With reports percolating about Amazon’s increasingly clear emergence as a third party to Google and Facebook’s dominance of the digital ad market, the e-commerce behemoth’s old-school counterpart is reportedly taking a look at the action itself.
While Sales Growth Rate Slows, Amazon Marketplace, Cloud, and Ad Businesses Point to Long-Term Prosperity
For brands hoping to compete with Amazon (and potentially looking on with relief at a sign of fallibility from their digital rival), the company’s earnings report brings the news that Amazon Marketplace, where third-party sellers can reach customers, is doing more than twice as much in sales as Amazon’s first-party retail platform. Marketplace is troubled by bad practices and fake reviews, and its prosperity suggests the growing challenge for brands to get customers to even go to their sites at a time when Amazon is essentially the homepage of the commerce-oriented Internet.
Not only did Facebook’s “Research” app, which paid 13- to 35-year-old users $20/month to access their search history, emails, and private messages, set off every imaginable alarm on the this-will-look-bad-when-the-exposé-comes-out PR radar (one of the world’s most powerful corporations must be lacking one of those), but the app also blatantly violated the terms of Apple’s Enterprise Developer Program, which proscribes distributing apps to consumers. It probably didn’t help that Facebook was searching tweens’ data for dirt on its competitors.
It will likely take a significant downturn in spending or overall economic well-being for Big Tech to feel some major financial pain. And while great for Google, Facebook, Amazon, and Apple, that’s got to be concerning for industry watchdogs wondering whether these businesses are too entrenched in digital search, advertising, and commerce to be challenged—because the past year was not hot for Silicon Valley, and yet the presses keep printing dollars.
While the move indeed indicates that Facebook’s chief executives are looking to centralize acquired properties that once operated with relative autonomy, the integration also marks a response to growing concerns over user privacy. Under this new technical configuration, all the messaging platforms will be endowed with end-to-end encryption, warding off the possibility that people other than those taking part in conversations will ever read messages sent on the platforms.
Boosting its appeal beyond the reams of consumer data and stranglehold on search that make its digital advertising business the most expansive in the world, Google is increasingly executing campaigns for advertisers, deploying both automation and its own ad experts to get the job done.
Making a big splash in privacy, the ongoing story that has dominated location data-based marketing buzz in 2019, DuckDuckGo, the search engine that does not store user data in order to sell pricey ads, announced that it is using Apple’s MapKit JS to power searches. While the search engine’s results are sought out by far fewer users than search industry leader Google’s, the growth DuckDuckGo is experiencing further validates the impression the tech media has practically been screaming about this year: The winds on privacy are definitively changing, and data-driven companies that fail to heed those changes are in for quite a storm.
Brian Bowman: There’s an emerging trend in the advertising industry—for the first time, brands are shifting significant mobile advertising budgets from Facebook ads to Google Universal App Campaigns (UAC). While Facebook advertising has largely dominated mobile marketing budgets, this migration of budgets to Google’s platform has been a helpful shift to diversify risk tied to any single platform. Why is this shift happening now, and what does it mean for brands?
SPONSORED, by Neil Sweeney, CEO of Freckle IoT / Killi: The takeaway for 2019 will be consent management. Why is this going to be the trend? Two reasons — the first is because consent management is nonexistent in today’s technology stacks (and, no, the catch-all ‘do you accept’ button will not be sufficient moving forward for consent management). And, second: a compliance/privacy tsunami will bear down on the entire world (not just advertising) in 2019. Every trend in 2019 will tie back to a company’s ability, or inability, to check the box on consent management.
Mihm to Blumenthal: Absent a messaging competitor, even a handful of conversations with real customers make businesses *think* Facebook is where the party is. In reality, as you and plenty of others have found, 90% of actual leads are coming from Google. And a serious chunk of that 90% comes directly from Google My Business. Per my prediction, Google is *just* starting to push the “Message” CTA to consumers. And I think the floodgates are about to open.
On this week’s LBMA podcast: Facebook files new patents, JoAnn taps Teemo, Favendo at Frankfurt airport, Google Map’s “For You,” Domino’s hotspots, Mariott + PepsiCo go virtual reality art. Special guest: Gabriel Bedoya – The Insights Company.
In this Q&A, Civil co-founder and CEO Matthew Iles, Vivian Schiller, CEO of the Civil Foundation, and Matt Coolidge, co-founder and head of marketing at Civil, detail how their decentralized and community-owned journalism network can be a realistic answer to the “duopoly” of the giant Google and Facebook search and social platforms.
What exactly did Facebook do wrong, and what do its supposed wrongs portend for the future of data-driven, and especially location data-driven, marketing? Here are some major takeaways pertaining to future legislation, likely consumer reactions, and the distinction between data selling and sharing.
Though their terms are not identical, in essence both GDPR and CCPA are designed to give consumers the power to stop companies from collecting personal data, to review all personal data a company may have collected, and to request deletion of any stored data. Both regulations strike a major blow in favor of the concept that ownership of personal data ultimately resides with the individual and not with companies who may profit from it.
Platforms, brands, and vendors benefiting from the reams of location data used to hit consumers with highly targeted ads should be paying attention to a change suggested by Google and Facebook’s appearances before government authorities, a New York Times exposé out Monday, and most importantly the impending arrival of GDPR-like legislation in the United States: 2019 will be the year privacy actually matters, posing a potentially devastating threat to the status quo of the location-based data and marketing industries.
As the media world continues to expand and fragment, services targeted at local businesses are likewise evolving into a more holistic set of marketing channels. A good example of that evolution can be seen at ThriveHive, as we discussed with the company’s newest member and longtime Street Fight contributor, David Mihm, on the latest episode of Heard on the Street.
For marketers looking to capitalize on the video boom, Street Fight has the latest from GroupM’s second annual State of Video report. The highlights include continued difficulties with measurement, emerging options to target effectively across channels, a look at Amazon and Facebook’s quest for domination, and social video’s fallibility and how brands can overcome it.
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