion in the second quarter. Notably, in its earnings announcement, Amazon highlighted the recent launch of Amazon Marketing Stream, which “automatically delivers hourly Sponsored Products campaign metrics to advertisers or agencies through the Amazon Ads API.” This is a sign that Amazon is developing ad tech data and marketing services, which is a direct challenge to Google. What it means: the success of Amazon Ads dovetails with the ascendance of a more privacy-focused era. Apple in particular has initiated privacy controls that make it more difficult for advertisers to target consumers with ads that use third-party data. Amazon Ads is beyond the reach of such privacy controls because Amazon Ads is based on first-party data that Amazon collects from its customers. Amazon is not the only retail business building its own ad network. But it’s the leader. We expect more businesses will choose Amazon Ads as an advertising platform, and we have developed services accordingly.
  • Meta suffered its first-ever revenue drop for the quarter. The reasons are complicated. First off, TikTok is threatening the popularity of Facebook and Instagram (both owned by Meta), and Meta’s response to TikTok, Reels, doesn’t generate money as efficiently as Instagram Stories and the main news feed. Meta has also reeled from the impact of Apple’s privacy controls. What it means: Meta is in a time of transition – but never count out Meta. The company is investing heavily into the emerging metaverse, which is dragging its profits down but may boost Meta over the long run. And although Reels are a work in progress, progress is being made. As analysts at JMP wrote, “With Meta making progress with Reels while AI improves recommendations across content and advertising, we expect growth to rebound from current levels while the company is more disciplined in its cost structure.” And, overall, the company’s base of monthly active users continues to increase. The real threat to Meta in the near term: how well the company can rebound from the threat of Apple’s privacy controls. The long-term threat: how well Meta can attract and keep Gen Z users.
  • Google is sitting pretty. Alphabet’s search ad sales grew more than 13 percent in Q2 2022 to $40.7 billion, beating analysts’ expectations of $40.2 billion. Search, of course, is Google’s bread-and-butter business, and Google’s investments into its core search ad units are paying off as advertisers lean into performance marketing tactics amid economic uncertainty. But life isn’t all rosy at Google. At YouTube, ad sales rose 0nly 5 percent after jumping 84 percent in the same period a year ago. This reflects the impact of TikTok’s popularity. What it means: Google is going to flourish in 2022 and 2023 especially as advertisers weather economic uncertainty. Google is a safe bet, and Google continues to develop new ad units that enhance its performance marketing capabilities. Watch for Google to continue to push artificial intelligence-related services and tools that automate online advertising — while managing the increasingly thorny challenge of developing alternatives to third-party cookies, which the company had said it would do by 2022 and now is rescheduling for 2024.

What Advertisers Should Do

  • Keep a diversified ad portfolio across the Big Three: Amazon, Google, and Meta. If you are satisfied with the results you are seeing, don’t let Meta’s challenges scare you away. But do a gut check with your agency partner on how your ads are performing.
  • Work closely with your agency partners to understand the impact of privacy controls, especially from Apple.
  • If Gen Z is an important audience, take a closer look at TikTok. TikTok looms large as it challenges YouTube and Meta especially.

Contact True Interactive

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

TikTok and Instagram Challenge Google for Gen Z Searches

TikTok and Instagram Challenge Google for Gen Z Searches

Google Instagram TikTok

Google has a new challenger for product searches: TikTok and Instagram.

At a recent conference, a Google executive went on record as saying, “In our studies, something like almost 40% of young people, when they’re looking for a place for lunch, they don’t go to Google Maps or Search. They go to TikTok or Instagram.”

This was a surprisingly candid admission from a company whose YouTube app has been battling TikTok especially for leadership in the video space. (Insider Intelligence predicts TikTok’s advertising revenue will overtake YouTube by 2024.)

Although Google is easily the world’s most popular search engine, when it comes to searches for things to buy, the company is not quite as popular. For example, Amazon is the Number One website for people to do product searches: according to a 2018 Jumpshot report, from 2015 to 2018, Amazon overtook Google in this area, with Amazon growing to claim 54 percent of product searches while Google declined from 54 percent to 46 percent. According to Marketplace Pulse, a majority of Amazon searches—78 percent, in fact—are nonbranded. Instead of pinpointing a specific company like lululemon, say, many customers are making broad searches such as “yoga pants for women” and seeing what comes up.

And we all know how easy it is to buy something on Amazon once you are done searching, right?

Well, Google has been trying to make itself a stronger destination for shopping amid Amazon’s ascendance. For instance, Google recently launched new commerce-related features such as:

  • Swipeable shopping ads in search. A new ad display pairs organic shopping results with shopping ads, which makes online shopping more visual. The new swipeable shopping feed is available for apparel brands via Search or Performance Max campaigns. These will be clearly labeled as ads and will be eligible to appear in dedicated ad slots throughout the page.
  • Product feeds for a shoppable YouTube experience. Advertisers will soon have the ability to connect product feeds to campaigns in order to create shoppable video ads on YouTube Shorts. With YouTube Shorts, people can quickly and easily create short videos of up to 15 seconds, similar to how TikTok and Instagram Reels are used. Shoppable video ads on Shorts helps Google capitalize on social shopping.

The problem with Instagram and TikTok is that they appeal to the surging Gen Z population, who look especially to TikTok for recommendations for things to buy.  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 16.7 billion views on the app.

Even more worrisome for YouTube, TikTok and Instagram are both launching social shopping tools. For instance, TikTok recently launched the TikTokShop to make it easy for people to buy things right int the app. Instagram has launched a number of tools as part of Instagram Shopping, including:

  • Instagram Checkout, which facilitates simple, convenient, and secure purchases made directly from Instagram. 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.

In fact, 130 million people tap on an Instagram Shopping post and engage with Instagram Checkout every month.

All told, social commerce is exploding. eMarketer predicts that by 2023, 2021, U.S. retail social commerce sales will rise to $56.17 billion.

Google is also responding to these challenges. In addition to the features noted above, the company is making search more immersive and engaging by incorporating rich visual features and augmented reality. These should help the company make the search and shopping experience livelier.

Google is making progress. Morgan Stanley says that in November 2021, 57 percent of shoppers first went to Google platforms (including Search and YouTube) to research a new product, up from 54% in May 2021. In addition, the number of Amazon Prime subscribers turning to Google for initial searches increased to 56 percent from 51 percent in the same period.

What Businesses Should Do

  • Understand your audience. Are you reaching out to Gen Z? Boomers? Not all social commerce platforms are the same. As noted, TikTok and Instagram resonates with Gen Z. 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 has its own requirements for creating content. In addition, these popular sites demand a strong understanding of how to use visuals — anymore, it’s essential that brands know how to create powerful imagery.
  • Capitalize on Google’s advertising tools that are designed to be more visually appealing. For instance, Google recently rolled out Discovery ads, which are image-rich ads designed for a more “laid back” search experience (more about that here). Google is clearly doubling down on the visual web, and advertisers should expect more visually appealing ad products as it attempts to become a stronger e-commerce player.
  • Take a closer look at video advertising and organic content sharing, given Google’s interest in building out a more robust search experience on YouTube.

Meanwhile, TikTok and Instagram will most certainly dial up their own advertising products to attract companies that want to have their sponsored content appear alongside search results. Gear up for more ad choices!

Contact True Interactive

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