Clubhouse: An Exclusive New App Powered by Audio Chat

Clubhouse: An Exclusive New App Powered by Audio Chat

Mobile Social media

Oprah Winfrey is a fan. So is Drake. But the new social media app Clubhouse, developed by Paul Davison and Rohan Seth, is not just for celebrities. Why does Clubhouse matter to brands invested in digital? Read on to learn more.

What Is Clubhouse?

Clubhouse, an audio app that facilitates live conversation, is self-described as “a new type of social product based on voice [that] allows people everywhere to talk, tell stories, develop ideas, deepen friendships, and meet interesting new people around the world.” Conversations are not recorded or saved; when a Clubhouse cyber “room” ends, the conversation is done and gone. Participants can opt to just listen in, or they can spontaneously host their own rooms. And the topics under discussion are eclectic, ranging from talks about music to chats about film, beauty, culture, tech, and more.

Clubhouse is distinguished by the fact that it is an audio-only app. There is no feature for private messaging, and there are no written comments. It’s a conversation that just happens to take place online.

What Is the Clubhouse Experience Like?

As Michael Stelzner describes in Social Media Examiner, when you enter a room you hear the conversation going on. Participants can “raise their hand” (using the raised hand emoji) to participate, and might subsequently be invited “on stage” to join the discussion. Those who contribute to the conversation may even become moderators, which allows them to call others up on stage.

Some users find Clubhouse to be like a podcast: something they can listen to while doing other things. Some liken it to a panel discussion. The rooms cover a wide range of topics, something like AOL chat rooms from back in the day. Depending on your interests, you will find rooms devoted to, say, investment strategies for Bitcoin or daily habits for high performers, film talk, writing sessions, mindfulness tips, and much more.

Like any interactive experience, certain protocols are observed and expected. The understanding is that participants will mute themselves until they are called upon, or until they have something germane to add to the dialog. Moderators control the conversation, and rooms can run for hours.

Who’s in the Club?

The app brings a wide range of individuals—and interests—to the table. Celebs like Kevin Hart, Oprah, and Drake are already on board, drawn by the relative privacy the app affords. The app is currently invite-only; each participant is granted limited invites to extend, though the more active a participant is on the platform, the more invites they are able to share. Stelzner recommends downloading the app and setting up your account, then . . . waiting patiently. As he notes, “Someone who knows you might be notified in-app automatically and grant you access.”

Why Clubhouse Matters

Stelzner has asked other Clubhouse members to highlight reasons the app keeps drawing them back (he notes that “[n]early everyone I interviewed was a creator, marketer, or business owner”). Among the responses:

  • It’s viral. When someone you follow goes onstage, the app sends you a notification. You can click on the notification and immediately join the room as a passive listener.
  • You don’t have to be ready for your glam shot. There’s no camera; it’s just your avatar and your voice. So you can join the conversation with that shaggy Covid hair, or even while you are running errands.
  • It helps build business connections. Think the conversations that start at business conferences; this is the same thing, but online.
  • It’s a place to test ideas. Got an idea for a podcast? Clubhouse is a forum to throw stuff at the wall and see what sticks.

What We Recommend

Clubhouse, currently in beta, is only available to iPhone users; the invite-only protocol also limits availability. That said, according to wfmynews2.com, “Clubhouse claims it will eventually open up for everyone, but is attempting to ensure it takes the proper steps in doing so. They also want to make sure they can incorporate features that will be able to handle large chat rooms.”

In the meantime, the app’s very existence is a reminder of the myriad ways brands can plug into culture, understand the trends, and stay connected, even as the pandemic continues to minimize in-person contact. Clubhouse demonstrates yet another way to engage—and the importance of staying current and thinking outside the box—not just during Covid, but beyond.

What can be learned here? We suggest that you:

  • Stay abreast of the opportunities apps offer to connect with a new, diverse audience.
  • Don’t forget the power of audio in digital.
  • Understand the power of crowdsourcing new ideas or feedback on your brand.
  • Get involved. Download the app and request membership individually. Then start exploring the app in your role as your company’s brand ambassador. Network with experts in other industries. Never underestimate the value of learning from diverse startups, CEOs, tech giants—whether on an app like Clubhouse, or in other venues.

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

Why Facebook Acquired Kustomer

Why Facebook Acquired Kustomer

Facebook

Facebook continues to turn itself into an advertising and commerce destination. On November 30, Facebook announced the acquisition of Kustomer, a customer relationship management platform that specializes in conversational commerce, or forms of commerce derived from chat, messaging, and other interactive channels. The acquisition is clearly intended to beef up Facebook’s messaging and chat features as revenue generators.

We’ve been blogging about Facebook’s growing role as an advertising powerhouse for quite some time. Facebook is now the second-largest online advertising platform behind Google, according to eMarketer. Despite some occasionally bad publicity (and ad boycotts) Facebook’s ad revenue just keeps climbing in 2020, as I discussed on our blog in August.

Meanwhile, Facebook has been steadily building out messaging services as ways for brands to build and manage customer relationships. Businesses regularly use Facebook Messenger to engage with customers (as Spotify does) and manage transactions (as Paypal does). Developing Messenger as a form of conversational commerce is important to Mark Zuckerberg and COO Sheryl Sandberg. As Sandberg told investors in 2019,

Messaging is one of the fastest growing areas for online communication–especially between businesses and people. We’ve seen businesses use Messenger to reach customers, generate new leads and even sell cars. For example, French auto manufacturer Renault used a combination of Instagram Stories and Click-to Messenger ads to drive sales of a limited-edition vehicle, the Captur Tokyo. Facebook was their only advertising channel, and over the span of 30 days, they sold 100 cars—20 directly through Messenger. This quarter we added a Click-to-Messenger feature in Stories so businesses can grab someone’s attention in Stories and then continue the conversation.

In fact, Kustomer already helps businesses manage apps such as Messenger and WhatsApp effectively. It’s the software that makes it possible for business to aggregate and respond to customer inquiries via Facebook Messenger. Kustomer must be doing its job well. By purchasing the company, Facebook will provide capital and resources to scale Kustomer’s platform across Facebook’s global business. As Bloomberg tech reporter Kurt Wagner wrote on LinkedIn:

Facebook has a vision to turn its messaging services into de facto websites for businesses. In Facebook’s perfect world, a business could post its product catalogue, process payments, and handle customer service requests — all within WhatsApp. Buying Kustomer should help Facebook with that third part.

Indeed, in announcing the acquisition, Facebook said more than 175 million people contact businesses via WhatsApp. By acquiring Kustomer, Facebook will certainly become even more appealing to advertisers. Why? Because Facebook will be able to own both awareness building (via advertising) and customer conversion (via conversational commerce). As CNBC noted,

By bringing Kustomer into the fold, Facebook will be providing small businesses that use its service to advertise and sell goods more features to close sales through the social network’s services. This should seemingly lead these businesses to spend more on Facebook advertisements. That’s key for the company, which makes nearly 99% of its revenue from advertising.

What Businesses Should Do

  • Take a closer look at Facebook’s conversational commerce features such as Messenger and WhatsApp. Messenger Ads can spark interest, for example, and the Messenger the app can be a brilliant customer service tool. And combine Messenger with Stories for an engaging and ultimately personal customer experience.
  • Watch how competitors such as Amazon Advertising and Google respond. Google especially has a huge opportunity to help businesses build out their Google My Business listings with conversational commerce tools such as chat.

Contact True Interactive

How can your brand benefit from digital advertising? Contact us. We can help.

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

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

Advertising

Procter & Gamble has exploded analyst predictions for the company’s just-concluded fiscal first quarter. Organic sales are up to $19.3 billion, a jump of nine percent; net earnings have risen 19 percent; and there’s no indication that, as the pandemic grinds on, people are trading down to cheaper products. Why is P&G succeeding? It’s not just because it’s selling the right products at the right time. Read on to learn more about how:

P&G Is Prepared for the Moment

According to statista.com, P&G ranked as one of the Top 5 advertisers in 2019 based on the company’s ad spend. This is important to recognize because, even before COVID-19 was a glimmer on the horizon, the company was keeping in the forefront of consumer’s minds. P&G’s strategy was sound, predicated on the fact that during flu season, people naturally want to stock up on cleaning products. And although the company had no idea a pandemic would soon eclipse the flu in severity, its strategy and preparation mentality, rooted in strong advertising, served P&G well. When COVID-19 hit and consumers rushed to purchase cleaning products, P&G product name awareness was already high.

P&G Never Wavers from Creativity

The company’s advertising isn’t just timely, it’s creative. P&G consistently rolls out innovative, culturally relevant campaigns with digital at the center. For example:

  • During a year when the pandemic has left many older Americans feeling isolated, P&G’s Ivory brand launched an Acts of Gentle Kindness initiative to support and uplift seniors through distribution of “Ivory gentle care packs.” The packs, which included an assortment of Ivory products, cozy accessories like socks, and puzzles/brain games, celebrated World Kindness Day by focusing “on spreading positivity.” For the initiative, Ivory partnered with TV personality Catherine (Giudici) Lowe and Cavanaugh Bell, the seven-year-old Chief Positivity Creator at nonprofit organization Cool & Dope. Both encouraged families to get involved and create care packs for their own communities; the resulting stories could be shared on Instagram, Facebook, or Pinterest with the hashtag #IvoryKindness.

Woman and Child

  • P&G’s Skinclusive Summer Line by Venus celebrated the many skins we’re in by partnering with the popular Animal Crossing video game series. During a summer when going to the beach wasn’t necessarily a slam dunk due to COVID-19, Animal Crossing became a way to hit the beach virtually. And the game, which is especially popular among women aged 19-24, took self-expression to a new level: Gillette Venus partnered with digital designer Nicole Cuddihy to co-create new “skin-clusive” avatar designs. The game, which originally offered just a few representative skin types for its avatars, now gives players a choice of 250+ designs encompassing 19 different skin types and eight in-game skin tones. Notably, common skin features such as acne, cellulite, vitiligo, and tattoos are represented. Cuddihy notes, “While momentum for diversity in design is building, there are many areas where progress feels slow. The fact that I could add scars and wrinkles to warriors or outlaws, but not characters in less combat-driven games felt discouraging. With these designs, I hope that all women in Animal Crossing can find comfort and representation in this carefully developed collection. I drew inspiration from those in my own life to ensure the designs I was creating accurately represented their skin stories in a way that feels real, celebratory and beautiful.”

Animal Crossing

P&G Is Preparing for the Future

Per Ad Age, P&G does not seem inclined to tighten the purse strings when it comes to marketing: marketing spending for P&G grew at least $100 million last quarter. 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.”

The message is clear: P&G isn’t afraid to invest in advertising. And as we recently blogged, it’s important that all businesses keep their eyes on the ball by maintaining brand awareness with advertising: now, and going forward.

Contact True Interactive

How can your brand benefit from digital advertising? Contact us. We can help.

Why Businesses Need to Step up Their Digital Advertising in 2021

Why Businesses Need to Step up Their Digital Advertising in 2021

Advertising

When COVID-19 first took hold in 2020 and the world entered a time of seismic change and uncertainty, we urged businesses to stay in the ring with a strong digital presence. We wrote, “You don’t want to be caught flat-footed when consumers shift their behaviors again as the current disruption subsides. And subside it will; not knowing when is different from not knowing if.”

As we look to the new year ahead, this truth resonates more strongly than ever. Here’s what you should know about why digital advertising remains important, how digital presence relates to consumer—not to mention competitor—behavior, and what you can do going forward:

Consumer Behavior Has Shifted Online — Have You?

IBM’s U.S. Retail Index indicates that the pandemic has deeply informed the way people shop: the shift from visiting brick-and-mortar stores to shopping online has in fact been accelerated by approximately five years. The types of goods consumers deem essential has come into sharper focus, too. Clothing shopping, for example, has dipped in an era when more people are attending school and working their jobs online. By contrast, sales in categories such as groceries, alcohol, and home improvement materials have all accelerated.

The question to ask yourself: when people go online to shop, will your brand be present with targeted online advertising, such as paid search, that is relevant to what consumers are looking to buy?

Your Competitors Are Connecting with Consumers Online — Are You?

Ad revenues for the Big Three—Amazon, Facebook, and Google—can also shed some light on what a successful path forward can look like for brands. As reported in The Wall Street Journal, the Big Three are enjoying a surge of online revenue: Amazon and Google have reported strong quarterly sales, and Facebook has also enjoyed record revenue. All three had a great third quarter, evidence that businesses continue to connect with people, online, on multiple levels, from retail to social media to digital advertising. Even the StopHateFor Profit ad boycott did not seem to take a lasting bite out of Facebook’s advertising revenue, which was up 22 percent in the third quarter as compared to a year ago. (It’s worth noting that changes in consumer habits have manifested themselves not just in terms of venue—e.g., the move online—but timing. As Amazon Chief Executive Jeff Bezos notes, “We’re seeing more customers than ever shopping early for their holiday gifts.”)

Social media ad spend overall is also on the rise. In the third quarter, global social media ad spend increased 56.4 percent. According to The Drum, that’s almost double the average spend recorded during the COVID-19-related spending nadir of late March.

In short, brands that understand where, and when, to connect with consumers will benefit. If you are ignoring trends in online advertising, you are probably falling behind competitors who are speaking to these tendencies. Are you taking the prevailing trends to heart?

What Businesses Should Do

To stay competitive, we recommend that you:

  • Keep focused on digital. That’s where the action is, according to the data.
  • Invest in creative advertising. As more people go online and interact with brands, it’s going to be harder to stand apart from the pack. As we’ve blogged, it’s critical to invest in strong creative—and creative that is consistent across all your touch points.
  • Keep growing as digital tools evolve. An understanding of—and investment in—new technology helps brands communicate that what they have to offer is cutting edge. And that new technology is out there for the taking. For example, Consider Google’s new visual search tools:
    • Google Lens allows shoppers to tap and hold an image in the Google app or Android Chrome browser in order to find it in an online store.
    • AR Autos will soon allow shoppers to look for a vehicle in Google Search, then see it rendered in 3D or augmented reality. The result? A more immersive look at key features before consumers even arrive at a dealer lot. This advance “peek” is particularly beneficial at a time when many shoppers are trying to limit in-person contact during the pandemic.

Google’s offerings are just a taste of the new opportunities out there. The headline is this: staying on top of new technology can help position you for success.

Contact True Interactive

The changes brought by 2020 won’t go away with the flip of a calendar page. Rather, they have invited brands to adapt. Curious as to how digital can elevate your brand in 2021? Contact us.

Image source: https://www.pexels.com/photo/apps-blur-button-close-up-267350/

Facebook Lifts “20 Percent Rule” with Ads – but Should You?

Facebook Lifts “20 Percent Rule” with Ads – but Should You?

Facebook

Many marketers had reason to rejoice recently when Facebook lifted a longstanding requirement that Facebook ad images contain no more than 20 percent text. But at True Interactive, we believe marketers need to tread carefully. Just because you can pack more texts into your ads, it doesn’t mean you should.

What Is the 20 Percent Rule?

The “20 percent rule” means that ad images on Facebook can contain no more than 20 percent text. Advertisers who run afoul of the requirement have had their ads penalized or blocked on Facebook. But recently, Facebook began letting advertisers know it was eliminating the rule:

Search Engine Journal confirmed the accuracy of this update.

Why Facebook Is Lifting the 20 Percent Rule

Why is Facebook changing course? As an agency that creates ads for many clients on Facebook, we believe the COVID-19 pandemic has made the Facebook staffed overburdened as it has for Google. Reviewing and flagging advertisements requires human intervention. We have noticed that since COVID-19, the platform was mis-flagging quite a few ads we’ve created that should have been acceptable. Lifting the requirement is probably Facebook’s way of reducing the amount of work on their end.

What Advertisers Should Do

We believe lifting the 20 percent rule is good because advertisers have more flexibility. There are times when a banner ad on Facebook would be better off containing a bit more text than Facebook has allowed. At the same time, advertisers should be very careful about increasing text size. Facebook notes that ads with more images perform better, which should surprise no one. We’re living in a visual age, and advertising is no different. People are more likely to pause their news feed and explore your ad when you lead with visually arresting content.

So, we recommend to our clients that they consider using more text only if they have to. We suggest performing A/B tests, as well: run one image with minimal text against an image with more text and see how it serves on the platform. Let the performance numbers be your guide.

In addition, lifting the restriction might be signs of Facebook relaxing creative constraints in other ways, too, depending on how long the pandemic affects the company’s operations. Stay tuned.

Contact True Interactive

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

How Google’s New Ground Rules for Search Term Reporting Affect Advertisers

How Google’s New Ground Rules for Search Term Reporting Affect Advertisers

Google

If it seems to you that Google is reporting fewer search terms in your keyword reports, you are not alone. As discussed in Search Engine Land, Google is revising search term reports “to only include terms that were searched by a significant number of users.” As a result, advertisers have access to fewer search terms when evaluating keyword performance. And lack of visibility is a problem.

Here’s how advertisers are affected: lack of visibility into keyword performance makes it more difficult for advertisers to optimize campaigns, especially when using manual bid strategies. That’s because advertisers lose valuable insights into how people are searching. Without that insight, advertisers struggle to add negative keywords to block irrelevant traffic and improve traffic relevancy — which ultimately can make controlling costs per conversion more difficult.

The new ground rules also lack transparency. Google has not explained what the criteria for a specific search term to be deemed as one being “searched by a significant number of users.”

Taking a Closer Look

The change means that advertisers and their agency partners cannot see all the search terms that match their keywords. As a result, it’s impossible for anyone planning keyword spending to have a complete view of how people search — which means keyword planning is less efficient and more costly.

We have seen the negative impact of this change in our own client work. Here are two examples:

  • On one of our campaigns, thanks to this update, we have lost visibility into search terms that account for 47 percent of month-to-date clicks. If this doesn’t sound significant, consider that in highly competitive verticals with relatively high cost per clicks, advertisers may lose visibility into search terms that drive 44 percent of month-to-date spend, just as it happened for our client.
  • In another campaign, we have lost visibility into search terms that account for 53 percent of month-to-date clicks. In other words, we cannot see search terms that drive 51 percent of month-to-date spend for our client.

When an advertiser cannot see which search terms correspond to its keyword spend, then the risk for inefficiency is unacceptably high. Unfortunately, advertisers end up paying for irrelevant search terms, which means paying for terms that are not converting. The visibility fog is not so damaging for advertisers whose cost-per-click spend is low, say, $1 CPC. But for an advertiser paying, say $50 per click, the resulting inefficiency is very high.

Why Is Google Limiting Keyword Visibility?

Why is Google doing this? Well, Google’s official stance is that it all comes down to user privacy. As Google told Search Engine Land:

In order to maintain our standards of privacy and strengthen our protections around user data, we have made changes to our Search Terms Report to only include terms that a significant number of users searched for. We’re continuing to invest in new and efficient ways to share insights that enable advertisers to make critical business decisions.

While Google’s primary purpose may be to protect privacy, this change may result in greater ad spend as budgets are increased in order to make lead goals – which means more revenue for Google. Having visibility into search terms means a more targeted spend for advertisers, and less money for Google. But when an advertiser lacks visibility, the advertiser may spend money needlessly on terms that are irrelevant to the product or service that is being advertised. An inefficient spend means more money for Google resulting from wasted dollars.

We reached out to Google to share our concerns. If you are seeing similar results, you may want to provide your feedback to Google as well.

Contact True Interactive

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