July 7, 2020
COVID-19 has been rapidly driving several key trends in consumer behavior in marketing – one that focuses on online purchases where technology giants are shifting their investment funds in the hope of driving their growth on the other side.
Early this spring Pinterest Introduction of new possibilities for shopping via pins, pin boards and directly from search results. More recently Facebook and Instagram Introduction of "shops" in which business profiles are essentially converted into online storefronts and shopping tags are tested in captions. Separately, Snapchat launched an expansion of dynamic ads for ecommerce merchants in June.
Build a stronger e-commerce presence through video ads
Looking ahead, Youtube unveiled several updates to its platform to help marketers benefit from the growing trends in e-commerce and online video. First and foremost, a new ad format called "Direct Response" allows brands to add searchable product images to their videos to make them more actionable and buyable.
"With the reopening of businesses, they have the ability to use video to control both online and offline actions on YouTube. 70 percent of users say they bought a brand because they saw it on our platform," explained the parent company of YouTube, Google in the official announcement.
As a result of using the new format in a trial period prior to the 2020 spring campaign, Aerie, American Eagle's underwear company, reported 9 times higher sales than the traditional media stack. The company also reported a 25 percent higher return on advertising spend compared to 2019.
To use the ad format, retailers must synchronize their Google Merchant Center feed with their video ads as announced. Ultimately, they can also highlight certain products more with an extended call-to-action button.
A less expensive way to increase conversion rates
Limited marketing budgets and other important resources have put a lot of strain on marketers in the past few months, but that hasn't stopped them from looking for simpler and cheaper ways to increase reach and transform demand. As part of the update, YouTube announced Video campaigns This will automatically distribute video ads to YouTube’s homefeed, watch pages, and Google’s video partners within a single campaign.
"In the past few months Mos saw 30 percent More purchases for their service at a third of the cost of their previous YouTube benchmarks, ”said Google about the startup, which is designed to help students find college funding to avoid high debt. As a newer company, the goal was to test the campaigns to see how quickly they could scale.
Add transparency about a consumer's purchase path
In addition to building an e-commerce presence, YouTube is aware of the fact that in the digital age, the process of tracking the exact origins of a conversion and monitoring a consumer's complete purchase path is not always clear. To fix this, brands can directly evaluate their efforts on YouTube using their Google Ads attribution reports. This has two main advantages, including a better understanding of how ad budgets are allocated and the new tools to consider, and improved transparency of your Google ad campaigns.
Overall, it's not just about creating a level playing field for new formats like video, but most of all about helping marketers save valuable time to face broader strategic initiatives such as targeting creative people to get the right message for a specific audience .
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