Today in Digital Marketing - Despite Strong ROAS, Agencies Remain Cautious of Meta's AI

Starting point is 00:00:00 It is Wednesday, March 1st. Today, Meta shines up some impressive numbers, but marketing agencies remain wary. A look at the topics people are talking about on Facebook and Instagram. The co-founder of Twitter has launched a competing service. LinkedIn adds tools for job searches. And here they come, ads inside audiobooks. I'm Todd Mathenin. That's ahead today in digital marketing. With Meta continuing to focus on machine learning, the company reported some pretty solid results yesterday regarding the effectiveness of its automated ad targeting tools. Meta says during the fourth quarter of 2022, advertisers saw more than 20% more conversions than the year before.

Starting point is 00:00:46 While recent tests have found that advertisers who use Advantage Plus shopping campaigns are seeing a 30% increase in return on ad spend. Meta also said some of its products like Reels ads and Shops ads are performing better due to these Advantage Plus shopping campaigns. These automated campaigns let advertisers set their business objective, target country, advertising, creative, and budget, and then Meta's AI systems do the rest. But even with Advantage Plus campaigns reportedly improving performance,

Starting point is 00:01:15 marketers are still resisting automation. Insider Intelligence reporting today that many advertisers have expressed concern that they're losing too much control over their campaigns to Meta's algorithms, and as a result, have opted out of Advantage Plus. One UK-based retailer says, despite significantly lower CPM prices, the company had to give up too much control. Meanwhile, a UK-based games company withdrew from Advantage Plus because it recommended an ad that attracted hateful comments. The company said that the tool lacked human emotion and common sense. According to an industry analyst quoted by Insider Intelligence, advertisers should keep in mind that Meta has a history of inflating metrics for its benefit, and advertisers and agencies should be approaching this with extreme vigilance. The report noted that while agencies view Advantage Plus shopping campaigns as a helpful addition to their existing tactics,

Starting point is 00:02:10 the platform's highly automated and opaque nature could significantly alter the role of agencies in Meta's advertising business. As advertisers rely more on automated campaigns, agencies may become less necessary. Quoting Insider Intelligence, Meta relies on an extensive agency network to convince brands that the social giant is a shrewd place to invest ad dollars. Leaning into AI and automation could upset the apple cart and lose the allyship from agencies it has long relied on. In other meta news, the company released its latest Culture Rising report yesterday,

Starting point is 00:02:57 which looks at emerging trends based on what people are talking about on Facebook and Instagram. The report's divided into four broad trends. First, exploratory identities. Meta says people are exploring identity as they discuss bodily integrity, redefine middle age, and embrace fluidity across cultures. One in four people Meta surveyed said they engaged with the body positive movement. Conversations around body modification are also rising. Meanwhile, on Facebook, conversations around middle age are thriving. Much like boomers redefined retirement, Gen Xers are redefining middle age. Number two, refined relationships. People are putting their relationship journeys out there. And according to Meta's trending topics, romance is alive and well.

Starting point is 00:03:37 Number three, assertive aspirations. Globally, consumers are asserting and acting on new aspirations in areas like mental wellness, meaningful work, home improvements, nonstop fitness. That sounds awful. Money matters and more. And finally, lived values. Values are changing, says Meta, as are the dedications to living them.

Starting point is 00:03:58 According to the report, consumers are seeking new comfort in old places, calling for action around basic rights and increasingly expecting brands to act like a BFF by understanding their values. Consumers want their brand best friends to show this through social proof, communicating on the same wavelength,

Starting point is 00:04:15 like using instant messaging and chatbots with more user-generated content. The report also looked at some of the top Instagram hashtags related to reels, like quotes, gym reels, bike reels. The report goes into a ton of detail. It's definitely worth checking out if you are looking for some brand relevant trends. A link to download the report is available in today's premium newsletter, or you can find it by searching for Meta's Culture Rising Report 2023.

Starting point is 00:04:44 Blue Sky, a new Twitter alternative founded by the former CEO of Twitter, Jack Dorsey, hit the App Store today. But you can't play with it yet. It's invite only for now. Based on screenshots, the app has a very similar interface to the OG platform, including comments, likes, retweets, although they call those reposts, and profiles. Blue Sky also offers similar features to Twitter, including a home timeline of posts from people you follow, a discovery tab, and so on. TechCrunch reported yesterday that the beta version of Blue Sky has set itself up as a federated and decentralized social network. There's been some criticism of that approach within the decentralization movement. But the idea is Blue Sky will eventually provide a version of Twitter that puts more control in users' hands regarding algorithms, moderation, and user experience. It is still a long way from the next stage,

Starting point is 00:05:35 according to TechCrunch, which received an invite to the service and found it was functional, but a rather bare-bones Twitter-like experience. It's the season for new styles, and you love to shop for jackets and boots. So when you do, always make sure you get cash back from Rakuten. And it's not just clothing and shoes. You can get cash back from over 750 stores on electronics, holiday travel, home decor, and more. It's super easy. And before you buy anything, always go to Rakuten first. Join free at rakuten.ca. Start shopping and get your cash back sent to you by check or PayPal. Get the Rakuten app or join at rakuten.ca. R-A-K-U-T-E-N.ca.

Starting point is 00:06:22 Do you have business insurance? If not, how would you pay to recover from a cyber attack, fire damage, theft, or a lawsuit? No business or profession is risk-free. Without insurance, your assets are at risk from major financial losses, data breaches, and natural disasters. Get customized coverage today starting at $19 per month at zensurance.com. Be protected. Be Zen. LinkedIn added several new tools for job seekers this week. First, it added a new element to its Open to Work option. Now, when you enable Open to Work, LinkedIn's system will also help you set up job alerts.

Starting point is 00:06:58 The platform will also soon be adding an option that will let you register your interest in working for a company on its business page. Also, LinkedIn is adding a new hiring in my network filter for job searches that shows who is currently recruiting among your connections. And finally, the company is expanding its skills match listings on open roles, which displays how your listed skills match up with those in the position based on your profile. It will soon let you share resume details with recruiters as well. No, it wasn't just you. Thousands of Twitter users reported outages on the platform earlier this morning. For some, the social media site appeared to have been restored after about 7 a.m.

Starting point is 00:07:41 Eastern time with reports on down detector declining. Hashtag Twitter was down was also trending on the platform today. Some users reported receiving a welcome to Twitter message, and that's it, while others experienced difficulty refreshing their feeds. One clever user mocked up a fake error message reading, you must tweet five compliments about Elon Musk to continue. It's not yet clear what caused the outage,

Starting point is 00:08:05 but these outages also appear to be on the rise. The New York Times reporting today that for the month of February alone, Twitter experienced at least four major outages. That compares with nine in all of 2022. The report said that Twitter's reliability has deteriorated because of Elon Musk's repeated slashing of the company's workforce.

Starting point is 00:08:30 Both current and former employees told media that the latest cuts affected dozens of engineers responsible for keeping the site online. And that will bring us to the Grammy Award-nominated lightning round. only to upgrade to a professional plan by March 31st to continue using the platform. TikTok set new screen time restrictions for teenagers today. In fact, every account held by a user under 18 will soon have a default 60-minute daily screen time limit. The company also said it will begin prompting minors to set a daily time limit if they opt out of the 60-minute default. Pinterest has expanded its Shuffles app to nine more regions, including Germany, France, Sweden, and a handful of others.

Starting point is 00:09:30 And finally, in the lightning round, another episode of Nobody Asked for This. Nobody Asked for This Audible, which is reportedly testing a renewed effort to place some ads in audiobooks. According to the Amazon-owned platform, this limited test of ad-supported access applies to select titles, including books, podcasts, and Audible originals.

Starting point is 00:09:53 And look, I know, I'm in the business. I should like ads too, but when exactly is the day when we all just give up on the internet and go move out to the country somewhere? Am I old? Man, I'm playing a lot of Rainbow Six Siege these days. Four hours yesterday. If you want to watch, by the way, my Twitch stream is back up. It's at twitch.tv

Starting point is 00:10:17 slash therealheels. That's the R-E-A-L-H-E-A-L-Z. I'm Todd Maffin. Thanks for listening. See you tomorrow.

Today in Digital Marketing - Despite Strong ROAS, Agencies Remain Cautious of Meta's AI

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