In The News: AdExchanger & F8

I was recently asked by Ad Exchanger to provide my thoughts tied to announcements made at Facebook’s 2019 F8 developer conference. Here is a link to the published Ad Exchanger article.

My full commentary is outlined below:

(Ad Exchanger) Does this “privacy vision” feel sincere or is Facebook cleverly positioning its shift?

(TOM) I feel the shift from Facebook to “the Future is Private” was necessary as the shift reflects how consumers have been interacting since 2016 when social messaging surpassed open social in terms of usage behavior. 

The company went through a similar shift in 2014 with the myopic focus on becoming “Mobile First” with 100% focus and resource allocation supporting the vision. I see the same focus here with privacy. It makes sense that this was the macro theme for F8 and a rallying cry to adjust the product suites. The focus on interoperability and encryption as well as shifting messenger to be the new connection point for friends and families is a smart move. 

Separately, how much of an impact will the privacy vision have on how Facebook will be able to monetize?

How this impacts advertising will be interesting. While the focus on reduced permanence and the statements around privacy and encryption are good tent pole statements, item #6 in the privacy manifesto was Secure Data Storage. There will also be the consolation around Messenger, Instagram and WhatsApp to create a new advertising network connected to 2 billion people. How data will be used to support the targeting is TBD but the infrastructure to create new avenues of reach and the new consumer acquisition ad units that drive to Messenger will be a key part of their strategy putting the onus on the consumer to share data, as outlined by the new consumer acquisition ad types for Messenger. 

And lastly, how will marketers need to change their Facebook strategy as engagement moves invariably away from the feed and more into Stories, messaging, etc.

(TOM) As marketers it’s important to understand the shift away from content marketing and focus on enabling creativity, utility and entertainment through Messenger and Instagram. Leaning into the ability to co-view video, utility through integration of various API’s, understanding the new payment and commerce capabilities and supporting the creation of AR experiences. Also understanding how to navigate the shift with FB5 towards groups and the role that marketers can play to create new types of connections. 

There is a lot to unpack and as Facebook continues to shift towards fast, reliable and private experiences, it will be interesting to see how the platforms actually evolve and where new opportunities to drive monetization will come from. 

Follow Tom Edwards @BlackFin360

In The News: AdExchanger & Apple Live

I was recently asked for my thoughts about a number of the recent Apple Event announcements. From Apple’s original content strategy, monetization, advertising and more. Here is the published article.

Here was my full commentary on the topic:

(Ad Exchanger) Is what Apple planning a Netflix killer?

(TOM) Apple wants to be the Sherpa and curator of content. Their new recommendation engine is more about aggregation across subscriptions vs. being a content killer. I found it interesting that they are still maintaining partnerships with big cable providers while still differentiating through per channel subscriptions. This isn’t a Netflix killer, but Apple understands that moving forward individuals want control over their experiences and multiple subscriptions will exist. They want to be the “Google Search” of entertainment. This keeps their hardware and services sticky throughout.

With Apple TV+ original content, Apple is focusing on creating programming that will create affinity within their services as well. I would not call this a Netflix killer, but it’s a first step to not only control the navigation of content, but also become a destination as well. 

What makes sense in your view for Apple from a monetization standpoint for its original content and its foray into TV?

(TOM) What came through loud and clear from today’s event is Apple’s focus on allowing the consumer to ultimately control their entertainment options. By providing bite-sized subscription services across their ecosystem they gain a consistent stream of revenue that is scalable and minimizes risk of hardware cycles.

It’s yet to be determined how much revenue Apple TV+ will drive in terms of new subscriptions, but with the amount of talent that was showcased, including Oprah, Steven Spielberg, Jennifer Aniston and so many more providers, it just takes a few shows to catch on to drive monetization of original content.

What are your thoughts about how Apple will deal with advertisers/advertising, what a rev share might be if ads are one of the monetization options?

(TOM) I have not heard anything yet about how Apple will deal with advertisers/advertising. One recurring theme was re-emphasizing on device data processing and less information being available to 3rd parties. Apple may be less inclined to leverage an advertising-based model as they dive into recurring revenue with subscriptions. 

This doesn’t mean the end of advertisers with Apple. As with any program, driving awareness will need to occur outside of the Apple TV+ ecosystem. This is through content, traditional & performance-based advertising. Advertisers will need to focus on other affinity-based channels to connect audiences with programming.

Follow Tom Edwards @BlackFin360