PPC news - September 2024

Google adds generative AI insights and shopping ad campaign goals

Google has introduced several updates to assist retailers during the holiday shopping season, including real-time shopping trends in Google Merchant Center, AI-powered insights, and automated inventory syncing.

Retailers can now monitor shopping trends in real-time, enabling them to adjust their inventory and product descriptions based on what customers are currently searching for. Additionally, new generative AI features in Merchant Center Next provide quick summaries of product performance and allow for custom reports tailored to specific data queries.

Google is also streamlining the management of local inventory ads by automatically syncing in-store availability from retailers' websites. This update makes it easier for customers to find products nearby.

These updates are designed to help businesses stay agile and make data-driven decisions during the crucial holiday season.

Perplexity to launch ads in Q4, including video and sponsored questions

AI search engine Perplexity is set to introduce ads in Q4 2024, focusing on 15 key categories including: arts and entertainment, finance, food and beverage, health, and technology.

Advertisers have the option to run video ads on mobile devices (appearing at the top of related questions) or on desktop screens (displayed on the side). These ads will feature accompanying text to promote their products.

Perplexity also plans to allow advertisers to sponsor related questions, ensuring their content is featured when users click on these queries. With over 230 million queries processed globally each month, this advertising initiative marks a significant step in Perplexity's monetisation strategy.

Reports from CNBC and Adweek have highlighted these upcoming features based on details from a pitch deck.

Google reportedly encouraged advertisers to target teens on YouTube

Google is facing scrutiny after allegations surfaced that its sales representatives encouraged advertisers to target teenage users on YouTube, which, if true, violates the platform's own policies aimed at protecting minors.

Several ad buyers have reported that Google sales reps advised them to target YouTube’s "unknown" user category, a demographic group where user data, including age, is not disclosed to advertisers. This category likely includes teenage users, raising concerns about the ethical implications of such targeting. One ad buyer mentioned that a Google representative specifically suggested targeting 16+ year-olds with "disposable income" using this method.

These practices appear to go against Google’s 2021 policy announcement, which prohibited advertisers from targeting users under 18 based on age, gender, or interests. Despite this policy, it seems that some large brands have been able to persuade Google to allow the use of their own first-party data to target teens on YouTube, further complicating the issue.

The revelations suggest a gap in Google's enforcement of its policies, particularly in protecting minors from targeted advertising. With legislative efforts like the updated Children’s Online Privacy Protection Act aiming to tighten restrictions on online advertising to teenagers, this situation highlights the importance of stringent policy enforcement.

In response to these allegations, a Google spokesperson reiterated that the company "strictly prohibits ads being personalised to people under 18" and stated that action will be taken to reinforce this policy among sales representatives.

Advertisers are urged to exercise caution when targeting audiences on platforms like YouTube, especially when it comes to minors. The legal and reputational risks associated with violating advertising policies and potentially exploiting young users outweigh any short-term gains.

This incident underscores the ongoing tension between the desire for data-driven advertising and the ethical responsibility to protect young internet users from inappropriate content. As regulatory pressures increase, advertisers must navigate these challenges carefully to maintain both compliance and public trust.

Google apologises to advertisers for major shopping ads glitch

In July, Google Ads experienced a significant glitch impacting its Shopping product, resulting in advertisers' products being displayed in other merchants' ad accounts. This issue potentially exposed business data to competitors and led to frustration among advertisers.

Key points of contention:

• Inadequate communication: Critics argue that Google’s use of euphemistic language like "system issue" lacked accountability. Industry experts like Mike Ryan and Melissa Mackey have criticised the lack of a clear and direct explanation.
• Compensation confusion: There has been inconsistency in communication about compensation for affected advertisers.
• Lack of impact reports: Advertisers have called for detailed impact reports, including information on how much ad spend was affected and the extent of exposure to competitor data.

Moving forward:

• Clearer explanations: Advertisers are urging Google to provide a detailed explanation of the glitch's cause and impact.
• Timely compensation: There is a call for a definitive timeline for issuing credits to affected accounts.
• Preventative measures: Advertisers want assurances that Google is implementing measures to prevent similar incidents in the future.

This incident has highlighted the need for transparent and timely communication from ad platforms, especially in crisis situations. Maintaining trust between platforms and advertisers is crucial for the industry's stability and growth.

TikTok partners with Amazon for in-app shopping

TikTok has launched a new feature integrating Amazon shopping directly into its platform, enabling users to make purchases without leaving the app.

This partnership allows advertisers to leverage TikTok’s highly engaged user base, potentially increasing conversion rates by reducing the friction between product discovery and purchase.

How it works:

• Seamless integration: Amazon product recommendations will appear in users' “For You” feeds.
• Direct purchases: Users who link their TikTok and Amazon accounts can complete purchases directly within TikTok.
• Real-time information: The integration displays real-time pricing, Prime eligibility, delivery estimates, and product details.

The bigger picture:

• Expanding social reach: This move is part of Amazon's broader strategy to enhance its presence on social media platforms, following similar partnerships with Pinterest, Meta, and Snapchat.
• TikTok shop growth: This integration supports TikTok Shop, which aims to increase its influence in the e-commerce sector.

Challenges and considerations:

• User reception: TikTok users have had mixed reactions to ads and shopping content in their feeds, which may impact the reception of this new feature.
• Impact on engagement: The effectiveness of this integration in boosting Amazon's sales through social channels and its effect on TikTok’s user experience will be closely monitored.

Google's illegal search monopoly: the implications from the trial

Google has been ruled an illegal monopoly, marking a significant moment in antitrust enforcement. The decision, delivered by Federal Judge Amit Mehta, concludes a landmark 10-week trial and could reshape the tech landscape. Here's a breakdown of the potential implications:

1. Legal and market dynamics:
   • The ruling could set a precedent for future tech monopoly cases, potentially impacting companies like Amazon, Apple, and Meta.
   • The legal process is likely to be prolonged, with an appeal and remedy phase determining the final outcomes.
2. Advertising and marketing impact:
   • Advertisers should prepare for potential changes in digital marketing strategies as remedies are determined.
   • There may be increased competition and possible shifts in ad market dynamics, including potential changes in Google's advertising practices.
3. Google’s response and appeal:
   • Google plans to appeal the decision, arguing that its search engine is the best and questioning the fairness of the ruling.
4. Future developments:
   • The forthcoming Department of Justice trial in September will address Google’s ad tech business, potentially further affecting its market position.

As the legal battles continue, the tech industry and digital advertising world will closely monitor the developments to gauge their long-term impact.

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