DIGITAL MEDIA DIGEST: JAN ‘21
A monthly look at the world of digital from NORTH’s point of view
Rethinking eCommerce
By Nicole Bell, Director of Media
Moving cross-country during a pandemic was quite the adventure. The best advice I can give is to downsize. We sold almost all of our furniture, which was a brilliant idea until we finally arrived in Portland (by way of Texas) and I didn’t have a desk for my home office. After working on the floor for a week, I finally found a desk that would work perfectly. Except, I hadn’t unpacked my measuring tape and had no idea what box that was in. Luckily for me, the Target App has integrated Augmented Reality (AR) into their platform. I placed a 3D desk in the space, it fits perfectly and the rest is history.
Augmented Reality is a game-changer for online shopping. It allows consumers to visualize a product in their space, from furniture to clothing and even paint. A lot of retailers stepped up their AR capabilities and experience because of Covid-19 in 2020. I feel that this was one of the most impactful advances in eCommerce last year. Of course, all the experts say that the pandemic simply accelerated eCommerce, but I have to wonder what’s next. eCommerce will continue to grow, but what should advertisers really watch out for? I have summarized a few key trends that we’re watching closely at North.
Smart Speakers and Voice
When the pandemic first hit the US last Spring, usage for smart speakers changed immediately. According to a National Public Media Report, about 43% of consumers are using their smart speaker more often than they did pre-pandemic.
We can assume that with the rise in smart speaker usage, there will also be a rise in Voice Search where consumers will be able to add products directly to their carts, all without ever looking at a screen. Brands should take this opportunity to integrate Voice Search and Buying into their overall eCommerce strategy.
Artificial Intelligence (AI)
The in-store experience has been lost as a result of the pandemic, and for many consumers, that personal and in-store shopping trip was crucial for their connection with stores, and brands. While most consumers are still at home, brands still have the opportunity to leverage AI to make a one-to-one personal connection with their audience. Essentially machine learning, AI has the ability to learn all about their consumers to provide a personalized, all online, experience.
For advertisers, this means layering on AI technology on their websites to help create and drive individualized experiences for consumers. Personalization shows a consumer that a brand cares about the individual, and works to cultivate a relationship. The experience can be as simple as recommending products and recipes based on past browsing, and purchasing, behavior.
Social Commerce
To put it simply, the process of selling products through Social Media. The goal of Social Commerce is to keep users within one platform to make a purchase. Last year, Facebook rolled out “Shops” turning brand profiles into social storefronts. Pinterest did the same. TikTok launched a partnership with Shopify, with the end goal being to expand on in-app shopping features.
However, simply making all content shoppable across all social media channels isn’t the only way to drive sales through Social Media. Consumers want the shopping experience to be entertaining, and live streams do just that. Livestreams also provide the opportunity for live Q&A sessions about products. According to a GWI Report, one Livestreamer last year drove millions (not a typo) in sales for a brand just through live streaming.
There is a lot of noise out there, and competition for even :05 seconds with a consumer is immense. eCommerce isn’t just the bottom line of sales anymore, it’s about making the user journey as simplified and personable as possible. The world of eCommerce is evolving, and brands that adapt to Voice, AI, and Social Commerce will continue to grow and be at the forefront of their industry. Not to do so would be, well, not to evolve.
Snapchat Draws in Users by Incentivizing Creators and Investing in Original Content
By Madelyn Engel, Performance Marketing Manager
After being left for dead, Snapchat has been making a comeback by consistently innovating to compete with copycats like Instagram’s stories and reels. Snapchat has recently released a feature to combat its newest rival, TikTok.
Snapchat’s new “Spotlight” features the best Snaps on the platform in a feed similar to TikTok “to shine a light on the most entertaining Snaps created by the Snapchat community.” Snapchat is incentivizing creators by giving away $1 million a day, which they distribute across creators featured on Spotlight. Creators can submit their Snaps to Spotlight for the opportunity to earn cash. One of Spotlight’s draws is that anyone’s Snaps can take center stage; users don’t have to have a public account or an influencer following to be featured. Spotlight Snaps move up in ranking based on engagement: how long a user watches the video, if they favorite it, or if they share it with their friends. Negative factors like skipping the video quickly can also affect rankings. Spotlight is currently available starting in the US, Canada, Australia, New Zealand, the UK, Ireland, Norway, Sweden, Denmark, Germany, and France.
Snapchat has also been investing heavily in Snapchat Original Series. Will Smith’s “Will From Home,” which aired in April and followed Will Smith’s stay-at-home experience, was wildly popular and was viewed by over 35 million Snapchat users. The series was renewed for a second season, “Will From Home: Holiday Special.” This season of 10 episodes “invited viewers to spend a few minutes with Will as he surprised people across the country who were being recognized for their acts of selflessness and bravery.”
Snapchat has announced their newest Snap Original Series, “Ryan Doesn’t Know” starring Ryan Reynolds. In this series, Ryan “takes some time for some self-improvement, learns some extremely useful skills, and meets some new friends.” These new “extremely useful” skills are things like ice sculpting, ax throwing, and latte art. These Snap Original Series are available exclusively on Snapchat, with episodes airing every other day.
Snapchat has historically been a platform to stay in touch with friends and family. However, these shifts in content, with a focus on creator discovery and exclusive original content, sets Snapchat up to rival Instagram and TikTok, and even platforms like Netflix. These strategies are drawing users back to the platform.
While Snapchat may not be on par with TikTok and Instagram just yet, it should definitely be on every advertiser’s radar. One leg up that Snapchat has over TikTok is their advertising features, which have been upgraded and perfected over the last couple of years. TikTok, on the other hand, does not have a self-serve advertising platform just yet and will likely have a couple of years of kinks to work out before they are a viable option for advertisers.
Expectations for Data and Privacy Legislation under a Biden Administration
By Izzy Kramer, Retired Media Planner
I am writing this article during the inauguration of President Biden and Vice President Harris. It’s certainly a strange inauguration one filled with conflict. There is a great lack of people but at the same time too many government officials that feel too close together and hugging too much. There is a great overbearing sadness of what our country has been through and become over the past four years but also cautious optimism with a yearning to actually feel excited. All in all, it’s strange.
Nonetheless, the correct words were said in the correct order and we now have a new president, along with a Democratic majority in the House and Senate. Trump left behind a mess of things with privacy and consumer protections included in that mix. So what can we expect from Joe Biden’s presidency and Democratic majority when it comes to data, privacy, and media? This AdExchanger article lays it out well:
- Data Privacy Legislation: It is one of the very few topics that actually has bipartisan support. With that, the support is still divided (of course). With a Democratic majority, it is anticipated that more focus will be on data collection practices. From AdExchanger, “‘Democrats in the House and a number of highly placed Republicans in both branches have been vocal about their interest in national privacy legislation,’ said Dan Jaffe, Group EVP for government relations at the Association of National Advertisers. ‘Democratic control of the Senate has also propelled Sen. Maria Cantwell (D-WA) from ranking member to the leader of the Senate Commerce Committee,’ Jaffe pointed out. Cantwell, an advocate of federal privacy legislation, was the main sponsor of a Senate bill in late 2019 that aimed to serve as the framework for a national privacy law.”
- Federal Trade Commission Power: In December of 2020, the Federal Trade Commission released a study on data collection, monetization, and business practices of nine of the major internet companies: Amazon, Facebook, WhatsApp, Reddit, Snap, Twitter, YouTube, Bytedance, and Discord. These companies are expected to provide detailed information on how they use consumer data by the end of January. “Democrats have long been supportive of strengthening the FTC’s enforcement powers. A Democrat-led Senate ‘will push the commission to be aggressive in regard to advertising regulation and a robust use of its antitrust authority,’” Dan Jaffe adds in AdExchanger.
- Eyes on Big Tech: Two federal antitrust lawsuits are still in progress as Biden takes office: FTC against Facebook and the Department of Justice against Google. “Despite fear that some potential Biden appointees might have a soft spot for big tech, antitrust is one of the few batons the Biden administration is likely to pick up and run with from the Trump era — and then perhaps take a step further.”
With that, the Biden Administration certainly has a few bigger issues to tackle within the first 100 days (eh hm pandemic), so not much movement is expected just yet. Nonetheless, action is expected.
