How Effective Is TikTok as an Advertising Platform?

How Effective Is TikTok as an Advertising Platform?

TikTok

By Tim Colucci, Taylor Hart, and Bella Schneider 

TikTok is an advertising juggernaut. The app doubled its ad revenues in 2022 according to an industry estimate. Rivals such as YouTube were directly affected. And TikTok continues to roll out new capabilities that appeal to businesses, such as livestream commerce. This is all the more remarkable considering the fact that TikTok has been operating under the threat of being banned in the United States for the past few years.

But just how effective is TikTok as an ad platform? Our own experiences working with TikTok have seen mixed results.

Inconsistent Performance with Conversions

TikTok has both impressed and disappointed us when it comes to conversions such as app downloads, purchases, and leads. On the positive side, one of our clients running social ads increased ROI on TikTok by over 18% in Q3 compared to Q1.

In Q3 on TikTok, we launched conversion campaigns (as well as upper-funnel) for this client, which definitely affected the increase in ROI because in Q1 we only were running upper-funnel campaigns on TikTok.

But when we look at results for other clients – specifically for lead-generation-based mobile app campaigns — we have seen disappointing conversion numbers. For those clients, the cost per conversion on TikTok is higher than on other apps. Why? Probably because TikTok compels users to stay on the app and scroll continuously through a stream of content – as any TikTok user can attest. Taking the time to disengage from TikTok to download an app or to make a purchase is counterintuitive to how TikTok operates.

TikTok does offer tools for advertisers to drive conversions, such as an instant lead form, which creates a customized lead generation form with a call to action. As a result, the user need not leave the app to fill out a lead form. We have seen some success using the instant lead form, but nowhere near the conversion rates we’ve experienced on Facebook and Google. As a result, the cost per lead for TikTok is much higher than for Facebook and Google for lead-generation-based mobile app campaigns.

Awkward App Optimization Feature

Apps such as Facebook and TikTok offer features that make it possible for businesses to optimize multiple app campaigns based on different audiences, creative assets, and objectives. These are known as app event optimization (AEO). With AEO, a business can ensure that multiple campaigns are not competing with each other as they maximize their performance. We found that TikTok’s AEO feature is less effective than Facebook’s. For example, on Facebook, a business can optimize for both web and app campaigns together a lot more effectively than on TikTok. In at least one case, we found that multiple TikTok campaigns for the same brand were competing with each other, but fortunately our own team caught the issue early on and adapted our strategy.

Advice for Brands

  • Monitor your TikTok performance closely. As noted above, conversions can differ by type of campaign (in our case, social ads versus lead-generation-based mobile app campaigns). TikTok is still evolving as an ad platform, and TikTok ad accounts require more maintenance and proactive communication with the TikTok ad team. Keep on top of your performance and be ready to shift gears quickly as we have done.
  • Consider TikTok for brand awareness, but the jury is still out when it comes to conversions. Our campaigns have performed especially well when our objectives have been to achieve reach and brand lift. In our experience, TikTok CPMs are typically less expensive than CPMs for Facebook, Snap, or Pinterest.
  • Watch for new tools. TikTok will continue to roll out new tools to maximize its value, including more livestreaming features. Be alert for them and decide which ones are a possible fit for your brand – but treat them as experimental.
  • Consider the big picture. The conversation about TikTok as an ad platform could become moot if the app is banned in the United States owing to ongoing concerns about the app posing a security and privacy threat. Advertisers are staying true to TikTok as the app’s parent company ByteDance negotiates an agreement with the U.S. government. Could TikTok get sold? That’s a real possibility. Watch developments and be ready to adapt.

Contact True Interactive

At True Interactive, we work with our clients to maximize the value of all their online advertising, including social media spend. We strongly advocate for our clients as we work with apps such as TikTok. Contact us to learn how we can help you.

Why Mobile Is Soaring — and What That Means for Advertisers

Why Mobile Is Soaring — and What That Means for Advertisers

Mobile

Back in 2020, we blogged about the rise in mobile marketing. At that time, all signs pointed to the wisdom of advertisers embracing mobile. Two years down the line, we’re here to report that businesses worldwide appear to have gotten the memo: according to App Annie’s State of Mobile in 2022 report, the pandemic has changed the way we work and play—and projected mobile ad spend for the year ahead reflects that sea change.

Consumers Are Online

According to App Annie, consumers are spending more and more time online. 2021 broke records for time spent on mobile: as reported by prnewswire.com, people spent a jaw-dropping 4.8 hours a day on mobile in the top 10 mobile markets. Downloads reached 230 billion, a figure that represents a five percent leap year over year.

Users certainly had plenty of options from which to choose: publishers have released two million new apps and games for a cumulative total of twenty-one million! That’s a lot of apps, although certain trends are apparent. Apps like TikTok tend to dominate: the report reveals that seven of every 10 minutes spent online was devoted to some sort of social, photo, and/or video app. TikTok ranked the No. 1 most-downloaded app globally, followed by Instagram and Facebook.

Consumers Are Spending

Users aren’t just passively watching. They are spending. App Annie notes that time spent in shopping apps jumped 18 percent year over year, reaching 100 billion hours. Fast fashion, social shopping, and big box players were the winners here. According to Marketing Dive, “Consumer spending across app stores grew 19% in 2021, hitting $170 billion.”

Dating apps also flourished, in part because meeting people in person has gotten thornier thanks to Covid. According to Business Standard, people relied more on dating apps to navigate the social distancing imposed by the pandemic, a practice some users have said they’ll continue even after Covid is in our rearview mirror. The numbers certainly tell a compelling story: worldwide consumer spend on dating apps has barreled past $4.2 billion, a whopping 55 percent increase from 2019.

Mobile Ad Spend Is Growing

Brands are taking note and responding accordingly. Compared to 2020, advertisers are investing in mobile ads 23 percent more, an approach that can take many forms:

  • Consider Snickers, which partnered with Spotify to reach out to users listening to music genres outside of their comfort zone. The “You’re Not You When You’re Hungry” audio campaign used Spotify’s consumer data to target users branching out beyond their everyday listening. When a user streamed an atypical (for them) song, Snickers delivered an audio message—with a link to a branded “Hunger List.” The ads were customized to match the consumer’s favorite music genre.
  • The Pond’s beauty brand, on the other hand, navigated a saturated market to promote a new line of acne face wash in Indonesia. They leaned into augmented reality to do so, using the front-facing cameras on users’ phones to scan faces and determine which areas were prone to acne. The unique campaign was, in fact, the first AR face-detecting ad. That’s a feather in Pond’s cap.

According to App Annie, mobile app spend is only going up, with “mobile ad spend on track to hit $350 billion in 2022.”

What Does This Mean for Advertisers?

What can we learn from the stats, not to mention the brands that have already thrown their hat into the mobile ring? We recommend that you:

  • Consider the type of mobile advertising that makes sense for your brandEach type of advertising—from videos to banner ads to pop-ups—has its own platform, design, and strengths. What type of mobile advertising will help you accomplish your goal?
  • Which brings us to the next point: understand your goals. Do you want to boost sales? Promote brand awareness? Increase traffic to your site? Knowing your objectives will help you craft the most effective campaign.
  • You also want to identify, and understand, your target audience. Knowing where they like to spend time online, and what type of messaging they respond to, will help make your outreach meaningful. Gen Z, for example, wants to interact with their favorite brands via online games or sponsored events. Boomers, on the other hand, tend to spend a lot of time on Facebook. To reach your target audience, you have to speak their language.
  • Finally, don’t skimp on design. Use high-resolution and high-quality designs and graphics in your outreach. And the design should align with your message and your brand. This may seem like common sense, but it’s a big sticking point: users won’t linger if your advertising is amateurish or seems phoned in for the sake of having something—anything—online.

Contact True Interactive

The App Annie report underlines that mobile advertising is exploding. Not sure how to bring mobile into your advertising strategy? Contact us. We can help.

Photo by Rami Al-zayat on Unsplash

Why and How Instagram Is Leaning into Video

Why and How Instagram Is Leaning into Video

Instagram Social media

Instagram isn’t just about the photos anymore. As reported in The Verge, the social networking service is embracing entertainment and video in a bid to stay competitive with platforms like TikTok and YouTube. This isn’t the first time Instagram has gone head-to-head with TikTok: as we’ve blogged, Instagram launched Reels last August as a means of connecting with TikTok’s Gen Z audience. What do these new changes mean? Read on to learn more.

Not Just For Square . . . Photos

In a video posted on his Twitter and Instagram accounts, Instagram head Adam Mosseri explained that the platform no longer wants to be identified as a “square photo-sharing app,” rather as a hip general entertainment app driven by video — and algorithms. Mosseri says focus is on four key areas:

  • Creators, where Insta’s recognition of “the shift in power from institutions to individuals across industries” underlines Instagram’s desire to empower its creators.
  • Video, which is, as far as Mosseri is concerned, where it’s at. As he notes, “Video is driving an immense amount of growth online for all the major platforms right now.” His message: Instagram users have spoken. They want to be entertained. To stay relevant, Instagram is making video a tentpole of its offerings. Mosseri promises changes along the lines of users getting full-screen, recommended videos in their feeds, including videos from accounts a user may not already follow.
  • Shopping, to reflect the leap commerce has made from offline to online, a change accelerated by the pandemic.
  • Messaging, to honor the way close friends keep connected now — not by Feed and Stories, as has been the case in the past.

Reactions So Far

Reactions to Mosseri’s announcement have been mixed. Journalists are saying Instagram is responding to the rise of TikTok and YouTube, but as noted in Axios, warn that “[a]s social networks continue growing, they run the risk of overwhelming consumers and losing what made them special and distinct to begin with.”

And while Mosseri specifically names creators as a priority in his video, some creators, specifically photographers, are feeling marginalized and voting with their feet: Digital Photography Review reports that some photographers are defecting to Twitter in order to share their work in a space they feel is more dedicated to their art. Photographer Bryan Minear is a case in point. “In my eyes, Instagram stopped caring about artists and independent creators a long time ago,” he says. Minear, who switched to Twitter as his primary social media outlet in 2019, has found a vibrant photography community there.

Although Mosseri later tried to retract some of his wording — “We’re no longer a photo-sharing app or a square photo-sharing app” drew particular ire — his initial statement has aggravated photographers who feel an algorithm championing entertainment doesn’t put a premium on quality. “Instagram has done nothing but promote video-centric features at the expense of still photographers,” Minear says. “They’ve made it loud and clear that we aren’t welcome anymore.”

What Advertisers Should Do

What does all this mean for your brand? Is this “new” Instagram a good fit? We recommend that you:

  • Re-examine how you use video in your marketing and advertising. Clearly, video is getting bigger: 86 percent of businesses use video as a marketing tool, and 93 percent of marketers who use video say that it’s an important part of their marketing strategy. Instagram is showing where its allegiance lies. If video makes sense for you, Instagram might just be a viable advertising platform for you.
  • Consider the different ways influencers on Instagram are using both video and imagery as you find influencers to partner with. Who does a great job with video? Are they the right fit for your brand?

Contact True Interactive

In short, video is hot. Trying to figure out how to embracing video in your online advertising and marketing? Contact us. We can help.

Why Advertisers Should Never Bet Against Facebook

Why Advertisers Should Never Bet Against Facebook

Facebook

Facebook has done it again. On April 28, the company announced quarterly earnings that crushed Wall Street’s expectations, demonstrating a remarkable resilience. Facebook continues to ascend as a premier advertising platform, too, second only to Google in terms of online ad marketshare. Let’s take a closer look.

What Facebook Announced

Facebook’s quarterly results were impressive by any measure:

  • Earnings: $3.30 per share vs. $2.37 per share forecast.
  • Revenue: $26.17 billion vs. $23.67 billion expected.
  • Daily active users (DAUs): 1.88 billion vs. 1.89 billion forecast by FactSet.
  • Monthly active users (MAUs): 2.85 billion vs. 2.86 billion forecast by FactSet.
  • Average revenue per user (ARPU): $9.27 vs. $8.40 forecast by FactSet.

The increase in active users is key. Demonstrating that it can continue to grow its user base helps Facebook attract more advertisers.

Why Facebook Is Succeeding

Why is Facebook continuing to grow quarter after quarter even amid controversies and threats from legislators and competitors? Here are some reasons:

  • Advertisers remain loyal to Facebook. Facebook said its impressive revenue growth came from a 12 percent increase in the number of ads delivered – and a 30 percent year-over-year increase in average price per ad. Even as businesses were being rocked by the pandemic and faced an uncertain year, they were willing to pay more for ads on Facebook. And why not? Social media platforms such as Facebook enjoyed tremendous growth in 2020 as the pandemic drove more people online. Advertisers wisely went where their audience was.
  • Facebook is monetizing its user base beyond ad targeting. This is important. By its own admission, Facebook’s ability to deliver targeted ads is being threatened by Apple’s app tracking transparency privacy initiative in which users of iPhones will now need to agree to allow a business to collect information about them – known as an opt-in policy. 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. But Facebook has been steadily finding different ways to monetize its app (and Instagram’s) beyond ad targeting. For instance, in its earnings announcement, Facebook CEO Mark Zuckerberg discussed how the company continues to build social commerce features. And Facebook’s Marketplace service, where users can buy and sell goods, continues to grow. These features keep businesses and people engaged on Facebook, generate more ad revenue for Facebook, and give Facebook a stockpile of first-party search and purchase data to deliver more personalized experiences.

Going forward, Facebook will continue to monetize that user base in creative ways – an example being the launch of several audio features that will generate revenue for creators and inevitably create a more engaged user base – which generates more advertising revenue.

 What Advertisers Should Do about Facebook

  • Continue to capitalize on tools to help you connect with your audience on Facebook. For instance, as Mark Zuckerberg mentioned to investors on April 28, Facebook launched Shops in 2020 to help businesses more easily conduct online commerce, and there are now more than 1 million monthly active Shops and over 250 million monthly Shops visitors.
  • As always, balance your advertising among the major platforms that continue to deliver value, including Amazon Advertising, Facebook, Instagram, Google, and Microsoft Advertising.
  • Monitor expected privacy legislation and the impact of Apple’s ATT initiative, but don’t overreact. Facebook continues to show a remarkable aptitude for managing threats from competitors and legislators.

Whatever you do, don’t count out Facebook regardless of what you read and hear about the headwinds the company faces. Facebook is not going away. It’s the world’s largest social media network for a reason. Follow your audience and engage with them.

Contact True Interactive

At True Interactive, we help businesses capitalize on social media advertising to build their brands. We can help you, too. Contact us to learn more.

 

The Facebook Spat with Apple: Advertiser Q&A

The Facebook Spat with Apple: Advertiser Q&A

Facebook

If you operate a business on Facebook, you’ve probably received pop-up notices from Facebook warning you about ominous changes coming because of Apple’s latest operating system update. What’s exactly happening, and why? Our new advertiser Q&A takes a closer look.

Why Is Facebook Upset with Apple?

The conflict comes down to access to customer data.

Apple’s new operating system update, iOS14.3, contains new privacy tools that prevent apps from being able to track user activity across the internet. All applications need to ask iPhone users for permission to track their activity for the purposes of advertising. There an estimated one billion people around the world who own an iPhone.

Put another way: under iOS14.3, if a person has a business’s app on their iPhone, that person needs to agree to allow the business to collect information about them. iPhone users now have more control whether they actually want personalized ads generated as the result of an app following them around the internet.

Facebook believes that this opt-in approach could create a major problem for Facebook’s app. Most Americans have expressed discomfort with the way Facebook tracks their personal data. Since almost all of Facebook’s revenue comes from advertising, Facebook sees the new opt-in policy as a threat.

How Has Facebook Responded to iOS14.3?

Facebook has attacked the update publicly. For example, in December, Facebook argued on its own site that tougher privacy controls will hurt small businesses that rely on Facebook advertising to reach people. Dan Levy, Facebook’s vice president of Ads and Business Products, wrote that Apple is “hurting small businesses and publishers who are already struggling in a pandemic.” He elaborated:

These changes will directly affect [small businesses’] ability to use their advertising budgets efficiently and effectively. Our studies show, without personalized ads powered by their own data, small businesses could see a cut of over 60% of website sales from ads. We don’t anticipate the proposed iOS 14 changes to cause a full loss of personalization but rather a move in that direction over the longer term.

Facebook has also reached out to businesses, news media, and agencies (including us) to voice its position through content such as webinars.

What Is Apple’s Response to Facebook?

Apple continues to go about its business without a corporate response with one exception: the following tweet from CEO Tim Cook, which speaks for itself:

Tim Cook tweet

Otherwise, Apple has spoken with its actions by going forward with the iOS 14.3 update.

When Does the iOS14.3 Update Happen?

Although Apple made iOS 14.3 effective in December 2020, the company has not yet enforced the opt-in prompt. None of the changes discussed here is happening as of this writing. Apple has not announced when it will make these changes and enforce the prompt.

What Should Advertisers Do?

First off, we recommend monitoring the development closely. But don’t panic. No one knows how many iOS 14.3 users will opt out with their apps – Facebook or otherwise. To be sure, people opting out will compromise everything from conversion data to attribution to custom audience sizes. Facebook says it plans to roll out new features in events manager to help mitigate the impact of those changes. We are monitoring this situation for our clients. Stay tuned.

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.

Photo by Ian Taylor on Unsplash

How Nextdoor Helps Businesses Connect with their Communities

How Nextdoor Helps Businesses Connect with their Communities

Advertising

As people are spending more time close to home, Nextdoor, the social networking service for neighborhoods, is capturing more interest: from users, and also from brands. That’s because Nextdoor is more than a place for people to hang out and talk to one another about what’s going on in their neighborhood—it’s also a place to advertise. Nextdoor is especially appealing to businesses that have a local presence. According to a national consumer survey by Access Development, 93 percent of consumers typically travel less than 20 minutes to make their everyday purchases—a powerful incentive for local businesses to make themselves known. As the platform grows, there is serious talk of Nextdoor going public, too. Let’s take a closer look at how Nextdoor can play a role in connecting brands with their communities.

What Is Nextdoor?

Nextdoor, founded in 2008, describes itself as a platform “where communities come together to greet newcomers, exchange recommendations, and read the latest local news.” Users can report on local news, ask about local service-provider recommendations (according to Hootsuite, “67% of members share business recommendations with their neighbours”), and access local-community alerts during extreme weather. Think of it as a sort of virtual town hall.

Who hangs out on Nextdoor?

The app is currently used in 11 countries worldwide—countries including Germany, the United Kingdom, Australia, and the United States. In the U.S. alone, according to Nextdoor, one in four households use the platform. Sixty-two percent of users are female, and 74 percent are homeowners. But insights derived from Nextdoor go beyond clinical stats. In an article that appeared in The Atlantic, writer Ian Bogost notes how the platform can offer a nuanced peek into life in any given neighborhood. Bogost says, “Nextdoor’s virtual communities—which cover more than 180,000 U.S. neighborhoods, including more than 90 percent of those in the 25 largest [American] cities—are becoming representative of the country’s actual populations.” In short, the platform is a mirror a community holds up to itself: “this is who I am.” And that’s powerful intel for a brand looking to connect with the people who live nearby.

How Does a brand Engage with Nextdoor Users?

Once a company creates a business account on Nextdoor, it can use the platform to run Local Deal ads, which could look like anything from $2 off a sandwich to an online discount code. By connecting with the community on the platform, brands can also get a sense of how they are perceived by locals. As Hootsuite details here, a participating business should track metrics, anything from how many recommendations it’s earning to the number of times users clicked on its Local Deals to see more information.

Companies can also elevate awareness through participation in initiatives like the annual Nextdoor Favorites Competition (according to Nextdoor, winners of this competition benefit by earning up to 30 times the recommendations on their business page as compared to the average).

Finally, sponsored posts on Nextdoor allow brands—usually large regional advertisers—to reach out in myriad ways, from videos, to carousels showcasing products and services, to “click to call” functions allowing users to call a brand directly from Nextdoor’s in-app newsfeed.

What Makes a Successful Sponsored Post?

Like any advertising, sponsored posts require an understanding of the audience and the medium. Nextdoor recommends that sponsored posts be:

  • Content might offer tips or solutions. Brands might also include a deal to inspire consumer interest—and action.
  • Tone can be everything! A neighborly tone paired with appealing imagery encourages engagement.
  • A post that references local landmarks or a specific neighborhood invites recognition and resonance.

Contact True Interactive

Does Nextdoor’s friendly outreach look interesting? Wondering what next steps you can take to connect your brand with local consumers? Call us. We can help.