Home Daily News Roundup Targeting The Influential; Who’s Doing The Shopping, Really?

Targeting The Influential; Who’s Doing The Shopping, Really?

SHARE:

Under The Influence

Influencer culture might be good for brands, but the shilling has serious implications for consumers.

A lot of viewers develop “parasocial relationships” that persuade them to buy anything their favorite influencer suggests, explained Mara Einstein, former marketing professional and author of the book “Hoodwinked: How Marketers Use the Same Tactics as Cults,” to The Verge.

Once someone spends enough time watching their favorite creator, they develop a feeling of intimacy, she said – and they’re much more willing to follow the advice of someone they trust.

Plus, with hyper-personalized ad targeting and increased media fragmentation, “there is no one TV commercial” that practically every household is seeing on a regular basis, writes The Verge. Instead, users are deluged with product recommendations everywhere they look, sometimes – like in influencer marketing – speaking directly to them.

This oversaturation has sparked waves of criticism, including blaming influencers for “perpetuating [the] cycle” of overconsumption in order to line their own pockets.

But despite pushback, “the draw of the influencer is powerful,” says The Verge. “Even if you cannot become her, you can own the same things she does.”

The AI Grocery List

One important difference between finding information via agentic AI vs. traditional web searches (e.g., Google.com) is that AI responses are extremely limited. 

Google Search pages feature many paid placements, such as in the Google Maps sidebar, a shopping carousel, sponsored links, etc., often many at once. And then there’s the organic search content. That’s a lot to scroll. 

A ChatGPT prompt for a place to see a movie, say, or for sugar-free sodas, is going to return a much narrower set of options. 

This is an interesting conundrum for anyone trying to use AI to precisely insert themselves into how consumers are finding things out. 

For example, yesterday, Walmart and Pinterest announced a new partnership that makes recipe ideas on the social platform as click-to-buy options for online groceries at Walmart. The New York Times and Instacart did a similar integration last year. 

These solutions are enabled by AI. Retailers and recipe publishers have long partnered on preset, click-to-buy recipes. But a genuine integration across all potential recipe-inspiration content requires AI to understand what the recipe calls for and what’s available at that person’s nearby store.

The billion-dollar question for big CPG brands is how to end up on that AI’s shopping list.

If They Wish

There is an insidiousness to advertising. Anyone with a desirable product knows it. Mark Zuckerberg himself pushed an ad-free Facebook about as far as it would go. The founders of Instagram, Netflix, Uber and countless other consumer tech and media startups knew it as well. 

Like a vampire, once ad revenue has been invited in, it can’t be kept out. 

Which is a preface to FIFA’s decision that next year’s men’s World Cup will have mandatory three-minute “hydration breaks” during each half, regardless of temperature, the Athletic reports. 

Advertising often disguises itself in other incentives: Advertising is personalization; it’s privacy software; it’s AI; and for brick-and-mortar chains with retail media networks, advertising can somehow fall under asset protection (jargon for anti-shoplifting).

FIFA frames the hydration breaks as entirely about player welfare. Which, fair enough, when games are played in the scorching heat. 

But the new policy is also quite evidently a gift to broadcast partners. It manufactures six minutes of ad time per game that otherwise wouldn’t exist.

“The hydration breaks will also allow broadcasters to air more mid-game commercials, if they wish,” as the Athletic puts it.

But Wait! There’s More

Google has told advertising clients it plans to launch ads in the Gemini AI product shortly. [Adweek]

ChatGPT is good for publisher visibility, but bad for traffic. [Search Engine Journal] 

Does Netflix’s acquisition of Warner Bros. Discovery cross antitrust regulations? Donald Trump certainly thinks so. [Bloomberg] 

That is, if the acquisition happens at all, now that Paramount has launched a hostile bid. [Variety] 

Meta avoids daily fines in the EU with a new proposal to use less personal data for ad targeting. [Reuters] 

Samba TV raises $60 million in debt with a plan to scale by acquisition. [Axios]

Uber launches a new insights platform using LiveRamp’s data clean room for improved ad targeting. [Business Insider] 

Must Read

Sports Leagues Can’t Stop Putting Ad Revenue Ahead Of Fan And Player Interests

Disaffection and outright anger toward US sports institutions run deeper than logo-cluttered fields. Leagues and teams are sacrificing player safety and fan enjoyment for marketing dollars.

Comic: Traffic Jam

With Search Traffic Down 70%, People Inc. Bets On Revenue Beyond Site Visits

People Inc.’s referral traffic from Google search is down 70% over the past two years, and by 26% in Q3 alone. But its digital revenue is still growing, albeit slowly.

Chord Buys Its Rival Zenlytic To Build An Agentic Version Of A CDP

On Tuesday, Chord, a six-year-old commerce tech startup, acquired Zenlytic, an AI startup with an anthropomorphized data analyst agent named “Zoë,” for $5 million.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Tal Jacobson, CEO, Perion

Affle Acquires Perion For $420 Million, Because ‘Synergies’

If you ask the executive leadership of Affle and Perion why the two companies are merging, the answer you’ll get is “synergies.”

Konskie, Poland - December 02, 2024: Fox Corporation logo displayed on mobile phone

Fox Doesn’t Want To Talk About Roku, But It’s Got Lots To Say About Tubi And Politics

A combo of Tubi, sports and political ads powered Fox’s growth this last quarter, even as Fox News lost viewers and the Roku deal awaits DOJ clearance.

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

Smart Acquisition Or Frankenstack? Stagwell-Freestar And DoorDash-Instacart

It’s fall, and M&A is in the air. Two acquisitions happened this week: Stagwell bought Freestar, and DoorDash bought Instacart.