Backslash Week #50 – News of the Week
Week 50 has ended and a lot of interesting things happened throughout this period. Instagram has announced a shopping implementation into Reels, while Reddit is investing into direct competition with TikTok. How about YouTube screening gambling & alcohol-related ads?
Be sure to read on.
1. Instagram Introduces Shopping to Reels
Facebook and Instagram are looking towards diversifying their sales. As such, shopping is highly important to them. The main means of making money for both channels is ads, but shopping provides an opportunity to benefit from sales fees. People are already interested in buying products on Instagram, hence providing them with the opportunity of purchasing directly from the app aids the overall process.
Last week the social media platform announced that a shopping feature is coming to Reels. Wrapping the platform with shopping content appears to be an applicable idea, so to speak. Reels is basically Instagram’s TikTok copycat feature, either as a direct way of competing against the platform, or as a simple expansion to their features. Announced in October, companies & creators will be able to tag items inside Reels, allowing for interactable video ads on the platform with clickable items included. With Reel upgraded too, Insta now has shopping covered across their entire feature portoflio.
What does the future hold?
In the meantime, the aforementioned platform, TikTok is adopting its competition rather than fighitng it, in fact the company is building a partnership with its closest competitor, Snapchat to better integrate shopping into their sites too. With social media sites turning from sole communication channels into sales channels, and shopping inside these apps become a standard online marketing & online shopping will surely see new possibilities and new challenges over the upcoming years.
#lets #all #shop #on #social #media
2. Reddit is Buying Dubmash
Dubmash is a TikTok-like video sharing site, mostly being perceived as a kind of social media platform. At their core, it is a place meant to connect people with the help of videos. It is true, that Reddit has been the master of smaller communities with high engagement ratio, as well as an overall more active user base than other SM platforms. Now, just like other social sites, Reddit is expanding in the video niche as well.
In 2020, Reddit introduced an ad-product trending takeover, invested into brand safety, and has been paying a generally higher attention to the entirety of its marketing funnel.
“Since launching video in 2017, we’ve seen significant growth of video on Reddit (over 2x in 2020 alone) that has been amplified by the community’s creativity.”– a Reddit spokesperson, Reddit
2020 was a year of M&As, IPOs and a road of continous challenges with the devastating effects of COVID-19. TikTok seemingly came out of nowhere, at least compared to “older” SM platforms in the West, such as Facebook or Instagram, however, it did make a name for itself on the global market at an extensive pace. In fact, its direct competitors, other social media sites, have recently (relatively speaking) started copying and mimicing the site’s video sharing capabilities, talk about Instagram Reel, or Snapchat’s investment into expansion.
On the internals.
Reddit, still being a privately traded enterprise, seldom publishes internal figures, however, this month they claimed that in October they have seen an average 52 million DAUs. The platform has also confirmed that they are going on a recruiting drive, looking to raise the number of employed by the company by a vast amount in the upcoming year.
#reddit #communities #people #expansion #lets #take #videos
3. Next step for YouTube: Opt Out the Ad Cycle
The content for YouTube ads, which are focused mostly on user browsing history, can already be altered through the ad settings in Google, although the majority of advertisements are related to content displayed on websites through Google Ads. This leads to ads related to the user’s browsing history appearing on more or less relevant websites. Although its got undoubtable benefits, this has also led to situations where, for example, casino ads start appearing on articles promoting the negative aspects of gambling addiction.
What can we predict about the future?
Although it is not guaranteed that such cases would disappear entirely, Google is quite confident that it could screen out the vast majority of ads falling under this category in the near future. The “project” starts in the U.S. already this year, followed upon by the United Kingdom and the rest of the world. Simply put, users will be able to screen out these kind of ads in the settings on YouTube.
What do the numbers say?
“We have previously urged Google and other tech platforms to provide the option to stop seeing gambling adverts. We welcome this step in the right direction and hope to see it launch in the UK very soon.”– a spokesperson, Betting and Gaming Council
According to data presented back in early 2017 the vast majority of advertising budget, approximately 80% had moved from TV ads to the online platform. This means that three years ago, approx. $1.5 billion was spent on online ads regarding the cause.
#say #no #to #the #ad #circle
4. Final Words
Last week’s news reached out to social media advertising. With the vast majority of social media platforms going for in-app shopping integration, Instagram has announced adding the feature to Reels. Reddit is competing TikTok with video integration, while YouTube is planning to fight against eliminating falsely interpreted re-targeting ads, not false from a technical, but rather an ethical standpoint.
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