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By Aisling Ní Chúláin

If we’ve learned anything about new means of communication over the last century, it’s that where technology attracts people’s eyes and ears, advertisers won’t be long chasing after them.

It’s been the case with radio, cinema, TV, the Internet and social media, so it seems almost impossible that it won’t be the case in the so-called metaverse – the new fully realised, shared universe that companies like Meta are proposing to build.

In perhaps a sign of things to come, a host of brands have already dipped their toes into gaming metaverses, hosting virtual fashion shows and dropping exclusive collections in game.

Luxury fashion houses like Louis Vuitton, Valentino and Marc Jacobs have all designed digital items for the social simulation game Animal Crossing – and Balenciaga has collaborated with Fortnite on an exclusive drop of wearable skins for in-game characters, to name but a few.

‘Think about it as placement in the product instead of product placement’

But now that Meta, a targeted advertising powerhouse, has staked its claim to the metaverse, some experts are raising the alarm about the specific implications immersive advertising will have for user privacy, safety and consent.

“When you think about advertising in XR, you should think about it as placement in the product instead of product placement,” Brittan Heller, counsel with American law firm Foley Hoag and an expert in privacy and safety in immersive environments, told Euronews Next.

“The way that advertising works in these contexts is a little different because you seek out the experiences. You like the experiences,” she explained.

We’re rapidly moving into a space where your intentions and your thoughts are substantial data sets that have technological importance in a way that they didn’t before.

Brittan Heller
Human Rights Counsel – Foley Hoag LLP

“An ad in virtual reality may look like buying a designer jacket for your digital avatar [but] that’s an ad for a clothing company that you are wearing on your body”.

“It may look like buying a game that puts you into Jurassic Park – [but] what better way to advertise the movie franchise than to actually put you in the experience of being in Jurassic Park?”

What is biometric psychography?

The problem here, according to Heller, is that in the metaverse, the capability for harvesting biometric data and using that sensitive data to target ads tailored to you, goes far beyond the considerable amount of data Facebook already uses to build our consumer profiles.

If the technology that Meta is promising comes to fruition, the possibility exists that a form of targeted advertising which tracks involuntary biological responses could be proliferated.

The risk that I think we’ve learnt from Cambridge Analytica is that privacy risks come into play when you have the combination of unanticipated data sets, especially when you’re looking at emerging technology.

Brittan Heller
Human Rights Counsel – Foley Hoag LLP

For VR headsets to work in this environment, Heller says, they will have to be able to track your pupils and your eyes.

This means advertisements could be tailored according to what attracts or holds your visual attention and how you physically respond to it.

Heller has coined a term for this combination of one’s biometric information with targeted advertising: biometric psychography.

If an entity had access to biometric data such as pupil dilation, skin moistness, EKG or heart rate – bodily indicators that happen involuntarily in response to stimuli – and combined it with existing targeted advertising datasets, it would be “akin to reading your mind,” Heller said.

“The type of information you can get from somebody’s pupil dilation, for example – that can tell you whether or not somebody is telling the truth. It can tell you whether or not somebody is sexually attracted to the person that they’re seeing,” she explained.

“We’re rapidly moving into a space where your intentions and your thoughts are substantial data sets that have technological importance in a way that they didn’t before”.

“The risk that I think we’ve learnt from Cambridge Analytica is that privacy risks come into play when you have the combination of unanticipated data sets, especially when you’re looking at emerging technology”.

Regulating the metaverse

Heller believes that biometric laws in the United States are insufficient in protecting users from use or misuse of this kind of data because “biometrics laws in the States are defined by protecting your identity, not protecting your thoughts or your impulses”.

With the metaverse, the risk remains that the pace of development of the technology will outstrip the ability of institutions to regulate them effectively as has arguably been the case with social media platforms.

In light of the fact that companies hoping to build the metaverse are multinational and operate across borders, Heller believes the most effective way to deal with these issues of user protection is a “human rights based approach”.

“There are many stakeholders in this, there’s civil society, there are public groups, there are governments and then there are intergovernmental organisations as well,” she explained.

“A human rights approach has been the way that we’ve been able to bring all of these players and their concerns together and make sure that everybody is heard”.

But what can companies do to protect people in the metaverse?

If tech organisations are serious about guaranteeing users’ digital rights in immersive environments, it will depend on them being open about the technology they are developing.

“I would want companies to be more transparent with the functionality of their technologies, not just their intentions and their business plans, but how this will work,” Heller said.

“That will help lawmakers ask the questions that they need to protect the public and to cooperate with each other for trans border technology”.

By Aisling Ní Chúláin

Sourced from euronews.next

Sourced from BUSINESS INSIDER India

Meta, the parent company of Facebook, has announced new plans for creators to bypass 30 per cent App Store fees that Apple charges on transactions, as it prepares to build Metaverse.

In a Facebook post, Meta CEO Mark Zuckerberg said that as we build for the metaverse, we’re focused on unlocking opportunities for creators to make money from their work.

“The 30 per cent fees that Apple takes on transactions make it harder to do that, so we’re updating our Subscriptions product so now creators can earn more,” he posted.

Zuckerberg said that the company is launching a promotional link for creators for their Subscriptions offering. A

“When people subscribe using this link, creators will keep all the money they earn (minus taxes). Creators will have more ownership of their audience — we’re giving the ability for them to download the email addresses of all of their new subscribers,” he explained.

An investigation by The Financial Times has found that Snapchat, Facebook, Twitter, and YouTube lost around $9.85 billion in revenue after Apple introduced App Tracking Transparency (ATT) policy last year.

Advertisement technology company Lotame estimated that the four tech platforms lost 12 per cent of revenue in the third and fourth quarters, which roughly translates into $9.85 billion.

Zuckerberg said that Meta is also launching a bonus programme that pays creators for each new subscriber they get “as part of our $1 billion creator investment announced this summer”.

The new iOS App Store policy requires apps to ask permission to track users’ data. The policy went into effect in April, barring apps from tracking users if they opt out.

Facebook lost the most money “in absolute terms” when compared to other social platforms due to its huge size.

“Facebook has the most to lose because the cost of running advertisements on its platform has been increasing for years,” the Financial Times report said.

Since the introduction of the Apple iOS policy, most users have opted out, leaving advertisers in the dark about how to target them.

Zuckerberg has slammed Apple for its App Store policies in the past, saying the iOS privacy changes are negatively affecting its business.

“Apple’s changes are not only negatively affecting our business, but millions of small businesses, and what is already a difficult time for them and the economy,” he said last month.

Sheryl Sandberg, Facebook’s Chief Operating Officer, said that the biggest impact to them has come from iOS 14 changes which advantaged Apple’s own advertising business.

Feature Image Credit: IANS

Sourced from BUSINESS INSIDER India

By Carlie Porterfield

Topline Just ten publishers are responsible for nearly 70% of user interactions with content that denies climate change on Facebook, according to a study released Tuesday by the Centre for Countering Digital Hate, which found that far-right news outlet Breitbart is the leading source of misinformation on the platform.

The ten outlets, branded as the “Toxic Ten” by the CCDH, have a combined 186 million followers on social media, not accounting for overlap, and have brought in a collective $5.3 million in Google advertising revenue in the past six months alone, according to the study.

Breitbart led the way, the study found, with the alt-right website once headed by President Donald Trump’s former strategist Steve Bannon capturing about 17% of all platform engagement with climate change misinformation analysed by the CCDH.

Close behind was The Western Journal, a Phoenix-based conservative news and politics website  responsible for nearly 16% of engagement.

In September last year, Facebook launched a new Climate Science Information Center and pledged in February to attach labels to posts about climate change and to expand fact-checking in a move to combat misinformation, but 92% of the climate change misinformation reviewed by the CCDH was not labelled by Facebook and 99% had no additional context or fact-checking attached.

The CCDH used Newship, a social media analytics tool, to identify 7,000 Facebook posts featuring climate change denial and to calculate engagement rates between October 2020 and October 2021.

Tangent

Following Breitbart and the Western Journal, the rest of the top ten outlets publishing climate change denial content according to the study are Newsmax, Townhall Media, the Media Research Centre, the Washington Times, the Federalist Papers, the Daily Wire, Russia Today and the Patriot Post.

Contra

The CCDH used a “flawed methodology” that overstates the scale of climate change misinformation on the platform and is “designed to mislead people,” Facebook said in a statement to Forbes. The narrow sample examined by the CCDH only made up roughly 0.3% of the over 200 million interactions of Pages and public group English-language content, the platform said. Facebook said it actively reduces distribution of content fact-checkers rate as false or misleading and also rejects ads that have been debunked, according to the statement.

Key Background

Facebook has repeatedly come under fire over the amount of misinformation distributed and shared on the platform. Amid the coronavirus pandemic, content spreading misleading claims about the origins of the virus and the safety and efficacy of vaccines has become particularly problematic. In July, President Joe Biden said Facebook and other social media platforms where coronavirus vaccine misinformation spreads are “killing people.” Last week, a whistle-blower released thousands of documents to media companies that allege Facebook and CEO Mark Zuckerberg let celebrities and politicians break the platform rules and makes exceptions for right-wing news sites, specifically Breitbart, when they post misinformation. The CCDH is a British non-profit that campaigns for big tech companies to tackle misinformation and hate speech on their platforms. In the study, CCDH called on Google and Facebook to stop accepting advertising dollars from the outlets and for Facebook to follow through on its pledge to label climate change denial posts.

Feature Image Credit: Getty Images

By Carlie Porterfield

I am a Texas native covering breaking news out of New York City. Previously, I was an editorial assistant at the Forbes London bureau.

Sourced from Forbes

By Rolf Illenberger

Mark Zuckerburg’s metaverse is one of avatars and virtual experiences—with an interface that looks eerily like if “The Sims” met Google Glass. And he just bet the future of his trillion-dollar company on it.

We’ve seen the eye candy, including the Billie Eilish / Beat Saber commercial that’s inescapable to American TV viewers these days. The rhythm-based VR video game looks cool. Not totally practical, but eye-catching.

What we haven’t seen—more damning to Meta’s brand than its new logo—is a pathway to sustainability and success. How do you generate consumer interest in the metaverse experience? How do you recreate the market share and market dominance that Facebook had during its period of rapid growth? How do you fend off threats, either through acquisition or innovation, like the social media giant did with Instagram and Snapchat? How do you sell the Metaverse to advertisers, fundamental in Facebook’s profitability? And are they even interested in the first place?

When Facebook declared its IPO in 2012, it answered the concern of critics who wanted to understand how the company would eventually make money. It accomplished this by tinkering with the algorithm, parting ways with a linear timeline for nearly a billion users in favour of EdgeRank, which gave big-pocketed advertisers a means to place themselves on the News Feeds of millions with favourable CPM rates. When the company acquired Instagram in 2013, users knew it would ultimately mean the end of that brand’s linear timeline in favour of the same ad-friendly mechanism.

But users are the biggest challenge for Meta’s foray into metaverse dominance. There simply aren’t enough of them to entice advertisers at the moment. Oculus has only sold 1.87 million units of its Quest 2 headset to date and rough data has nearly 17 million VR headsets sold across all brands to date. By comparison, Apple sold 60 million AirPods in 2019 alone and approximately 100 million all-time.

Apple’s mixed reality headset is rumoured to launch at some point in 2022, which will certainly play with the brand’s avid following of phone, wristwatch, earphone and laptop consumers.

In what could be considered a fitness metaverse, or community for those beyond coining buzzwords, Peloton has sold 2.33 million units to date at a price point 4-6 times the Quest 2.

Other aspects of a metaverse are already fairly well established, like online gaming, cryptocurrencies, NFTs, gaming and virtual events—all of which have been further amplified due to the COVID-19 pandemic.

If Facebook/Meta was going to build something on-par with its near-monopoly of the social media space a decade ago, it might not have the cash or infrastructure this late in the game. ByteDance, the parent company of TikTok, has already announced their intention to go toe-to-toe with Facebook from a hardware standpoint by acquiring Pico Interactive. And a recent major advertising campaign suggests that, with China’s financial backing, Facebook might be facing its greatest competitive threat to date.

The brands and advertisers that drive Facebook’s bottom line currently are also aware that they’ll want to own and control more of the metaverse experience, which they weren’t able to do with social media. When Facebook, Twitter and Instagram first appeared, most corporate entities delegated the management of these new platforms to inexperienced employees as Zuckerberg amassed his power. Now, digital heads, agencies and the C-suite will be more aggressive in wanting to build and sustain a metaverse strategy that they can own and isn’t subject to algorithms they might not control. They probably prefer a more disjointed metaverse at the end of the day.

That’s all without mentioning that there is already intense user backlash over Facebook/Meta’s desire to tie every Oculus device to a Facebook account—part of the financial model to profitability, opening up users to targeted advertising. The business-targeted Oculus Quest 2 device will set you back $500 more but won’t force you to part with your data.

While Zuckerberg’s vision to unite the metaverse under a single umbrella will fail, the future of the metaverse won’t. Like 3D printing a decade ago, which futurists the early adopters and most successful use cases will fall in the B2B space. 3D printing has changed our access to PPE (Personal Protective Equipment), car parts, medical and dental devices, hearing aids and even 3D-printed homes are starting to turn up as an affordable housing solution.

The metaverse will do the same—B2B adaptation leading the way as B2C consumers dip their toes in the water on whether or not the technology is for them.

For instance, auto manufacturers need new ways to display cars to interested buyers. It’s becoming more and more common for customers to buy houses based on VR technology. HR departments need ways to recruit the best talent, especially as remote work becomes more commonplace. My company, VRdirect, has offered B2B clients the opportunity to do this with relative ease, using software that allows anyone to become a creative.

Even in a disjointed metaverse, benefits like the environmental impact of reduced business travel become obvious, especially when it comes to our personal carbon footprint. There’s also the added benefit of work-life balance gained by not having to go on that business trip or not having to commute to that big meeting.

But we’re still a social species at heart. One of the things Zuckerberg got right with social media was our desire to weave an in-person experience with our desire to talk about it online. The thought that humans will have the same thirst about a strictly digital metaverse experience remains to be seen.

Feature Image Credit: Remy Gieling via Unsplash

By Rolf Illenberger

Rolf Illenberger is the founder, CEO and managing director of VRdirect, a platform that allows anyone to create and publish VR experiences, with an emphasis on enterprise users.

Sourced from Worth

By Kana Ruhalter

Facebook announced that it will be shutting down its controversial facial recognition system this month, the New York Times reports. The embattled social-media giant says it will be deleting the face scan data of over a billion users, a move that comes during a tumultuous time for the company, as it’s been met with fierce scrutiny over privacy and regulation concerns and is the subject of official probes.

Jerome Pesenti, vice president of artificial intelligence at Meta—Facebook’s newly-rebranded parent company—explained why the network was axing the system in a blog post: “We need to weigh the positive use cases for facial recognition against growing societal concerns, especially as regulators have yet to provide clear rules.”

The facial-recognition system identifies people through pictures uploaded onto Facebook and suggests the users “tag” and link friends’ accounts in the photos. Growing concern about the abuse of such software—including by China’s government, as it tracks the minority Uighur population, and by law-enforcement in the United States—has prompted immense criticism.

Read it at New York Times

Feature Image Credit: Justin Sullivan/Getty Images

By Kana Ruhalter

Sourced from Daily Beast

Sourced from TECH2

The metaverse is a world of endless, interconnected virtual communities where people can meet, work and play, using virtual reality headsets, augmented reality glasses, smartphone apps or other devices.

The term “metaverse” seems to be everywhere. Facebook is hiring thousands of engineers in Europe to work on it, while video-game companies are outlining their long-term visions for what some consider the next big thing online.

The metaverse, which could spring up again when Facebook releases earnings Monday, is the latest buzzword to capture the tech industry’s imagination.

It could be the future, or it could be the latest grandiose vision by Facebook CEO Mark Zuckerberg that doesn’t turn out as expected or isn’t widely adopted for years — if at all.

Plus, many have concerns about a new online world tied to a social media giant that could get access to even more personal data and is accused of failing to stop harmful content.

Here’s what this online world is all about:

What is the metaverse?

Think of it as the internet brought to life, or at least rendered in 3D. Zuckerberg has described it as a “virtual environment” you can go inside of — instead of just looking at on a screen. Essentially, it’s a world of endless, interconnected virtual communities where people can meet, work and play, using virtual reality headsets, augmented reality glasses, smartphone apps or other devices.

It also will incorporate other aspects of online life such as shopping and social media, according to Victoria Petrock, an analyst who follows emerging technologies.

“It’s the next evolution of connectivity where all of those things start to come together in a seamless, doppelganger universe, so you’re living your virtual life the same way you’re living your physical life,” she said.

But keep in mind that “it’s hard to define a label to something that hasn’t been created,” said Tuong Nguyen, an analyst who tracks immersive technologies for research firm Gartner.

Facebook warned it would take 10 to 15 years to develop responsible products for the metaverse, a term coined by writer Neal Stephenson for his 1992 science fiction novel “Snow Crash.”

What will I be able to do in the metaverse?

Things like go to a virtual concert, take a trip online, and buy and try on digital clothing.

The metaverse also could be a game-changer for the work-from-home shift amid the coronavirus pandemic. Instead of seeing co-workers on a video call grid, employees could see them virtually.

Facebook has launched meeting software for companies, called Horizon Workrooms, to use with its Oculus VR headsets, though early reviews have not been great. The headsets cost $300 or more, putting the metaverse’s most cutting-edge experiences out of reach for many.

For those who can afford it, users would be able, through their avatars, to flit between virtual worlds created by different companies.

“A lot of the metaverse experience is going to be around being able to teleport from one experience to another,” Zuckerberg says.

Tech companies still have to figure out how to connect their online platforms to each other. Making it work will require competing technology platforms to agree on a set of standards, so there aren’t “people in the Facebook metaverse and other people in the Microsoft metaverse,” Petrock said.

Is Facebook going all in on the metaverse?

Indeed, Zuckerberg is going big on what he sees as the next generation of the internet because he thinks it’s going to be a big part of the digital economy. He expects people to start seeing Facebook as a metaverse company in coming years rather than a social media company.

A report by tech news site The Verge said Zuckerberg is looking at using Facebook’s annual virtual reality conference this coming week to announce a corporate name change, putting legacy apps like Facebook and Instagram under a metaverse-focused parent company. Facebook hasn’t commented on the report.

Critics wonder if the potential pivot could be an effort to distract from the company’s crises, including antitrust crackdowns, testimony by whistleblowing former employees and concerns about its handling of misinformation.

Former employee Frances Haugen, who accused Facebook’s platforms of harming children and inciting political violence, plans to testify Monday before a United Kingdom parliamentary committee looking to pass online safety legislation.

Is the metaverse just a Facebook project?

No. Zuckerberg has acknowledged that “no one company” will build the metaverse by itself.

Just because Facebook is making a big deal about the metaverse doesn’t mean that it or another tech giant will dominate the space, Nguyen said.

“There are also a lot of start-ups that could be potential competitors,” he said. “There are new technologies and trends and applications that we’ve yet to discover.”

Video game companies also are taking a leading role. Epic Games, the company behind the popular Fortnite video game, has raised $1 billion from investors to help with its long-term plans for building the metaverse. Game platform Roblox is another big player, outlining its vision of the metaverse as a place where “people can come together within millions of 3D experiences to learn, work, play, create and socialize.”

Consumer brands are getting in on it, too. Italian fashion house Gucci collaborated in June with Roblox to sell a collection of digital-only accessories. Coca-Cola and Clinique have sold digital tokens pitched as a stepping stone to the metaverse.

Zuckerberg’s embrace of the metaverse in some ways contradicts a central tenet of its biggest enthusiasts. They envision the metaverse as online culture’s liberation from tech platforms like Facebook that assumed ownership of people’s accounts, photos, posts and playlists and traded off what they gleaned from that data.

“We want to be able to move around the internet with ease, but we also want to be able to move around the internet in a way we’re not tracked and monitored,” said venture capitalist Steve Jang, a managing partner at Kindred Ventures who focuses on cryptocurrency technology.

Will this be another way to get more of my data?

It seems clear that Facebook wants to carry its business model, which is based on using personal data to sell targeted advertising, into the metaverse.

“Ads are going to continue being an important part of the strategy across the social media parts of what we do, and it will probably be a meaningful part of the metaverse, too,” Zuckerberg said in the company’s most recent earnings call.

That raises fresh privacy concerns, Nguyen said, involving “all the issues that we have today, and then some we’ve yet to discover because we’re still figuring out what the metaverse will do.”

Petrock she said she’s concerned about Facebook trying to lead the way into a virtual world that could require even more personal data and offer greater potential for abuse and misinformation when it hasn’t fixed those problems in its current platforms.

“I don’t think they fully thought through all the pitfalls,” she said. “I worry they’re not necessarily thinking through all the privacy implications of the metaverse.”

Feature Image: Mark Zuckerberg has described the metaverse as a “virtual environment” you can go inside of — instead of just looking at on a screen.

Sourced from TECH2

By

  • Facebook and Google worked together to circumvent Apple’s privacy measures, 12 state attorneys general argued in an updated legal complaint from 2020.
  • Apple’s privacy tools have made it harder for other tech companies to pinpoint users for their ad auction model.
  • Regulators and other tech companies have targeted each other in a larger antitrust battle over user privacy, ad technology, and market dominance.

Google worked with Facebook to undermine Apple’s attempts to offer its users great privacy protections, 12 state attorneys general alleged in an update to an antitrust lawsuit against the search engine.

“The companies have been working together to improve Facebook’s ability to recognize users using browsers with blocked cookies, on Apple devices, and on Apple’s Safari Browser,” the amended complaint states. “Thereby circumventing one Big Tech company’s efforts to compete by offering users better privacy.”

The lawsuit was first filed by the attorneys general in December 2020, accusing Google of engaging in market collusion, and focused on claims that Facebook and Google had agreed to cooperate if their pact ever came under regulatory scrutiny.

The attorneys general also accused Facebook and Google of engaging in an illegal advertising deal, with the latter leveraging monopoly power over its adtech business by helping Facebook make better bids in ad auctions, which would make it easier for Facebook content to appear in more Google Ads.

“Facebook has long supported fair and transparent advertising auctions in which all bidders compete simultaneously, and the highest bidder wins,” a Facebook spokesperson said in an emailed statement. “Facebook’s non-exclusive bidding agreement with Google and the similar agreements we have with other bidding platforms, have helped to increase competition for ad placements.”

According to a discussion between Facebook employees in 2019, the complaint says, the company was having trouble matching users on Apple’s Safari browser. Google said Facebook’s user match rates were the same as other ad auction parties, but Facebook employees noted that the search company was willing to use Javascript to help Facebook better recognize those users.

The attorneys general claimed Facebook essentially baited Google into the deal, but Google denies the lawsuit’s claims.

A Google spokesperson told Insider: “Just because Attorney General Paxton asserts something doesn’t make it true. This lawsuit is riddled with inaccuracies. In reality, our advertising technologies help websites and apps fund their content, and enable small businesses to reach customers around the world. There is vigorous competition in online advertising, which has reduced ad tech fees, and expanded options for publishers and advertisers. We will strongly defend ourselves from his baseless claims in court.”

Apple in recent years has ramped up its user privacy efforts. In 2018, Apple installed privacy protection measures into its products, like Safari, which required websites to request tracking privileges from users and discard cookies if a site had not been visited in 30 days.

This summer, Apple rolled out its App Tracking Transparency tool, which prompts users to opt in or out of tracking on different applications — which largely impacted companies like Facebook. A Safari privacy report also detailed how websites track users.

The three companies have been at the center of several antitrust discussions, facing action from government regulators and each other. The Federal Trade Commission filed a lawsuit against Facebook claiming the company had monopolized power in the social networking market, but the suit was dismissed by a federal judge in June. Facebook was also reportedly preparing an antitrust lawsuit against Apple in regards to its App Store rules, saying Apple was stifling third-party app developers.

Congress also introduced five tech regulation bills in June, specifically directed at the “Big Four” — Facebook, Google, Apple, and Amazon. The bills would equip regulators with more methods to check tech firms from holding too much market power.

(This story has been updated to reflect in the third paragraph that it was Facebook and Google who reportedly agreed to cooperate, not Apple).

Feature Image Credit: Facebook CEO Mark Zuckerberg, Google CEO Sundar Pichai, and Apple CEO Tim Cook. Daniel Leal Olivas/WPA/AP, Justin Sullivan/Getty Images, & Karl Mondon/Digital First Media/The Mercury News/Getty Images

By

Sourced from Insider

By

The question: What would it take for advertisers to give Facebook the boot? The answer isn’t as inspiring as one might think.

The findings: Advertisers on the whole are sticking with the platform—but there’s still a split between who will stay and who might go.

  • Performance marketers like mobile app advertisers, for example, use Facebook predominantly to drive app installs. Facing aggressive revenue targets and typically operating under the radar as brands, those companies are less likely to take part in advertiser initiatives like brand safety boycotts.
  • That’s more likely to happen among bigger, institutional brands, such as Coca-Cola, Nike, and Procter & Gamble, which have more of a stake in how consumers perceive them. These highly visible brands are often looking for brand exposure, which allows them to shift spending to other channels—since the top of the funnel offers more advertising options.

The marketer’s point of view: While Facebook has issues, it’s important to remember some companies have performed well by relying on the company’s ad ecosystem.

  • Some of the advertisers eMarketer spoke with have indicated that they’re diversifying into different channels in order to ensure they aren’t overly dependent on the Facebook ecosystem.
  • “I think there is something to be said for the CPM [cost-per-thousand] increase. It’s much more expensive than it was last year. There’s no question there,” said Avi Ben-Zvi, vice president of paid social at Tinuiti.
  • But rising CPMs only account for a fraction of his increased Facebook spend year over year, Ben-Zvi added. He said he’s seen a major increase in investment for mid-funnel consideration campaigns on Facebook that are designed to fuel the bottom of the funnel.

Our analysts weigh in:

  • “Facebook has weathered multiple scandals and headwinds in the past and continued to grow, indicating that advertisers will continue to spend on Facebook despite negative public perception,” said Jasmine Enberg, eMarketer senior analyst at Insider Intelligence. “What’s different this time is that Facebook is facing a real potential threat to its ad business.”
  • “Brand safety is a noble concern and something that many major companies think seriously about, but when it comes to their ad expenditures, the bottom line often ends up being more important,” said Debra Aho Williamson, eMarketer principal analyst at Insider Intelligence. “If ad performance were to start suffering, advertisers will look to other media. But brand safety concerns alone aren’t going to drive most advertisers away.”
  • “Measurement and attribution problems are causing performance declines for advertisers, especially ones focused on the lower funnel,” said Audrey Schomer, eMarketer senior analyst at Insider Intelligence. Schomer sees that advertisers are confused by a lack of clarity regarding what’s causing performance to go down: Is targeting particularly challenged by iOS users opting out of tracking? “That could be having some impact on performance, though most advertisers I’ve spoken with believe it’s primarily an attribution problem,” Schomer said.

By the numbers: Even in light of the whistle-blower news, our upcoming Facebook ad revenue forecast won’t be making any big downward adjustments.

  • Facebook’s net ad revenues for 2023 will actually be higher than previously forecast, but growth will be a little bit slower.
  • “The biggest thing that’ll come out of the whistle-blower revelations and platform outage is that advertisers will look to diversify their spending more,” said Nazmul Islam, forecasting analyst at Insider Intelligence. “While you won’t see a big drop in Facebook spending overall, you might see a bit more growth in the other social platforms that benefited from last year’s Facebook ad boycott.”

The big takeaway: Some advertisers may pull back spending due to negative public perceptions of the platform, but those pullbacks have so far tended to be temporary.

  • Advertisers won’t leave Facebook until there is real evidence that campaign performance is hurting, and until there is a better option for them to go to.
Facebook Ad Revenue Growth, 2018-2023 (billions and % change)

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Sourced from eMarketer

By Ryan Barwick

The company can tell which way the wind is blowing.

Advertisers are going to start finding a larger audience across Facebook’s apps.

The company announced in a blog post Monday that, unless someone links their accounts together, it will consider an individual user’s Instagram and Facebook accounts as two separate people—at least from an advertiser’s perspective.

  • Previously, Facebook counted someone with a Facebook and Instagram account as one person using identifiers like email, even if these accounts weren’t officially linked up.

Why the change? Facebook can tell which direction the wind is blowing.

“This update aligns with trends of offering people more control over how their information is used for ads and is consistent with evolving advertising, privacy, and regulatory environments,” wrote Facebook’s VP of product marketing, Graham Mudd.

Though he said pre-campaign audience estimates will look larger, “we do not believe this will have a substantial impact on reported campaign reach.”

  • Facebook said it’s been telling advertisers that changes were coming since June.

Refresh: It’s been quite a few weeks for advertisers on the Book.

In September, the company acknowledged that Apple’s privacy updates were more disruptive than advertisers initially expected, leaving marketers “blind” to Facebook’s campaign metrics.

Weeks later, whistle-blower Frances Haugen disclosed internal documents and accused Facebook of misleading advertisers, specifically its “shrinking user base” and how it counts the number of people using its platform.—RB

Feature Image Credit: Pexels

By Ryan Barwick

Sourced from Marketing Brew

By

Good SEO and content strategy can help ecommerce store owners be less reliant on paid traffic.

Search Engine Optimization (SEO) has become a buzz word over the last few years. Many areas of online business have been implementing solid SEO strategies for a while, but ecommerce is still slow to join the rest. Ecommerce stores have been trained to use paid methods, like Google Shopping Ads, Facebook Ads and other social media ads to get people to click through to their store. However, with the ever-increasing cost it takes to acquire new customers, ecommerce store owners should get on board with SEO and develop a solid content strategy for long-term growth and reduce their cost to acquire new potential customers.

The one-legged stool

As I mentioned earlier, the cost of bringing new customers to your ecommerce store is going to keep increasing. If your store is solely reliant on paid traffic, let’s say from Google Shopping, and Google decides you violated one of the many advertising policies, all your traffic dries up and you’re out of business. No traffic means no sales and no sales means you’re out of business by the end of the month.

Relying solely on paid traffic channels is like having a one-legged stool. It’s a lot more secure for the health and longevity of your business to have more legs under the stool, in case one leg gets taken away from you. SEO is one of those legs you need to apply. Not only is it free traffic, but as long as you provide valuable information for the readers, there’s no risk of being removed in the same way paid channels can shut you out.

The results of a well-executed SEO and content strategy take time. Often, an ecommerce store won’t see significant organic traffic for 6 to 12 months after publishing those first pieces of content. But if you keep implementing and producing solid, helpful content, the effects compound over time.

I got banned from Google and Facebook

I share all this from my own experience as an ecommerce store owner. I relied solely on Google and Facebook ads to get traffic and for some unknown reason back in early 2019 both platforms decided I had violated a policy. After that point, I couldn’t get back in their good books.

I went down the SEO rabbit hole out of desperation to get some traffic and started producing content that shoppers in the research phase would find helpful. I put out other content about the best products by category to help customers choose wisely, and when those pieces of content started ranking, I was getting more traffic than ever. To give you an idea of the timeline, I started publishing content in February 2019, and by June I was already getting traffic and sales. Over time, the traffic kept growing and I kept producing helpful content. In 2020, I generated over $2 million in sales from that organic strategy from only one ecommerce store.

If I hadn’t gotten started with SEO I’d be out of business today.

Get started before you need to

Don’t do what I did and wait for the wheels to fall off after one or more paid channels drop the ban hammer. Start by writing a couple of pieces of content to get started. You don’t need a five-year content strategy on day one.

For ideas on what to write, you can write a guide to your niche and what to look out for when choosing the right product. You can answer the most frequently asked questions you receive. When people type that question into the search engine and your post helps them out, you will be recognized over time as the go-to place for research and answers. Then people will grow to trust your store and will prefer to purchase from you.

There are literally thousands of blog topics that you can produce to get more traffic, but the important thing is to get started. Over time, you will learn some more advanced content strategies that you can apply to create a better ranking chance. If you can implement some semblance of a content plan into your ecommerce store and stick to it, you’ll look back in a year and wonder why you paid so much for visitors in the first place.

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John Murphy is the founder of Survivalist, a seven-figure ecommerce business that’s growing fast.

Sourced from Entrepreneur Europe