Why Snapchat Launched Dynamic Travel Ads

Why Snapchat Launched Dynamic Travel Ads

Snapchat

Just in time for a crazy 2022 travel season, Snapchat has introduced Dynamic Travel Ads. This ad unit was developed for airlines, hotels, online travel agencies, and tours. It’s the first time Snapchat has introduced a category of Dynamic Ads outside of eCommerce. The ad unit comes at a time when the travel is roaring back from a slowdown caused by the COVID-19 pandemic.

According to a Snapchat blog post, 76 percent of Snapchat users in the United States are making plans to or already have returned to their pre-pandemic behaviors, and Snapchatters are more likely to travel than users of other platforms.

What Are Dynamic Travel Ads?

Dynamic Travel Ads are a form of Dynamic Ads that Snapchat launched in 2019. Dynamic Ads make it possible for businesses on Snapchat to automatically create ads in real-time based on their own product catalogs. Dynamic Travel Ads, per se, allow a business to upload a travel-specific catalog or feed, and dynamically serve up relevant trip information to users, based on an individual user’s travel preferences and intent.

Dynamic Travel Ads offer the following features:

  • Customized Catalog setup that’s built to meet the needs of travel advertisers with different product attributes than traditional eCommerce advertisers.
  • Advanced audience targeting based on a Snapchatter’s intent to travel to specific destinations.
  • Locally-relevant campaign delivery to serve relevant trip details based on popularity, leveraging Snapchat’s visitation data.

Snapchat says that this ad unit delivers benefits such as:

  • Reach a broader audience of travelers. The ad unit should help businesses find prospective customers who are interested in traveling, and who may or may not have been to a company’s site or app before. With Snapchat’s machine learning and product ranking capabilities, businesses can serve relevant ads to users based on travel interests, preferences, and popularity of listings and destinations.
  • Drive bookings. Businesses can dynamically retarget users who have been to their site or app before with hotel properties, destinations, or flight routes that are most interesting to them. With locally-relevant retargeting, a business understand where its customers are looking to travel and serve them properties within the area to increase ROI.

The Gen Z and Millennial Connection

According to Snapchat, Millennials and Gen Z – which comprise the majority of Snapchat users — are leading the push toward Dynamic Travel Ads. Snapchatters are 37 percent more likely to book travel after seeing an advertisement. This avid travel audience actively uses location-based features such as:

  • Location Data: Snapchat captures Snapchatter visits to more than 30 million unique places (locations of interest) in the world.
  • Snap Map: the Snap Map reaches more than 200 million Snapchatters every month. More than 70 percent of Snapchatters use the Map because they like to see where their best friends are and what they are doing. Nearly six out of 10 say that the Snap Map helps them find their best friends when they are out and about.
  • Places: Snapchat has added more than 49 million places to the Snap Map, which features stories, hours, reviews, and delivery options for local businesses.

Travel Ad

And it’s no wonder that Gen Z and Millennials are such an important audience. This generation is fueling the rise of the entire travel industry. Travel is roaring back following a difficult downturn, and even though the industry is battling a personnel shortage and inflationary pressure, travelers are going full steam ahead with domestic and international adventures.

Success Stories

Snapchat shared examples of businesses benefitting from this ad unit. For instance, Booking.com used Dynamic Travel Ads in order to dynamically pull images directly from its product catalog and serve users ads with locally relevant listings based on products they had already viewed. This helped Booking.com unlock an incremental audience, resulting in a 20 percent lower cost per purchase than other U.S. advertisers. Etihad Airways was able to reduce its cost per flight search by 4x with Dynamic Travel Ads. Additionally, the business saw a 307 percent increase in return on ad spend and a 76 percent decrease in cost per purchases, compared to its non-dynamic campaigns.

What Businesses Should Do

At a minimum, travel brands should become more familiar with Snapchat and its audience before trying ad units.  Start with the creation of a Snapchat Public Profile (similar to a Facebook page) to understand how to interact with Snapchat’s audience. And understand how the Snapchat audience interacts with content. According to Snapchat, its user base has these characteristics in common:

  • 150 percent more likely than non-Snapchatters to prefer to communicate with pictures over words.
  • Four times more likely than non-Snapchatters to gravitate to immersive video and mobile games, including augmented reality experiences.

If your brand already rocks Instagram with visual content, chances are you are well positioned to succeed on Snapchat. If you are on Snapchat already, it’s worthwhile to try this new ad unit as part of your paid media strategy. True Interactive can help you.

Contact True Interactive

Is Snapchat a good partner for your brand’s reach? Contact us. We can advise. Learn more about our expertise with social media platforms here.

Why Google Brought Advertising to YouTube Shorts

Why Google Brought Advertising to YouTube Shorts

Google YouTube

During the past several weeks, the marketing world has been buzzing about streaming companies such as Disney+ and Netflix embracing advertising. And this conversation is more than justified. Both businesses offer advertisers a tremendous inventory for creating highly relevant advertising content to a global streaming audience that continues to grow based on industry research. As we mentioned recently in a blog post, although we don’t yet know what kinds of ad units Disney+ and Netflix will offer, they can certainly draw upon plenty of examples. One of them is YouTube.

YouTube Advertising

YouTube has offered ad units for years. And although the growth of YouTube’s ad revenues has not delivered on analysts’ expectations lately, the app remains an important part of Google’s growth. YouTube’s worldwide advertising revenues amounted to $6.9 billion in the first quarter of 2022, representing a 14 percent year-over-year increase. YouTube is certainly threatened by the rise of TikTok, but the app is still a juggernaut, and one of the reasons for that is YouTube’s ability to offer a diversified slate of ad units.

The most casual users of YouTube are familiar with some of YouTube’s popular ad units such as skippable video ads (which allow viewers to skip ads after 5 seconds). Over the years, YouTube has built on this foundation of short-form ad units with new products. For example, in 2019, YouTube unveiled a product called Bumper Machine, which makes it easier for businesses to create six-second video ads, or bumpers.

YouTube has also embraced connected TV with the Masthead ad format for TV. This allows brands to connect with consumers the instant users access the YouTube app on their televisions. The Masthead format is a response to the fact that while consumers aren’t watching as much linear TV, they are still using their televisions as a tool for experiencing streaming platforms like YouTube. In other words, YouTube understands viewing trends, and is staying nimble in its bid to connect with advertisers in an informed way.

At Google’s 2022 Marketing Live event, the company also rolled out more ad products. For example, Google is starting to offer ads in YouTube Shorts around the world after experimenting with ads in YouTube Shorts since 2021.

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. The videos are created on mobile devices and viewed, in portrait orientation, on mobile devices. And once a person opens one Short, they get access to tons more of them (again, think TikTok or Reels playing one after another.) According to Google, YouTube Shorts now averages over 30 billion daily views (four times as many as a year ago).

 YouTube Shorts

Shorts, much like TikTok, provides editing tools for people to create slick, high-concept content. And now brands can get in on the action because their Video action campaigns and App campaigns will automatically scale to YouTube Shorts.

 Google said that later in 2022:

  • Brands will also be able to connect their product feeds to their campaigns and to make their video ads on YouTube Shorts more shoppable.
  • Google is developing a long-term YouTube Shorts monetization solution for our creators, which Google will discuss soon.

This all sounds like a wise move on Google’s part. Google needs YouTube Shorts to succeed to thwart TikTok. And making Shorts ads shoppable capitalizes on the social commerce boom.

YouTube Shorts

Moreover, the rise of the creator economy has generated a new segment of influencer creators. As I blogged in January, the creator economy will become even more powerful. That’s because collaboration networks are proliferating. These networks give creators an all-in-one platform to create communities and build influence. In addition, gaming sites such as Roblox and Twitch offer creators opportunities to monetize their work with potential partnerships with brands, and crypto currency sites such as Rally.io make it possible for creators to mint their own currency. The big social networks such as Meta are responding by making themselves more attractive to creators. YouTube wants to monetize this activity and not lose out to its rivals.

What Advertisers Should Do

It’s important that advertisers say abreast of these developments, and if you work with an agency partner, collaborate with them closely on a way forward. (This is what our clients do with True Interactive.)

Not every video ad unit may be relevant to you. Assess the video ad units proliferating – whether from YouTube, TikTok, Instagram, and other apps – against your audience and business objectives. And think of them strategically. For instance, recently, one of our clients experienced a challenge: its share of branded search was dropping. The client, a photo curating and sharing company, naturally wanted to improve. So, we launched a video-based awareness campaign that spanned display, YouTube, Google Display Network, connected TV, Yahoo Online Video, Facebook, and Yahoo Display. Our focus: mobile and connected TV. We also ensured that YouTube ads could target connected TV screens.

As a result, our client enjoyed significant improvements in both awareness and also revenue – showing how powerful video can be as a direct-response format in addition to brand awareness. Read more about this case study here.

Contact True Interactive

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

What’s Next for Advertisers on Twitter with Elon Musk as an Owner?

What’s Next for Advertisers on Twitter with Elon Musk as an Owner?

Twitter

Will advertisers leave Twitter under Elon Musk’s ownership? That question is getting bandied about a lot these days. That’s because of widespread speculation that Musk will relax Twitter’s content moderation policies. This, in turn, could conceivably create brand safety issues by making controversial content more prevalent on the app, which has nearly 400 million monthly active users. For example, Advertising Age reported that “Marketers are worried that Musk will reopen the floodgates on uncivil behavior on the platform.” Ad agencies consulted by Ad Age said that their clients are increasingly asking about the risks of staying on Twitter. Here’s what I think will happen:

  • Some advertisers will flee Twitter and never return.
  • Some advertisers will put Twitter advertising on pause but eventually return to Twitter.
  • Most advertisers will do nothing.

The fact of the matter is this: advertisers have shown by their actions that they have a higher tolerance for social media controversy than news media reports might have you believe. We have seen time and again controversies erupt on platforms such as Facebook, Instagram, Twitter, and YouTube. Most recently, Facebook became the target of widespread public scorn after whistle blower Frances Haugen, an ex-Facebook employee, shared internal documents that showed Facebook executives knowingly allowed its algorithm to publish harmful and divisive content on users’ news feeds.

The resulting expose, published in The Wall Street Journal, also sparked speculation that advertisers would leave Facebook. Some did. But most did not. Why? Because the fact that a publisher and aggregator of news content (which is what Facebook does) knowingly shares divisive information was not exactly shocking news to advertisers. Mainstream news media have been attracting audiences by publishing divisive content for decades, long before the internet existed. And they’re doing so today. As a result, advertisers have a higher tolerance for conflict than Facebook’s critics did.

What really hurt Facebook was Apple. Facebook’s parent, Meta, disclosed recently that the company would suffer a $10 billion revenue hit in 2022 because of the impact of Apple’s iPhone privacy controls launched in 2021. Meta’s stock tanked dramatically so as a result. Why? Because privacy controls would likely make ad targeting more difficult on Facebook. It was ad targeting, not a Wall Street Journal expose about the company’s culture, governance, and content policies, that hurt Facebook.

The real concern among advertisers is not whether controversial content will appear on Twitter. The fact is that controversial content already does appear on Twitter. Advertisers are more concerned that their ads could appear alongside controversial content. This is more of an issue with how an app manages its algorithm. YouTube, for instance, landed in hot water recently because advertisers’ content was appearing alongside hate speech, but most advertisers understood then (and understand now) that it’s impossible to stamp out hate speech completely. Many more also understand that controversial content is not necessarily hate speech. These realities are part of being a brand on social media – and they always have been.

Twitter has been down this road before, too, such as when a major hack involving a crypto currency scam embarrassed the platform and cast a spotlight on how easy it is for bad actors to exploit Twitter to commit crimes. Or when the proliferation of trolls and bots threatened Twitter’s reputation. Advertisers were concerned, to be sure, but for the most part they reacted by pressuring Twitter to improve its algorithm as opposed to demanding wide-scale changes in how Twitter operates fundamentally.

My advice to advertisers is:

  • Keep advertising on Twitter if you are satisfied with your results so far.
  • Monitor brand safety closely, but that’s true whether you are advertising on Twitter or any other social media app.
  • Watch where your audience goes. There is a very real possibility that ongoing controversy at Twitter could cause a drop in users. The question is whether your audience will leave Twitter. It’s a question. It’s not a certainty. Work with your agency partner to keep tabs on the situation, but don’t make assumptions based on news headlines.

True Interactive monitors developments on social media all the time as part of being a well-informed partner to our clients. Keep watching this blog for updates.

Contact True Interactive

To maximize the value of your social media advertising, contact True Interactive. Our expertise in this area delivers measurable value to our clients.

Twitter image by Alexander Shatov on Unsplash

Elon Musk image by https://pixabay.com/illustrations/elon-musk-space-elon-spacex-tesla-6222396/

 

Twitter Goes 3D with Advertising — Should You?

Twitter Goes 3D with Advertising — Should You?

Twitter

Three-dimensional advertising can create an immersive encounter for users, and Twitter clearly understands this: the social networking service recently announced the launch of a new advertising unit, Product Explorer Ads, which displays content in a 3D format. No, special glasses are not required to view these ads! Product Explorer Ads display merchandise through a 3D-like experience within a promoted tweet.

The What

This is the first time Twitter has facilitated a way for products to be shown off in 3D, and it’s turning out to be an interactive experience: users can swipe and rotate an advertised item in order to see it from different angles, and click a “Shop Now” button to make a purchase at the brand’s website. Advertisers are already spiking an interest: New Balance is among the brands currently testing Product Explorer Ads.

 

For Twitter, the new format constitutes one more way to support advertisers’ outreach to consumers. As reported in Social Media Today, Twitter is looking to “boost usage and revenue significantly over the next two years,” and seems to be hoping 3D will help do so. It’s also an interesting learning curve: “As we kick off early experiments, we’ll aim to understand how the new formats resonate with consumers and drive results for advertisers,” Twitter said on its business page. “We’ll test, learn, and iterate based on performance and customer feedback.”

In Good Company

Twitter isn’t the only platform diving into 3D formats. Meta is also building up its 3D advertising capabilities. In a new partnership with 3D modeling provider VNTANA, Meta is exploring ways for brands to run 3D ads on Instagram and Facebook. The idea is that brands will be able to upload 3D models of their products to either platform and convert them into ads.

This embrace of 3D certainly makes sense. According to eMarketer, 3D and mobile augmented reality advertising revenues are on the rise; one ARtillery estimate hints at 134 percent growth over the next three years.

Our Advice to Brands

If your product lends itself to creating 3D ads, by all means now is the time to explore these types of formats.

But don’t treat 3D technology like a shiny new toy—or embrace it just because it’s new. Three-dimensional advertising is a promising format for sure, but remember first that your ad campaign needs to target the right customers with the right message at the right time—and on the right platform for your brand. If your customer base is not using Twitter, for example, no amount of cool 3D technology will have much impact, and advertising there may not make sense, period. Don’t embrace 3D for 3D’s sake; do so because it serves your brand and the story you are trying to tell.

Contact True Interactive

New technology is undeniably exciting. Wondering how to make sense of what’s out there, and what best supports your brand? Contact us. We can help.

Photo by Alexander Shatov on Unsplash

What Does the Redesigned Instagram Content Feed Mean to Brands?

What Does the Redesigned Instagram Content Feed Mean to Brands?

Instagram

Instagram is giving more power to the people. Meta, Instagram’s parent, has announced that the social networking service will now give users two new ways to view their feeds: “Following” and “Favorites” (the standard “Home” experience, based on by the Instagram algorithm, is still an option too). Let’s take a closer look at these alternatives and what the development means for brands.

Following vs. Favorites vs. Home

So, what are these options, exactly? Essentially, Instagram wants to give users more control over what they see. For context, let’s review the experience Instagram users are accustomed to getting: the Home experience. This is an algorithm-based feed by which Instagram presents content that Instagram thinks users will be most interested in, based on their viewing habits. Notably, the Home experience is not purely chronological—it’s grounded first and foremost in user interests.

Instagram’s hunch is that the Home experience will remain the preferred go-to for users, so they’ve made it the default. As an Instagram spokesperson explained to CNET, “people have a better experience on Instagram with a ranked feed, so we won’t be defaulting people into a chronological feed.”

But now, based on a March 23 announcement from Meta, users also have the choice of a chronological experience with the Following and Favorites options:

  • The Following option presents a steady feed of posts from all the people one follows.
  • Favorites gives users the ability to further curate what they see by allowing them to designate up to 50 accounts they want to view higher in their feeds.

Users can make changes to their Favorites list at any time (people are not notified when they are added or removed).

Both Following and Favorites show posts in chronological order, making it easy to catch up on recent posts.

How Might Brands Adapt?

According to Ad Age, the chronological feed (for both Following and Favorites) may prove advantageous to advertisers and facilitate more real-time marketing opportunities. Amber Gallihar Boyes, director analyst at research firm Gartner, notes, “On the brand and creator side, there is an excitement and optimism about [the new structure]. I’ve seen creators just really feeling beaten down by lack of reach on Instagram and this gives them some element of control because they can make sure they’re connecting with their most loyal fans and followers.”

Live situations already lend themselves to Instagram, but the chronological feed, by creating a sense of immediacy, could prove especially beneficial to marketers during events like the Oscars or the Super Bowl.

“If you play it right [as a brand] you can almost . . . give people the experience that ‘if you’re not there when it happens, you’re missing out,’” Shawn Francis, head of creative at social media marketing company We Are Social, explains. He adds that it behooves brands or creators to ask “what content can you put out that makes people say, ‘I have to follow this brand in real-time.’”

In other words? Brands can lean into that FOMO.

They can also lobby to be on the coveted Favorites list: some creators are even putting out tutorials to teach fans how to add to their Favorites feed, presumably with the hope that their brand name will place high on the list when it’s created.

But achieving Favorites status is no slam dunk. “With 50 spots, people will be selective,” Nicholas Stoeckle, executive director of strategy and innovation at advertising and production company PPK, points out.

Competitive as it is, the Favorites list will certainly give brands a clearer sense of who their most loyal fans are, based on whether the brand makes it into a given Favorites section. Brands and creators will also get the opportunity to experiment with different posting times, to see if there are “sweet spots” for them in the chronological feed.

Contact True Interactive

Social media platforms are constantly evolving to meet users’ needs, and Instagram’s recent announcement is just one example. Trying to stay abreast of —and to leverage — these changes? Contact us. We can help.

2022 Advertising and Marketing Predictions

2022 Advertising and Marketing Predictions

Advertising

Welcome to a new, adventurous year of advertising and marketing. The traditional tech giants are going to continue to fight each other for dominance – while TikTok will tap into the burgeoning creator economy to challenge them all for a slice of the advertising pie. Retailers everywhere are creating ad networks, but Amazon and Walmart have already established strong leadership early on. For the most part, businesses will be spending more – more on TikTok, more on Amazon, more on Google, and probably more on Apple’s fledgling ad business. But will they spend more on Meta? Read on for our insights into the year ahead.

Retailer Media Networks Proliferate – and Meta Loses Ground

One of the big stories of 2021 was the proliferation of media businesses operated by retailers such as Amazon, Macy’s, Target, and Walmart. In 2022, we’ll see more of them. Retailers are under great pressure to squeeze more margin out of their core businesses as the industry endures uncertainty. The most well established networks – Amazon and Walmart – are thriving because they tap into the data they collect about their customers (first-party data) to sell targeted advertising on their sites. In 2022, more retailers will use first-party data to help businesses create more targeted ads off-site, too, as an antidote to Apple’s privacy controls. In addition, non-retailers with large troves of first-party data, such as TikTok, will expand the same way.

I also believe Meta’s ongoing push into immersive reality will lose momentum. Meta has made an even bigger push into immersive reality (e.g., virtual reality and augmented reality) as part of its attempt to become the builder of the metaverse. Meta also intends for immersive reality to help the company maintain a dominant hold on social media and to squeeze upstarts such as Roblox out of the market. But the horse is already out of the barn: there are just too many players such as Roblox and Snapchat developing immersive reality applications for Meta to play copycat and use its size as an an advantage. And Meta has faced so much public blowback over its size and reach that squeezing out smaller players makes Meta more of a target for anti-trust regulation. Meta will lose ground, and gaming platforms such as Roblox will ascend in power.

— Tim Colucci, vice president, digital marketing

TikTok Dominates

TikTok is the world’s most visited site in the Internet in 2021, toppling Google, according to Cloudfare. TikTok will become the leader in paid social. Videos and fast-breaking cultural trends are becoming more prominent factors across all social media marketing, and TikTok has mastered both. Oh, and TikTok has another big trump card to play: the site is a magnet for Gen Z and Millennials, who together comprise about 42 percent of the U.S. population. As a recent New York Times profile noted, advertisers “are present like never before, their authentic-seeming advertisements dropped in between dances, confessionals, comedy routines and makeovers.” But TikTok is just beginning to monetize all that interest from advertisers. TikTok will follow the example set by Amazon Advertising and roll out more ad units that capitalize on the customer data the company is collecting. And look to TikTok to become a social commerce giant. If you thought 2021 was the year of TikTok, you ain’t seen nothing yet.

— Bella Schneider, digital marketing manager

The Creator Economy Gets Real

The creator economy refers to a class of businesses comprising millions of independent content creators and influencers. We are reading more about them partly because apps such as TikTok have given them more power and influence. The creator economy will become even more powerful. That’s because collaboration networks are proliferating. These networks give creators an all-in-one platform to create communities and build influence. In addition, gaming sites such as Roblox and Twitch offer creators opportunities to monetize their work with potential partnerships with brands, and crypto currency sites such as Rally.io make it possible for creators to mint their own currency. The big social networks such as Meta are responding by making themselves more attractive to creators. More businesses will tap into niche networks to partner with emerging creators who are lesser-known but possess tremendous street cred. Big-name partnerships with stars will still thrive, but the social media icons will need to make room for the new kids in town.

— Mark Smith, co-founder

Tech Titans Roar

We hear a lot about the big technology firms facing increased scrutiny from Congress and legislators around the world. But to me the more intriguing story is how the tech titans keep trying to outmuscle each other for advertising revenue, an example being Apple enacting privacy controls to hurt Facebook’s ad business. 2022 will ratchet up the fight:

  • Apple will start leveraging and monetizing the data they are collecting (and not allowing others to collect) in the form of some type of advertising platform. This is the culmination of Apple’s stricter privacy controls.
  • Google will remove more visibility and targeting options in the name of advances in machine learning and automation, thus protecting its core ad business by taking more control of it.
  • An increasing number of platforms will emerge that use first-party data to target and track and savvy advertisers will take advantage of this and diversify their advertising spend
  • Amazon will grow with even more ad units for Amazon Advertising and marketing offerings such as livestreamed commerce for businesses of all size, especially smaller ones. Google and Meta will lose market share.

Unfortunately, we can count on CPCs to rise across all platforms as they attract more businesses competing for ad inventory and keywords. It’s going to be a more expensive 2022, but also a more interesting one with more ad units proliferating.

— Kurt Anagnostopoulos, co-founder

Google Ads Become More Powerful

Given the evolution of keyword matching (now AI-powered to serve ads based on the meaning of a search query), and the simplification of the ad product offerings (as Google deprecating Expanded Text Ads next summer), we will see Google Ads become leaner but more powerful. Advertisers will be forced to rely more and more on Google’s algorithm to drive results – all this, at the expense of reduced control advertisers have over campaign settings (ad content, keyword matching, targeting choices, etc.). I believe the biggest changes will continue to happen on Google’s back end as it seeks to make the algorithm (automated bidding strategies used in ad campaigns) smarter. Thus, we will see increased focus on cookie-less conversion tracking and an expansion of first-party data collection capabilities in Google Ads (i.e., scaling up enhanced conversions).

— Héctor Ariza, digital marketing and analytics manager

Social Media Ad Dollars Get Redistributed

Lush Cosmetics recently said it is quitting Facebook, Instagram, Snapchat, and TikTok over concerns that those platforms have a negative impact on teens’ mental health. (The company will remain active on LinkedIn, Pinterest, Twitter, and YouTube.) Lush said it will happily lose $13 million in sales because of the digital detox. It remains to be seen whether Lush will reactivate the accounts it quit (Lush quit some social sites in 2019 before returning), and of course a big question is whether more businesses will take such a drastic approach. I don’t think we’ll see more businesses take the Lush approach – social media is just too important – but they will shift some of their ad dollars away from Facebook and Instagram. In the past, businesses have remained loyal to Facebook (now known as Meta) because the site is critical to their advertising and marketing strategies. But the whistleblowing activities of ex-Meta employee Frances Haugen have raised the stakes. She asserted that Meta has kept internal research secret for two years that suggests its Instagram app makes body image issues worse for teenage girls. Businesses will monitor what their customers, investors, and employees say about Meta especially in this era of purpose-driven branding. Some will shift their advertising to Snapchat and TikTok while Meta takes the heat for brand safety issues. But this shift may be temporary. Meta will probably mollify brands with some updates to its products to create more brand safety, as it is already doing with its news feed to address concerns over lack of user control over their news feeds. In addition, Meta faces the ongoing threat of regulatory oversight. More accountability will come to Meta in 2022.

— Beth Bauch, director, digital marketing

Contact True Interactive

To succeed in the ever-changing world of online advertising, contact True Interactive. Read about some of our client work here.

Image source: https://pixabay.com/photos/year-2022-track-new-year-calendar-6786741/

 

Why Facebook Launched Shoppable Groups

Why Facebook Launched Shoppable Groups

Facebook

We all need a little help from our friends, and Facebook is leaning into this reality with its Shops in Groups. The social networking behemoth has announced that it will be making it easier to shop for products on the app, using connections with friends and trusted creators to gain inspiration — and find just the right gift. This development underscores how important social media is becoming as the holiday shopping season ramps up.

Facebook Announces Shoppable Groups

Facebook describes its mandate this way: Facebook wants to introduce new tools to “make shopping and buying better on our apps.” And Shops in Groups allows users to support the communities they are interested in by buying products from them. One example? Shops in Groups makes it possible for members of OctoNation, an octopus fan group on Facebook, to directly purchase stickers, mugs, and apparel related to their passion for the eight-limbed mollusks.

TechCrunch describes the new feature as follows: admins of Facebook groups can essentially set up an online store on their associated Facebook Page, and the admins can determine where the money goes. In the case of OctoNation, mentioned above, profits go straight to OctoNation’s nonprofit. And as Yulie Kwon Kim, Meta’s VP of Product Management, notes, the shops can offer a revenue stream to group admins, who tend to be volunteers. She says, “The money goes to the group admin, and they can decide how they want to use it. This is a great way for people to sustain and keep the group going.”

The feature appears to have legs: Ad Age reports that after testing on a smaller number of groups, Facebook is opening up shoppability to another 100,000 groups. And it’s worth noting how flexible the setup can be: groups can link to sites such as a Facebook Shop, Shopify store, or BigCommerce store. Making Groups shoppable is important because, as Facebook points out, more than 1.8 billion people are using Facebook Groups every month.

Facebook Shoppable Groups in the Context of Social Shopping

Facebook is tapping into the rise of social shopping — also known as social commerce. As we’ve blogged, social shopping accelerated in popularity during the pandemic — and it’s showing no sign of slowing down. Social media has evolved along with this trend, working to meet the needs of users who are inspired by what they see online.

The numbers are telling. According to ChannelAdvisor, 57 percent of people aged 26 to 35 had researched a product on Facebook. People on Facebook are not only receptive to social shopping, they are actually doing it. And according to Retail Dive, a whopping 87 percent of Gen Z will be looking to social media for shopping inspiration.

chart showing Instagram usage

Facebook is determined not to miss out on this trend. Moreover, the tech giant wants to give people more reasons to stay engaged with Facebook and use its advertising products.

What Brands Should Do

What does this mean for your brand? We suggest:

  • If you sell products online, consider Facebook as more than an advertising platform. Learn more about features such as Shops in Groups.
  • Master Facebook advertising products that appeal to people on Facebook (or find a partner who can do the heavy lifting for you – we manage Facebook advertising for our clients). The platform is clearly committed to making itself more engaging and useful to users: consider how that investment might benefit your brand.
  • As ever, don’t put all your eggs in one basket. Balance your online presence between the major platforms that offer value in advertising — and shoppability.

Contact True Interactive

Eager to explore what Facebook — and other platforms — have to offer your brand? Contact us. We can help. Learn more our social media expertise here and our experience with shopping tools here.

Photo by John Schnobrich on Unsplash