I got long winded in today’s Rabbbits Weeekly newsletter…again. I’m putting the rest here for the curious minds who don’t want to miss out.
You can read the first part of I Said a Tik Tok (The Tikie to the Tikie, To the Tik, Tik Tok, and you don’t stop, a Tok it.) on Substack.
Now, onto the rest.
Rewind the tape and play it again, The Fed has raised interest rates again by .75 percentage points. The ceiling for these raises will either be a recession or hitting their pre-stated max rate. If the former, they’ll probably start cutting to combat that. The refreshing change here is that they actually have room to drop the rate if they need to.
So…are we headed for a recession? Yes. I mean, no. I mean, probably? Maybe? Indicators are all over the place. Sure, the UK has some shit going on. But small businesses are hiring. China is bouncing back. And search advertising is doing just fine, thank you very much. But the ad market overall is shrinking. This has all the makings of an unequally distributed recession (says me, your friendly neighborhood non-economist).
Google and Meta are still the dukes of digital when it comes to ad spend, but they may no longer be the darlings as the top 5 competitors (Amazon, Microsoft, TikTok, Snapchat, and Apple) have carved out almost 25% of the dollar pie for themselves.
More ads in more places: Roblox. 3D ads are coming soon to this metaverse.
More ads in the same places: YouTube recently tested up to 10 unskippable ads per ad spot.
I've spent almost $1 billion advertising on FB since '08 and this is something I see advertisers getting wrong all the time:— Barry Hott ☄️ (@binghott) January 3, 2022
🛑 Stop focusing on FB CPMs (and CPCs)! They don't matter that much.
❌ Turning off ads due to high CPCs or CPMs can be turning off top performers.
Disclaimer and TL;DR: this only applies if you’re focusing on conversions and it’s because there are so many things we can’t control that factor into costs that it’s pointless to freak out about them when you can focus on conversions, CPAs, revenue, etc.
The thread also calls out the Facebook Breakdown Effect, which is the belief that the systems shift money into underperforming segments of your campaigns. The help doc has a nice illustration that also functions as a primer on algorithmic optimization, just looking at the data in ads manager makes it look like the more expensive placement for more money. But the algorithm identified a pattern before the human observable data reflected it and shifted funds to achieve the best results in the long run. When it comes to algorithmic advertising you kind of just have to go all in and trust in the system.
Retailers and brands working together to sell more stuff, that’s the vision behind Facebook’s Collaborative Ads. It’s purely benevolent and not at all a desperate attempt to find revenue literally anywhere. Really, it seems like ecommerce advertising for brands that don’t have ecomm stores.
Advertising on LinkedIn? Experimenting with InMail ads (or whatever they call them now)? Keep these tips in mind:
- Keep it under 100 words, ideally under 50
- Keep it simple, aim for a 5th grade reading level (clearly something I need to take into consideration)
- Make it personal, at least as much as you can
- Focus on the offer, not you / the brand. Try to invite engagement
- Ask questions
Grocery chain Kroger is expanding its retail media offering into video and Connected TV. This part offers some helpful clarification.
The self-service platform lets advertisers applying first-party retail sales data – information Kroger collects from customers and owns – to programmatic campaigns within their preferred ad-buying platform.
You might want to focus your ad messaging on your product’s benefits this holiday season, instead of relying on solely offers and promotions.
Marketing leaders: “Analytics are important.” Also marketing leaders: “Let’s fire the analysts.” (Avinash should have a lot to say about this.)
Cloudflare is getting into the mobile security game with an eSIM offering. If that means nothing to you, you’re probably fine. If it means something, it’s probably already piqued your interest and you clicked before you got here and you aren’t even reading this anymore. Why am I still typing?
Alternates & Assorteds
There’s just something special about neon.
Read Part 1
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