Marketing News 003 - Market confidence, Activision acquisition, TikTok ads, naughty influencers & Google abandons Floc.
Marketing News 003 – Market confidence, Activision acquisition, TikTok ads, naughty influencers & Google abandons Floc.
Martin Henley 0:04
Hello there, my name is Martin Henley, this is The Effective Marketing Company YouTube channel, and this is episode number three of Effective Marketing News. This was an idea that I came up with when Ionut told me in the Talk Marketing episode, he spends about an hour and a half a day, looking at the news, keeping up with trends, etc, etc, it occurred to me that maybe marketers all over the world are doing a similar thing. I thought, if we were to do this for you, it might save you some time, some energy, and you could put that time and energy into being more effective with your marketing. So we have with us the brilliant, the one to watch, I would argue one to watch here on this YouTube channel, a CMO to watch it is the brilliant, the amazing, the … we have to make him feel amazing, it is Ionut Danifeld. How are you brother?
Ionut Danifeld 0:55
Good brother. Good morning, everyone, you make me feel that I paid you to say all of these amazing things, or people are to say that I paid you.
Martin Henley 1:06
Ah, did you not get the invoice?
Ionut Danifeld 1:11
I got it. It went to spam, so I decided to ignore it.
Martin Henley 1:17
Okay, good. So maybe you’re on the CMO’s to watch for not paying their invoices. Maybe that’s the watch list that you are on?
Ionut Danifeld 1:27
The watchdog list.
Martin Henley 1:29
Okay. So tell me Ionut what brilliance, because we know you like to boast a little bit right at the very beginning , what brilliance have you achieved in the last two weeks?
Ionut Danifeld 1:39
In the last two weeks, a tough question, we are …. this 2022 is going to be a little bit amazing, I would say a turning point in the company that I’m working for. For those that we didn’t watch before, I’m working for a company called Trapo in the automotive space, one of the biggest in Southeast Asia when we’re talking about car accessories. We are planning an interesting journey from the perspective of I will say, coming up with products that are more services and data driven. So I’m not going to reveal too much now. So that’s first achievement in the last two weeks. Another one is that I’m going to speak to a conference of APEC conference in February on the 22nd of February.
Martin Henley 2:31
Fantastic and for those who don’t know, we’re also expecting a little Ionut in March.
Ionut Danifeld 2:41
Wow, it’s public now. Yes. On the 16th.
Martin Henley 2:43
Public now? Yes. Well, it’s only two months away, dude. So people need to know. So don’t need. Okay, well, people 72 people who might see this will now know.
Ionut Danifeld 2:52
72 people but valuable 72 people. I’m looking for over when we’re going to look back in time and is going to be 72 million, who are going to watch of this.
Unknown Speaker 3:01
Okay, 72 million might be a stretch, I think if we get to 7 million or 700,000, I’ll be delighted. Interestingly, we did also achieve that you and I, we went from I think 43 In the first episode to something like 75 in the second. So we’re at almost 100% growth into episodes. So maybe we can do that again. What you need to do is share this in the first two hours of it going live so that we get some early views and that might work with our algorithm. That’s your responsibility if you’re interested to get to 72 million people.
Ionut Danifeld 3:34
Martin Henley 3:35
Okay, good. So, the format, the fledgling format, is we both come with three news stories. I was sweating over this. I’ve got no response to this sweaty photo that I sent you yesterday, but I’ve been sweating over this. Yesterday you said you hadn’t found anything interesting. Have you managed to find something interesting?
Ionut Danifeld 3:54
I managed to find something I would argue that it’s interesting or not, but I find it interesting.
Martin Henley 4:01
Okay, good. Well, I think if you find it interesting, then it’s probably interesting. I also managed to find three stories. So what have you got for us the Ionut this week?
What’s in the marketing news?
Ionut Danifeld 4:09
Yeah, so my three stories are the news regarding Microsoft acquiring Activision Blizzard.
Martin Henley 4:20
Okay, the game thing,
Ionut Danifeld 4:23
Which is the biggest acquisition so far in 2022. Quite interesting. The other one is our Ad Watchdog escalate sanction against rule breaking by influencers, meaning like companies can face some similar actions from influencers are doing. I don’t want to reveal so much. I’m going to do it when it comes. Okay. The one I left the one that really intrigued me the most Google abandoning Floc introducing topic API To replace tracking cookies by 2023 and this one is kind of like fucking major.
Martin Henley 5:06
Okay, good. So I think there might be some crossover. My three stories, there always are. So I want to talk about Marketing Week of just reported the state of the market. So the market as a whole global market, market confidence, all of that sort of stuff. So I’m interested to talk about that. I’m interested to talk about TikTok partnering with Zephyr to offer increased assurance on safe ad placement. So I want to have kind of a conversation about this. There’s they have advertising on social media platforms. Tick tock we know is the most popular platform now in the world, most popular websites. Then the third one where I think there’s this crossover is Google and the cookies things. So German publishers oppose Google plan to phase out third party cookies and then in the last 24 hours only Google changes course on cookies plan. So is that the same story? I think it might be?
Ionut Danifeld 5:59
Yeah, it’s exactly the same story. Okay, good.
Martin Henley 6:03
All right. So we’ve only got five this week. Well, that’s all right. This is the game that we play, isn’t it? One week we’re going to is going to be three exactly the same. Okay, so where do we start? I think maybe we should start with the state of the market with my thing. Because, you know, the market is where we all play. What do you think?
Ionut Danifeld 6:25
Yeah lets do it.
Martin Henley 6:30
With slightly more enthusiasm? What have I got? because I’ve been trying to make this better but you’re not there.
Ionut Danifeld 6:42
You should pay for your tools.
Martin Henley 6:44
I do pay for this tool, man, this tool cost me $40 a month. Alright, so that hasn’t worked. So we’re gonna have to go back to just us and I will read you what’s been going on that will be working in two weeks time. In two weeks time, we will be streaming this because I’ll be ready I think. Right.
Market confidence or otherwise.
Martin Henley 7:02
So the story as reported in Marketing Week, “Confidence takes a knock as consumers brace for cost of living squeeze. rising inflation and energy price increases have dampened consumers confidence in January, but marketers are warned to hold firm.” So I thought that was interesting because they’re saying warned to hold firm, not encouraged to hold firm, warned, you’d better hold firm. So what are they saying?
Martin Henley 7:29
While the easing of COVID restrictions has come as a welcome relief, consumers are still not feeling confident about money as fears over certain inflation, rocketing fuel bills, and the prospect of interest rates to rise take hold. As a result GFk’s latest consumer confidence barometer shows a four point drop to the overall index score for January down to minus 19. With all five measures sliding down into negative territory. Inflation racing ahead at 5.4% and nearly at a 30 year high. Along with the fact people are bracing for gas electricity price hikes in April. It’s no surprise consumer confidence has taken a knock this month. So that’s what they’re saying. What I’m interested to know, because we’re both in Asia, is if it is this is this … how are you feeling about the state of the economy, the state of the market as a whole? That’s what I’m interested to know.
Ionut Danifeld 8:23
I’m going to reply to you with one of my favourite subjects or one of your favourite subjects. In the last week, the crypto market was actually crashed. I was reading $1.48 trillion, the entire crypto market crashed. I know that crypto you’re a huge fan of crypto, you sense the sarcasm in my tone of voice?
Martin Henley 8:48
I’m sensing the sarcasm, if you have enough conversations with English people, you might get to be good at sarcasm. You’re close, man, you’re close. So I know it’s one of your favourite subjects. I know that you are invested in cryptocurrencies. So okay, so what bearing does it have. I think some of these things are a distraction. We spoke about this two weeks ago but cryptocurrency clearly is a very real and valid thing. So but what does that tell you about the state of the market? You see? That’s interesting, because I was, six weeks ago, thinking about putting some money into crypto because of what’s going on in the markets, in the traditional currencies, the dollar, the pound, etc. So, I don’t know, what does it mean?
Ionut Danifeld 9:39
The way that I’m seeing the entire markets that are all connected, the crypto market is highly connected with the stock market. The stock market is highly connected with the entire end of the bill for investors when they need to liquidate stocks that are really volatile and high risk.
Martin Henley 10:02
Ionut Danifeld 10:02
It happened I think, around the 20th January, if I’m not mistaken, and is going to continue to move for the entire month of January, or whatever, it remains falling for the month of January. The entire market is also really connected with the situation, what is happening with Ukraine, Russia and USA, and so on. I think, in my opinion, 2022 is going to be a really interesting year for the financial market, taking into consideration that the pandemic, I wouldn’t say that is over, but the measures are quite, the restrictions are quite lifted. Travelling is resuming, but it’s going to send a little bit of a shockwave. The USA is not printing money, like they used to do in 2020, if I’m not mistaken, maybe I’m going to say something stupid. In the beginning of the pandemic, they were basically printing money, and Trump was giving all of these bonds of $2,000. From a perspective of, I was reading actually some really interesting news different economists were saying that 2022 is possible for a shock wave in the entire market. So yeah, I’m not surprised to be honest, I’m I’m totally not surprised, taking into consideration the political and financial situation and so on.
Martin Henley 11:54
Yeah, the political, the political situation is really weird. Like they’ve ended restrictions, haven’t they in the UK and Ireland in the last week, so that’s kind of interesting, but not I don’t think because the situation’s changed. I think it’s because the government in the UK have had an issue with the way they’ve been behaving a political issue. I think it’s more to do with that than anything else. I heard somewhere that they say that when this has happened, historically, end of pandemics are typically met with periods of civil unrest, which obviously isn’t going to be good for the market. What’s going on in Australia is kind of crazy. So the pandemic coming to an end? You know, they are mandating this in Austria, I understand from the first of February, mandating the vaccine again in Germany very shortly. So it’s Yeah, far from over, I think. It feels like lots of places are in different places with it, you know, so. So that’s a big question mark. Politically, there’s a question mark, we really don’t want there to be a war right in the middle of Europe, and that would be devastating.
Martin Henley 13:00
Close to Romania, my home country.
Martin Henley 13:01
Yes, exactly. So we definitely don’t, I mean, we definitely don’t want a war between the United States and Russia. That would be insane. That would be insane. So a lot of uncertainty. What’s interesting to me then is how, why is this knocked on to crypto because I would have thought, if there was all this uncertainty in the real world, all this hyperinflation that we’re seeing in the States, and in the UK, we’re feeling a little bit down here in Southeast Asia, I think. Why are people moving away from crypto I would have I would have thought that it would have gone the other way.
Ionut Danifeld 13:40
If you asked me, nobody knows anything, but my the general, the general consensus when I was reading about why basically crypto market was crashing is one based on what I said to you before is that huge whale investor, institutional money, are basically liquidating high risk assets and high risk assets equal to crypto. Second, second of all, is the political is influencing the entire situation. We didn’t so much new institutional money floating in, into the market. NFT market was definitely one of the, let’s say, can I call it one of the reasons why the market was basically growing for the past six months, but the hype kind of like stabilised and at the end of the day it’s a really volatile market home. It doesn’t matter how you’re taking it, but crypto is still going to be a volatile market.
Martin Henley 14:56
Okay. So what they’re saying here is we don’t have an economy where people feel they can splurge that’s for sure. The Omicron COVID wave may have turned out to be less severe than the peak we saw as we went from 2020 to 2021 but now consumers have fresh worries on their minds in the form of the squeeze on household costs. So this is particular to your situation, because you are selling to consumers. These aren’t what’s the word? These aren’t? I don’t want to say, well, they’re not necessary purchases. What are these? These are pleasure purchases, these are car accessories.
Ionut Danifeld 15:37
Yeah, absolutely. I mean, it’s not a necessary purchase. It’s normal. It’s absolutely normal. I mean, like, what was the risk that we had in the company for the last two years, it’s basically a product, it’s not the first one that you think to buy in a pandemic. Especially, for example, here in Malaysia, interesting fact is about 97% of the economy is small medium enterprises. Yeah, right. And there were a lot of businesses that basically went bankrupt because of the lockdown. Sorry, what was your question again?
Martin Henley 16:17
The question was like, basically, your market is unnecessary purchase, pleasure purchases, and people are going to feel the squeeze on household costs.
Ionut Danifeld 16:30
Yeah, absolutely. Yeah. Something that I’ve been saying, for example, interesting enough, I said it yesterday to my team is that my simple philosophy is that even if you’re a product like ours, I think that brand awareness is really important. The companies that are in investing in times of crisis, in brand awareness, are going to become relevant after the time of crisis is kind of finished, because you’re going to be the first choice in the mind of the consumers. Consumers in general, have the memory of a cockroach. So if you don’t consider continuing investing in brand awareness, and continue to stay relevant, if you are doing only one thing, or one action, so for example, a bigger campaign and brand awareness, they tend to forget you. So that is why you need to take for example, quarter by quarter, or year by year, or half a year by half a year and compare it.
Martin Henley 17:28
Yeah. So I think there’s three things really, that are screaming at me. Firstly, these predictions, these reports, are rarely reflected in reality is what I find. So like, you’re saying, you shouldn’t have been selling car accessories in the last two years during the pandemic, but you have been, you’ve done fantastically well. There is very often a disjunct between these kinds of reports and what happens in reality. The second thing is that, what you need to do is you need to evolve. So that’s what a good marketer is doing, is having their ear to the ground, knowing what’s going on in the market, and evolving to meet the needs of their market. You kind of suggested, before we started on this new story, that’s your plan for 2022. The third thing is that, you know, the data is overwhelming, more millionaires are created during recessions than at any other time. So a recession is essentially your biggest opportunity, if you want to be really successful, and it’s the best excuse you’re ever going to have, if you want to fail. I think that’s where marketers need to be thinking is, this may not be true, you always need to be evolving anyway and actually, this is typically an opportunity if you want to take it.
Ionut Danifeld 18:49
And you need to reinvent yourself all the time.
Martin Henley 18:52
You do, you need to, I mean, that’s what marketing is. Marketing really is having the ear of your market, you know, and knowing what’s going on. I think that’s why you’ve done well in the last couple of years and I think that’s why you will continue to do well, you’ll evolve to meet the needs of your market. Is there anything we want to say about the global situation? I mean, it looks but it just seems to me also to be really quite far removed from what’s going on in people’s personal lives, I don’t know.
Ionut Danifeld 19:27
This topic is so complex. In all of the honestly, don’t have so much knowledge and I prefer not to talk about subjects about financial institution, financial business models, business markets. It’s a little bit outside of my area of expertise. I can talk from a purely point of view of a consumer and the CMO, C-Level whatever person that is investing in marketing and how I’m basically trying to understand and react to all of the market shakes, I would say.
Martin Henley 20:07
Yes, yes. Yeah, but I think this is very rare. I knew you would be uncomfortable if we push this too far. I think this is the reality of marketers exist in their market, you know, and if this is what’s being reported, then marketers need to at least be having an eye on it, I think. Okay, cool. Let’s move on. What was your first story?
Microsoft acquires Activision
Ionut Danifeld 20:29
My first story was Microsoft acquiring activation Activation, Blizzard, you know, okay.
Martin Henley 20:41
So we know what Microsoft is. What is Activision Blizzard?
Ionut Danifeld 20:44
Activision Blizzard is one of the biggest game developers, they are the ones that developed Call of Duty.
Martin Henley 20:52
Ionut Danifeld 20:53
Right. Basically, some essential interesting facts. They basically it’s not whatsoever a done deal but they basically intended offer and you know, like in this big emerging markets, you they need some regulation and they need some approval. Right. Basically, their intention, and they stated its very clear that they want to buy. So they’re going to buy it for 68.7 billion. The deal is going to be somewhere in July 22 or July 2023. Now the biggest game, the biggest point of discussion, but it’s basically talking is that Activation Blizzard is creating Call of Duty and is exclusive for PlayStation, while Microsoft has Xbox. So there is a discussion about how exactly it’s going to make and I was reading one of the statements saying that Microsoft is still going to honour the contract for Sony, and very have no plan whatsoever in the near future to roll it out also on the Xbox. Now I find it a really interesting deal from a perspective of ….
Martin Henley 22:15
Wait, wait, so Microsoft are gonna own the Xbox and the PlayStation.
Ionut Danifeld 22:21
Microsoft already owns X Box.
Martin Henley 22:25
Ionut Danifeld 22:26
Sony. PlayStation is owned by Sony. Right. And the game Call of Duty is basically exclusive on the PlayStation.
Martin Henley 22:40
Ionut Danifeld 22:44
I think that this game is about data there are basically around 68 million people that are playing Call of Duty and the question is how you’re going to move them to a platform to Xbox. It’s quite interesting the entire merger is the biggest first of all, 60, how much was it? $68.7 billion. Microsoft is basically transforming into a huge, huge gaming player in the market.
Martin Henley 23:17
Ionut Danifeld 23:17
And there is no longer this Windows, Microsoft equal windows, you know?
Martin Henley 23:24
Yeah. So I’m just seeing the headlines here. Will Activision boost Microsoft’s Metaverse ambitions. So maybe it’s gonna go over on Facebook, who are the first pioneers into the metaverse? Oh, God, I feel for future generations man already do. The matrix is just another acquisition away. Also, I want to say but I’m not a gamer so I don’t know, I feel like the what’s the Microsoft console? The Xbox, Xbox? I feel like it’s probably quite good, is it?
Ionut Danifeld 24:01
Well, I’m a PlayStation, personally, fan but more or less all of his platforms mean the same. I think from a marketing perspective, we can discuss two things and why I wanted to bring this to discussion. One is the power of data. We know that it’s important and all of this acquiring when Microsoft or when sorry, when Facebook was acquiring Instagram, when Facebook was acquiring WhatsApp, they basically didn’t necessarily acquire a service, but we basically acquire users, right? So that’s one thing and a second point exactly how you said with the power of Blizzard and the power and their expertise in the game industry its going to be an interesting word between the metaverses. Realistically speaking, we are talking about two big players now, Facebook and Microsoft one word. Yeah. So let’s take it one by one …..
Martin Henley 25:06
Can I say what I want to say first, because before I forget, I don’t think, I mean, I’m not a gamer so I don’t know how good Microsoft are in this space. I don’t think Microsoft have a very good track record of improving businesses by acquiring them. So if I look at Skype, it hasn’t moved an inch since Microsoft developed it. LinkedIn certainly hasn’t got better since Microsoft acquired it. So I just think Microsoft, they’re not the most innovative. I mean, you could argue that no acquisition has led to things getting better but Microsoft in particular, I don’t think, have a great track record. I don’t know how brilliant they are. So your first question about the data, 100%, but I would say almost more than data, I would say audience, if Microsoft have effectively just acquired 68 million customers who are playing this one game Call of Duty then that goes into your second point, which is like the metaverse wars. For me a game like Call of Duty is much more compelling than what Facebook are presenting as the metaverse. You know, if because that’s a much more engaging experience. So I would say almost it looks like Microsoft are acquiring, like, really good potential customers for their Metaverse offering when that comes along. So that’s how I kind of feel about it. So data, probably, but more importantly, maybe they’ve got themselves 68 million inhabitants, at least for their metaverse. Oh my God, what’s the blue screen of death gonna look like in the metaverse? It’s gonna be like ….
Ionut Danifeld 26:55
Martin Henley 26:56
It’s gonna be green.
Ionut Danifeld 27:00
Listen Martin, I think that you said something that was really interesting, you said that I’m really worried for the next generation. Right? And the new generation. Your parents, my parents were also worried for the next generation I think, but we need to accept the fact that, that’s the reality, no, you don’t agree?
Martin Henley 27:23
Do not even open this can of worms. Life is going to be so messy and unpleasant for the generations that are coming through now, that they are going to be flocking to the metaverse because reality is just going to be so grossly unpleasant. Do not open this can of worms brother I’ve been thinking about this a lot. And I really think we’ve done a huge disservice to the generations that are following us.
Ionut Danifeld 27:47
So just cracking a little bit the can of worms …
Martin Henley 27:54
Be careful brother because I’m gonna start saying stuff that you’re gonna find really challenging.
Ionut Danifeld 28:01
I saw some interesting companies that they basically moved into … Walmart I saw release a video of their buying experience in in metaverse. Adidas experience in the metaverse and now Microsoft basically require the future generation 68 million, probably more because the Activision Blizzard, Call of Duty’s only one game, I think they bought an engine that can basically help them set the future. The problem that I have with all of this metaverses were looking ugly as fuck and games are still going to be better than whatever everyone is proposing. We are so early in the stage but it’s definitely something that what we are heading for right at the end of the day.
Martin Henley 28:57
And no, I don’t think so I don’t, well, I’m not a gamer. So none of these things are going to attract me. I think it’s the generations that come behind us. And I think they are going to be you know, you’ve seen The Matrix. Yeah.
Ionut Danifeld 29:11
Love the matrix.
Martin Henley 29:12
Yeah, I think that’s what’s happening for these poor souls who were coming after us. I think it’s a world of difference. Yeah. 100% My dad would have said, things were so much better in my day, but I think you can look and see observably things were so much better When I was growing up. Before the internet I want to make a video about the internet how I think the internet killed music. I think it’s killed so much stuff, but that will be separate let’s not get into that on this chat because we will be here for a week.
Ionut Danifeld 29:45
Yeah, so I don’t think there’s so much more to say regarding this subject besides the two points that we discussed. I’m definitely going, this is a story that I’m definitely, going to follow because I’m going to be really interested in seeing how exactly they’re going to use this technology and how exactly they’re going to do it. They’re going to communicate also with some other companies that are exclusive like Sony, what I said to you regarding Call of Duty, exclusive for PlayStation. These merging deals for me, I found them all always interesting and definitely everything that Microsoft touches goes to shit.
Martin Henley 30:29
When I say Microsoft to the Antichrist, that’s what I think, I really do.
Ionut Danifeld 30:33
Yeah, because Google and Facebook are not the Antichrist. And this is not.
Martin Henley 30:39
This is why I tell people when I when I teach, I say that. Google. Microsoft is the Antichrist. Google is, what’s the Holy Trinity? The sun, ghost and the Holy Spirit. Yeah, so I think something like that. I don’t know. Yeah, I think Google is God. Facebook might be the Holy Spirit, and Microsoft might be the evil son. I don’t know, anyway, um, if I were a Call of Duty fan, I wouldn’t be excited about this because I don’t think anything Microsoft acquires ends up being better you know, that’s that’s what I think.
TikTok ad aspirations.
Martin Henley 31:19
Good. Shall we go to my next story. Yeah, right. So TikTok is working on are no, no, no, no, not this one. TikTok partners with Zephyr to offer increased assurance on safe ad placement. TikTok has partnered with brands suitability platform Zephyr on a new brand safety post bid measurement solution for infeed ads, which will enable advertisers to ensure their TikTok promotions don’t appear alongside potentially offensive material. So this is interesting to me because I’m not a fan of advertising on these platforms. I don’t know really how people feel about advertising, we know that advertising is going to become much less effective on these platforms, Facebook, with the whole cookie wars thing that’s going on. So I’m just interested to know you’re driving with TikTok and having some success. Is that through advertising, is it through? Is it more organic? And then if it is organic, how do you prevent your brand appearing alongside potentially offensive material? That’s why I’m interested to know.
Ionut Danifeld 32:39
Let’s dissect a little bit TikTok advertising. It’s a little bit in the beginning. We tried a little bit of TikTok advertising. First of all, it’s close to impossible, or at least it was not possible last year to connect your TikTok user, or TikTok accounts with the TikTok business, similar to Facebook Business and Facebook page.
Martin Henley 33:07
Ionut Danifeld 33:08
That I find really weird and interesting. For the E-commerce business, they recommend more driving traffic, they don’t it’s not necessarily like a conversion campaign, where you basically track the ROIs and so on. Advertising in TikTok is also quite limited because you basically have, we don’t have popups you is basically you’re scrolling up and down in basically, if you find the video that is ads, you can basically skip it immediately. They have a quite interesting, I always forget how they call it, you go and search in the TikTok you have these trends, they call it TikTok weekly trends and challenges. Basically you can have, actually saw now Xiaomi Challenge Challenge Challenge with a bold design in one day Redmi Note series. So what basically we’re doing, it’s a little bit more organic in a way TikTok advertising and it’s at the moment more accessible for bigger brands. It’s not something but you know, like you go to the TikTok business manager and you create a you create this images and challenges.
Martin Henley 34:32
So what you buying if you advertise is the ability to link is it, you’re buying your traffic potentially.
Ionut Danifeld 34:40
You’re buying traffic, you’re purely buying traffic at the moment. I found it also quite interesting thing. I went basically to this TikTok business manager and I went there and I said, hey, I want an account manager because that’s my approach every time that I’m trying a new platform. I believe that I arrived on stage that I want an account manager to basically help me fast track my learning curve. I did it with all of the tools, I have an account manager on Facebook, I have an account manager on Google. That’s my advice to marketers at the moment that you, basically, if you’re working with a company and you want to use the platform, the one of the first thing is ask for an account manager to hold your hand, and to make you also accountable, and to help you fast learn.
Martin Henley 35:27
Ionut Danifeld 35:29
They basically said, yes, we’re going to contact you and I never received any phone call back, which was quite interesting. I believe that with this move, it’s quite important because for sure I don’t want for example, my ad to appear next to a video that is basically molesting animals or children or whatever it is. It’s something that you cannot control and I think that is a really good move from tick tock to basically toput some limits and control into this subject.
Martin Henley 36:03
Yeah. I mean, wouldn’t it be better if that content wasn’t on there at all? I think but I suppose this is the issue and it’s not even that level of disgusting. It’s like racism, and I don’t know, and all of those things and bullying and yeah, so. So maybe they’re getting their act together by partnering with this company, so maybe they’re their advertising offering, is going to get a bit stronger. I mean, I haven’t paid to advertise on any of these platforms for the longest time because I didn’t, I didn’t grow up, but I was there when it was a beautiful organic thing. You know, and you could do interesting exciting thinsg and it would work.
Ionut Danifeld 36:05
It no longer exists. I mean, like, at the moment, probably that is why I’m a really huge fan of TikTok because it’s, it’s a little bit the OG’s of platforms, because we’re in the beginning, of course, they give a lot of organic because we want to acquire users and so on, but this shit is going to end up probably in the next, I would say one year, two years, I don’t know, I’m not going to know but they’re going to definitely follow the trends.
Martin Henley 37:15
The trend is that they start open and it comes increasingly closed until you have to pay to be involved. Then I don’t personally I don’t know, I haven’t for a long time taken any value out of advertising on any of these platforms. The last time I did it, LinkedIn charged me 17 pounds per click and they reported that I had, I don’t know, 10 or 11 clicks and only two of those clicks actually turned up in my analytics and they were both gone within a part of a second, you know, so. Yeah, so I think, oh, it’s LinkedIn is that other Microsoft company? So yeah, so I’m very sceptical about these things. I think this is the big benefit of getting in early with these platforms and making hay while the sun shines because, this is clearly the way they have to operate. They have to start off being very social and then as they come under pressure from their shareholders, then they have to try and make money out of these things. I think that it rarely offers really good value. Okay, are we done with TikTok then and their ad aspirations.
Ionut Danifeld 38:25
We are done? I am going to end up as a personal advice, try TikTok and localise the content is something that I’ve been seeing on a couple of videos.
Martin Henley 38:38
Ionut Danifeld 38:38
I think also, in one of our talks, you remember when we discussed on the fact that we managed to fuck it up and we didn’t had engagement because we were sharing the content from one platform to another? We basically managed to find success at the moment that we understood how the algorithm is working and how important is the localization of content on each platform? Because it’s, at the end of the day, it’s the users digest different types of content on different types of platforms.
Martin Henley 39:13
Yeah, well, they do but it seems to me like this content is cross platform now. This TikTok type content, you can put it up as Insta reels, you can put it up as YouTube shorts, you could put it up as Facebook Stories. So are you doing that? Are you using the content across platforms?
Ionut Danifeld 39:32
No, no, no, no. The reason being that you can do it, but you’re not going to have so much organic reach. For example, on TikTok, if you want to kind of like, I wouldn’t call it viral, but to have a lot of views and higher engagement, and higher viewership, and so on, you need to use some sounds. The sounds are the ones that you take a sound from a video that became viral you use it in your video, and you kind of like I wouldn’t say replicate but go in the same direction. People are such, at the moment, that you’re on TikTok, you’re pressing the sound your basically you’re going to find some other similar content.
Martin Henley 40:15
Yeah, they’re doing that on Reels as well, they’re doing it on Insta Reels.
Ionut Danifeld 40:19
Yeah, but then you need to use another song because one song that is popular on TikTok maybe is not popular on Reels, right?
Martin Henley 40:25
Hmm. Okay. All right. Interesting. Okay, good. Your second story?
Naughty influencers and brands.
Ionut Danifeld 40:34
Yes, so my second story is regarding, the article is saying the following – that brands could face similar sanction in the future, which is basically the fact that influencers of companies are not letting the consumer known that paid is basically a paid post. Right?
Martin Henley 41:00
Ionut Danifeld 41:02
There was that scandal with the influencers, that they were basically charged on the fact that we are hiding advertising.
Martin Henley 41:14
Ionut Danifeld 41:15
So what made me think of this article is that recently on, especially on Instagram, all of these influencers were promoting brands, and so on, and me as a consumer, and that is why probably, I’m not digesting so much Instagram content, because they’re shoving products down my throat through each and every single post. Oh my God, this is an opportunity, there was this joke did you ever ask why I, nobody fucking ask you anything, first of all, right. Now the influencers are becoming a little bit they understand the concerns of the users so they are creating content that feels a little bit more organic, but it’s still a paid post. So the companies and the influencer, the ones that are influencing me, and you as a consumer are hiding the fact that this is a paid advertising. That’s kind of creating some important moral issues because paid advertising should be flagged as paid advertising.
Martin Henley 42:31
Ionut Danifeld 42:32
So but why you have Martin is with X company, right? It’s that brand collaboration? Yeah. So Facebook, you can put brand collaboration, which means that the account A is working with the company, B.
Martin Henley 42:51
Ionut Danifeld 42:51
So the user will know that is they’re working together.
Martin Henley 42:57
Yes. Okay, so I’ve got views on this, because I don’t know if this influencer thing is coming to an end because people have done it so badly. I think, like there was a big backlash wasn’t there, obviously, a couple of years ago in travel influencers and the hospitality industry, where basically the hospitality industry said just basically go fuck yourself, you’re not coming here to stay for free. You know, we pay for the food we pay for the room to be cleaned. We pay people’s wages, and basically, they outed a lot of these travelling influences as freeloaders, which, you know, I pretty much agree with. The other issue is I bought a new computer at the back end of last year and I watched a lot of reviews because it was a lot of money. What I realised is that everyone’s just saying this is amazing, buy it I bought it now. It’s alright, but it does crash two or three times a week like every computer I’ve ever seen before. It’s just like so I tell you the one that really does this badly is Peter McKinnon because almost I don’t know if you’re into photography at all, Peter Peter McKinnon’s a photography guy and huge YouTube channel. Almost every week, in the run up to Christmas, he was reviewing some new thing and it was always this is brilliant go buy it. Even though he’s not getting paid, and even though he’s saying, look, I was sent this for free, of course he wants to free stuff. I mean, if Apple are going to send you an $8,000 computer for free, of course, you’re going to want to keep that situation open. And of course, the $8,000 version one, I would hope, is an amazing thing. But it’s like, I’ve stopped watching him because it’s like always, oh, there’s this new thing, 10 minutes later, it’s amazing. You know, it’s like not everything can be amazing. So there’s no, there’s no what’s the word? There’s no real critique going on. Do you know I mean, there’s no, there’s only one guy I know that does that. So I think that has cheapened the whole thing. Then I think you’re right, if they aren’t playing by the rules, and not actually announcing, you know, we’re working in partnership with these people being paid by these people, or whatever it is, then, you know, maybe that might be the final nail in the coffin. Actually, there’s four things that I wanted to say I wanted to say this when we’re talking about TikTok ads, is that one thing that the youngest generation do have in their favour, is they are very ad savvy. They really don’t like ads. So you know, famously, you put a two year old in front of an iPad, and on YouTube, and they will, the first thing they’ll learn how to do is skip the ads, you know. So I think it’s interesting four ways it’s interesting.
Ionut Danifeld 45:48
So the article is saying something really interesting. The Advertising Standards Authority, which I never thought about it, apparently there is a standard authority, is taking out Instagram ads, exposing six rule breaking influencers, who have consistently failed to disclose ads on their own accounts, despite explicit warnings. The regulatory body rules state that advertising on social media must be clearly be labelled as such to protect the consumer, this can be achieved with a label saying hashtag ad with the image, or caption, which seems quite easy, right? Everybody can say?
Martin Henley 45:48
Yeah, the issue is, it’s not that it’s difficult to do it’s that once you flag something as an advert, no one gives a shit about it anymore. Do you know what I mean? This is about actually, this is about the, the ineffectiveness, of advertising, especially I think, with these younger generations.
Ionut Danifeld 46:59
So I can tell you, I’m going to, I’m going to say this with pride. We recently did a commercial in the cinemas here in Malaysia for one of our products and it was quite a big move. First of all, because of the money, you know, like all of these commercials in the cinemas work quite expensive and you’re thinking as a marketer, okay, where should I put a, I don’t know, let’s say 45 grand do I put it into Facebook ads where I can basically track it, or should I put it in brand awareness coming back to the the other discussion, because basically, you cannot track it. Or you can put, for example, a coupon code in a way you can track it. I basically went to the cinema, of course, to see the ad and to see how people were reacting, if people are actually watching, and if they’re paying attention. It’s coming back to what you said prior on the fact that at the moment that the consumer is basically seeing an ad, he turns away. My reaction when I saw all of these ads in the cinema, except ours, and you’re probably going to laugh – they were really looking fucking ugly. It didn’t click with me. Of course, I’m a little bit biassed, but it didn’t actually click with me to stop eating my popcorn, stop drinking my cola, stop talking with my wife, and actually look at that fucking ad. The problem was the creativity that the marketers are putting into these ads. For example for us was a little bit of drifting on the car mat, and we did some tests, and it was like a fast moving car, and some radio and we said like, Hey, look here. We used a lot of trigger points to connect with the audience and to keep them watching and we tested our ad before we released it. The problem why consumers don’t watch ads, because there are a few ads that are actually really interesting. You probably know that one of the biggest advertising phenomena every year is the Superbowl in the US.
Martin Henley 49:22
Ionut Danifeld 49:23
That’s one of my favourite things to watch every year after Thanksgiving or before Thanksgiving I don’t give a shit about Superbowl but I really give a shit about the Superbowl ads. Because these guy’s, most of the time, they really know how to keep their audience engaged.
Martin Henley 49:44
Ionut Danifeld 49:44
Right and thats the power of advertising. That’s the power of ads, to basically create something that is engaging and the lack of creativity for me is absolutely mind blowing.
Martin Henley 49:56
Yeah, and I think, this kind of follows From the story that Starling Bank and Facebook advertising story of two weeks ago, is that I think marketers have become lazy, because we’ve been, you know, drunk on this amazing data. We haven’t had to do this for a period of time. I think if there’s going to be a trend in the next couple of years, it’s gonna be back towards more traditional marketing. So for example, I mean, I’m remembering back to ads that I’ve seen in the cinema, but advertising in the cinema now is such an amazing opportunity, because you’ve got that huge screen and that huge surround sound and people are there for that, you know, I mean, so anything they see in that environment should be good. I think people have got less good, I think there’s less creativity in the world, but I think, I think there’s going to be a trend, I think it’s going to come back around, it’s going to be not digital marketing, not social advertising. I think it’s going to go back towards TV advertising, billboard advertising. TV advertising, because I think the digital platforms are becoming so much less effective. That’s what I think. So I think it’s going to have to go back round that way. Then hopefully, we’ll see an upturn, people will understand that, you know, the first job of your advertisement is to get people’s attention because if they can ignore it, they 100% will.
Ionut Danifeld 51:24
Yes, but there is another. I’m not saying that is you shouldn’t go back to traditional advertising but the problem still exists in this traditional media advertising, the lack of tracking, and the lack of ….
Martin Henley 51:42
On the digital platforms it’s going away that’s that’s the whole point. Like these, like, if you remember the Starling Bank story, basically, they said, these people are failing to protect our customers from fraud, we’re having to compete with fraudsters for advertising space, that’s why they stopped. Then a month later, they come back, and they say, we haven’t seen any difference in our business. So you know, that’s, that’s the danger for these digital platforms, I think, is that they’re not doing enough to protect marketers and their customers, and then when people stop doing it, they realise actually, it’s much less effective than they thought it was. Which goes back to my thing about advertising on these platforms, I haven’t had value out of any of advertising on any of these platforms, probably in the last 10 years, you know?
Ionut Danifeld 52:34
I was talking with a company here in Malaysia who are doing some doing some pretty amazing things. They are an offline marketing company providing solutions for digital billboards, so digital advertising, and they actually found a way to provide some sort of analytics. For example, they are giving the opportunity to say how many people are going to walk by your billboards, the possibility to tell you how many people were actually stopped and looked on your ads, how many exposures per hour you have. If digital, if offline marketing is or advertisers, or companies that are providing solutions for companies that are going to provide some sorts of analytics and tracking, I think that’s going to be really huge. I’m still going to, my major source of advertising is still going to be social media networks, whatever is the name of it.
Martin Henley 53:48
But you’ve just put an ad in cinemas.
Ionut Danifeld 53:51
And the reason being is that I’m captivating, but now that I’m saying that primary, the primary is still going to be this platforms but I’m trying it out and I’m going to the next stage, which is for me, is brand awareness.
Martin Henley 54:07
You would never have done that three years ago, that’s what I’m saying.
Ionut Danifeld 54:11
Martin Henley 54:14
Even in your experience is moving away from digital. Actually, the analytics is great number of visitors number of clicks, blah, blah, blah, blah, blah, blah. At the end of the day, we’re interested in the bottom line, we’re interested in actual sales and I think when people come to analyse that more, they’ll realise what I realised, which is I don’t generate sales, like, essentially, I think we’re on the same page. Social media is really top of funnel, awareness type stuff, and that’s all it is. You know, that’s all it really is. I don’t know, I think it’s going to change. I think digital channels. because traditional marketing is becoming more digital like you’re saying, so they will be able to tell you how many cars pass the billboard or how many people were sitting in the cinema. You know, they will be giving you more data but I think at this at this top level brand type stuff is just brand. You know, it’s just awareness.
Ionut Danifeld 55:12
Why I think three years ago, I would probably wouldn’t go for it. Let’s take an exception of the stage of the company the cost per mass advertising. Yep, like digital billboards, cinema, radio and so on it’s actually decreased. It’s starting to more affordable for small and medium sized companies. Yeah, but even companies compare with three, five years, six, seven years ago, which you’ve seen only Coca Cola, Apple, Procter and Gamble, yada, yada, yada, you know, I’m talking giants. Now you see really small shitty companies that are basically can afford, okay, it’s good or bad, or whatever, how you define it as a consumer, but they still very started to afford ….
Martin Henley 56:02
The space at least Yeah. Yeah, I remember when I was a kid, the local curry house would be advertising in a cinema and it would just be like a picture of their menu will come up on the screen. But yeah, I think it’s coming around but I think there’s four or five things happening that are going to make this inevitable; the ineffectiveness o,f or the unwillingness of these large social media platforms to protect their advertisers or the customers of their advertisers; the ineffectiveness of the platforms; the increase digitization of TV advertising, billboard advertising, etc; the affordability. You know, I think there’s four or five things happening that will make this more common.
Ionut Danifeld 56:47
Martin Henley 56:49
Google gets in to cookie trouble and abandons Floc.
Martin Henley 56:50
So the shared story, I’ve got some headlines here. Do you want to hear my headlines about Google? So this is the thing that I picked up a few days ago. German publishers oppose Google plan to phase out third party cookie cookies. Axel Springer, I think they’re I don’t want to necessarily say what I think they are. And yeah, so that was going on. Then just yesterday, the FT have reported Google changes course on cookies plans following advertising industry backlash. So this is Google has overhauled a central piece of technology is building to replace advertising cookies, after complaints that it has not done enough to protect users privacy, and could end up further entrenching its own power in the advertising world. So this is kind of a continuation of what we’re saying just about how useful these things are, you know, they’re walking a line now between consumer protection and usefulness. I think it’s going to be a narrow line for them to walk, I don’t know quite how they’re going to serve it, which, which was the story that you picked up?
Ionut Danifeld 57:58
So I basically picked up Google abandons Floc.
Martin Henley 58:05
Okay, that’s the technology that they are talking about.
Ionut Danifeld 58:07
That’s the technology. So basically, for the ones that don’t necessarily understand what basically Floc was, it’s basically it’s how Google at the moment is segmenting audiences in categories or cohorts, based on the browsing activity, that basically means cohort. So to give you an example, if you’re a fan of, I don’t know, the Chicago Bulls or event two story know, you’re going to be placed on a sport cohort. While people they can target you based on that cohort and third party cookie data. So now what Google is doing and he wants to do, they want to create topics, and they released interesting video about how we are explaining how topics are going to work. So what they’re saying is that, at the moment, Google is testing around 300 topics. For example, if you’re passionate about sports, and movies, and cryptocurrency, for example, you’re going to be targeted only based on by these three topics. At the moment that you’re going to visit other websites, like for example fashion, that’s going to flag Google to say that okay, Ionut is interested in that topic. I can delete or close or move topics based on my area of interest. So, they are saying that they want to implement this technology by 2023 so next year into Google Chrome, and its going to be quite Interesting how exactly advertisers are actually going to this. Right?
Martin Henley 1:00:12
Yeah, well, it’s gonna. Yeah, isn’t topics. So we’re talking about in Google ads, you have demographic information from visitors to a website, like in, in your, in my Google know, in my Google Analytics, I can see demographic information, and interests, and I can see topics, household wealth, all of those things. So how is this different?
Ionut Danifeld 1:00:40
Well, it’s basically different because the cookie is tracking you for the entire whatever your the fuck you’re going to do on the internet, right? And it is closely correlated with privacy, because there is not going to be any more cookies, your browsing history is not going to be, you’re not going to be followed everywhere. So how I personally understand it, I didn’t had so much chance to basically because I just seen it recently. So I didn’t look so much into the details but how I’m translating it for me as a marketer is that if, for example, you’re visiting Forbes, and after this, you’re going to, for example, a company that is selling shoes, and you didn’t finish your buying purchase, and you’re arriving afterwards to another web site, which is, for example, Animal Planet, my ad is not going to be shown on Animal Planet, because that’s basically not my area of interest. So now Google cannot track third party data, right, which is a cookie world. The right you see what?
Martin Henley 1:01:55
Yeah, so also struggling to understand this, because what we’re talking about is display advertising. The reason they’ve got into trouble with publishers, is because publishers want the AdSense revenue. Is that Is that what’s going on?
Ionut Danifeld 1:02:11
The publishers, they want the AdSense. I don’t understand.
Martin Henley 1:02:16
AdSense is the network, if I have a content site, then I can put Google ads on that page by signing up to AdSense and Google will pay me for impressions on those sites. So that’s why they are. So it’s not about advertisers, it’s about the publishers who get paid for the ads.
Ionut Danifeld 1:02:41
So I’m seeing I’m seeing that there a few parties involved into this space. The first one is the consumer, which if we’re going to implement this, because at the end of the day, cookie world is kind of like interesting technology, what is your basically followed everywhere where you go, and you seem to have been notification that this website is using cookies and after this, you’re displayed an ad on another website for a website, ecommerce that you basically bought before or whatever you did. So there’s going to be this disappearing, right. So your privacy is going to be kind of more effective, or Google is taking some approaches into this. The other one is basically the advertisers.
Martin Henley 1:03:33
Yeah. Yes. So what do I think I really want that to work right now? It looks to me, like from what I’m reading, is that so there’s three parties isn’t there? There’s, well, there’s four. But the ones that count in this instance, are the platform, the advertisers and the publishers. So what they’re saying. Yeah, I’m reading between the lines a little bit maybe. So on Tuesday, Google conceded that a part of its replacement for cookies known as flock might not do enough to to protect the identity of individuals online, and did not make it easy enough for web users to understand or control how their data is being used. Vinay, the product manager in charge of the project called The Financial Times that Google decided to scrap Floc after feedback from publishers and others in the industry. He claimed that a replacement method for Floc. The Floc plan involves analysing users browsing habits on their own devices rather than sending the data to Google servers. The company had planned to use this to create cohorts of anonymous users with similar interests, then let advertisers bid to target adverts in the groups.
Martin Henley 1:04:51
The idea was attacked by rivals as a black box that would leave Google with too much control over how online audiences are assembled and sold to advertisers. So I think that’s the that’s the issue for advertisers. They’re being sold in anonymous cohort, so you can find this demographic but you don’t necessarily know who they are. The issue for publishers is going to be that far fewer people are going to turn up looking at ads on their site, because they’re not going to they’re going to be targeting the individual rather than the site, do you think?
Ionut Danifeld 1:05:27
Similar to what Facebook was similar with the Facebook and iOS 15, and the Apple, the entire Apple shenanigan. I think that it’s a little bit, at the moment, it’s a little bit of news. What I’m expecting, because exactly same thing happened to Facebook, massive conferences, events, webinars, direction on changes on the platform’s and exactly the same thing is going to happen with Google. At the moment, there is a little bit of a drop in the ocean, by this situation, by this change, the more that we’re going to go into 2022, I’m expecting to see a couple of changes on the platform and a couple of statements from Google, especially from the Google Ads and Google Adsense platform in this regards. How exactly, what initiative you need to do, because it’s definitely going to change the world. Cookies are the base of advertising at the moment but you probably heard about, and we discussed in a previous episode, about a cookie less world where companies cannot track individuals across the funnel. So it’s going to be interesting to see in the future how exactly we as marketers, we need to reinvent ourselves, because the data is not going to be so relevant.
Martin Henley 1:07:02
Yeah, the data isn’t going to be so precise is the issue. I think that’s what’s going on here, essentially we’re getting a watering down of value for advertisers, because they’re not going to know exactly who they’re landing their ads on. We’re going to get, publishers are going to have less ads running on their pages. Google, it seems to me from what I’m reading here, are essentially going to be selling a less good product and not surprisingly, nobody’s very interested in that. So this comes back to what I say, people are going to go back to traditional methods of advertising, because this is going to be less effective, and it’s going to be less. Yeah, that’s the way I see it. We’re talking essentially here about display advertising here we’re not talking about PPC, we’re talking about display advertising.
Ionut Danifeld 1:08:01
No talking also about PPC, why not also display advertising?
Martin Henley 1:08:07
Well, because PPC isn’t run on cookies, it is run on searches. So you can’t target these demographics on PPC, you can’t say I want this person to see my ads at the top of the search results. So this is display, I think.
Ionut Danifeld 1:08:25
Maybe I’m wrong here but for example, if I’m searching about yellow ice cream, and you’re searching about yellow ice cream is still going to be a little bit of a different, of course, it’s influenced about how much you’re bidding on a specific keyword but the ads sometimes are different right? The main, main point is not on the Google search platform it’s on the third party websites, you know, websites.
Martin Henley 1:08:55
Yeah, so that’s display advertising.
Ionut Danifeld 1:08:58
And part of the programmatic ads. Right?
Martin Henley 1:09:02
Ionut Danifeld 1:09:02
So that’s where exactly is the problem. The problem is not necessarily on Google platform like Google search, typing yellow ice cream, it’s on the third party websites.
Martin Henley 1:09:14
PPC you’re bidding on the phrase.
Ionut Danifeld 1:09:17
Martin Henley 1:09:18
Ionut Danifeld 1:10:04
Sorry, once again,
Martin Henley 1:10:05
Ionut Danifeld 1:10:16
Regulations in the market people we discuss about this privacy issues, but people are starting to be more more worried about privacy.
Martin Henley 1:10:25
Ionut Danifeld 1:11:26
I think that we are over the end.
Martin Henley 1:11:29
You think we’re over the end, we have done an hour and 11 minutes and 28 seconds. I’ve thoroughly enjoyed this again Ionut, Thank you so much, man.
Ionut Danifeld 1:11:37
My pleasure like always.
Martin Henley 1:11:38
Like always, yeah. So thank you so much for your time. We are watching you. I hope that you know you are one to watch. We are watching you, hope that people watch here. If they’d like to support us in this venture, they need to like share, subscribe, comment to all of that good stuff. I will see you in two weeks time.
Martin’s original content is based on his very current experience of running effective marketing initiatives for his customers and the feedback from Effective Marketing’s successful and popular marketing workshops.
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