Advertising
Google boycott: Is it all about free PR?
Originally Published by Stefan Michel – professor of marketing and service management at IMD business school in Switzerland.
Swiss companies, such as the soft cheese manufacturer Baer and Swiss Life, have announced that they will stop placing any advertising on Google because their ads have appeared alongside YouTube videos with inappropriate content, such as neo-Nazi speeches or extremist videos (see report on persoenlich.com). US telecom giants AT&T and Verizon have also decided to follow suit (see report on persoenlich.com).
In the UK, more than 250 companies are calling for a Google boycott. Overall, this has led to a 4.5% decline in Alphabet share prices. In other words, the market capitalisation of the Google/YouTube parent company has been reduced by 22 billion US dollars. Investors are now asking whether this controversy marks the beginning of the end for Google’s advertising dominance.
It’s an interesting case because it can be interpreted in a few completely different ways.
1. Baer/Swiss Life Boycott
Swiss Life und Baer have announced that they will no longer advertise on YouTube and the Google Display Network (GDN). However, despite the anger expressed by communications professionals, they will eventually return to Google. The public boycott is free PR. I’ve never seen any Baer advertising on YouTube, but now I’m aware of it. The companies have also had an opportunity to communicate their own values. A brand is unlikely to be damaged by the display of an advertisement alongside negative content. Internet users know that Baer and Swiss Life are not seeking to cosy up to neo-Nazis and extremists. I don’t believe a company will leave advertising on Google to their competitors in the long run. Also, no company is going to completely boycott Google. This would mean reducing search engine optimisation on Google, or programming a company website in such a way that Google is unable to find it.
2. A YouTube error in the 0.01% range
It’s clearly a mistake when a brand is displayed alongside hate videos and Google is doing everything in its power to prevent this happening again. 99.99% of the time Google advertising is matched to your interests with scary precision and it learns fast. So the above cases are clearly exceptions. You should also bear in mind that 400 hours of video are uploaded to Youtube every minute. Every minute! Sorting these videos works well, but things do go wrong occasionally. If the digital revolution has taught us anything it’s that systems and algorithms are improving continually.
3. Everyone wants viral campaigns and total control
The current controversy underlines how the way companies communicate their message has been profoundly transformed. Before the digital revolution, those in charge of communications and advertising had almost total control over their own communication channels. Social media has had a major impact on this. It creates new opportunities, such as viral campaigns. But the disadvantage of viral campaigns is that they are viral, i.e. there is no control over dissemination. No company can prevent their brand being liked orshared by anyone on Facebook. The one area where companies still retain control is their budget. And they are making use of it in the current controversy.
4. Google’s dominance creates anxiety
Another factor that has fanned the flames of this controversy is Google’s dominance as a search engine and advertising platform (Google AdWords and AdSense), plus applications such as Google Maps and even YouTube. If you examine the expenditure of companies which rely heavily on marketing, such as brokers, you’ll notice that Google advertising represents the largest item of expenditure. If the search term is particularly popular (e.g. insurance, loans) 40 US dollars or more are paid per click. Per click! In terms of competitive strategy, it makes sense for clients to use this kind of boycott to unite in order to counter Google’s dominance.
5. Exchange rate
A loss of 22 billion US dollars within a few days sounds dramatic. As a point of comparison, Credit Suisse shares are valued at around 30 billion Swiss francs on the stock market. This means the Google nose dive is equivalent to two-thirds of the value of the major Swiss Banking group. A look at Google share prices over time shows a fall from an all-time high of 852 dollars. On 29 March 2017, prices had returned to the 14 February 2017 level – around 820 dollars. Nevertheless, and despite the controversy, investors have not lost confidence in Google’s business model.
What is clear is that Google needs to respond to this issue quickly and effectively and improve its advertising placements.
Stefan Michel is professor of marketing and service management at IMD business school in Switzerland where he directs IMD’s EMBA program.
As traditional advertising revenues plummet globally and broadcasting budgets are slashed, The Middle East and North Africa (MENA) and South East Asia (SEA) regions have reported tremendous growth in digital adoption and a rise in digital advertising revenue as a result.
This growth is driven by an increase in internet users, smartphone penetration, and the rise of social media platforms. AI Copywriter tools are now being widely adopted by brands, organisations, and companies in these regions to enhance their digital advertising campaigns.
Let’s delve deeper into the trends and statistics of advertising revenue and digital adoption in MENA and SEA.
Digital Advertising in MENA
MENA has emerged as one of the fastest-growing digital advertising markets, driven by a young population and increasing smartphone penetration. According to a report by McKinsey, the United Arab Emirates (UAE) has the highest degree of digitisation, while Egypt represents the largest untapped opportunity. The report also highlights a growth in the adoption of digital channels and spending in the coming years, coinciding with the increased use of artificial intelligence (AI) across all sectors.
The Market Size
The digital advertising market in the MENA region is estimated to be worth over 1.2 billion U.S dollars in 2021. The market is expected to continue growing, with a projected growth rate of 20% by 2024. The region’s e-commerce market is also expected to grow and reach 69 billion U.S dollars by 2020. The GCC and Egypt account for 80% of the regional e-commerce market.
Media Channels in the MENA
The advertising market in the MENA region is witnessing a major shift toward digital advertising. Traditional channels such as newspapers are declining, while the internet is taking over with 44.2% of the total ad expenditure in 2020, according to Statista. Social channels account for more than half of the total digital ad spend, surpassing global benchmarks. The region is also moving towards a “mobile-first” strategy, with a majority of internet traffic generated through mobile devices such as smartphones and tablets.
Performance Marketing in the MENA
Performance-based campaigns are gaining traction in the MENA region, with 59% of advertising agencies significantly shifting into performance-based campaigns, according to a survey conducted by the Interactive Agency Bureau (IAB). Brands are demanding payment by results (ROI & Return on ad spend ROAS) as well as enhanced consumer insights and analytics.
Digital Advertising Agencies in the MENA
The MENA region has over 500 advertising agencies that have a large number of employees, with Egypt, Saudi Arabia, and the UAE fuelling the region with small and medium-sized agencies. The UAE is home to big advertising firms, while Egypt, Lebanon, and Jordan represent the majority of digital marketing talents and creative resources. However, the highly qualified talents in digital advertising and performance are always moving outside the region to join companies in the European market.
Programmatic Advertising in the MENA
The slow transition from traditional to digital media is one of the key reasons programmatic advertising is struggling to dominate the region. Collectively, the MENA trails other regions in innovation and adoption of ad tech and marketing technologies. The top ad networks in the MENA region include Facebook, Google Ads, IronSource, Applovin, Adcolony, AdFalcon, InTarget, AdZouk, and Ambush. The United Arab Emirates is leading the growth in programmatic advertising due to technology partners and pressure from clients and brands to automate the process and use AI.
Digital Advertising by Sector
According to Ipsos research, the top ten sectors in the region are dominated by beauty care, food, telecommunications, and entertainment. Telecommunications companies, followed by real estate and banking, are the top categories.
Digital Advertising in SEA
SEA is a rapidly growing digital advertising market, driven by a young and tech-savvy population. According to a report by eMarketer, digital ad spending in SEA is expected to reach 15.3 billion U.S dollars in 2021, with Indonesia, Thailand, and Vietnam leading the growth.
The Market Size
The digital advertising market in SEA is expected to grow at a rate of 13.7% in 2021, with a projected market size of 22.45 billion U.S dollars by 2025. The region’s e-commerce market is also booming, with a projected market size of 153 billion U.S dollars by 2025.
Media Channels in SEA
SEA is also witnessing a major shift toward digital advertising, with traditional channels such as newspapers and TV declining. Social channels are the most popular, accounting for 63% of total digital ad spend, according to a report by Hootsuite. Mobile advertising is also on the rise, with a majority of internet traffic generated through mobile devices such as smartphones and tablets.
Performance Marketing in SEA
Performance-based campaigns are becoming popular in SEA, with advertisers demanding more accountability and transparency. Brands are looking for more measurement and optimisation to ensure their campaigns are reaching the right audience and delivering the desired results.
Digital Advertising Agencies in SEA
SEA has a large number of digital advertising agencies, with many emerging startups and creative agencies. The region is home to a highly skilled workforce, with many professionals trained in digital marketing and advertising.
Programmatic Advertising in SEA
Programmatic advertising is becoming more popular in SEA, with many brands and agencies adopting the technology to automate their advertising campaigns. The region is also seeing an increase in the use of AI-powered tools and platforms to help advertisers optimise their campaigns.
Digital Advertising by Sector
The digital advertising market in SEA is dominated by the retail and e-commerce sector, followed by the travel and hospitality sector. The region is also seeing growth in the financial services, healthcare, and automotive sectors.
AI Copywriter Tools in Advertising
AI copywriter tools are becoming increasingly popular in the MENA and SEA regions, with many brands and agencies adopting the technology to enhance their digital advertising campaigns. These tools use natural language processing (NLP) and machine learning algorithms to generate high-quality, engaging content that resonates with the target audience.
AI copywriter tools can help brands and agencies save time and money by automating the content creation process. They can generate a large volume of content quickly and efficiently, allowing advertisers to test multiple variations of their ads and optimise their campaigns for better performance. AI copywriter tools can also help advertisers improve the quality of their content by ensuring that it is grammatically correct, engaging, and relevant to the target audience. They can analyse data from social media and other sources to identify trends and insights that can inform the content creation process.
Conclusion
The MENA and SEA regions are witnessing tremendous growth in digital advertising and digital adoption, driven by a young and tech-savvy population, increasing smartphone penetration, and the rise of social media platforms. AI copywriter tools are becoming increasingly popular in these regions, providing brands and agencies with a cost-effective and efficient way to enhance their digital advertising campaigns. The future of digital advertising in these regions looks bright, with continued growth and innovation in the years to come whilst broadcast and traditional advertising feels the pinch. The time has come for the more conservative amongst us to take the plunge and fully embrace digital and all it entails.
Facebook will no longer allow Special Ad Category advertisers to use the Special Ad Audiences tool.
Meta will be sunsetting Special Ad Audiences, a tool that lets advertisers expand their audiences for ad campaigns related to housing, employment, and credit ads.
In 2019, in addition to eliminating specific targeting options for housing, employment, and credit ads, Facebook introduced Special Ad Audiences as an alternative to Lookalike Audiences.
Since the Cambridge Analytica scandal, Special Ad Category advertisers must declare their category before creating ads. If advertisers fail to declare it, the Facebook policy team shuts down their advertising accounts.
Now, it’s getting more limited with this new rule.
Deprecation Timeline
Following is the timeline from Meta regarding the deprecation of Special Ad Audiences:
- August 25, 2022: you will no longer be able to create new Special Ad Audiences.
- September 13, 2022: Special Ad Audiences will no longer be available in new ad creation via the API.
- October 12, 2022: Special ad audiences will no longer be available in new ad creation across Ads Manager and the API. After this date, the affected ad sets may be paused for delivery. To resume delivery of the paused ad sets, you will need to update them to remove Special Ad Audiences.
According to this timeline, you’ll no longer be able to use Special Ad Audiences in new ads via the API on September 13 and Ads Manager on October 12.
How can the Special Ad Category advertisers benefit from Facebook after this update?
It’s still unclear if Facebook is going to introduce a new way or release some restrictions for Special Ad Category advertisers or not.
That said, the only option is to go broad audience. However, some other options still benefit from the Facebook advertising platform. I will prepare some tips and tactics. Please keep an eye on Digital Boom for more.
Fresh Egypt, a Home Appliance company kicked off its Ramadan campaign with a 1:43-minute Ad promoting the company’s products. Starred by Ruby and Mahmoud El-esseily.
The Ad gained more than 600L views on YouTube and over than 1.2M views on Facebook. Fresh Egypt Ad caught the audience’s attention with its beautiful rhythmic song, saying, “because everything is much better when it’s fresh, make your life fresh and day delightful.”
Some people described it as one of the most beautiful ads this Ramadan, especially Ruby and Mahmoud El-esseily fans. Although it’s a bit different than last year’s ad that was performed by Ruby and Dina El-Sherbiny went viral in a split second.
Watch last Ramadan’s Fresh Ad featuring Ruby and Dina El-Sherbiny.
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