5 predictions on the future of digital advertising, from Meta to Google, Apple, and Amazon
In an era where change is the only constant, the digital advertising landscape is poised for some groundbreaking shifts. Insights shared by analyst, Andrew Lipsman, during a recent virtual summit, shed light on pivotal movements we can expect. Here are five predictions that could redefine the industry:
- #Meta’s Potential Foray into Search: With AI and the social graph at its disposal, Meta is uniquely positioned to make a significant play in the search domain, tapping into the evolving integration of search within social platforms. This move is anticipated as a strategic pivot to leverage retail media and social search trends.
- #Google and YouTube: Google may soon recenter its retail media strategy with YouTube as its cornerstone. The synergy between streaming TV, closed-loop measurement, and YouTube’s vast audience presents an unparalleled opportunity for Google to innovate within retail media.
- #Apple’s Ambitious Leap into CTV: With eyes on premium, high-quality advertising, Apple’s potential acquisition of NBA rights could catapult it into a leading position in the Connected TV (CTV) space. Sports advertising represents a premium environment that aligns perfectly with Apple’s brand ethos.
- #Amazon’s Television Network Acquisition: To expand its ad-supported inventory, Amazon might acquire a major TV network. This strategic move would not only bolster Amazon’s CTV footprint but also enhance its ability to offer diverse advertising solutions.
- #Microsoft and Instacart Partnership: A potential acquisition of Instacart by Microsoft could signal a significant push into in-store retail media. Instacart’s neutral positioning and innovative approach to connected stores present a unique opportunity for Microsoft to deepen its retail media capabilities.
Why Does This Matter?
These predictions underscore a broader trend: the blurring lines between digital platforms and traditional media, and the increasing importance of integrated, multi-channel advertising strategies. As these tech giants pivot and adapt, the implications for marketers, advertisers, and consumers will be profound.
The future of digital advertising is on the brink of a major transformation, with retail media, CTV, and search at the heart of it. The question now is, how can businesses and marketers best prepare for these shifts?
Most brands with an established customer base will consider launching on Amazon at some point. And why not?! With over 310 million active users, it’s the most popular e-commerce marketplace in the U.S. AND chances are a lot of your customers frequent Amazon already for online shopping and may even be wondering if your brand has a presence there. For brands that don’t have an Amazon storefront, two things can happen if a customer searches for your products on their search engine: Customers who can’t find your brand on Amazon will return to your website and purchase. Worst case scenario: They end up buying a competing product from Amazon instead. To battle these issues, the Pilothouse Amazon team sees a lot of brands take these two approaches when selling on Amazon: 1. Focusing on branded keywords Build it, brand it, and forget it. A lot of DTC brands will create an Amazon storefront, target only branded keywords in their ad campaigns, and then leave it at that. To do this, you’ll need to build an optimized Amazon listing, send in some inventory, and add some advertising dollars on branded keywords so you show up first in search results. Branded campaigns are a great way for your existing customers to find you with ease — Just make sure your competitors aren’t stealing away your customers! This can be a viable option for brands at a decent scale who don’t have the bandwidth to take a more comprehensive approach to Amazon selling. While this can add some profit to your bottom line, with this approach your Amazon revenue will only ever be as large as your branded presence. This means you're: ✅ Only targeting customers who are aware of your brand and products ❌ Not acquiring brand new customers 2. Focusing on generic keywords Now let’s talk about generic keyword advertising. A generic term is a non-branded term. For example, if you are selling a Nike Pegasus Trail Runner, “trail runner” would be a generic term and “Nike trail runner” would be a branded term.. Ranking well for generic keywords is a major win since these shoppers are net new customers for your brand with a strong intent to purchase. This approach is an investment at first but has the potential to result in huge gains. Here are two ways to achieve growth: Slow Profitable Growth In addition to branded campaigns that generate a high return, generic campaigns are built slowly and consistently on long tail low volume keywords that generate a profitable ACOS (Advertising Cost of Sale). Minimal budget is invested into ranking (high volume generic terms) in order to maintain a target-ACOS that is profitable to the brand. Fast Unprofitable Growth Allocate the bulk of your budget to campaigns that are designed to generate rank and combine this with an aggressive discounting and pricing strategy to boost CVR. Purposely running the account below a profitable Total Advertising Cost of Sale is the fastest way to achieve sales volume. Once volume and rank is achieved, the account is shifted to a profitable position. This is a cash investment approach and can generate great results, (provided the business is in a position to invest). Ultimately how and when you approach Amazon depends on the current goals of the business, the current cash scenario, and the long term goals for the Amazon channel.
As 2024 approaches, the digital advertising world stands on the brink of a significant transformation. The anticipated phase-out of cookies by Google has been a topic of discussion and speculation for years, yet the ad industry seems to be in a holding pattern, with many clinging to old habits as the deadline looms closer. Despite Google's history of delaying its timeline, the move towards a cookieless future is inevitable. Data from 33Across shows that all 10 industries tracked continue to rely heavily on cookies for programmatic ad buys, suggesting a slow adaptation to alternative identity solutions. This resistance to change could spell trouble, as the deprecation of cookies will not only affect tracking but will also necessitate a shift in how we approach digital advertising strategies. The Reality of Transition The transition is set to trigger a consolidation in the identity provider market, with a current oversaturation of services unlikely to be sustainable in a post-cookie environment. This consolidation could lead to a stronger, albeit smaller, group of providers emerging to lead the way in the new era of digital advertising. Apple's Move into Advertising Interestingly, Apple's foray into advertising appears to be gaining traction, with the company making moves to establish its own demand-side platform (DSP). This development is not only indicative of Apple's ambitions in the advertising space but also highlights the evolving landscape where privacy and advertising strategies need to coexist more harmoniously. The Path Forward As professionals in the marketing and publishing industries, the time is now to pivot and prepare. Embracing new technologies, exploring alternative tracking methods, and fostering a deeper understanding of consumer privacy will be key to thriving in this new reality. The journey towards a cookieless future may be fraught with uncertainty, but it also offers an opportunity to innovate and redefine the boundaries of digital advertising.