Why You Shouldn’t Move Your Online Advertising Budget From Google to Amazon

Why You Shouldn’t Move Your Online Advertising Budget From Google to Amazon

Google

In the advertising world, the meteoric rise of Amazon Advertising is capturing a lot of buzz and inspiring commentary, including posts we’ve published on our own blog. At the same, Amazon Advertising’s biggest competitors, Google and Facebook, are as strong as ever. Consider the growth of Google’s own advertising business, which dominates the world of online advertising, even as Google’s share of the online ad market drops slightly, per eMarketer. Here’s the skinny:

Alphabet Reports Strong Earnings

Alphabet, Google’s parent company, surprised analysts recently by reporting stronger-than-expected earnings. As reported in Search Engine Land, Google produced $32.6 billion in advertising revenue in Alphabet’s second quarter. That’s a 22 percent increase year after year, and an uptick after several quarters of slowing growth.

The surge in advertising revenue for Google has a lot to do with Alphabet’s strong earnings. And advertising simply grew a lot better than expected. As Business Insider reported, “A resurgence in Google’s core advertising business, after a weak performance in the first quarter of the year . . . pushed Google’s net revenue up.” Interestingly, the earnings report came out on the same day that Amazon announced mixed results.

Why did Google Report Strong Growth for Its Advertising Business?

No one knows exactly why Google’s been nailing it with its advertising, because the company remains mum about the details. But as The Street pointed out, YouTube probably had something to do with it. Ruth Porat, Google’s Chief Financial Officer, revealed that YouTube revenue represented the second-highest growth of any segment for the search behemoth. And as management noted, “[W]e are building momentum with our subscription services, YouTube Music and YouTube Premium, now available in over 60 countries, up from five markets at the start of 2018.”

We also believe Google is succeeding because the company isn’t standing still and taking success for granted. As we discussed on our own blog, Google continues to launch new features and tools such as artificial intelligence (AI) to help advertisers launch smarter, more targeted campaigns. The headline is this: whether through paid search ads or display ads, Google has been making it easier for advertisers to do the work.

What You Should Do

What does Google’s trajectory mean to the savvy marketer? We recommend that you:

  • Stay abreast of the industry, and keep your options open. That includes staying calm in the face of inevitable fluctuation. For example, according to ad industry sources, some advertisers are defecting from Google and moving 50 to 60 percent of their ad budgets to Amazon. But news like this isn’t a reason to get rattled—or abandon Google. It doesn’t mean advertising should be an either/or between Amazon, Google, or Facebook. Ebbs and flows notwithstanding, the opportunities Google represents can’t be discounted. And no matter how much Amazon grows, Google is not going away. Brands that devote all their advertising resources to one outlet are likely to get burned—or miss out on opportunity.
  • Understand how Google is evolving. Google will continue to grow its ad business, drawing on several key advantages:
    • A head start in using AI with the specific aim of making advertising smarter and more effective. It’s true: AI is hot, and Google faces competition from Amazon and Facebook in this arena. But as noted above, the company is holding its own with a battery of AI tools.
    • An established global presence that reflects Google’s efforts to tailor advertising products in support of international ad campaigns.

Google continues to sense and respond to consumer tastes, even when Google’s profit motive is not evident. A good example is the forthcoming release of Stadia, the cloud-based gaming platform that Google announced recently. How Google will make money off Stadia is not clear immediately. But one thing is clear: Google is finding a way to keep people using Google by launching new products accessible through Google.

Contact True Interactive

Contact us to learn more about how online advertising might figure into your strategy. We’re here to help.

What Advertisers Should Do about the Rise of Voice Search

What Advertisers Should Do about the Rise of Voice Search

Search

We’re living in an era in which people are using their voices to do everything from shop to check the weather. Signs continue to indicate that the rise in voice is more than a passing trend. In fact, recent data shows that businesses need to pay closer attention to voice search and the impact it can have on advertising and organic content.

What Are the Latest Statistics about Voice?

  • According to a 2019 report from Microsoft, 72 percent of people use voice search through a personal digital assistant, and 75 percent of households will be outfitted with at least one smart speaker by 2020.
  • A 2018 BrightLocal study reveals that over a 12-month period, 58 percent of surveyed consumers used voice search to find local business information. In addition, Forbes notes that consumers want voice search to help them with myriad tasks, including:
    • Making reservations.
    • Gathering price data on services and products.
    • Confirming whether an item is available.
  • According to estimates from eMarketer, more than 74 million Americans — almost 27 percent of the U.S. population — will be using smart speakers in 2019, a 15 percent uptick from 2018.

What Should Businesses Do about Voice?

In short, it’s becoming a world in which businesses must be prepared to use voice for advertising. As Jelli CEO Mike Dougherty shared with Forbes, voice will “open up opportunities for marketers and brands to get creative and interact with customers in new ways . . . The goal of any marketer is to establish a genuine connection with customers. Voice is their chance to get one step closer.”

Jennifer Hungerbuhler, the EVP and managing director, local video and audio investment, at Dentsu Aegis Network, concurs. She also notes that voice search will not only be important in the marketing, advertising, and media worlds, it will continue to evolve.

How Should Businesses Prepare for Voice?

Part of staying relevant in a world of voice search means understanding voice, and creating content that optimizes how voice works. For instance, as we have discussed on our own blog, advertisers should evaluate voice search queries and pay attention to the conversational text that occurs.

Conversational text, which tends to be more complicated than simple Google searches, is a clear indicator of how people express themselves during voice search. It can be an excellent resource when companies want to write copy consistent with how people are using their voices to search. “Who,” “What,” “Where,” “When,” “Why,” and “How” are great words to focus on. Long-tail queries that include natural phrases such as “near me” or “can I get the number for” can also be useful/telling. These queries can help identify what consumers most want to know about a company’s products or services—and how they parse their request via voice.

As Hungerbuhler notes, “Advertisers will need to get better at understanding how consumers want to find them in voice, the language they will use to do so, and how they can get onto a shopping list.”

The bottom line? Search behaviors are different when consumers use voice. Because brands, increasingly, want voice assistants to find their site, savvy businesses will tweak their advertising and organic content accordingly.

What You Should Do Next

What are next steps in this brave new world?

  • Prepare now by rethinking your approach to content.
  • Don’t panic. Realize that even though people are using voice assistants, it doesn’t mean they are doing so in droves. According to research firm Stone Temple, voice assistants still rank behind other choices such as mobile browsers or search engine apps.
  • But do act. Voice search isn’t going away. Andy Franco, the founder of Facebook advertising agency Live Surge, explains, “Just like search has become second nature to people who used to use card catalogs, voice is likely to be well used by those who are multitasking and need hands-free tools.”

Contact True Interactive

Contact True Interactive. We can help you better understand voice search as you craft your strategy.

Photo by Sebastian Scholz (Nuki) on Unsplash

Three Ways to Capitalize on Amazon Search

Three Ways to Capitalize on Amazon Search

Amazon

We already know that Amazon is the Number One website for people to do product searches: according to a 2018 Jumpshot report, from 2015 to 2018, Amazon overtook Google in this area, with Amazon growing to claim 54 percent of product searches while Google declined from 54 percent to 46 percent. Now we know something more. According to Marketplace Pulse, a majority of Amazon searches—78 percent, in fact—are nonbranded. Instead of pinpointing a specific company like lululemon, say, many customers are making broad searches such as “yoga pants for women” and seeing what comes up.

This data demonstrates the opportunity that exists — indeed, just how wide open the playing field on Amazon is for businesses that sell products there. People are searching with intent on Amazon: they want to buy something. But they haven’t yet decided on what to buy. And here’s where the savvy marketer can make inroads.

Amazon Is Growing as an Ad Platform

The data also underscores just how big Amazon has become as an advertising platform. As we recently blogged, Amazon continues to grow, and is biting into other companies’ share of the spoils. eMarketer’s report that Amazon is projected to capture 8.8 percent of U.S. digital ad spending in 2019 is telling. So was the GeekWire article from January 2019, which discussed record 2018 profits for Amazon, and gave props to advertising for contributing to that success. According to GeekWire, “Fueling its bottom line is Amazon’s growing advertising arm that generates revenue by charging companies to promote their products on Amazon properties.”

Three Ways to Capitalize on Amazon Searches

How can a business take advantage of these developments? That is, what sort of strategy should businesses embrace in order to capitalize on the possibilities Amazon affords?

1 Advertise on Amazon

First of all, make sure you advertise on Amazon and that you know how to do so. Familiarize yourself with the complete listing of Amazon Advertising offerings.

And check out our blog. We’ve published numerous posts to help businesses understand Amazon’s many advertising options, including:

  • Sponsored ads, the pay-per-click (PPC) advertising approach that takes a shopper directly to a product page or brand site within Amazon. Sponsored ads are available to sellers, venders, book venders, and Kindle Direct Publishing.
  • Video ads, which complement display ads by expanding beyond a single image to tell a compelling story. Video ads can be used to target a certain audience on Amazon as well as Amazon-owned and third-party sites (e.g., Twitch) and devices.
  • Display ads, which, like video ads, can be employed to reach people in a specific target audience.

Additionally, be aware that Amazon is constantly refining and improving its advertising offerings and creating new ones. Stay abreast of the changes.

2 Make Sure You Have Good Reviews on Amazon

Reviews carry a lot of weight and can help you. According to an oft-cited 2012 Nielsen release, 70 percent of respondents had some or complete confidence in online reviews of products, whether they knew the reviewer or not. Online reviews also tap into basic human psychology. In a description of Dr. Robert Cialdini’s six principles of persuasion, the Influence at Work website describes consensus as the phenomenon where “people will look to the actions and behaviors of others to determine their own . . . especially when they are uncertain.” Note that in the case of consensus, at least online, more is more. Five hundred positive reviews will impress consumers more than three will, no matter how glowing those three reviews happen to be. Ask customers to review you.

3 Be Aware That Advertising on Amazon Is Not a Slam-Dunk

Amazon has flooded its site with its own private label products. Understand Amazon’s generic product strategy — it’s huge —especially if you are a commodity brand such as a seller of batteries, vents, or paper towels. You’ll have to work hard.

There’s a lot of money to be made on Amazon. If you already have products there, know how to capitalize on Amazon’s tools to attract customers. If you don’t, think about making that happen.

Contact True Interactive

True Interactive knows how to build your business via advertising on Amazon in context of broader online advertising strategies. Want to learn more? True Interactive can help. Contact us.

Why the Amazon/Sizmek Deal Matters

Why the Amazon/Sizmek Deal Matters

Advertising Amazon

On May 31, Amazon said it will acquire assets from Sizmek, an advertising technology firm. The announcement consisted of three paragraphs with little detail. But the deal is valuable for Amazon as the company builds a stronger advertising platform to compete with Facebook and Google.

Amazon Advertising Gains Market Share

Amazon’s advertising business is slowly taking market share from Facebook and Google. According to eMarketer, Amazon will capture 8.8 percent of U.S. digital ad spending in 2019. This amount trails far behind Google (with 37.2 percent market share) and Facebook (22.1 percent). But Amazon is building its advertising operation from scratch, and in a short time it has emerged as a threat primarily to Google, as consumers shift their product searches away from Google and toward Amazon.

How Sizmek’s Assets Will Help Amazon

Amazon purchased Sizmek’s ad server and dynamic creative optimization tools, the latter of which helps personalize ads using data. Sizmek’s tools will bolster Amazon’s already strong warehouse of customer data with even more data from ad serving. Doing so will give Amazon more targeted ways to advertise to the millions of people who search for products on Amazon and willingly share their personal information with the company. The deal isn’t making Amazon bigger, but it will make Amazon smarter.

What Advertisers Should Do

At True Interactive, we help businesses capitalize on Amazon as an advertising platform as part of our broader digital advertising offerings. We’ve been actively blogging about the many features Amazon Advertising is developing, such as video ads on Amazon’s mobile app. Based on our own experience, we suggest advertisers:

  • Examine how partnering with Amazon Advertising will help you attract and acquire customers, even if you don’t sell products on Amazon. As The New York Times reported recently, Amazon is tapping into its rich vein of customer data to help companies create more targeted ads across the digital world – an “insanely powerful” capability, according to the article.
  • Watch as Amazon’s competitors evolve their platforms to compete with the Amazon threat. For instance, Google recently announced new features intended to make it a stronger mobile advertising platform (which we discussed here). And, don’t forget Microsoft. Its own advertising business, while small, gives businesses an alternative to the Big Three of Amazon, Facebook, and Google.

Online advertising is changing rapidly as the major players make acquisitions and develop their products organically. Advertisers will benefit so long as you remain vigilant and capitalize on these improvements. True Interactive can help you. As an outside party, we constantly evaluate new tools and ensure that our clients benefit from them with effective digital advertising campaigns. Contact us. We’d love to make your online advertising more powerful.

Coming to the Amazon App: Video Ads

Coming to the Amazon App: Video Ads

Amazon

As consumers increasingly shop online, Amazon’s app is a popular go-to destination, and the company is clearly paying heed. Recent Mobile Marketer and Bloomberg articles underscore Amazon’s sensitivity to consumer habits and the way the company is responding to what it sees: for example, by testing video ads in the Apple iOS version of Amazon’s shopping app. The move makes Amazon a stronger advertising alternative to Google and Facebook, and signals not only the e-commerce giant’s increased focus on advertising, but also its recognition of the public’s hunger for mobile ads.

Savvy and Lucrative

Incorporating video ads on the Amazon app is a savvy move. As an intent-based app, Amazon tends to draw consumers who already possess a desire to buy. The video spots, which pop up in response to users’ search results in Amazon’s shopping app, are meant to capitalize on this intention. It’s also a lucrative move for the company: though prices range depending on the ad category and not everyone pays a fixed rate, Amazon is charging roughly a $35,000 ad budget to run the spots at five cents per view for 60 days. The plan is to start with iOS, then expand to Google’s Android mobile operating system later this year.

Growing Along with Digital Advertising

As we’ve been discussing at True Interactive, the news is a sign of Amazon’s continued growth as a platform for businesses to advertise on—not just sell products on. And although Amazon’s April 25th first quarter earnings announcement reports a slowdown in that growth, the announcement also makes it clear: Amazon’s advertising business remains strong and highly profitable.

Furthermore, Amazon is making inroads into others’ share of the spoils. eMarketer reports that Amazon’s advertising business will capture 8.8 percent of U.S. digital ad spending in 2019, eating into the percentage enjoyed by the duopoly of Google and Facebook (Google, while still enjoying the lion’s share of digital ad spending, is projected to drop by one point in 2019). And Amazon, though still trailing behind Facebook and Google in advertising spend share, seems uniquely positioned to step up. As eMarketer forecasting director Monica Peart notes, “Amazon offers a major benefit to advertisers, especially CPG and direct-to-consumer [D2C] brands. The platform is rich with shoppers’ behavioral data for targeting and provides access to purchase data in real time.”

It’s a good time for Amazon to expand in this way: as we discussed in a recent post, mobile ads are on the rise. Forrester reports that between 2017 and 2022, mobile will drive 86 percent of growth in U.S. digital ad spending. The digital dollars are being siphoned from other, more traditional ad spending shares, according to eMarketer: directories like the Yellow Pages, for example, and traditional print resources like newspapers and magazines. “The steady shift of consumer attention to digital platforms has hit an inflection point with advertisers, forcing them to now turn to digital to seek the incremental gains in reach and revenues which are disappearing in traditional media advertising,” Peart said.

What You Can Do

Whether or not you advertise on Amazon, the news offers a compelling reason to have a mobile ad strategy. We recommend that you:

  • Remember that mobile is its own beast. Take a page from Amazon’s book: listen to the signals of consumer behavior and shape your mobile advertising accordingly.
  • Watch for Facebook and Google to respond with more mobile ad products, and see how they do it. Watching these giants maneuver and attempt to one-up one another can be a great way to learn what works.
  • Consider how video plays into your advertising mix. Video has its own set of requirements for production and creative concepting: what does that mean for your business and the resources you have at hand?

True Interactive works with businesses all the time to develop their video advertising campaigns Call us, and see our recently published case study with Snapfish, to get an idea of the kind of work we do.

Photo by You X Ventures on Unsplash

 

 

 

 

Why the Launch of Microsoft Advertising Is Good for Brands

Why the Launch of Microsoft Advertising Is Good for Brands

Bing

For many businesses, the discussion about online advertising platforms begins and ends with Amazon Advertising, Facebook, and Google. But recently Microsoft stated the case for why it belongs in the same conversation. On April 29, Microsoft announced that its Bing Ads product has been rebranded as Microsoft Advertising. The announcement was more than a name change. Rather, Microsoft reminded advertisers that there’s a lot more to Bing than paid search.

Bing: More Than Search

Bing is already a platform for businesses to launch digital advertising in a number of ways. For example, as we blogged last year, Bing has been rolling out a feature that makes it possible for businesses to target Bing advertisements by relying on LinkedIn data. The feature, known as LinkedIn profile targeting, is an example of how Microsoft is monetizing LinkedIn a few years after Microsoft purchased the popular business-to-business platform. In addition, Bing is piloting a number of products, such as these audience marketing products:

  • In-Market Audiences: targets curated user lists determined to be in market for a particular purchase category.
  • Product Audiences for Search: businesses get remarketing lists for products that allow them to target searchers based on product IDs they interacted with – and promote those same product IDs to them.
  • Microsoft Audience Ads: Audience Campaigns: you can manage your audience budget, campaigns, and optimization separately from your Bing Ads search campaigns.
  • Similar Audiences: targets audiences that are similar to your remarketing audiences.

Bing Advantages

Many advertisers aren’t aware of these and many other Microsoft ad products. But they should. As I blogged last year, Bing offers many advantages. For instance:

  • At True Interactive, we have seen larger average order values on Bing compared to Google. In other words, the typical consumer on Bing spends more per purchase. That’s because the average Bing searcher probably has a higher income level than the average Google user.
  • Bing innovates in more ways than the brand gets credit for, such as its use of visual content. The recently launched Bing visual search extends a strong visual search capability across both Android and iOS devices, whereas visual search on Google remains limited to the Android world.
  • Bing is building a stronger network of partners. As noted earlier this year, Bing is the exclusive provider of search advertising across Verizon Media properties such as Yahoo.

Microsoft used the news about Microsoft Advertising to draw attention to the launch of more advertising products. For instance, the new Sponsored Products (available exclusively in the United States) helps manufacturers to boost visibility and drive more traffic for their top products in shopping campaigns. As Microsoft noted,

With this new capability, our clients can achieve better alignment of marketing efforts between manufacturers and retailers. Together, the connections they create with shoppers work harder to drive performance — clicks, conversions, and ROI. Manufacturers gain access to new reporting and optimization capabilities, and retailers get additional product marketing support with a fair cost split.

Microsoft wants the rebrand to do for Microsoft what the launch of Amazon Advertising achieved for Amazon and the rebrand of Google AdWords to Google Ads did for Google: raise awareness for a broader portfolio of products.

Why the Rebrand Is Good

I believe that the expansion of ad products under the Microsoft brand is good for advertisers for these reasons:

  • Businesses have more options beyond the Big Three of Amazon, Facebook, and Google.
  • Stronger competition will lead to innovation with product development.
  • As I noted, Microsoft delivers a valuable audience, more so than many businesses know.

At True Interactive, we work with businesses to develop successful campaigns across all these platforms and more. Contact us to learn how we can help you succeed.

Instagram Creates Its Own Customer Journey with Checkout

Instagram Creates Its Own Customer Journey with Checkout

Social media

Instagram describes itself as a platform for people to “experience the pleasure of shopping versus the chore of buying.” It’s designed for people to browse for ideas and then shop as opposed to visiting with an express intent to buy and leave. On March 19, Instagram took one step closer to making itself a strong shopping destination by launching a checkout function.

Available on a limited basis, Instagram checkout makes it possible for Instagrammers to buy what they want on Instagram. As Instagram said in a blog post, “Checkout enhances the shopping experience by making the purchase simple, convenient and secure. People no longer have to navigate to the browser when they want to buy. And with their protected payment information in one place, they can shop their favorite brands without needing to log in and enter their information multiple times.”

Charter businesses participating in checkout include Burberry, Nike, and Revolve. In coming weeks, more businesses will participate, including Adidas, H&M, KKW Beauty, Kylie Cosmetics, MAC Cosmetics, Michael Kors, NARS, Oscar de la Renta, Prada, Uniqlo, and Warby Parker. (It’s interesting to note the number of upscale brands creating shoppable experiences on Instagram – a comment on how luxury brands have adapted to the times by becoming more accessible via digital.)

Checkout seems like a natural move for Instagram. As Vishal Shah, Instagram’s head of product, told The Wall Street Journal, “People were already shopping on Instagram. They were just having a hard time doing it.” The platform previously launched shoppable features such as product stickers in Stories. Vishal Shah  told Bloomberg, “Over time, as we are creating value for people, this could be a significant part of our business.”

The launch of checkout positions Instagram against Amazon as a platform for searching and shopping although Amazon clearly has an advantage with its scale. Enabling commerce on Instagram also makes it possible for businesses to create more integrated advertising experiences that connect the customer across the entire purchase journey, from awareness to conversion – with the entire journey occurring inside Instagram (instead of sending customers to an advertiser’s website to make an actual purchase). This is the kind of experience Amazon is creating – a self-contained customer journey where you can search and buy on one platform.

For more insight into how to create successful digital advertising on Instagram, contact True Interactive. We’re here to help.

Image source: Instagram