It’s Amazon Advertising’s Year — So Far

It’s Amazon Advertising’s Year — So Far

Amazon Facebook Google

Good news for Amazon. Bad news for Google. According to a new report from eMarketer, Amazon’s share of online advertising continues an upward trend. Google, by contrast, continues to lose marketshare. Read on to learn more.

The What

Amazon’s share of online advertising, which has been rising every year, will reach 9.5 percent in 2020, eMarketer says. Google’s share will drop to 29.4 percent, as Google reports its first-ever decline in advertising revenue since eMarketer began tracking advertising revenue in 2008. Meanwhile, Facebook’s share of online advertising is predicted to rise to 23.4 percent (note, however, that eMarketer published its analysis before an advertising boycott of Facebook took hold—those numbers will likely be re-evaluated).

The Why

Why is Amazon Advertising increasing its share, while Google sees its marketshare drop?

  • Amazon’s advertising unit, known as Amazon Advertising, is probably benefitting from people shifting their purchasing online during the COVID-19 lockdown of 2020. As we have blogged, Amazon without question became an especially attractive place to make purchases as shelter-in-place mandates took hold. And Amazon was prepared to help advertisers build their visibility during this surge, with a tool kit including products such as Sponsored Ads and Display Ads.
  • Meanwhile, eMarketer principal analyst at Insider Intelligence, Nicole Perrin, explains that “Google’s net US ad revenues will decline this year primarily because of a sharp pullback in travel advertiser spending, which in the past has been heavily concentrated on Google’s search ad products. Travel has been the hardest-hit industry during the pandemic, with the most extreme spending declines of any industry.”

What the News Means

The news creates some nice press for Amazon Advertising, but as we have blogged, Google’s ad business remains healthy and solid. And as eMarketer points out, Google is being hit by the economic downturn in travel. There is nothing inherently wrong with Google’s ad products, however.

In fact, Google continues to make its ad products better. We have blogged about some of its innovations lately:

Facebook likely has more to worry about than Google. An advertising boycott is gaining traction with big brands such as Unilever and Starbucks pulling their ad business because they believe Facebook is not doing enough to police hate speech, among other grievances. As reported by cnbc.com, the big names already responding to the #StopHateForProfit campaign have the potential to influence more companies to join the boycott.

Our Recommendations

We suggest that regardless of your platform of choice, businesses continue advertising online. Despite the turbulence among the big online ad players, we know that businesses that continue to have an online ad presence are best positioned for success.

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How Brands Are Succeeding with Voice Technology in 2020

How Brands Are Succeeding with Voice Technology in 2020

Branding

In December, I predicted that voice search would become smarter and more useful in 2020: “I continue to see more people using their voices to find things with their smart speakers, phones, and in-car devices,” I wrote. “But what’s changing is that people are getting more comfortable buying things, not just searching for things, with their voices.” Of course, I had no idea that a global pandemic was about to radically change our behavior, including how we use voice assistants. Let’s take a closer look at what’s been happening during the first half of 2020.

Voice Assistants Are Gaining Even More Currency

The pandemic has moved the needle when it comes to consumer openness to voice assistants. The Wall Street Journal reported,

Euromonitor earlier this year noted that consumers were buying more AI-enabled home appliances and virtual assistants, like Amazon.com Inc.’s Alexa. But now, such devices have a new draw, says [head of Euromonitor’s lifestyle research Alison] Angus. “Voice-control technology limits the need to touch surfaces so much, so that’s why they are appealing,” she says.

Though states are starting to lift COVID-19-related restrictions, many consumers will remain cautious. Concerns about health and safety going forward will make voice’s touch-free nature ever more attractive.

Voice Assistants Are Increasingly Becoming An Integral Part of Daily Life

In a national survey published by Edison Research and NPR, 1,660 adults across the United States were asked about their use of voice assistants. As Voicebot.ai reports, the survey demonstrated that during the COVID-19 pandemic, voice assistant usage jumped: results reveal that more than 50 percent of smart device owners are using voice commands at least once a day now—an uptick that occurred between the start of 2020 and the beginning of April. At the same time, there is a drop in the number of people who are using voice commands less frequently. Habits are indeed changing, and the change started during the era of COVID-19.

Voicebot.ai also reports that:

  • In 2019, smart speaker owners used voice requests for an average of 9.4 different tasks a week. In 2020, that number has inched up to 10.8 different tasks.
  • Fifty-nine percent of smart speaker owners who also own a smartphone voice assistant perform different voice-related tasks with each device.

Changes in work/commuting habits during the pandemic have also informed voice assistant usage. “With tens of millions of Americans no longer commuting, smart speakers are becoming even more important as a conduit for news and information,” Tom Webster, Edison Research senior vice president, said. He believes those habits will persist, and evolve, noting that “this increased usage and facility with voice assistants will likely increase demand for this technology in vehicles once our commutes resume.”

The Business Response

Some businesses are reading the tea leaves and responding by making voice an ever more useful utility:

  • Snapchat, for example, will be rolling out a new way to sort through the million+ augmented reality (AR) Lenses that Snap makes available through its Lens Studio platform. As TechCrunch reports, “the app’s new voice search will allow Snapchat users to ask the app to help it surface [Lenses] that enable them to do something unique.” Potential applications here could range wide: imagine asking Snap to show what you will look like wearing a particular brand of makeup, say, or how a specific television might look on your wall.
  • Google, meanwhile, has launched a new voice assistant called Diya. Diya’s mandate? To help kids learn to read. According to Voicebot.ai, Diya is part of a new educational app for Android, Read Along, that aims to help parents home-schooling their kids during the COVID-19 shelter in place. Diya “listens” to kids read, correcting errors and offering encouragement and congratulations. Students can also ask Diya for help pronouncing words they don’t know how to say.
  • For Dunkin’ Brands, having a voice search strategy was already a priority at the beginning of 2020. Then the pandemic hit. Coronavirus changed the rules for food and beverage availability, and as Ad Age notes, “Dunkin’ saw a 10x rise in people using voice to search for open locations with access points like drive-through, delivery or curbside pickup.” The company adjusted to the new normal, tailoring its paid online search results to respond effectively to the uptick in voice requests. As Keith Lusby, VP of media at Dunkin’, noted, consumers were often already driving when they made their request, and couldn’t type on their phones to determine whether a nearby location could in fact serve them. “When you think about our business pre-COVID, it was nice to know when I got to the store and they had a drive-through,” Lusby says, “but now it’s determining whether I go or not. We were able to modify our results to make sure we matched what the person was looking for.”

What You Should Do

Lusby’s comment is a perceptive one, and echoes what we’ve discussed on our own blog. Brands looking to optimize voice in ads and websites will want to evaluate typical voice search queries and pay attention to the conversational text that occurs. As Lusby notes, “That’s our view of voice—meet the customer; they’re giving us more info, so let’s give them a better result.”

But how to achieve this? To begin with, advertisers want to pay attention to the nature of conversation, which tends to be more complicated than the verbiage used in a simple Google search. In short, people express themselves differently in voice search than they do in Google searches. Google searches are more brusque. Advertisers hoping to connect well with voice searches will want to write copy consistent with how people speak. “Who,” “What,” Where,” “When,” “Why,” and “How” are great words to focus on. Queries that include natural phrases such as “near me” or “can I get the number for” can also be useful/telling. In the end, sites or copy that match conversational tone are likely to help brands looking for hits from voice-based searches.

Finally, consider how you might use voice to improve the customer experience overall. As brands like Dunkin’ demonstrate, businesses can use voice technology to create a more pleasant customer experience as people continue to look for ways to avoid touching screens.

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Photo by Jason Rosewell on Unsplash

Amazon, Facebook, and Google Earnings: Takeaways for Advertisers

Amazon, Facebook, and Google Earnings: Takeaways for Advertisers

Advertising

The week of April 27 was especially important for the online advertising world. The three companies that account for nearly 70 percent of online ad spend – Amazon, Facebook, and Google – all announced quarterly earnings. Here was the first time advertisers would see the impact of the COVID-19 pandemic on ad spend. And the news was better than expected.

Amazon Advertising Surges

Amazon announced a rise in quarterly revenue as people sheltering in place increasingly relied on digital to manage their lives, including purchasing products. Amazon’s Advertising service saw a 44-percent increase in revenue (advertising is included in the “other” category in Amazon’s earnings). Why did Amazon’s advertising business do so well?

  • For one thing, consumers on Amazon are searching with intent to buy. And a lot of people are searching on Amazon. According to CivicScience, 49 percent of product searches start on Amazon, versus 22 percent on Google.
  • Amazon without question became a more attractive place to find things to buy as shelter-in-place mandates took hold. According to Learnbonds.com, Amazon’s monthly unique visitors for March, 4.6 billion, easily exceeded competitors such as eBay and Walmart.
  • Amazon was prepared to help advertisers build their visibility during the surge. As we have reported on our blog, over the years, Amazon’s advertising service has developed a number of products that have served Amazon and advertisers well. Those products include Sponsored Ads, Video Ads, and Display Ads, among others.

Amazon said it will plow its profits into COVID-19-related relief activities. As CEO Jeff Bezos said in a statement, “If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small. Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances. Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and keeping employees safe.”

Amazon’s steady development of an advertising service helped put the company in the position to be able to accommodate this expenditure.

Facebook and Google: Signs of a Turnaround

To no one’s surprise, both Facebook and Google saw a slowdown in revenue earned from online advertising, especially in March. But stock shares for both companies rose after they announced earnings. Why? Let’s take a closer look.

Facebook: More Users and Engagement

Facebook announced that even though ad revenue had dropped during the quarter, it was showing signs of turning around in April. Overall, quarterly revenue rose by $17.74 billion. As Facebook said in a statement, “After the initial steep decrease in advertising revenue in March, we have seen signs of stability reflected in the first three weeks of April.”

In addition, Facebook said that monthly active users had increased 10 percent year over year to number 2.6 billion, and engagement was up as people sheltering in place increased their use of social media.

The advertisers who maintained their spending levels during the dip in March benefitted by being present during the surge in user engagement, as we discussed on our blog.

Google: YouTube Is the Star

Meanwhile, Google’s parent company, Alphabet, reported quarterly revenue of $41.16 billion, a 13-percent year-over-year increase. Revenue from advertising rose 11.6 percent, with advertising from YouTube surging by 33.5 percent.

Alphabet acknowledged that online ad revenue had taken a hit because of COVID-19. But in an investor earnings call, the company’s Chief Financial Officer, Ruth Porat, said that “We have seen some very early signs of recovery in commercial search behavior by users.”

Because Google is very active in the travel and retail – industries that have been rocked by the pandemic – its performance actually exceeded expectations.

As with Facebook, advertisers who maintained their levels of spending benefitted as the general population shifted its behaviors online during the first quarter. As we noted on our blog, many businesses adapted their tone and content to demonstrate empathy with ads running on Google sites such as YouTube. Those businesses positioned themselves well.

What You Should Do 

Amazon, Facebook, and Google will continue to dominate the world of online advertising for the foreseeable future. Here is what we suggest:

  • Don’t go dark. Businesses that maintained their visibility online during the March advertising downturn benefitted from the increase in online engagement. Even as states ease up their shelter-in-place orders, social distancing is not going away anytime soon. We’re living in a digital-first world now amid longer-term behavioral changes. Being present with paid media means taking a digital-first approach.
  • Mind your tone. As I blogged in March, businesses need to do a gut check on the tone of their content. Many businesses have successfully incorporated empathy into their advertising while others have changed their messaging to focus on health and safety. Taylor Hart shared some examples of successful social media advertising in this blog post.
  • Be open to different forms of engagement. It’s important that businesses be ready to adapt different forms of engagement to reflect changing user behavior. For instance, as Facebook CEO Mark Zuckerberg pointed out during Facebook’s earnings call, livestreaming on Facebook is a more attractive alternative to live events. Moreover, Facebook had already been seeing a marked increase in use of its Messenger app before the pandemic. Héctor Ariza recently shared examples of ad products that capitalize on the popularity of Messenger. Given the increase in Facebook’s monthly average users, now is a good time to try those products.
  • Capitalize on new ad products. Google is fighting hard to protect its turf amid the rise of Amazon Advertising. The company continues to roll out new products to make the Google universe more appealing to advertisers. For instance, I recently blogged about how Google has adapted the YouTube masthead ad format for the era of connected TV. As Mark Smith discussed in December 2019, Google has been developing some impressive location-based advertising tools.

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Why Super Bowl 2020 Ads Humanized Voice Assistants

Why Super Bowl 2020 Ads Humanized Voice Assistants

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Last month on this blog I predicted that in 2020 we’d see companies such as Amazon and Google inject more personality in the way people interact with voice assistants. During the Super Bowl LIV advertising derby, I definitely saw some personality shining through with ads for Amazon’s Alexa and Google’s Google Assistant. As businesses embrace voice-first approaches in their advertising and organic content, they can learn lessons from Amazon and Google. People crave a human touch with voice technology.

Amazon: “Before Alexa” 

Amazon relied on humor to make Alexa seem funnier and cuddlier, a tactic that Amazon has been using in recent Super Bowl ads. During Amazon’s Super Bowl 2020 ad, Ellen DeGeneres asked, ““What do you think people did before Alexa?” which triggered a bunch of vignettes of people throughout history asking other people to answer everyday questions, resulting in hilarious outcomes. We saw the Queen of England demand that a hapless jester named Alexi tell her a joke. A man in Dickinsonian England asked a newsboy named Alex, “What’s today’s news?” to which the kid replied, “Doesn’t matter. It’s all fake.” The ad circled back with Ellen DeGeneres asking Alexa to play her favorite song.

With this ad, Amazon wanted to remind us that talking with a machine is as natural as, well, two washerwomen in Medieval days passing the time. We’re just having a conversation, as natural as can be.

Google: “Loretta”

 

Google won over the internet with a touching ad in which an elderly widower asked Google Assistant to call up photos and memories of his late wife, Loretta. Through the man’s gentle instructions, we learned of his life with Loretta, including the favorite movie they shared (Casablanca) and a memorable trip they took to Alaska. At the end of the ad, the man said, “I’m the luckiest man in the world.”

This ad was emotionally powerful without being sentimental, and it turns out that it was based on the experiences of the grandfather of a Google employee; and the grandfather actually narrated the ad. I don’t know about you, but I think it’s going to be hard to find an ad in 2020 that tops this one for making voice assistants approachable and human. Here, Google Assistant acted as a friendly utility, helping a man remember a loved one.

Voice Assistants Get Personality

As I wrote last month, although voice assistants are growing in popularity, we’re not quite at a place where people are willingly using voice to manage the really important tasks such as making purchases and getting directions to the hospital. We need to trust voice assistants completely in order for voice to make that kind of breakthrough. Journalist Judith Shulevitz wrote in a recent Atlantic article, “Is Alexa Dangerous?”:

Within our lifetimes, these devices will likely become much more adroit conversationalists. By the time they do, they will have fully insinuated themselves into our lives. With their perfect cloud-based memories, they will be omniscient; with their occupation of our most intimate spaces, they’ll be omnipresent. And with their eerie ability to elicit confessions, they could acquire a remarkable power over our emotional lives. What will that be like?

But during Super Bowl LIV, Amazon and Google showed us that we have nothing to fear from voice assistants. They are as natural and human as we are.

The takeaway for businesses: as voice-based advertising and customer experiences take hold, showing personality and humanity in your content (paid and organic) will resonate.

Contact True Interactive

To succeed with online advertising in 2020, contact True Interactive. Read about some of our client work here.

Why the Popularity of Amazon Alexa at CES 2020 Matters to Advertisers

Why the Popularity of Amazon Alexa at CES 2020 Matters to Advertisers

Amazon

The Amazon Alexa voice assistant cast a big shadow over CES 2020, the premier annual event for showcasing new consumer technology. Amazon demonstrated a number of product integrations with Alexa. They matter because they point to a possible way that Amazon could lead online advertising.

The Battle for a Voice-First Future

Amazon is fighting a fierce battle with Apple and Google to lead the uptake of voice-based products among consumers and businesses (with Microsoft and Samsung also stepping up their own efforts). More than one quarter of Americans own voice-activated smart speakers, according to Voicebot.ai and Voicify. Amazon’s Echo leads the pack, but Google is catching up, as reported in The Motley Fool.

To win the war for voice, Amazon, Apple, and Google need to collaborate with product manufacturers to incorporate their voice assistants into product design (or through aftermarket upgrades).  And CES is where those integrations are demonstrated. For example, Bosch, the maker of smart home appliances such as dishwashers, announced an integration with the Apple Siri voice assistant. And a number of manufacturers ranging from Belk to GE announced integrations with Google Assistant, Google’s voice assistant.

But Amazon outflanked everyone. A wide variety of manufacturers ranging from bed maker Dux to helmet maker Jarvis demonstrated how they’re relying on Alexa to make it possible to use their products with our voices.  But it wasn’t just the sheer number of integrations with manufacturers that mattered – what really caught my eye was how Amazon is making it easier for people to actually purchase things.

Making Purchases Is the Holy Grail of Voice

As I wrote in a recent blog post, people still use voice to do more mundane tasks such as checking the weather. Making purchases, though, is the Holy Grail of voice. Voice commerce is a far more complicated undertaking. And at CES 2020, Amazon showed that it is up for the challenge. Amazon announced that in 2020, automobile drivers will be able to use Alexa to purchase gasoline. As Amazon said, “Later this year, customers will be able to say, “Alexa, pay for gas” to easily purchase fuel at all 11,500 Exxon and Mobil stations. The transactions for this new Alexa feature are made through Amazon Pay and powered by Fiserv, a global financial services technology provider.

The ability to pull off voice-activated purchases requires Amazon to work closely with ExxonMobil – an example of the collaboration required to make voice a reality. If Amazon and ExxonMobil can make the purchase of gasoline as easy as making a voice command, then manufacturers and retailers will be encouraged to adopt voice for purchases, too. (Think of appliance makers turning the Amazon Dash device for order replenishment into a consistently reliable voice-first experience.)

Why CES 2020 Matters to Advertisers

Why do these announcements matter to businesses that advertise online? Well, here is a telling statistic: even though Amazon leads voice, Google pretty much owns online advertising. Google commands 37 percent of digital ad spend. The next largest competitor, Facebook, has 22 percent of the market. Amazon lags behind with 8.8 percent. But – Amazon is still very new to online advertising. It did not start dipping its toes into online advertising until 2008. Within 10 years, Amazon had become one of the big three of online advertising.

Amazon is rapidly threatening Google’s and Facebook’s leadership by offering new tools that help businesses advertise on Amazon – and off Amazon. We’ve written about some of those tools, such as my colleague Samantha Coconato’s posts on Amazon Video Ads, Amazon Display Ads, and Amazon Sponsored Ads. Those ad services capitalize on the reality that Amazon has become an increasingly popular way for people to search for products – even more popular than Google.

But Amazon knows the world is changing from text-based to voice-based search. Voice search is not “taking over.” But voice is becoming more common. Per a Microsoft study in 2019, 72 percent of people surveyed had used voice search the previous month. Amazon is preparing for the time when voice will reach a tipping point, and businesses will have no choice but to employ voice-based advertising and search engine optimization tactics into their game plans.

And that’s why the product integrations matter. By making Alexa the de facto voice assistant in everyday products, Amazon wants people to be more comfortable using their voices to use and buy things. Encouraging the uptake of voice among consumers helps Amazon position itself as the premier advertising partner for businesses.

Whether Amazon succeeds remains to be seen. But as Google and Apple compete with Amazon to integrate voice, it’s clear that advertisers need to be ready to adapt.

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The Big Trend in Voice for 2020: Voice Assistants Get Personality

The Big Trend in Voice for 2020: Voice Assistants Get Personality

Branding

Where is voice technology headed in 2020? That’s the question on the minds of businesses and technologists as the annual CES show gets under way in Las Vegas. I believe the answer is that voice-enabled devices will get more personality, making voice technology more approachable — and encouraging businesses to embrace sonic branding.

The Rise of Voice Search

I’ve written often about the rise of voice search. I continue to see more people using their voices to find things with their smart speakers, phones, and in-car devices. The fact that more consumers are adopting voice-enabled devices is beyond debate – but just to remind you how popular voice-based products have become, allow me to direct you to an insight from Statistica about the growth of smart speakers (which are just one type of voice-enabled product):

As consumers have become increasingly open to the idea of integrating smart technology into their households, smart speaker sales revenue has skyrocketed, growing from around 900 million in 2016 to nearly 12 billion in 2019. Growth in the smart speaker market is increasing at a faster rate than that of other smart home devices, which shows that people trust the technology and find it easy to adopt. As of 2019 an estimated 35 percent of U.S. households are equipped with at least one smart speaker and by 2025 forecast suggest that this penetration rate will increase to around 75 percent.

What fascinates me is not just the growth but how people are using their voices. This time last year, the news stories about voice tended to focus on increasing sales of products such as smart speakers that use the Amazon Alexa and Google Assistant voice assistants (and, to a lesser degree, Apple’s Siri voice assistant).

Voice Gets Personality

But a sample of headlines for the week of January 6, 2020, shows a shift in the narrative. Voice sales still matter, but what matters even more is how people are using voice products as this headline sample shows:

Notice anything about the top three results? They all focus on how we communicate with devices, specifically the need for voice assistants and people to do a better job communicating with each other. The CNN headline about programming your voice assistant to sound like actor Samuel L. Jackson is telling. In 2019, Amazon announced that soon, an Alexa skill would make it possible for people to have their smart devices talk to them using Jackson’s distinctive, earthy speaking style. Now the capability has arrived.

Why does this particular Alexa skill matter? Because it shows that voice is moving on from an impersonal utility to an assistant with personality. Being able to inject one’s voice assistant with the warm, familiar voice of Samuel L. Jackson should help people overcome a natural aversion to communicating with voice-based products: using a device that listens to us and talks to us in the most private areas of our living spaces. As journalist Judith Shulevitz wrote in a recent Atlantic article, “Is Alexa Dangerous?”:

Within our lifetimes, these devices will likely become much more adroit conversationalists. By the time they do, they will have fully insinuated themselves into our lives. With their perfect cloud-based memories, they will be omniscient; with their occupation of our most intimate spaces, they’ll be omnipresent. And with their eerie ability to elicit confessions, they could acquire a remarkable power over our emotional lives. What will that be like?

Amazon is not the only company making voice more approachable and comfortable by incorporating familiar, iconic names in their products and services. In 2015, KFC teamed up with the navigation app Waze to give motorists a fresh voice option for their audio directions: Colonel Harland Sanders. Google actually beat Amazon to the punch with celebrity tie-ins by making it possible to incorporate the voice of singer John Legend in Google Assistant. In October, Google announced that Google Assistant would incorporate the voice of actress Issa Rae.

Why Voice with Personality Matters to Advertisers

These developments matter very much to advertisers. Although people are getting more comfortable performing complex tasks such as making purchases with their voice assistants, for the most part consumers rely on voice assistants to do simple, mundane things such as checking the weather. Many businesses confine their commitment to voice to making their content more findable through voice search. And voice-enabled SEO is crucial.

But for businesses to do more sophisticated branding and advertising through voice, they need to feel confident that consumers will start responding by having rich dialogues with the brand, leading to commerce. As more businesses realize the ways voice technology can assume a personality, they will adopt more forms of sonic branding as KFC did with its Col. Sanders voice-based experience cited in this post.

Thanks to improvements in artificial intelligence, voice-enabled devices are in fact, getting smarter and more capable of managing purchases and product orders. Frankly, the market got flooded with smart speakers such as Amazon Echo and Google Home before AI was adequately advanced to make a voice-activated speaker as smart as we’d like them to be. Those days are rapidly drawing to a close, which is good for businesses and consumers.

The next big step in the evolution of a voice-first world is for voice to be more user friendly. And developments such as the Samuel L. Jackson skill are an important part of that evolution.

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Google Fights Amazon through Location-Based Advertising

Google Fights Amazon through Location-Based Advertising

Google

Amazon is gunning for Google. A recently published report by Forrester says that Amazon Advertising will have a break-out year in 2020, leveraging its popularity as a search platform to make its booming online advertising business an even bigger threat to Google than it is. Currently, Amazon is the third-largest online advertising platform – still far behind Google and Facebook in terms of market share, but rapidly growing.

But Google has many cards to play, and strengthening its advertising services at the local level is a big one.

Location-Based Digital Advertising Is Big Business

Location-based digital advertising is big business, as brick-and-mortar establishments capitalize on increasingly prolific tools such as search and display to attract customers. As well they should: in 2018, Google reported that the number of “near me” searches on Google has risen by 500 percent over a period of two years, meaning an explosion of searches for people seeking things to do, places to go, and purchases to make near their location. Google has seen an opportunity to monetize that kind of search behavior and acted on it.

How Google Is Developing Location-Based Advertising Tools

Here are some examples of Google products for businesses to use in order to attract those near me searches to their locations:

  • Promoted Pins. Google is barely scratching the surface for using Google Maps as an advertising platform. I mentioned local search ads on Google Maps above. But that’s not the only way to advertise there. Businesses can also use tools such as Promoted Pins, which are visually appealing markers that make a business’s location stand out. Earlier in 2019, Bloomberg discussed how Google is evolving Google Maps with more advertising tools. Especially as more cars integrate mapping technology, Google is going to place even more advertising emphasis here.
  • Location extensions.These make it possible for a business to show an address, phone number, and a map marker along with its ad text. There are two types of these extensions: Google Ads location extensions help people find a location by showing ads with address, a map to a location, or the distance to a business. And Affiliate location extensions help people find nearby stores of a retail chain that sell your products. Per Google, the Affiliate location extensions tool is useful if you sell your products through retail chains and want to reach consumers when they are deciding what and where to buy.
  • Google My Business. Google My Business (GMB) is the central repository for a company’s locations. Technically being on GMB is an organic play, and your GMB listing is crucial. It’s really like a second website. When businesses claim a GMB listing for a location, they can enrich it with location information, deep content describing their business, visual information, customer Q&As, and reviews. GMB is actually the most important local ranking signal on Google. But note the tie-in to advertising. Google allows a business to link its GMB to its online advertising via the location extensions I mentioned above. Doing so makes a business’s GMB an even more powerful tool to attract customers.
  • Local Services by Google. Google launched this offering to help businesses such as plumbers and contractors that provide services at a customer’s location. Businesses that participate in the program have their ads appear above search results (even paid search results). The compensation model is pay per lead, meaning that the advertiser pay only for leads resulting from the ad as opposed to clicks. Local Services ads complement paid search.

These and other location-based advertising tools will give Google a strong base to fight Amazon in 2020. Google has an already vibrant advertising business. Google didn’t become the leading online platform by sitting still. About half of all Google searches stay on Google properties, meaning people searching for things find what they need from search results without clicking through to a website. In 2020, look for Google to further monetize this ecosystem through local advertising.

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