TRENDING NORTH: JAN ‘23
A monthly look at the marketing and advertising industry from NORTH’s point of view.
CES — The Most Influential Tech Event in the World
Landie Viljoen, Channel Strategy Director
It’s the first day of CES! CES (Consumer Electronics Show) first debuted in 1967 and over the last 50 years has become an exhibition for companies from all over the globe to showcase advancements in technology. For tech-geeks like me, it’s the mecca of the future of technology. This year, the categories include Web3, the metaverse, and more. We can expect to see the latest and greatest in gaming, consumer electronics, audio visual, electric vehicles, and smart home technologies. Some of the jaw dropping tech displays include Fiat’s metaverse store, John Deere’s fully autonomous tractor, and BMW’s color-changing car that can smile at you (just to name a few).
Have You Heard of ChatGPT?
Landie Viljoen, Channel Strategy Director
ChatGPT is a chatbot developed by OpenAI that may drastically change online searching as we know it. The chatbot has the ability to interact with online searchers in a conversational way, responding with a direct human-like answer. The tool bypasses the users sifting through extensive articles for complex questions and gets straight to the answer, making answers to search queries more ‘chatty’. Although it has some flaws today, over time ChatGPT is trained to learn what humans mean when asking a question, revolutionizing how search engines operate today.
Microsoft is currently preparing to add the ChatGPT chatbot to its Bing search engine as a way to get Google users to switch to Bing. Google’s leadership has declared its release a “code red” that could upend their business. In 2021, digital ads accounted for more than 82% of Google’s revenue, heavily relying on paid search results that aren’t easily integrated into direct, conversational answers. Bing’s Chat GPT integration is projected to launch in late March.
Instagram: the SuperApp?
Madelyn Brennecke, Sr. Performance Marketing Manager
2022 was an interesting year for Instagram. As Instagram continued to lean into video and reels, as well as increasing the amount of suggested content in a user’s feed, many felt it was losing its identity and simply becoming a knockoff hybrid of Snapchat and TikTok. While Instagram was once a cultural leader, it is now left playing catch up with Snapchat’s AR technology, TikTok’s suggested content algorithm, and Pinterest’s unending stream of inspiration. It seems Instagram is attempting to combine all of these focuses into one SuperApp. While many feel this strays too far from its original purpose of connection, Instagram feels it is this core functionality that gives it an edge over other apps like TikTok and Pinterest. On Pinterest and TikTok, users are finding and engaging with content, but it is a more “leaned-back,” solo experience. They may share TikTok videos to a couple close friends, but the only response is a quick heart before going back to their “For You” page. However, Instagram has reported content sharing through Direct Messages is sparking conversations, and reports that users are sharing more through DMs than on their own feeds. They believe it is their foundation of connecting users that will give them an edge over TikTok. While I’ve heard more grumbles than excitement over the changes Instagram has made this last year, the numbers don’t lie, and Instagram has continued to increase its user base, hitting over 2 billion monthly active users. And while new apps pop up with a great idea, like BeReal, they don’t have the volume to compete when Instagram inevitably incorporates this new trend.
Heading into 2023, Instagram chief Adam Mosseri posted a video highlighting Instagram’s top 3 priority for the new year, none of which was all that surprising. Firstly, Instagram will focus on “Inspiring people to be creative” presumably through AR filters and video editing tools. Secondly, they want to help users “Discover new things that they love” with an emphasis on videos, photos and creators. With this, we can expect even more suggested content in the feed, which may ultimately become fully suggested content similar to the “For You” page. And lastly, Instagram wants to “spark connections between people over what they find.” This will likely mean new features in the DM section, like the addition of Notes (Facebook status updates anyone?).
TikTok Ban Back on the Table
Madelyn Brennecke, Sr. Performance Marketing Manager
For much of last year, TikTok has been under investigation by the Committee for Foreign Investment (CFIUS) over its potential linkage to the CCP. It has repeatedly pledged that US user info is not being shared with China-based staff. TikTok COO, Vanessa Pappas, testified “Our goal is to ensure non US-based employees, including China-based employees, will only have access to a narrow set of TikTok US user data, such as public videos and comments available to anyone on the TikTok platform, to ensure global interoperability.” For months, TikTok has been in negotiation with CFIUS establishing the key provisions of a US data deal and has spent over $1.5 billion on reorganization and hiring efforts to address key concerns. And just when an agreement seems close, an investigation from the Financial Times puts a potential ban back on the table.
An investigation from the Financial Times found that four TikTok employees (2 located in China) had gained access to personal data, including IP addresses, for reporters of the Financial Times and Buzzfeed, as well as several users connected to the reporters through their TikTok accounts. ByteDance said this information was accessed to track if these reporters were in proximity to ByteDance employees. This is a significant violation of user privacy, as well as a violation of the freedom of press, and goes against the many public statements that TikTok has made in regards to how its Chinese staff access US user info. It essentially proves that TikTok can be used as Spyware as many government officials have feared.
The US data deal could be off the table now and the app may be forced with a hard choice: a ban in the United States, or a full sell-off into US ownership. However, a ban in the US will likely result in similar bans in other western nations. Expect to see TikTok take center stage in social news for the next couple of months as these negotiations play out.
How Consumers Are Discovering Brands in 2023
Stephen Lawrence, Media Planner
Creating a long term relationship with consumers truly starts from the first interaction with a brand — the first ad they see on social media, a video commercial on a streaming platform, or even from a positive experience a friend has had with a brand. So, as media partners, it’s important to consider brand discovery when considering media platforms and opportunities for our brands to utilize. This is where GWI jumps in, and provides an in-depth look at where consumers feel that they typically find out about new brands. Below are their top 10 results:
- Search engines (31%)
- Ads seen on TV (30%)
- Word-of-mouth recommendations from friends or family members (27%)
- Ads seen on social media (27%)
- Brand/product websites (25%)
- TV shows/films (23%)
- Ads seen on websites (23%)
- Online retail websites (23%)
- Recommendations/comments on social media (22%)
- Consumer review sites (22%)
However, what is incredibly interesting about this list is not the list itself, but where generational gaps start forming for each channel. For example, the top pick for Gen Z is ads on social media (about 28%) whereas Gen X is heavily influenced by search engines and ads on TV. When looking into 2023, it is insights like this that create media plans that are robust and targeted, making sure that brands are hitting their target audiences in the places that not only provide a large reach, but also where consumers are leaning into brand messaging and engaging with ads they are seeing.
Tackling Digital Advertising in 2023
Stephen Lawrence, Media Planner
Since the pandemic, all eyes have been on return on ad spend, as everyone continues to try to navigate the complexities of a pandemic and the impact it has had on society at large. And with a new year comes no exception to the uncertainty of another confusing time in terms of how to manage media planning with rises in interest rates, inflation, unemployment, and more. However, Forbes provided some great tips on ideas to keep in mind for the next year, allowing media partners and brands to think critically about media spend and best places for media dollars. First off, Forbes calls out looking at CPMs and making sure that brands are staying competitive in the ever changing landscape, while remaining nimble when changes happen and ROI decreases. Additionally, more than ever, thinking critically about data is vital to a successful 2023. Tracking conversations, engagement, and clicks are going to be hugely important in terms of managing media and making sure brand KPIs are being met. Lastly, and most importantly, staying flexible is going to be hugely important. Being open to switching gears during a campaign, swapping dollars, or updating creative, are going to be massively relevant throughout the next year, as cost and performance continue to be scrutinized.
How Programmatic Premium Video Might be the Future
Stephen Lawrence, Media Planner
When thinking about streaming video, it’s hard to think of how video creative can live and thrive on one specific platform — with every channel, publisher, and TV show running across countless different places, it’s hard for advertisers to find the right one to work with that meets all brand KPIs, while targeting the ideal audience. Working with one platform only allows a lot of inventory within that placement — but with US households having an average of 4.7 streaming services, how do advertisers make sure to hit consumers everywhere they are watching? That’s where programmatic video partnerships come in, especially when considering the ever growing landscape of 2023. CTV programmatic partnerships offer premium scale, lower overall CPMs, while allowing advertisers to meet consumers across whatever screen and platform they might be watching on. While limited by in-house creative experience, programmatic still provides an opportunity to truly reach consumers with scale and simplicity.
