Welcome to the first Virtual Marketers digital marketing mashup for 2024! And it’s already shaping up to be a mammoth year for the world of digital marketing. This month Google's Gemini AI revolutionises ad creation, LinkedIn enhances career development with AI tools, SMEs grapple with third-party data challenges, advertisers pull back spend and the rise of attention metrics offers a new perspective on ad effectiveness. Let’s go!
- Google Launches Gemini AI for Smarter Google Ad Creation
- More AI News: LinkedIn Introduces AI-Powered Coaching and Learning Tools
- 90% of Small Businesses Are Concerned About Third-Party Data Loss
- Q4 Results Were Mixed for Advertisers
- Attention Metrics: The New Frontier in Digital Advertising
1. Google Launches Gemini AI for Smarter Google Ad Creation
Big news! Google is enhancing its ad game with a fresh, conversational AI experience using its Gemini AI model in Google Ads. This cutting-edge feature, which lets us craft compelling ad content with ease, is now available to English-speaking advertisers in the U.S. and U.K., and hopefully over in little old New Zealand soon enough.
The tool, first revealed last May, promises to make ad creation more intuitive and effective, boosting ad quality and diversity. Google's data shows that small businesses using this feature are scoring higher on Ad Strength, leading to more conversions. Google also plans to incorporate AI-generated images into these ads soon, ensuring transparency with a unique watermark. This innovation is a game-changer, potentially revolutionising how $40 billion worth of ad revenue is generated annually. It's a pivotal moment for the marketing industry, underlining the critical role of AI in shaping the future strategies we create. Exciting times!
Source: Marketing Dive
2. More AI News: LinkedIn Introduces AI-Powered Coaching and Learning Tools
Although not necessarily directly impacting marketing on the platform, LinkedIn is revolutionising career development with new AI-based enhancements to its Learning platform. The platform is testing a novel AI coaching feature designed to personalise your learning journey, tailoring advice and course recommendations based on your career stage. Imagine getting tips and course suggestions for improving specific skills like content writing, all personalised for you! Additionally, LinkedIn is gamifying the learning experience with engaging video content, progress checks, and motivational streaks. They're also integrating job alert-based course recommendations, aligning your learning with your career aspirations. This move positions LinkedIn as a leader in career education and progression, and could definitely help marketers advance their careers by showcasing skills.
Source: Social Media Today
3. 90% of Small Businesses Are Concerned About Third-Party Data Loss
With a significant shift in the marketing landscape looming, nearly 90% of small and medium-sized businesses (SMEs) are expressing concern over losing access to third-party data, according to a recent UpCity study. This worry comes as third-party cookies are becoming less popular, and the advertising world is moving towards first-party data solutions.
The survey, which included 300 small and medium business marketing analytics professionals, highlighted that while larger companies might adapt, smaller businesses are feeling the pressure. SMEs are now increasingly investing in first-party data, with 60% seeing higher ROI from it compared to third-party data. However, the transition is challenging due to the high costs and complexities involved. Many SMEs are turning to digital marketing agencies, software solutions, and data sharing with other SMEs to bridge this gap. This change marks a crucial point for SMEs in adapting to the evolving digital marketing environment.
Source: UpCity
4. Q4 Results Were Mixed for Advertisers
In the latest quarter of 2023, the advertising world saw a mixed bag of results. Major players like Alphabet, Comcast, Meta, and Snap reported declines in ad revenue, signalling a trend of reduced spending in challenging market conditions. Alphabet, for instance, experienced a near 4% drop in Google's ad revenue, while YouTube's fell by 8%. Meta's ad prices tumbled 22%, despite a rise in impressions.
However, it's not all doom and gloom. McDonald's stands out as a success story, attributing significant revenue and digital growth to its robust marketing strategies. CEO Chris Kempczinski credits their "best-in-class marketing engine" for putting McDonald's in a strong position, with campaigns like Cactus Plant Flea Market and McRib making notable impacts. Meanwhile, sectors like podcast streaming, represented by Spotify's 14% year-over-year ad revenue growth, and agencies like Publicis with a 9.4% organic revenue increase, show resilience in the face of market challenges. So, while some tighten their belts, others find ways to thrive, making the advertising landscape as ever, a complex and varied field.
5. Attention Metrics: The New Frontier in Digital Advertising
Advertisers are buzzing about attention metrics, a new tool to gauge the effectiveness of digital ads beyond traditional measures. Companies like Amazon are showing keen interest in these metrics, which combine eye-tracking data and web-page layout insights. This innovative approach seeks to quantify the 'jazz hands' quality of media placements, focusing on how much actual attention ads receive, not just if they're seen.
Attention metrics have gained traction as advertisers pursue more precise ROI tracking and face dwindling consumer data due to tighter privacy regulations. These metrics offer valuable insights, like the effectiveness of ad placement and size, and debunk myths about certain ad positions. While attention is an important factor, experts remind us it's just one part of a holistic marketing strategy, emphasising the ultimate goal of driving sales.
Source: Marketing Brew
And that’s our mashup for January! Hope you enjoyed these juicy tidbits, AI certainly seems to be top of mind and there is so much happening in that space it’s hard to keep up. So don’t worry, we’ll keep providing these brief overviews of exciting goings on, all throughout the year. See you again soon!
