Digital Digest 26.07.24
Google Abandons Cookie Deprecation
Earlier this week, Google announced that they are scrapping the phasing out of 3rd Party Cookies. Instead of eliminating cookies, Google will introduce a new user experience in Chrome which will enable users to make choices on their privacy settings.
This highly discussed announcement will continue to gather a lot of industry press, coverage and commentary in the days and weeks ahead.
However, what does this mean for advertisers? We believe that this news should not distract advertisers from the positive steps and progress they have made in preparation for cookie deprecation.
Why?
Although Chrome holds the lion share of browser usage in Ireland, Mozilla and Firefox already block 3rd party cookies.
Consumers are much more informed when it comes to their data and how it is used. Of course, there is a large cohort of those who will accept cookies but as consumers become more aware of their own data, we should prepare for a large drop in cookie opt in on Chrome.
Cookie deprecation pushed us, as an industry, to rethink measurement and have a more sophisticated and scientific approach to how and what we measure. Relying on cookie-based measurement has too much bias and assumptions – leading to double counting and a distorted view of performance.
Overall, advertisers should continue a mature, scientific approach to marketing and data driven measurement and will reap the rewards of this journey in the future.
YouTube’s Improved Approach For Content Creation
YouTube’s Shorts format is trying to compete with TikTok and Instagram Reels, with its bite-sized short form videos. And with new features, it has made the YouTube landscape even more convenient for creators.
In last week's Digital Digest, we shared the AI tools YouTube had launched, since then, YouTube has also introduced new features to Shorts. This improvement of their tools is a bid to encourage creation of more content in the platform. They claim that creators can now enjoy improved editing tools, including layout adjustment, split-screen effects and making it easier to reproduce long form content in short videos. These features simplify the creative process, allowing creators to focus on storytelling. Additionally, a promise to enhance analytics will also aim to help creators understand viewer engagement and fine-tune their content strategy.
These updates to YouTube aim to enhance the user experience, and benefit advertisers in turn. Features like the Shorts feed and personalised recommendations increase user engagement, keeping viewers on the platform longer.
This increased engagement means more opportunities for ads to be seen, boosting the potential for successful advertising campaigns. For the right campaigns, the Shorts format can build cost-effective reach, but the debate is still on whether this format should be a part of social or VOD strategy on a media plan – we believe that the answer to that debate is individual to each brand and campaign as ultimately it can play in both environments.
Sources: YouTube Adds New Creative Options for Shorts: Expanding Creativity and Engagement (pc-tablet.com)
Here's What's New On Netflix Pricing
In a series of announcements, Netflix shares its plan to phase out its lowest prices ad-free subscription in UK and Ireland, following similar announcements for other markets. Users can expect to see prices rise in the next 30 days. Would this mean a loss of subscribers and what does this hold for in store for advertisers?
Here's a breakdown of each Netflix subscription and their new price point:
Netflix’s basic plan is increasing from €7.99 to €8.99
Netflix's standard package increases from €12.99 to €14.99
Netflix's premium subscription plan increases from €17.99 to €20.99
An ad supported subscription has not yet been rolled out in Ireland but according to USA Today, Netflix, said the ‘with ad’ plan's "attractiveness" led to a 34% increase in ad-supported subscriptions from the prior quarter after launch.
While 10% of Netflix users have signed up to the model globally, if this trend was to be followed in Ireland, Netflix would probably be the sixth or seventh largest Video (including TV) platform in Ireland. If more people subscribe to this model over the coming years, its significance on media plans will change. For now, the SVOD players impact on marketing campaigns is small, but certainly growing.
Here's our take on what this means for Irish advertising.
While the price increase will drive out a few users from Netflix, we believe that these users will be back to the platform via the ad-supported model. Other global markets have seen a rise in subscriber numbers after the model was introduced, partly due to the password sharing crack down and partly because of the users coming back for the content they love. Titles like Bridgerton, Baby Reindeer, etc. have contributed hugely towards this.
Netflix are also planning to introduce monthly video game releases including one based on "Emily in Paris," later this month. And coming later this year, a multiplayer game based on "Squid Game." This might further entice users to come back to Netflix, even if this is through the ad funded model.
Hence, when Netflix introduces this pricing model in Ireland, we can expect Netflix to become an important component to our video planning along with other streamers. This year, Core became the first agency in Ireland to run ads on all the big streamers, and we look forward to executing these campaigns in the Republic of Ireland in the future.
Source:
https://entertainment.ie/on-demand/on-demand-news/irish-netflix-prices-increase-515557/
https://eu.usatoday.com/story/money/investing/2024/07/18/netflix-price-plans-ad-free/74460681007/
https://www.adworld.ie/2024/06/07/opinion-what-advertisers-can-expect-from-the-streamers/
