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This Week's News: 2021/07/28

This Week's News: 2021/07/28

Hotspex Media Team

Snap, Twitter see revenue jump as new features attract interest

TLDR
  • Snapchat saw revenue more than double to $982 million over the quarter while daily active users grew 23% year-over-year to 293 million.
  • Twitter's revenue rose 74% YoY to $1.19 billion, with ads drawing in $1.05 billion.
Brief

Snapchat and Twitter reported positive results in second-quarter earnings signaling again that the larger advertising market is rebounding following a bumpy pandemic year. Those gains could be fortified as quarantine habits stick even with the return of pre-pandemic lifestyles. Both platforms are tweaking their strategies to account for shifting consumer tastes. 

Snapchat has been heavily promoting a TikTok lookalike feature called Spotlight that at one point paid up to $1 million per day to creators to encourage them to post on the short-form video portal. Spotlight daily active users grew 49% in Q2, while average daily content submissions more than tripled. Snapchat is also trying to more closely link its capabilities in augmented reality and content to commerce.

Twitter recently launched a live audio product called Spaces that closely mirrors the Clubhouse app. Spaces will factor heavily into Twitter's content partnership with the NFL around the upcoming season


How the ad industry can use its borrowed time to future-proof first-party data solutions

TLDR
  • Google’s updated timeline for its Privacy Sandbox rollout, including its two-year delay of third-party cookie deprecation on Chrome, didn’t come as a surprise. The delay might represent a brief reprieve from the loss of certain targeting and tracking capabilities, but it requires a different playbook.
Brief

Cohort onboarding represents a consumer-friendly solution to harnessing first-party data by enabling marketers to transform their first-party data assets into powerful digital audiences to reach new customers, enhance marketing analytics, deepen insights and boost omnichannel campaign performance. With cohort onboarding, advertisers bring disparate sources together (CRM data, transactional spending, loyalty card metrics, survey responses and more) and transform them into addressable digital audiences to target and engage. Retailers can leverage audience cohorts that could be matched to privacy-compliant online IDs to create digital audiences that enable the retailer to send tailored offers through traditional and digital channels. The same approach allows them to acquire new customers focused on certain product offers, and strategically place advertisements. It’s not about establishing a single identifier to succeed the cookie. The truly future-proof solutions will be the ones that connect all areas of data input that collect audience identifiers, whether those are mobile IDs, hashed emails, first-party data, contextual data or other unique identifiers.


US influencer spending to surpass $3 billion in 2021

TLDR
  • Influencer marketing is expected to exceed $3 billion in 2021 and will surpass $4 billion next year. 
  • Influencer marketing spending is defined as payments made to influencers or their representatives to promote products and services primarily on social media and other platforms featuring user-generated content.
Brief

Influencer marketing grew 14.4% last year, as the pandemic put a strain on many marketers’ budgets. In 2021, influencer marketing spend in the US to grow 33.6% to reach $3.69 billion in 2021. It's estimated that Instagram is the market leader with roughly half the market, while YouTube and Facebook see a significant amount of spending as well. TikTok is likely smaller but growing quickly. Both US social network ad spending and influencer marketing spending will continue to grow in tandem as marketers allocate more of their budgets to social media.

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