ClickZ Digital Ad Platform Newsletter - 10.10.2024

Everything ad platforms need to know, fast.

Author

Sophie Bruxner-Randall
October 10, 2024 • Estimated Reading Time: 7 minutes

Ad Week New York 🎤

ADVERTISING INSIGHTS
✨ Fresh Insights from AdWeek 2024

Missed AdWeek 2024 in New York? No worries! Chair of Contentive Lee Arthur attended, capturing fresh insights. Here's a snapshot of what you need to know:

  1. Transition to Profit-Focused Metrics: The shift from traditional ROAS to profit-driven metrics emphasizes the need for DTC marketers to evaluate the true impact of each channel. This aligns with findings from Fospha's latest report, highlighting the importance of optimizing customer acquisition across platforms like Meta, TikTok, and Snapchat.

  2. First-Party Data Utilization: Emphasizing first-party data is crucial for creating personalized advertising experiences. As brands enhance their omnichannel strategies, leveraging this data will be key to delivering consistent messaging across all touchpoints.

  3. Full Funnel Measurement Challenges: Understanding how different channels contribute to conversions is increasingly complex. The insights shared at Adweek emphasize the necessity for sophisticated full funnel measurement tools and strategies.

  4. Platform-Specific Strategies: With unique strengths across platforms, DTC marketers must adapt their approaches accordingly.

Specialty Bites 🍪

Google is innovating by integrating ads into AI Overviews, a move that could reshape search advertising. This strategic step aims to monetize AI search results, similar to Microsoft's approach with Copilot. By placing ads below AI-generated responses, Google is leveraging its industry prominence to attract advertisers.

The challenge lies in maintaining user trust, especially after initial hiccups with misinformation. Google's efforts to improve accuracy are crucial for the long-term success of AI Overviews as an ad channel. As an advertiser, you might find the prominent placement of AI Overviews appealing, offering high discoverability for sponsored products. However, it's essential to consider the potential costs and the evolving landscape of AI-driven advertising.

Amazon Prime Video plans to increase ad slots by 2025, following Netflix and Disney's tiered services. This move aims to fund content investment. Despite initial backlash, Amazon's ad-supported reach in the UK is 19 million viewers. The strategy reflects a growing trend in streaming services.

Webinar Wrap 🎧

This week, we attended Fospha's pre-peak webinar on Acquiring Customers Profitably During Peak Period. Here's what we learned:

  1. Competition is hot – so be prepared

With the ad economy rebounding and cross-channel CPA up 13% YoY, brands need to step up. Dan Sava compared Peak Period to the Olympics—each year, competition gets tougher, and brands need to start preparing early to stay competitive.

  1. Go full-funnel to unlock scaling potential in Paid Social

There is still huge headroom for brands to scale Paid Social, but there’s a knack to creating a sustainable approach. A full-funnel strategy. Henry Linney shared how Seraphine boosted returns by investing more in Paid Social Consideration and Awareness, while Dan Sava highlighted Nike’s method of educating customers early to ensure they’re ready to convert by Black Friday.

  1. Don’t ignore TikTok

The panel highlighted the huge value in TikTok’s seamless consumer experience, from discovery to purchase. Dan Sava added, “Most, if not all, brands should try it.”

🎥 Watch the full webinar here!

More to Discover 🌟

Facebook advertising agencies can stumble in three key areas, but fear not! Here's how to avoid common pitfalls and boost your eCommerce success:

  • Audience Targeting: Agencies often miss the mark with targeting that's too broad, too narrow, or outdated. Precise segmentation and lookalike audiences are your secret weapons for reaching the right people at the right time.

  • Ad Creative and Copy: Bland ads won't cut it! Invest in dynamic, visually appealing creatives that resonate with your audience. Skilled professionals and AI tools can help craft engaging ads that boost click-through rates.

  • Budget Management: Don't let inefficient spending drain your resources. Embrace AB testing to identify high-performing ads and optimize your budget for maximum ROI. Groove Commerce's expert strategies have doubled revenue for clients like Strobels Supply. Audit your agency's performance and consider a free website audit with Groove for top-notch results!

Social ad spending is focused on low price-point products, targeting younger audiences. Media and entertainment use social media for cost-effective ads amid industry challenges. Retail and CPG lead in social ad spend, driven by competition from online challengers. This trend highlights the evolving landscape of advertising strategies.

Performance Platters 🍽️

Generative AI is transforming marketing by enabling rapid, personalized content creation. Brands like Nike and Coca-Cola leverage AI for efficiency and engagement. However, human oversight is crucial to avoid missteps. Successful campaigns blend AI with creativity, ensuring authenticity and alignment with brand values. Proceed thoughtfully for optimal results.

Brands face "deal fatigue" as constant sales events pressure budgets and loyalty. To stand out, they innovate with exclusive products, tiered discounts, and added value like loyalty points. Despite challenges, Prime Day remains crucial. Adaptation is key in navigating this evolving retail landscape, ensuring sustained customer engagement and growth.

Retailers are starting holiday promotions earlier due to inflation and a shorter shopping season. With a focus on budget-friendly options and early deals, marketers aim to capture consumer interest. Enhanced in-store experiences and creative delivery strategies are key to building customer loyalty and adapting to economic challenges.

ClickZ is a Contentive publication in the DTC Ecommerce division