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

What Is the California Consumer Privacy Act (CCPA)? Advertiser Q&A

What Is the California Consumer Privacy Act (CCPA)? Advertiser Q&A

Marketing

The California Consumer Privacy Act (CCPA) takes effect on January 1, 2020. The forthcoming law symbolizes how consumer privacy is increasingly taking center stage among governmental bodies in the United States. Preliminary estimates suggest it will cost businesses $467 million to $16.5 billion to comply in coming years.

At this point, it’s safe to say that every major advertiser is aware of the CCPA. But it’s not always easy to understand exactly what this omnibus legislation is all about. So we’re going to answer some question that we’ve been getting. Check it out – the CCPA might apply to you whether or not you do business in California, so it’s important to understand it:

What Is the CCPA?

The CCPA is new legislation designed to enhance privacy rights of California residents. With a population of nearly 40 million, California is considered a bellwether state. Many privacy experts are watching the CCPA closely because of its potential impact on how privacy is legislated across the United States.

How Does the CCPA Enhance the Privacy Rights of California Residents?

The CCPA grants new rights to California consumers, per the CCPA website:

  • The right to know what personal information is collected, used, shared or sold, both as to the categories and specific pieces of personal information;
  • The right to delete personal information held by businesses and by extension, a business’s service provider;
  • The right to opt-out of sale of personal information. Consumers are able to direct a business that sells personal information to stop selling that information. Children under the age of 16 must provide opt in consent, with a parent or guardian consenting for children under 13.
  • The right to non-discrimination in terms of price or service when a consumer exercises a privacy right under CCPA.

What Does the CCPA Require of Businesses?

In a single sentence: the CCPA imposes requirements on how businesses collect, use, and disclose information about California residents.

But the legislation is dense and difficult to untangle. Per the CCPA website, businesses must fulfill these obligations:

  • Businesses subject to the CCPA must provide notice to consumers at or before data collection.
  • Businesses must create procedures to respond to requests from consumers to opt-out, know, and delete.
    • For requests to opt-out, businesses must provide a “Do Not Sell My Info” link on their website  or mobile app.
  • Businesses must respond to requests from consumers to know, delete, and opt-out within specific timeframes.
    • As proposed by the draft regulations, businesses must treat user-enabled privacy settings that  signal a consumer’s choice to opt-out as a validly submitted opt-out request.
  • Businesses must verify the identity of consumers who make requests to know and to delete, whether or not the consumer maintains a password-protected account with the business.
    • As proposed by the draft regulations, if a business is unable to verify a request, it may deny the request, but must comply to the greatest extent it can. For example, it must treat a request to delete as a request to opt-out.
  • As proposed by the draft regulations, businesses must disclose financial incentives offered in exchange for the retention or sale of a consumer’s personal information and explain how they calculate the value of the personal information. Businesses must also explain how the incentive is permitted under the CCPA.
  • As proposed by the draft regulations, businesses must maintain records of requests and how they responded for 24 months in order to demonstrate their compliance.
    • In addition, businesses that collect, buy, or sell the personal information of more than 4 million consumers have additional record-keeping and training obligations.

In coming months, what’s likely going to happen is that businesses will learn through trial and error. Stay tuned. And learn from the inevitable violations that are bound to make the news.

Who Must Comply with the CCPA?

Companies doing business in California subject to the CCPA if one or more of the following are true:

  • Has gross annual revenues in excess of $25 million.
  • Buys, receives, or sells the personal information of 50,000 or more consumers, households, or devices.
  • Derives 50 percent or more of annual revenues from selling consumers’ personal information.

I’m Not Based in California. Do I Need to Worry about the CCPA?

The conditions stipulated above may indeed apply to you if you are outside California. For instance, if you are buying, receiving, or selling the personal information of 50,000 or more consumers, households, or devices in California, CCPA may apply to you regardless of where you are located. Read this insight for more detail.

What Is the Penalty for Noncompliance?

Businesses may be fined up to $7,500 for violation. Businesses could also face civil damages of up to $750 per violation, per user. The key phrase here is “per user.” A major violation could cost a business millions.

Will More States Enact This Kind of Legislation?

They already are. Nevada has enacted its own version of the CCPA already. Here is more information on how other states are enacting privacy legislation.

How Do I Ensure I Am Compliant?

A number of security firms provide compliance services. Unless you have a strong in-house security team, your best bet is to look for compliance help from a specialist.

Contact True Interactive

To manage advertising online effectively, contact True Interactive. We’re here to help!

Photo by Glenn Carstens-Peters on Unsplash

How the YouTube Masthead Ad Format Connects with Television Audiences

How the YouTube Masthead Ad Format Connects with Television Audiences

YouTube

We’ve blogged about the fact that in an era of connected TV, audiences are increasingly watching content that advertisers can’t sponsor — there are no ads on Netflix (yet), for example. But Google is sensing and responding to this reality, as evidenced by the launch of the YouTube Masthead ad format for TV. Essentially, YouTube is helping brands find a new way to get onto TV screens — and into the hearts and minds of viewers.

What Is YouTube Masthead for TV?

YouTube Masthead formatted for television is a response to changing viewing habits. Audiences can access YouTube on their TV screens, and because YouTube is free, it represents a new frontier for brand advertising. As described in Instapage, “[a] YouTube Masthead is a digital billboard placed on YouTube’s homepage for 24 hours, reaching roughly 60 million people (YouTube receives 1.8 billion users/month).”

The YouTube Masthead doesn’t use search histories to earmark users based on their interests or demographics (note that you can target a country where you would like an ad to be shown, though). The Masthead simply appears right on the network’s homepage, allowing brands to reach consumers as soon as they access the YouTube app on their TV. The Masthead, which takes up some prominent real estate at the top of the screen, best serves brands that have the desire, and the budget, to maximize exposure across a sweeping, non-targeted audience. On its blog, YouTube provides an example from an early tester, Ford.

Why YouTube Masthead?

In adapting the YouTube Masthead ad format for TV, Google is capitalizing on the fact that while consumers may have cut the cord on linear TV, they are still using their televisions to experience streaming platforms like YouTube. According to the Google blog, “daily [television] watch time tops 250 million hours per day.” TV screens are still a powerful place where brands can enjoy maximum exposure.

And YouTube Masthead ads seemingly deliver. According to Instapage, Google and Compete researched the impact of YouTube homepage ads. Their findings demonstrated that users “exposed to a YouTube Masthead were four times more likely to visit the advertiser’s website, search for their brand, or engage with even more of their videos.” And because YouTube’s content is so diverse (everything from baking tutorials to the Coachella music festival streamed live) the consumer base will be large and diverse, as well.

How to Move Forward with Masthead

Given the broad reach of the YouTube Masthead format, advertisers will want to keep a few things in mind before diving in:

  • Even though Masthead ads are not targeted, it’s important to remember who is drawn to YouTube in the first place. Know the platform: what videos are trending, for example. Remember that YouTube has a strong focus on entertainment. Is your product a good fit for the typical YouTube consumer?
  • Avoid inside jokes for a specific group. You don’t want your ad to be so broad that it’s boring, of course, but keep it accessible to the large audience you’ll be reaching.
  • You want to stir curiosity with your ad. But remember, given the wide-ranging audience, not all viewers will be inclined to buy. Learn about the features YouTube Masthead makes available — from videos to social shares — and offer consumers different ways to explore your brand, depending on their level of interest or engagement.

Contact True Interactive

Curious as to whether YouTube Masthead is a good fit for your brand? Wondering if there are other ways you can leverage television viewership in this era of connected TV? Contact us. We can help.

What Is Stadia?: Advertiser Q&A

What Is Stadia?: Advertiser Q&A

Google

Over the last decade, streaming has become one of the most disruptive forces media, changing the way we experience everything from movies to music. Now Google, with a new cloud-based gaming platform called Stadia, hopes to use streaming to irrevocably shape the way we play. Here are answers to questions you may have about it.

What Is Stadia?

Stadia is Google’s new cloud-based gaming service that will be accessible through multiple mobile devices including PCs, laptops, smartphones, and smart televisions and tablets. Instead of purchasing a game at a brick-and-mortar store or downloading a title on their console, gamers will simply stream the games running on Google’s cloud servers. As announced at Google Stadia Connect and Gamescom 2019 in August, the catalog currently includes 39 games ranging from Cyberpunk 2077 to Mortal Kombat 11, Attack on Titan 2: Final Battle, and Kine.

According to John Justice, VP of product for Google Stadia, the goal is to bring “all the games you’d expect to have” to Stadia, as well as games “only possible in the cloud.” Games are streamed from Google’s constantly upgraded servers, which means players don’t have to monitor (or wait for) downloads or updates.

And the platform is meant to allow for the multiple ways gamers play. As Google VP Phil Harrison told Eurogamer, “[The word ‘Stadia’ is] the plural of stadiums . . . A stadium is a place where you can have, obviously, sports, but it’s also a place where you can have entertainment. And so we wanted that to be our brand idea, which was a place for all the ways that we play and this idea of watching, playing, participating . . . where you could take a slightly ‘lean-back’ view of a game [if you wanted to]. You don’t necessarily have to be leaning into every last button press per second of a game.”

When Does Stadia Go Live?

Google Stadia’s Founder’s Edition will be released in November 2019 in 14 territories including the United States, UK, and Canada. Those who opt for the Founder’s Edition will drop $130—less than the price of a new PS4—for a Chromecast Ultra and a limited-edition “Night Blue” controller. These early adopters will receive not only the hardware, but also three months of free premium service (called “Stadia Pro”—more details below). They’ll also receive a three-month “Buddy Pass” so that a friend can also enjoy Stadia Pro.

Why Is Google Interested in Gaming?

A shift into the video game business may seem like a big move for Google, but gaming is a lucrative industry. According to market analysis firm Newzoo, the video game industry produced roughly $135 billion in sales in 2018. GlobalData predicts that number will balloon to $300 billion by 2025.

Who Is Google Competing against with Stadia?

As far as game streaming is concerned, Google isn’t the only company exploring this new frontier. Microsoft is in the midst of planning its own offering, called xCloud. Twitch is a well-known and popular platform owned by Amazon subsidiary Twitch Interactive and introduced in 2011, which focuses on video game live streaming.  And Playstation Now, from Sony, allows PlayStation owners to instantly access a library of (mostly older) games for $99 a year, even as Sony promises to take that service “to the next level later this year.” Meanwhile, Apple will launch its own subscription gaming service, Arcade, September 19.

How Will Google Make Money off Stadia?

Although Stadia has been predicted to be the “Netflix of games,” the analogy isn’t a perfect one: Stadia is not primarily a subscription service. Gamers should expect to purchase, not rent, the games they play using the service (with the exception of some free releases). As Google’s director of games Jack Buser told The Verge, “We will sell these games like any other digital storefront.”

The service itself comes in two tiers:

  • Players can get Google Stadia for free via Stadia Base, which is due out in 2020 and will allow streaming of purchased games with stereo sound. The catch? Gamers won’t have access to free game releases when they occur.
  • To get all features, including 5.1 surround sound and access to the free game library, users will pay $10/month for Stadia Pro.

What we no one knows yet is what kind of advertising opportunities might exist with Stadia. Knowing Google, the company will figure out an ad model to support its online advertising business, which is fending off the rising popularity of Amazon Advertising and long-standing competitor Facebook. Stay tuned.

Contact True Interactive

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What Advertisers Should Do about Zero-Click Searches on Google

What Advertisers Should Do about Zero-Click Searches on Google

Google

Bad news for businesses in their ongoing efforts to optimize their websites for search traffic: for the first-time ever, more than half of search queries on Google result in no clicks to sites. According to marketing analytics firm Jumpshot, most people who search for content from Google find what they want from the search engine results page and don’t bother to click through to a website for more information. What happens on Google stays on Google.

In addition, per Jumpshot, Google continues to send “a huge portion of search clicks to their own properties . . . Those properties include YouTube, Maps, Android, Google’s blog, subdomains of Google.com, and a dozen or so others.”

Why the Rise in Zero-Click Searches?

Why the rise in zero-click searches? Because more than ever, Google is doing its job serving up essential information in response to queries. Over the years, Google has made it possible for business owners to build out rich, informative Google My Business (GMB) pages with information ranging from offers to customer/ratings reviews. Those pages form the foundation for businesses to be found on Google properties such as Google Maps.

GMB pages have become so useful and informative that people are finding what they want (“Find a grocery store near me”) in the knowledge panel of a business without needing to go to a business’s website. In fact, a company’s GMB page is now the single-most important way to attract local search traffic, according to Moz.

Meanwhile it’s no surprise that Google sends a huge proportion of clicks to its own sites. Facing rising competition from Amazon Advertising, Google is under pressure to keep its advertising business strong. To do so, Google needs to keep eyeballs on Google properties, where users are exposed to Google advertising (in May, we noted on our blog that Google is expanding its ad business on Google Maps, to name just one example).

What Advertisers Should Do about Zero-Click Searches

So what should advertisers do? You should:

  • Build up your GMB page. If organic queries are increasingly going to your GMB and staying there, then make sure you’ve optimized your GMB content – including images, customer ratings/reviews, and location data – to be found.
  • Link your GMB account to your Google Ads account. As Google discusses in this tutorial, linking your GMB account to your Google Ads account makes it possible for your ads to appear with location extensions, which encourage customers to visit your storefront. Through location extensions, customers can see your ads with location information such as your address. And then they can get more information about your location by clicking on location extensions.
  • Make sure you’re capitalizing on Google ad products throughout the Google ecosystem. With Google keeping more searchers on Google and its properties, it behooves advertisers to capitalize on where that search activity is occurring.

In addition, Jumpshot’s Rand Fishkin suggests that advertisers seek out keywords whose results have higher click-through rate (CTR) opportunity. He told Search Engine Land, “I think paid search CTR will probably decline over the next few months. That’s because historically, each time Google changes how paid ads appear in the search results (like the late May shift to the black ‘Ad’ labels in mobile SERPs), ad CTR rises, then slowly declines as more searchers get familiar with the ad format and develop ad blindness.”

At the same time, I would be surprised if Google were to leave itself vulnerable to the risk that searchers won’t click on ads.

Contact True Interactive

At True Interactive, we know how to help businesses navigate the complex waters of online advertising, including advertising on Google. Contact us. We’re here to help.

Why Yahoo! Scores An Advertising Touchdown with NFL Live

Why Yahoo! Scores An Advertising Touchdown with NFL Live

Advertising

As more cord-cutters embrace connected TV, advertisers don’t reach as many people as they used to. We blogged recently about the fact that even blockbuster TV shows like Game of Thrones attract a fraction of the audiences that used to gather in linear television’s heyday. The change has created an environment in which content creators and advertisers are invited to find new ways to make money from digital audiences. The shift isn’t limited to shows or series, of course. It also includes live sports, with platforms and publishers such as Facebook, Twitter, Yahoo!, and YouTube landing rights to broadcast games from the likes of Major League Baseball, the NFL, and the NHL. Yahoo!, for example, has adapted to the connected TV era by providing the NFL Live experience, which, in turn, creates an opportunity for advertisers: a less expensive, more targeted way for brands to reach NFL fans.

What Is NFL Live?

NFL Live is currently the only free mobile site for watching live NFL games. Yahoo! makes free NFL viewing a reality by empowering businesses to advertise on NFL Live. Some of the advantages to advertisers are straightforward: brands get their name in front of six million+ people who have downloaded the app, for example. But it’s not just the volume that matters—it’s the ability to target viewers. Instead of buying advertising spots for certain times during a game (the third quarter of a Bears/Packers game, say), advertisers on NFL Live can reach out to particular audiences. By targeting a group as specific as women ages 25-34 making $100,000+ annually, an advertiser may not reach the largest audience — but they can reach a market they determine is uniquely suited to their brand. It’s a trade-off that can be lucrative, bringing to mind the maxim “quality versus quantity.”

Another perk: it’s less expensive to advertise on NFL Live. A typical network ad during an NFL game costs about $300,000. By contrast, there is no minimum spend for advertising on NFL Live. Advertisers can spend as much or as little as they want.

How Is Yahoo! Expanding NFL Live to Yahoo!’s Fantasy Football App?

Yahoo! has done something else. The company is ramping up its NFL Live offering by also streaming NFL games on Yahoo!’s popular Fantasy Football app. As Yahoo! Fantasy analyst Liza Loza recently said, “NFL fans all over the country can root for their favourite teams and watch all local and primetime games free and unauthenticated in the Yahoo! Fantasy Football app, the Yahoo! Sports app and other Verizon and NFL media properties on phones and tablets.” Multiple streaming locations mean a larger audience. They also hold the promise of attracting new fans. Yahoo! Sports general manager Geoff Reiss said that the digital platforms have brought in a “concentration of younger fans watching the NFL . . . Half of our fans were under the age of 40. I think one of the reasons the league was interested in working with us is we would be a means for them to reach younger audiences.”

Contact True Interactive

Yahoo! is a prime example of a business that’s adapting with the times. It’s important that advertisers remain nimble and aware of what companies like Yahoo! are doing, and capitalize on the opportunities that the changing market affords. Accept the fact that you won’t be reaching as big of an audience. Embrace the reality that you can in fact reach a much more targeted audience: one that’s smaller but more measurable. Call True Interactive for more insight into how to do that.

YouTube’s Bumper Machine: No Substitute for Creativity

YouTube’s Bumper Machine: No Substitute for Creativity

Video

YouTube is helping businesses to capture a person’s attention inside six seconds – which is important at a time when it takes just a few seconds for people to form an impression.  At Google’s annual Marketing Live event, YouTube unveiled a product called Bumper Machine, which makes it easier for businesses to create six-second video ads, or bumpers.

For context: in 2016, YouTube rolled out bumper ads. These consist of quick advertisements (six seconds) that are shown before a person’s selected video. A viewer must watch them before the video begins. By contrast, an in-stream video ad is the sponsored video that plays before your video selection on YouTube (and across the entire Google Display Network). You can skip an in-stream video ad after five seconds have elapsed.

According to YouTube, More than 90 percent of viewers say they have discovered new brands or products on YouTube. And as we’ve discussed on our blog, these ad formats give businesses the ability to target audiences and measure results. Not only can you target customer segments, but you can see how many of them interacted with your site, subscribed to your YouTube channel, made a purchase, or watched another of your YouTube videos (other than the ad you just showed them). Advertisers can can also see how much of the video ad an audience has watched. Doing so allows advertisers to determine if a video ad is too long, how much of the video a person watches before deciding to skip it, or see what percentage of viewers are tuned in for the entire video ad. All of these results can be determined the very next day.

But not every business has the resources and budget to crank out bumper ads. So at Google’s Marketing Live event, YouTube announced Bumper Machine, which generates six-second videos from longer video assets. Per YouTube,

Bumper Machine relies on machine learning models that are trained to identify interesting, well-structured moments in a longer video, like those that contain product or brand information, human faces, motion or contrast. It organizes these moments and brings them together to generate several different six-second ad variations for you to pick from, all in a matter of minutes. Before saving your new bumper ads, you can adjust them with simple edits.

Here is an example of how GrubHub took a 13-second ad and used Bumper Machine to create the 6-second version:

That’s right: Bumper Machine can configure your own bumper ad by figuring out what elements of a longer ad will work best in the bumper ad format – without human intervention. During a Q&A with viewers watching the Marketing Live event, YouTube product managers Ali Miller and Nick Rose answered some immediate questions:

Does Bumper Machine replace video editors and creatives?

No. One great way to use it is to gain inspiration for what you actually want to finally build as your bumper ad. You can take a look at what six seconds can do with a video and then build a customizable version of the video with all the expertise and creativity that professionals bring. But if you lack a budget and resources, it’s a way to get started with bumpers right away without spending on video production.

What was the insight behind Bumper Machine?

The six-second slot has taken hold as a way to create a compelling narrative. Bumper machine does the heavy work to help you create a six-second narrative

Is a six-second ad enough?

A six-second ad is an effective for telling a quick story. If you can fit in a single message, a joke, or an example of how a product is used, then a six-second bumper is a great way to get a message across. Also, it’s advisable to work with existing formats together to get the best results, such as skippable 30-second ads and True View to increase effectiveness, reach, awareness, and ROI.

With Bumper Machine, how does machine learning examine contextual relevance to determine a coherent message?

YouTube uses machine learning to identify the elements of the ad that will tell a story inside six seconds in the most engaging way — such as close-ups of someone’s face or a brand message. Then YouTube puts the content together to create a cohesive message.

What You Should Do

At True Interactive, we’ve been urging advertisers to adopt a video ad strategy for some time. Think of Bumper Machine as the video equivalent of your own Alexa skill, or an easy-to-use tool that enables an effective way of storytelling. Machine learning makes the formatting of the asset easier – but you still need human judgment to ensure that your ad captures the essence of your brand and is consistent with how you’re telling your story on other ad touch points (which I call creative parity, or consistency).

As with Google’s AI-fueled ad products, I suggest you view it as a tool to help, not as a substitute for actively managing your creative. For more insight, contact True Interactive. We have extensive experience with online advertising and are ready to help.