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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Why 2020 Is TikTok’s Year

Why 2020 Is TikTok’s Year

Mobile

TikTok is having quite a year. And so, by association, is American Eagle Outfitters. According to Mobile Marketer, the clothing and accessories retailer enjoyed a Q1 sales surge online, driven in part by TikTok campaigns that connected with a young target audience eager to spend money online. The headline is this: TikTok is helping businesses benefit from massive shifts in consumer behavior in 2020.

TikTok, which is owned by the Beijing-based ByteDance, give brands a great platform for creating awareness, and more businesses like American Eagle are enjoying increases in online sales because of that platform. Read on to learn more about how TikTok is evolving rapidly in 2020.

What Is TikTok?

A free video-sharing social networking app that launched in the international market in 2017, TikTok was once predominantly dedicated to lip-synching. But now the platform, which features short looping videos of three to 60 seconds, and music and lip-sync videos of three to 15 seconds, has evolved into a short-form video content hub. And it’s becoming something of a powerhouse: according to Adweek, App Annie’s Q1 Global App Market Index identifies TikTok as the most-downloaded app in Q1 2020, as consumers continue to go online to find things to do and to express themselves at a time of social distancing.

Mobile-first 18- to 34-year-olds are the dominant market for TikTok, and one need only take a look at user numbers to recognize the platform’s significance—even beyond that primary market. Datareportal, for example, reports that  TikTok enjoys 800 million monthly active users. Those users are engaged, too: Oberlo notes that on average, they spend 52 minutes per day on TikTok.

Brands Getting in on the Action

Brands, particularly those catering to younger consumers, are taking an interest in TikTok. The platform is an ideal place to engage audiences and demonstrate a lighter side through funny videos or challenges. And during the COVID lockdown, TikTok has become a pressure valve for people cooped up inside. Examples of the wildly diverse brands who have already invested in a TikTok presence include:

  • NBA: the NBA uses TikTok to show off a lighter side, posting videos of players working out to music, for example, or the adventures of team mascots. The app’s musical features help the organization lighten up its branding; the videos still promote basketball, even as they fit in well with other quirky or musical posts on TikTok. Though the 2019-20 season was disrupted by COVID-19, the NBA has kept fans engaged by posting exciting plays from NBA stars. And players like Shai Gilgeous-Alexander, who plays for the Oklahoma City Thunder, and Los Angeles Lakers megastar LeBron James, are turning to TikTok to keep fans amused with coordinated dances and funny moments.
  • elf Cosmetics: the cosmetics brand used TikTok to face COVID head-on, releasing a remix of an original song that had originally appeared in fall 2019. Changing the title of the song from “Eyes. Lips. Face.” to “Eyes. Lips. Face. Safe.,” elf paired the rebranded song with a new TikTok video demonstrating hand washing and social distancing.
  • San Diego Zoo: capitalizing on the fact that many people love cute animals, the San Diego Zoo’s TikTok account posts videos of adorable animals with fun music. It’s a simple strategy that has earned the account more than 50,000 fans. Even during the downtime brought about COVID-19, the zoo has kept up interest among its followers by posting amusing and sweet videos of animals going about their day.
  • Mucinex: Mucinex might not seem to lend itself to playful TikTok videos, but last fall the sinus relief brand successfully leaned into a popular TikTok theme: that of transformation. In the Mucinex spots, quick video edits showed influencers changing from zombie-level “too sick” to fashion-forward “so sick” after taking their medicine. The campaign generated nearly one billion views. 

So how does one become part of the TikTok revolution? The platform offers a variety of advertising options. If you are new to TikTok, we suggest reviewing this beginner’s guide courtesy of TikTok.

TikTok and Influencer/Brand Collaborations

As for what’s next, look for TikTok to increasingly help brands find influencers to work with. In the TikTok Creator Marketplace, brands can already search through the app’s top creators, a list of more than 1,000 TikTok stars including Zach King and CJ OperAmericano. The marketplace allows interested brands to gain insights into the audience demographics of a given creator/influencer, and germane details like engagement rate over time.

More Developments

Ever evolving, TikTok is also looking to live broadcasts and educational content to expand its reach and net more ad dollars. But as c|net reports, the platform won’t be nixing the familiar dance and lip-syncing videos that put TikTok on the map. Bryan Thoensen, who oversees content partnerships at TikTok, perhaps puts it best: “It’s adding more legs to the stool,” Thoensen says.

 A Caveat

There is a dark cloud on TikTok’s horizon, as the platform faces security concerns. Last fall, Senate Minority Leader Chuck Schumer and Senator Tom Cotton asked U.S. intelligence officials to investigate the security risks posed by TikTok. In a letter addressed to acting Director of National Intelligence Joseph Maguire, the senators wrote, “With over 110 million downloads in the U.S. alone, TikTok is a potential counterintelligence threat we cannot ignore.” The concern that the app could be used for intelligence-gathering and foreign influence campaigns by the Chinese Communist Party was also voiced.

To date, however, the negative coverage has not appeared to deter brands.

Contact True Interactive

Want to learn more about what benefits TikTok might bring to your business? We can tell you more about the options and how to get started. Contact us.

Research Shows That Having a Strong Social Media Presence Pays Off

Research Shows That Having a Strong Social Media Presence Pays Off

Facebook

Having a strong social media presence pays off for your brand – literally. That’s what research from Sprout Social shows. Sprout Social surveyed consumers and social marketers between February 28 and March 4. As reported in Mobile Marketer, the survey reveals:

  • Nine out of 10 people purchase from brands they follow on social media.
  • Seventy-five percent of people have increased their spend on companies they follow on social. That’s a 12 percent increase from 2019, a leap that’s particularly noteworthy given the COVID-19 pandemic.

Moving Forward

These findings validate what we wrote in a recent post: brands advertising on social media can connect with people who are willing to spend money even during the coronavirus era. Knowing this, how does a company move forward during such an unprecedented time? Here’s what we suggest you do:

  • Make sure you have a strong social media presence. As we’ve noted, use of social media has surged in the first quarter, with engagement on platforms like Facebook, WhatsApp, and Instagram spiking 40 percent or more — this despite, or even because of, the pandemic. In short, not only are people willing to spend on brands, there are more people on social, period. Brands that advertise on social will reach that larger audience.
  • Make sure your content is engaging, and that you engage with the audience. According to the Sprout Social report, 61 percent of consumers say that engagement with the audience is the brand characteristic that is most meaningful to them.
  • Complement your advertising with strong customer service. What does strong customer support look like now? Per Sprout Social, responding to people quickly is a strong barometer of customer service. As noted in Mobile Marketer, 40 percent of consumers expect brands to respond within the first hour of connecting through social media; and 79 percent expect a response in the first 24 hours.
  • Reach out to younger consumers in a way that matters most to them; that means a strong presence on YouTube and Instagram. Gen Z is the largest age cohort in the United States, and Millennials remain sizeable. It’s important that brands understand where Gen Zers spend their time. Right now, visual content is the key to Gen Zers’ hearts. The Sprout Social report reveals that social sharing platforms highlighting videos and photos, such as Google’s YouTube and Facebook’s Instagram, are becoming more and more popular with younger consumers. As reported in Mobile Marketer, “Almost three quarters (73%) of Generation Z said they plan to use Instagram more often, while 65% said they plan to spend more time on YouTube.” So it’s no surprise that Facebook just purchased Giphy and will integrate the business with Instagram.

Finally, make sure that you stay abreast of the various tools that are constantly made available to businesses to maximize the value of their social media spend. For instance, Google has adapted the YouTube masthead ad format for the era of connected TV.

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How Brands Are Succeeding with Social Media Advertising

How Brands Are Succeeding with Social Media Advertising

Advertising

There’s a disconnect between how businesses and consumers are behaving on social media during the coronavirus pandemic. As reported in The Wall Street Journal, people are spending more time on social apps such as Facebook, but businesses have scaled back their advertising during the first quarter (although in its latest earnings announcement, Facebook said that ad revenue had stabilized at the beginning of the second quarter in April). Companies that go dark on social create an opportunity for their competitors to engage with a growing audience. If you are one of those brands thinking of scaling back, perhaps you should reconsider. Let’s take a closer look at what’s going on.

Consumers Are Online. And They Are Receptive to Ads.

Life under lockdown has resulted in a spike of internet usage. The latest report from App Annie indicates that worldwide, average weekly time spent in games and apps on Android devices increased 20 percent year-over-year in Q1 2020. Significantly, consumer spending also ticked up: “In Q1 2020 consumers spent over $23.4B through the app stores, the largest quarter ever in terms of consumer spend.”

Increased time online also means an uptick in social media usage. According to TechCrunch, an April 2020 Kantar report reveals the extent of this uptick during the pandemic: Facebook, WhatsApp, and Instagram experienced a 40 percent+ increase in usage. Facebook usage has increased by 37 percent overall.

Not only are consumers online more, and still spending, but they are open to seeing ads. GlobalWebIndex research reveals that globally, approximately 50 percent of respondents approve of brands running “normal” advertising campaigns not linked to COVID-19. Strongest approval was reserved for businesses offering practical and informative tips to deal with the current circumstances.

As reported in Social Media Today, a recent Twitter survey provides some context as to this consumer openness to ads. One interesting finding: 52 percent of respondents said that seeing/hearing ads provides a sense of normalcy, even comfort. In other words, regular promotions are familiar. Anything familiar right now is welcome.

Brands That Are Doing It Right 

As we’ve already blogged, companies like Ford, Hanes, and Budweiser have all managed to strike the right tone in their coronavirus-era advertising. Brands that are specifically advertising on social media, and doing it well, include:

  • TOMS: in a recent Instagram ad, the shoe manufacturer acknowledges the fact that one’s workplace might look a little different right now. “Working from home?” the ad asks, over an image of cozy slippers from TOMS. The implication here is that times may be different, but TOMS shoes, familiar and comfortable, can help make these unfamiliar times better.

  • Dial: at a time when the CDC is recommending handwashing as a safety measure, antibacterial soap manufacturer Dial has created a 10-second spot for Facebook and Instagram that focuses on how to wash hands thoroughly. Dial’s name bookends the ad at beginning and end, but the focus is on customer safety. That’s a sound approach, given GlobalWebIndex research revealing 80 percent of respondents approve of brands running campaigns which demonstrate how they are helping their customers.

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The CDC recommends washing your hands as one of the best ways to help prevent you and your family from getting sick. Follow these 5 steps to wash your hands the right way every time:⁣ ⁣ Wet your hands with clean, running water (warm or cold), turn off the tap, and apply soap.⁣ ⁣ Lather your hands by rubbing them together with the soap. Lather the backs of your hands, between your fingers, and under your nails.⁣ ⁣ Scrub your hands for at least 20 seconds. Need a timer? Hum the “Happy Birthday” song from beginning to end twice.⁣ ⁣ Rinse your hands under clean, running water. ⁣ ⁣ Dry your hands using a clean towel or air dry them.⁣ ⁣ #Dial⁣ ⁣ #WashYourHands⁣ ⁣ #DialUpProtection

A post shared by @ dial on

  • Bones Coffee Company: in an Instagram spot that includes a coupon code, Bones Coffee Company encourages consumer engagement while speaking to our current quarantine situation head on. “How to self-quarantine,” the coffee company muses. “1. Stay Home. 2. Get Coffee.” The message is short, sweet, and to the point: small pleasures are still in our reach. They’re just enjoyed at home right now.

Tone Is Key

Brands do need to tread carefully to build trust. As reported in eMarketer, a March 2020 Kantar survey finds 75 percent of respondents saying businesses “should not exploit [the] coronavirus situation to promote the brand,” and that brands need to be careful with their tone. The Dial ad works because Dial is sharing useful information. The TOMS and Bones Coffee Company ads work because they discuss products that people would naturally want to use at home. Although the TOMS and Bones Coffee Company ads strike a lighter tone, they fall short of outright humor, which would have made them potentially tone deaf.

In short, not all ads work in a COVID-19 world. It’s also important to remember who your audience is: age group and quarantine status are bound to shape what that audience wants to hear.

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Why Brands Are Flocking to TikTok

Why Brands Are Flocking to TikTok

Social media

Brands used to creating awareness via social networks like Instagram and Facebook now have a new option to consider: TikTok, which is owned by Beijing-based ByteDance. Read on to learn more about a platform that is gaining currency through a blueprint involving music, quirk, and innovation.

What Is TikTok?

A free video-sharing social networking app that launched in the international market in 2017, TikTok was once predominantly dedicated to lip-synching. But now the platform, which features short looping videos of three to 60 seconds, and music and lip-sync videos of three to 15 seconds, has evolved into a short-form video content hub. And it’s becoming something of a powerhouse: in 2019, TikTok was declared the seventh most downloaded mobile app of the decade spanning the years 2010 to 2019.

Mobile-first 18- to 34-year-olds are the dominant market for TikTok, and one need only take a look at user numbers to recognize the platform’s significance—even beyond that primary market. According to Search Engine Journal, the app boasts more than 1.5 billion users. Adweek reports that “[i]n the U.S., Messenger was the top app of 2019 by downloads . . . followed by TikTok and Instagram.” Those users are engaged, too: on average, they spend 52 minutes per day on TikTok.

Brands Getting in on the Action

Brands, particularly those catering to younger consumers, are taking an interest in TikTok. The platform is an ideal place to engage audiences and demonstrate a lighter side through funny videos or challenges. Examples of the wildly diverse brands who have already invested in a TikTok presence include:

  • Guess: the clothing brand and retailer worked with TikTok to promote its Fall ’18 Denim Fit Collection during the back-to-school shopping season. The #InMyDenim Hashtag Challenge on TikTok, which invited users to show their fashion style in Guess denim with an overlay of Bebe Rexha’s “I’m a Mess,” exhorted consumers to “Transform your outfit from a mess to best-dressed! All you need is denim!” The six-day campaign was the first branded challenge on TikTok to go viral.
  • NBA: the NBA uses TikTok to show off a lighter side, posting videos of players working out to music, for example, or the adventures of team mascots. The app’s musical features help the organization lighten up its branding—and make the athletes seem more relatable. The videos still promote basketball, even as they fit in well with other quirky or musical posts on TikTok.
  • The Washington Post: the newspaper was one of the earliest brands to adopt TikTok, and uses its account to post comedic behind-the-scenes videos and newsroom skits. Serious in other arenas, on TikTok The Washington Post demonstrates its quirky side, taking advantage of TikTok’s weirdest special effects to create funny, musical videos. The cheeky installments, meant to entertain TikTok’s young viewers, present The Washington Post’s journalists as real—and trustworthy.
  • San Diego Zoo: capitalizing on the fact that many people love cute animals, the San Diego Zoo’s TikTok account posts videos of adorable animals with fun music. It’s a simple strategy that has earned the account more than 50,000 fans. And the zoo has “dueted” with other animal-friendly accounts, like the Monterey Aquarium, to cross-promote using TikTok features, thus introducing zoo followers to the aquarium, and vice versa.

There’s still an opportunity to get in on the ground floor with TikTok: as noted in the 2019 Sprout Social Index, 89 percent of marketers are adding Facebook to their social media marketing plans for 2020, while only four percent are adding TikTok. But those numbers are likely to change. As Search Engine Journal opines, “Getting your brand or business on TikTok does not have to be difficult. But at some point, it is going to become a must.”

Advertising Options on TikTok

So how does one become part of the TikTok revolution? The platform offers a variety of advertising options, but in terms of a quick overview, note that:

  • Costs start at an average of $10 per CPM, and can go up to $300,000 total budget for larger campaigns.
  • TikTok campaigns require a minimum investment of $500.
  • TikTok ads are still in beta so you must fill out a form to set up an account.
  • The platform offers video creation tools.
  • A couple different ad formats/types, audience targeting tools, and placements and optimization objectives/goals are available.

In addition, this article from Social Media Examiner contains more insight on getting set up.

TikTok and Influencer/Brand Collaborations

As for what’s next, look for TikTok to increasingly help brands find influencers to work with. In the TikTok Creator Marketplace, brands can already search through the app’s top creators, a list of more than 1,000 TikTok stars including Zach King and CJ OperAmericano. The marketplace, launched last year and still in beta testing mode, allows interested brands to search using filters like topic, the number of followers a creator has, and location by state.

A Caveat

There is a dark cloud on TikTok’s horizon, as the platform faces security concerns. Last fall, Senate Minority Leader Chuck Schumer and Senator Tom Cotton asked U.S. intelligence officials to investigate the security risks posed by TikTok. In a letter addressed to acting Director of National Intelligence Joseph Maguire, the senators wrote, “With over 110 million downloads in the U.S. alone, TikTok is a potential counterintelligence threat we cannot ignore.” The concern that the app could be used for intelligence-gathering and foreign influence campaigns by the Chinese Communist Party was also voiced.

To date, however, the negative coverage has not appeared to deter brands.

Contact True Interactive

Want to learn more about what benefits TikTok might bring to your business? We can tell you more about the options and how to get started. Contact us.

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.

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