UK households ￡3bn worse off; Retailers lose billions over accessibility; Google deprioritises links; Microsoft swipes at Google; Key dates & Best Ads
Welcome to this week’s Digital Discovery.
Each week we cover the latest developments and everything you need to know in the world of digital marketing . This week we cover:
Plus we look at some of the best ads discovered and look ahead at key content dates coming up this month.
Don’t forget to subscribe to this newsletter and follow me on LinkedIn .
Ok, let’s dive into this week’s update…?
UK households to face ￡3 billion decrease in Christmas spending amid cost-of-living crisis
As the cost-of-living crisis continues to tighten its grip, UK households are expected to have ￡3 billion less to spend this Christmas compared to the previous year, according to a joint research effort by ShipEngine , ShipStation , and Retail Economics .
The research reveals that 79% of UK consumers plan to cut back on non-food spending during the upcoming Black Friday and Christmas seasons, marking a 9% increase from the previous year. The primary reasons cited for this cautious approach are the impact of inflation, mentioned by 34% of respondents, and a lack of savings, voiced by 22% of those surveyed.
However, retailers maintain a more optimistic outlook, with nearly two-thirds of online merchants expecting sales volumes to remain steady compared to 2022, while 24% anticipate an increase in sales.
To navigate the challenges presented by the ongoing cost-of-living crisis, consumers are planning to start their Christmas shopping earlier this year. Additionally, they are increasingly turning to online marketplaces to stretch their budgets, with an estimated ￡17.9 billion set to be spent online during Black Friday and Christmas in search of competitive prices.
UK consumers are leading the trend of early Christmas shopping, with 40% planning to have already commenced their festive buying before October. This early bird approach is driven by the desire to secure discounts and deals and is further accelerated by retailers who plan to initiate promotions earlier than ever.
?Marketplaces, in particular, are expected to play a significant role in this year's holiday shopping season. Nearly 90% of consumers across surveyed markets intend to shop on online marketplaces, with UK consumers leading at 95%. Shoppers appreciate the value and convenience these platforms offer, as they allow easy product and price comparisons. Delivery speed is also a driving factor, with 71% of UK consumers reporting that online marketplaces typically provide fast and reliable delivery services.
The research suggests that consumers' delivery priorities shift during the peak season. While cost remains important, speed becomes equally crucial, with almost 70% of UK consumers highlighting delivery speed as a top priority. However, less than one-third of merchants plan to offer standard delivery times of two days or less.
Late deliveries are the foremost concern for UK consumers during the peak season, with 42% expressing anxiety about this issue. Additionally, worries about missing and stolen parcels are on the rise, with 41% of UK consumers identifying these as concerns.
When it comes to willingness to pay for delivery, over half of UK consumers are open to paying up to ￡7 extra for same-day delivery, and 41% are willing to pay the same amount for next-day delivery. Among consumers under 45, the willingness to pay for speedy delivery rises to as high as 78%, underscoring the importance of convenience and speed for this demographic.
Richard Lim, CEO of Retail Economics, emphasised the challenges facing households in the current cost-of-living crisis and the need for retailers to adapt to shifting consumer demands, offering competitive prices and accommodating both online and offline shopping preferences.
In summary, the UK's festive season is expected to be marked by cautious spending, early shopping, and a strong reliance on online marketplaces, with consumers increasingly prioritising delivery speed to ensure a seamless shopping experience.
?
New UK survey urges retailers to prioritise accessibility to prevent losing billions
A recent survey of over 2,000 UK consumers has highlighted the significant impact of accessibility issues on online retail, with 55% of respondents admitting to discarding a purchase due to accessibility problems. The study, commissioned by e-commerce agency Quickfire Digital, underlines the urgent need for retailers to address these issues, as they risk losing billions in sales and alienating a substantial portion of British consumers.
Key findings from the survey revealed that:
The impact of neglecting accessibility is not just financial; it also carries moral implications. With the UK's online retail sales valued at ￡224 billion in 2022, and over half of those surveyed facing accessibility issues online, UK retailers risk forfeiting a potential ￡120 billion in revenue.
Nathan Lomax, Co-founder and Director at Quickfire Digital, commented on the survey results, saying, "We've known for a while that the retail market is struggling, with inflation contributing to a sharp decline in online retail sales in 2022. We've also known for a while that estimates from Purple, a UK-based disability organisation, show there are 4.3 million disabled online shoppers who click away from inaccessible websites, equating to a combined spending power of ￡11.75 billion in the UK. But the results from our survey reveal that there is an untold cost of ignoring the accessibility market that is well in excess of Purple's already shocking stats."
The Purple Pound Infographic
Google says links no longer a top priority for search rankings
In the ever-evolving landscape of SEO, one constant has been the significance of backlinks for Google search ranking. However, recent statements from Google executives indicate a shift in this paradigm. Gary Illyes, an analyst on the Google Search team, confirmed during Pubcon Pro in Austin that links are no longer among the top three Google Search ranking factors.
In 2016, Andrey Lipattsev, a senior strategist at Google, stated that links, alongside content and RankBrain, were the top three factors determining a website's Google SERP ranking. Fast forward to 2023, and this is no longer the case. Illyes emphasised that while links still hold importance, their significance has diminished compared to the past. He pointed out that the Google Search algorithm has evolved significantly, incorporating advanced technologies such as machine learning, natural language understanding, and other relevance signals like BERT and MUM.
Does this revelation suggest a fundamental change in how SEO professionals should approach their strategies? Not necessarily fundamental. A typical SEO project will see an overall strategy broken into multiple work streams, such as content production, content pruning, on-page optimisation, technical SEO, internal links and external link building to name a few. Perhaps then a slight shift in priority should be considered when focusing on building links and SEOs should put a higher focus more on producing high-quality useful content. But ultimately, the initial SEO research will dictate the priority.
Illyes clarified his stance, stating, "I think they are important, but I think people overestimate the importance of links. I don't agree it's in the top three. It hasn't been for some time." He even noted a rare scenario in which a website with exceptional content ranked number one without any external or internal links, relying solely on its sitemap for discovery.
This shift in emphasis away from backlinks is not new. Duy Nguyen from Google's search quality team mentioned that backlinks had a diminishing impact on ranking compared to the early days of Google Search. John Mueller, another Google representative, echoed this sentiment in a Search Off the Record podcast episode , stating that over time, links would become less critical as the algorithm improved its understanding of web content.
Illyes' statements align with Google's ongoing efforts to prioritise quality content and deter manipulative SEO practices centered around generating links without delivering valuable content. Google's primary goal has been to provide users with the most relevant and useful search results, and this includes minimising the importance of backlinks in favour of content quality.
Despite these expert opinions, it's worth noting that whenever a Google representative makes a statement like this, it often sparks debate within the SEO community. Many SEO professionals view it as typical Google disinformation or even accuse Google of being less than truthful. This scepticism is not surprising given the ever-changing nature of SEO and the challenges faced by those in the field.
Microsoft CEO accuses Google of dominance and hindrance to Bing's growth
In the ongoing U.S. vs. Google antitrust trial , Microsoft CEO Satya Nadella has voiced strong opinions about Google's stranglehold on the search engine market. Nadella dismissed Google's claims of genuine competition in the search engine industry as "bogus" and emphasised the futility of artificial intelligence (AI) in challenging Google's dominance in web search.
Nadella expressed concerns about Google's tactics, such as raising ad prices to meet revenue targets , potentially abusing its monopoly position. He highlighted Google's plan to pay publishers for exclusive content rights, which, if implemented, would render other search engines irrelevant.
Nadella also discussed the challenges faced by Microsoft's Bing in competing with Google. Despite the launch of Bing Chat, powered by OpenAI's ChatGPT technology, it failed to gain significant market share from Google . Default search agreements, like the one Google has with Apple, have cemented Google's dominance, making it difficult for competitors like Bing to break into the market.
Microsoft's CEO acknowledged that on devices using Microsoft's operating systems, where Bing is the default search engine, Bing's market share remains below 20%. He also revealed that Microsoft has invested $100 billion in Bing, considering internet search as a significant software category despite its low market share.
Nadella's candid remarks seem to acknowledge the challenges Microsoft Bing faces in competing with Google's monopoly. He views the antitrust trial as a pivotal moment to address Google's dominance and its potential harm to consumers, competitors, and the broader advertising ecosystem.
Will the outcome of this trial may determine whether Google will be forced to change its practices? We can only wait and see.
AD OF THE WEEK
McVities - There Is Only One
Fifteen years after his retirement from ITV’s News at Ten, acclaimed newsreader Sir Trevor McDonald returns to the news desk in a new TV advert for biscuit brand McVitie’s.
This ad resonates with me a lot this week as I recently swapped out a pack of McVitie's Original Digestives with a supermarket own brand. Big mistake.
Twitter, now "X," joins forces with Google Display Network in bid to revive ad revenue
In an unexpected move, Twitter, now rebranded as "X," has formed a strategic alliance with the Google Display Network. This collaboration comes in response to a sharp decline in X's advertising revenue earlier this year.
This partnership will allow advertisers to access X's home feed inventory through Google Ads Display campaigns, presenting a lucrative opportunity to reach X's vast audience of over 200 million daily users. However, it's worth noting that X's advertising guidelines are not as strict as some other platforms, potentially exposing advertisers to less regulated content.
领英推荐
Google seems unfazed by the partnership, a spokesperson said: “Like a number of social apps and websites, X has signed up to monetise its home feed with Google Ad Manager. This is an opportunity for our advertisers to reach a broader audience, but as always, they can choose what sites and apps their ads run on. Any publisher who participates in this type of partnership must abide by our publisher policies."
The decline in ad revenue, a significant 59% drop in the US, prompted Elon Musk, who acquired X last year, to take action. He first appointed Linda Yaccarino as CEO and has now outsourced ad sales to Google, aiming to leverage its advertising industry prowess.
The collaboration has the potential to create a powerful marketing database by merging Google and X's data, revolutionising the user journey across search and display campaigns. However, success depends on effective data integration. The intricate details of this deal remain undisclosed.
As X transforms and adapts, the advertising world watches closely to see whether this alliance will revive its ad revenue and bring a fresh chapter to the X story.
YouTube enhances advertising and content monetisation
YouTube has introduced several updates to improve the experience for advertisers and content creators. These include Video View Campaigns (VVC), better audience insights, and relaxed content guidelines.
Video View Campaigns (VVC) for effective ads
YouTube now offers Video View Campaigns (VVC) globally, using AI to target audiences more efficiently. VVCs include various ad formats like skippable in-stream ads, in-feed ads, and Shorts ads. They have shown a 40% increase in views and 30% lower cost per view compared to traditional campaigns, according to a Google study.
Audience insights for creators
YouTube's analytics platform now provides creators with improved audience insights, enabling data-driven decisions. Creators can analyse new and returning viewers' data separately, enhancing content targeting. Read more .
Relaxed content guidelines
YouTube has updated its Advertiser-Friendly Content guidelines , allowing creators to earn ad revenue on topics like sexual and domestic abuse, abortions, and eating disorders, provided the content isn't overly graphic. This change aims to encourage open discussions while offering monetisation opportunities.
?
Reddit enhances ad personalisation and community targeting
Reddit is making significant changes to its advertising features, removing the opt-out option for ad personalisation based on user activity and introducing improved community targeting tools on Ads Manager.
Opt-out of ad personalisation changes
Reddit is eliminating the option for users to opt-out of ad personalisation based on their platform activity. This change allows Reddit's algorithms to predict more precisely targeted advertisements, improving campaign effectiveness for advertisers. Read more
Ads Manager updates for improved community targeting
Reddit has introduced updates to its Ads Manager , aiming to enhance community targeting. These include improved community search, targeting suggestions, and community info features. Two new administration tools, campaign lifetime budget and inline editing, have also been added to streamline campaign management.
More digital marketing news
KEY CONTENT DATES
Month-Long Events:
01 October 2023:?International Day of Older Persons, International Coffee Day, World Vegetarian Day
02 October 2023:?World Habitat Day, International Day of Nonviolence
03 October 2023:?National Techies Day
04 October 2023:?World Animal Day, National Taco Day
05 October 2023:?World Teachers’ Day, National Poetry Day
06 October 2023:?World Smile Day
08 October 2023:?World Octopus Day
10 October 2023:?World Mental Health Day, World Homeless Day
11 October 2023:?International Day of the Girl Child
12 October 2023:?World Sight Day
13 October 2023:?World Egg Day
15 October 2023:?Global Handwashing Day
16 October 2023:?World Food Day
17 October 2023:?International Day for the Eradication of Poverty
19 October 2023:?International Gin and Tonic Day
20 October 2023:?International Chefs’ Day
21 October 2023:?Back to the Future Day
24 October 2023:?United Nations Day
25 October 2023:?World Pasta Day
29 October 2023:?Clocks Go Back
30 October 2023:?Checklist Day
31 October 2023:?Halloween, World Cities Day
Need digital marketing support?
The team at Marketing Mouse and I are ready to help you achieve your business goals with sound digital marketing support.
We help businesses reach more people through first-class SEO, Paid Online that converts and Websites that you can be proud of.
Get started with a free consultation with me . If there's potential to work together we'll even do some free research for you as well! No obligations.
Thanks for reading!
I hope you enjoyed this week's newsletter and found it useful.
Please follow me and subscribe to my Digital Discovery newsletter . I’ll be posting each week about the digital marketing stories that matter.
See you next week.