MarketingDojo #78: Conversations, Coincidences, and Creepy Ads
Tech that "actively listens", the state of retail media networks, Google's search dominance and more.
Hello everyone,
Welcome to the 78th issue of The Marketing Dojo! Your inbox is crowded, so I appreciate you spending a few minutes with me this week.
Let's face it: we spend more time on Excel spreadsheets and PowerPoint than in the real world. Why not inoculate that time with some creativity?
In the PS section, you will find a book I reread every couple of years to improve my ability to create compelling data visualizations using Excel!
If you are in a tearing hurry, here's a chart chooser that you should always keep handy.
Here's what's on the menu:
🎧 The wrong type of active listening
🤔 Is Retail Media’s growth spurt over?
🏆Google is invincible in search.
⏳Reddit is an overnight success 19 years in the making
And a few more goodies to spice up your marketing life.
If you haven’t already, consider subscribing to the Marketing Dojo.
Active Listening or Active Eavesdropping?
We've all been there: chatting with a friend about your latest running plans, only to be bombarded by running shoe ads moments later. Coincidence? Or is your phone secretly eavesdropping?
Like many marketers, I can't fully explain it, but Meta's advertising engine is undeniably effective—and I suspect part of that has to do with the omnipresent WhatsApp, sitting on over 2 billion devices worldwide.
Last week, Cox Media Group (CMG) casually brushed off privacy concerns while pitching their new advertising strategy, which relies on voice data from smartphones and home devices. Their Active Listening technology combines voice data from conversations with behavioural data from users' online activities, promising advertisers deeper insights into consumer behaviour.
In their pitch deck, CMG boldly name-dropped Google, Amazon, and Facebook as partners that "keep us in the know." Plot twist: Google and Facebook have since severed ties with CMG following the uproar around Active Listening.
As marketers, this leaves us with uncomfortable questions. Serving ads to the right customer at the right time? That’s marketing gold. But snooping on private conversations to get there? That feels ethically wrong.
Neither Google nor Facebook has ever admitted to listening in on customer conversations, but their products are on every phone. If CMG had access to this technology, how many other companies are quietly sitting at my dinner table, waiting to serve me an ad I didn’t order?
Ad Aisle #9: Why Brands Are Shopping for Retail Media
Retail Media Networks (RMNs) are the fastest-growing segment in digital advertising.
Picture this: You're browsing Amazon for a new coffee maker and suddenly see an ad for your favourite coffee brand. That's retail media in action!
RMNs allow brands to advertise directly within retail environments—online, offline, or both. By tapping into a retailer's customer data, brands can serve hyper-targeted ads at the point of purchase, making it a powerful tool in any marketing strategy.
Amazon, the founding father of RMNs, commands over 75% of the market share. But it's not just Walmart, Target and Amazon anymore. Everyone from JP Morgan Chase to Uber and even Marriott hotels are jumping on the bandwagon.
ANA released a report on this hypergrowth industry. Here are some highlights:
Sunny days ahead:
With the rise of e-commerce, omnichannel technologies, and access to first-party data, RMNs are experiencing tailwinds like never before. In the US alone, the RMN industry is projected to grow to $50 billion by 2024—a 26% year-on-year increase. By 2028, 1 out of every three advertising dollars will be spent on RMNs.
A strategic piece of the marketing puzzle:
41% of marketers now view RMNs as a valuable marketing tool, up from 31% last year. RMNs are no longer seen as just a cost of doing business but a strategic part of the marketing mix.
The zero-sum game:
58% of marketers are now investing in five or more RMNs, but here's the catch—90% of them are reallocating budgets from other marketing initiatives. Most of this shift comes from the brand (59%) toward short-term ROI-driven RMN investments.
The ANA report strikes a balanced view on RMNs. As eCommerce thrives, so will RMNs, but challenges remain, such as lack of standardization, difficulty in attributing sales, and timely access to data and analytics.
ChatGPT Who? Google Continues To Dominate Search.
Remember when ChatGPT launched 21 months ago, and everyone was writing Google Search's obituary?
According to Datos, a SEMRush company specializing in consumer search behaviour, the answer is simple: not much has changed. Google remains the big daddy of search.
But like they say, the devils are in the details; here are a few points to ponder:
Google's dominance in search continues:
Google's combined share of desktop and mobile searches hasn't shifted much from last year. As of May 2024, Google's search volume is:
4.5x Amazon's search volume
25x Facebook's search volume
290x Perplexity's search volume
Google not only hegemonizes search volume but also leads in searches per user.
Traditional & AI-search can co-exist: Interestingly, 16.65% of the cohort Datos studied uses LLM-based search models like ChatGPT, Claude, etc., alongside traditional search engines. Yet, there's been no significant drop in their Google search activity.
Social search is still not a thing: Remember when a Google exec claimed 40% of Gen Z started their search on TikTok?
Datos' data doesn't quite agree. Only 10% of Tiktok's user base uses search on the platform.
With Google still dominating traditional search and YouTube holding the crown in social search, the obituary for Google's search monopoly may have been written too soon. AI might be shaking things up, but Google's stranglehold on search is far from over.
Reddit Earned The Internet's Attention.
It's not what you know but who you know.
If you are wondering why I am giving you unsolicited non-marketing advice - Here's why.
A couple of weeks ago, I wrote about Reddit's increasing visibility in Google search results. The impact of that partnership has been swift and significant.
According to eMarketer's latest data, Reddit has seen the most considerable growth in the number of minutes spent on the platform in the US.
With internet usage seemingly reaching its ceiling, Reddit's double-digit growth is a zero-sum game.
As people spend more time on Reddit, it's only a matter of time before we see a noticeable decline in time spent on other parts of the internet.
Keep an eye out for more data, and in the meantime, read the tea leaves.
Short Stuff:
Roblox will allow physical goods to be sold via Shopify integration (The social commerce for Gen Alpha).
Brazil’s X ban drives more people to sign up for Bluesky (The zero-sum game of social media).
More bad news for X as 26% of advertisers plan to cut spending (The worst investment ever).
P.S: A book recommendation.
Some years ago, I chanced upon this book from Stefanie Evergreen on making better charts - I am hooked.
What started as a casual read turned into a full-blown obsession. I've devoured the book multiple times, signed up for her on-demand course, and even gifted copies to fellow data nerds.
The overall structure of her book is simple - Each chapter tackles a specific business scenario. Need to show change over time? There's a chapter for that. Comparing stuff? Yep, covered.
Her book is a step-by-step recipe for cooking charts that would make The Economist jealous. And the best part? You can do it all in Excel. No fancy software required!
When I catch myself in a bar chart rut (we've all been there), it's my cue to dust off Evergreen's book and spice things up. Give it a shot if you live in Excel and PPTs, too.
Informative, engaging and thought - provoking - This newsletter was all I needed after a break from work. I look forward to each new edition. Love the great work you do by compiling all that matters and more in the world of marketing. Thankyou :)
A lot of goodness in today's post...
- On Active Eavesdropping, the concept of consent and then transparent education around what and where is one critical building block. Even then, these devices have entered to such depths of our lives that the risk of misuse or unintended outcomes is extremly high! We're entering a scary world.
- On RMN, is this RMN a new term for platform ads? Amazon ads can push your products in the listing, and on diff kind of advt properties in user journey.
- On Search; For research, I see myself relying more on Perplexity (than ChatGPT) for sure. Google happens due to habit but every time I see the result I am pushed more towards Perplexity. For very transactional/informational search, google remains the first point of search.
- On Reddit; It always suffered from discovery for the non-users. With google partnership, this problem can get solved to a good extent.
- Book reco: noted :)