big advertisers
Large advertisers, faced with an inflationary scenario and the obstruction of supply chains, chose for more cautious strategies and chose to moderate their investment in marketing. However, other large mass consumption companies such as Coca Cola or Nestlé hope to increase their participation in advertising. Martin Sorrell, chief executive of S4 Capital, told the Financial Times they expect a surge in investment, adding: “Rumors of their demise are greatly exaggerated.”
Advertising on social networks is characterized by a large participation of companies financed with risk capital, the financing that was most affected.
tik tok
Despite having changed the form of consumption in social networks, Tik Tok has had a hard time monetizing advertising on its platform. Analysts at eMarketer estimate that the platform will generate about $5 billion in ad revenue in the US this year, a fraction of Facebook’s revenue.
However, hehe other platforms reacted to the emergence of Tik Tok and sought to generate short content spacesas is the case of Instagram with the Reels.
Manzana
Apple CEO, Tim Cookinsisted this week that its new App Store ad business “wasn’t big compared to others”. However, it has grown rapidly at the same time as the iOS privacy restrictions introduced last year. have reduced Meta’s income by US$10 billion.
This week, Meta accused Apple of “undermining others in the digital economy to grow its own business”. However, Meta executives insisted in Wednesday calls with analysts that the threat of Apple’s app tracking changes “diminished” in the third quarter, after it developed new tools to measure ad performance.
Games
The Video game creators became major digital platform advertisers. Mobile game developers have become particularly adept at calculating the return on every dollar spent on Instagram or YouTube. But Apple privacy changes affected advertisers’ ability to make those calculations, just as gamers began to look up from their screens two years into the coronavirus pandemic.
In August, Electronic Arts CEO Andrew Wilson noted “some macro mobile slowdown.” Although gaming has proven resilient in past recessions, that was before the rise of free mobile games. The impact of this trend is already showing in Apple and Google’s app store revenue, much of which is driven by social media advertising. Apple chief financial officer Luca Maestri described “some weakness” in gaming due to “macroeconomic headwinds,” which he expected would continue.
electronic commerce
retailers, including Walmart and Target have been quietly building their own digital marketing businesses. following the example of Amazon, which generated a new competitive threat to platforms social networks. Advertisers have suddenly had more options on how to reach consumers. Search and banner ads can also reach customers closer to the point of purchase, an important factor for some marketers. So-called retail outlets have also been less affected by recent privacy changes, such as those implemented by Apple, since they don’t rely on data from “third parties” that track users across the web.
Goal
The parent company of Facebook refuses to reduce its investment in the metaverse despite the drop in investment from advertisers. Some investors and analysts see Facebook’s founder as the biggest threat to the company’s longevity. MoffettNathanson analysts even compared Meta to traditional media companies Big Tech has disrupted over the last decade. “Again, with each passing quarter, Meta’s perpetual decline in competition seems more and more believable,” they wrote.
Source: Ambito
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