How Video Advertising Delivers Results

How Video Advertising Delivers Results

Video

The digital advertising industry is picking up steam, and one reason is the growth of video advertising, according to a new research report from PQ Media. Anyone who works with video advertising can attest to this growth. Video ads are delivering more benefits because:

  • The formats and placement channels are expanding. Look at how TikTok has exploded in popularity. It didn’t even exist five years ago.
  • In the age of TikTok and YouTube, consumers love video as a content format.

At True Interactive, we’re definitely seeing the results of video’s popularity. 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. 

Our ads consisted of continuous promotions with six-to-seven offers consisting of aggressive pricing and deep discounts across multiple products. We ran:

  • 10 different 15-second videos specific to a product (trimmed from a master 30-second video).
  • Four 30-second videos.

The ads also focused on mobile users in order to drive downloads of the client’s app.

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:

Year-over-year sales results

Meanwhile, the client’s search share increased noticeably for three consecutive months. Mobile and TV screens typically accounted for 65 percent-to-70-percent of video views/Impressions.

So, why did this campaign deliver results? A few reasons stand out:

  • We began with a large audience (women aged 25-54) with the purpose of hitting as many eyes as possible. That’s because the brand’s low levels of search volume told us that it lacked brand awareness more broadly. Targeting an audience would have been premature.
  • Incorporating mobile video to drive downloads of the client’s app was well timed with the popularity of in-app usage.


Mobile app usage

  • Our approach allowed us to keep CPMs down. The more targeted you are, the more expensive the ad becomes; your CPMs increase when you narrow your audience.

We recommend that businesses take a closer look at how you are using video advertising. How much are you investing into video ads? If you’re not deploying video ads, what’s holding you back? If it’s a lack of in-house creative and media expertise, then a partner can help you.

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.

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2021 Holiday Ads: Hope and Realism

2021 Holiday Ads: Hope and Realism

Advertising

Ready for some memorable holiday ads? In response to widely reported supply chain issues, some brands have teed up their holiday ads to come weeks ahead of traditional schedules. And as was the case last year, the campaigns are tasked with addressing the elephant that hasn’t left the room: Covid-19 and its lingering effects. If striking the right tone somewhere between hope and realism can be tricky, a few reliable themes — from connection to music, humor, and cheer — are helping brands thread that needle. Here are some examples:

Connection

We may live in divided times, but Etsy’s hopeful Give More Than a Gift campaign for 2021, which highlights unexpected connections, reminds us of our best selves. In one spot, a friendship springs up between two people from different walks of life. The tightly edited ad runs a mere 30 seconds, but it packs a wallop. The e-commerce company’s focus on unique, handmade items figures into the story, and the implicit message — that Etsy’s constellation of DIY sellers may help shoppers avoid the headache of larger retailers with supply chain issue delays — doesn’t hurt the brand, either.

Music and Surprise

The right music is key to a successful ad campaign, and brands have long been incorporating modern interpretations of classic hits in hopes of connecting with shoppers on a nostalgic level. In fact, according to Chelsea Gross, director analyst at research firm Gartner, nostalgia is particularly resonant this year as consumers potentially gather with loved ones after a year or more of pandemic-era separation.

For financial reasons, advertisers don’t always use the original song. It’s also worth noting that employing a cover can also add a unique spin, beyond the song’s original interpretation, to a nostalgic favorite. Consider the spot from Dutch e-tailer Bol.com, which is set to a cover of Cyndi Lauper’s “True Colors.” In the ad, a boy who originally asked for a doll turns the soccer ball he got instead into an imaginary friend. Cue all the expected cozy feelings — but Bol.com is mining a different theme here, and an unexpected twist at the end of the spot gives Lauper’s familiar song added resonance. (Spoiler alert: this kitten has claws!) By subverting expectations — of a familiar song, of a storyline that, at least initially, seems familiar — the brand grabs our attention.

For a brand like Amazon, deep pockets can mean the freedom to use a song in its original incarnation. This year, the e-commerce giant debuts “Hold On” from Adele’s new album 30; the song hits a home run on several levels, playing backdrop to a spot that doesn’t shy away from the lingering challenges people face from the pandemic. The storyline isn’t overtly festive: two women share a quiet connection over their love of birds. But the ad, which is aligned with the launch of Amazon’s Christmas gift shop, covers a lot of ground, addressing mental health, loneliness, and the power of connection in a subtle two-and-a-half minutes.

Humor

Like Amazon, Extra gum isn’t afraid to look at the curveballs life can throw, but it takes a different tack, using humor to lean into some inconvenient truths about the holidays. As Extra spins it, while it’s great to be gathering for the holidays in a way 2020 simply didn’t allow, some time-honored traditions — from passive-aggressive presents to long-winded relatives — remain as tricky as they ever were before the pandemic. The solution? “Chew it before you do it.” In other words, chewing a piece of Extra gum can give that extra moment of pause, and transform a potentially awkward moment into a time of grace and connection. And who can argue with that?

Cheer

Of course, holiday ads for time immemorial have succeeded by tugging on the heartstrings, and a few notable campaigns from 2021 take that approach and run with it. Consider the McDonald’s U.K. ad that introduces us to a little girl and her imaginary monster friend, who bond over the Christmas ritual of leaving out bags of McDonald’s carrots as treats for Santa’s reindeer. Time passes (a cover of Cyndi Lauper’s “Time After Time” plays in the background – apparently 2021 is Cyndi Lauper’s year), and we think the girl has outgrown her joyful friend. But — spoiler alert! — you might need to pull your hanky out. Some friendships are meant for the long haul.

Finally, consider Apple’s spot, which was filmed with an iPhone 13 Pro by the father-and-son team of Ivan and Jason Reitman. The three-minute short follows the efforts of Olive, a little girl determined to keep her snowman buddy alive all year ‘round. An unexpected finale doesn’t quite cue up as expected, but the overall vibe — and a dedication to the ones we’ve waited all year to be with — goes for the feels in a big way, and succeeds.

Contact True Interactive

Looking to navigate the nuances of a complex world and connect with audiences via digital? Contact us. We can help.

2021 Black Friday and Cyber Monday Trends

2021 Black Friday and Cyber Monday Trends

Retail

It was another year of uncertainty for Black Friday and Cyber Monday, which together are considered the official start of the holiday shopping season. The emergence of another COVID-19 variant, ongoing supply chain problems, and inflation all called into question what kind of experience shoppers and retailers would have this year. Now that the numbers are in, here are some takeaways:

  • Black Friday and Cyber Monday underperformed online. For the first time ever, Black Friday spending online dropped from the previous year, according to Adobe Analytics. Cyber Monday didn’t fare much better: Adobe said that online spending was essentially flat.
  • People returned to stores on Black Friday. Sales rose 29.8 percent on Black Friday compared to 2020, and sales in stores rose 42.9 percent, according to Mastercard SpendingPulse, which tracks sales activity online and in stores within the Mastercard payments network (combined with estimates for all other forms of payment, including cash). But foot traffic to stores did not return to pre-pandemic levels.
  • Amazon and Walmart were big winners. According to PYMNTS, nearly 71 percent of Black Friday shoppers made their online purchases at Amazon. Nearly 59 percent of consumers who shopped in-store visited Walmart. Overall, Walmart did quite well. Although Amazon got the lion’s share of online traffic, Walmart came in second place, capturing 41 percent of digital purchases.
  • Consumers got an early start on holiday shopping. Sixty-one percent of shoppers surveyed by the NRF said they had started their holiday shopping before Thanksgiving, up from 59 percent in 2020 and 51 percent in 2011. And 31 percent of U.S. shoppers started their holiday shopping in June.
  • Supply chain problems were evident. Digital out-of-stock messages are up 261 percent in November compared to November 2019, according to Adobe.

So, what should we take away from these numbers?

  • Advertisers who get an early start on the holiday season are winning. Each year, it seems that holiday sales and promotions happen earlier and earlier. And it’s true: advertisers such as Target and Walmart have been rolling out holiday promotions well in advance of November. According to Brian Field, senior director of global retail consulting, Sensormatic Solutions, “Retailers kicked off holiday deals early this year to spread traffic peaks out throughout the season, helping to avoid crowded stores on Black Friday, better track and plan inventory, and create an improved holiday shopping experience.” The data shows that consumers will respond to those deals. This was especially true in 2021, when consumers were worried about supply chain problems hurting product availability.
  • Advertising on retail networks is getting more important. Google remains the Number One go-to platform for online advertising – but advertisers cannot deny the growth of retail ad platforms such as Amazon Advertising and Walmart Connect. These platforms mine first-party shopping and search data on their platforms to offer businesses personalized ad units — even if you do not sell products on their sites. They are part of a growing industry of retailer-based advertising networks.
  • With shoppers returning to stores, advertisers should apply digital tools that make your offline inventory more visible and appealing. Consider options such as local inventory ads from Google to promote items available for purchase in store. In addition, retailers can use the local product inventory feed for local inventory ads and free local product listings.

Contact True Interactive

To maximize the value of your holiday shopping ad campaigns, contact True Interactive. We help our clients create effective online advertising all year-round, including the holiday season, and we understand the nuances of creating effective holiday ad campaigns.

Photo by Arturo Rey on Unsplash

Related Posts

Consumer Shopping Trends for the 2021 Holiday Season,” Clare O’Shea.

Why Big Retailers Are Ramping up Holiday Shopping Promotions – and What Advertisers Should Do,” Kurt Anagnostopoulos.

How Retailers Can Prepare for the 2021 Holiday Season,” Kurt Anagnostopoulos.

 

How Advertisers Should Respond to Supply Chain Uncertainty

How Advertisers Should Respond to Supply Chain Uncertainty

Advertising

A global supply chain crisis has created uncertainty for manufacturers and retailers alike. How are these problems changing the way business advertise for merchandise that may or may not be available when consumers shop?

The problem many advertisers – especially retailers – face right now is uncertainty of product availability. This is a different problem than scarcity. When a product is scarce, but retailers can predict how many units they will have on hand during the holiday season, they can set ad budgets with confidence. But when a business has no idea how many products it will stock, figuring out how to stoke demand with advertising becomes very tricky.

For example, as reported in Advertising Age, Jay Foreman, CEO of toy company Basic Fun, usually sends new products to influencers for promotion through product unboxing videos. But this year, he’s being more cautious because he cannot predict with certainty whether retailers will be able to carry his products.

“I don’t want to get the influencers going and the merchandise is not in store yet,” he said. “The consumer views that [influencer] unboxing and they’re like, ‘Cool, let’s buy it now,’ and if it’s not there, they’re not going to look at that unboxing video again.”

According to Ad Age, some advertisers are scaling back their ad spend. But many others are taking a more nuanced approached that we recommend:

  • Shift offline advertising to digital. Tactics such as paid search give advertisers more flexibility to calibrate their spend as supply-and-demand levels fluctuate. National Tree Company, which sells artificial trees and holiday décor, will focus its advertising on online search with some social media advertising as part of the mix. This approach makes sense especially as more product research and purchases occur online:

Research online

 

Purchase online

 

Because Amazon and Google dominate product research and purchase, look toAmazon Advertising and Google’s many ad units to capture holiday spend. By the way, Amazon Advertising offers ad units for businesses even if they don’t sell products on Amazon. Those ad units include Sponsored Display and Video Ads.

  • Increase advertising now. Many businesses are ramping up their advertising to encourage shoppers to buy products as soon as possible before retailers run out of products. We noted a “buy now while you can” surge in holiday promotions weeks ago. Those promotions are coming from big, well known retailers such as Target and Walmart. Be aware that when big retailers launch holiday promotions, they create general consumer awareness of the holiday shopping season. As a result, retailers should expect an uptick in searches for holiday sales and promotions. Now might be a good time to capitalize on that increased search activity to activate your own campaigns.
  • Keep brand advertising spending levels strong. As Ad Age noted, auto makers are promoting their 2022 models even though a global chip crisis has created a short-term shortage of available inventory at dealerships. Per Ad Age, “Auto brands continue to push out broader marketing campaigns touting new vehicle launches, including Toyota, which this week rolled out a new campaign for the 2022 Tundra pickup truck that it described as the largest U.S. ad campaign for a new vehicle launch in Toyota’s history.Ad spending cutbacks are more likely for locally-focused ads aimed at getting people to dealers for sales events.”

Whatever you do, don’t cut advertising because of uncertainty. Procter & Gamble’s approach during the Covid-19 pandemic offers a great lesson as to why. To say that the early days of the pandemic created uncertainty is a massive understatement. Businesses everywhere faced economic uncertainty and a global supply chain crisis (yes, the supply chain crisis was going on back then – it just was not getting the attention it is now). And who can forget the great toilet paper panic of 2020, when a spike in consumer demand resulted in retail shelves being stripped of this essential product?  Procter & Gamble was affected by this uncertainty – the company manufacturers toilet paper brands as well as many other household products that faced shortages. But Procter & Gamble kept advertising, and as a result, the company’s earnings in 2020 exceeded analysts’ projections.

As Vice Chairman and Chief Financial Officer Jon Moeller said, “We view this as a time to spend forward in terms of our advertising levels, not to spend back. First, there’s never been more media consumed than there is currently, as we all try to entertain ourselves and our families and survive. And two there’s a heightened need to spend on hygiene and health.”

Procter & Gamble was, and is, looking at the long game: before the pandemic, people were spending more time online, and the pandemic accelerated that behavioral shift. The company understands that although demand and supply for products will always fluctuate, the long-term shift in behavior is here to stay. So, Procter & Gamble is taking its ad spend to where shoppers are: online.

How about you?

Contact True Interactive

How can your brand benefit from digital advertising? Contact us. We can help. Read some of our case studies here.

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True Interactive Blog Posts for Additional Insight

Consumer Shopping Trends for the 2021 Holiday Season

Why Big Retailers Are Ramping up Holiday Shopping Promotions – and What Advertisers Should Do

Why Google Is Doubling Down on E-Commerce

How Retailers Can Prepare for the 2021 Holiday Season

Five Lessons Learned from the 2021 Ad Spending Surge

Why Procter & Gamble Is Succeeding (Hint: Advertising!)

Why Businesses Need to Step up Their Digital Advertising in 2021

Don’t Go Dark During the Coronavirus Crisis

How Brands Collaborate with TikTok Creators

How Brands Collaborate with TikTok Creators

TikTok

Businesses have been embracing TikTok as a place to build their brands with their own content. Many more are also finding ways to connect with TikTok Nation through relationships with popular TikTok stars. A recent case in point: TikTok influencer Bella Poarch has been tapped as an HP HyperX ambassador. Now brands are figuring out how to find influencers who can actually create content such as TikTok videos for them. Creating relationships with TikTok stars can help a brand become more culturally relevant in ways they might not be able to do acting on their own. Let’s take a closer look.

How Brands Are Finding Creators

Competitions and hashtag challenges have proven to be a reliable way for brands to connect with content makers—and essentially make creators part of their marketing team. “It’s no longer about trying to get that one creator with a giant following to mention your brand once,” notes Ali Fazal, VP of marketing at influencer management platform Grin. Rather, as Fazal points out, it’s a way to “integrate the creator into their overall marketing strategy.” The trick is to find influencers who genuinely, organically, love the brand. “Creator classes” is the term that’s been coined to describe the influencer teams that result—teams that are made up of individuals with specific interests and skill sets.

Consider the 11 influencers in the Major League Baseball’s inaugural creator class, which was curated with the help of input from die-hard MLB fans. As Kathryn Buckles, the director of brand and content marketing at MLB, notes about the group,  “One is an esports player, one is more comedic. We also have someone who focuses on youth baseball, and a food creator that likes to replicate ballpark dishes.” In short, different influencers are bringing unique skills and interests to bear. As part of the relationship, creators have access to MLB merchandise and can attend games and visit the MLB offices.

For Gatorade, its creator class, called the Social Squad, came together through “tryouts” in which TikTokers submitted videos for consideration. Nine influencers were chosen from a pool of 1,500, and this select group will be creating content for Gatorade’s TikTok through November. Again, the individuals—from Clifford Taylor IV, formerly a walk-on for the Florida Gators, to Caitlyn Schrepfer, a professional soccer freestyler—bring a variety of talents and perspectives to the table.

Diverse as creator classes can be, a common thread among the influencers should be passion for the brand: super fans are naturally going to tell an authentic story. When Chipotle used TikTok to put together a 15-person creator class, for example, they were won over by Georgian Wyatt Moss, whose video showed Moss and friends eating Chipotle—in all 50 states (since Chipotle doesn’t have a location in Hawaii, Moss took his Chipotle on the plane ride out and ate it once he arrived!). Members of Chipotle’s creator class are rewarded for their passion: they are eligible for up to 50 free entrees, and can pay a visit to the Chipotle test kitchen. They also receive priority consideration for future paid campaigns—crucial to budding creators hoping to make a living as influencers.

TikTok Creator Marketplace

These brand/influencer collaborations are definitely mutually beneficial, and TikTok is invested in helping to make them happen: TikTok Creator Marketplace, currently in beta in the United States, is the official TikTok platform where brands and creators can connect. Think of it as a sort of dating app—a way for brands and influencers to “meet cute,” or at least connect in a mutually beneficial fashion. Participating creators sign up in hopes of connecting with brands and paid sponsorship opportunities. Participating brands can view creator profiles, audience demographics, and engagement metrics, then reach out to potential brand influencers via push and in-app notifications if they sense a possible match. Creators have an opportunity to review campaign details and a contract in order to make an informed decision.

Lessons Learned

Does collaborating with an influencer on TikTok make sense for your brand? Some thoughts before you proceed:

  • Make sure you already have a strong TikTok following. Brand ambassadors won’t stick around if they don’t have an audience. Alternatively, partner with a personality that comes with their own built-in following.
  • Mix it up. As the above examples indicate, a strong creator class is made up of diverse voices. Putting together an influencer team that looks at your brand from different angles or celebrates different aspects of the experience casts a wider net—and can help you reach a new, wider audience.
  • Choose creators aligned with your brand. As noted above, passion for your company will translate into authentic messaging. Take time to understand who a creator is—and whether they are the right fit—before bringing them on board.

Contact True Interactive

Hoping to explore what TikTok and other social platforms have to offer? Contact us. We can help.

Consumer Shopping Trends for the 2021 Holiday Season

Consumer Shopping Trends for the 2021 Holiday Season

Amazon Google Social media

What does the holiday shopping season hold for businesses? We have already heard plenty about the potential problems that a global supply chain crisis will pose. They include product shipping delays, bare shelves, and higher prices. But how are consumers planning to research and buy as the shopping season kicks into full gear? A recently conducted webinar by ChannelAdvisor, “Navigating Online Consumer Behavior: 2021 E-Commerce Trends and Forecasts,” provided some answers.

ChannelAdvisor and Dynata surveyed 5,000 global consumers to learn how they are shopping this holiday season, including 1,000 U.S. consumers. ChannelAdvisor also relied on secondary research from sources such as eMarketer. Here are some major takeaways:

E-Commerce Is Exploding

eMarketer data

 

Chart showing people shopping more

E-commerce has accelerated by two-to-three years as a percentage of total retail sales. ChannelAdvisor says that the accelerated pace will continue for the next few years. That’s because Covid-19 forced more shoppers online. Nearly 60 percent of consumers are shopping online more frequently than before the pandemic, and 32 percent of U.S. consumers have more confidence shopping online than they did before the pandemic. A whopping 58 percent of consumers are spending more time on Amazon.

Key takeaway: businesses should expect the major ad platforms such as Amazon, Facebook, Google, Instagram, Snapchat, and TikTok to integrate advertising and commerce more aggressively. We recently saw Google make it easier for shoppers to find products through visual search and display. TikTok continues to launch new shopping features. It’s important that businesses capitalize on these opportunities to capture revenue in these moments when people are searching and browsing on digital.

Get Ready for a Strong Holiday Shopping Season

A chart showing people shopping online

Holiday shopping is increasing in 2021

More than half of U.S. consumers will shop online more than before the pandemic. By contrast, 38 percent of U.S. consumers said they’d shop more online when they were surveyed in May 2020. And 37 percent of U.S. consumers expect to do more holiday shopping online compared to 2020. Only 6 percent of shoppers will shop less.

This finding is not surprising. We saw that even during the hardest days of the pandemic when the world faced economic uncertainty, consumers were willing to open up their pocketbooks and spend. But as ChannelAdvisor noted, much of that spending happened online.

Key takeaway: it’s going to be a busy holiday shopping season, and savvy advertisers are already ramping up their holiday shopping advertising. According to Deloitte, consumers will spend 9 percent more this holiday season compared to 2020. A new survey from JLL says that consumers plan to spend an average of $870 per person on holiday expenses this year, a 25.4 percent increase from last year. Consumers are ready to shop. On the downside, if the global shipping crisis is as bad as economists say it’s going to be, those consumers may experience the disappointment of product shortages. So advertisers are encouraging people to shop sooner while inventory is in stock.

Amazon and Google Dominate Product Research and Purchase

 

Research online

Purchase online

Amazon is the Number One destination for people to research product: 41 percent use Amazon to research products. Google, though, is a strong second place finisher. Amazon has built strong trust because when people are checking reviews, prices, and product inventory, Amazon gives them one easy place to do all that. During the holiday shopping season, even more consumers will do research on Amazon, and  65 percent will purchase on Amazon.

Key takeaway: capitalizing on Amazon Advertising products is a must if you want your brand to be visible when shoppers are doing deep product research. But don’t shift your ad budget from Google if you’re already a Google Ads customer. A two-pronged approach works best.

Social Media Is More Important for Younger Audiences

 

chart showing Instagram usage

People buying on social

Social is the key research channel for younger audiences. 53 percent of 18-to-25 year olds have researched products on Instagram. 51 percent have discovered products they purchased on social media sites. Facebook remains a strong source of product research for 26-to-35 year olds. Meanwhile, 30 percent of 26-to-45 year olds will do the majority of their holiday purchasing on social sites.

Key takeaway: although social media sites lag far behind Amazon and Google for product research, they index high for Millennial and Gen Z shoppers. Given the popularity of Instagram as a shopping destination, it’s important that advertisers capitalize on Instagram ad products such as Instagram Shop to reach younger shoppers. Essentially, Instagram ad products make it possible for businesses to turn posts and stories into ads. Instagram also makes it possible to create ads across Instagram and Facebook, which sounds very efficient – but remember that what works on Instagram might not be as effective on Facebook because Facebook appeals to a slightly older audience.

For more insight into holiday shopping trends, read a recently published True Interactive post, “How Retailers Can Prepare for the Holiday Shopping Season.”

Contact True Interactive

To maximize the value of your holiday shopping ad campaigns, contact True Interactive. We help our clients create effective online advertising all year-round, including the holiday season, and we understand the nuances of creating effective holiday ad campaigns.

Photo by Jakob Owens on Unsplash

Why Google’s Ad Revenues Are Rising

Why Google’s Ad Revenues Are Rising

Google

A year ago, Google was feeling the pain of an economic downturn caused by the pandemic. My what a difference a year makes. On October 26, Google’s parent Alphabet reported that Google had beat earnings expectations across the board for the third quarter. Why is Google growing so well?

The News

Here are the financial highlights from Alphabet’s earnings announcement:

  • Google’s advertising revenue rose 43 percent to $53.13 billion, up from $37.1 billion the same time last year and slightly higher than the prior quarter. YouTube ads rose to $7.21 billion, up from $5.04 billion a year ago.
  • Retail was the largest contributor to year-over-year ad growth. Media and finance spending was also big.

Google, like its Big Tech rivals Amazon and Facebook, is benefitting from the surge in e-commerce that happened during the pandemic. With more consumers spending online, more businesses advertised online. The increase more than offset the slowdown Google suffered in 2020 when its travel and leisure clients scaled back advertising amid widespread travel restrictions. As we look closer at Google’s growth, we see two take-aways:

Privacy Is Google’s Ace in the Hole

Apple has enacted privacy controls that give users the choice of opting out of being tracked by apps on Apple iOS. As a result:

  • Google rival Facebook has experienced a slowdown in revenue in its most recent quarter as Facebook users opt out of having their behavior tracked, which hurts Facebook’s ability to serve up targeted ads for its customers.

Brian Wieser, GroupM’s global president of business intelligence, told The Wall Street Journal, “In the land of the blind, the one-eyed man is king. Whatever data they have [at Google] is better than what most others have.”

And Google’s data is going to look even better once Google successfully phases out third-party cookies on Chrome, which is the most popular browser in the world. Subject to regulatory oversight, Google will phase out cookies in 2023. This means that advertisers will no longer be able to rely on third-party cookies to track user behavior across the web in order to serve up personalized ads. Google will work with advertisers to create alternatives to third-party cookies through its Privacy Sandbox project.

Meanwhile, Google’s own powerful ad platforms, such as YouTube and Google Search, will be exempted from Google’s phasing out of cookies. That’s because those platforms use first-party data, or data collected from user behavior on those sites. They don’t rely on third-party cookies. When the dust settles, Google will emerge even stronger.

Google Is Making a Play for e-Commerce

We reported on our blog that Google is making some changes that will strengthen Google’s position as a challenger to Amazon’s e-commerce business. For instance, Google will make online searching and shopping more visually appealing by emulating the product display features you see on Amazon. For certain items such as apparel, Google will return search results with a page that resembles a visual store, not a list of links and text descriptions. Google will also soon introduce a new way to search visually, with the ability to ask questions about what you see. These changes will build on some moves Google has enacted already to become more influential in e-commerce. As The Wall Street Journal reported:

Much of the company’s growth has come from e-commerce advertisers eager to reach customers whose product searches begin online, as noted earlier. The company joined with Shopify Inc. this year to simplify search listings and ad purchases for 1.7 million merchants. The effort, which aimed to enliven its e-commerce segment, has helped turn retail ads into Google’s largest growth contributor.

Most product searches begin on Amazon, a scenario that is not likely to change soon. But Google still commands a large share of product-related searches. The explosive growth of e-ecommerce during the pandemic has suited the company well – and will continue to do so.

It’s clear that Google’s position among the Big Three online platforms (along with Amazon and Facebook) is as strong as ever. And Google is taking steps to write its own future through stronger consumer privacy measures.

As for what’s next? Look for Google to make more investments in artificial intelligence to fuel the development of more ad products. This commitment reflects a broader push into AI for Alphabet. As Alphabet CEO Sundar Pichai said in a call with investors, “In 2016, I laid out our vision to become an AI-first company. Five years later, this quarter’s results show how our investments in AI are building more helpful products for people and for our partners in local communities.”

Contact True Interactive

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