Google’s New ‘Topics’, Ad Spend Increases and Social Commerce Wins


Jess Alien | 31.1.22

Here’s your round-up of all the mobile and digital marketing updates from January.

Issues introduced by Google to replace the FLOC proposal

Google’s plan to phase out third-party cookies in Chrome is not new However, Google initially proposed Federated Learning of Hearts (FLoC) as its post-cookies plan and has now moved on to a new privacy sandbox option called Topics. Advertisers have spent a lot of time researching the effects of FLOC and how to best navigate it once it arrives. Now, this process needs to be repeated with the subjects as they try to predict how the future of cookies advertising will work and affect their industry.

Things are expected to be less specific than FLOC, which was already less specific than third-party redirecting of cookies.

Topics aren’t too different from contextual advertising, which isn’t new Is this going to be enough for the industry to improve in new, innovative ways? Notably, it was launched a few months before the industry began converting their services in preparation for the 2023 full cookie phaseout.

The idea is that consumers will have a choice where they will be able to see and move things. If they want, they can disable the feature completely.

The industry fears that the opt-in rate will be lower, as has been the case with Apple’s recent privacy update. Its effects can be equally detrimental to both large and small businesses.

But why the change? Well, the replacement of the FLOC proposal with the issues indicates that balancing both privacy and personalization is a priority in the post-cookie age because Google is responding to the concerns raised about this change.

Fortunately for businesses and advertisers, cookies do not affect all in-browser advertising. Social media, streaming video and audio and paid search are not included. This means that marketers have the opportunity to focus on these.

In 2021, US advertising spending increased 26%. Global mobile advertising spending grew 23% year-over-year

In 2021, U.S. advertising spending reached $ 436.3 billion, the strongest performance in the industry in ten years. This happened until the cookie phased out (Google plans to phase out third party cookies in 2023). In light of this, the lion’s share of advertising spending will probably turn into a clean room solution between first-party data collection and other methods.

Data Clean Rooms is a service that enables different businesses to store their first party data where it will be anonymous, aggregated and merged. They’re cropping up all over the place – even from Amazon’s choice.

Meanwhile, according to App Annie’s recently released State of Mobile 2022 report, global mobile advertising spending has hit 295 billion in 2021 and will reach $ 350 billion by the end of 2022. Of the 3.8 trillion hours spent on mobile last year, 70% was spent on social and photo or video apps, with TikTok and Facebook leading the way.

Social trade is expected to beat e-commerce

Accenture predicts that the global social commerce industry will grow three times faster than traditional e-commerce. In 2021, the industry was valued at $ 492 billion, and by 2025 it is expected to reach 2 1.2 trillion. This impressive growth is likely to be attributed to both Gen Z and Millennials, who together make up 62% of global social trade spending. Point

Businesses are constantly investing in social commerce to stay ahead of the curve, which is one of the reasons behind the rapid growth. It is understandable that businesses are shifting their focus to social commerce as customers are increasingly spending time on social platforms. Here consumers have access to everything from their contacts with friends and family to their news and entertainment. Then why not trade?

For clarity, Accenture’s report refers to social commerce as an integration of social experience and e-commerce transactions, enabled by a single platform, a platform for buying.

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