September Industry Chatter: YouTube vs. Netflix, Amazon's AI Chatbot, and FTC Frustrations
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.
Fall is finally here, which means it's time to bust out your fluffiest sweater and snuggle up to some piping-hot marketing news you might've missed over the last month.
From the ongoing Google antitrust trial to the FTC's issues with the ad industry, here's a breakdown of the most important industry updates from September.
TikTok creators argue potential ban infringes on First Amendment
What you need to know: TikTok is challenging a US law that would ban the app unless its Chinese parent, ByteDance, sells it. The creators argue that banning TikTok would harm their ability to engage with audiences and negatively affect businesses relying on the platform.
The legal arguments center on the First Amendment, with creators’ attorneys asserting that TikTok’s ownership shouldn't affect their rights to publish. They also argue that the US government's concerns over data privacy are exaggerated.
The case is still pending, with both parties pushing for a decision by December, ahead of the January 19 deadline for TikTok’s sale or ban.
What you need to do: It was only a matter of time before TikTok challenged the US government’s decision in a court of law. The case is still pending, which means you shouldn’t be counting the app out just yet. Instead, keep leaning into the platform as a powerful tool while we wait to see what the court’s ultimate decision is.
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Amazon introduces ads to shopping-focused AI chatbot Rufus
What you need to know: Amazon is introducing sponsored ads into its generative AI shopping assistant, Rufus, allowing ads to appear alongside product recommendations based on user queries. These ads aim to enhance product discovery and remain relevant to the context of the search.
Advertisers have had mixed reactions to the update: some see potential in blending ads with organic search results, while others worry about the lack of control over ad placement and performance metrics, as Amazon won’t include Rufus campaign data in advertiser reports.
Rufus’ ability to auto-generate ad text raises concerns about brand control, with the potential for ads to target incorrect demographics or disrupt user experiences. Brands must closely monitor feedback to ensure ads don’t negatively impact the tool’s usability.
What you need to do: A more streamlined and user-friendly shopping experience could shorten the consumer’s journey to conversion, but integrating ads could turn some shoppers off. It’s worth considering testing into AI ad options like this one, but you should keep a close eye on how these tools generate copy to make sure your brand safety isn’t impacted.
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DOJ antitrust trial uncovers new evidence against Google
What you need to know: The DOJ plans to propose its remedy for Google's search monopoly by December. Google's rivals, like Yelp and DuckDuckGo, are advocating for changes to restore competition.
Evidence was presented showing Google’s development of Exchange Bidding as a tactic to work around header bidding. Header bidding gave publishers better returns, but it worked against Google’s dominance in the market.
The case has also revealed that Google paid $20 billion to Apple annually to be the default search engine in Safari, underscoring the power of default placements for Google’s success.
While the outcome of this trial is yet to be decided, it could have significant long-term effects on Google's business model, with the possibility of court-ordered restrictions on the company or even a breakup of its search business.
What you need to do: As Google and the DOJ continue to battle the antitrust ruling out in court, new details continue to come to light. Although the eventual outcome has the potential to rock the search world, Google isn’t going anywhere any time soon. You should keep up on the latest news as the trial progresses, but there’s no need to pull back on your Google advertising just yet.
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FTC calls out ad industry's “risky” data practices
What you need to know: The FTC criticized the ad industry for creating a "commercial surveillance ecosystem," collecting personal data about users without taking sufficient measures to protect their privacy. The agency is calling for stronger regulation of the industry.
Key findings from the FTC report include:
Despite these strong findings, the report’s impact remains uncertain, since FTC leadership may soon change depending on the outcome of the 2024 US election.
What you need to do: Data privacy has been a hot topic in the advertising industry for a long time. Consumers are wary about how their data is used and collected, but there aren’t many US federal regulations to prevent data misuse. Although this report’s outcome isn't yet clear, it’s crucial to take data privacy seriously. If you have all your data ducks in a row, you’ll be ready for whatever comes next in today’s shifting ad ecosystem.
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YouTube surpasses Netflix in viewer engagement
What you need to know: With the shift from subscription battles to engagement wars, YouTube has become Netflix's biggest competitor, leveraging its massive watch time and its established advertising revenue model.
YouTube surpasses Netflix in US streaming watch time, capturing 25% of TV streaming compared to Netflix's 20%, making it the most-watched platform on US televisions.
Despite being free for most users, YouTube’s advertising revenue is nearly equal to Netflix's, with only a 7% difference in total annual revenue.
YouTube’s content is mostly user-generated, giving the platform a cost advantage over Netflix, which invests billions in original programming.
YouTube has successfully transitioned to big-screen viewing, solidifying its power in this space, while other platforms, like TikTok, are still limited to smaller screens.
What you need to do: The streaming wars are heating up as advertisers try to capture their target audience’s attention. With the fall of linear and the rise of CTV, streaming, and social, you need to be taking a unified approach to video formats to win. You should be investing in the types of video that reach your audience at the right places in their customer journey and cultivating a cohesive message so you can appeal to customers wherever they watch.
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September Featured Content
Unified Video: Stream Smarter, Not Harder
As video consumption continues to evolve, advertisers can no longer rely on outdated linear media-buying strategies. To succeed, brands must adopt a unified approach that reaches consumers across platforms like CTV and social media.
A successful unified video strategy means tailoring content for each platform while ensuring a consistent message across all formats. By aligning video content with consumer behavior and staying ahead of media trends, advertisers can maximize the reach and effectiveness of their campaigns.