Meta’s Horizon Worlds Tests New Creator Monetization Tools

This week in social media news, Meta’s Horizon Worlds is testing a feature allowing creators to sell virtual items and experiences, TikTok opens its Effect House beta to allow anyone to build Community Effects, Pinterest API (v5) brings open access to all developers and more.


Horizon Worlds Tests New Creator Monetization Tool, Bonus Program

Meta announced it’s testing new tools to help Horizon Worlds creators earn money by selling virtual items and experiences within their worlds in addition to a Horizon Worlds Creator Bonus program.

Why it matters: Meta is consistently trying to find new ways to support creators as part of its vision for the metaverse, which is a place where creators can earn a living and users can purchase digital goods, services and experiences. Meta’s testing of the new monetization tools is one more step in that direction and in expanding its $10 million Horizon Creators Fund

The details: Horizon Worlds’ creator tools will be made available only to a select handful of creators during the testing phase. They’ll allow the creators to sell virtual items and effects within their worlds—for example, access to a new part of a world or to attachable accessories for a fashion world. Users who wish to purchase these items must be 18 years old or older and in the US and Canada.

In addition to the monetization tools, Meta is also testing a Horizon Worlds Creator Bonus program in the US. The bonuses are goal-oriented, fee-free monthly programs paid to creators as rewards for their progress toward the goal. During the testing phase, creators will be rewarded for building worlds that attract the most time spent. Meta said that over time, it may evolve these goals.


TikTok Expands Effect House To All Creators

TikTok has opened its Effect House beta to all creators, providing them with the tools and learning resources necessary to build more immersive and dynamic effects in videos.

Why it matters: In Effect House’s early beta, more than 450 effect creators published effects that led to the creation of more than 1.5 billion videos on TikTok and over 600 billion views globally. Now that the platform is open to all, TikTok can likely expect its number of users and time spent on the platform to increase.


The details: Effect House, the platform that allows anyone to build Community Effects for TikTok, has been in closed beta since fall 2021. As of April 12, all TikTok creators, designers and developers can use the platform to create effects for all of the social app’s users to enjoy. Each effect will have to align with TikTok’s Community and Effect Guidelines, and will be reviewed by its Trust and Safety team before being released to the community.

Users who engage with one of the new effects will know that it was made in Effect House in two ways—when the user taps the effect on a video and views the results page and when recording video using the effect. All of the published effects in a creator’s portfolio can be viewed from a designated tab on their profile page.


Pinterest Introduces Pinterest API (v5) And Makes It Available To All Developers

Pinterest’s new API (v5) will allow developers to connect quickly, start building applications fo faster creation of content and data, and provide advertisers with more analytics on their Pinterest ads. 

Why it matters: This marks the first time in the platform’s history it’s offering a developer-centric, open API, which any developer can apply to access, Pinterest said.

The details: Pinterest will allow for any developer to apply for access and receive a response within a few days. The open program is a single API for all use cases and will enable advertisers to understand profile performance, including user and organic Pin analytics as well as the performance of their Pinterest ads.

From now on, Pinterest API (v5) will be the platform’s primary API for external developers with features such as content creation, analytics and Pinterest API for Shopping all available today. Beta features that will become available to all developers later in 2022 include a server-to-server solution that lets advertisers automatically send web, in-app or offline conversions directly to Pinterest in real-time or in batch.

Other features that will become available through the year include ads management tools for advertisers to create and edit ads, ad groups, campaigns and ad previews. Advertisers will also eventually be able to create and manage audiences and insights, create conversion tags, create and update advertiser targeting types and create Idea ads.


TikTok Shares Creative Marketing Best Practices

According to TikTok, 62 percent of users say they feel a deeper connection to the brands they interact with on TikTok compared to other sites and apps they use. So to help brands find their unique voice and direction, the platform shared a new set of best practices for how to get stronger engagement.

Why it matters: Many big brands have yet to join TikTok while others on the platform are looking for ways to hit the jackpot and go viral. Keeping up to date with the best practices can help a brand achieve its goals on the app. Though TikTok still has a reputation for being the wild west of social platforms, advertisers are clearly putting dollars behind it because the app is expected to generate $11 billion in advertising revenue in 2022.

The details: TikTok recommends keeping four things in mind before creating content: stick to a 9:16 aspect ratio, ensure your video resolution is 720P+, stick between 21 to 24 seconds and never go below 10 seconds, and include relevant audio of any kind.

For new brands, TikTok’s creative center is a useful hub. It has a trend discovery tool that shows you what’s popular in your vertical and region, which is important for tapping into real-time trends. It also includes a hub of top-performing ads from other brands and a commercial audio library that lists current trending songs.

In addition to its creator marketplace, which streamlines creator discovery for your next campaign, TikTok’s creative exchange program enables brands to partner with creatives who know the ins and outs of the app and can help strengthen your campaign.

When it comes time to make the video, TikTok has more than 100 customizable templates any brand can use to enhance their content. For brands that don’t have sufficient in-house resources to create videos from scratch, TikTok’s dynamic scene tool lets them turn pre-existing assets into hundreds of new variations.


Pinterest Launches WooCommerce Extension

Pinterest has just released a new WooCommerce extension, giving more than 3 million merchants a way to turn their product catalogs into shoppable product pins on Pinterest.

Why it matters: The debut is part of the platform’s wider commitment to helping brands reach customers who haven’t yet made up their minds. Ninety-seven percent of the top searches on Pinterest are unbranded, which means shoppers are more open to learning about a brand’s products. According to Pinterest’s data, when users do decide, they spent two times more than people on other platforms.

The details: If you don’t currently have the WooCommerce extension, Pinterest provides instructions on how to do so. Once installed, a brand’s entire product catalog uploads to Pinterest then shoppable pins will appear in people’s feeds as they search for things to buy. The extension also logs when customers interact with your products on Pinterest, so you can track your bestselling or most saved items.

If you’ve already manually uploaded your shop to Pinterest another way, Pinterest still recommends switching to the extension instead since it automatically updates details like pricing and product availability.


TikTok Tests New Tools To Prevent Harassment And Bullying 

TikTok is experimenting with new safety tools to encourage genuine engagement in comments and has added a safety reminder for creators. It also released its Q4 2021 community guidelines enforcement report, which includes information on content removals in markets and ongoing improvements to its systems that detect, flag and remove violative content.

Why it matters: From Q1 to Q4 2021, TikTok says removals of content at zero views improved by 14.7 percent for harassment and bullying content, 10.9 percent for hateful behavior, 16.2 percent for violent extremism, and 7.7 percent for suicide, self-harm, and dangerous acts.

The details: TikTok started testing a way to let users identify comments they think are irrelevant or inappropriate—information that it says will add to the factors it already uses to help keep the comment section relevant and safe. Only the person who registered a dislike on a comment can see the action to avoid any negative feelings between members.

It’s also testing reminders that’ll guide creators to TikTok’s comment filtering as well as its bulk block and delete options. TikTok will show these reminders to creators whose videos appear to be receiving a lot of negative comments.

Sirius XM Announces Three New Marketing Leadership Hires

This week in leadership updates, Sirius XM adds three new members to its brand and consumer marketing division, Geico names Damon Burrell chief marketing officer, Microsoft India hires Amrita Thapar as chief marketing officer and more.


Sirius XM Announces Three New Marketing Executives

Sirius XM has appointed three new executives to its brand and consumer marketing division.

First up, Rolanda Gaines has been named vice president of experiential and partnership marketing. Gaines joins Sirius XM from Fox Sports South and Southeast where she led marketing and communications.

Tatiana Holifield joins the company as vice president of digital content and audience engagement. Previously, Holifield was head of brand social for Hulu/Disney Streaming.

Sirius XM also named Joe Hanna senior director, brand and platform partnerships. Hanna previously spent 13 years at Disney Media and Entertainment Distribution, most recently as director, multiplatform.


Geico Names Damon Burrell Chief Marketing Officer

Geico has hired Damon Burrell as chief marketing officer.

Burrell recently served as chief marketing officer and senior vice president of marketing, North America, at Estée Lauder Companies.

Prior to Estée Lauder Companies, he held senior vice president of marketing positions at Viacom leading the Nickelodeon and MTV brands.


Microsoft India Names Amrita Thapar Chief Marketing Officer

Amrita Thapar has joined Microsoft India as its new chief marketing officer.

Thapar was previously Indian communications lead for Amazon Web Services and Genpact’s vice president of corporate communications and content marketing, respectively. 


Vindex Appoints Francis Thai Vice President Of Digital Marketing

Vindex has hired Francis Thai as vice president of digital marketing, according to Esports Insider.

Thai comes from NYXL, where he was head of marketing and audience and development.

Only 26 Percent Of Marketers Are Fully Confident In Their Audience Data

Marketers have spoken: Building brand awareness is their top priority for 2022. To help them meet their goals amid media fragmentation, Nielsen’s fifth global annual marketing report surveyed global marketers about new marketing channels and associated spend, martech effectiveness, the importance of brand promise and more.

The 1,942 marketers Nielsen surveyed between December 2, 2021 and January 12, 2022 were at or above manager level, working with annual marketing budgets of $1 million or more across automotive, financial services, fast-moving consumer goods, technology, health care and pharmaceutical categories.

First up, it’s important to note marketers’ most important objectives for the next year. From most to least important, Nielsen found that they’re prioritizing:

  1. Brand awareness
  2. Customer acquisition
  3. Customer retention
  4. Customer advocacy
  5. Competitor conquesting
  6. Churn reduction

Marketing accounts for 10 to 35 percent of a brand’s equity, according to Nielsen. As consumers shop in-store less, the online shelf expands and supply chain disruptions cause shoppers to try new brands, the growing reach and utility of digital channels can’t be undermined.

As many as 64 percent of global marketers say social media is their most effective paid channel and many plan to up their social media budgets more than any other channel over the next year. Twenty-two percent of North American marketers, 21 percent of Latin American marketers and 20 percent of Asia-Pacific marketers said they plan to increase their social media spending by 50 percent or more.

Despite the planned spend across social media, marketers told Nielsen they aren’t prioritizing engagement with Gen Z as a key business priority even though their primary increases focus on social media platforms like TikTok and Instagram.

Marketers also plan to increase their ad spending across linear TV and traditional radio significantly less than across social media, for which the aggregate increase is 53 percent among global marketers. 

Forty-seven percent of marketers said they’re either very or extremely confident in the effectiveness of linear TV and out-of-home (OOH), respectively. Meanwhile, 46 percent said they’re extremely or very confident in direct mail, 43 percent said the same about print and cinema, respectively, and 41 percent for radio.

While 61 percent of marketers said they’re confident in their ability to measure the impact of brand building, their planned limited increases in ad spending across traditional mass reach channels highlight a potential misalignment between top business goals and marketing tactics. It also highlights the lower level of confidence among marketers in the effectiveness of traditional channels when compared to digital ones.

After social media (64 percent), marketers said their most effective paid digital channels are: 

  • Online/mobile video (58 percent)
  • Search (58 percent)
  • Online/mobile (58 percent)
  • Email (51 percent)
  • Streaming audio (48 percent)
  • OTT TV/CTV (49 percent)
  • Native advertising (47 percent)
  • Podcasts (44 percent)

After brand awareness (66 percent), the most important marketing metrics for respondents are:

  • Engagement (63 percent)
  • Viewability (61 percent)
  • Marketing mix modeling (61 percent)
  • Full-funnel media ROI (61 percent)
  • Multi-touch sales/attribution (60 percent)
  • Unduplicated reach and frequency (57 percent)

In addition to leaning into the mass reach capabilities of digital channels, marketers must ensure their cross-platform measurement isn’t siloed. Across paid digital channels, global marketers surveyed are most confident in their ability to measure return on investment (ROI) across social media (64 percent are extremely or very confident, equal to their perceived effectiveness of the channel).

Marketers said they’re most confident in measuring ROI from social media yet global measurement confidence is only 64 percent. Confidence in measuring social media ROI is much higher in Latin America (86 percent) and notably lower in Asia-Pacific (55 percent), while North America comes in at 59 percent (behind paid search at 60 percent). Despite the planned increases across social media over the next year, global marketers’ confidence in measuring their ROI—outside of Latin America—is low.

The lack of ROI-proving confidence in these preferred channels gives martech providers a chance to help brands improve their execution and results. As Nielsen notes, perhaps more important is the lack of confidence that global marketers have in measuring ROI across other paid and traditional channels.

As marketers lean into newer channels, they’ve expressed low confidence in being able to prove ROI. Almost half (49 percent) of global marketers, for example, said they plan to increase their spending on podcasts over the next year, with 11 percent planning increases of more than 50 percent. Yet their confidence in measuring the ROI of that investment is fairly low—only 44 percent are either extremely or very confident.

Nevertheless, marketers shouldn’t overlook this growing media channel. Nielsen’s Podcast Ad Effectiveness (PAE) solutions show that host-read ads drive a brand recall rate of 71 percent, which creates high levels of consumer interest, purchase intent and recommendation intent. 

Globally, 65 percent of marketers believe new formats like podcasts, brand integrations and sponsorships are extremely important to marketing strategies. This sentiment is less in Asia-Pacific (59 percent) and EMEA (58 percent), but greater in North America (71 percent) and Latin America (73 percent), found Nielsen.

CTV has become a growing focus for global marketers, with 51 percent planning to increase their over-the-top/CTV spending in the coming year. In North America, the percentage is 61 percent which is in line with the more than 15 million years’ worth of video content Americans streamed last year. 

Only 26 percent of global marketers are fully confident in their audience data. This data insecurity aside, marketers agree data is essential. Sixty-nine percent believe first-party data is important for their strategies and campaigns, and 72 percent believe they have access to quality data to maximize the impact of their media budgets (61 percent in EMEA and 78 percent in North America).

Most marketers surveyed also struggle with elements of audience data. Globally, 36 percent claim that data access, identity resolution and deriving actionable insights from data is either extremely or very difficult. Marketers in North America and Asia-Pacific claim to have the lowest levels of difficulty. To deliver more personalized, relevant experiences, Nielsen suggests marketers combine contextual and behavioral data for targeting.

In addition to amplifying brand exposure and engagement with new audiences, influencer marketing ranks high among global consumers as a trustworthy marketing channel, as indicated by 71 percent. More than influencers, consumers trust recommendations from people they know (89 percent), branded websites (84 percent), ads on TV (78 percent) and TV program product placements (74 percent).

Trend Set: Tinder, WhatsApp & YouTube

Ayzenberg Junior Strategist Ashley Otah recounts this week’s trends.


Radisson Hotel Group

Booked and busy. Raddison Hotel Group unveils “Raddison Inn & Suites,” a brand of limited-service but midscale hotels. The hotel is not like others as it offers a unique lifestyle concept for influencers. Content creators cash out on large partnerships worldwide, which means they need space to create on the go. That is where Raddison’s addition of Creative Content Studio comes in. The Creative Studio allows influencers to stay connected and stay comfortable as they share work with the inherently social world. However, enticing the partnerships may be, brands must align and vet creators as they venture into the booming creator economy. Moreover, brands must ensure their offerings are evolving for the modern world.

Tinder

Swipe right. Tinder introduces “Festival Mode,” alongside Live Nation, Superstruct Entertainment, and AEG Presents. The partnerships with the app has resurged in relevancy as new lineups roll out globally. As the world “opens up,” and people aim to make up for a lost time, brands have the unique opportunity to bridge the gap and cultivate a community and a space to connect freely.

WhatsApp

What’s up. WhatsApp is dipping its toes into the Discord pool with its Communities tab. While still in the works, the feature aims to allow larger groups stay in touch. The addition speaks volumes about how people want to stay connected with loved ones and new people alike. For example, the two are not chained to one country but give access globally to those who wish to partake in something beyond themselves. Making a seamless way for users to connect solidifies, separates, and certifies the best brands versus others.

YouTube

Past life. Like Twitter, the changes allow people to let go of previous posts. The new feature would make it more challenging to sift through videos, especially from oldest to newest. Whether good or bad, only time will tell. However, the new app features and opportunities highlight the necessity of watching one’s digital footprint, which transcends people, partnerships, and brands.

Zara

IRL X URL. Zara releases a new collection where buyers can shop for in-person deals and metaverse steals. The metacolllection also features beauty products that span the two worlds that are quickly colliding. Currently, finding footing is very difficult as the space is rapidly changing. The future will involve virtual and physical elements, and brands should be future-focused, still positively positioning for success in the present.

Out-Of-Home Advertising Revenue Increases 16.7% In 2021

According to the latest figures from the Out of Home Advertising Association of America (OAAA), out-of-home (OOH) advertising revenue increased by 16.7 percent in 2021 compared to the year prior. And Magna found OOH was the second-fastest-growing ad channel in 2021, outperforming all media channels except digital.

OAAA’s 2021 OOH ad revenue report shows the surge translated into a total gain of $7.1 billion as digital OOH (DOOH) led overall growth with a 22.7 percent increase. Additionally, total OOH revenue in Q4 2021 experienced a 37.4 percent increase while DOOH grew 49.6 percent when compared to Q4 2020. These figures tell a story of overall growth and recovery the industry is expected to continue seeing into 2022 and beyond, found the report.

Last year, every top 10 industry product category surged as all but two experienced double-digit increases, including Local Services & Amusements, Retail and Media & Advertising, to name a few. Media & Advertising experienced the highest increase among the categories at 21.3 percent, while Local Services & Amusements—OOH’s largest category—represented more than 25 percent of total OOH spend with an increase of 20.9 percent.

The top ten OOH categories spent a total of $5.8 million in 2021—up from just over $5 million the year prior. Miscellaneous Services & Amusements spent 25.7 percent of total revenue in 2021 for a total of over $1.8 million. Retail spent 10.2 percent of total revenue for a total of over $722,000. And Media & Advertising spent 7.8 percent of total revenue for a total of over $552,000.

Ranked in order of OOH spend in 2021, the top three advertisers in 2021 were McDonald’s, Apple and Geico. Of the top 100 OOH advertisers, 79 percent increased their OOH spend from the year prior as 28 percent more than doubled their spend in 2021. Based on percentage increases, the top three companies were Credit Karma, Webull and Molson.

Additionally, of the top 100 OOH spenders in 2021 were technology or direct-to-consumer brands including Amazon, Apple and AT&T.

This progress and momentum in OOH is a welcome respite from reduced spend during and as a result of the pandemic. In 2019, OOH spend reached $8 billion before dropping to $6.7 billion in 2020 for a 16 percent decline, according to the OAAA.

Digital Video Continues To Be One Of The Fastest-Growing Channels

Over the past four years, the internet economy has grown seven times faster than the US economy and now accounts for 12 percent of the US GDP. In 2021 alone, US digital advertising experienced tremendous growth. Consumer time spent on digital media channels keeps growing and advertising spend on digital media is following—especially across digital video, digital audio, social media and search. Interactive Advertising Bureau’s (IAB) latest report breaks down the industry’s growth for the full year of 2021.

Key Findings:

  • Digital video continues to be one of the fastest-growing channels, up 50.8 percent compared to last year, with total revenues of $39.5 billion.
  • Digital audio captured the highest year-over-year growth, up 57.9 percent to $4.9 billion.
  • Social media advertising was up 39.3 percent to $57.7 billion, as consumers continue to engage with Meta platforms, Snapchat, TikTok and Twitter.
  • While search revenue grew substantially (32.8 percent) in 2021, it didn’t grow as strong as other areas, leading to a slight decrease in total revenue share (reduction of 0.8 percentage points).
  • Small business growth engine will be a key contributor to fueling ongoing digital media and marketing ecosystem acceleration.

Advertisers also looked to capitalize on opportunities to message consumers who, buoyed by government stimulus packages and a reopening economy, increased spending in 2021. The explosion of new businesses created in 2021 was undoubtedly an additional growth driver. According to the Census Bureau, 2021 saw the greatest business growth in history with 5.4 million new businesses created. Those businesses rely upon the ad-supported internet to attract new customers and provide ongoing products and services. We believe the small business growth engine will be a key contributor to fueling ongoing digital media and marketing ecosystem acceleration.

2021 Vs. 2020 Internet Advertising Revenue

Internet advertising revenue in 2021 grew by 35.4 percent YOY, surpassing expectations on Wall Street and showcasing the US internet advertising industry’s resilience post-pandemic. In 2020, internet advertising revenue increased by 12.2 percent YOY to reach $139.8 billion.

Streaming media, including digital video and digital audio, are growing faster than the overall industry. If the total internet ad revenue growth index baseline were 100, digital audio reached 164, digital video reached 144 and social reached 111, according to IAB. Search and display advertising formats experienced less than average growth rates.

Desktop Vs. Mobile Revenues

In 2021, mobile and desktop ad revenues experienced record levels, far outpacing prior years. While mobile revenue grew by 37.4 percent YOY, desktop grew by 30.7 percent YOY.

This rapid growth is the result of several factors, including:

  • The permanent shift to hybrid work environments post-pandemic along with reduced business travel and the simultaneous use of mobile and desktops.
  • Consumers spending more time with all mediums of digital media, especially mobile for online shopping.
  • The economy’s rapid recovery after COVID-19 lockdowns and restrictions.

Since 2011, overall internet advertising revenue experienced a compound annual growth rate (CAGR) of 19.6 percent, mobile saw a CAGR of 55.8 percent and desktop came in at 6.1 percent. In 2021, mobile internet ad revenue reached 135.1 billion while desktop earned $54.2 billion.

Revenue Concentration

Though the top 10 companies’ share of growth has relaxed, together they comprise 78.6 percent of digital ad revenue for a total of $148.7 billion in 2021. IAB believes that this phenomenon, coupled with the reversal of multi-year loss in share among mid-tier publishers, points to the possibility that advertising revenue among mid-tier and long-tail publishers is democratizing. In 2020, the top 10 companies comprised 78.1 percent of all internet advertising revenue and in 2019 that figure was 76.7 percent.

2021 Results By Format

Among the top formats in 2021, search (41.4 percent)—historically the most prominent format—held the highest share, followed by display (30 percent) and digital video (20.9 percent), found IAB.

In that same year, search earned $78.3 billion after a 33 percent increase from 2020, display earned $56.7 billion after a 29 percent increase and digital video earned $39.5 billion after a 51 percent increase. 

Between 2020 and 2021, digital video witnessed the greatest advertising growth with a 51 percent increase in revenue and a 2.2 percentage point gain in market size. All other formats held 7.8 percent of the market at $14.8 billion with a 40 percent increase over its 2020 figure.

Formats By Device

Among the top device formats, each grew on desktop and on mobile. In 2021, desktop revenue for search grew by 21.9 percent YOY to reach $23.5 billion, display grew by 25.4 percent YOY at $11.8 billion and digital video grew by 58.2 percent at $12.2 billion. 

In 2021, mobile revenue for search grew by 38 percent YOY to reach $54.7 billion, display grew by 29.8 percent YOY at $45 billion and digital video grew by 47.8 percent at $27.3 billion. Other revenues also experienced growth from 2020 to 2021.

Digital Video: Desktop Vs. Mobile

Overall digital video advertising revenues, including connected TV (CTV) and over-the-top (OTT), grew by 50.8 percent from $13.3 billion to $39.5 billion from 2020 to 2021. Mobile accounted for the majority of digital video revenues at $27.3 billion as desktop accounted for $12.2 billion—1 percent higher than its proportion in 2020. 

Digital Audio Desktop Vs. Mobile

Just as digital video experienced immense growth in 2021, so too did digital audio. Digital audio advertising revenues, including podcasting, increased by just under $1.8 billion between 2020 and 2021 for a YOY increase of 57.9 percent with mobile digital audio revenues driving most of the growth. Desktop digital audio revenues reached $739 million with a 23.8 percent YOY increase over 2020. 

Programmatic

Programmatic advertising revenues grew by 39 percent, or $27.8 billion, between 2020 and 2021, to reach $99 billion (excluding search). Digital video, in particular, experienced the greatest increase YOY versus other non-search advertising mediums, especially on mobile devices.

Social Media

In 2021, social media advertising revenues increased by $16.3 billion over 2020 to reach $57.7 billion. 

Advertising Revenues And Growth By Digital And Non-Digital Media

Besides magazines, all media types have seen positive advertising revenue growth since 2020—including internet advertising (35.4 percent), TV advertising (8.7 percent), terrestrial radio (12.8 percent), newspaper (3.6 percent) and B2B (46.3 percent). Of all the media types, cinema experienced the largest percentage increase between 2020 and 2021 at 61.8 percent.


2022 And Beyond

Some of the key trends IAB says industry leaders are focusing on in 2022 include:

More Dollars Flowing Into Digital

Ad monetization embedded in gaming and emerging devices and experiences like virtual reality (VR) and the metaverse are rapidly increasing and will likely provide publishers, tech companies and content creators continued opportunities to earn revenue. Another trend that may continue to drive ad investment into digital is the ongoing rise of ecommerce and smartphone shopping. In response, advertisers will seek to place their messaging where transactions are happening.

Privacy And Addressability’s Impact On Measurement And Monetization

Consumers are becoming more protective over and aware of the value of their data, and as they are, publishers and platforms are exchanging for it ad-free, ad-light or ad-heavy content experiences. As consumers migrate to these ad-free and subscription-based experiences, ad-supported streaming services’ revenues are being threatened. Advertisers are finding themselves in a predicament—either continue operating in the space where legacy models deliver expected ad content and ad loads or embark into new territory toward personalized content delivered on the consumer’s terms.

Diversity, Equity, Inclusion And Purpose

Consumers are now, more than ever, expecting brands to place diversity, equity and inclusion at the forefront of their business operations. And as advertisers respond and prioritize their needs to be purpose-driven, inclusive and authentic, their publishing partners will also have to engage in business practices and messaging that embody those values.

Prioritizing Ad Privacy With Google’s David Temkin

David Temkin is the director of product management for ads privacy and user trust at Google. He leads the product management team responsible for ads privacy. His team focuses on delivering privacy-first monetization product changes driven by the changing regulatory environment. They are also responsible for transparency control for ads across Google’s ad business.

On the show today, David and I talk about his role and what privacy and the combination of privacy and trust mean. Later, David shares his thoughts on how marketers should think about advertising privacy and what we need to do to get consumers on board to understand its importance. We also discuss the removal of third-party cookies and what it means for effectively deploying ad campaigns.

Listen in to learn more.

In this episode, you’ll learn:

  • What businesses should prioritize when it comes to privacy
  • Why marketers can convince their organization to prioritize privacy
  • Getting consumers to take privacy seriously

Key Highlights

  • [01:33] David’s journalism career
  • [02:54] Understanding David’s role
  • [04:34] What to prioritize with privacy
  • [06:37] Consumer trust with social media
  • [08:52] Convincing your business to prioritize user privacy
  • [10:19] Getting consumers to take privacy seriously
  • [12:45] How Google builds transparency and choice into its ad products
  • [14:56] The removal of third-party cookies
  • [18:20] Advice for marketers in a cookie-less world
  • [20:54] An experience that defines David
  • [23:42] David’s advice for his younger self
  • [24:15] What marketers should be learning more about
  • [25:29] The biggest threat and opportunity for marketers

Resources Mentioned:

Follow the podcast:

Connect with the Guest:

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Alan B. Hart is the creator and host of “Marketing Today with Alan Hart,” a weekly podcast where he interviews leading global marketing professionals and business leaders. Alan advises leading executives and marketing teams on brand, customer experience, innovation, and growth opportunities. He has consulted with Fortune 100 companies, but he is an entrepreneur at his core, having founded or served as an executive for nine companies.

State Of Media And Entertainment On Mobile In 2022

Last year, entertainment and book apps comprised 18 percent of downloads and 49 percent of consumer spend on apps worldwide, according to data.ai’s latest report, State of Media and Entertainment: Mobile 2022

Before delving into the findings on consumer spend and behavior across video streaming, music streaming and audio and comic book apps, here’s how data.ai defines the app subgenres: 

Video streaming is divided into the genres of books and reference and entertainment. Books and reference apps are those that offer content through book readers, reference books, textbooks and dictionaries. This genre is further divided into the subgenres of audiobooks, comics, eBooks and other books and reference. 

Entertainment apps are divided into the subgenres of game service, karaoke, live streaming, media player, music and audio, musical instruments, other entertainment, over-the-top (OTT apps are where users can stream TV shows, movies, comedy specials, and live television online or offline), radio, short videos, ticket service and video sharing. 


Consumer Spend And Downloads

Despite the fact that time spent on OTT apps declined by 20 percent year-over-year (YOY), these app downloads exceeded 2.2 billion as consumer spend broke records and surpassed $6.3 billion worldwide in 2021. 

Short video apps experienced a 38 percent increase in time spent YOY, primarily due to Chinese-based apps. TikTok and Kwai experienced a 490 percent and 1,115 percent increase, respectively, in their total time spent in-app worldwide since 2019, according to data.ai.

Based on consumer spend in 2021, OTT apps secured first place, followed by live streaming, short videos, music and audio and comics. But short video apps may soon knock OTT from the top spot as these apps continue offering innovative features. The topmost downloaded apps with video-playing capabilities by subgenre were short videos, OTT, video sharing and music and audio. Ticket service apps came in last.


Demographics

Gen Z app users prefer OTT apps that feature anime content while Gen X and baby boomers prefer mobile-forced apps. Crunchyroll, for example, was one of the most likely OTT apps to be used by Gen Z throughout every region that data.ai analyzed with the exception of South Korea and Japan given that homegrown players are more popular there. 

On the other hand, Gen X and baby boomers were most likely to use mobile-forced OTT services, including NBC and Tele 7 programme TV. Among millennials, Plex was popular in Australia, Canada, the UK and the US.

The top OTT apps in the US by monthly active users (MAU) according to likelihood of use were Crunchyroll and FunimationNow for Gen Z; Redbox and Plex for millennials; and TV Guide Mobile and DIRECTV for Gen X and baby boomers. In these lists, Netflix appeared in fifth place for Gen Z users and interestingly, wasn’t in the top 10 for millennials, Gen X or baby boomers.


Video Streaming

As exclusive content, strategically timed releases and overseas expansion fuel growth and competition in the video streaming sector, Netflix is set to exceed 1 million downloads in over 60 countries this year. Additionally, despite the fact that Disney+ launched on mobile seven years after Amazon Prime Video, the two apps are close rivals. To attract more viewers, Disney+ just announced a less expensive, ad-supported subscription tier in the US that is slated to launch later in 2022 and in other countries in 2023.

In the US, the top 10 OTT apps by average MAU in Q4 2021 were Netflix, Amazon Prime Video, Hulu, Disney+, HBO Max, Peacock TV, Tubi TV, Google Play Movies and TV, Paramount+ and Pluto.tv. Globally during the same period, Netflix remained in first place, followed by MX Player, Amazon Prime Video, Hotstar, Google Play Movies and TV, Disney+, JioTV, HBO Max, Hulu and Zee5.

In the US, the top five live streaming entertainment apps by average MAU in Q4 2021 were Twitch, Bigo Live, V-Live Broadcasting, Tango Live and Reality by Wright Flyer. Worldwide, the top three positions remained the same as Booyah Live took fourth place and Omlet Arcade landed in fifth place.


Music Streaming

In Q4 2021, the US downloaded between 35 and 40 million music and audio entertainment apps. Globally, that figure almost reached 500 million in the same period. 

Radio entertainment app downloads in the US during Q4 2021 were just shy of 8 million as the world downloaded more than 80 million—a 33 percent YOY increase. India was the largest market for radio apps with a 200 percent YOY increase in Q4 2021. Pocket FM and JioSaavn accounted for 97 percent of all radio app downloads in India and 44 percent worldwide in that period.

Hinting at possible market saturation, music and audio app downloads remained relatively flat around the world. Most markets outside of APAC actually witnessed declines in 2021, the report found. China experienced a 43 percent increase in downloads YOY, mostly due to the increasing popularity of apps like NetEase Cloud Music and QQ Music.

As the music and audio subgenre of apps approach market saturation, data.ai suggests publishers consider other rapidly-growing subgenres to increase reach.

The top 10 radio entertainment apps by downloads in the US in Q4 2021 were iHeartRadio, TuneIn Radio, Simple Radio by Streema, Google Podcasts, Anchor FM, Radio FM, myTuner Radio, Podbean, Radio FM AM and Stitcher, in that order. Globally, the numbers tell a different story—TuneIn Radio comes in first place, followed by Simple Radio by Streema, Anchor FM and iHeartRadio, to name a few.

The top 10 music and audio apps by downloads in the US in Q4 2021 were Spotify, Pandora Music, SoundCloud, YouTube Music, Shazam, Amazon Music, Musi, SiriusXM, Audiomack and Current Rewards. Globally, Spotify remained in the lead, followed by Resso, Shazam, YouTube Music and JioSaavn.


User Acquisition: Paid Search Ads

Spotify prioritized paid search ads on branded keywords (including misspellings) versus generic terms, as did other apps across other genres. For example, Amazon and TikTok bid heavily on the “Spotify” keyword in the US and the UK. And in Mexico, Amazon’s keyword share of voice (SOV) exceeded Spotify’s by eight times and surpassed 58 percent in December 2021.

Despite its aim to maintain global dominance, Spotify may see pressure in Japan where Amazon Music, Amazon Prime Video, TikTok and Line Music bid on its branded term. As the report notes, defending your own keywords and offensively targeting competitive branded terms is vital for success.


Audiobooks And Comic Books Apps

Global consumer spend on comic book apps grew by 120 percent since 2019, reaching $1.8 billion—2.5 times faster than audiobooks. Additionally, the global comic book app industry grew by 26 percent as the US, Brazil and China experienced a 32 percent, 38 percent and 14 percent increase in 2021. Last year also witnessed Americans spending roughly $200 million on audiobook apps.

Ebooks experienced the largest YOY increase in user engagement when compared to other book subgenres. Webnovel apps such as MoboReader saw an increase in average sessions per user across several APAC markets in Q4 2021, as religious texts such as Bible Home grew in engagement.

Within the subgenre of comic apps, user engagement in Australia and the US surpassed Japan’s in Q4 2021—which highlighted a niche but highly engaged growth opportunity in western markets, notes data.ai.

Highlighting the importance of mobile, Piccoma chief executive officer Jay Kim told data.ai that the app outgrew the manga market growth in 2021 by more than double, at a growth rate of 97 percent YOY. He said, “We understand that it was a result based on our strategy to reach not only existing manga fans but to the overall content users on smartphones.”

In the US and Canada, Audible experienced an increase in usage with other entertainment apps during mid-2021. One explanation for this may be consumers’ gradually increasing comfort with car and RV travel for extended road trips after years of lockdowns. 

The top 10 audiobook apps by consumer spend in the US in Q4 2021 were Audible, Wehear Audiobooks and Fiction, Pocket FM and Hay House Unlimited Audio. Globally in second place was Zimalaya FM and in third place was Spiritual Wealth Club.

The top 10 comic apps by consumer spend in the US in Q4 2021 were Line Webtoon, Tapas, TappyToon and Pocket Comics. Around the world, Piccoma led the way as Line Manga and Line Webtoon trailed it.

Social Roundup: Twitter Tests An Edit Button

This week in social media news, Twitter is testing an edit button, TikTok launches a virtual course to help creative agencies become platform experts, Instagram Reels creators say the app changed its payout system without notice and more.


Twitter Works On An Edit Feature For Tweets

Twitter announced it’s working on an edit feature, a decision that’s sparked fierce debate on the internet. The platform says it’s been working on the button since last year.

Why it matters: As Fast Company notes, some have argued that an edit button on Twitter will disrupt democracy, giving malicious users like former President Donald Trump the ability to rewrite history. On the other hand, many are in support of the decision, as evidenced by 75 percent of the 4 million people who voted yes when Elon Musk ran a poll on his Twitter profile—before Twitter ever announced its plans to test the function—asking his followers, “Do you want an edit button?” 

The button is a double-edged sword for brands. As Paul Stamatiou, who previously spent nearly a decade designing at Twitter, told Fast Company:

“One thing that gets lost in the discussion of edit is the purpose. There are distinct customer needs and use cases (fixing minor typos and grammatical errors is one, but there are others such as a news organization clarifying a previous statement but wishing to preserve the context of the original to prevent continuous spread of potential misinfo). And depending on which need you prioritize, you’ll have a different set of solutions and constraints.”

The details: Twitter said it “didn’t get the idea” for an edit button from Musk’s popular poll and that it’s kicking off testing with Twitter Blue Labs, a perk of its premium subscription service that gives subscribers early access to new features it’s testing.


TikTok Launches Educational Program For Creative Agencies

TikTok’s Creative Agency Partnerships (CAP) team has debuted CAP University, a program designed to offer agencies who want to become TikTok experts a custom learning program.

Why it matters: The program is an incentive to attract traditional marketers to the platform, whose ad revenue is expected to triple this year to $11.64 billion—more than Twitter’s and Snapchat’s sales combined. TikTok says after completing the five-week program, hosted as live webinar sessions, agencies will be able to lead conversations with their clients, concept and create for the platform and continue driving clients’ business forward.

The details: Here’s an overview of the five courses CAP University’s first semester will offer:

TikTok 101: A lesson fueled by foundational statistics and data that all creative agencies should know as well as examples of best-in-class creative work.

TikTok: From Briefing to Pitching: Given TikTok requires a strategy different from other markets channels, this lesson will explain how to think about and communicate ideas made just for the platform.

Concepting and Creating for TikTok: The app says this course distills all the trends, patterns and learnings from the past year down to best practices to inform concepting and creating.

Trends and Music Listening: This class will explain how to lean into trends and answer the most frequently asked questions about music licensing.

Collaborating with Creators: This course will teach the basics of working with creators and highlight TikTok’s creator marketplace.


Instagram Reels Creators Say Payouts Have Been Slashed

Payments to creators monetizing Instagram Reels content are down as much as 70 percent per view and videos need millions more views for creators to earn money, according to the Financial Times and as reported by The Verge.

Why it matters: Instagram launched its Reels Play Bonus program in July last year as a way to lure creators away from TikTok and onto its TikTok-like clone Reels. But if Instagram can’t meet creators’ demands financially, there’s good reason to believe Reels’ usage will plummet and creators will continue investing more time in TikTok.

The details: Creators say Instagram didn’t explain the changes in the payout system. One creator told the Financial Times that their personalized threshold for receiving payment up to $35,000 had jumped from 58 million views to 359 million views. Meta told the Financial Times that the company was testing Reels bonuses on Instagram and Facebook, which may cause payouts to “fluctuate” as pricing models are refined.


ByteDance Allegedly Scraped Public Accounts From Other Platforms To Duplicate Them On Flipagram

Four former employees of Flipagram, a predecessor of TikTok, told BuzzFeed News that in 2017, TikTok’s parent company ByteDance scraped short-form videos, usernames, profile images and descriptions from Instagram, Snapchat and other sources then uploaded them to Flipagram without users’ knowledge or consent.

Why it matters: BuzzFeed sent ByteDance a comprehensive list of the allegations it planned to print in the article detailing the allegation, in response to which a spokesperson glossed over the situation, saying:

“ByteDance acquired Flipagram in 2017 and operated it, and subsequently Vigo, for a short time. Flipagram and Vigo ceased operations years ago and aren’t connected to any current ByteDance products.”

ByteDance also didn’t answer BuzzFeed’s questions about where and how it stored any data it allegedly scraped from Instagram and other platforms. This isn’t the first time ByteDance has been in hot water about its handling of user privacy. Over the past year, TikTok has gone to great lengths to isolate its US users’ data after its data practices came under fire.

The details: BuzzFeed said it viewed internal documents that indicate the scraping was run by an engineering team in China and started soon after ByteDance acquired Flipagram in January 2017. The former employees described the project as one of several “growth hacks” used by the company.

In one document, an employee details the reasons the company used “fake accounts” and scraped content. Among them were that the accounts could be used to test which content performed best and that current users could mimic the scraped content to improve their own popularity.

Another document shows how the company tried to curate content that was “not too Chinese” and would resonate with US users. Three of the former employees say this content still didn’t perform well with Flipagram’s user base.

One of the former employees also said the scraping affected hundreds of thousands of accounts and that the team’s goal was to scrape more than 10,000 videos a day in the highest priority countries.

Peacock Taps Former Netflix Head Marketer As CMO

This week in leadership updates, Peacock hires Shannon Willett as chief marketing officer, Unilever’s most senior marketer Connie Braams starts a new position that reflects the blurred lines between digital and sales, Mastercard brings on Julie Nestor as senior vice president for marketing and communications in Asia-Pacific and more.


Peacock Names Shannon Willett Chief Marketing Officer

NBCUniversal has announced the appointment of Shannon Willett—former Netflix vice president of global marketing strategy and operations—to CMO, reports Variety.

In the newly established role, Willett will lead global marketing for Peacock including brand management, creative, media planning, marketing operations, social, content marketing, subscriber growth and customer care.

Previously, Willett spent about seven years at Netflix, leading a team of 250 employees globally.


Unilever Scraps Dedicated Chief Marketing Officer Role

In response to the convergence happening in media, entertainment and shopping channels, Unilever has nixed the dedicated CMO role and appointed Conny Braams—its most senior marketer—to chief digital and commercial officer.

On the newly established role, Braams told Adweek, “It doesn’t mean we’re dropping marketing. It means we’re adding sales. . . We can now build brands and convert sales at the same time, so why would [we] artificially split that?”


Mastercard Taps Julie Nestor As Chief Marketer For Asia-Pacific

Julie Nestor has joined Mastercard as senior vice president, head of marketing and communications in Asia-Pacific. In addition to overseeing corporate reputation, brand messaging and stakeholder relations, Nestor will drive consumer engagement through Priceless, Mastercard’s marketing platform.

Nestor brings to Mastercard 25 years of marketing experience across the financial services, technology and hospitality industries. Most recently, she was Manulife’s Asia-Pacific CMO.


Dr. Seuss Elevates Shannon Spisak To Vice President, Marketing And Communications

Shannon Spisak has accepted a promotion as Dr. Seuss Enterprises’ vice president, marketing and communications.

Spisak has spent the past six years at the company, most recently as senior director of global marketing and communications.


Jill Cress Joins H&R Block As Chief Marketing Officer

H&R Block has announced the hire of veteran marketer Jill Cress as chief marketing and experience officer, according to AdAge.

Cress spent 23 years at Mastercard before becoming CMO at National Geographic and vice president of global brand at PayPal, respectively.


PlayStar Casino Names Jon Bowden Chief Marketing Officer

PlayStar Casino has appointed Jon Bowden to lead its marketing efforts.

Bowden has more than a decade of gambling market experience, having served in various senior marketing positions at companies including The Rank Group, Ladbrokes Coral and Gala Coral Group.