TikTok on the Brink of Ban: Are Marketers Prepared for the Fallout? Is TikTok's future in jeopardy? Marketers are in hot water as
murky waters cloud data privacy concerns. Find out what industry leaders are saying about the potential ban and how businesses can adapt their social media strategies in our latest article
TikTok, the wildly popular video-sharing app that has taken the world by storm, is facing yet another hurdle in the US as lawmakers continue to voice concerns over its national security implications. For advertisers and
marketers, a potential ban on TikTok would have serious implications, forcing them to reorganize their social media strategies and find alternative platforms to reach their target audiences. According to projections, ad revenue from TikTok is set to surpass $6 billion by 2023, which is triple what it was in 2020. But if the platform is banned, that figure could climb to $14 billion by 2026.
With TikTok reaching over half of US adults, there is a significant opportunity for advertisers to collect data and influence a large portion of the country's population. However, some US lawmakers believe that TikTok is being used by the Chinese government to spy on US users and spread potentially harmful content via its algorithm. These concerns have led to bans on TikTok on government
devices, including for the US military, Department of Homeland Security, and some universities. Indiana’s Attorney General Todd Rokita has also filed two lawsuits against the app, one for promoting inappropriate content to young users and the other for misleading customers into believing their data was protected from the Chinese government. While the fears surrounding TikTok may not be entirely unfounded, many advertisers and marketers are still invested in the platform. However, the sentiment has shifted, and marketers are now more cautious than ever, especially as a potential ban looms. Marketers understand that it's not just about ad spending; it's about the sentiment.
The intense enthusiasm for TikTok that has emanated from marketers over the last few years is making way for reservation and, in some cases, trepidation. The uncertainty has left marketers with more questions than answers, and many are now seeking out TikTok executives for clarity. I learned this week from Digiday that Anthony Macro, head of display, video, and social at Croud, believes that
TikTok's sales team is finding it hard to respond to all his questions. While they might be in a better position than marketers to know about potential bans or new product releases, they are unlikely to reveal anything to their clients until it's official. Despite these concerns, marketers are not likely to make any knee-jerk reactions to the current situation. Instead, they are taking advantage of the opportunity to build up their TikTok strategy while also increasing their efforts
elsewhere. Also, Keith Bendes, VP of strategy at Linqia, suggests that brands are not deprioritizing their TikTok strategy or moving away from the platform. However, they are taking steps to ensure their campaigns are cross-platform, and contingency plans are in place in case of a ban. While the situation is concerning, marketers are finding ways to adapt and continue reaching their target
audiences. TikTok has launched Project Texas, a $1.5 billion effort to rebuild its app on US servers, wall the app off from ByteDance and China, and weave in more oversight and transparency. The company is also partnering with major software company Oracle to host US user data and review the code for its algorithm. If TikTok is banned in the US, digital marketers will have to reconsider their presence on other social media channels. Instagram Reels, Snapchat Spotlight, and YouTube Shorts have already co-opted many of the features that define TikTok, making it easier for marketers to transition. Since businesses are trying to do more with less, taking a risk by
investing in TikTok may not be something some businesses are willing to do right now. For brands with an active Gen Z audience, it may be wise to proactively test advertising on Instagram Reels, Snapchat Spotlight, or YouTube Shorts if you're not already doing so. A TikTok ban would mean that competition would increase for advertisers on these platforms. One thing is for certain: if TikTok
is banned, entire social media marketing strategies would need to be reconsidered to ensure incremental user gains aren't lost. It's increasingly important for creative to be developed per channel, as the video that works for Facebook is very different from the video that works for TikTok. While the ban on TikTok is gaining steam across Western governments, marketers are concerned but not
worried about what's to come. They understand that this is not their first encounter with a social media platform causing concern with privacy issues, and they know it will eventually settle down. It's unlikely that advertisers will invoke their own ban on TikTok, given that there is no hard proof that the app is a privacy concern. TikTok is one of the main ways marketers can reach a lot of
younger people at the same time, making it a big thing to give up. TikTok has become more than just an upper-funnel play; it has become a full-funnel marketing channel. If TikTok were to be banned, businesses would have to allocate their social media budgets to different channels and rethink their social media marketing strategies to prevent losing incremental user gains. The video that
works for Facebook may not be suitable for TikTok; therefore, businesses must consider why users are opening each app and what they expect from brands on each platform. Three Western governments (the U.S., the EU, and Canada) have ordered TikTok to be removed from federal devices over the past week due to concerns that the platform's parent company, ByteDance, could share TikTok user data
with China's authoritarian government. While some countries like the U.K. have opted not to follow suit, the overall message is clear: more lawmakers worldwide are making bold moves to restrict TikTok. Despite these concerns, marketers remain unfazed and are still using TikTok as a means of reaching their target audience. The bans on TikTok have breathed new life into concerns that had been
brewing for some time. Some clients, refuse to implement TikTok's tracking pixel over security concerns. However, advertisers are unlikely to invoke their own ban on TikTok, given the lack of hard proof that the app is a privacy concern. It is evident that TikTok remains an attractive channel, especially for Gen Z users who have adopted the app as the main space for them to share, connect, and build online communities. Over at Digiday we learned that Hannah Petts, social media director at Dewynters, believes that businesses are likely to explore more earned media options to reach Gen Z given the recent wave of bans. The rationale behind the strategy of reaching people via earned media or organic content is rooted in its ability to be less reliant on advertising that could mean sharing data with the app. TikTok has become a crucial marketing channel that businesses can't ignore, especially for reaching Gen Z users. While concerns about data privacy and security have led to bans in some countries, marketers remain unfazed and continue to use the app to reach their target audience. However, the bans have brought to light concerns that have been brewing for some time, and businesses may need to explore more earned media options to reach their audience.
Despite the challenges, marketers know that this isn't the first time they've faced privacy concerns, and they remain optimistic that it will eventually settle down. TikTok's potential as a full-funnel marketing channel cannot be ignored, and businesses will need to adapt their strategies accordingly to ensure they don't lose incremental user gains. |
All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
Finding niche keywords can help businesses improve their search engine optimization (SEO) strategy, bring in more Pay-per-click (PPC) leads, score wins faster, and save money. Niche keywords are more specific and use at least three words, so they typically have lower search volumes, but the conversion rates are
usually higher, and the organic traffic is more qualified. Businesses can find niche keywords by defining their target audience, looking for common questions in their niche, using keyword research tools, comparing keyword metrics, and tracking keyword performance over time. According to the CMO survey by Deloitte LLP, Duke University/Fuqua
School of Business, and the American Marketing Association, the average digital marketing spend has only increased by 8.8% YoY, which is a 45% decrease from the 15% increase seen last year. Marketing budgets are also in a bad shape, with spending growth falling by 72% during the same period, to show an increase of only 2.9%. Pure-play internet brands are the least affected by inflation. Digital is drawing 53.8% of the average marketing budget, and mobile now draws an average of 19% of
the average budget, compared to the 18.7% projected last year. Social media is also getting more money. It has risen by 17%, and is projected to rise by 26.4% in five years. Disney is folding Marvel Entertainment, a smaller product- and comic book-focused division separate from Marvel Studios, into other Disney units as part of the company's
ongoing restructuring plan that includes layoffs. Marvel Entertainment's chairman, Isaac "Ike" Perlmutter, co-president Rob Steffens, and chief counsel John Turitzin have all been dismissed, while the division's president, Dan Buckley, is staying on and will report to Marvel Studios chief Kevin Feige. Perlmutter, who sold Marvel to Disney in 2009 for $4 billion and holds a significant share of Disney stock, had his control over Marvel Studios movies cut off in 2015, and last year backed
a campaign by activist investor Nelson Peltz to join the Disney board. Michelob Ultra has become the first major sponsor of Women’s Sports Network, a free ad-supported streaming service (FAST) dedicated to women’s sports. The year-long partnership will give Michelob Ultra access to the network's studio to develop content showcasing its
impact on women's sports and athletes. The deal aims to help league partners connect with fans more effectively. Michelob Ultra's marketing has increasingly focused on sports and has been a driving factor behind the brand's growth. Women’s Sports Network is backed by FAST Studios and launched in November 2021. It has league partners such as the Women’s National Basketball Association (WNBA) and Ladies Professional Golf Association. MoffettNathanson Research reports that live, linear TV viewership continues to decline as networks head into upfront season. Cable TV networks have seen significant viewership drops, with monthly declines of 18-21%, while broadcast networks have been more stable with month-to-month declines of 3-11%. The analysis cautions that growth from advertising video-on-demand (AVOD) and connected TV
advertising may not offset the pressure on linear TV. The report forecasts that national TV advertising will drop by 5% in H2 2023, while AVOD revenue will rise by 13% in the last six months of 2023. A new study from Horowitz Research has found that nearly seven in 10 (69%) of US TV viewers use free streaming services at least monthly, up from
42% in 2019. Respondents reported highest use of Peacock, Tubi, Pluto, and YouTube. The report also found that pay-TV penetration has remained steady, with half of TV content viewers subscribing to traditional cable or satellite services. Overall, customer satisfaction with pay-TV remains high at 80%, with respondents expressing a desire for managed services to help control costs. The marketing technology landscape has rapidly expanded in the last decade, with nearly 10,000 logos featured in the latest supergraphic created by Scott Brinker, VP of Platform Ecosystem Management at Hubspot. While martech tools can be beneficial to streamlining marketing roadmaps, Ilene Strauss Cohen, VP of Content and Marketing at Perfect Sense, argues that they are not a replacement for actual strategy. Martech tools can optimize human
resources, helping marketing teams to focus on creative output, and improve KPIs by providing a more holistic view of marketing spend. However, martech tools are not a solution in and of themselves, and it's important to ensure that the right human resources are in place to make the most of them. Dr. Augustine Fou, an ad fraud expert, doesn't
believe that ChatGPT will enable a golden age of ad fraud. Fraudsters have already been using algorithms to create fake sites for more than a decade, and these sites used bot traffic and were often filled with keywords that tricked SEO, making them appear high in search results. Fraudsters also used affiliate links to game affiliate marketing. These fake sites are often created using templates and algorithms, and they generate identical bot traffic that rises and falls in identical
patterns. In other words, the golden age of ad fraud started two decades ago, and ChatGPT will only push the percentage of fake sites slightly closer to 100%. ByteDance, the Chinese tech giant behind TikTok, has launched a new app in the US called Lemon8, described in app stores as a “lifestyle community app.” Despite Washington’s
efforts to ban TikTok, ByteDance appears undeterred, with Lemon8 reaching the number 10 spot in Apple’s US App Store download charts. The company is also reportedly courting creators for the new app. ByteDance has previously introduced other services to the US, such as enterprise software Lark, which includes productivity software similar to Google Docs and Sheets. Celebrities such as William Shatner and Monica Lewinsky are criticizing the upcoming changes to Twitter's verification process, including removing legacy blue checks this weekend and only recommending Twitter Blue accounts on the "For You" tab starting April 15. It is uncertain whether Elon Musk, who has been pushing for the changes, will be swayed by the celebrity backlash. However, Musk has caved to public pressure before, including lowering the price of
Twitter Blue to $8 per month from a reported $20 after Stephen King complained. The impact of the changes on Twitter's subscription program, which has had weak subscriber growth, also remains to be seen. Google has launched a new Ad Transparency Center, which allows users to search for a brand and see everything from what ads the brand is
running to which ads are served in which locations, as well as individual ad formats. Meanwhile, Meta has announced Click-to-Messenger Ads, allowing viewers to contact brands directly via Reels videos, and has made it possible to add a call-to-action to organic images and videos in Reels ads. Bing, too, is getting in on the action with a new chat feature that includes an “ad” label in front of the citation mark, letting users know when a source in question is sponsored. Jeff Gennette, the CEO of Macy's, will be retiring next year after a 40-year career with the company. He plans to step down in February 2024. Tony Spring, the chairman and CEO of Bloomingdale’s, will replace him as CEO and president. Spring has been with Bloomingdale's for 36 years and was appointed by Macy's board of directors. Gennette led
Macy's through a difficult period that included store closures, layoffs, and a shift to digital and omnichannel selling. Spring will be tasked with continuing the company's turnaround. Since the launch of Massachusetts sports betting on Mar. 10, gambling ads have been appearing on tv, radio and social media, with local sports stars promoting
betting apps to an audience of all ages. The Massachusetts Gaming Commission (MGC) was criticised for not doing enough to protect consumers from advertising, prompting the attorney general's office to urge the commission to impose stricter ad rules. The MGC voted to prohibit affiliate marketing companies from signing revenue-sharing agreements with sports betting operators, but allowed for cost-per-acquisition (CPA) affiliate activity. The attorney general's office also proposed
stronger ID-authentication requirements, restricted advertising to young people, banned certain promotional offers, and forbade the use of personal data to target users via advertising and push alerts. Lead generation and conversion can be challenging in a down economy, when consumers are cost-conscious and more risk-averse. To improve
conversion rates and shorten the sales cycle, lead generators should efficiently qualify their leads, prioritize customer needs, use social proof to their advantage, and streamline the sales process. By identifying their ideal customer profile, businesses can focus on high-intent leads, and by demonstrating the value of their product or service and using social proof such as customer reviews, they can build trust and foster brand loyalty. Streamlining the sales process through automation and
strategic lead nurturing practices can also help shorten the sales cycle and generate more high-intent leads. Magnum, the ice cream brand, has launched an anti-metaverse campaign via virtual influencers. The campaign, created by Lola MullenLowe Madrid, features a 100-second ad following an avatar who puts on virtual reality goggles to
escape the digital world, only to discover she cannot eat her Magnum ice cream. The campaign aims to celebrate the pleasure of real-world experiences, rather than virtual ones, and will be followed up by a longer film premiering at the Metaverse Fashion Week in Decentraland. Tinuiti, the US independent performance marketing firm, has appointed
Jeremy Cornfeldt as its first-ever President. Cornfeldt, who has more than 20 years of experience in brand, media, and performance marketing, will oversee Tinuiti’s operations and strategy, with a focus on creating total cohesion across the firm’s brand and performance offerings to enhance its go-to-market solution for clients. The appointment follows Tinuiti's acquisition of streaming TV agency Bliss Point Media and social and growth marketing agency Ampush. Cornfeldt will report to
CEO Zach Morrison and partner with other executives to elevate the company's go-to-market and uplevel solutions with clients. According to Parks Associates, 87% of US internet households have at least one OTT subscription service, indicating the rapidly evolving streaming market in the country. The increasing prevalence of ad-supported
lower-cost tiers and the growth of ad-supported standalone services such as FAST and AVOD have prompted Parks Associates to adapt its key OTT Video Market Tracker. Research from 2022 also showed that 40% of US internet households share or use shared credentials, up from 27% in 2019. The study also found that 63% of US internet households own a smart TV, while almost half of OTT subscribers hop between services multiple times over a 12-month period. |
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