A review of digital advertising in 2022, which has shifted from a Google-Meta duopoly to one where Amazon and potentially Apple are major forces
Reporters who cover the US military are alarmed by a lack of access right now. John Davidson / Australian Financial Review : Why Facebook's disastrous result could just be the start Robert / Transistori : Apple julkisti Tap to Pay -palvelun Tweets: @pandavalue : When is the rumor that $AAPL is looking to acquire $FB going to hit the wire? Harrison Stoneham / @jhstoneham : @PandaValue https://stratechery.com/... Apple could set up an auction-based advertising network that monetized on a per-install basis and run those ads within an Apple-controlled network that is available to third-party apps. It would basically be a better version of Facebook — well, in theory... Michael Kao / @urbankaoboy : All joking aside, this was a good competitive analysis of the muthazucka $FB. https://stratechery.com/... Eric Seufert / @eric_seufert : This point from @benthompson in today's (excellent) Stratechery update is salient. I will extend it with: keyword-targeted storefront ads negate the organic discovery value of a platform and can also facilitate the capture/transfer of brand equity. Some thoughts: (1/X) https://twitter.com/... Tomasz Frontczak / @frontczak : @eric_seufert @benthompson Same script: - affiliate marketers in 2005; - company with biggest mkt cap in 2022 Eric Seufert / @eric_seufert : 2/ When Apple rolled out Apple Search Ads, it introduced an interesting dynamic to the App Store: devs had to either bid on keywords relevant to their apps (including their apps' names!) or surrender the installs generated by those keywords (previously, for free) to competitors Eric Seufert / @eric_seufert : 4/ ASA also (inexplicably) allows for devs to bid on the names of competitors' apps. This commoditizes brand equity; the value that companies built through brand development becomes a commercial fulcrum that can be exploited by competitors — almost a liability. https://twitter.com/... Harrison Stoneham / @jhstoneham : @PandaValue Apple has all of the first party data. They could replace Facebook. Eric Seufert / @eric_seufert : 7/ So not only are these ad systems effectively a participation tax that undermines organic discoverability, they also diminish brand equity and allow it to be captured by competitors. Instead of playing offense, advertisers pay to play defense. Eric Seufert / @eric_seufert : 2/ When Apple rolled out Apple Search Ads, it introduced an interesting dynamic to the App Store: devs had to either bid on keywords relevant to their apps (including their apps' names!) or surrender the installs generated by those keywords (previously, for free) to competitors Ben Savage / @btsavage : “...oftentimes search ads feel like a rake on organic results that would have given you what you were looking for anyways. Facebook-style display advertising, on the other hand, is the foundation upon which an entirely new host of Internet-only businesses are built.” https://twitter.com/... See also Mediagazer
@PandaValue https://stratechery.com/... Apple could set up an auction-based advertising network that monetized on a per-install basis and run those ads within an Apple-controlled network that is available to third-party apps. It would basically be a better version of Facebook — w…
This point from @benthompson in today's (excellent) Stratechery update is salient. I will extend it with: keyword-targeted storefront ads negate the organic discovery value of a platform and can also facilitate the capture/transfer of brand equity. Some thoughts: (1/X) https://tw…
2/ When Apple rolled out Apple Search Ads, it introduced an interesting dynamic to the App Store: devs had to either bid on keywords relevant to their apps (including their apps' names!) or surrender the installs generated by those keywords (previously, for free) to competitors
4/ ASA also (inexplicably) allows for devs to bid on the names of competitors' apps. This commoditizes brand equity; the value that companies built through brand development becomes a commercial fulcrum that can be exploited by competitors — almost a liability. https://twitter.co…
“...oftentimes search ads feel like a rake on organic results that would have given you what you were looking for anyways. Facebook-style display advertising, on the other hand, is the foundation upon which an entirely new host of Internet-only businesses are built.” https://twit…
7/ So not only are these ad systems effectively a participation tax that undermines organic discoverability, they also diminish brand equity and allow it to be captured by competitors. Instead of playing offense, advertisers pay to play defense.
2/ When Apple rolled out Apple Search Ads, it introduced an interesting dynamic to the App Store: devs had to either bid on keywords relevant to their apps (including their apps' names!) or surrender the installs generated by those keywords (previously, for free) to competitors
Traditional marketing funnel no longer exists. This is one of the reason why Facebook products seem so outdated to the youngest generation. https://stratechery.com/... https://twitter.com/...
/1 I think about this excerpt fm “Amazon Unbound” often, given $amzn advertising's breakout success: “[In 2017] Bezos recognized that an increase in Amazon's advertising revenue was masking problems in its core e-commerce business... ecommerce unit profitability was declining” ht…
/3 ... but, back to #1 above, “Amazon's advertising revenue was masking problems in its core e-commerce business [where] unit profitability was declining” ... 2017 > 2022 🤔 $amzn #ads https://twitter.com/...
/2 ... some context on “$amzn advertising's breakout success”: “Amazon Advertising IPO... revealing $9.7B in revenue, a 32% increase yoy... it seems fair to characterize the advertising market as dominated not by a big two but a big three” https://stratechery.com/... #ads https:/…
I read @stratechery every day and this one is a must read. He really exposes how Apple could take over Facebook's business. https://stratechery.com/...
Digital Advertising in 2022 The advertising has shifted from a Google-Facebook duopoly to one where Amazon and potentially Apple are major forces. https://stratechery.com/...