Will Amazon’s spike in nabbing search ad dollars in US trickle down to Asia?

FARZANAH FARVEEN | October 21, 2019

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Google currently dominates the growing US search ad market, but according to eMarketer’s latest study, its revenue will drop. The study, based on US consumers, reveals that the search ad market will grow nearly 18% overall this year to reach US$55.17 billion, and Google will obtain a 73.1% share of it. A player that has Google in its cross-hairs is none other than Amazon. According to the eMarketer study, Amazon’s search business will grow nearly 30% over last year, boosting net search revenues to US$7.09 billion. Its share is forecast to be 12.9% this year, growing to 15.9% by 2021. In 2018, Amazon surpassed to become the second-largest ad platform for search in the US. Principal analyst of eMarketer Nicole Perrin said Amazon’s ad business has attracted massive increases in spending as advertisers can reach consumers during product queries conveniently at a time when they’re ready to buy. The global eCommerce company seems to headed towards overtaking Google in time to come.

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FCB (Foote, Cone & Belding) is a global, fully integrated marketing communications company with a heritage of creativity and success dating from 1873. Based on a deeply developed understanding of diversified local markets and global cultures, FCB focuses on significantly changing consumer behavior to the benefit of its clients, its people and society. With more than 8,000 people in 120 offices in 80 countries, the company is part of the Interpublic Group of Companies (NYSE: IPG). Learn more at www.FCB.com and follow us on Twitter and Instagram (@FCBglobal) and Facebook (FCB Global).

OTHER ARTICLES

Digital Advertising Rates Are Down by 30%, IAC Says

Article | April 7, 2020

It turns out that the digital advertising industry has two problems. The one you’ve probably heard more about is simply loss of budgets. With large segments of the U.S. economy basically shut down, there is little reason for airlines, hoteliers, casinos, retailers, auto makers, film studios, or restaurants to advertise at the same pace. And small businesses are more focused on meeting payroll and staying alive than on advertising and marketing. But there is a related and logical, if slightly less obvious issue, in particular in the digital advertising market: Ad rates are falling hard. It isn’t just that there are fewer ads—the remaining ones are generating less revenue.

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How brands can leverage in-person networking as a strategic advantage

Article | March 1, 2020

As more mundane tasks get automated, quintessential human skills such as creativity, innovative thinking, logical reasoning, communication, and personal rapport building are becoming increasingly important. Amazon will spend $700 million to re-skill around 100,000 workers in the US by 2025. Why? Because technologies such as Artificial intelligence (AI), robotics, and automation continue to take over boring, repetitive tasks. For enterprises to survive and excel in such a rapidly-evolving business ecosystem, they need skilled professionals. In the business context, ‘skills’ are not limited to technical acumen alone. As more mundane tasks get automated, quintessential human skills such as creativity, innovative thinking, logical reasoning, communication, and personal rapport building are becoming increasingly important. Due to the nature of these skills, let’s call them “Human Skills”.

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Google’s and Facebook’s Grip on Digital Advertising Markets

Article | February 11, 2020

Since July 2019, the UK’s Competition and Markets Authority has been conducting an extensive investigation of the digital advertising market. In its preliminary report on the investigation, the CMA expresses concerns that Google and Facebook have grown so “large and have such extensive access to data that potential rivals can no longer compete on equal terms.” 2019 marked the year in which digital advertising finally took the crown from TV and other legacy media both in the US and worldwide. Estimates point out that digital ads now account for 51 percent of the almost $600 billion spent globally on advertising, a percentage that should only rise with time.

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Augmented Reality: The Real Game-Changer for Marketing in 2020

Article | December 8, 2020

While brands have dabbled in augmented reality (AR) for years, 2020 marks the tipping point where it’s becoming an integral part of marketing strategy, helping create meaningful and emotional consumer connections. AR has finally grown up; once infamous for gimmicks such as face filters on social media, it’s now a cross-platform tool to build truly interactive environments, compared to VR which requires a headset to create computer-aided stimuli. The figures tell us that the global market is expected to grow substantially from $13 billion this year to more than $67 billion by 2024. The technology is graduating from being used solely for entertainment to providing real-world value and utility for marketers through immersive and experiential opportunities. So – in the midst of a global pandemic – what makes this the perfect time for AR to come of age, and how can marketers make use of its unique attributes? 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AR is certainly not restricted to just online browsing – it has a real benefit in the physical world too, for instance helping shoppers in stores discover how and where the product was made, just by scanning a code –subsequently helping move them along their purchase journey. Future-proofing education and development AR enables a more sophisticated, discovery-based form of learning. For example, students in a classroom can engage with virtual, 3D objects to help grow their understanding of certain topics. Teaching concepts such as orbits in the solar system can be optimized using AR-powered, interactive models. Additionally, AR allows for the gamification of learning experiences, helping to boost knowledge retention through educational puzzles and treasure hunts. The learning benefits of AR also extend beyond the classroom. 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AR ad units drive far more engagement and dwell time than conventional media and can give digital display advertising a new lease of life. What’s more, the real-time interaction between user and ad enables advertisers to effectively measure the impact of their campaigns and optimize accordingly. Advertisers have cautiously experimented with AR for years but they have largely added minor elements to traditional campaigns simply to ‘tick a box’. To make the most of AR’s capabilities and deliver real engagement, marketers need to take a different strategic approach and put this disruptive technology at the heart of their ad campaigns. Superseding live events At a time when social distancing makes live events and product launches problematic, AR can be used to digitally create immersive and emotionally-charged experiences that generate buzz around a brand. In fact, AR improves upon the in-person experience by allowing marketers to scale events beyond the natural boundaries of any physical location and enable hundreds of thousands of participants from all over the world to share the experience simultaneously. This will revolutionize how audiences engage with live music and sports events in particular, enabling unique forms of interaction. By augmenting the user’s immediate environment with a digital presentation layer, AR allows users to interact with players and performers in a way that is not possible with a traditional passive offline event, and to be true participants rather than simply viewers. AR reduces the need for traditional physical events and paves the way for a new era of participative, immersive and scalable online experiences, with visceral and emotional engagement. The perfect combination of tech evolution, advanced connectivity and contextual circumstance means this is the year AR really comes into its own. By taking advantage of product visualization, interactive advertising and immersive digital events, brands can leverage AR as a game-changer for marketing in 2020.

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Spotlight

FCB Global

FCB (Foote, Cone & Belding) is a global, fully integrated marketing communications company with a heritage of creativity and success dating from 1873. Based on a deeply developed understanding of diversified local markets and global cultures, FCB focuses on significantly changing consumer behavior to the benefit of its clients, its people and society. With more than 8,000 people in 120 offices in 80 countries, the company is part of the Interpublic Group of Companies (NYSE: IPG). Learn more at www.FCB.com and follow us on Twitter and Instagram (@FCBglobal) and Facebook (FCB Global).

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