Today in Digital Marketing - The 1% Test That Has the Ad Industry Holding Its Breath

Starting point is 00:00:00 It is Thursday, May 18th. Today, biting the biscuit, the removal of third-party cookies has begun. Also, what people are seeing on Facebook these days, how will consumers react to YouTube's new unskippable 30-second ad format? And the Twitter exodus is no longer a question. I'm Todd Maffin. That's ahead today in Digital Marketing. The doomsday clock countdown to the cookiepocalypse has officially begun. Google confirmed today that it will remove cookies for 1% of Chrome users early next year as part of a test, paving the way for the complete removal of third-party cookies in the second half of 2024. The aim is to let developers assess the readiness and effectiveness of their

Starting point is 00:00:45 products without relying on the data tracking technology. Google will also give advertisers the option to simulate cookie deprecation for a certain percentage of their users in the fourth quarter of this year. The company also said that its privacy sandbox APIs, its cookie alternative, will be available to all Chrome users this July, which will give advertisers and publishers time to test alternatives on a complete population. Despite knowing for years that this day would come, many ad buyers have been slow to test replacements. However, it seems it's time to adapt as the clock has officially started ticking. Meta has released its latest widely viewed content report, which shows the most viewed content across Facebook. And what is getting Facebook users attention so far this year?

Starting point is 00:01:34 In terms of specific links, a story about a comet that is set to be visible in the night sky next year accounted for three of the top 10 most viewed referral links on the app. Celebrity stories and a report on Netflix's anti-password sharing also topped the list, while the most viewed Facebook pages were dominated by viral trend posters, recipes, and of course, pet clips. The report, though, found that platform consumption behaviors are changing. Meta is now pushing reels and short-form video consumption within the feed, and that has led to a recent increase in overall Facebook usage. Due to this, users are posting fewer original updates and prefer to just consume video content.

Starting point is 00:02:19 This switch positions Facebook more as an entertainment provider than a social network. It's also worth noting that more than 90% of the posts viewed in the U.S. during the first quarter did not contain external links. This indicates the viewership of posts with links has declined by nearly 50% over the past two years, suggesting it might be time to drop the link from your brand's content. YouTube is bringing 30-second unskippable ads to top-performing content, but luckily so far at least, just on its TV apps. Instead of two consecutive 15-second ads, viewers will now see a single 30-second ad.

Starting point is 00:03:02 This doesn't mean that shorter ads will disappear. Ad buyers will be able to access the 30-second ad. This doesn't mean that shorter ads will disappear. Ad buyers will be able to access the 30-second ads via YouTube Select, a curated ad platform that targets the top 5% of YouTube content. The company is also introducing pause ads for connected TV. Similar to Hulu's pause ad feature introduced a couple of years ago, YouTube's version called Pause Experiences will display ads when a viewer pauses a video. The ad format will appear as a banner around the video and can be removed by selecting the dismiss button. The 30-second ads will be available immediately and the pilot for Pause Ads, excuse me, the Pause Experience will start later this year.

Starting point is 00:03:53 New research has found consumers are changing how they navigate social media platforms in the era of rising living costs. In response to escalating costs, almost half of social media users and nearly two thirds of Gen Z actively search for money saving content from brands and influencers through social media. Among those platforms, Facebook and Instagram were the top-performing channels for discovering money-saving content. The survey also revealed that more than a quarter of consumers are now more likely to click on or purchase budget-friendly products advertised or shared on social media. In response to the demand for money-saving content, consumers have observed a shift in influencer tone and content from aspirational to relatable. Nearly half of respondents said that creators have become more considerate of their audience's financial capabilities. More than three-quarters said influencers who share luxury items are at

Starting point is 00:04:43 risk of being perceived as out of touch. 60% said that influencers helped them find cheaper products. As a result, the research suggests that brands, especially those that use influencers, should be careful about how they promote their products to avoid being perceived as out of touch with their customers. The data comes from We Are Social and Statistica Q's survey of more than 2,500 customers. No business or profession is risk-free. Without insurance, your assets are at risk from major financial losses, data breaches, and natural disasters.

Starting point is 00:05:29 Get customized coverage today, starting at $19 per month at zensurance.com. Be protected. Be Zen. Things aren't looking so bright for Elon Musk. A new study from Pew Research published yesterday found that Twitter engagement has changed significantly since his takeover, as more users are taking breaks from tweeting and a quarter are planning

Starting point is 00:05:51 their escape from the platform soon. Since Musk's acquisition, 60% of US users have taken a break from the app. Even the most active tweeters have scaled back their activity with data indicating a 25% decline in monthly posts from the platform's most prominent users. The data also highlights that the majority of content continues to come from a very small fraction of users. The survey gauged how likely Twitter users were to remain active on the platform in the coming year. Four out of 10 said it was a high likelihood, one in three indicated moderate, and one in four said they are not very likely to be on Twitter in a year's time. Instacart is becoming less about delivering groceries and more about delivering ads.

Starting point is 00:06:39 The information reporting today that the grocery delivery company's ad revenue reached $740 million last year, accounting for nearly a third of its total revenue. While advertising generates higher profits than grocery delivery, it also offsets the slowdown in Instacart's core business. But as the report points out, the big question is whether advertising can keep growing if its delivery business continues to decline. In the first quarter of this year, Instacart's transaction volume growth was between five and 10%.

Starting point is 00:07:10 That's down 15% from the previous year. The growth of its ad business during the same period is unknown. Despite these concerns, Instacart is profitable, generating about $180 million in earnings last year. But as the company relies more on advertising, there is a risk of overwhelming customers with ads and potentially

Starting point is 00:07:30 driving them away from the platform. To mitigate this risk, Instacart has developed fewer intrusive ad placements, like product promotions that give customers discounts, shoppable video ads, and display ads. As the company continues to push its ad business, some employees and industry experts worry about the impact on Instagram's relationships with large grocery retailers who themselves are building their own ad businesses. And finally, Google clarified yesterday that it will not delete YouTube accounts with videos as part of its Gmail purge. We reported earlier this week that inactive Google accounts will soon be wiped out after two years, leaving many people questioning the fate of old YouTube content.

Starting point is 00:08:15 While inactive Gmail accounts and their contents will be yeeted after two years, YouTube content and channels will not be affected by the policy change. The main reason? Well, videos on YouTube can be monetized. And they're even more profitable when they don't have to share the revenue with the absent creator. If you have some news from your company you think our listeners should know about, let us know on our tips page today in digital.com slash tips or tap pitch us a story in the show notes.

Starting point is 00:08:46 See you tomorrow.

Today in Digital Marketing - The 1% Test That Has the Ad Industry Holding Its Breath

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