Google turned 20, Amazon prising budgets away from others, rising data connoisseurship and more highlights from October 2018.
Google turned 20: How will it stick around for another 20?
Google kicked off its 20th birthday celebrations with The Future of Search event, with the main focuses being on making the search experience more personalised, and more visual (e.g. AMP Stories). Expansion of its travel offerings, YouTube ad extensions, updated native ads in Google Discover, and the launch of AdLingo – a conversational marketing platform – are further reflection of continued investment in the future.
We should always remember that money talks too and Google’s dominance for the last 20 years will help guard its future. For instance; reports suggest they will pay $9bn to be default search on Safari whilst Google’s entry into China – Project Dragonfly – could happen within the next year according to reports as they go after their next 1bn users.
Amazon to power ahead
Amazon’s Q3 net sales of $2.5bn can largely be put down to advertising services – 122% YoY growth. This growth is likely to continue as more brands continue to shift budgets. For instance; a CNBC survey recently revealed that some advertisers are shifting budgets from Google to Amazon.
Furthermore; a Third Door Media survey found that 80% of Amazon advertisers plan to increase spending on the platform with budgets coming from search, display, and paid social among other areas. Amazon is also working on sharing more data to advertisers.
The rise of the likes of Instagram, Snap and Pinterest have fuelled the need for publishers to monetise more images and videos. Google is getting in on the act too with its AI-powered lens technology enabling browsers to find out more about products in images.
Above: New Snap feature to find in-image products on Amazon.
In preparation for the holiday season there’s been a number of further launches including Snap’s roll out of self serve shoppable ads globally; as well unveiling a “product catalogue” feature to allow advertisers to quickly put ads together, and pixel targeting to build custom audiences. This is further enforced by Snap’s launch of a visual search collaboration with Amazon. Meanwhile; Pinterest launched new purchase features including pricing and stock info on all product pins with links to the retailer’s website
Facebook privacy woes continue
Whilst launching new tools such as Creative Compass (for showing ad effectiveness) and Audience Network SDK (for pushing Facebook ad campaigns beyond Facebook); issues continue to surface for Facebook. For instance; not only did they concede that Portal data can inform targeting elsewhere, but also allegedly over-inflated ad views by as much as 900%. Further bad news came as they were fined £500k for the Cambridge Analytica data scandal.
The Connected TV opportunity
Striving for Data Connoisseurship
The third wave of data management platforms is upon us – a period defined by connoirsseurship & specialisation. Whether we call them DMPs is another debate, but this “third wave” is characterised by adding an intelligence layer around audience and unique technical capabilities – something our own DMP – Carbon – is focused on.
Other Key Reads
- With equity release surpassing £1bn in Q3 the spending power of those at pension age should be watched closely, with full-year equity release potentially reaching £4bn.
- The UK has the largest digital automotive audience in the EU5 at 27m – 62% of the total digital population, providing further evidence of the growing digital influence on big ticket purchases. eBay acquiring Motors.co.uk is further evidence of this.
- The main takeaway from the UK Budget 2018 was the new digital services tax that will come into play April 2020 largely targeting the likes of Google, Facebook and Amazon; but many are concerned this could lead to reduced investment in the UK’s digital industry as a result.
- Holiday shopping predictions have started e.g. Survata suggests that Amazon will dominate this holiday season at 3-to-1 vs Google in terms of shoppers; whilst Deloitte esimate 17-22% YoY increase in US online sales and Periscope expect over 70% of consumers in US, Canada, Germany and the UK expected to shop on Black Friday.