Not everything is rosy in the world of digital advertising. P&G
announced last week it has cut more than 100$ Million (equivalent to INR 635
crores). It cited 3 primary reasons for this
·
Ads were simply ineffective
·
Ads were being served to bots
·
Placement of the advertisements
My uninformed guess would be that the primary advertisement
cuts would have happened in
- · Branding campaigns that focused on reach as the primary performance metric
- · Non-Google & Non-Facebook advertisements
And multiple machine learning algorithms that is optimizing
the campaigns in Google & Facebook networks serves as a very effective moat
against any new player entering the space. And Google & Facebook are
expected to further deepen their moat – by artificial intelligence and machine
learning. My bet is that in a 3-4 year
time frame, >80% of the online advertising spends would be done through
Google & Facebook platforms only.
But as marketers, should we be worried about Google &
Facebook Advertising Dominance? We all remember how Facebook killed the organic
traffic for brands inside its closed network. The day Google also faces similar
challenges with revenue creation – we can expect it to do the same. If the
history shares any trends, a category that was dominated by one or two players –
will result in poor services and higher costs for the customers. Interesting Times for a Digital Marketer.
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