Digital Advertising in 2022
stratechery.com
stratechery.com
Businesses are now realizing the ROI of paid channels continues to diminish (if it was ever really there at all given how fake many of the reported metrics seem to be). Instead they are finally understanding that their role isnt to shove marketing messages down peoples throats, but instead to earn their attention via the value their content can add to existing needs.
Content + PR will become the defacto way most companies market themselves, where PR is just multi-channel distribution of the content being created by the brand.
Source: Own a fast growing B2B ads agency.
In other words, digital advertisement is moving into a shitty badly designed copy of the form it had at the time it used to bring exceptional ROI.
1. Many advertisers will revert back to using pixels instead. I wonder if you can even redirect people from an app post signup to a website with a pixel and track them that way? (or do the Apple ToSs not allow that?)
2. Alternatively Facebook need to build a tool where you can create your entire apps signups process inside facebook, so all tracking still takes place inside the facebook app, which post signup redirects via a magic link to the targeted app? So you'd basically have something like Facebook leads but built for actual signups.
I'm no fan of Meta, but Apple wields too much power over every single industry. Just today it became clear they're gunning for the payments industry... Good god. Movie studio, car, 50+% of American computing. Standard Oil and then some.
they are a majority in individual countries thou, which is the context that consumer protection agencies usually care about.
no, market share is not a good proxy for product quality.
besides that, i dont get what you are trying to say.
What about in app purchases?
>and fewer than half of iPhone users use the App Store.
Woah! Are there any reported stats on this? That sounds crazy that so many people just stick to the default apps installed on the phone.
However, I checked and it looks like the majority not using the App Store is several years out of date, which makes sense given the popularity of free social media apps.
A workaround right now is FB allows you to upload 'offline conversions' but you can just upload your own digital conversion data...
And you can always just use unique links to track actual purchases/donations direct from ads.
But even the offline conversion doesn't work for a key part of my business, which was raising money for politics & non profits from FB ads. FB doesn't seem to optimize on the offline conversion data as well as it used to pixel data even though it says the match rate is high.
#2 could possibly exist in a wechat type of way. I like the idea!
FB actually used to have a ton of use of those in fb browser games. Like that farm click game. They are trying to do something like this with messenger, payments, instagram store, marketplace. But they still own all that.
I would love to see if they could further open up messenger to more immersive 3p apps.
Or like steam have a platform to built apps within messenger.
But isn't that the vision of Meta too?
I wish we could take donations for political campaigns via FB's processing but it's not allowed
1. He argues that FB is able to succeed with something like Reels which are better than search at driving consumer behavior. This is not how marketers view the ad ecosystem. Early on the article he claims that the marketing funnel is compressed down to a single impression in some cases. That is where fortune 100 advertisers would disagree. They use multi-touch attribution to understand the value of each impression. In addition to incrementality tests to validate the change in consumer behavior from ad exposures. I see this as a major jump in logic to defend FB's business.
> ... far more important form of advertising than search ads: yes, there are scenarios where a firm can surface something that fits exactly what you are searching for, but oftentimes search ads feel like a rake on organic results that would have given you what you were looking for anyways.
2. He goes onto an anti-Apple take regarding Apple's own data collection policies. He loses the plot on why AppTrackingTransparency exists. It prohibits apps to collect user data and link that data to 3rd party sources without user consent (opt-in). App developers can continue to user their 1P data within their properties. That is the bare minimum amount of data restrictions our daily smartphones should have. This is a generally a good thing. FB can continue to monetize itself using a breathtaking large amount of data from both opt-in users and opt-out users while respecting ATT policies. Why did FB fail to ready its ad products years in advance? Apple provided plenty of notice. FB could've easily bucket tested each one of its solutions with limited data and prepared accordingly with modeled or panel based approaches. I see this as a FB failure or a coordinated approach to play victim. Either way, keeping data in silos is better than sharing data from users across data players which consumers know nothing about. In this respect, Google's approach to Privacy Sandbox at least grants it air cover when it comes to consumer trends. FB has chosen to do nothing and they are out of ideas.
Lastly, from I've gathered Apple struggles with its own ad business because of ATT.
The article - which I think is on point I agree with almost everything they wrote - mentions online only brands which are a great example.
I don't think a lot of these brands could have been created or grown without effective DR digital ads and FB was the best by far at roas.
I get tons of ads for expensive athletic shorts (which are total gay bait eye candy so that's probably why I get them despite not buying any except patagonia lol).
I see the 'Ten Thousand' brand at the gym all the time so people really do buy from instagram ads and IG shop. I just googled 'athletic short' and they were the top sponsored results there too, goes straight to a purchase page. I have not seen them on youtube doing branding videos though.