Tinuiti https://tinuiti.com/ Largest Independent Performance Marketing Firm Fri, 17 Jan 2025 16:47:09 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 Google Performance Max: Ad Examples & Tips https://tinuiti.com/blog/search/google-performance-max/ Mon, 13 Jan 2025 01:49:00 +0000 https://tinuiti.com/blog/uncategorised/google-performance-max/
Search

Google Performance Max: Ad Examples & Tips

emily-sullivan-headshot
By Emily Sullivan
Man using Google Performance Max on his computer

Google’s Performance Max campaigns came out of beta more than three years ago, and have grown to be a wildly popular campaign type among new and experienced marketers alike. In this article, we’ll unpack what Google Performance Max campaigns are, how they differ from other campaign types, benefits and best practices, reporting functionality, ad optimization tips, and Tinuiti’s PMax approach.

What is Google Performance Max?

Google Performance Max (PMax) is an automated, goal-based campaign type that enables advertisers to promote across all Google networks, including Google Search, Shopping, Display, YouTube, Gmail, and Maps, from a single campaign. Launched in 2020, PMax is designed to complement existing keyword-based Search and Shopping campaigns, offering a broader reach and deeper automation capabilities to drive better performance across diverse marketing objectives.

Through consolidation of inventories and ad types, PMax reduces complexity while expanding access to ad inventory, formats, and insights that weren’t previously available with other campaign types, like Smart Shopping or Local campaigns. Not only that, but Google is rolling out new updates for PMax on a regular basis. In 2024, Google introduced advanced AI features, asset-level reporting and placement visibility, as well as new A/B testing capabilities and brand guidelines.

Why Use Performance Max?

PMax campaigns leverage Google’s AI to streamline and optimize ad performance. Instead of manually managing multiple campaigns, advertisers provide assets (like headlines, images, and videos) and inputs (like audience signals and goals), and Google automates the ad creation and delivery process. Google’s AI identifies the most effective asset combinations and optimizes them for conversion, showing the right ad to the right audience on the right platform.

Key benefits include:

  • Wide reach: Advertisers can reach potential customers across all Google channels in a single campaign.
  • AI-driven optimization: Google’s real-time analysis of user intent, behavior, and context ensures ads are shown to audiences most likely to convert.
  • Improved efficiency: PMax simplifies campaign management while uncovering new customer opportunities.

How It Works

Think of PMax as a chef: you supply the ingredients (creative assets) and recipe (campaign structure), and Google’s automation cooks and serves the final dish. The system analyzes inputs like goals, audience signals, and creative assets to deliver ads tailored to user preferences and behaviors across platforms.

The automation prioritizes efficiency, constantly learning from real-time data to enhance ad delivery and performance. Google’s AI can even leverage first-party data to predict when a user is most likely to take action, maximizing campaign outcomes.

Who Should Use Performance Max?

PMax is ideal for advertisers seeking:

  • Broad exposure across multiple Google networks with minimal setup.
  • Enhanced performance through AI-driven insights and optimizations.
  • Streamlined management, especially for campaigns with diverse audiences or complex goals.

Retailers, local marketers, and businesses looking to increase conversions and revenue while simplifying campaign operations can particularly benefit from PMax.

For example, one of our clients specializing in software sought to expand their search campaign’s reach and drive more qualified traffic to their site. After evaluating the options, we recommended testing a new Performance Max campaign. We kept their existing traditional search campaigns targeted at highly qualified leads, then helped them set up a PMax campaign targeting highly qualified, qualified, and net new leads.

Initially, the client focused on the holistic client service asset group and allocated a small amount of money to the PMax campaign. When that experimental spend materialized into a growing volume of qualified leads, we expanded our scope. Campaign spend scaled each week, and our targeting advanced to more niche asset groups focused on product categories and size of the organization. By month two, this test campaign had become the client’s most efficient Non-Brand campaign for generating qualified leads, driving 21% more qualified leads than other Non-Brand campaigns.

Insights and Reporting

Although PMax minimizes manual optimization, it offers unique insights into audience behavior, performance drivers, and search trends. Advanced reporting features, including asset performance recommendations and placement visibility, help advertisers fine-tune their strategies for maximum impact.

By combining AI-driven efficiency with cross-channel reach, Google Performance Max campaigns empower advertisers to connect with audiences more effectively and drive stronger business results.

“The Insights piece is a shift from what we have been accustomed to, but Google has slowly begun to provide us with more reports to help us better understand this campaign type. Performance Max aims to look at things holistically—client gives you X budget, and here is X ROI across the funnel. Trusting in Performance Max to do its thing with the signals you give it, and shifting the way we analyze performance, is the biggest hurdle with the campaign type.”

Courtney O’Donnell, Sr. Director, Client Partner at Tinuiti

Key Elements & Specs for Performance Max Campaigns

To maximize PMax effectiveness, it’s essential to understand the key elements, specs, and best practices for each asset type. Here’s a breakdown:

1. Headlines

Brands can create up to 5 different headlines up to 30 characters long, giving them an opportunity to use a variety of messages to appeal to different audience segments. Google will then get to work mixing and matching various headlines with various descriptions.

When writing headlines, remember that you only have a moment to catch the reader’s attention. We recommend starting with using action-oriented language to encourage them to quickly click through. For example, your target consumer may respond better to an emotional headline telling them they can “Save time today,” or they might respond better to a benefit-oriented statement like “Our solutions streamline workflows.” Thankfully, Performance Max will figure that out for you on the back end.

2. Long Headlines

While some ad placements only allow for shorter headlines, others allow marketers to use one long headline that’s up to 90 characters long.

Long headlines should be used to display your most important messaging in a prominent way since they appear instead of the two shorter headlines mentioned above. In some cases, your long headline may even appear without a description included. For that reason, make sure you’re hitting all of your important selling points, building trust, and encouraging people to click through with a compelling call to action.

3. Descriptions

Each Performance Max ad can have up to 5 descriptions that are 90 characters long. This will appear under two different headlines for most types of PMax ads. While your headlines are designed to attract attention, descriptions should highlight your unique value propositions and explain key product benefits. Then, use the remaining 10 or so characters to include a CTA like “Learn more” or “Shop now!”

4. Images & Logos

Performance Max lets advertisers upload up to 20 image assets for three different ad dimensions, following these specifications:

  • At least one Square (1:1) image, minimum 300×300 pixels. Google recommends at least 4 images up to 1200×1200 pixels.
  • At least one landscape (1.91:1) image, minimum 600×314 pixels. Google recommends at least 4 images up to 1200×628 pixels.
  • The option to add portrait (4:5) images, minimum 480×600 pixels. Google recommends at least 2 images up to 960×1200 pixels.

For best results, we recommend using high-quality visuals and engaging in creative testing to ensure the visuals resonate with your audience. The possibilities for creative testing are endless, but we recommend testing images that shows the product in various use cases, or its alignment with a certain lifestyle. Advertisers can also easily try out new creative using Google Gemini, whether it’s a small tweak to an image’s background or a complete reimagining. 

Unlike some social media advertising platforms, Google welcomes text on image assets. Just keep in mind too much text can dilute the messaging behind your image asset. For this reason, Google recommends advertisers upload at least one image asset without significant text overlay.

5. Logos

For certain ad placements, such as YouTube ads, Google will display a square or landscape logo along with ad copy. The recommended specs are as follows:

  • Upload at least one square (1:1) logo, at minimum 128×128 pixels. Advertisers may upload up to five logos as large as 1200×1200 pixels.
  • Advertisers may also upload up to five landscape (4:1) logos, at minimum 512×128 pixels and as large as 1200×300 pixels.

Before uploading your logo, ensure the image is high quality and centered. It’s also important to note Google does not support transparent backgrounds for ads, and all transparent space will be rendered with a white background.

6. Videos

Since they open up more ad placements, uploading video assets for your Performance Max campaign is highly recommended. Videos must follow these requirements:

  • Use HD video
  • Use the MPG-2 or MPG-4 formats
  • Videos must be horizontal (16:9), vertical (9:16), or square (1:1)
  • You may upload at most 5 videos for each of the ratios above
  • Videos must be at least 10 seconds long
  • If you’d like to be eligible for ads on YouTube Shorts, upload at least one 9:16 video between 10-60 seconds long
  • If you’d like to advertise on YouTube, do not upload audio files such as MP3, WAV, or PCM

When designing video ads, remember that less is more. Try to create thumb-stopping interest within the first 5 seconds of your video, and include brand visuals and incentive to clickthrough early. Remember that many consumers are more ad fatigued than ever and liable to stop paying attention just a few moments after seeing an ad.

Additionally, don’t forget to provide captions for your video ads. It’ll make your brand’s messaging more accessible to a wider audience.

7. Call-to-Action (CTA)

Advertisers can also choose a call to action (CTA) to include with an ad. For example, when a user views a video ad it may include a brief slide with a button asking people to “RSVP Now.” Google offers simple pre-set CTAs, or you can create a custom CTA.

In most cases, it’s best to customize your CTA to ensure it aligns with your audience’s motivations and current stage in the marketing funnel. For example, awareness campaigns may benefit from a “See more” CTA, while a conversion-focused campaign may ask the viewer to “Buy Now.”

8. Audience Signals

Audience signals provide Google with insights into your ideal audience based on demographics, intent, and behaviors. It’s completely optional, but it will give Google some initial direction in targeting your campaign.

The best way to get started is to connect your first-party data. For example, you can upload your email list via Customer Match to target customers at the bottom of the funnel, or website visitors for mid-funnel targeting. From there, you can layer in Google’s in-market and affinity audiences to expand beyond your known audience. From there, keep track of which audience segments are performing well and optimize accordingly.

9. Final URL

Finally, provide Google with a destination URL for your landing page. However, this step should not be as simple as copying and pasting a link. At the very least, employ basic landing page best practices to improve page speed and mobile friendliness. Marketers with a more advanced strategy may use more tactics like custom landing pages for each ad campaign or ongoing optimization through split testing.

10. Search Themes

Search themes are a new AI-driven feature within Google Performance Max. Advertisers can give Google up to 25 different topics that are relevant to their target audience, such as “family activities” or “vacation planning.” From there, Google will show your ads for keywords that are related to those topics. It’s not too unlike how phrase or broad match keywords work, but are a little less prescriptive and a little more tangible.

Adding search themes is almost always a net positive for campaigns, since you’re directly telling Google’s AI which topics are interesting to your consumers. This is especially helpful if Google’s AI doesn’t have much landing page copy to reference or if you’re launching a new product with limited information online. However, it can help any brand expand their reach and optimize performance by bidding on more relevant queries.

Best Practices when Setting Up a Performance Max Campaign

Advertisers have compared Performance Max Campaigns to several other campaign types, including Smart campaigns, Social campaigns, and responsive Display campaigns. And while there are elements that bear similarity in varying ways to all of the above, it’s important to consider the functionality and benefits of this campaign type specifically.

Give Performance Max campaigns freedom to function as intended

We’re of the belief that if you are going to test Performance Max you should lean in, and not try to make this campaign something it was never meant to be. Sure, there are tutorials online for finagling a Performance Max campaign to be a Search campaign or a Shopping campaign – it is possible! However, time can be better spent focusing on how to best leverage a campaign that was designed by its very nature to bring all of that together.

Implement audience signals to set automated targeting up for speedy success

Think of audience signals as customer personas that Performance Max uses as your ideal shopper, functioning similarly to lookalike audiences on social platforms. This won’t be the only customer type that your campaign reaches, rather it will be the foundational core upon which other audiences are built—your seed audience.

The audience signals you provide Google are used to determine ‘the right direction’; Google then follows those paths to find additional users it feels your campaign is also suitable for. Audience signals work best when used in combination with your own data and custom segments.

Because you can create multiple audience signals, we recommend experimenting with different signals to see how each performs. Consider including the following:

  • Remarketing
  • Customer Match
  • Search Themes
  • Interests
  • Foundational Demographics

The impact of audience signals is significant. We recently worked with a specialty apparel brand that ran multiple overlapping PMax assets groups segmented by brand. This resulted in placements that reached the right audience, but didn’t always align with search intent. Our paid search team helped them restructure to an audience-first approach using audience signals, search themes, and first party data. Then, we created custom tailored creative for each audience. 

The results were astounding – not only did clickthroughs increase by 19%, their onsite conversion rate increased by 44%. For that reason, we highly recommend most brands utilize audience-first targeting approaches on PMax.

Decide if you’ll use Final URL expansion

If you want to give Google even more control with Performance Max campaigns, similar to dynamic search ad campaigns, you can allow Google’s AI to choose the landing page URLs for each of your ads. LP exclusions are available if there are specific pages you never want used; these can include exclusions based on URL parameters (ex. blocking a full sub-folder) or individual landing pages.

While this type of testing for PMax is still in beta, at Tinuiti, we recommend using A/B Experiments to test final URL expansion. 

Decide whether the New Customer Acquisition goal is right for you

The new customer acquisition goal, also available for Search campaigns, presents an exciting opportunity for advertisers looking to target new-to-brand audiences. Using this goal, advertisers can choose from the following bidding options:

  • New Customer Value mode: Campaigns are optimized to bid higher for new customers (not available for store goals)
  • New Customer Only mode: Campaigns are optimized to only bid for new customers
  • High Value New Customer Mode (Beta): Campaigns are optimized to bid higher for high value new customers than regular new customers and existing
  • High Value Win-Back Mode (Beta): Campaigns are optimized to bid higher for high-value lapsed customers than for regular lapsed customers

Define Asset Groups

Keep all your creative organized by breaking out thematically-similar or same-audience assets into their own asset groups, using multiple asset groups for each campaign. Asset groups help you to give Google the best array of options to choose from, while ensuring you don’t get a ‘mixed bag’ of creative for a given ad.

Think of building out your asset group as packing a lunch, except the lunch is for Google. In each asset group you’ll want to pack a nice selection of images, videos, headlines, logos, and other textual elements. The higher-quality assets you feed Google, the better your ads will look.

If you are a promotional brand, you should consider creating evergreen asset groups and promotional asset groups in order to easily shift creative between promotional and non-promotional periods.

Don’t turn off your Search campaigns

Performance Max is designed to complement your existing Search campaigns, not replace them. In fact, according to Google’s latest claims (2024), Performance Max delivers 8% higher return on ad spend (ROAS) than search strategies alone. There is some campaign overlap on non-exact match keywords you’ll have to consider to safeguard against self-cannibalization.

We recommend that for any keyword for which you’ll want to have complete control and in-depth reporting, you ensure it is an exact match keyword in Search. Exact match keywords that are identical to the search term are prioritized over any other broad or phrase keyword or a Performance Max campaign. Also, monitor Search performance after launching to see if broad match keywords dropped off for a specific category once PMax was launched.

Consider brand safety

The lack of control over what ads will show where, and with which creative, is what makes many brands nervous about Performance Max campaigns. That said, despite it being true that there is less control overall, you can run a placement report, sort destinations by impression volume (unfortunately you cannot see spend by placement), and then exclude any sites you don’t want to show ads on. Exclusions are set at the account level.

Tinuiti’s Google Performance Max Approach

Thanks to Performance Max’s unparalleled audience targeting that leverages the most sophisticated machine learning, our teams consider Performance Max the perfect complement to your current Search strategy. We develop Performance Max campaigns in tandem with existing Paid Search efforts to minimize potential cannibalization or duplicated targeting. Here’s how we do it:

1. Adopt an Audience-First Approach

Our audience-first strategy focuses on understanding and prioritizing the needs of your target audience to create impactful campaigns by:

  • Establishing goals and metrics (e.g., new customer growth, revenue, brand awareness).
  • Defining key audience segments using three pillars: first-party audiences, search themes and demographics, and in-market and affinity audiences.
  • Collaborating with Lifecycle Marketing experts for refined audience segmentation and list automation.

When setting up campaigns, a one-campaign-to-one-asset-group ratio allows clear performance insights, such as how a “women’s winter jackets” campaign performs independently. However, over-segmentation can limit data, while overly broad grouping reduces insights into sub-categories. Striking the right balance is critical and requires close collaboration with stakeholders to decide what to run through PMax and address other strategic considerations.

2. Optimize Your Creative

Compelling, high-quality creative assets are vital to Performance Max success. Tinuiti helps clients test headlines, images, and more to find what resonates with target audiences. Our video creation service offers tailored support for PMax campaigns, using existing assets or producing new ones from scratch.

3. Control Your Product Feed Levers

We test and refine feed attributes—like titles, descriptions, and images—to improve visibility and revenue. A scheduled cadence for feed optimizations and tests helps maintain strong campaign performance.

4. Tinuiti’s Enhanced Performance Max Reporting

Tinuiti’s proprietary Performance Max reporting offers deeper insights than standard PMax tools. These customized reports analyze spend and revenue distribution by channel and track performance changes after bid or creative adjustments, enabling more informed, data-driven decisions.

Conclusion

In addition to the benefits Google Performance Max offers today, it will continue to evolve as AI advances, future-proofing your marketing strategy. Simply put, Google isn’t going to let one of their key products fall behind. The time and energy you put into learning and optimizing Performance Max campaigns will continue to be time well-spent for the foreseeable future.

Wondering how your Google Ads campaigns stack up? Check out our most recent Digital Ads Benchmark report to see how factors like AI and new video advertising channels influenced ad spend. Or, if you’re ready to speak with an expert about your Google Ads strategy drop us a line and we’ll be in touch!

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>
Media Update: Disney-Fubo Agreement, YouTube Pilot Feature, Holiday Shopping Increases https://tinuiti.com/blog/paid-media-updates/media-update-jan-9-2025/ Thu, 09 Jan 2025 17:33:00 +0000 https://tinuiti.com/?p=21045
Paid Media Updates

Media Update: Disney-Fubo Agreement, YouTube Pilot Feature, Holiday Shopping Increases

By Tinuiti Innovation & Growth Team
media update collage 1/8/25

Key Highlights

  1. TV & Audio: We predicted consolidation for 2025, and it’s already kicked off with a Disney-Fubo agreement and a new unified ad buying tool from Comcast.
  2. Paid Social: Meta announces changes to its content moderation practices, and TikTok prepares for its Supreme Court hearing this Friday.
  3. Display & Programmatic: YouTube is piloting a feature, Watch With, allowing viewers to watch commentary and analysis of live games and events from select creators.
  4. Search: Google outlined its proposed remedies in the DOJ monopoly case, focusing on flexibility, choice and safeguards. 
  5. Consumer Economy: Holiday shopping outlays increased by almost 4% YoY, underpinned by strong GDP growth and significant progress on the inflation front.

TV & Audio

harry-browne_headshot
Harry Browne VP Innovation

Linear sports viewership started strong in 2025 with impressive numbers for the first-ever College Football Playoff quarterfinals, which averaged ~17M viewers per game over the New Year’s holiday. Despite the upcoming presidential inauguration, news viewership has been relatively modest in recent weeks, while entertainment – the largest bucket by total audience – remains consistently down year-over-year.

Linear P2+ Audience chart

1. If you were a regular reader of this forum in 2024, you likely recall that one of the major predictions we had for the future was streaming consolidation. Less than a week into 2025, we’ve seen two major developments that confirm this trend.

On Monday, Disney announced it would merge its Hulu + Live streaming offering with competitor Fubo, with Fubo dropping its lawsuit against Venu, the proposed sports streaming JV from Fox, Warner Bros Discovery, and Disney-owned ESPN. Terms of the agreement were complex, with Disney taking 70% ownership of Fubo, offering a $145M loan, and participating in a $220M cash payment with Fox and WBD to end the lawsuit. After Fubo had won an injunction against the JV last summer, the fate of Venu had been up in the air until this agreement was announced (just moments before oral argument was set to begin in a federal appeals court).

However, just days later, Disney, WBD, and Fox decided not to move forward with Venu at all. Instead, the companies will “[focus] on existing products and distribution channels.” The announcement came as a surprise, not only because of the resolution of the legal dispute, but also because viewer appeal was expected to be significant, with Venu slated to offer NFL, MLB, NHL, and NCAA athletics coverage at prices meaningfully below traditional cable or YouTube TV. While the aggressive consolidation Venu promised will have to wait, the Fubo / Hulu + Live combination will still be formidable. It will have ample opportunity for success, as live sports viewership on digital pay TV is projected to grow rapidly over the next few years.

Diigital Pay TV Live Sports viewers chart

In addition to consolidation for viewers, Monday also saw an announcement of consolidation for advertisers. FreeWheel – Comcast’s ad management platform – announced the launch of a self-serve ad-buying platform called Universal Ads. The new platform, which will enter alpha testing before a broader roll-out in H2, is geared towards small to mid-sized advertisers with a goal of simplifying CTV ad buying. Universal Ads has an impressive array of launch partners, including A+E, AMC, DirecTV, WBD, NBCU, Fox, Paramount, and Roku. Importantly, Disney, Netflix, and Amazon (owners of the four most-watched non-YouTube streaming platforms) are not part of the new offering.

Universal Ads graphic

For advertisers, these developments are further evidence that 2025 will be the year of consolidation. More SMBs competing for CTV inventory could lead to increased CPMs in the open market, especially after an extended period of competition pushed those rates down. Meanwhile, greater partnership between the publishers – not to mention JVs like Venu or outright combinations like Hulu + Live and Fubo – could have a similar effect as publishers may coordinate their offerings. Tinuiti has recognized these pressures, and fortunately for our clients, we access most of our CTV inventory through prenegotiated deal terms with our publisher partners that leverage our size and industry gravity, ensuring that we consistently access market-beating CPMs. With that said, advertisers should pay close attention to developments in this space over the course of 2025, as further consolidation should be expected.  |  Business Wire, eMarketer

2. The context for streaming consolidation is, of course, the long decline of linear. While streaming networks grow and grow, the number of highly penetrated cable networks continues to shrink. In 2021, almost half of cable networks reached a majority of US households; today, only about a quarter of networks can do so. Traditional cable now only has a 39% national distribution, leading one media buyer to remark: “That’s not national anymore, that’s local.” Those viewers have shifted over to streaming, leading to explosive growth for many different platforms.

National Cable Coverage by year

While the obvious conclusion advertisers should draw is to invest in CTV in 2025, brands should be careful not to write off linear TV entirely. Though the reach of individual linear networks has declined, it is still very possible – and even efficient – to reach massive audiences on linear networks through a more diversified investment. Said one buyer to AdAge, “We can get the same reach through the TV set this year that we did last year, and the year before. But if we think we’re getting the same reach by doing the same buy every year, that’s where we’re mistaken.” Rather than investing heavily in linear upfronts on a handful of networks or programming, advertisers should stay dynamic with their linear dollars and access a variety of inventory types: national-locals, rated and unrated networks, diverse dayparts, and more. A broad campaign that accesses many smaller pools of viewers rather than a few large ones can result in high reach at the right price, meaning linear can remain a powerful channel for advertisers even amid its secular decline with audiences.  |  AdAge, eMarketer

Paid Social

jack johnston headshot
Jack Johnston Senior Director Innovation

1. This week, Meta unveiled a transformative shift in content moderation across its platforms. The new “Community Notes” system, set to replace Meta’s third-party fact-checking in the U.S. by the end of Q2 2025, hands moderation responsibilities to users, fostering a more transparent and community-driven approach. In tandem, Meta has relaxed restrictions on sensitive topics, narrowing its enforcement focus to illegal and high-severity content violations. These moves align with Meta’s goal to enhance user empowerment and mirror strategies seen on competitor platforms like X.

For advertisers, the implications could be significant. On one hand, with reduced content restrictions, campaigns may face fewer hurdles during approval processes, enabling more creative flexibility. Personalized user feeds also unlock new opportunities for precise targeting. However, user-driven moderation introduces unpredictability, with ads potentially flagged as misleading or controversial by the community. Coupled with relaxed content guidelines, this could heighten brand safety concerns, particularly in markets where enforcement varies.

Advertisers should view these changes with cautious optimism. While the potential for improved ad performance is encouraging and users will be able to curate their feeds, advertisers should remain vigilant in community management. Lean into Meta’s brand safety tools, leverage tailored block lists, and maintain a feedback loop with your Meta team to navigate this transition effectively. As always, staying proactive and adaptable will be key to maximizing these opportunities while mitigating risks.  |  NBC, Meta, PPC Land

2. On Friday, January 10th, the U.S. Supreme Court is hearing a landmark case on the potential nationwide ban of TikTok, currently slated for January 19th, 2025. The hearing comes following December’s ruling by the U.S. Court of Appeals that the law would be upheld, requiring ByteDance to divest its interest in TikTok or risk the app getting banned. The Supreme Court has affirmed that it plans to issue a decision prior to the current January 19th deadline. The outcome could reshape digital platform regulation in the U.S. and has sparked significant public interest, with polls showing mixed support for a ban.

As discussed in last month’s newsletter, TikTok’s uncertain future is a call to diversify strategies. Although the app will not fully disappear on January 19th if the ban is upheld, advertisers will be best equipped if they have contingency plans on standby and can pivot if performance begins to decline.  President-elect Trump has also tried to make a plea to delay the deadline until he is in office, but the request was denied, creating further speculation about what the future of the app could look like under the incoming administration. Brands should monitor developments closely, and remain flexible in adapting their media plans to this rapidly evolving landscape.  |  Forbes, USA Today, YouGov

Display & Programmatic

brian-binder_headshot
Brian Binder Senior Director Innovation

Last year, we talked a lot about YouTube, and for good reason. It had a standout 2024: it became the top platform for podcasts, surpassing both Spotify and Apple; it also maintained prominence as the number one streaming platform, capturing over 10% of TV watch time. YouTube’s increasing role in sports viewership was a big driver of this growth, with watch time growing by 30% YoY. During the Olympics alone, it amassed 40 billion minutes of watch time, nearly half coming from TV screens.

While YouTube is still the go-to for highlights and analysis, it’s now looking to expand its live-stream coverage beyond NFL Sunday Ticket with a new pilot, Watch With. The new pilot, akin to Monday Night Football’s Manningcast, lets viewers experience live games and events on YouTube, with creators delivering real-time commentary, insights, and reactions.

While there are limited details on the pilot so far, we’re keeping a close eye on this pilot for a couple of reasons. First, we expect it to be one of several 2025 announcements from YouTube focused on sports and live-streaming. Second, though no ad opportunities have been revealed yet, YouTube’s creator-driven platform and the growing trend of younger viewers turning to social media for sports content could be the foundation for exciting, unique opportunities for brands to engage with live sports fans through sponsorships or paid placements.  |  WSJ, Nielsen, TubeFilter, YouTube Blog

Michelle Merklin headshot
Michelle Merklin VP of Paid Search Growth & Innovation

Right before the Christmas holiday, Google shared a summary of its proposed remedies to the DOJ’s online search distribution monopoly case. The company was clear that it intends to appeal the Court’s decision, but is first required to file proposed remedies. Google’s message has been consistent: “People don’t use Google because they have to — they use it because they want to,” according to Lee-Anne Mulholland, VP of Regulatory Affairs at Google. 

In its blog post, Google also called out the rapidly changing Search landscape, noting increased competition from AI-powered search services, such as ChatGPT Search and Perplexity. Additionally, Google emphasized how the DOJ’s current proposal would “harm American consumers and undermine America’s global technology leadership at a critical juncture,” by requiring Google to share people’s private search queries, and by restricting innovation. 

Google’s proposed remedies included the following primary themes: 

  1. Browser agreement flexibility: provide greater flexibility to browser companies (ex: Apple, Mozilla) by allowing for multiple default agreements across different platforms and browsing modes, and the ability to change their default search provider at least every 12 months.
  2. Android contract flexibility: greater flexibility for device makers to preload multiple search engines (ex: Google, Bing) and any Google app independently of preloading Search or Chrome.
  3. AI competition safeguards: Android partners can license Google Play, Search, and/or Chrome without also licensing Google’s Gemini Assistant mobile app, essentially meaning Google cannot use its business agreements to block or discourage competition from other AI chatbot providers. This is to “address the potential for generative AI chatbots to become substitutes for general search engines,” per the full proposed final judgement case filing from December 20, 2024.  

The hearing is expected to begin in late April 2025.  |  Google blog, Proposed final judgement case filing, Search Engine Land

Consumer Economy

Sean Odlum
Sean Odlum CPO

1. The Black Friday-Cyber Monday shopping period, which was up 3.5% YoY, proved to be a reliable leading indicator for the holiday season – American shoppers increased their total outlays from Nov 1st – Dec 24th by 3.8% YoY, with restaurant spending up over 6%, online sales up over 6%, and in-store sales up almost 3%.

The overall picture is composed of a bifurcation across income brackets, with most of the gains driven by households making over $100k. The chief executive of a pen manufacturer said, “We started to notice this trend where there was a real bifurcation in the market between the $50,000-and-below consumer in the U.S. market and the $100,000-and-above consumer,” a sentiment that was echoed by observers across numerous industries.

The overall increase in consumer spending is underpinned by strong, broad-based economic growth in the US: GDP growth for 3Q was revised upward to an annualized 3.1%, reflecting an acceleration from 2Q; however, the Atlanta Fed’s real-time GDP estimator suggests 2.4% growth for 4Q at the time of writing.

This projected decline in economic growth is mirrored by a sudden downturn in consumer confidence, the first decline in three months.

According to the survey’s authors, the drivers of the decline are “politics and tariffs.”  |  WSJ, Bloomberg, Bloomberg 

2. At its last rate-setting meeting of 2024, the Federal Reserve reduced its benchmark rate by a quarter-point to a target range of 4.25% – 4.5%. This was the third reduction in the Fed’s loosening cycle, following a half-point cut in September and a quarter-point cut in November. In its announcement, Fed officials indicated a slower future pace of reductions, triggering significant equity market declines.

A couple of days following the interest rate announcement, a fresh print of the Fed’s preferred inflation gauge was released which showed PCE inflation slowed in November, rising 0.1% over the prior month and 2.8% over the prior year. The monthly advance was the slowest since May of this year.

A private-sector economist observed, “Overall, this is just what the Fed ordered — US economic strength continues, but with muted price pressures.”

The Fed’s success in combatting inflation has come without damaging the labor market, which is a remarkable achievement. At the end of December, initial unemployment claims fell to an eight-month low, while continuing unemployment claims fell to a three-month low:

The fly in the labor market ointment is that recurring applications are set to post a second straight year of increases, which is historically rare outside of recessions.  |  CNBC, Bloomberg, Bloomberg

You Might Be Interested In

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>
How to Measure Performance of TV Ads [Linear & Streaming] https://tinuiti.com/blog/measurement/performance-tv-advertising-measurement/ Thu, 02 Jan 2025 17:17:11 +0000 https://tinuiti.com/?p=21020
Measurement

How to Measure Performance of TV Ads [Linear & Streaming]

emily-sullivan-headshot
By Emily Sullivan

Measuring TV ad effectiveness isn’t just about counting views anymore. It’s a strategic game that can make or break your marketing efforts.

Television advertising has long been a cornerstone of marketing campaigns, offering unmatched reach and the ability to tell compelling brand stories. Yet, the difficulty in measuring TV ad performance—especially for linear campaigns—has historically made it a challenging channel to attribute directly to business outcomes.

But the landscape is shifting. The rise of streaming platforms and advancements in big data analytics are transforming TV into a more measurable medium, bridging the gap between linear’s broad appeal and streaming’s precise targeting.

Here’s how to measure the performance of both linear and streaming TV ads to ensure your campaigns drive maximum impact.

Measuring Performance of Ads on Linear TV vs. OTT

Measuring advertising performance across linear TV and OTT requires understanding nuanced yet interconnected approaches. Traditional measurement methods like brand awareness surveys, focus groups, and Nielsen ratings have long been staples for linear TV, providing broad demographic insights. Emerging techniques like digital tracking pixels and real-time engagement metrics are transforming OTT advertising measurement, offering more precise, user-level data. 

Despite their differences, both linear TV and OTT advertising share critical measurement goals: understanding audience reach, validating advertising investment, optimizing media strategies, and demonstrating campaign effectiveness. The core similarities include the need for strategic planning, comprehensive performance tracking, clear campaign objectives, and a deep understanding of their target audience’s behavior.

While linear TV measurement tends to be broader, OTT provides near real-time analytics with granular insights. Advertisers must leverage both traditional and innovative measurement techniques to create a holistic view of campaign performance, recognizing that each medium offers unique strengths in tracking and understanding audience engagement.

Television advertising isn’t just about throwing your message into the void and hoping for the best. It’s a strategic science, and the right metrics are your roadmap to understanding true performance.

Which Metrics are Important for Measuring TV Ad Effectiveness?

  1. Reach is the total number of unique viewers exposed to your ad, indicating your potential audience size. Think of reach like casting a net—the wider the net, the more fish you might catch.
  1. Frequency measures how many times the same viewer sees your ad, helping build brand recognition through repeated exposure. It’s the marketing equivalent of “if you say something enough times, people start to listen.”
  1. Gross Rating Points (GRP) represent reach multiplied by frequency, providing a standardized measurement of ad campaign impact. It’s like the Swiss Army knife of TV advertising metrics.
  1. Impressions and CPM refer to the total number of ad views and the cost per thousand impressions, offering insight into advertising efficiency. It’s like checking how much you’re paying per potential customer touchpoint.
  1. Brand Lift captures changes in audience perception and awareness, tracking the emotional and cognitive impact of your ad. Beyond numbers, it measures how your ad makes people feel.
  1. Last but certainly not least is Sales Lift. Sales Lift is the ultimate proof of advertising effectiveness—it’s the direct revenue increase that’s attributable to your campaigns. For marketers, this shifts the narrative entirely: from seeing advertising as a cost center to recognizing it as a revenue driver.

But here’s the challenge: proving direct sales impact is notoriously difficult, especially for channels where there’s no click to track. Think of the complex consumer journey—TV ads, out-of-home displays, streaming audio—all of these influence decisions, but their contribution can easily be lost in the mix.

That’s where Bliss Point by Tinuiti becomes transformative. By leveraging advanced modeling and attribution techniques, this platform brings clarity to the murky waters of multi-channel marketing, quantifying the sales impact of every touchpoint—even those that seem intangible.

The ability to measure Sales Lift across traditionally hard-to-attribute channels isn’t just a technical achievement. It’s a game-changer for marketing strategies. It equips brands with the proof they need to optimize investments, back up decisions with confidence, and position their campaigns as a core driver of growth.

How to Measure the Effectiveness of Your TV Ad

TV advertising can deliver significant results, but measuring its effectiveness requires a thoughtful approach. These steps will guide you in evaluating and optimizing your efforts.

Understand Your Target Audience

A successful TV campaign starts with knowing your audience. Who are you trying to reach, and what motivates them? Clear audience insights allow you to create relevant messages and accurately measure their impact.

  • Tip: Use available data—like website analytics, customer surveys, or social listening tools—to identify key demographics and preferences.

Set Goals and Relevant KPIs

Your TV ad strategy should align with specific business objectives. Whether you want to build brand awareness, boost website visits, or increase sales, clearly defined goals and KPIs are essential. Ensure you are choosing KPIs that directly tie to your objectives, such as:

  • Brand Awareness: Reach, frequency, and brand recall.
  • Engagement: Website traffic and social media mentions.
  • Conversions: Sales uplift and cost per acquisition (CPA).

Make Sure You’ve Spent Enough

Insufficient budget allocation can hinder a campaign’s effectiveness. TV campaigns require critical mass to produce measurable results, but how much is enough?

  • Tip: Start with benchmarks specific to your industry and audience size. Ensure your spend aligns with your desired reach and frequency goals.

Hone in on Cross-Channel Marketing Performance

TV doesn’t work in isolation—it drives results across other channels. To fully understand its impact, measure how TV influences search activity, social engagement, and ecommerce behavior.

  • Tip: Use tools that attribute actions like website visits or in-store traffic to your TV campaigns. Ensure you monitor spikes in digital activity post-airtime.

“No marketing spend exists in a vacuum, and each channel an advertiser leverages affects the customer journey. As such, advertisers need a holistic measurement framework that focuses on what each investment brings above-and-beyond the rest of the campaign. Within channels, this means an explicit focus on incrementality testing, and across channels, it necessitates a robust framework like MMM. Tinuiti has focused heavily on both of these elements, developing a complete incrementality playbook covering the full slate of Tinuiti-supported channels (TV included) as well as a rapid, incrementality-driven MMM with a focus on next-best-dollar recommendations.” 

Harry Browne VP, TV, Audio, and Display Innovation at TinuitiHarry Browne headshot

Measure Micro, Macro, and Business Impacts

Effective measurement requires looking at your campaign from multiple angles:

  • Micro impacts: Immediate audience responses, such as searches or app downloads.
  • Macro impacts: Broader trends like shifts in brand perception or category interest.
  • Business impacts: Long-term outcomes like revenue growth and market share increases.

Develop frameworks to evaluate all three levels consistently, ensuring no aspect is overlooked.

Ensure You Have the Right Technology

Technology plays a pivotal role in measuring TV effectiveness, particularly as campaigns grow more complex. Even businesses without sophisticated tech setups can benefit from tools that simplify data collection and analysis. When choosing measurement solutions, consider:

  • The ability to accurately track viewer reach and engagement.
  • Privacy compliance and data security measures.
  • Integration capabilities with other marketing channels.

Bliss Point by Tinuiti is a platform designed for scalability and precision. It helps marketers analyze offline and online impact, ensuring privacy compliance while delivering actionable insights. Bliss Point is ideal for businesses aiming to maximize their TV campaign ROI by leveraging data-driven strategies. 

Conclusion

Measuring the performance of TV ads—whether on linear or streaming platforms—has become a critical element of a successful marketing strategy. The days of relying solely on broad demographic insights are gone. Today, brands have access to sophisticated tools and techniques that provide actionable, granular data.

By understanding your audience, setting clear goals, and leveraging advanced measurement methods, you can turn TV advertising into a precision tool that drives real business impact. Embracing both traditional and modern metrics, alongside innovative solutions like Bliss Point by Tinuiti, enables you to capture a holistic view of your campaign’s effectiveness.

Ultimately, TV advertising isn’t just about reach, it’s about resonance. With the right strategy and insights, you can ensure your campaigns not only reach the right audience but also inspire action and deliver measurable results. Learn more about Bliss Point by Tinuiti here or contact us directly for more information.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>
Media Update: New CTV from The Trade Desk, TikTok Continues Fighting, New Google Search Data Arises https://tinuiti.com/blog/paid-media-updates/media-update-dec-12-2024/ Thu, 12 Dec 2024 14:53:00 +0000 https://tinuiti.com/?p=20984
Paid Media Updates

Media Update: New CTV from The Trade Desk, TikTok Continues Fighting, New Google Search Data Arises

By Tinuiti Innovation & Growth Team
12.11.24 media update collage

Key Highlights: 

  1. TV & Audio: The Trade Desk announced a new CTV OS, Ventura, which is set to compete directly with Roku.
  2. Paid Social: The US Court of Appeal upholds the January 19th sell-or-ban deadline for TikTok, but TikTok plans to continue fighting.
  3. Display & Programmatic: YouTube is the top destination for podcasting.
  4. Search: New study reveals 15% of Google searches are driven by just 148 terms, highlighting the relatively low proportion of commercial intent and the need for AI-powered ad strategies to capture scarce transactional demand.
  5. Ad Economy: Navigating AppLovin’s Complex Landscape, and DOJ vs. Google [2020] Enters Year Five.
  6. Consumer Economy: American shoppers upped their outlays by ~3.5% over Black Friday and Cyber Monday, while consumer sentiment hit an eight-month high.

TV & Audio

harry-browne_headshot
Harry Browne VP Innovation

Sports and broadcast ratings saw a boost in the final week of November, bolstered by strong audiences for Thanksgiving NFL coverage. While the year has seen its spikes and dips – strong broadcast figures around the Olympics and surprisingly weak audiences in the run-up to the election – linear’s main theme of 2024 is decline, with entertainment audiences consistently down 15-20% year-over-year, evidence of ongoing cord-cutting.

Linear audience graph

1. While this newsletter took a brief sabbatical for Thanksgiving, the major players in the TV world took no such break. Just before the holiday, the Trade Desk (TTD) announced that it is building a new CTV operating system – Ventura. Named for TTD’s California headquarters, the new OS promises “a more intuitive, engaging user experience… a much cleaner supply chain for streaming TV advertising… [and] advances such as OpenPath and Unified ID 2.0.” The announcement was met with initial praise from some big names, with positive commentary coming from partners at Disney, Paramount, Tubi, and Sonos.

The Trade Desk Ventura introduction

This development could represent a major shift in the CTV landscape. CTV operating systems are a backbone of the advertising ecosystem, as they help connect major publishers to viewers through their TVs. Currently, there are two major groups of operating systems: those exclusive to OEMs (such as Samsung’s Tizen, Vizio’s SmartCast, and LG’s WebOS) and those that can be licensed (such as Roku, Android TV, and Amazon Fire OS). Samsung and Roku have the deepest penetration in the US, each accessing ~50% of households.

TV OS of smart TVs in U.S. households graph

Because TTD has stated it has “no intention of getting into the hardware business,” the launch of Ventura clearly positions the company against the licensable OS providers, especially Roku, whose stock took a beating the day of the announcement. That makes for an interesting tension, as TTD and Roku just this year announced a partnership to make Roku media and audience data available through the Trade Desk. As recently as September, TTD CEO Jeff Green insisted that his company did not want to compete with Roku, though the Ventura announcement somewhat obviously positions them to. Nonetheless, we should not get ahead of ourselves in analyzing the impact of this announcement on CTV; critically, more than half of US TVs are Samsungs or LGs, meaning they already come with a powerful CTV OS. Those OEMs are unlikely to adopt Ventura, meaning TTD will need to find alternative partners to leverage its OS. It’s possible those partners could be the Chinese manufacturers, though they represent a small percentage of US TVs. Alternatively, there could be a path with Vizio, whose acquisition by Walmart finally closed. Walmart has already demonstrated interest in UID2, and such a partnership could bolster Walmart’s position at the intersection of CTV and retail media (though we should not look past Vizio already having its own OS).

TV ownership by brand in the U.S. infographic

Overall, the launch of Ventura is a major development in the CTV landscape, but one whose impacts may take time to manifest after deeper negotiations with the OEMs. Trade Desk has already acknowledged other potential opportunities for Ventura, including hotels and airlines, so with some time, Ventura could truly have a broad impact across CTV and DOOH. That said, with lots of details still to be hashed out, advertisers do not yet need to adjust their investment allocations over to Trade Desk or away from Roku. Advertisers should feel reassured, however, that Tinuiti has long partnerships with both Trade Desk and Roku and has explicitly arranged to incorporate UID2 into our data spine, leaving us well prepared for any developments that arise from this announcement.  |  The Trade Desk, Variety, VisualCapitalist

2. The linear TV landscape has seen developments of its own, albeit ones that don’t generate as much positivity. In October, we noted that DirecTV and Dish were set to merge, potentially giving the two large satellite players a lifeline. Unfortunately for them, the Dish-DirecTV merger has since fallen apart, after Dish’s bond holders rejected a key debt exchange provision. EchoStar (the owner of Dish) claimed that Dish has room to grow on its own, but it is hard to view this development as anything other than a major setback. A key argument for the merger was the combined entity’s ability to negotiate favorable pricing for TV programming (recall that such “carriage fees” were at the heart of the DirecTV-Disney impasse earlier this year), and now both providers will have less leverage as they negotiate independently. As we said in October, this deal would not have changed the tough reality for linear, and neither will its abandonment. Overall, we can continue to expect steep declines in linear viewership as audiences become increasingly incentivized to switch to digital channels.  |  AdAge, WSJ

Paid Social

jack johnston headshot
Jack Johnston Senior Director Innovation

The big news this week is that on Dec 6th, the US Court of Appeals upheld the law that could lead to a ban of TikTok if the platform does not sever ties with its China-based parent company, ByteDance. The deadline for the sale or ban of TikTok is January 19th, 2025.

On the 9th, TikTok filed an injunction with the Supreme Court to postpone the deadline until the new administration takes over following President-elect Trump’s inauguration on January 20, 2025. While TikTok is making efforts to overturn, or at least postpone, the ban, there are significant unknown variables here, even with the deadline falling just under 6 weeks from now. The good news for users and advertisers is that even if the ban is enacted, it doesn’t mean TikTok is disappearing.

breakdown of what happens on Jan 19 - sale vs. no sale

The app will NOT disappear on January 19th, rather no new downloads or software updates will be allowed. For this reason, advertisers should expect contingency plans to be most useful beyond January, even as late as April. TikTok will also continue to operate in a business-as-usual manner outside of the United States, so advertisers who invest in TikTok inventory in Canada, Mexico, Europe, etc. should plan to continue their strategies as expected. For US advertisers, this is a moment of reflection and media contingency planning, and while it can feel like a scary prospect, there are so many unknown variables that the app could continue as normal just as easily as it could be banned on January 19th. There will be more developments over the coming weeks, so the best course of action is to operate normally and prepare contingency plans for February 2025, just as you would if your brand was managing a budget cut and needed to maximize returns out of other channels.  |  BBC, AP News

Display & Programmatic

brian-binder_headshot
Brian Binder Senior Director Innovation

The growing podcast industry is no longer just an audio experience—it’s becoming a visual one too, and YouTube is at the center of the evolution. As podcast popularity continues to rise, the demand for visual content is reshaping the medium. A study by Morning Consult revealed that 42% of US adults prefer watching video podcasts over exclusively listening to podcasts.

US Adults' Preference for Video Podcasts graph

While platforms like Spotify have started to focus on video podcasting, YouTube has been leveraging its video prominence to capture the demand. A recent eMarketer study revealed that 53% of podcast audiences are now watching on YouTube. The popularity of video podcasting on YouTube isn’t surprising – its dominance in the video space, strong community features, and powerful recommendation engine make it ideal for attracting viewers and driving discovery of new podcasts with 32% of weekly listeners finding new shows on YouTube.

Podcasters have also leapt on this trend. Many top creators have a significant presence on YouTube, posting not only podcast content but also supplemental video content on their channels to engage their millions of subscribers. 

Spotify top 10 podcasts 2024
YouTube channels of top 5 Spotify podcasts

This trend is becoming increasingly important for podcast advertisers, illustrating the importance of adding a strong mix of audio and video to drive deeper and more memorable brand experiences. 

It also highlights a significant opportunity for advertisers to expand beyond traditional platforms and tap into YouTube’s vast ecosystem, targeting specific podcasts across YouTube, YouTube Shorts, and related user-generated content, amplifying reach. While YouTube’s measurement may lack the transparency of other podcast platforms, tools like brand lift, search lift, conversion lift, and Google’s attribution provide valuable insights to gauge impact effectively.  |  Marketing ChartseMarketer, eMarketer

Michelle Merklin headshot
Michelle Merklin VP of Paid Search Growth & Innovation

A new report from SparkToro found that 15% of total Google searches are driven by only 148 terms, most of which are navigational (ie: intent of finding a specific website or web page). Some of the highest volume queries include searches for “YouTube”, “Gmail”, and “Amazon”. The study found that 44% of Google searches are for branded terms (the rest generic), and overall intent behind search queries skews toward “informational” and “navigational”, with less “commercial” and very little purely “transactional” intent. 

Distribution of search intent on Google graph

“People are gravitating to a smaller number of less diverse destinations and ideas,” says Rand Fishkin of SparkToro. 

Since such a small pool of searches are purely transactional in nature, marketers are going to be increasingly reliant on leveraging AI technologies in search ads that provide additional intent-based signals. Targeting tactics like Broad Match keywords have access to countless signals beyond the search query itself, and should be supercharged by being paired with conversion-based bidding in order to steer the algorithm to only bid if it forecasts propensity to convert. In theory, this means these AI-powered ad solutions can find purchase intent even if the searcher is not necessarily typing queries that “sound” like they’ll convert. 

These findings are a good reminder that search demand must be created through awareness and consideration tactics like TV, display and social media, in order to later be captured and converted in the lower funnel via search.  |  Search Engine Land 

Simon Poulton headshot
Simon Poulton EVP Innovation

1. Last month, we highlighted the remarkable ascent of AppLovin within the mobile advertising space. With increasing interest from both advertisers and Wall Street, the platform shows strong potential for growth in 2025 as advertisers allocate larger budgets. However, before advertisers commit too heavily to AppLovin, it is critical to weigh its touted performance benefits against the platform’s transparency challenges and brand safety risks.

A major issue lies in AppLovin’s approach to brand safety. The platform allows ads to appear on any app within its network that meets App Store approval, yet it offers advertisers no visibility into the specific apps where their ads are shown. This lack of transparency, coupled with its AI-driven focus on “performance-based” placements, raises significant concerns, especially for larger brands aiming to avoid contentious associations. While App Store approvals mitigate the most overt brand safety risks seen in the open web, many apps (particularly games) feature political or adult themes that fall into a gray area, potentially creating challenges for advertisers as they seek to balance brand safety risks with performance.

Moreover, AppLovin’s optimization model prioritizes click-through rates, neglecting the importance of view-through data crucial for a comprehensive assessment of campaign performance. Until recently, the platform also lacked geo-specific exclusion capabilities, which are essential for measuring incremental lift. While these capabilities have been introduced, early studies from Haus suggest that while incremental performance improvements exist, new-to-file transaction incrementality (a key metric for many advertisers) may be significantly lower than broader incrementality metrics suggest, perhaps allowing for AppLovin’s performance to be more closely correlated with Remarketing tactics.

weekly spend, dates, incrementality factor chart

Adding to these concerns is skepticism about AppLovin’s differentiation in a crowded market. This uncertainty is mirrored in its stock performance, with the platform’s exclusion from the S&P 500 signaling waning investor confidence. As AppLovin continues to evolve, advertisers and investors are left questioning whether its performance promises outweigh its limitations in transparency and usability.  |  Twitter, The Street

2. As the United States vs. Google LLC (2020) case approaches its fifth year, the U.S. Department of Justice has proposed bold remedies to address Google’s alleged search engine monopoly. Key recommendations include requiring Google to divest its Chrome browser, banning exclusive agreements like its deal with Apple to be the default search engine in Safari, and mandating the sharing of search data with competitors. These measures aim to level the playing field, particularly in online search and advertising, by reducing Google’s dominance and fostering competition. The DOJ also seeks to prevent Google from preferentially placing its search engine on Android devices, signaling a significant shift in the tech giant’s operational freedoms.

Google has pushed back strongly, characterizing the DOJ’s proposals as “radical and sweeping” with potential to harm consumers, developers, and small businesses. The company argues that its services are chosen for their quality, not coercion, and warns that the proposed measures could stifle innovation and disrupt the seamless user experience it has cultivated. With stakes this high, the outcome of the case could set a precedent for how tech monopolies are regulated, balancing antitrust enforcement with maintaining the competitive edge of American technology. 

The potential forced sale of a Google asset, such as Chrome or its search business, raises speculation about potential buyers. While FAANG companies are unlikely candidates due to antitrust concerns, The Trade Desk emerges as a plausible contender. With its focus on programmatic advertising and innovations like Unified ID 2.0, OpenPass, and a recently launched TV operating system, acquiring a Google asset could provide The Trade Desk with the scale it needs to compete more aggressively. However, such a consolidation would likely face regulatory scrutiny to ensure it diversifies the market rather than transferring monopolistic power, making the implications for competition, advertisers, and consumers significant.  |  DOJ, The Verge, Google

Consumer Economy

Sean Odlum
Sean Odlum CPO

1. We’ve frequently noted in these pages that the American consumer has remained in pretty rude health despite the economic gyrations (pandemic, inflation) of the past four years. That basic picture remained unchanged over the Thanksgiving holiday, when American shoppers upped their Black-Friday-through-Cyber-Monday spending by 3.5% over last year. This overall growth in spending reflected more dramatic dynamics in how people did their shopping – in-store sales rose by just 0.7%, while online sales rose by almost 15%.

Some have theorized that consumers are spending more now in anticipation of new tariffs promised by the incoming Trump administration. If enacted, such tariffs would raise consumer prices, creating an incentive to buy early; this may be one reason why overall holiday sales are projected to grow by 3.5% this year.

A notable trend this year was the record utilization of buy now, pay later (BNPL) financing. Shoppers spent just under $1 billion this way, a 5.5% increase over 2023.  |  NYT, eMarketer, Adobe

2. Right in line with these healthy BFCM shopping figures, the latest reading of consumer sentiment rose to its highest level since April, even though consumers are expecting higher prices over the coming year (per the piece above, this may be due to promises of new import tariffs).

U.S. Consumer Sentiment graph

We told you last time that political partisans hot-swapped their views of the economy in the wake of the election; Democrats’ sentiment plunged, while Republicans’ soared. That dynamic is borne out in this more recent data, which shows sentiment among Republicans now stands at a four-year high, while confidence among Democrats has dropped to a more than two-year low. Among political independents, sentiment rose to an eight-month high.

Consumers’ outlook for their personal finances fell to a five-month low in December, possibly indicating rising indebtedness associated with holiday shopping.  |  Bloomberg, WSJ

3. The health of the American consumer, as discussed above, is tightly linked with the health of the American labor market. And as the former prospers, it should be no surprise that the latter is looking healthy as well – November’s jobs report showed a strong rebound in hiring, with 227k jobs added, following October numbers that were depressed by major storms and labor strikes.

Monthly change in jobs

Despite the strong monthly figures, the unemployment rate ticked up to 4.2%, above the level it’s been at since the beginning of 2022.

unemployment rate graph

The big question now is how this will all factor into the Fed’s interest rate decisions next week. With the Fed now in a rate-lowering cycle, there are two data points that may push in the other direction: the aforementioned robust job growth, which suggests the labor market is not depressed in any way; and the fact that the Fed’s preferred inflation measure remained elevated in October. Lowering rates could run the risk of re-accelerating inflation, which is the last thing the Fed would want to see. The market-implied probability of a 25-basis point cut stands at about 72%.  |  WSJ, NYT, Bloomberg

You Might Be Interested In

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>
2024 Cyber Five Ad Trends: Black Friday and Cyber Monday Stats Across Google, Amazon, and Meta https://tinuiti.com/blog/ecommerce/2024-cyber-five-ad-trends-black-friday-and-cyber-monday-stats-across-google-amazon-and-meta/ Thu, 05 Dec 2024 16:41:18 +0000 https://tinuiti.com/?p=20942
Ecommerce

2024 Cyber Five Ad Trends: Black Friday and Cyber Monday Stats Across Google, Amazon, and Meta

andy taylor headshot
By Andy Taylor

The period between Thanksgiving and Cyber Monday, known as the Cyber Five, is a clear mile marker to start holiday shopping for many consumers, and, as such, is a pivotal stretch for many marketers. Here we’ll take a look at some of the key trends that emerged from this year’s Cyber Five for Tinuiti clients under management, including how the shift in the timing of Thanksgiving impacted sales and ad pricing.

The following charts and figures are based on same-store growth for longstanding Tinuiti advertisers.

This post was coauthored by Mark Ballard and Andy Taylor.

Late Thanksgiving Sees Spike in Holiday Sales, while Consumers Spread Purchases over Cyber Week

With Thanksgiving coming a full five days later in 2024 than in 2023, consumers were less inclined to wait around until Black Friday to begin making a large share of their holiday purchases. Looking at retail purchases generated by Google search ads, sales growth jumped from 11% Y/Y in October to 20% Y/Y over the seven days before Thanksgiving. The median retailer then saw sales growth hit 29% on Thanksgiving Day itself, before returning to October levels on Black Friday.

While Black Friday and Cyber Monday are still significantly bigger sales days than the rest of Cyber Week, consumers have been spreading their Google-driven purchases out more in recent years. In 2023, order growth from Google search ads was strongest over Cyber Saturday and Sunday, while in 2024, those days were beaten only by the relatively late Thanksgiving Day. Cyber Monday sales growth did outpace the preceding weekend, however, due to stronger average order value (AOV) growth.

Average Order Value from Google Search Ads Down Over Most of Cyber Week

Again looking at performance from Google search ads, retailer sales growth over Cyber Week came despite modest declines in AOV on all days except for Cyber Monday.

Over early November and through the week before Thanksgiving retailers had seen AOV rise by a little under 6% Y/Y, which was up from an average of 3% growth in Q3. On Thanksgiving Day, though, AOV growth turned negative with Cyber Sunday seeing the largest decline of the week.

Google Advertisers Saw Less Competition from Temu, while Amazon Did Not Push the Gas

Looking at the presence of Amazon and Temu in Google Shopping ad auctions, it appears that the competitive landscape for the rest of Google’s retail advertising base may have been a bit more favorable this year than last.

Amazon’s average share of Google Shopping impressions took a big hit toward the end of Q3 but recovered at the beginning of Q4. In the weeks since, though, Amazon’s impression share has generally declined, including during the week of Thanksgiving.

This trend largely mirrors what Amazon’s competitors saw in 2023, but in 2021 and 2022, Amazon’s share of Google Shopping impressions was on the rise ahead of Thanksgiving as the retail giant got more aggressive in its stance in Google’s auctions at those times.

Maybe more significant than Amazon failing to make a big push in Google Shopping auctions yet has been Temu’s sharp decline as a competitor for Shopping impressions. At points in Q4 2023, Temu was second only to Amazon in the share of retailers seeing it as a competitor for Shopping impressions (as determined by Google’s Auction Insights Reports).

Over 2024, however, fewer brands are seeing Temu as a competitor for Google Shopping impressions and those that still do are seeing Temu at a minimal presence. The minimum impression share in Google’s Auction Insight reports is listed as “< 10%”, which is where the median Temu competitor sees Temu now.

Sales Attributed to Amazon Ads Surge the Week Before Thanksgiving

Amazon now promotes Black Friday deals a week before the big day, and growth in sales attributed to ads during the seven days before Thanksgiving has accelerated each of the last two years. In 2024, sales attributed to Sponsored Products were up 37% year over year for the week before Thanksgiving, topping growth on key days like Black Friday and Cyber Monday. This is at least partially a result of the change in how the calendar year fell in 2024, with the Cyber Five taking place nearly a week later than in 2023.

Advertisers also saw strong growth throughout the Cyber Five, with sales up 31% on Black Friday and 18% on Cyber Monday. The weakest growth came over the weekend, though Sponsored Products advertisers still averaged 13% sales growth over the course of Saturday and Sunday.

Amazon New-to-Brand Customer Share Rises Throughout November

Across both the Amazon Demand-side Platform (DSP) and Amazon Sponsored Brands, the share of purchases attributed to ads as new-to-brand rose throughout the month of November, and was significantly higher during the Cyber Five than earlier in the month. This is especially true for the DSP, which saw new-to-brand purchase share rise from 34% at the start of November to 65% on each of Black Friday and Cyber Monday.

New-to-brand customers are defined by Amazon as those shoppers who have not purchased from the advertiser in at least twelve months. Marketers typically see new-to-brand customer share rise during key events like the Cyber Five and Prime Day, as well as in the final lead up to shipping cutoffs for Christmas delivery when shoppers increasingly purchase from new brands to get presents in time.

Meta Ads CPM Up Big Over the Holiday Weekend

Tinuiti Meta advertisers, most of which are retail/ecommerce brands, saw CPM climb by at least 11% on each day from Thanksgiving through Cyber Monday, with the biggest growth coming on Thanksgiving Day at 16%. For the full five-day period, CPM rose 12% year over year, far eclipsing the 3% CPM growth observed over the entirety of the Cyber Five last year.

Over the course of the first ten days of November, the ramp in Meta CPM compared to November 1 observed in 2024 was remarkably similar to that of 2023. However, CPM picked up more steam in the middle of the month in 2024 than in 2023, and advertisers saw CPM continue to climb for nearly a full extra week before Thanksgiving thanks to how the holiday fell this year compared to last.

Advertisers should expect pricing to come back closer to mid-November levels in the coming days.

Reels Video Ads Impression Share Soars Across Both Facebook and Instagram

Reels video ads continue to grow in importance for Meta advertisers across both Facebook and Instagram, and this was certainly clear when looking at how impression share for Reels has risen during the Cyber Five. Reels video ads share of Facebook impressions during the Cyber Five more than doubled from 2023 to 2024, while their share of Instagram impressions nearly topped 20% in 2024.

Combined with the fact that Reels overlay ads accounted for an additional 13.8% of Cyber Five Facebook ad impressions, it’s clear that Reels has become a crucial part of how marketers are reaching potential customers this holiday shopping season.

More than ¼ of Retail Meta Ad Dollars Went to Advantage+ Shopping During the Cyber Five

Retail advertisers spent 26% of all Meta investment on Advantage+ shopping campaigns (ASCs) between Thanksgiving and Cyber Monday. Much like with Google Performance Max campaigns, ASCs are AI-powered campaigns which streamline some aspects of optimization.

While the 26% Cyber Five figure is a decline from the 34% spend share the campaign type held for the full third quarter, ASCs are still a substantial portion of many advertisers’ investment in Meta properties this holiday shopping season.

Thanks to the late timing of Thanksgiving, we’re already less than three weeks away from Christmas. Keep a look out for the Tinuiti Q4 2024 Digital Ads Benchmark Report in January to get a full accounting of how the holiday season shakes out for advertisers from here.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>
From Primetime to Podcasts: How Women’s Sports Are Reshaping Media https://tinuiti.com/blog/tv-audio/from-primetime-to-podcasts-how-womens-sports-are-reshaping-media/ Mon, 02 Dec 2024 17:18:22 +0000 https://tinuiti.com/?p=20904
TV & Audio

From Primetime to Podcasts: How Women’s Sports Are Reshaping Media

By Tinuiti Team

This post was authored by Alicia Jewell, Director of Media Investment at Tinuiti.

The growth of women’s sports is a layered story that pairs long-term strategy with cultural momentum.  Over the years, generations of fans have continued to advocate for equity for women athletes in their respective sports. These conversations were the catalyst for brands, leagues, and media networks to develop a game plan for growing equity of media coverage, increasing brand partnership commitments, and evolving media platforms. 

The star power from athletes like Caitlin Clark, Ilona Maher, and Alex Morgan is amplifying these efforts, and establishing women’s sports leagues as essential stakeholders in the broader sports ecosystem. Together, these forces are shaping a future where women’s sports hold a permanent and influential position in the industry. 

Women’s sports are not just a trend or “having a moment.” They are, by design, evolving the sports landscape – and in turn the media and advertising landscape. Category viewership is at an all-time high, and revenue generated by U.S. women’s sports in 2024 is set to exceed $1 billion for the first time, which is fueling new developments across the media landscape, particularly in audio. The surge of women’s sports isn’t stopping at traditional media channels, and clients have the opportunity to be innovators by tapping into the growth in places like podcasting. 

Coverage Equity in Women’s Sports

Historically, the share of coverage for women’s sports hovered around 4%. The limited access to watching games, and lack of content around athlete storylines created barriers for fans to keep up with women’s sports. 

But as of quite recently, networks are focusing on equity for holistic women’s sports coverage. This means, coverage and content on and off the field. Whether it’s shoulder programming, or year-around conversations, fans want more content. They want the highlight reels, the hot takes, the rumors, the history, the debates and the controversies, and all of this ultimately drives more fan engagement. Networks are prioritizing women’s sports on their broadcast lineups and giving women’s sports prime-time slots and high-profile marketing support. As of 2023, women’s sports coverage now sits at 15% (triple that of earlier figures!), and networks intend to keep narrowing the coverage gap between men’s and women’s sports.

Fan demand has dramatically helped drive this shift. According to a recent Nielsen report, 84% of sports fans express interest in watching more women’s sports on TV, pushing networks to respond with more comprehensive programming. Increased coverage doesn’t just meet demand; it also generates momentum, creating a feedback loop where more exposure leads to more fans, and more fans lead to higher revenue and more advertising opportunities for brands who want to align with this incredibly dynamic space.

Viewership Surge in Recent Years

As media coverage for women’s sports continues to grow, media networks are seeing a surge in viewership. Each round of 2024 NCAA Women’s March Madness saw viewership growth up 121% year-over-year overall and for the first time ever, the women’s title game drew more viewers than the men’s.

The viewership story doesn’t stop there. The National Women’s soccer league had a 17% boost in interest between 2023 and 2024, and England’s Women’s Super League jumped 52% after England won the 2022 EURO. The rise of viewership starts with loyal fans, and is boosted by equity in coverage. It highlights the importance of networks committing to broadcasting women’s sports, and the opportunity that brands have to connect with this growing audience.

How This is Evolving the Podcast Ecosystem

The expansion of women’s sports coverage has impacted more than just streaming or linear TV. Podcasts focusing on women’s sports are now surging, providing fans with year-round content and deeper engagement–and there’s no better way to invest fans into a storyline than through the podcast ecosystem. Podcasting is an intimate and personal medium that captivates listeners through the power of storytelling. This draws in advertisers, because podcast advertising can drive awareness, favorability, consideration, intent, and ultimately customer acquisition. A well-balanced podcast strategy will utilize personal endorsements, tailored creative content, and sophisticated audience targeting to act as a full-funnel marketing channel.

With this in mind, the audio format is a perfect fit for women’s sports. Streaming audio offers brands a way to connect with fans in a personal and immersive way, capitalizing on the cultural rise of women’s sports. The podcast network ecosystem is embracing the evolution and investing into women’s sports content to make their portfolio more inclusive. iHeart recently announced Women’s Sports Audio Network, a first-ever audio platform dedicated exclusively to women’s sports. Other networks are also investing in women’s sports like The Athletic, Dear Media, and VOX to name a few. Shows like The GIST highlight the stories, challenges, and triumphs of women athletes, filling gaps left by broadcast coverage. Many advertisers are now investing in both TV and podcast ads, amplifying their messages across platforms.

Why This Is Important

From an industry perspective, this shift is diversifying the sports marketplace, and unlocking access for brands to reach a loyal and growing fan base. It is an important cultural shift that is highlighting the value that women’s sports can bring to the social and cultural ecosystem. As broadcast distribution increases, more fans have access to games, and in turn more brands are investing in reaching those fans with significant buying power.

While this is significant for the industry, this is bigger than ad revenue, and bigger than brands connecting with consumers. The momentum of women’s sports is carving the path for future women athletes and inspiring generations to come. Women’s sports promote gender equality, and empower women to continue challenging gender norms to stimulate change.

“Brands have the opportunity right now to be part of a huge cultural movement in sports. Not only do advertisers gain access to a loyal and affluent fan base, but they have the opportunity to contribute to an important shift in the marketplace. Together, support from brands and broadcasters creates a synergistic effect that enables sustainable growth for women’s sports. Within our media recommendations, we continue to advocate for women’s sports to ensure that our clients know that the space is accessible, can provide massive reach, and ultimately drive incredible return on investment.” 

Alicia Jewell Director of Media Investment at Tinuiti

Conclusion

The rise of women’s sports is transforming the media landscape, driving unprecedented ad revenue on TV while also reshaping the audio ecosystem. This shift underscores the importance of coverage equity, not only for its economic benefits but for its role in societal progress. For brands and advertisers, the rapid growth of women’s sports presents a unique opportunity to engage with passionate, loyal audiences, in an authentic way. Audio, and particularly podcasts, offers an ideal environment to extend this connection with its ability to shape a story, and spark conversation. 

As consumption continues to grow, the momentum around women’s sports shows no sign of slowing. Brands are harnessing the power of women’s sports through both traditional and emerging media channels and taking a stance that has a positive impact on the space, as well as their own business outcomes.

At Tinuiti, we’re on the cutting edge of emerging media, helping brands navigate the evolving landscape of TV & audio streaming, and so much more. Learn more about our audio and streaming solutions here or contact us today for more information.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>
Unlocking AMC Insights Series: A Deep Dive into New-to-Brand (NTB) Analysis https://tinuiti.com/blog/amazon/unlocking-amc-insights-series-a-deep-dive-into-new-to-brand-ntb-analysis/ Wed, 27 Nov 2024 21:18:10 +0000 https://tinuiti.com/?p=20900
Amazon

Unlocking AMC Insights Series: A Deep Dive into New-to-Brand (NTB) Analysis

Averie Lynch headshot
By Averie Lynch

In today’s data-driven marketing landscape, the ability to ask the right questions is paramount. 

Amazon Marketing Cloud (AMC) emerges as the magic 8-ball of advertising solutions, offering advertisers a robust platform for precise analytics and strategic decision-making. If you’re new to AMC, it’s a secure, privacy-friendly, dedicated cloud-based measurement and analytics solution introduced in 2021.

This article is part of a series where we dive into specific AMC use cases. We’ve previously written about:

In this installment, we focus on the New-to-Brand (NTB) analysis, guiding you through utilizing this report to address critical business questions, pinpoint key metrics, and strategically apply derived insights. Let’s get started.

What is the NTB Analysis?

The NTB Analysis enables you to compare new-to-brand behaviors across ad types, products, and ad-attribution windows. Customers are considered to be new-to-brand if they purchase from your brand for the first time during the previous 365 day period. Use the NTB Analysis to: 

  • Evaluate which campaigns types are most effective at driving new customer growth
  • Evaluate the performance of your promoted ASINs’ ability to attract new customers
  • Compare the Customer Lifetime Value across different ad-attribution windows

Multiple reports are available to help answer key business questions about NTB customer behaviors. Understanding how to apply NTB tactics effectively is essential for scaling your business and achieving incremental growth. 

Here are a few examples of the types of questions the New-to-Brand analysis addresses:

  • How effective are your campaigns with reaching new-to-brand (NTB) customers?
  • Of all the ad-attributed purchases, how much and what percentage of them are new-to-brand (NTB) purchases vs. repeat purchases? 
  • What is the impact of campaigns in terms of generating NTB purchases?
  • What is long-term customer value when moving beyond 14-day ad-attributed metrics such as return on ad spend (ROAS)?

Helpful Reports to Answer the Above Questions:

Gateway ASIN Analysis 

The Gateway ASIN analysis shows which products drive the most NTB purchases. The report provides the top converting ASINs from a NTB perspective. To enhance campaign strategies, advertisers can look at the Gateway ASIN analysis to find which ASINs should be promoted with creative to maximize conversion among NTB purchasers. 

To use this query, advertisers must have promoted ASIN that resulted in ad-attributed purchases on Amazon. If you have pixel conversions only, this query is not suitable for your use case.

NTB by Ad Type

The NTB by ad type report compares performance across Amazon ad types. This query returns the ad type and the corresponding count of all customers who made a purchase, count of NTB customers and percentage of NTB customers. Advertisers can compare the NTB percentage across ad types to find which ones are most effective for driving growth. For instance, one might find that Amazon Sponsored Display campaigns result in a higher percentage of NTB customers compared to Amazon Sponsored Products ads.

To use this query, your ASINs must be tracked to campaigns. Campaigns used in this query should have the goal of reaching both new and existing customers. Campaigns should target both new and existing customers, instead of one customer type exclusively, for example only existing customers or only customers who never purchased.

NTB Purchases

The NTB Purchases report demonstrates the impact of campaigns on generating NTB purchases compared to repeat purchases. Advertisers can find which campaign type(s) is best for generating repeat purchases versus which campaign type(s) is best for generating NTB purchases. Advertisers can refine their target audience around their campaign goals. If goals are focused around incremental growth, advertisers can focus their media mix on campaigns most effective at driving NTB purchases. 

To use this query, your ASINs must be tracked to campaigns. Campaigns used in this query should preferably have the goal of reaching both new and existing customers.

Comparing NTB Performance Across Other AMC Reports

Advertisers can look at reports such as the Media Overlap Analysis and the Path to Purchase Analysis in terms of NTB performance. This perspective can help identify which media mix is most effective for attracting NTB customers. Advertisers can build a stronger media mix for achieving their growth goals. 

Flexible Shopping Insights

Flexible Shopping Insights (FSI) includes non ad-attributed conversions to capture a more comprehensive view of a customer’s value. Advertisers can compare the value of NTB versus existing customers with extended ad-attribution dates to provide a wider perspective on long-term customer value. The results of the analysis can drive strategic media buying decisions, providing recommendations on where to invest dollars depending on campaign goals. Once established, AMC audiences can be created to target the customer segment that best suits those goals. 

A subscription is required to access Flexible Shopping Insights. Advertisers must have customer ASIN purchases on the Amazon ecommerce site (for example, amazon.com) to query the dataset.

AMC Audience Use Cases

AMC audience segments can be utilized to target NTB customers. For example, the High value NTB Audience segment targets shoppers who organically viewed a brand’s products within the last X amount of days but have not seen an ad. The lookback window can and should be customized depending on the product lifecycle. Account for products with a longer lifecycle with longer lookback dates and vice versa. This audience is available as a template located in Amazon’s IQL (Instruction Query Library). No coding is necessary to utilize this audience segment. 

AMC’s NTB Analysis: Key Takeaways and Next Steps for Enhanced Conversions

AMC’s NTB analysis highlights the impact of advertising on NTB behaviors. NTB reports can be used to guide growth strategies around:

  • Products
  • Budgets
  • Customer Lifetime Value

By building AMC audiences around NTB customers, advertisers can target more precise segments for higher returns and engagement. The use of NTB tactics expands a brand’s customer base, increases market share, and reaches untapped segments, which leads to sustainable, long-term growth.

“We use the NTB analysis to understand the most effective ways to reach and discover NTB customers. These insights inform our strategies across campaign considerations from budget allocation to audience targeting, ensuring efficient and scalable growth.”

Matt Harris Senior Strategist, Commerce Media at Tinuiti

 If you have questions about NTB analysis or any other AMC use cases, reach out to Tinuiti today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>
Maximize Your Holiday Sales: Get Your TikTok Shop Ready for the Big Holiday Push https://tinuiti.com/blog/paid-social/tiktok-holiday-sales-strategy/ Tue, 26 Nov 2024 16:14:37 +0000 https://tinuiti.com/?p=20891
Social

Maximize Your Holiday Sales: Get Your TikTok Shop Ready for the Big Holiday Push

By Tinuiti Team

If you’re wondering whether TikTok is the right place to sell your products this holiday season, consider this: TikTok’s influence on shopping behavior is undeniable, with over 75% of users reporting that they’ve discovered new brands on the platform, and over 40% saying they’ve made purchases directly through the app. During last year’s holiday season, brands saw up to a 10x increase in gross merchandise volume (GMV) on Black Friday and Cyber Monday alone.

TikTok has redefined shopping by merging the joy of discovery with ecommerce and creating a one-of-a-kind experience for both shoppers and sellers. This holiday season, TikTok is offering brands in categories like beauty, fashion, and lifestyle a unique opportunity to reach millions of engaged, deal-hunting shoppers through campaigns like Black Friday, Cyber Monday, and December’s Holiday Haul. From in-app ad placements to co-funded discounts and creator partnerships, TikTok Shop makes it easy to stand out in a crowded holiday marketplace.

Let’s dive into how you can make the most of TikTok’s holiday opportunities to capture new audiences and drive sales this season.

Step 1: Register Your Products and Plan Your Inventory

Product Registration: Choose What’s Likely to Go Viral

Registering early can make a huge difference, especially when selecting products that resonate with TikTok’s unique, trend-driven culture. But how do you choose which products to showcase? 

Here are some tips:

  • Start with Seasonal Best-Sellers: Look at your previous seasonal sales data. Products that traditionally perform well during the holidays are a safe bet, as they already have an established demand.
  • Analyze TikTok Trends: Explore TikTok’s “For You” page and hashtags related to your industry (like #BeautyTok, #FashionTok, #GiftIdeas) to see what types of products are getting traction. TikTok’s audience loves items that feel fresh, aesthetic, or offer clever solutions—think viral beauty gadgets, unique apparel items, or products with strong “before and after” appeal.
  • Leverage Influencer Insights: TikTok creators often know what’s trending before the mainstream does. Partnering with influencers or simply following those in your niche can help you identify trending items with the potential to go viral. Some creators even showcase “Top Finds” or “Holiday Must-Haves” which can serve as inspiration for which products to prioritize.
  • Consider the “Giftability” Factor: During the holidays, items with gift potential tend to perform well. Products that are affordable, easy to share, or that feel special (like limited editions or bundles) attract TikTok’s holiday shoppers looking for the perfect gift.

With registration deadlines for Black Friday and Cyber Monday in early November, and Holiday Haul registrations open until mid-November, ensure these top products are registered early to maximize visibility.

Inventory Planning: Prepare for Demand Surges

Once you’ve registered the right products, make sure you’re stocked up to meet demand. Many sellers see significant sales uplifts—often up to 10x or more—during holiday promotions, so having enough inventory on hand is essential. Consider your past holiday sales data, as well as TikTok’s strong potential for rapid sales spikes, to estimate stock levels. By planning early, you’ll be ready to capture as much of the holiday traffic as possible without running out of inventory.

Step 2: Engage Customers with Strategic Discounts and Deals

For budget-conscious holiday shoppers, nothing beats a great deal. TikTok Shop offers multiple co-funded discount opportunities, allowing you to attract customers with seasonal savings. However, to participate in these TikTok-funded discounts, sellers need to meet specific requirements and register their deals in advance.

Black Friday & Cyber Monday Discounts

Sellers can opt into various discount tiers for Black Friday and Cyber Monday, with TikTok co-funding up to 30% off select items. Here’s how to participate:

  1. Register Products with Discount Tiers: Sellers need to select products they want to discount and register them under specific discount tiers, like flash sales or category-specific deals, in TikTok’s Seller Center.
  2. Meet Discount Requirements: To qualify for co-funding, sellers must offer discounts within TikTok’s specified ranges and ensure that their promotional prices meet or exceed the minimum discount percentage required.
  3. Follow Registration Deadlines: Sellers must register for these discount programs by early November to be eligible for TikTok’s co-funded support during the holiday campaign period.

Flash sales and coupons work particularly well on TikTok, where users are drawn to time-sensitive, impulse-buy opportunities. These co-funded discounts can help drive quick conversions by making your products competitively priced and highly visible.

Holiday Haul (December 3–12) Discounts

During the Holiday Haul campaign, sellers can offer a 20% discount on orders over $69, with TikTok co-funding part of the discount. Here’s how to set it up:

  1. Register by the November Deadline: Sellers need to enroll in the Holiday Haul discount program through TikTok’s Seller Center, selecting the 20% discount tier to activate the promotion.
  2. Prepare Products for Discount: Ensure that your discounted items are tagged correctly and meet the “giftable” appeal, such as beauty kits, apparel bundles, or any item that makes a convenient holiday gift.
  3. Align with Bundle and Order Requirements: The 20% discount applies to bundled or multi-item orders over $69, so sellers should consider promoting items that work well together or highlighting “gift set” options to encourage higher cart values.

By registering for these co-funded deals and following TikTok’s discount requirements, sellers can boost their product’s visibility and attract deal-seeking holiday shoppers ready to buy. Co-funding allows the seller to split the cost of the discount with TikTok so everybody wins.

Step 3: Utilize TikTok’s Content Features to Reach New Audiences

One of the greatest advantages of TikTok Shop is its ability to make content shoppable, and this is especially powerful during the holiday season. Here’s how you can make the most of TikTok’s content features:

Short Video Challenge: TikTok’s hashtag campaigns, such as #TikTokShopBlackFriday and #TikTokShopHolidayHaul, encourages sellers to create and share short, engaging videos around campaign themes. With trending hashtags and TikTok’s algorithm at work, these videos can reach broad audiences and generate both visibility and conversions. A single video could capture hundreds or thousands of views, sparking interest and awareness for your products.

Livestream Shopping: For brands that want to go deeper, TikTok’s Livestream Championship provides another level of engagement. Hosting a livestream during peak days (December 3-12) lets you show off products in real time, answer questions, and create a more personal shopping experience. Livestream hosts that meet certain sales thresholds may even qualify for rewards like Promote coupons, further incentivizing participation.

Creator Collaborations: TikTok Shop also facilitates connections with influencers, letting brands partner with content creators to amplify their campaigns. Engaging with TikTok creators who resonate with your target audience adds authenticity and reach, helping you tap into new customer segments who value recommendations from trusted voices.

Step 4: Plan Your Marketing Timeline and Build Excitement

Timing is essential when it comes to promoting holiday deals on TikTok. A well-planned marketing timeline can build anticipation and drive traffic to your shop on the biggest shopping days of the year.

Tease Promotions Early: Use social media channels and teaser content on TikTok to get your audience excited. Short videos hinting at discounts or highlighting top products are excellent for building hype and reminding your followers to check back for deals.

Peak Days and Hashtag Use: The biggest shopping days of TikTok’s holiday campaigns align with Black Friday (November 24), Cyber Monday (November 27), and the Holiday Haul peak days (December 3-12). Posting during these times and using holiday-themed hashtags can boost your discoverability and ensure your products are surfacing when shoppers are actively looking for deals.

Use TikTok’s “Shop Tab” and Product Tags: Make sure your products are tagged correctly so they appear in the TikTok Shop tab. TikTok uses campaign-exclusive tags to spotlight registered products, which can attract extra traffic and conversions.

Step 5: Optimize for Holiday Shoppers’ Needs

To convert shoppers, your TikTok Shop should be optimized for a seamless shopping experience.

Enhance Product Listings: High-quality images, clear descriptions, and user-generated content (like reviews or videos) all contribute to trust and can increase conversion rates. Consumers want confidence in their purchases, so ensuring your product pages are optimized can make all the difference.

Plan for Efficient Fulfillment: Holiday shoppers are often under a time crunch, so ensuring efficient fulfillment and competitive shipping policies can set you apart. Leveraging TikTok Shop’s co-funded free shipping or setting up quick delivery options may help win over last-minute shoppers.

Ready to Make the Most of TikTok Shop this Holiday Season?

Setting up for TikTok’s holiday campaigns requires preparation, but the potential payoff can be substantial. By taking these steps—registering products early, offering appealing discounts, engaging through shoppable content, and planning a solid marketing timeline—you’ll be well-positioned to reach TikTok’s holiday shoppers and drive seasonal sales.

This holiday season, let TikTok Shop be more than just a platform—it can be your gateway to reaching new audiences and creating memorable, shoppable experiences. So, get started, tap into TikTok’s holiday magic, and make this season a standout for your brand.

Tinuiti is certified as a TikTok Shop Partner, making our agency a one-stop solution for brands interested in selling on the platform. Looking for more information on TikTok Shop or ready to get started? Contact us today

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>
Tinuiti at 20: Forecasting the Future and Defining Digital Marketing https://tinuiti.com/blog/news/tinuiti-at-20-forecasting-the-future-and-defining-digital-marketing/ Fri, 22 Nov 2024 14:07:29 +0000 https://tinuiti.com/?p=20864
News

Tinuiti at 20: Forecasting the Future and Defining Digital Marketing

By Tinuiti Team

This post was written by Andy Taylor, VP of Research at Tinuiti and Emily Sullivan, Content Specialist at Tinuiti.

This past August, Tinuiti celebrated a major milestone—20 years of business, growth, and innovation in the digital marketing space. As we mark this occasion, we’re not just reflecting on our past accomplishments, but also looking ahead to the future.

For two decades, Tinuiti has been a leader in digital marketing, consistently delivering forward-thinking insights and bold predictions. From market disruptions to industry-transforming trends, we’ve built a reputation for anticipating what’s next. In this post, we’ll revisit key moments where our research not only helped businesses navigate change but also accurately forecasted the future of the industry.

Throughout our history, Tinuiti has been a trusted partner, spotting emerging trends before they hit the mainstream and guiding businesses through challenges to seize new opportunities. Read on as we highlight some of the most significant moments where Tinuiti’s research shaped success—and as we prepare for what’s next in 2025 and beyond.

Breaking the Story When Amazon Hit the Ad Brakes in 2020

March 2020 was a time of mass uncertainty, with people around the world questioning what life would look like in the days and weeks ahead as COVID-19 spread across the globe. With travel screeching to a halt and myriad supply chain interruptions, advertisers had to adjust plans on the fly to account for the volatile new reality.

One such advertiser was Amazon, and in the second week of March the ecommerce giant made the move to suspend its Google advertising as it faced a flood of online demand that forced it to focus warehouse storage on essential product categories like health and personal care products. Tinuiti caught it first and broke the story in a blog post, with major publications like Bloomberg and The New York Times picking it up and relying on Tinuiti data to tell the story. It would be three months until Amazon turned ads back on.

Dissecting the impact of Apple’s App Tracking Transparency Rollout

When Apple started to show its App Tracking Transparency (ATT) prompt on iOS devices in Q2 2021, the marketing world braced for impact as users started to choose which apps they’d allow to use mobile ID’s for the purposes of tracking and targeting. As expected, many users opted out of tracking when presented with the option in this way, with Meta expecting a $10 billion revenue hit as a result.

Tinuiti extensively tracked the impact of the update, including the precipitous drop in Meta tracked conversions due to broken tracking and a widening gap in the cost of ad impressions for Android device users compared to Apple device users. These insights made their way into The Wall Street Journal and Wired, helping advertisers and others better understand the shifting landscape as ATT’s impact took shape.

The Early Impact of Inflation on Average Order Values 

One of the key themes of the American economy over the last couple of years has been the rising cost of goods and services. Inflation has impacted consumers from all walks of life, and it’s clear when looking at Google average order value (AOV) that digital marketing wasn’t left out when it came to spillover effects. AOV soared by double-digits year over year during multiple months in the middle of 2021.

As inflation has slowed, so too has AOV growth, and throughout 2023 and 2024 has come in in the low single digits. Looking ahead, Tinuiti will be keeping a close eye on how things move as interest rates are set to fall in the coming months.

The Rise of Vertical Video

TikTok’s meteoric rise in popularity displayed the appeal of vertical video feeds, particularly with younger generations. Other platforms like YouTube and Meta quickly took note and rolled out formats like Shorts and Reels.

Since the inception of Reels, Tinuiti benchmark reports have kept tabs on their importance across Facebook and Instagram, providing insights to The Economist and others along the way. Reels now account for over 20% of all Meta ad impressions, and Tinuiti will continue to provide updates on this key format moving forward.

Temu’s Emergence as a Major Advertiser in the US Market

Back in the beginning of 2023 when Tinuiti started quantifying the ad presence of Temu, many Americans hadn’t even yet heard of Temu. By the end of that year, Temu was one of the most prevalent advertisers in Google shopping auctions, and the number of advertisers that saw it as a competitor in Auction Insights reports rivaled that of Amazon.

Temu has since pulled back on its investment in Google ads, but remains a key player across many product categories. The Tinuiti quarterly benchmark reports continue to map this progression with insights into how Temu stacks up against other major shopping advertisers like Amazon, Walmart, Target, and eBay.

From Past Predictions to Future Bets: What’s Next?

As we celebrate 20 years in business, it’s clear that our success has been built on our ability to stay ahead of the curve, identifying key shifts and trends that shape the future of marketing. From the rise of vertical video to the impact of inflation, we’ve seen our predictions play out time and again. But we’re not stopping here. 

Our Big Bets for 2025 report dives even deeper into the trends shaping the next chapter of marketing. Curious to see which of our forecasts will shape the future? Download the report to discover the next big shifts that could redefine how we do business and the strategies that might just be tomorrow’s game changers.

Download Tinuiti's Big Bets for 2025

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>
Media Update: Election Effects on Privacy & Data, Ads on Threads, Influence of Creators https://tinuiti.com/blog/paid-media-updates/media-update-nov-14-2024/ Thu, 14 Nov 2024 16:32:40 +0000 https://tinuiti.com/?p=20824
Paid Media Updates

Media Update: Election Effects on Privacy & Data, Ads on Threads, Influence of Creators

By Tinuiti Innovation & Growth Team
11/13/24 Media Update collage

Key Highlights: 

  1. TV & Audio: The leadership change in Washington is unlikely to simplify the nation’s complex web of privacy & data laws, though it may open the door to streaming consolidation.
  2. Paid Social: Reports suggest that ads on Threads could be coming in early 2025, but Meta leadership remains officially non-commital for the time being.
  3. Display & Programmatic: Creators are becoming more influential in the consumer journey.
  4. Search: Alphabet’s stock saw gains following the US presidential elections, with experts predicting a lower likelihood of a Google breakup under Trump. 
  5. Ad Economy: The UK CMA isn’t finished with Google yet & the (not so) surprising rise of AppLovin.
  6. Consumer Economy: Inflation ticked up a bit in October, and the political tribes are hot-swapping their views on the state of the economy.

TV & Audio

harry-browne_headshot
Harry Browne VP Innovation

Unlike four years prior, audiences found out the results of the 2024 presidential election rather quickly, with major networks calling the race for former (now incoming) President Trump in the early hours of Wednesday morning. This may have had an impact on audience sizes; while news viewership jumped year-over-year, election night audiences were down significantly from 2016 and 2020 figures across cable and broadcast networks, with the lowest percentage of households tuned in on TV in more than half a century. With streaming taking a bigger piece of the live sports pie and major news events struggling to make up the difference, the question remains: how much longer can linear TV remain a premier entertainment channel?

linear audience graph

1. It has only been a matter of days since the presidential election, but as we know, the advertising industry – and TV in particular – moves near the speed of light. As such, it’s worth taking stock of what the second Trump administration might mean for advertisers looking to leverage TV and audio content in their campaigns, as well as for the digital advertising landscape writ large.

Data privacy has been a major topic in the space over the last few years, and we’re likely to continue to see a fragmented privacy approach from the government going forward. Currently, online privacy laws are unevenly applied nationwide, with some states like California using strict legislation to protect users’ personal information and others like Mississippi having limited regulation. These laws are highly relevant to the application of digital marketing, including CTV, as they directly affect both the ability to measure performance through user matching and the ability to target audiences through first and third party data. There were pushes earlier this year to pass the American Privacy Rights Act, a bipartisan bill that would have unified the privacy framework nationwide, forced more data transparency from platforms, and given users the ability to opt out of targeted advertising and delete their data. It is unclear whether the Trump administration would support a national privacy law, but given privacy-limiting actions in his prior term, it may be a while longer before a national framework is established.

comprehensive privacy laws by state

Beyond privacy, there is also the question of industry consolidation, a topic we’ve often alluded to given the fragmented streaming landscape. Under Lina Khan’s FTC, tech companies have faced higher regulatory and antitrust pressure, but expectations are that the Trump administration will curb the FTC’s efforts, which may make the path to streaming consolidation more straightforward. More broadly, the return of the Trump administration signals a broader shift in audience interest towards new media platforms; Trump notably appeared on The Joe Rogan Experience during the campaign, vice president Harris appeared on Call Her Daddy, and the Harris campaign explicitly targeted streaming & digital video environments with major investments on YouTube, Hulu, Peacock, and more.

Share of U.S. population who have listened to a podcast in the past month

As we saw above, traditional linear TV is in a state of secular decline that even major political events cannot abate, and both sides of the aisle have recognized that fact.

While there are still lots of outstanding questions for the new administration (and two more months of the current administration), advertisers should be prepared for a landscape with ongoing – and perhaps increased – privacy fragmentation, accelerated publisher consolidation, and further audience shifts towards new, digital platforms like streaming and digital audio.  |  Osano, WSJ, eMarketer

2. As cord cutting pressures continue to mount, Comcast is considering a spinoff for its cable networks, which include properties such as MSNBC, Oxygen, Syfy, and Bravo. The new entity would remain owned by Comcast, but would free up the main company to focus on a digital future and could also give the company a means to acquire other distressed cable assets. Meanwhile, the company is exploring combinations for Peacock after already launching a partnership with Paramount for the SkyShowtime platform in Europe. While specific partnerships for Peacock have yet to be announced, it does seem a logical next step for the platform, as it struggles to keep up with the Google / Netflix / Amazon / Disney stranglehold on domestic viewership.

streaming share graph

Three years ago, Comcast reportedly explored an acquisition of Roku; while those considerations ultimately failed to materialize, that kind of deal – or even just a partnership with another FAST property – could be reexplored in the near future. Advertisers should keep an eye on these developments, as growing partnerships and combinations could be the catalyst for streaming CPMs to begin to rise again after meaningful reductions in recent years.  |  Nielsen

Paid Social

jack johnston headshot
Jack Johnston Senior Director Innovation

Since launching Threads, Meta has faced ongoing speculation about when it will begin monetizing the platform by enabling ads. Initially, the company indicated it would delay ads until the new platform reached a billion users. However, with 275 million active users and a report suggesting ads could appear on Threads by early next year, it seems Meta might be reevaluating its timeline. The company’s recent statements are non-committal, reaffirming that ads aren’t imminent, yet not entirely ruling out the possibility.

graph of Threads active users

This cautious stance aligns with Meta’s statements in its latest earnings call, where CFO Susan Li emphasized that Threads is not expected to drive significant revenue in 2025, with a focus on enhancing user experience and engagement first. For now, this suggests Meta is prioritizing growth and community-building on Threads, likely delaying any ad placements to avoid disrupting the user experience or causing backlash as the platform finds its footing.

For advertisers, this means Threads remains ad-free for the time being, allowing brands to continue observing user engagement trends and prepare for potential future opportunities. Should Threads continue on its growth trajectory, a more structured ad rollout could come sooner than later. But with Meta’s current focus on solidifying user value, it’s likely that significant ad integration on Threads won’t happen until the platform reaches higher user milestones and has a clearer direction.  |  SocialMediaToday, SocialMediaToday, The Information

Display & Programmatic

brian-binder_headshot
Brian Binder Senior Director Innovation

Creator earnings will soar in 2025. That is one of the main takeaways from EMARKETER’s Future of Digital 2025 report released last week, estimating that creator earnings will climb to $16B in 2025, up 16% YoY. This growth underscores creators’ growing influence on consumer purchasing decisions across various digital platforms.

creator revenue graph

The consumer journey has become heavily influenced by creators, particularly on YouTube, where 87% of consumers say they get the highest quality product information on the platform. Harvard Business Review’s study of the creator economy further quantifies this influence, estimating that if each creator can influence $10 worth of spending among just 1% of their followers per year, the total impact on consumer purchases could reach $130 billion—likely a conservative estimate of creators’ power.

The influence of creators isn’t confined to traditional social media platforms. EMARKETER forecasts podcast creator revenues will nearly triple by 2025, reaching nearly $1 billion. The TV and streaming sector is also experiencing creator-driven growth. Alphabet’s recent earnings report revealed a 30% increase in the number of creators earning the majority of their YouTube revenue through TV screens, demonstrating the increasing influence of creators across multiple formats. 

YouTube TV image

Given that viewers are turning to creators as their primary source of entertainment, particularly on the TV screen, YouTube is rolling out a new feature that allows creators to organize their content into episodes and seasons. This new feature will make it simpler for viewers to dive into and binge-watch their favorite creator content, creating a more seamless and engaging viewing experience.

As creators continue shaping consumer behavior and entertainment, brands must build comprehensive influencer and creator strategies that span all channels. By doing so, they can better engage with consumers throughout their decision-making process, ensuring they remain relevant and visible.  |  EMARKETER, HBR, Think With Google, The Verge 

Michelle Merklin headshot
Michelle Merklin VP of Paid Search Growth & Innovation

Immediately following last week’s re-election of former President Trump, Alphabet’s stock rose. This was in part due to speculation about potential shifts in antitrust policies that would come with a changing of hands in the White House, particularly concerning the ongoing cases against Google’s dominance in online search. Some believe the expected changes to Trump’s incoming DOJ could bode well for Alphabet (Google’s parent company), with experts wondering if the new DOJ would be more open to a settlement.

In October, Trump expressed reluctance about a potential Google breakup, saying, “If you do that, are you going to destroy the company? What you can do without breaking it up is make sure it’s more fair.” According to Brian Pitz, a BMO Capital Markets analyst, “While Google’s antitrust cases likely continue for the foreseeable future, a breakup is less likely, with rising potential for a ‘slap on the hand fine,’ similar to Microsoft in 2002.” However, Trump is not expected to drastically curtail antitrust enforcement, according to Reuters. The DOJ is expected to submit its more detailed proposed remedies later this month, after which time Google will have the opportunity to respond, with further court proceedings anticipated in the first half of 2025.  |  Investors.com, The New York Times, Reuters

Simon Poulton headshot
Simon Poulton EVP Innovation

1. We’ve previously told you about the UK’s Competition & Markets Authority (CMA) raising serious concerns regarding Google’s plans to deprecate 3rd party cookies in Chrome. We also told you about Google’s change of tack, announcing it would not be deprecating 3P cookies after all, instead favoring a solution that will empower users to make their own decision regarding their opt in/out status. We had noted in our analysis that the issue would likely come down to how exactly the consent mechanism would be implemented. Now, the next chapter in this David vs. Goliath saga is upon us in the form of the November 2024 CMA Privacy Sandbox Report

The CMA has formally acknowledged Google’s revised cookie consent model, which now enables users to actively opt in or out of data sharing. Despite this step toward user empowerment, the November 2024 report raises continuing concerns about Google’s Privacy Sandbox. The CMA highlights that Google’s framework could reinforce its market position by limiting alternative data-sharing methods where 3rd party cookies are unavailable. These unresolved concerns suggest that balancing user privacy with fair competition remains a core challenge for regulators and the ad tech industry; indeed, as we’ve told you in the past, these two priorities are in insoluble tension.

For marketers, the shift raises questions about how targeting precision and campaign optimization may be impacted within Chrome, where Privacy Sandbox is likely to limit access to 3rd party data alternatives.  |  UK CMA 2024 Report

2. AppLovin, a name for a business that one may assume is an homage to the 2007 teen comedy Superbad, has been in the headlines this week on the back of its miraculous stock performance. AppLovin’s recent market gains have propelled its market cap above The Trade Desk, making it a pivotal moment for advertisers to reassess this platform’s potential. Self-described as an alternative to search and social, AppLovin’s programmatic mobile app advertising platform stands out by owning both the buy and sell sides of the business.

The company’s 2022 acquisition of MoPub from Twitter exemplifies the power of vertical integration in ad tech, combining demand-side (DSP) and supply-side (SSP) platforms. This consolidation has enabled AppLovin to leverage cross-platform insights from a wealth of bidding and performance data, allowing advertisers to maximize ad efficiency in ways few competitors can replicate. In a recent discussion between industry experts Eric Seufert and Ben Thompson, it was highlighted how AppLovin’s dual-control setup creates an ecosystem similar to Google’s. This structure allows for seamless optimization across its ad inventory, positioning the company for further revenue growth and competitive advantage.

For advertisers, AppLovin may well present a novel opportunity for brands that have reached a point of diminishing returns within Search & Social mediums. It is unlikely to be a universally performant medium for all verticals, but with an upcoming focus on Ecommerce, we suggest watching them closely as a potential medium for expansion.  TechCrunch, Stratechery

Consumer Economy

Sean Odlum
Sean Odlum CPO

1. The major macroeconomic news of the week is a fresh inflation print, which showed CPI inflation increasing to 2.6% YoY for October, up from September’s 2.4%. September’s figure was the lowest reading of the CPI since February 2021, the month before the post-pandemic inflation spurt took off.

consumer-price index graph

This latest inflation reading comes a week after the Fed cut its benchmark interest rate by a quarter-point, its second rate reduction in two months. This latest inflation reading, alongside a minor civil proceeding last week, creates some uncertainty around what most analysts have expected to be a consistent path of rate cutting. Many economists expect inflationary policies from the new administration; to the extent the Fed shares these expectations, it may choose to keep monetary policy somewhat tighter than otherwise. And a higher inflation reading would also argue for a pause in rate reductions. Still, financial markets are pricing in an ~80% chance of another rate reduction next month.  |  WSJ, Bloomberg    

2. MOTIVATED REASONING WARNING: We’ve given you frequent updates on consumer sentiment as a barometer of the general health of the economy (see here, here, here), but we’ve never parsed that data by political affiliation. As you may be aware, there was a slightly contentious election last week, and it’s a good time to remind ourselves that consumers’ perceptions of the economy are heavily influenced by political views. Behold:

consumer sentiment graph by political party

It would seem that we can draw three firm conclusions here:

  • As we’ve noted before, consumer sentiment is well below pre-pandemic levels. While Democrats are (for the moment) a bit rosier than pre-2020, Republicans are much more bearish. On net, this is highly consistent with our picture of a significant decline in sentiment on a population basis.
  • Consumers of both parties can agree on at least two things: pandemics are bad, and excess inflation is bad.
  • The economy is much better when my team is in charge.

To the extent that your customer base is meaningfully left- or right-coded, do be aware that there is a pretty violent swing underway right now in the relative degree of economic optimism within those groups. Those on the political right will probably be in a more spendy mood this holiday season, while those on the left may be in a more parsimonious mood.  |  NYT 

You Might Be Interested In

This field is for validation purposes and should be left unchanged.

*By submitting your Email Address, you are agreeing to all conditions of our Privacy Policy.

]]>