Impact Of Social Commerce, Google’s Latest Legal Trouble and TikTok’s New Creative Guideline

Here’s what’s new in this weeks' Digital Digest.

How Social Commerce is Impacting Big Ticket Purchases

Social Commerce is significantly influencing consumers' major purchase decisions, moving beyond its original role as a discovery tool. Customers now use these platforms not only to gather information and find inspiration but also to compare prices and make these higher-value purchases.

With the increasing availability of content and shopping features, people are engaging with social networks for shopping, more than ever. This indicates that social media will continue to shape and influence role the entire consumer journey, from initial discovery to final purchase. The big-ticket category includes a wide range of products, including vacations, furniture, vehicles, luxury items, and high-end consumer electronics.

In recent years, online sales of big-ticket items have steadily risen.  According to Emarketer, here are some trends that we should be aware of: 

  • Booking Holidays: Many platforms now include features that allow users to compare prices and packages directly, making it easier to make informed decisions when booking a holiday. Popular social platforms like Facebook, Instagram, and YouTube can facilitate direct bookings for flights, hotels, and tours. Social media influencers also drive big-ticket travel purchases by promoting holiday destinations, hotel locations, and all-inclusive packages etc.

  • Buying a new car:  Facebook marketplace facilitates the search and purchase of new and used cars. In 2018, Facebook had Over 2 million cars advertised on Its Marketplace (TechReport). However, Facebook marketplace can be a great place to find a bargain, but consumers must also be weary of untrustworthy sellers, and the risks that come with that.

  • Second-hand Luxuries: The global luxury resale market is forecast to increase from 33 billion U.S. dollars in 2021 to more than 47 billion by 2025, according to Statista. Branded clothing is the most searched item on the Facebook Marketplace (TechReport). As a result, dupes and knockoff products may be offered at comparable prices, serving as a warning for buyers to be vigilant.

What does this mean for us? 

It is essential for us to help our clients identify the role of social commerce strategies in marketing their high-end products. A seamlessly executed strategy will help build trust for in consumer for buying expensive items and reduce cart abandonment rates along with incomplete online purchases. We can help build an effective strategy to connect with consumers on various platforms offering social commerce features and engaging users at every step of their buying journey.

 Sources:

https://content-na1.emarketer.com/social-media-growing-influence-big-ticket-purchases

https://www.statista.com/statistics/1300242/uk-respondents-social-media-use-for-car-buying/

https://techreport.com/statistics/finance-marketing/facebook-marketplace-users-statistics/


Google Faces Potential Breakup: How DOJ Ruling Could Reshape Search

The U.S. Department of Justice (DOJ) is addressing Google's search and advertising monopoly through proposed remedies in an antitrust case. While the idea of "breaking up Google" captures headlines, the reality is more complex. The DOJ claims Google has unlawfully maintained its monopoly for over a decade. Their proposed remedies target four main areas:

1. Search Distribution & Revenue Sharing

  • Restricting Google’s exclusive agreements and revenue-sharing deals.

  • Introducing choice screens for users to select default search engines.

2. Data Use

  • Requiring Google to share its search data with competitors.

  • Ensuring privacy concerns are addressed in data sharing.

3. Search Results Generation

  • Allowing websites to opt out of Google's AI training.

  • Ensuring fair access to web content for competitors.

4. Advertising Competition

  • Promoting competition in search advertising.

  • Increasing transparency in ad auctions.

 

Google’s Response

Google opposes these proposals, arguing they could harm innovation and user experience. Key concerns include:

  • Risking user privacy with mandatory data sharing.

  • Disrupting businesses reliant on Google’s products.

  • Decreasing the value of online ads for publishers.

Google plans to appeal, asserting that competition is thriving, especially with AI alternatives.

What it means for Advertisers & Brands

Potential changes could offer:

  • More search engine choices, though cross-device functionality might suffer.

  • Different search experiences as new players enter the market.

  • Enhanced privacy controls, though increased data sharing raises concerns.

  • Lower barriers for new entrants in AI-driven search.

The DOJ’s proposals are preliminary, with detailed remedies expected in the coming months. The case may take years to resolve, with no immediate changes to how Search advertising works currently.

 

Sources:

https://content-na1.emarketer.com/doj-floats-google-breakup-changes-search-advertising

https://nypost.com/2024/10/09/business/doj-may-seek-google-breakup-after-landmark-antitrust-case-victory/

https://www.searchenginejournal.com/google-faces-potential-breakup-how-doj-ruling-could-reshape-search/529726/


TikTok’s New Creative Guidelines For TopView

Digital spend has predicted to rise by +9.7% according to our very own Outlook 2024 market forecast report, with TikTok US reporting significant revenue growth at +38% year-on-year. TikTok continues to update their formats on offer, and more recently have released new creative guidelines for TopView to drive more efficiency from ad spends.  

TopView is a premium ad format that allows brands to showcase their content to the maximum number of users as soon as they open the app. It's essentially the first thing users see when they launch TikTok, making it a prime spot for grabbing attention and driving engagement.

The new creative guidelines for TopView include:

  • Engaging, High-Quality Content: TopView ads must now show ‘real people’ or animations that tell a story. High-quality animations should feel like a preview of something bigger, keeping users interested. Creatives should be visually appealing and designed to blend seamlessly with organic TikTok content.

  •  Logo Placement: Videos with an advertiser's brand logo appearing for more than one second in the first scene will not be allowed and will be rejected. This is based on the grounds that logo appearing within the first few second of the video, especially on static backgrounds, lend to confusion and provide an inauthentic TikTok experience to users.

 These guidelines have been communicated to agency partners and brands, specifically to facilitate enhancement in ad performance by making ad content more engaging and aligned with TikTok's native user experience.

 A complete guide to TikTok’s ad specifications can be found here.

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