PPC news - August 2024

Google’s AI innovations transform advertising amid privacy concerns

Google’s focus on AI is reshaping its advertising products, creating new opportunities for marketers. This AI-driven approach, while promising, comes with the challenge of balancing innovation with privacy issues.

Key updates

• AI-powered features: Google introduced over 30 new AI-driven ad features in Q2, aiming to improve workflow efficiency and creative asset production.
• Retail focus: AI tools in Merchant Center help retailers generate campaign-ready assets.
• YouTube growth: Connected TV (CTV) views on YouTube have surged by 130% over the past three years, making YouTube the second most-watched platform after Disney.
• Search evolution: AI Overviews in Search are showing positive trends, with plans to test search and shopping ads within these AI Overviews.

Google executives highlighted that while AI capabilities are promising, their translation into practical solutions for consumers and enterprises is still in the early stages and will require time.

Google acknowledges the importance of user choice in the context of third-party cookies, indicating a shift towards prioritising privacy in its approach.

Google’s AI-driven advancements are transforming the digital advertising landscape, offering significant potential for stronger marketing performance. However, the company must navigate the delicate balance between innovation and privacy to maintain consumer trust.

Google scraps plans to kill third-party cookies in chrome

Google has announced a significant shift in its privacy strategy, deciding not to phase out third-party cookies in Chrome as previously planned. Instead, Google will introduce a new approach that aims to give users more control over their web browsing privacy.

This decision is a relief for many in the advertising industry who have been preparing for a cookieless future. It represents a major change in Google's privacy strategy.

• New Experience in Chrome:
  • Users will have more informed choices about their web browsing privacy.
  • Privacy Sandbox APIs will continue to be developed as alternatives.
• Regulatory discussions:
  • Google is in discussions with regulators, including the UK's Competition and Markets Authority (CMA) and Information Commissioner's Office (ICO).
• Privacy Sandbox test results:
  • 89% recovery of advertiser spend in Google Display Ads.
  • 97% recovery of conversions per dollar in Google Display Ads.
  • 55% recovery in remarketing spend for Google Ads.

Google aims to balance privacy concerns with the needs of the ad industry and its business model. This decision indicates an effort to preserve an ad-supported internet while improving online privacy.

This reversal comes after over four years of planning and multiple delays in Google's efforts to phase out third-party cookies.

Google has not provided a specific timeline for the new approach, likely to avoid the pitfalls of previous delays.

Netflix shifts focus to ad-supported tier amid surging subscriber growth

Netflix is making a strategic shift by phasing out its cheapest ad-free plans in Canada and the UK, with plans to extend this change to the U.S. and France. This move aligns with the company's evolving business model to prioritise its ad-supported tier, which has seen significant growth.

• Subscriber growth:
  • Netflix gained 8 million global subscribers in Q2 2024.
  • The ad-supported plan now accounts for over 45% of new signups in markets where it’s available.
• Financial performance:
  • Revenue: $9.56 billion (up 17% YoY)
  • Net income: $2.15 billion (up 44% YoY)
  • Global subscribers: 277.65 million (up 16.5% YoY)

The shift towards the ad-supported tier means a growing audience that advertisers can target, presenting new opportunities for brands to reach a broader audience. As Netflix expands this model, it will likely attract more advertisers looking to tap into its large and engaged user base.

“Our ad revenue is growing nicely and is becoming a more meaningful contributor to our business,” stated Netflix in its earnings report. The company is seeing strong financial results, surpassing projections with significant growth in revenue, profits, and subscribers.

While Netflix is scaling its subscriber base rapidly, it is also facing the challenge of monetising the growing ad inventory efficiently. This presents both a challenge and an opportunity for the company as it balances subscriber growth with ad revenue generation.

Hidden Google tool reveals GA4 and Google Ads discrepancies

GA4 includes a concealed report that helps users compare conversions exported to Google Ads and explains discrepancies between the platforms.

Key details

• Purpose: The tool is designed to help advertisers reconcile differences in conversion data between GA4 and Google Ads, potentially enhancing campaign accuracy and performance.
• Access instructions:

1. Navigate to your standard GA4 property URL.
2. Append “/advertising/key-event-differences” to the URL.
3. The complete URL should resemble: https://analytics.google.com/analytics/web/#/p153293282/advertising/key-event-differences.

• Discovery: Brais Calvo Vázquez shared this shortcut on LinkedIn, bringing wider attention to this hidden report.
• Availability: The report isn’t accessible for all GA4 properties, indicating selective availability or a phased rollout.

• Discrepancy management: This hidden feature offers a valuable tool for marketers to understand and address discrepancies in conversion data between GA4 and Google Ads.
• Campaign optimisation: By reconciling these differences, advertisers can improve the accuracy of their conversion tracking, leading to better-informed decision-making and optimised campaign performance.

• Extended testing: Some users have reported seeing this feature for over a year, suggesting that Google has been developing or testing it extensively before a potential full release.

• Official release: It remains to be seen whether Google will officially release this tool or keep it hidden. Given its usefulness for marketers, its official release could be highly beneficial for addressing data inconsistencies.

Amazon expands ad offerings for non-Amazon sellers

Amazon has introduced a beta feature for businesses that don’t sell products on its platform, allowing them to generate leads through display ads across Amazon’s network.

Key details

• Purpose: Enables non-Amazon sellers to capture customer interest and expand their customer base using Amazon’s data-rich environment.
• Functionality:
  • Lead generation ads allow customers to sign up for information directly within the ad.
  • Ads appear across Amazon properties, including the homepage, product detail pages, Twitch, IMDb, and third-party sites.
  • Placements are optimised based on targeting tactics and desired outcomes.
• Opportunities: Provides businesses access to Amazon’s vast user signals and extensive network for better customer engagement.

• Expansion: Signals Amazon’s intent to compete in the broader digital advertising space, beyond its ecommerce platform.

Amazon expands Sponsored TV Ads to UK, mirroring U.S. success

Amazon is rolling out its Sponsored TV ads in the UK, following their successful launch in the U.S.

Key details

• Availability: In beta, accessible to sellers in the Amazon Brand Registry, vendors, and agencies.
• Ineligible categories: Some categories, such as health and personal care, are restricted.
• Platforms: Ads will appear on popular streaming platforms like Freevee and Twitch.

• Opportunities: Provides brands new ways to reach streaming audiences with targeted ads using Amazon’s vast data.
• Effectiveness: Leverages Amazon’s first-party shopping and streaming data for precise ad targeting.

Google Ads makes broad match default for new search campaigns

Google Ads has updated its default setting to broad match for new Search campaigns, shifting from the previous default of having broad match turned off.

Key details

• Default setting: Broad match is now enabled by default for new campaigns.
• Impact: This could lead to increased costs and performance issues if negative keywords aren’t properly managed.
• Automation: This change supports Google’s push for more automated and AI-driven campaign management.

• Performance: Advertisers need to be cautious with broad match settings to avoid unintended broad targeting and potential inefficiencies.
• Advice: advertisers should adjust match types to align with their specific targeting needs and monitor how the new default affects your campaigns, particularly if you prefer more precise targeting with phrase or exact match.

Microsoft confirms Reddit blocked Bing search

Reddit has updated its robots.txt file to block Bing and several other search engines from crawling its site, effective July 1, 2024.

What happened

• Reddit's new robots.txt file prevents most search engines and AI tools, including Bing, from crawling its content. Google is not affected by this change.
• Impact: Bing has ceased crawling Reddit, resulting in a lack of new Reddit content in Bing Search results.

Microsoft confirmed it is honouring Reddit’s robots.txt directives. A Microsoft spokesperson stated, “Bing stopped crawling Reddit after they implemented their updated robots.txt file on July 1.”

Reddit’s move is partly due to its recent licensing deal with Google. Reddit spokesperson Tim Rathschmidt clarified that this action is part of ongoing discussions with various search engines, not solely related to the Google partnership.

• Search visibility: Reddit content will no longer appear in Bing Search, potentially affecting traffic and visibility for Reddit pages.
• Industry impact: This move raises questions about how major websites might negotiate content access and what this means for smaller publishers.

This development highlights the evolving dynamics between major content platforms and search engines.

Thanks for reading! Be sure to check back next month for the latest trends and updates in the world of PPC in September.