EMarketer’s Retail Media Advertising Report Addresses Key Retailers Driving The Market

According to eMarketer’s latest ecommerce forecast, ecommerce ad spend will increase by 27.8 percent year-over-year (YoY), reaching $23.92 billion this year, or 12.5 percent of all digital ad dollars. That increase comes after 2020 experienced a 50 percent increase YoY in ecommerce channel advertising. The firm’s forecast will be reexamined and likely increased as Amazon (up 87 percent YoY) and Walmart (up 95 percent YoY) post higher growth for their respective ad businesses in earnings reports. 

The pandemic caused a boom in ecommerce, increasing the influence of digital retail media by expanding the number of retail sales transacted online. Emarketer estimates that the share of online US retail sales increased by an exceptional 11 percent in 2019 to 14 percent in 2020, and will continue growing through the end of 2025 by over one percentage point annually.

Digital retail media’s influence isn’t confined solely to ecommerce. Offline purchases are also affected– especially given the increase in digitally transacted ads that have a physical presence outside of the home and apart from personal electronics. Emarketer predicts that total retail sales in the US will increase by 7.9 percent in 2021 to upwards of $6 trillion.

Given that digital retailers have significant audiences, they also have significant amounts of audience data. Roughly 90 percent of digital shoppers, for example, will make at least one purchase via a digital channel in 2021. That equates to 209.6 million digital buyers in the US—higher than the number of people who will use social media at least once per month.

As for online grocery sales, this year marks the first in which a majority of US consumers will buy groceries online. Emarketer estimates that 142.9 million individuals ages 14 and up will shop for groceries digitally in 2021, or 50.5 percent of the population in that age range. 

According to ChannelAdvisor and Dynata, US shoppers began their product search on a retailer site or marketplace like Amazon before making a digital purchase in August 2020. 

Overall, the structure of the retail media market is comparable to other performance channels such as social media and traditional search. Sometimes, companies that began in these other sectors have expanded to serve clients interested in retail media. Platforms or publishers in this instance are usually retail marketplaces or retailers, as opposed to media companies like Facebook and Google.

In the US, retail marketers offer an array of solutions in their retail media networks. In August 2020, 60 percent of respondents offered social media, 57 percent offered data and first-party audience insights without media and 55 percent offered on-site (.com) banner ads and display advertising. Only 33 percent and 21 percent offered on-site (.com) brand pages and closed-loop reporting, respectively.

The most important retailers selling retail media include Amazon, Walmart, eBay, Kroger Co. and Instacart which recently onboarded chief executive Fidji Simo—who previously oversaw Facebook’s main “clue” app—and president Carolyn Everson (also of Facebook). Emarketer expects more brands of all types to focus more heavily on retail media as other sources of customer data become less obtainable. 

Retail media is changing as it changes advertising more broadly, according to eMarketer’s research. As more brands and retailers inject themselves into this space, eMarketer predicts that retail media will continue disrupting traditional advertising due to third-party data deprecation, the rise of connected television (CTV) and subsequent decline of linear television, retail media’s move up the funnel and consumers’ impatience with retail media ads. 

Many retailers have built out their ad business offerings in the last couple of years, including Walmart, Best Buy, CVS and Target, to name a few. As a result, advertisers must make more decisions about which and how many platforms to advertise on. Additionally, due to the increased spending and increased complexity in the market, advertisers are under more pressure now than ever before to utilize technology and even experts to ensure funds are spent as efficiently as possible.

One approach to make this process easier, according to experts eMarketer tapped for its report, is for brands to, at a minimum, test ads on the retail platforms where they sell products and then focus only on those that provide the most value. One issue that may arise here is that platforms may share results that differ from each other, for example with different attribution windows. Advertisers may need to engage tech solutions to make sense of the data across platforms.

Nevertheless, the retail media expansion and the array of retailers venturing into the space doesn’t necessarily mean that current market leaders should be worried. Emarketer actually expects Amazon to carry on with its growth of ecommerce channel ad spending through the end of 2023.

As Emarketer notes, despite the fact that most of the focus remains in the search ad market, retail media has transformed it into a different beast entirely. Still, video and display ads targeting consumers with the purpose of making them aware of the brand are becoming a more valuable element as time progresses. Innovation in technology is producing new products that fuse the best of performance marketing and branding.

Internet users are mostly indifferent to digital ads, but not all are treated equally, as eMarketer found. Consumer surveys have reported that interruptive ads are the most frustrating, especially when they overtake the entire screen and prevent individuals from reading text or force them to wait for a video to play. On the other hand, less-invasive ad formats where the ad fits in with the content of the page are less bothersome especially when the message is useful or relevant.

EMarketer also found in prior years that Amazon buyers in the US relatively rarely reported noticing ads on the site. When they did notice the ads, they were more likely to describe them as useful or helpful rather than distracting or untrustworthy.

To tap into the growing opportunity in retail media advertising, eMarketer suggests endemic brands prepare to use more data clean rooms and run tests as retailers launch new ad platforms, formats and targeting options. 

For non-endemic brands, the firm notes that although they may not see the obvious benefits of advertising directly in a retail environment, there’s a place for them as well—such as financial service firms, automakers and more. As tracking users becomes more difficult, retail media will look like an increasingly attractive option for brands that don’t sell through retailers.

Setting Up Your Out-Of-Home Advertising For Success

Out-of-home (OOH) advertising was hit hard by the pandemic; the channel fell by $1.3 billion in total ad revenues in 2020. Reduced travel and traffic caused significantly discounted OOH ad rates, though not for long. Today, OOH costs are back to pre-pandemic levels as it’s proven too important a marketing channel to neglect.

According to the Out of Home Advertising Association of America (OAAA), OOH may experience revenue growth of 10 to 12 percent by the end of 2021 and OOH now comprises roughly 20 to 30 percent of client media planning. 

As consumers seek a return to normal, several key OOH trends will fuel its growth in 2021. A survey by OAAA and The Harris Poll found that 68 percent of consumers suffer from digital device burnout, 65 percent of consumers want to leave home as often as possible and 45 percent of consumers notice OOH ads more than before the pandemic.

To maximize your OOH investment, OAAA has compiled a creative best practices guide covering campaign shaping, which formats to use, OOH design basics and other helpful strategies for creating head-turning ads.


Shaping The Campaign

Creative determines 75 percent of an ad’s effectiveness. When producing your campaign, remember that OOH is a medium that offers enormous flexibility and has a long history from which you can extract learnings. The OAAA suggests allowing your idea to guide the placement of media and adapt the scale of OOH applications—instead of first considering the shape and size of specific formats.

Sourcing ideas for creative can come from myriad places, one of which is conversation. Sharing a creative concept or brief with others might improve it. Media partners, in particular, take into consideration campaign objectives before recommending contextual applications in specific markets or regions or special opportunities with communities.

The OAAA cautions against focusing solely on OOH. Rather, execute a single campaign across a range of media. OOH, broadcast, digital and print campaign elements should share a single focus and, if designed correctly, can help you maximize your overall campaign cost per thousand (CPM). 

That said, OOH should be the core of the ad campaign. Amplify the momentum of the OOH campaign through such ideas as augmented reality (AR) experiences that tie into traditional parts of an OOH campaign through scalable and layered codes or social media activations linked to the messaging.

Last, explore the feasibility of real-world applications of big ideas before letting them die, and rely on media partners to find you solutions to achieve favorable results.


Using Different Canvases

Certain formats suit certain messages better than others. For example, large print formats like standardized roadside displays are intended for viewing from a far distance and therefore ideal for bold branding. They can be enhanced with elements like 2D extensions, 3D props, lighting effects and successive messaging along roadways.

Given street furniture and transit formats are positioned close to pedestrians and are viewed at eye level, typical enhancements include custom props and wrapped buses.

Place-based formats include a wide array of innovative display formats positioned in retail locations and commercial venues. Common enhancements include custom installations in malls, street teams and sponsored events.

The benefits of digital applications for OOH can’t be overlooked, notes the OAAA. All OOH segments include digital applications and formats with benefits such as nimble and flexible messaging; video content; no print production costs and customizable applications like location-specific messages, touchscreen and situational triggers (e.g., weather conditions, traffic flow).


OOH Designing Basics

People want to be entertained. According to research conducted by the Journal of Advertising Research, ads with two messages as opposed to five, are 21 percent more likely to be noticed. To get your OOH noticed, the OAAA recommends utilizing contrasting colors, typeface legible from a distance, figuratively bold imagery and copy lines, and photos with a strong focal point. 

For most OOH applications, it’s best to keep copy short and sweet. Seven words or less is a proven benchmark and messages that relate to physical surroundings are often more memorable. It would also benefit your OOH campaign to incorporate the appropriate tone necessary to elicit a specific response or trigger a reaction. 

As mentioned prior, you may want to develop a series of different OOH messages as part of an overall campaign. This would enable you to incorporate more elements without encumbering the clarity of individual messages. 

It’s also important to design for an array of canvas sizes and locations. Geofencing key zip codes or trading areas against core audience demographics can help messages target desired consumers.

Research shows that people react to OOH messages and will immediately start an online search when triggered by an OOH ad. Forty-six percent of people search for information after viewing an interesting billboard. 

With the understanding that 70 percent of decision-making is emotional, every OOH is now a call to action. Triggers and codes like memorable URLs, hashtags and phone numbers help get the consumer from witnessing to purchasing more efficiently.

OOH often campaigns spark social conversations, especially online. In fact, 48 percent of people are more likely to click a banner ad after viewing an OOH ad first while 25 percent of Americans have posted a photo of themselves with an OOH ad on their social media.

Context is a vital element of OOH’s success. To ensure your message lands with your audience, understand unique characteristics of locals and don’t deploy an OOH campaign for both coasts. Ensure your campaign mirrors the community in which it’s distributed so viewers resonate with it more.

OOH messaging builds substantial brand awareness over time as refreshing ad creative improves overall ad retention. To this aim, creative elements should be updated every two months, according to OAAA.


Final Thoughts

Be realistic about your timeline when creating OOH. The OAAA advises allowing at least seven working days for basic print production, six weeks of lead time for fabrication of props and several weeks for custom installations.

Lastly, be as flexible as OOH is. Maintain freshness and relevance in campaign messaging and don’t shy away from altering the direction of a campaign if necessary or recommended by experts.

How Leading Buy Now, Pay Later Solutions Advertise On Social Media

Once a niche payment concept, buy now, pay later (BNPL) deals have surged during the pandemic. According to an Ascent study, 56 percent of consumers have now used a BNPL service, up from 38 percent in July 2020. To understand how leading BNPL solutions including Klarna, Affirm and Afterpay are advertising on major social media platforms, BrandTotal analyzed thousands of their paid social media ad campaigns over a 90-day period, from July 13 to September 10.

These leading BNPL solutions rely heavily on social media to educate shoppers and it’s here where Klarna is leading the way when it comes to advertising. In BrandTotal’s analysis of paid share of voice (SOV), Klarna dominated with 51 percent of SOV, compared to 35 percent for Affirm and 14 percent for Afterpay. This ranking shifted, however, when between August and September Afterpay’s SOV reached 32 percent and Affirm’s 27 percent.

Given younger demographics grew up in a digital-first era in which discovering a brand and checking out are just a few Instagram clicks away, BNPL platforms know to strategically target younger audiences who are more open to this new form of tech-enabled payment model.

Among the three BNPL solutions BrandTotal analyzed, Klarna was the most likely to advertise to Gen Z on social media, with half of its ad impressions targeted to the demographic. By comparisons, 41 percent of Affirm’s impressions and only 8 percent of Afterpay’s targeted Gen Z. In addition, BrandTotal found that 83 percent of all BNPL social media ads targeted women, with just 17 percent targeting men.

Klarna also outpaces the other two on video views. According to BrandTotal’s data, Klarna saw 46.2 million video views across all of its paid social ads while Afterpay came in second with 1.7 million views, followed by Affirm with 1.5 million. Klarna’s dominance here could indicate its reliance on video across campaigns, which Gen Z is known to prefer over static images or text.

Lastly, BrandTotal found that Klarna and Affirm share very similar social media ad strategies; both allocate most of their social mix to Twitter, LinkedIn and YouTube. Afterpay, on the other hand, focuses primarily on Facebook and Instagram, with no investment in YouTube.

Echoing BrandTotal’s findings is recent data from Auriemma Group, which shows that while merchants have historically been the most common provider of installment plans at the point-of-sale, these BNPL providers offering short-term solutions are closing the gap.

Auriemma research found between Q1 2019 and Q1 2021, there was a 10+ percentage point increase in debit cardholders offered a BNPL plan in-store or online. In addition, more than half of those offered BNPL in a physical store (56 percent) or online (51 percent) say they enrolled in the option, again representing 10+ percentage point increases since Q1 2019.

Online TV Officially Reigns Over Traditional TV

It’s no longer just cord-cutting. Now, with the plethora of steaming options available—Amazon Prime, YouTube TV, Netflix, Pluto TV and more—viewers are tuning into online TV more than they are traditional cable.

Overall, watching TV and movies is still the top entertainment option for 35-74 year-olds, but according to the study, that drops dramatically with the 18-34 set, for whom gaming/social media/online videos are their top forms of entertainment. 


Online Streaming Supersedes Cable

According to Hub’s annual “Decoding the Default” study, viewers are going to online TV options first and those viewing behaviors are shifting rapidly year-over-year. The study shows that 55 percent of viewers are tuning into online TV, up 5 percent from 2020. Traditional set-top cable services saw a decline of 3 percent from last year.


Netflix Is No Longer The Top Streaming Option

Despite online TV streaming being more popular than ever, Netflix appears to have lost ground to other options. Viewers that cited Netflix as their default source for entertainment has slid by 3 points since 2020. And it’s easy to see where those viewers are going—Hulu, Amazon Prime Video, Disney+ and HBO Max have all risen by 4 percent in viewership in the past year alone.

 

How Measurement Silos Distort Brand And Behavioral Lift

In a given week, 44 percent of people use multiple social media platforms. However, just 39 percent of marketers require all platform providers to use consistent measurement approaches, with major social platforms most often being allowed to use their own measurement as currency.

To understand the risks for marketers utilizing siloed exposure in their cross-platform measurement, DISQO conducted a study among 166,356 US consumers between February to March, 2021, each of which voluntarily allowed the company to observe their digital behaviors on mobile and desktop devices. DISQO also studied about 8,500 US adults in January 2021 who opted in to share their social media usage across multiple platforms.

The findings explore how a single source of truth can prevent marketers from yielding inaccurate insights, lower return on ad spend, lack of confidence and excess administrative costs.

Measuring the effectiveness of campaigns requires the ability to see how placements on two different platforms, say, TikTok and Facebook, interact with each other against the same audience target. To determine how much overlap happens between different social media platforms, DISQO shares a fictitious scenario involving a campaign that runs on three different platforms—A, B, and C. The campaign on platform A received 500,000 views, on platform B 400,000 views and 200,000 views on platform C.

DISQO’s data found that platform B saw a lift of 3 percentage points in positive campaign response with siloed platform measurement compared with a lift of 2 percentage points for platform A and a lift of 1 percentage point for platform C. Based on these numbers, one would assume platform B deserves greater investment while media should be optimized off of platform C.

However, as DISQO points out, it’s likely that the unexposed audience has seen the brand messages on a different platform and mischaracterizing these exposed users creates a mutant control group with exposure from another platform. As a result, this group produces an artificially high baseline off which to calculate lift.

According to DISQO, when you take the mutant control group out of the equation and get an accurate view of exposure, it’s actually platform C that’s the most successful because it saw a lift of 7 percentage points in positive campaign response. But because this platform was getting the lowest investment, huge upside revenue potential was being lost and higher costs resulted from siloed measurement. 

Additionally, with siloed measurement, the overall campaign lift is understated at 2 percentage points. When mutant control is eliminated, however, the lift is shown to be 5.3 percentage points, reports DISQO.

Generalized models based on overall platform overlap or common demographic overlaps won’t deliver accurate campaign results. In order to get accurate lift and effective advertising measurement, marketers should use a single-source panel that calculates the exact overlaps in exposure for each individual campaign and sees all consumer activity.

For marketers to eliminate mutant control, consumers must willingly share zero-party data using passive technologies so that ad exposure is tracked to the same individual across every site they visit. Only when marketers utilize a single-source panel solution to cross-platform ad measurement will they gain confidence in insights, future-proof identification without the need for cookies or other ID proxies, natural assessment and reduced workload.

Back To School Newsletter Ads Grew 40 Percent Year-Over-Year As In-Person Learning Resumes

In an unprecedented back-to-school season, consumers are buying more according to new LiveIntent research that shows back-to-school newsletter ads grew 40 percent compared to last year. The data suggests that retailers should focus on optimizing campaigns to reach younger audiences as well as parents, specifically mothers.

Newsletters that saw the most conversions highlighted shopping, style and fashion, and family and parenting. LiveIntent’s data shows that these newsletters saw campaigns perform 140 percent higher than the average conversion rate.

One reason for this could be that women are still doing the majority of back-to-school shopping for their household. LiveIntent found that women continue to lead as the primary buyers, with a 27 percent higher clickthrough rate (CTR) and 160 percent higher conversion rate than men. Older demographics had the highest clicks but the 18-20 year old group held the lead in conversions, with 59 percent higher than average.

LiveIntent also found that tablets are the best performing device for back-to-school retailers, with a 36 percent higher CTR than average. Still, PC conversion rates took the lead this year at 46 percent higher than average. When looking at performance by date, weekends had a 7 percent higher CTR and 5 percent higher conversion rate than weekdays, according to LiveIntent.

“As we enter an unpredictable school year, marketers have had to be nimble when designing their back-to-school campaigns. Understanding when and where to reach an audience is critical, especially as regional regulations are changing,” said Kerel Cooper, chief marketing officer at LiveIntent.

According to the National Retail Federation’s annual Back-to-School and Back-to-College surveys, shoppers of the 2021-2022 season will spend more than $108.1 billion this year—a record-breaking amount.

The NRF’s survey also found that the top three back-to-school categories in terms of spending are electronics, clothing and accessories, and shoes. For college shoppers, the top three categories are electronics, dorm or apartment furnishings, and clothing and accessories. For both groups, the top destinations are online and department stores.

A little over half (51 percent) reported to the NRF that they started back-to-class shopping, 39 percent said they shopped at the end of June sales and another 18 percent completed shopping on average.

New Study Shows Tiered Platforms Appeal To Most Viewers

Though free ad-supported TV platforms (FASTs) are on the rise, Hub’s annual Monetizing Video study found that tiered services account for a greater share of preference than subscriptions with one advertising option only.

The study, conducted among 1,607 US consumers aged 16 to 74 who watch a minimum of one hour of TV per week and have broadband at home, explores the distribution models consumers perceive as most valuable and how they prefer to pay for content.

More than a year into the pandemic, consumers are using more TV providers than ever as giants like WarnerMedia and Disney+ release top content to their streaming platforms. Meanwhile, 82 percent of US households with a TV have at least one inter-connected TV device, including connected Smart TVs, stand-alone streaming devices, connected video game systems, and/or connected Blu-ray players.

As a result of these changes, consumers are getting closer to the amount they think is reasonable to spend on TV—namely, less. In 2020, Hub found that a majority of consumers cited $72 as a reasonable amount to invest in TV but actually spent $94 at the time. This year, Hub notes that most consumers view $73 as the sweet spot for TV spending but actually spend $85 on TV overall.

When tiered services are an option, no other choice gets a greater share, according to Hub’s research. As part of its survey, the firm divided respondents into two groups who were then tasked with choosing from three hypothetical streaming services with identical content.

Group one’s options were: a paid, ad-free subscription, a free-with-ads service and a paid, limited-ads subscription. Group two’s options were the same as group one’s except the limited-ads service was replaced with a paid service offering two tiers to choose from—ad-free and ad-supported.  

Almost twice as many consumers picked the service with tiered options (36 percent) as the service with a limited-ad option only (19 percent). In addition, the limited ads-only service received a much lower share than either the paid ad-free service or the free-with-ads service.

The number of consumers choosing the tiered service, however, was just as high as the number of consumers choosing free-with-ads, and higher than the proportion choosing the service with only a single, ad-free option.

Tiered subscriptions could also increase the total addressable market, as Hub found that 40 percent of current HBO Max subscribers would consider switching to the ad-supported tier. More than a quarter of those who don’t subscribe to HBO Max said they’d consider signing up with a less expensive ad-supported tier as an option.

Hub also found that FASTs like Pluto TV and Roku Channel are gaining traction and this year have the highest perceived value of any kind of TV service, as noted by 66 percent of respondents. Sixty-four percent named subscription video on demand (SVOD) as a good or excellent value while 50 percent named virtual multichannel video programming distributor (MVPD) as a good or excellent value. Pay TV bundles ranked last, with 48 percent saying it’s a good or excellent value.  

Aggregation presents a big opportunity for pay TV providers to gain more perceived value, as 66 percent who said their pay TV subscription is a good or excellent value watch SVOD providers through their pay TV set box; 45 percent of the same group don’t watch their SVODs through their pay TV set-top box.

For companies that offer more than just video, such as Amazon, high-quality content is considerably appealing. When Hub asked respondents the primary reason they signed up for Amazon Prime, 50 percent said it was to access shows and movies on Prime Video; the other half cited other benefits such as two-day shipping.

The opportunity for same-day-as-theater releases remains strong, as Hub found that during COVID, more than half of young viewers said they’d pay as much as $30 to stream a first-run movie.

Marketing Budgets Decrease As A Percentage Of Company Revenue To Lowest Level In Recent History

Marketing budgets as a percentage of company revenue have dropped from 11 percent in 2020 to 6.4 percent in 2021—the lowest share allocated to marketing in recent history.

That’s according to Gartner’s CMO Spend Survey, conducted from March through May among 400 respondents in the US, Canada, France, Germany and the UK.

During 2020, Gartner found that the majority of chief marketing officers saw cuts well above 15 percent of the total marketing budget. Research from Gartner’s CMO Strategic Priorities Survey, however, shows that 56 percent of CMOs expected budget growth of more than 5 percent in 2021.

That decrease reflects a steady erosion of marketing’s funds amid marketing stakeholders’ lack of understanding on the impact that near-term marketing cuts have on brand awareness and consideration. As the report suggests, CMOs need to demonstrate in their next budgeting cycle that the current facade of savings presents a big risk to brand relevance, share of voice and the ability to engage customers with targeted, timely messages.

Accelerated investments in digital have come at the expense of functions such as marketing. All nine industries Gartner tracked were impacted by marketing budgets, with no industry holding a budget of more than 9 percent of revenue in 2021. 

Travel and hospitality saw budgets as a proportion of company revenue down from 10 percent to just 5.4 percent in 2020. CMOs from consumer products companies reported the strongest marketing budgets at 8.3 percent of revenue in 2021.

Investments in pure digital channels — be they owned, paid or earned — dominated CMOs’ investment priorities, accounting for 72.2 percent of the total marketing budget. Social media, digital ads and SEO are among the channels CMOs invested most in.

Almost a quarter of respondents told Gartner that cost reductions are what drove channel reallocations for the following reasons: to better meet the pace of change spurred by advances in digital technology (47 percent), to improve brand awareness (40 percent) and to gather data-driven insights from digital channels (39 percent).

Compared with previous years, marketing channel budget priorities have changed little year-over-year, with marketing technology still dominating at 26.7 percent of the total budget — a slight increase from 2020.

Agencies’ share of the total budget has declined slightly, by 0.7 percent, signaling the increase of efforts being moved in-house. Respondents reported that 29 percent of work previously produced by agencies has moved in-house in the past 12 months. The top three reasons for this, CMOs said, include brand strategy, innovation and technology, and marketing strategy development.

Across marketing programs and operational areas, digital commerce holds the largest share of the pie at 12.3 percent of the total budget, followed by marketing operations (11.9 percent) and brand strategy (11.3 percent). Marketing analytics came in fourth, comprising 11 percent of total budget.

Study: Overlap In Advertisers For Snapchat And Facebook Is Low

Despite a decline earlier in the year due to the pandemic, digital ad spend increased 12.2 percent year-over-year in 2020, giving major advertisers like Google and Facebook a greater share of the pie. With users spending more time than ever on social media and online shopping, eMarketer estimates US digital ad spending will grow 25.5 percent, the fastest growth rate since 2018.

With the proliferation of audio-only platforms and the gradual return to offices amid rising vaccination rates, though, how effective are Facebook ads now compared to ads on Snapchat, podcasts and television? MediaRadar’s latest analysis answers that question with insights from Q1 on how ads from each channel mentioned measure up to ads on Facebook, where 48 percent of advertisers were exclusive in Q1.

MediaRadar first set out to understand the top four categories of advertisers on Facebook in Q1. According to the study, those categories include entertainment, retail, professional services and tech; collectively accounting for nearly 65 percent of all advertisers on Facebook in Q1.

Retail saw the largest volume of advertisers on Facebook in Q1: 4,600 according to MediaRadar’s study. Brands that exclusively advertised on Facebook make up 56 percent of the retail category, with auto dealerships being the top retail brands advertising in Q1. These included Mercedes-Benz of Des Moines, Kansas City Honda Dealers, Audi Layton and Cook Subaru.

It was entertainment companies, however, that spent the most on Facebook ads in Q1, namely Disney+, HBO Max, Discovery+, Sling TV and Amazon Prime Video. Of all the ad spend that quarter, streaming companies comprised 7 percent.

The largest spikes in ad spend in Q1 2021 came from smaller categories. For example, spend in food, restaurant and bar categories increased 303 percent YoY that quarter. The restaurant and bar category surged to an all-time high of $184 million in Q1.

According to the analysis, in Q1, 48 percent of Facebook campaigns lasted one month, 38 percent lasted between two to four months, 10 percent lasted between five to seven months, 5 percent lasted between eight to 10 months and 4 percent lasted between 11 to 12 months.

As for how advertising on Facebook measured up to advertising with TV broadcasters, MediaRadar found that the percentage of overlap between advertisers on NBC and Fox and advertisers on Facebook in Q4 2020 was identical—34 percent. As the study notes, this may reflect Facebook’s pursuit of linear TV advertisers versus any single channel. In addition, Facebook overlap with broadcast advertisers is on the rise YoY comparing Q1 2020 to Q1 2021, which may suggest Facebook is getting better at attracting these advertisers.

Facebook has launched several new audio products in order to compete with the likes of Apple podcasts and Clubhouse. For example, it recently started rolling out Live Audio Rooms and in-stream podcasts. MediaRadar’s analysis found that in Q1 of 2021, the top 10 spending advertisers on podcasts that overlapped on Facebook accounted for 15 percent of all podcasting ad spend. And, correlating spend on Facebook accounted for less than 1 percent of Q1 spend. Lastly, in Q1 2021, 29 percent of podcast advertisers overlapped with Facebook advertisers, according to the report.

The report showed that the overlap in advertisers on Snapchat and Facebook between January 2020 and March 2021 was 22 percent, with the lowest amount of overlap having occurred in February 2020, at 14 percent. The low amount of overlap could be the result of Snapchat having added new features, such as a ‘Sounds’ option that lets users add song clips to their videos, to woo Gen Z.

Being A Good Steward Of Data With Privacy Lawyer Odia Kagan

Odia Kagan is a Partner and Chair of GDPR Compliance and International Privacy at Fox Rothschild LLP, a US national law firm. She has advised more than 200 companies of varying industries and sizes on compliance with GDPR, the California Consumer Privacy Act and other US data protection laws.

In this episode, Odia and I discuss why marketers should care about data protection and what they should be paying attention to in the connection between marketing and data. For those unfamiliar with CCPA and CPRA laws, Odia breaks down what each means and why they are relevant to marketing. 

Odia says, “Consumer trust is aligned with privacy compliance.” As the interview continues, you’ll hear more references to the emerging cookie-less world, consumer trust, and mindfulness that all data collection isn’t good data collection.  


In this episode, you’ll learn:

  • Why marketers should care about data protection
  • What it means to be a good steward of data
  • The relationship between privacy laws and UX design and experience 

Key Highlights:

  • [01:31] What led Odia to pursue privacy law 
  • [02:38] Care about data protection 
  • [05:15] Be transparent about what you do with data
  • [10:45] Be mindful of how you share data
  • [12:45] What Odia thinks marketers can solve
  • [19:36] Breaking down CCPA legislation 
  • [24:34] Breaking down CPRA legislation
  • [31:15] Privacy laws with UX design and experience  
  • [35:20] Meeting consumer expectation 
  • [38:00] A defining experience that made Odia who she is today 
  • [39:10] Odia’s advice to her younger self
  • [40:00] Odia’s impactful purchase
  • [41:05] The brands and companies Odia follows
  • [42:38] What Odia says is today’s biggest threat and opportunity for marketers

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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 opportunities around brand, customer experience, innovation, and growth. He has consulted with Fortune 100 companies, but he is an entrepreneur at his core, having founded or served as an executive for nine startups.