How Video Ad Standards on Google Chrome Are Changing in 2020

How Video Ad Standards on Google Chrome Are Changing in 2020

Google

Get ready for a world with fewer intrusive video ads.

On February 5, Google announced that video ads deemed to be intrusive will stop appearing on Chrome beginning August 2020. Chrome will stop showing all ads on sites in any country that repeatedly show the following kinds of video ads:

  • Long, non-skippable pre-roll ads or groups of ads longer than 31 seconds that appear before a video and that cannot be skipped within the first 5 seconds.
  • Mid-roll ads of any duration that appear in the middle of a video, interrupting the user’s experience.
  • Image or text ads that appear on top of a playing video and are in the middle 1/3 of the video player window or cover more than 20 percent of the video content.

These restrictions apply to short-form video content defined as eight minutes or less in length.

Why Google Announced a Change

You might be wondering why Google identified those specific ad formats. Google is following recommendations from the Coalition for Better Ads, the organization responsible for the Better Ads Standards that inform companies such as Google on user feedback about ads that work and ads that do not. On February 5, the Coalition for Better Ads announced the recommended changes to video ad formats based on research from 45,000 consumers globally. According to the Coalition for Better Ads:

The research found strong alignment of consumer preferences across countries and regions for the most- and least-preferred online ad experiences, supporting the adoption of a single Better Ads Standard for these environments globally. The Coalition’s Better Ads Standards identify the ad experiences that fall beneath a threshold of consumer acceptability and are most likely to drive consumers to install ad blockers. More than 100,000 consumers have participated to date in the Coalition’s research to develop its set of Better Ads Standards.

As a result, Google said that starting August 5, 2020, Chrome will stop showing such ads on sites. Google also said that it will review YouTube video content for compliance with the standards. In addition, “Similar to the previous Better Ads Standards, we’ll update our product plans across our ad platforms, including YouTube, as a result of this standard, and leverage the research as a tool to help guide product development in the future.”

Note that the standards for short-form video do not apply to other environments like feeds or over-the-top (OTT).

What You Should Do

Change is coming. It’s time to prepare:

  • Per Google, if you operate a website that shows ads, consider reviewing your site status in the Ad Experience Report. This is a tool that helps publishers understand if Chrome has identified any violating ad experiences on your site.
  • Review your YouTube game plan. YouTube will be affected by the blocking of midroll ads but not the other two types identified above.
  • Ask your ad agency how they will ensure that ads they create are compliant.

At True Interactive, we are monitoring this development closely and are well prepared to help our clients thrive in this new environment. We manage video ads all the time and understand how to ensure compliance.

Contact True Interactive

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

Google to Stop Supporting Third-Party Cookies on Chrome: Advertiser Q&A

Google to Stop Supporting Third-Party Cookies on Chrome: Advertiser Q&A

Google

Recently Google announced that over the next few years, it will stop supporting third-party cookies on Chrome. With Chrome currently accounting for more than half of all installed web browsers, this is big news. It follows actions by Apple and Mozilla to block tracking cookies in Safari and Firefox respectively, too. In light of this news, we’ve answered some questions you may have. A big caveat: this is an evolving story, and one being played out over the next two years. A lot can happen yet. That said, here’s what we know:

What Exactly Is Google Doing to Third-Party Cookies?

Google announced that over the next two years, it will not support third-party cookies on its Chrome browser. Let’s break down what this means:

  • A third-party cookie consists of text stored in a person’s computer that is created by a website with a domain name other than the site a visitor is visiting.
  • Third-party cookies make it possible for an advertiser to track a person’s browsing history and, in theory, serve up more personalized ads that follow a person around the web.
  • Typically web browsers allow third-party cookies.

But over the next few years, Chrome will replace third-party cookies with browser-based tools and techniques aimed at balancing personalization and privacy. So, third-party cookies are going away from Chrome – but that doesn’t mean advertising is. Far from it.

Google said it will replace third-party cookies with a (vaguely defined) browser-based mechanism as part of a new “Privacy Sandbox.”  The Privacy Sandbox is an evolving and (equally vague sounding) “secure environment for personalization that also protects user privacy.” Google describes the Privacy Sandbox an “open source initiative is to make the web more private and secure for users, while also supporting publishers.” In an August 2019 blog post, Google said the Privacy Sandbox would be a place to collaborate on better ways to provide relevant ads while protecting personal privacy:

Some ideas include new approaches to ensure that ads continue to be relevant for users, but user data shared with websites and advertisers would be minimized by anonymously aggregating user information, and keeping much more user information on-device only. Our goal is to create a set of standards that is more consistent with users’ expectations of privacy.

The unplugging of support for third-party cookies looks like a way for Google to get the industry to start playing in its Privacy Sandbox, resulting in a mechanism that will replace the cookie, protecting user privacy while also supporting advertisers. No one knows what that mechanism is going to look like yet.

Why Is Google Going to Stop Supporting Third-Party cookies in Chrome?

Google says it’s trying to balance personalization and privacy. Google’s stated objective is to create “a secure environment for personalization that also protects user privacy.” In announcing the change, Google said, “Users are demanding greater privacy–including transparency, choice and control over how their data is used — and it’s clear the web ecosystem needs to evolve to meet these increasing demands.” At the same time, Google wants to make it possible for businesses to continue to offer personalized content. Google intends for the still-evolving browser-based mechanism envisioned by Google to do that.

How Will Ads Be Affected?

If you use a Google ad products, you will not be affected. Google will still be able to use data from its own search and other properties to target ads to people. But once Google phases out third-party support, you won’t be able to use third-party cookies to follow users around on Chrome and retarget with an ad them after they’ve visited your website.

How Has the Industry Reacted?

The move has received a mixed response.

Some critics point out that phasing out third-party cookies on Chrome is a cynical play to strengthen Google’s ad business because Google’s ability to use data from its own search and other properties to target ads to people remains unaffected.

Others have speculated that the change will make obsolete many tools that advertiser have been relying on. As Adweek noted,

Marketers wary of the industry’s reliance on Google will have to figure out how they can adapt their first-party data strategy as some of the de rigueur marketing tools of recent years are rendered redundant in most internet browsers. These include third-party data and data management platforms, and multitouch attribution providers, all of whose days would appear to be numbered (at least in their current guise), as third-party data has been a critically important part of how marketers shape their communications strategies with consumers for close to 25 years. For instance, Procter & Gamble, one of the industry’s largest-spending advertisers, this week effused over its frequency capping efforts at the National Retail Federation’s annual conference.

The Association of National Advertisers and American Association of Advertising Agencies issued a joint statement that said, “We are deeply disappointed that Google would unilaterally declare such a major change without prior careful consultation across the digital and advertising industries. In the interim, we strongly urge Google to publicly and quickly commit to not imposing this moratorium on third-party cookies until effective and meaningful alternatives are available.”

In fact, it’s possible that backlash will cause Google to reverse its course. A lot can happen in two years.

What Should Advertisers Do?

We reached out to Google to find out what near-term steps businesses need to take. Here’s what Google says:

First, you don’t need to do anything with your Google ad products. Google will be updating the cookies that Google sets and accesses for our advertising products prior to the deadline

Google recommends that you:

  • Confirm with your own engineers that they have conducted testing on your sites to assess impact and are updating any third-party cookies they control. It is important to also check non-ads use cases (e.g., logins, shopping cards).
  • Confirm with your vendors (ads and non-ads) that any cookies they set and access on your sites will be updated.

This is an evolving situation. We recommend keeping a close watch. At True Interactive, we’re following the situation closely and will be ready to help our clients sense and respond.

Contact True Interactive

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

 

Why Super Bowl 2020 Ads Humanized Voice Assistants

Why Super Bowl 2020 Ads Humanized Voice Assistants

Advertising Amazon Google

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.

Contact True Interactive

To make online advertising work for you, contact True Interactive. We’re an independent agency that optimizes branded interactions to drive traffic and increase sales.

Photo by Status Quack on Unsplash

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.

Contact True Interactive

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

What Is DuckDuckGo? Advertiser Q&A

What Is DuckDuckGo? Advertiser Q&A

Advertising Marketing

Part of the price of being popular is being a target. And as we enter 2020, Google is certainly a big target for privacy advocates, who are uncomfortable with the amount of personal data that the master of the search world collects. And when privacy advocates talk about Google, they mean more than Google.com – there’s also Google Maps, YouTube, and a host of other Google-owned properties to consider. Amid the ongoing discussion about Google’s size and reach, search engine DuckDuckGo has emerged as an alternative for privacy advocates. DuckDuckGo is cast as an underdog and defender of personal privacy, partly because of how the company positions itself (“privacy, simplified”) and partly because of DuckDuckGo’s operating model (DuckDuckGo does not store personal information, follow users around with ads, or track users).

What, exactly, is DuckDuckGo, and how big is it? Let’s tackle these and other questions we’ve been getting from clients.

What Is DuckDuckGo?

Founded in 2008, DuckDuckGo is a search engine whose claim to fame is protecting user privacy. DuckDuckGo does not store IP addresses or log user information; and DuckDuckGo uses cookies only when required. The search engine also markets itself with a bit of cheek (according to its website, “At DuckDuckGo, we don’t think the Internet should feel so creepy and getting the privacy you deserve online should be as simple as closing the blinds”) and defiance (“Too many people believe that you simply can’t expect privacy on the Internet. We disagree and have made it our mission to set a new standard of trust online”).

Think of DuckDuckGo as an alternative search engine for those who want to maintain a brick wall of privacy between themselves and the digital world when they search.

How Big Is DuckDuckGo?

DuckDuckGo accommodates 1.5 billion searches a month with nearly 15 billion searches conducted in 2019. By contrast, in 2019, Google accommodated 2 trillion searches a day. Although DuckDuckGo is tiny by comparison, the search engine is growing. Those 15 billion searches represent a 60 percent increase over 2018 (9.2 billion) and nearly a tripling of 2017 searches (5.9 billion). Clearly, DuckDuckGo is catching on – with a small segment of the population, yes, but a growing on.

How Does DuckDuckGo Make Money?

DuckDuckGo makes money through advertising and affiliate marketing. Just because DuckDuckGo protects your privacy, it doesn’t mean DuckDuckGo offers ad-free search results. If a user searches for, say, “vinyl records near me,” DuckDuckGo returns advertisements based on the keyword search. But DuckDuckGo does not track or use a person’s data after the search is completed. In addition, DuckDuckGo earns affiliate marketing revenue from sites such as from Amazon and eBay. When users buy something on those sites after reaching them through DuckDuckGo, DuckDuckGo collects a commission. For more insight about advertising on DuckDuckGo, check out this link from the company.

Is DuckDuckGo Reliable?

Your mileage may vary. The search engine has been called out for lacking certain functionality available on Google and Bing, such as custom date ranges. And to be sure, Google provides an interconnected universe of properties (Google.com and Google Maps being a good example). But DuckDuckGo is building out its functionality. For instance, you can do location-based searches through an integration between DuckDuckGo and Apple Maps. The best way to test it is to try it.

Should I Advertise on DuckDuckGo?

Businesses with a limited budget should focus on the properties where they’ll get the most bang for the buck, and without question there are bigger alternative such as Google and Bing that provide much more ad visibility. One of DuckDuckGo’s challenges is that the site itself requires a bit of word of mouth for people to find. But that said, businesses might want to consider DuckDuckGo for discretionary ad spend targeting a smaller privacy-conscious segment of the population.  According to research from SimilarWeb, loyal users of DuckDuckGo love tech, and they use DuckDuckGo as an alternative because they’re concerned about having their privacy protected while they search online. If that’s the type of audience for you, consider DuckDuckGo.

Contact True Interactive

To make online advertising work for you, contact True Interactive. We’re an independent agency that optimizes branded interactions to drive traffic and increase sales.

8 Digital Advertising Predictions for 2020

8 Digital Advertising Predictions for 2020

Advertising

Google takes control of advertising. More businesses feel the heat over consumer privacy. Voice search gets smarter. These are among the trends influencing digital advertising in 2020, according to True Interactive. Here’s a sample of what’s on our minds:

1 Google Takes Control of Advertising

Google is taking away manual control of Google Advertising with the removal of the average position metric and by continuing to implement automated bidding tools and metrics such as top impression share that make measuring search ranking less transparent. As a result, CPCs are going up.

Going forward, Google will continue to push automated bidding strategies. Google’s rationale is that its algorithms are smarter, making it possible for Google to adjust bids per auction. But smarter bids are not necessarily less costly ones in the short term, and there is still much trepidation by marketers in handing total control over to Google, who stand stands to profit from an increase in CPCs and overall spend. Bottom line: as Google continues to make manual bidding more challenging, advertisers will be forced to buy into automated bidding with less transparency.  Expect CPCs to increase at least in the short term as businesses hand more control over to Google.

— Beth Bauch, senior manager

2 The CCPA Throws Down the Hammer on Big Tech

By July 2020, we will see the first major lawsuit against one of the big technology firms – likely Facebook or Google – over a violation of the California Consumer Privacy Act (CCPA). The CCPA, which goes into effect January 1, is evolving. Businesses are still figuring out its vagaries and requirements. Google and Facebook are in interesting and vulnerable position because they touch so much audience data for businesses, increasing their risk level. And we know Facebook’s track record for privacy violations, don’t we? Watch for it: a major lawsuit will happen that forces businesses to come to terms with the CCPA.

— Tim Colucci, vice president

3 Netflix Adopts Advertising

Netflix will need to adopt some form of advertising. Netflix has achieved phenomenal growth, to be sure. But the entertainment company also faces unprecedented threats with Disney+ and, eventually, Apple+ once Apple figures out a long-term strategy that works. (Apple has a lot of cash and time to get Apple+ right. Just wait.)

In addition, the cost of creating content is putting Netflix in an interesting bind: when Netflix has a hit show, it has to spend more money to accommodate audience demand, creating even more costs. On top of all that, for the first time in a long time, Netflix has reported drops in membership levels.

Netflix will likely introduce a less-expensive ad-based model, but the company will also do something it has avoided pursuing: product placements in shows like Stranger Things, which popularized brands such as Kellogg’s Eggos without earning Netflix a dime in return. Those days will come to an end as Netflix responds to pressure from investors to cover its costs and respond to the threat of Disney.

— Héctor Ariza, manager

4 Voice Search Gets Smarter and More Useful

I’ve written often about the rise of voice search, and I continue to see more people using their voices to find things with their smart speakers, phones, and in-car devices. But what’s changing is that people are getting more comfortable buying things, not just searching for things, with their voices. That’s happening because as we get accustomed to the ease of using our voices to manage our lives, we are gradually becoming more comfortable accomplishing more complex tasks. In addition, thanks to improvements in artificial intelligence, voice-enabled devices are 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.

— Taylor Murphy, manager

5 Google Monetizes Maps and Google My Business

We recently blogged about the fact that half of searches on Google stay on Google properties such as Google Maps, YouTube, and a business’s Google My Business (GMB) listing. In other words, half of searches are not resulting in clicks on a business’s website. In addition, Google My Business is the most important local search signal according to the Moz Local Search Ranking Factors. These data points mean that businesses need to invest more time and energy maximizing the value of their presence on Google. Google knows this reality and is getting more aggressive about offering advertising products for businesses on these sites. 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. I also expect Google to provide more advertising options for businesses to promote themselves on their GMB listings. I also would not be surprised If Google introduces a premium version of GMB in which businesses will enjoy more features for a cost.

— Mark Smith, co-founder

6 Cause Marketing Faces a Reckoning

Cause marketing has been around for years. Businesses have learned they can create stronger emotional ties with customers and job seekers by associating themselves with a topical issue such as sustainability. In 2019, businesses were falling all over themselves to promote a position on sustainability as the topic reached all-time levels of public awareness. But there’s just one hitch: we’re seeing a glut of cause marketing campaigns, and they’re not necessarily connecting with consumers. I was reading a recent report from DoSomething Strategic that discusses how businesses have struggled to make their cause marketing connect with young people. Gen Z definitely wants to associate with purpose-driven companies. But businesses still have a lot of work to do in order to convince them that they’re aligned with Gen Z values. Businesses are going to become more careful about how they do cause marketing. I believe we’ll see fewer online ads and a more thoughtful use of content marketing, PR, social media, and native advertising in which a business can spend more time having a longer-term discussion about issues it cares about. Businesses will humanize these conversations by sharing their position through the voices of their people.

— Kurt Anagnostopoulos, co-founder

7 Agile Advertising Takes Hold

We all know about real-time marketing, in which a brand uses social media to turn a news event into a marketing opportunity. Agile advertising occurs when a business acts on a recent event and creates a connected marketing experience that endures well beyond a single tweet, Facebook post, or other digital impression. We saw Bud Light exercise agile advertising during the World Series when it capitalized on the fact that a fan in the stands stopped a home run ball with his chest while holding two Bud Lights in his hands. Bud Light created a series of marketing moments including creating a branded T shirt depicting the fan stopping the home run ball. Bud Light paid the fan to attend another World Series game sporting the Bud Light attire. We also saw agile advertising in action when Aviation Gin created a slick ad online that gently made light of the controversial Pelton cycling ad. I see more businesses adopting this practice because the digital production tools have evolved to the point where talented storytellers can quickly conceive of an idea and get it into market with an ad that taps into current events and endures for days and weeks.

— Max Petungaro, associate

8 Hispanic Marketing Hits Its Stride

In the United States, 69 counties are majority Hispanic, doubling from 34 in 2010. Hispanics have increased their economic power, reflecting a growingly diverse U.S. population. In 2020, Hispanics will possess $1.7 trillion in buying power. The United States continues to reflect Hispanic tastes in all aspects of our culture (including and beyond the Hispanic community, ranging from movies to popular music). We’re going to see businesses apply research and targeting to do more effective, sophisticated Hispanic marketing that recognizes the diversity and tastes that reside among Hispanics. Brands are already capitalizing on this growing market. (For more insight about marketing to Hispanics, check out our blog post.) And tech companies such as Google are responding to a more multicultural world in general by making their platforms more open to people who speak languages other than English, an example being how the Google Assistant voice software can interpret 44 languages on smart phones. These types of developments will help bridge the world between businesses and Hispanics in 2020.

— Amanda Cortese, associate

Contact True Interactive

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

 

 

 

 

Photo by Diego Jimenez on Unsplash