2021 Advertising and Marketing Predictions from True Interactive

2021 Advertising and Marketing Predictions from True Interactive

Advertising

If 2020 had a few surprises up its sleeve, the year certainly set the stage for 2021. In the months ahead, businesses are poised to transition more boldly to a digital-first economy, which includes a more seamless approach to e-commerce and increased opportunities for engaging with people through immersive experiences such as e-sports. At the same time, businesses will continue to navigate an increasingly complicated consumer privacy landscape. All those trends, and others, will influence the uptake of digital advertising and marketing in 2021. Read on for our fearless predictions for the year:

E-commerce Grows Up

We’ve all heard the same statistic bandied about: in 2020, the pandemic accelerated the shift to e-commerce by five years, according to IBM. But that doesn’t mean the acceleration went smoothly. As we saw during the holiday season, the surge in online commerce has exposed cracks in the seams for many retailers. Sellers struggled with a variety of issues ranging from stocking items properly to following through with orders. Going into 2021, these challenges are forcing companies to integrate all their processes (online, in store, shipping logistics, etc.) more seamlessly. Larger retailers such as Target and Walmart have already successfully expanded services such as curbside pick-up, which make it possible for shoppers to buy online and pick up merchandise at the store without needing to go inside. Going forward, they’ll follow Amazon’s lead and invest more in their own shipping and delivery services to own the order fulfillment process (Target and Walmart already have them – they’re still refining them, though). As we have seen during the holidays, the strain on shipping services such as FedEx and UPS is becoming unacceptable to retailers, and if they lack the resources to build out their own delivery services, they will partner with businesses such as InstaCart.

In addition, learning from the events of 2020, retailers will likely become more nimble in their approach to advertising and supply chain management in order to adapt to quickly changing shifts in consumer demand. They’re going to do a better job using tools such as Google Insights to adapt their campaigns to consumer behavior. The key will be to ensure their supply chain processes are as nimble.

— Kurt Anagnostopoulos, co-founder

Rough Sledding for Facebook

It may be rough sledding ahead for Facebook in 2021. Do a quick Google News search for Facebook and you will see a slew of articles depicting the challenges the social media giant currently faces. At the top of the list? News that more than 40 attorneys general and the U.S. government are expected to sue Facebook for alleged antitrust violations. And while Mark Zuckerberg has routinely appeared at congressional hearings addressing concerns of privacy, misinformation, and censorship, this latest lawsuit might be a final awakening for businesses who use Facebook as an ad platform.

Adding to Facebook’s already uphill battle is the release of the Netflix documentary, The Social Dilemma, which explores the dangerous human impact of social network platforms as told by tech experts who expose secrets behind their own creations. Many media outlets reported a wave of people canceling their social media accounts after viewing the documentary. Of course, Facebook has slammed the documentary, claiming it’s full of misinformation, but is the damage already done? Even if the documentary did not get all the details right, it has undeniably affected public perception of social media platforms. And if even a fraction of current users de-activate their accounts, this will absolutely have a negative impact on audience size available to advertisers. More importantly, with the continued negative publicity surrounding the biggest social media platforms, are businesses really going to want to ramp spend on Facebook and Instagram? My prediction is no. After a crazy year filled with pandemic fears and general social unrest, I do not believe businesses are looking to invest in platforms embroiled in controversy. And if media spend is pulled from some of the social media giants, it may leave the door open for other search engines or community-based ad platforms to emerge. Stay tuned!

— Beth Bauch, director, digital marketing

Walmart Gains Ground as an Ad Platform

The Walmart marketplace is still very much in its infancy. I believe that 2021 will lead to exponential growth of Walmart’s advertising services, and the company will become more competitive with Amazon in this regard. The current platform is still very small scale and, technically, still in beta or just out of it. Many larger advertisers have not been invited to join the Walmart marketplace because it is still so brand new. I believe that Walmart will enjoy a large jump in advertising on their app and site Q1-Q2 2021.

— Tim Colucci, vice president, digital marketing

Augmented Reality Takes Hold

I think in 2021 we will see more brands invest money into creating virtual experiences for their customers. Augmented reality (AR) was already becoming popular before the onset of COVID-19, but now, given the urgency to shop online during the pandemic, consumers are missing the in-store experience of physically trying on items. And retailers are responding with AR: Warby Parker, for example, has created a virtual try-on for their glasses via their app. My glasses broke this weekend, and instead of going to a Warby Parker store to try on different frames, I could use their app to see what the glasses would look like on me, and felt more confident ordering online. Another brand capitalizing on the opportunities inherent in AR? A make-up line called NARS. They allow you to experiment with their products, such as blush and eye shadow, through a virtual try-on feature. Overall, I think more retail brands will create virtual shopping experiences for their customers in 2021.

— Taylor Hart, senior digital marketing manager

E-sports Dominates

The world of e-sports is never one to stop changing. With e-sports accumulating a total revenue that reached more than $1 billion in 2020 (a $150 million increase from 2019), we can only expect that to continue to rise in 2021. Given the ongoing global pandemic and application of stricter stay-at-home rules, more and more people will turn to e-sports as another form of entertainment. It all starts with streaming services that allow e-sports players to become household names in the gaming industry. Giving these players an opportunity to reach tens, potentially hundreds of thousands of viewers without leaving their home is something advertisers can only dream of. Players will do sponsored streams, with designated ad reads to be presented at certain points during the broadcast. The NFL is also getting involved with Twitch (the biggest live streaming platform), getting some of the big name streamers (e.g., NICKMERCS and TimTheTatman) to watch Thursday Night Football on stream with various advertisers as sponsors. Watch for more professional sports and entertainment services to follow in the footsteps of the NFL and try to reach this large, somewhat untapped market.

— Max Petrungaro, digital marketing associate

Privacy Dominates the Executive Agenda

For years, CEOs and CMOs have treated consumer privacy as a problem for their information technology teams to worry about. No longer. Privacy is rapidly becoming a C-level problem that can damage a company’s reputation if managed poorly. A variety of forces have elevated the importance of privacy in the United States. First off, the state of California rolled out a tough privacy act, the California Consumer Privacy Act, in January 2020, and then made the law more strict in November. Because California is one of the world’s largest economies and is a bellwether state, what happens there will influence how other states treat consumer privacy. In addition, the big technology firms are already under close scrutiny, and the new presidential administration is likely to take an even closer look at their privacy practices.

Speaking of the tech giants – their actions are casting a spotlight on privacy. As widely reported, Facebook has launched a public campaign attacking Apple’s privacy iOS 14 updates, which are going to make it harder for Facebook and other platforms to target users with ads. Meanwhile, Google continues to move forward with its plans to stop supporting third-party cookies on the Chrome browser by 2022 – an action that continues to reverberate across the ad industry. In 2021, businesses will face a year of transition as they navigate an increasingly complicated consumer privacy landscape. The challenge involves more than reacting to changes in legislation and cookie tracking technology; advertisers also need to stay on top of emerging tools such as Verizon Media’s ConnectID, designed to manage ads without the use of third-party cookies. School will be in session constantly.

— Mark Smith, co-founder

More Social Shopping

With the world of online shopping expanding in 2020 due to the pandemic, I predict that 2021 will bring new ways to shop across social. Instagram has already released its e-commerce store to elevate shopping online. I predict that the platform will continue to refine its online shopping tools, even as more social networks follow Instagram’s lead and create additional opportunities for shopping right from consumer smart devices.

— Bella Schneider, digital marketing manager

Online Video Explodes

Online video is going to explode as the number of streaming services expands. I believe we are also going to see a cheaper, monthly subscription option (akin to the base Hulu subscription) that includes video ads as a way to subsidize lower-cost services. It is rumored that HBO Max will offer this option, but I believe we will see similar offerings from Peacock, Disney+/Hulu (which I believe will be combined at some point . . . in 2021?), and Amazon Prime. I think the opportunity for more ad space is going to be too good to pass up as more and more consumers cut the cord OR sign up for multiple streaming services. In addition, I believe we will see other live TV options becoming available from streaming services: cord cutters will still have the opportunity for live TV . . .  plus the ad space that goes along with it.

— Tim Colucci, vice president, digital marketing

Contact True Interactive

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

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The Holiday Shopping Season Delivers Early Lessons for Retailers

The Holiday Shopping Season Delivers Early Lessons for Retailers

Retail

The holiday shopping season is in full swing now. Granted, it’s a looking a lot different than it did in years past, with the pandemic influencing consumers’ moods and their shopping habits. But already, some important lessons are emerging that may affect retailing all year-round:

  • Online retailing is bigger than ever. During Thanksgiving Weekend, shoppers broke records for online purchases, with Cyber Monday 2020 becoming the biggest online shopping event ever in the United States. In addition, Black Friday broke a record for most online sales. Although e-commerce was already booming in 2020, it was not certain that Black Friday and Cyber Monday would be this big. Retailers such as Walmart, had been spreading out Black Friday sales online going back to early November, which raised the question of whether those sales might cannibalize the “real” Black Friday occurring November 27 this year. There was no need for worry.
  • Thanksgiving Day is turning into a huge shopping event. According to Adobe Analytics, Thanksgiving Day spending online rose by nearly 22 percent year over year to $5.1 billion, hitting a new record. Businesses that advertised Thanksgiving Day deals online probably benefitted from the fact that many big retailers closed on Thanksgiving Day, reversing a growing practice of launching Black Friday deals in stores on a day when families normally would be gathering to eat turkey and watch football. But Thanksgiving Day 2020 was different. People visited less with families and friends given the safety risks of in-person gatherings. Apparently, they had more time on their hands to go online. And they shopped.
  • Brick-and-mortar stores still matter. Even amid the pandemic, 124 million Americans shopped in stores over Thanksgiving weekend, according to the National Retail Federation (NRF). But offline stores got less foot traffic – down 52 percent from 2019. Stores offering curbside pickup saw traffic increase by 52 percent, according to Adobe. The lesson for brands is to ensure that your digital advertising and organic content plays up the availability of options such as curbside pickup, as well as clear instructions for how to use curbside.
  • Mobile keeps growing. Shopping on smartphones rose 25 percent to $3.6 billion, making up 40 percent of total online spending on Black Friday. But people are using mobile in different ways now – searching and purchasing online but also booking curbside pick-up services offline. All told, cross-channel shoppers – those who visited websites and brick-and-mortar stores — spent an average $366.79 over the holiday weekend, which exceeded by 25 percent the spend generated by people who shopped in a single channel, according to the NRF. Stores that integrate a complete cross-channel mobile experience are in the driver’s seat.

What Businesses Should Do

Retailers need to be nimble. They need to plan ahead for the holiday season as they’ve done in the past, but they also need to be ready to adapt to changing consumer behavior. For example, it’s clear now that Thanksgiving has arrived, but only retailers that paid attention to shopping trends and adapted their online advertising strategies benefitted from that shift. In addition, consumers have shown a remarkable penchant for suddenly wanting to buy products ranging from chess sets to puzzles in 2020, as they manage the realities of social distancing. But how many retailers adapted? Fortunately, tools such as Google Insights help advertisers monitor changes in consumer behavior and adjust their advertising strategies accordingly.

Contact True Interactive

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

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Why Facebook Acquired Kustomer

Why Facebook Acquired Kustomer

Facebook

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

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

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

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

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

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

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

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

What Businesses Should Do

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

Contact True Interactive

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

No More Shopping Stampedes: How Black Friday Is Changing

No More Shopping Stampedes: How Black Friday Is Changing

Retail

Black Friday is changing radically in 2020.

A Google-commissioned Ipsos survey found that 74 percent of U.S. shoppers said they plan to shop online more than they have done in previous seasons. And people who shop in stores will rely on services such as curbside pickup to limit their contact with other people. In response, retailers are taking a hard look at their Black Friday experience.

Retailers Reinvent Black Friday

Consider what some of the heavy hitters are doing to re-imagine what Black Friday means during a year when many people simply don’t want to go into stores.

As noted in RetailWire, “Walmart has long been one of the retailers noted for performing at a high level when facing down natural disasters and economic tumult.” The retail monolith’s response to Black Friday is no exception. As reported by CNBC.com, Walmart is taking an innovative approach, staggering three holiday sales events through the month of November. Each sales event will begin on the Walmart website. Brick-and-mortar stores will continue the sales a few days later, after some demand has presumably been satisfied online (thus mitigating crowds). On the holiday sales days, stores will open at 5:00 a.m. local time. Shoppers will encounter COVID-era precautions: single-file lines; limits on the number of shoppers inside at any given time; sanitized shopping carts; and store “health ambassadors,” who will greet shoppers and remind them to wear a mask. Bargain hunters who prefer to bypass in-store shopping can shop online, or take advantage of Walmart’s curbside pickup.

As Scott McCall, executive vice president and chief merchandising officer for Walmart U.S., shared in a news release, “By spreading deals out across multiple days and making our hottest deals available online, we expect the Black Friday experience in our stores will be safer and more manageable for both our customers and our associates.”

Walmart’s not the only one to re-think what Black Friday looks like this year. Many other retailers have announced that they are redefining the traditional in-store Black Friday sales as a digital experience that occurs over days, weeks, or even months. Home Depot set the tone early, announcing in September that Black Friday prices would be available throughout the entire holiday season, both online and in-store. Though a few “unique deals” are planned to launch later in the season, the store is orchestrating a campaign that consciously sidesteps that single day of crowded, feverish shopping.

Retailers are also capitalizing on opportunities like Amazon Prime Day to generate a surge in sales that businesses often associate with Black Friday. This year’s event ran for two days, October 13 and 14, during which marketplace sellers netted $3.5 billion+. Third-party merchants on Amazon generally reported good results. As noted in practicalecommerce.com, along with the increased sales came increased advertising costs. At the same time, the results speak for themselves: for one of our clients, we secured 44 percent more revenue and a 33 percent increase in return on ad spend on Prime Day — with only an 8 percent increase in advertising costs. We were happy with the outcome, as our client was.

Shipping during the 2020 Holiday Season

As retailers respond to a changing retail landscape, they must also face the reality that with a surge in online ordering throughout November comes the potential for shipping delays as businesses send more packages. More packages being delivered puts more of a strain on shipping services – and possibly a strain on retailers’ fulfillment capability. On the other hand, FedEx has said it is hiring 70,000 seasonal workers to manage an expected surge, and bellwether retailers such as Target are hiring aggressively to ensure they can handle the increased volume in online orders.

What Should You Do?

How do you plan to stay competitive during an unprecedented year? We recommend:

  • Don’t wait for Black Friday to promote your holiday deals. Activate your display advertising, search marketing, and paid social media programs now.
  • Consider creating events of your own. Don’t worry about creating a blowout on the scale of Amazon’s Prime Day. Instead, take a page from Walmart’s book and ask yourself how you might create your own “Black Friday” digital events. Learn from the bellwether brands!
  • It goes without saying, on the operational side, prepare yourself for the expected uptick in orders. Assuming you have done so, promote any deals you’re offering on shipping (something we’ve blogged about here). In addition, set expectations with your customers. Let them know that waiting until the last minute to order and ship may incur additional delays this holiday season in particular.
  • Be mindful of tone in everything you do. People want to shop, yes—but as we’ve blogged here, they are also under stress. Many shoppers will be ordering gifts for loved ones from whom they will be socially distanced this holiday—and feeling a sense of loss as they do so. Others may be overwhelmed by COVID-19 news: fearful of a spike in the virus, or a lockdown of stores and businesses. Be sensitive to these anxieties in your messaging.

Contact True Interactive

In a year like 2020, even traditions like Black Friday are going to look different. We can help you maximize digital and rise to the occasion. Contact us.

Photo by Justin Lim on Unsplash

Convenience Is King This Holiday Shopping Season

Convenience Is King This Holiday Shopping Season

Advertising

This is going to be a different holiday season. Many shoppers will be planning for holidays apart from their extended families and friends as they practice social distancing. And shopping itself will look different: consumers will likely be very careful about going into brick-and-mortar stores. As a result, shoppers will seek convenience. We’ve blogged about the importance of customer-friendly shipping in the past; this year, as consumers order gifts for shipping abroad to their socially distanced loved ones, convenient and cost-effective shipping will be more important than ever. Shoppers will also rely on services such as curbside pickup that make it easier to purchase gifts without needing to go into stores. It’s important that retailers adapt online holiday advertising strategies accordingly.

Rise of Convenience

Signs are everywhere that shoppers will place a heavy emphasis on convenience:

  • Retailers from Home Depot to Macy’s are downplaying Black Friday, focusing instead on spreading out holiday deals over a period time. This is a big shift: no longer will customers be expected to queue up in front of physical stores on retailers’ timetables. It’s simply not safe to do so.
  • Instead, retailers are stressing their ability to manage—and support—how people want to shop on their own terms. For example, Walmart has launched Walmart Plus, a new subscription service through which the retailer, among other things, manages delivery of purchases. For $98 a year, participating consumers receive in-store and online benefits like unlimited free delivery. The service, a direct competitor to Amazon Prime, demonstrates how retailers can pivot to meet customer needs during a year of radical change.
  • We also see retailers expanding their curbside pickup services, which makes it possible for shoppers to minimize in-store shopping while still getting what they want on their own timetable. As noted in eMarketer, curbside pickup is booming: “We now expect US click-and-collect ecommerce sales to grow to $58.52 billion, up 60.4% from our initial forecast of 38.6% growth.”

What Retailers Should Do

There are steps retailers can take to stay competitive during a holiday season shaped by an unprecedented year. What do we recommend?

  • First off, start now to advertise your holiday sales. Why? Because people are probably shopping earlier to accommodate more time to ship things. eMarketer recommends capturing accelerating holiday traffic by setting suitable budgets, not to mention competitive targets, for Smart Shopping campaigns and Smart Bidding.
  • But don’t just promote merchandise. Promote convenience; send the message that you are recognizing shoppers’ needs during an extraordinary year, and working hard to make life easier. For example, if you offer curbside pickup, use Google advertising tools to promote it: retailers can now indicate in their local inventory ads that curbside pickup is an option. And features like the local inventory ads curbside pickup badge, currently in beta, allow retailers to highlight contactless pickup available for products next day or even same day.
  • Capitalize on location-based advertising such as advertising on Google Maps. As we have blogged in the past, Google Maps advertising offers unique possibilities; why not use this tool to highlight your shipping and curbside service offerings?
  • Put video to work. Explain how your shipping and curbside services work via tight, thoughtful video segments. Per eMarketer, “Viewers are three times more likely to pay attention to online video ads than television ads, and 70 percent of viewers say they bought a brand after seeing it on YouTube.” YouTube’s value, in fact, can’t be overstated: the article goes on to detail that the video-sharing platform has a 97 percent audience reach. Internalize these tendencies and strengths, and capitalize on them by planning a video strategy that reaches more people, and inspires those people to come shop this holiday season.
  • Make sure you promote services such as shipping through Google search ads. As eMarketer notes, almost 75 percent of U.S. respondents who indicate they plan to shop this holiday state that they will shop online more than they have in past holiday seasons. And the time-honored joy of browsing for gifts? A similar percentage say they will indulge their browsing online rather than on-site. Meet these online browsers and shoppers where they are at, letting them know, in their online search results, what you are offering in terms of shipping.

Contact True Interactive

A year ago, no one could have predicted the ways 2020 would shape consumer need—or the imagination and agility that would be demanded of brands responding to that need. Let us help you create online holiday advertising strategies during a singular time. Contact us.

6 Reasons Why Facebook Continues to Succeed

6 Reasons Why Facebook Continues to Succeed

Facebook

Is Facebook the most resilient brand in the world? It sure seems that way. Here is a business that has weathered one public relations storm after another in recent years, and yet the global business is getting stronger than ever. In the past couple of years alone, we’ve seen Facebook experience some serious threats, such as:

  • Widespread criticism that the platform tolerates hate groups.
  • Accusations that Facebook has been used as a tool for malicious parties to interfere with the election of public officials in the United States and internationally.
  • Anger over Facebook’s failure to contain egregious breaches of user privacy.
  • Speculation that Facebook’s internal culture is imploding.
  • Anxiety that Facebook exerts an unfair advantage over its competition and needs to be broken up.

What have I missed?

These, and many other concerns, have resulted in some concrete actions that normally would cause some serious problems for a business, such as:

  • An advertising boycott by a number of powerful brands in July.
  • CEO Mark Zuckerberg being hauled into public hearings to face a public grilling by Congress, most recently the week of July 27 over Facebook’s competitive practices.

And yet, in Facebook’s most recent quarterly earnings report, the world’s largest social media network reported:

  • $18.7 billion in revenue, up from $16.9 billion a year earlier and above analysts’ expectations of $17.34 billion.
  • Profit for the second quarter nearly doubling to $5.18 billion, or $1.80 a share, exceeding Wall Street estimates.
  • An increase in monthly active users to 2.7 billion, from 2.6 billion in the first quarter. More than three billion people now use at least one of Facebook’s products on a monthly basis.

Now look at Facebook’s stock price, rising year after year:

Facebook’s resilience has prompted many to ask, Why? Well, I can think of a number of reasons:

  1. Clearly, the negative PR does not speak for everyone.
  1. Facebook continues to enjoy an advantage of being the first major social media network to break through globally. When you gain a foothold on a market, it’s awfully hard for anyone to dislodge you.
  1. Facebook has stayed true to a fundamental brand promise of connecting people. If you want to stay connected with Aunt Mary in Topeka or your old college buddy Jim in Montana, Facebook delivers.
  1. It’s not the only social media network fraught with controversy over free speech versus fringe activities. Every major platform – TikTok, Twitter, YouTube, and others – faces the same fundamental challenge Facebook does, and no one has anywhere near a perfect solution. Investors and advertisers understand this reality, and so long as social media platforms appeal to them, Facebook does, too.
  1. Facebook continues to make smart moves to expand its global reach, a recent example being its investment into Jio Platforms of India.
  1. The company is delivering on its 10-year growth plan unveiled in 2016, including continued investments in virtual reality.

Reason 6 above is especially important. Investors like to see businesses create a compelling growth plan and stick to it. Facebook has never lost sight of its own aspirations to grow globally and to use technology to connect people. As a result:

  • Facebook attracts more investors.
  • Those investors fuel the company’s expansion.
  • The company’s expansion attracts more users.
  • More users attract more advertisers. And advertisers are crucial to Facebook’s future.

My advice to advertisers:

  • If Facebook is delivering the audiences you want, continue to rely on Facebook as a crucial element of your game plan. Capitalize on new tools to reach your audience, such as Facebook’s recently unveiled ways to connect people and businesses on WhatsApp. If you work with an agency, ask them about how they’re using these tools to help you.
  • Be patient, and don’t let negative PR distract you (but if you’ve stuck with Facebook thus far, you probably know that already).
  • As with all social networks, assess your own tolerance for the risk versus reward of having a presence on Facebook. As I blogged recently, being on social media presents the possibility that your ads and organic content will appear alongside questionable content. At the same time, being on social also means benefitting from the surge in traffic on social media occurring in 2020. Bottom line: be vigilant (and your agency partner, if you have one, should be vigilant, too).
  • Keep a close watch on all the news affecting Facebook, especially Facebook’s ongoing issues with Congress. It’s important to understand the potential changes that legislation could have on Facebook. Being aware is always a good course of action.
  • Get comfortable living with the wild card in the deck: the effect of the COVID-19 pandemic. The biggest impact the pandemic may have on Facebook is fluctuating advertising revenues from businesses looking for ways to reduce their ad spend as they react to uncertain economic conditions. But one thing is clear: the Facebook community itself is only getting bigger, and it probably will as people increase their usage of online platforms amid spikes in COVID-19 rates.

Contact True Interactive

At True Interactive, we help businesses capitalize Facebook’s growth to build their brands. We can help you, too. Contact us to learn more.

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Businesses Balance Risk with Reward on Social Media

Businesses Balance Risk with Reward on Social Media

Facebook Social media YouTube

One of the more interesting aspects of the ongoing Facebook advertising boycott is the concern over brand safety. Advertising Age reports that boycotting advertisers want assurance that the ads they place on the Facebook News Feed will not appear next to objectionable content such as hate speech. And who can blame them? But advertisers may not get everything they want. And they may have to live with an ongoing reality: so long as your brand lives on social media, you will always need to manage risk (whether you advertise, manage organic content, or both) against the ROI of having a presence on the world’s most popular digital destinations.

Social Media Controversies

I’ve been following how brands have managed occasional controversies on social and have commented on them in posts such as “Twitter’s Troll Police Struggle to Separate Humans from Bots” and “Social Media Remains a Messy Place for Brands to Live.” Many of the issues I’ve been writing about remain today, and Facebook is not the only platform wrestling with them. They include:

  • The inherent tension that exists when businesses exist on platforms designed to give people and organizations an open forum. An open forum means that anyone can have an opinion, which means that fringe content will always make its way on to social.
  • The reality that malicious parties are actively looking for ways to game the platforms and disrupt them. Twitter is reeling from a major hack July 15 in which the accounts of high-profile individuals such as Jeff Bezos and Elon Musk were hijacked as part of a Bitcoin scam. Of course, the bad guys out there are also going after brands’ websites, too, but on social media, your account is only as secure as the platform where you are renting space.
  • The difficulty of combating malicious content. As I discussed in a post about Twitter trying to combat trolls, social platforms continue to struggle with the fact that they can employ only so many people to monitor and combat inappropriate content. And when the platforms use automated tools to root out trolls, those tools make mistakes by overreaching and going after innocent accounts, too.

But brands simply cannot decide to ignore social media. Facebook, Instagram, LinkedIn, Twitter, and YouTube are among the Top 20 most visited sites in the world according to Ahrefs. And as online traffic has surged across the board in 2020, businesses continue to succeed with social media advertising.

What You Should Do

So what’s the answer for brands wanting a safer experience? Well, there is no easy one. But:

  • Artificial intelligence is going to get better. Remember, we’re still in the early stages of AI’s development. As AI improves, social platforms are going to do a better job rooting out objectionable content.
  • Social platforms can and should be more transparent about how they monitor and react to objectionable content. It’s unrealistic for any social media platform to promise brands that their ads will never appear alongside offensive content. But according to Advertising Age, Facebook is figuring out how to more proactively report to brands how it monitors content and responds to flare-ups. This is a step in the right direction. It’s just not a good idea to leave advertisers in the dark. Being candid and including them in a solution goes a long way.

Advertisers should demand that social media platforms work with them to manage their brands. But social media more than ever will always be a risky place for brands to live. I suggest that businesses:

  • Have a strategy for how social media attracts and keeps customers both with advertising and organic content.
  • Measure success – but also measure your risk tolerance. Assign a numerical scale to assess the level of risk you are willing to accept on each platform and for various types of incidents ranging from security breaches to your content appearing alongside inappropriate content.
  • Monitor your ROI as well as incidents you experience. How much ROI are you getting? How frequent are the violations you experience? Does the ROI outweigh the costs of dealing with negatives? (Your mileage will vary.)
  • Keep applying pressure to the major social platforms to hold themselves accountable.

What have your experiences been on social media? I’d love to hear from you.

Contact True Interactive

Do you need help making decisions about advertising on social? Contact us.

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