May Marketing Chatter: Google's Big Leak, Hello GPT4-o, and New Prime Video Ad Formats
Marketing never stops moving. Wpromote's monthly Marketing Industry Chatter newsletter will keep you up-to-date on the biggest headlines, updates, and trends in the wide world of marketing and media—with the expert insights you need to take action.
Summer is quickly approaching and with it comes sweltering temperatures, the promise of vacation, and some smoking hot marketing news.
From Google's great leak and new Prime Video ad formats to tighter marketing budgets, here's the breakdown of the most important industry updates from May.
Leaked internal Google docs reveal secrets driving rankings
What you need to know: A vast trove of internal Google documents were leaked and shared with Rand Fishkin and Michael King, who reviewed and analyzed the documents over this weekend.
The leak reveals detailed information about Google’s ranking factors, data collection methods, and internal systems that contradict some of Google’s public statements and offer a deeper understanding of the mechanisms behind search result rankings.
Key takeaways include confirmation that link diversity and relevance remain important ranking factors, Google uses data on user clicks through its NavBoost system to improve search result quality, and Chrome browser data is used in search rankings, specifically page quality scores and sitelink generation.
What you need to do:
The leaks show differences between what Google says publicly and what they do, raising questions about transparency. Knowing how Google uses click data and other metrics helps SEOs and marketers better understand how to improve search rankings. The new information suggests that user engagement and brand are more critical than traditional SEO tactics like link-building and content optimization.
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OpenAI launches GPT-4o as the AI race heats up
What you need to know: OpenAI recently announced the latest iteration of its AI model, called GPT-4o (the "o" is for "omni"), which seamlessly combines text, images, and audio as well as excelling in math, coding, and translation across 50+ languages.
The model can handle complex queries and is reportedly twice as fast as its predecessor, GPT-4 Turbo, responding to audio prompts in 232 milliseconds, almost matching human conversation speed.
OpenAI also struck a new deal with Reddit to leverage platform content to train AI, as well as a partnership with premium publisher Dotdash Meredith.
What you need to do: GPT-4o positions OpenAI as the current strongest competitor in the AI natural language space. You should already be testing new ways to add AI into your workflows and processes . But although GPT-4o has undergone extensive “red teaming” with 70+ external experts in social psychology, bias and fairness, and misinformation, you should keep an eye out for risks the new modalities could amplify.
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Google rolls out AI overviews to US search results
What you need to know: Google introduced AI-powered overviews to US search results as part of the Search Generative Experience (SGE) , offering adjustable language, multi-step reasoning, and planning capabilities.
SGE's AI overviews aim to simplify complex queries, provide detailed answers, and assist with tasks like meal planning and vacations.
The launch is not without controversy; social users quickly found and posted examples of the new AI overview section offering strange, incorrect, or potentially dangerous answers. Google is "taking swift action" to address the problems.
What you need to do: As Google rolls out more AI Overviews and expands SGE, your search strategy needs to evolve to maintain visibility and relevance. You can start by structuring content as questions and answers, creating comprehensive overview pages, optimizing for featured status on authoritative platforms and maximizing technical SEO, and tracking search volume for AI-enhanced queries.
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Average marketing budgets continue to tighten post-pandemic
What you need to know: A recent survey from research firm Gartner found that average marketing budget had fallen to 7.7% of overall company revenue, marking a new low.
The same survey found that 73% of surveyed marketers said they were being asked to do more with less while 64% said they didn’t have sufficient budgets to execute their outlined strategy.
Paid media grew to almost 28% of the overall budget, while tech investments fell to the lowest level in a decade. But Gartner points to AI as one potential savior CMOs are looking to while working against strapped budgets.
What you need to do: As budgets continue to fall, marketers have been forced to get crafty about how to do more with less, a trend we’ll likely see continue as brands look for ways to improve efficiency and productivity. People will continue to look towards AI advancements make it a likely source of additional efficiencies, so stay up to date with the latest in AI to make the most of your budget.
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Amazon announces new interactive ad formats for Prime Video
What you need to know: On May 7th, Amazon revealed three new interactive ad units for Prime Video that won’t require users to click out of what they’re watching to shop: carousel ads, brand trivia ads, and pause ads.
Commercials featuring carousel ads let users click through a brand’s catalogue and add items to their Amazon cart.
Consumers can answer brand trivia questions via an in-stream ad to unlock rewards or product discounts, send themselves product info, or add items to their cart.
Pause ads let consumers interact with products and add to cart when they pause a video stream.
What you need to do: Consumers want more personalized and interactive content from ads. Amazon’s new formats fit in perfectly with the changing customer journey defined by the collapse of the marketing funnel and the demand for shoppability across channels. This is a clear way Amazon is solidifying the ties between its Prime Video ad tier and its ecommerce business.
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Netflix sees major growth from ad-supported tier
What you need to know: During its upfront preview, Netflix shared that its ad-supported tier had reached 40 million monthly users compared to 5 million at its inaugural announcement last year.
According to the streaming giant, 40% of new signups are for the ad-supported plan
Netflix is also looking to shake up the ad tech landscape; they plan to launch an in-house ad tech platform by the end of 2025.
The streaming platform is also expanding its roster of buy-side programmatic partners to include The Trade Desk, Google’s Display & Video 360, and Magnite.
What you need to do: When Netflix first announced its ad-supported tier, marketers were wary about whether or not it would work because consumers were used to the ad-free version. As ad-side capabilities become more robust and their user base grows, Netflix is positioning itself to capture more dollars from both its streaming competitors, digital platforms, and linear TV networks.
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Disney, Fox, and WBD sports streaming service gets official
What you need to know: Disney, Fox, and Warner Bros. announced their joint sports streaming service back in February, and now the trio have finally revealed the name of the new offering: Venu Sports.
Set to debut in fall 2024, they’re positioning the bundle as a way to reach consumers who might not subscribe to “pay TV.”
Pricing has yet to be announced, but the service will combine ESPN+ with the three companies’ linear TV networks that carry sports programming (ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNews, Fox, FS1, FS2, Big Ten Network, TNT, TBS and truTV).
What you need to do: Everyone is closely watching the effect the new service will have on both viewers and advertisers. Streaming live sports has been the final holdout for linear TV for years, but more events moved to streaming platforms in the last year. Advertisers now have more options to get in front of avid sports audiences than ever, and brands are paying attention.
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May Featured Content
From Silos to Synergy: Harnessing the Power of Media Convergence
There’s a reason marketing currently feels more like Mad Max than Mad Men: every platform is racing to be the one-stop shop for discovery, engagement, consideration, and purchase. In a world where consumers are searching on social and people can buy products from a TV commercial, siloed expertise and data can only take you so far.
Our experts share how to take advantage new convergent media opportunities by exploring how consumer behavior is changing, why platforms are converging, and what your brand should be doing right now.