Many media companies and analysts say marketing spending is on the rise, which could mean a change in the way businesses reach customers.
E-commerce retailers and brands rely on advertising that focuses on consumer behavior to drive customer acquisition.
This advertising often takes the form of Facebook and Instagram advertising. Meta’s advertising channel has become so powerful that some marketers have invested their entire budget there. And why not? Marketing teams should double down on channels that deliver unique advertising ROI. This is about the Meta Advertising platform.
However, changes in Apple’s software could lead to a sea change in digital marketing.
Apple is destroying Facebook
When it allowed iPhone users in May 2021 to opt out of revealing the apps they visit, Apple broke Meta’s behavioral tracking capabilities. “Crushed” is the word Nathan Baugh, a freelance writer, used in an August 18, 2022 tweet describing Apple’s decision to increase advertising revenue.
Baugh wrote, “Apple is more than $3.5 billion in social media revenue every year, but it has destroyed FB, Snap, and thousands of small businesses in the process. What? By reporting that big tech is threatening consumer privacy.
Baugh’s tweet eventually leads you to the growing financial story, “Apple’s diabolical plan to control media.” The article details how Apple is entering the media space.
Perhaps Apple’s collective management cares about the privacy of individuals.
As a result, his body movements may be indifferent. Whatever the reason, Meta and other platforms, such as Snapchat, have seen a decline in revenue, which may indicate they are not good enough.
On August 16, 2022, Shopify announced Collabs, a two-way marketing platform to connect e-commerce brands with social media influencers.
Affiliates can earn money by promoting products for e-commerce businesses using Shopify. Businesses have access to new marketing channels.
Affiliates help Shopify enter the creative space. Shopify is almost always looking for ways to increase its own revenue and shareholder value.
There is no better example in the e-commerce industry of emerging media channels than Amazon. In August 2022, Amazon’s advertising revenue will exceed $31 billion, making it the third largest digital advertising system, behind Google and Meta.
Amazon’s primary support product is social media marketing. It is also another social media and Google search for e-commerce models or, for that matter, the consumer package in general.
The February 2022 CMO survey (in collaboration with Duke University and Deloitte) and several major media companies all predicted growth in marketing spending in 2022 and 2023.
On the surface, this is not new. Marketing investment has been increasing for decades. But some of that growth can be attributed to Apple’s iOS 14 leading to the death of tracking brands and the need to find alternatives for behavioral purposes.
The CMO survey takes place twice a year and polls about 2,500 customers in US for-profit companies. Respondents in February 2022 predicted growth in 2022 and 2023, showing the highest sustained market prices during the year.
If it is only the growth of digital channels, we can think that this is not new. But even traditional media — newspapers, radio, television, instant messaging — is seeing growth, according to the survey. Some of them haven’t seen an increase in decades.
You could say this is a return to pre-Covid levels rather than real growth, but that doesn’t explain the interest in traditional media. However, what can explain the growth is the target for dysfunctional behavior.