MarketingDojo#21: The 3% Difference. 🆕
Google's privacy sandbox test, search ad benchmarks & 3% creativity rule.
Hello Everyone,
When I began writing Marketing Dojo, my greatest concern was my ability to write regularly. Now that the newsletter is entering its 21st issue, I'm pleasantly surprised- Showing up weekly has been one of the most consistent things I've done in a long time.
This week we will cover :
🍪Google's baby steps to a cookie-less World
💥The 3% Innovation rule
🎖️Level-Up With Search Ad Benchmarks
♾️The Age Of Endless Creatives Is Here
And More.
Before we start, a quick note- I'll be taking a break next week for the first time this year. I'll be going to Taiwan and won't publish an edition of MarketingDojo. It's going to feel strange.
But I'll be back soon, refreshed and with more news from the marketing world.
If you haven’t subscribed, sign up today to avoid missing the next issue.
Will the cookie finally crumble?
For a long time, cookie-enabled third-party data has served us ads that digitally stalk us. However, Google is now taking steps to implement a new industry standard for privacy. In early 2024, Google will start migrating 1% of Chrome users to a Privacy Sandbox and disabling third-party cookies for them.
So how will the privacy sandbox work?
Instead of using third-party cookies to track users across the web, the Privacy Sandbox uses a new Federated Learning of Cohorts (FLoC) technology.
FLoC groups users into "cohorts" based on browsing behaviour rather than tracking individual users.
Advertisers can then target ads to these cohorts rather than individual users, which helps protect user privacy while still allowing for effective advertising.
Initially, Google planned to phase out cookies by July 2023 - a plan that had to be postponed due to anti-trust & readiness concerns. But Apple's been gaining an edge over Google with its strong privacy features.
Google's Chrome is the most popular browser, with 2.65 Bn to 3.2 Bn users per different sources. Migration of 1% population will be a significant test of the robustness of the much-anticipated privacy controls.
How Do Your Search Ads Measure Up? Find Out with These Benchmarks
Whenever I find robust benchmarks, I bookmark them.
Did the marketing campaign do well? Or was it just a so-so performance? Only good benchmarks can tell.
Wordstream created benchmarks after analysing 17,253 US-based search advertising campaigns from April 1, 2022, to March 31, 2023, across 23 industries. The numbers are based on data from Google Ads (80%) and Microsoft Ads (20%).
A few things to note from
On average, the cost per lead has shot by 20% from 2022. Inflation is everywhere, and those leads have become expensive too.
Click thru rates have improved, signalling that the search ads are getting more relevant.
91% of the industries saw an increase in the cost per lead. Not surprisingly, the leads for beauty and personal care got cheaper - Recession-like conditions generally lead to the Lipstick effect.
The 3% Rule For Creativity.
Imagine you are walking through the woods and you come across a fork in the path. One path is well-worn and familiar, while the other is overgrown and unfamiliar.
If you are neophilic, you will be drawn to the unfamiliar path. You will be curious to see where it leads and what you will find there. You may be slightly scared, but you will be excited to explore.
If you are neophobic, you will be drawn to the familiar path. You will be comfortable with what you know and afraid of what you don't know. You may be a little bit bored, but you will be safe.
Most people are somewhere in between neophilia and neophobia. We are drawn to new experiences but find comfort in what we already know.
In 1985, the Coca-Cola Company introduced New Coke, a reformulated soft drink meant to replace its flagship drink and rejuvenate the brand. However, after just 77 days, the company had to backtrack and reintroduce the classic Coke due to mounting consumer backlash. Die-hard Coke fans couldn't digest the enormous change all at once.
But any brand that fails to innovate risks becoming irrelevant or being overtaken by a more agile competitor. This hits home because I started my career at Nokia!
The question is, how can you improve and innovate without alienating your loyal customers?
One approach is the 3% innovation rule, introduced by fashion designer Virgil Abloh. This concept suggests that just 3% of creativity is required to innovate an existing project and create something new. The Off-White Air Jordan 1, designed by Abloh, is a prime example of this approach and is now one of the most sought-after sneakers.
Apple's iPhone upgrades are often subtle, with only minor changes from one version to the next. If you compare today's iPhone with one from two years ago, you'll notice some differences but still find the product familiar.
Apple has perfectly balanced the comfort of the known and the allure of the new, just like Virgil Abloh's designs.
Low Conversion Rates? Spruce Up Your Landing Pages.
A well-designed landing page with a clear, relevant message can drastically reduce the acquisition cost. This website provides breakdowns on SAAS landing pages—inspiration to improve your landing pages all in one place.
Some other swipe files for inspirations for ads, emailers etc here:
Swipe File: Classic to modern ads with amazing copywriting.
Really good emails: Email templates for a vast range of categories
Growth design case studies: If you are looking to create growth loops
The Future of Ad Creation: Generative AI Will ShakeUp Advertising.
Picture hiring a Masterchef who can take just a few ingredients from your refrigerator and create a wide array of dishes for a big party at your home. With so many options, everyone can enjoy their favourite dish.
Marketers are getting closer to this level of magical versatility in their creatives.
The generative AI use case for creating ads is heating up.
Last week, Meta introduced its AI sandbox that can create text, background and product image variations on the fly.
As per some leaks, Google is all set to unveil its generative AI-backed Ad creation tools.
Amazon is set to bolster its already successful $38 billion ad business by implementing an AI-based solution to assist advertisers in creating static and video ads on its platform.
Utilizing AI-generated creatives could significantly decrease the cost of personalization and ad creation. While larger brands may be cautious about adopting these capabilities due to strict brand guidelines and concerns about brand safety, smaller brands could benefit greatly from the unlimited options provided by these cutting-edge technologies.
How do you think the ad creation process will be affected by Generative AI?
Short Stuff
Youtube is bringing unskippable 30-second ads on connected TV (The “new TV” is the same as the old).
Just six months after its launch, Netflix’s Ad-supported tier has nearly five million global monthly active users. (Monetizing attention).
Samsung has backed down from replacing Google Search on its phones with Microsoft’s Bing. (Bing’s big miss).
That’s a wrap for this week. I hope you enjoyed this week’s issue. I would appreciate a heart, a comment or a like - It helps others discover the newsletter via the Substack network.
See you in your inbox after a week’s break.
Regards,
Garima Mamgain
P.S: A podcast recommendation. I usually never miss a single episode of The Hidden Brain Podcast. This podcast is focussed on incentives - how incentives can help achieve goals & often they backfire. Give it a listen if you like the idea of psychology of incentives.
