Marketing Trend Tracker - Series 10

Sierra Levine • May 30, 2024


In an era where technology continues to reshape our daily lives, Google and streaming giants are making significant strides. Google is revolutionizing the use of AI, while users are combating rising streaming service costs by embracing ad-supported subscriptions. Let's delve into these exciting developments and explore how they are setting new benchmarks in their respective fields.

Google's Generative AI


At Google's 2024 I/O Conference on May 14th, the tech giant unveiled its ambitious plans for integrating Generative AI into its search functionalities. This advanced AI model, customized for Google Search, features multi-step reasoning, planning, and multimodality, promising to revolutionize online information retrieval. At the Google Marketing Live event on May 21st, further insights were provided into the future of AI in digital marketing, highlighting its potential for enhancing creative, media, and measurements.


Google’s new updates to Performance Max (PMax) promise users more transparency and control over how their ads look, where they are appearing and how they are performing. Generative AI will allow advertisers to use brand guidelines (brand colors and fonts) as a reference point for new images that match the brand’s style, enabling them to use these assets across platforms and campaigns. While users will be able to add and remove objects, extend backgrounds, and adjust images from the Google Merchant Center, Google is partnering up with Canva, Smartly, and Pencil Pro to export assets easily to and from Google Ads. Google also revealed that asset-level reporting will be added to PMax in the next few months. This enhancement will enable you to view key conversion metrics for individual creative assets, providing insights into what resonates with consumers.


In addition, Google is rolling out major updates to its Shopping Ads, introducing a virtual try-on (VTO) feature for apparel. Starting with men’s and women’s tops, users will be able to see how different styles look on various body types. Additionally, Google has unveiled 360-degree product views for items like sneakers, generated from seller-provided images, that automatically features key product information along with customer reviews. Advertisers will also be able to include clickable short-form videos, created by brands or influencers, directly within these ads. These videos will offer interactive experiences, allowing shoppers to explore related products, styling tips, and customer reviews, with detailed product information displayed beneath each video.


Source: Google

Source: Google

Google's AI Overview enhances user engagement by providing brief summaries and links, allowing users to ask complex questions in a single query. For example, users can inquire about yoga or pilates studios in Boston, their introductory offers, and walking distances all at once. Google plans to test Search and Shopping ads in AI Overviews for U.S. users, with relevant Max and AI-powered Search campaigns potentially appearing in the "Sponsored" category. However, many users have encountered "low-quality" information, such as suggesting to add glue to keep cheese from sliding off a pizza. Google is taking swift action to remove inappropriate AI Overviews, according to spokesperson Meghann Farnsworth.


Search ads will now offer AI-powered, personalized interactive ad experiences where shoppers can share detailed information about what they're looking for by uploading images or videos. This new feature allows customers to click on an ad, upload photos, and receive tailored recommendations, with the option to complete the transaction directly within the ad. For example, during their event, Google demonstrated how a storage space ad can allow users to upload images of furniture they need stored and receive sizing recommendations based on their input. This new feature is just one of the many ways that Google continues to innovate and improve upon its advertising platform, providing a more personalized and efficient experience for both businesses and customers alike.


Overall, Google's integration of Generative AI into their platform underscores its ongoing efforts to make searching more intuitive, comprehensive, and user-friendly. By enabling complex queries, enhancing engagement, and offering increased personalized advertising, Google continues to push the boundaries of what AI can achieve in improving our daily digital experiences.


Cutting Costs and Capturing Clicks!


As consumers look to cut costs and embrace ad-tier streaming services, personalized and interactive ads are becoming increasingly relevant. With rising subscription costs, many are shifting towards ad-supported tiers, which offer a more affordable way to access their favorite content. These lower-priced options mean that streaming services must rely more on ad revenues, making the effectiveness of their advertising strategies crucial.


Deloitte's October 2023 study revealed that American households spend an average of $61 per month on streaming services, with 40% having canceled at least one paid service in the past six months. In the first three months of 2024, 56% of new subscribers opted for ad-supported subscriptions, indicating a strong consumer preference for cost-saving options. Despite bundling efforts, nearly half (48%) of survey respondents said they would cancel their favorite subscription if costs increased by just $5, further highlighting price sensitivity.


To address these challenges, streaming services are increasingly turning to personalized, interactive ads, borrowing strategies from social media. Nearly 40% of respondents under 41 are interested in the ability to click through ads they watch on streaming platforms, showing a significant shift in consumer expectations. By delivering the right content to the right audience at the right time, these ads can capture viewers' attention more effectively.

At SparkShoppe, staying on top of the latest trends is our specialty. Contact us today to learn how our team of marketing experts can position your company at the forefront of innovation!

  • Targeted Advertising


    Retail media networks enable highly targeted advertising. Retailers have access to a wealth of data about their customers' shopping habits, preferences, and demographics. This data allows advertisers to create highly targeted and personalized campaigns, increasing the likelihood of reaching the right audience.

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  • Monetization Opportunity


    Retailers can monetize their online platforms by selling advertising space to manufacturers and brands. This additional revenue stream can help grocers offset costs and improve profitability.

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  • Enhanced Shopper Experience


    Advertisements on a retail media network can be designed to enhance the overall shopper experience. Relevant and engaging ads can provide useful information, highlight promotions, and offer personalized recommendations, creating a more positive shopping experience.

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  • Data Insights and Analytics


    Manufacturers and brands can gain valuable insights from the data generated through retail media networks. Analyzing customer behavior, ad performance, and other metrics can help them optimize their marketing strategies, refine product offerings, and make data-driven decisions.

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  • Cross-Promotions and Collaborations


    Retail media networks provide an opportunity for collaboration between retailers, manufacturers, and brands. Joint promotional campaigns and cross-selling initiatives can be implemented to benefit all parties involved.

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  • Measurable ROI


    Advertisers can track the performance of their campaigns in real-time. This level of visibility allows them to measure the return on investment (ROI) of their advertising efforts and adjust as needed to optimize results.

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  • Competitive Advantage


    Retailers that effectively leverage a retail media network can gain a competitive advantage in the market. By offering a valuable platform for advertisers, retailers can attract more brands to their network and strengthen their position in the industry.

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  • Omni-Channel Marketing


    Retail media networks often span both online and offline channels, providing a seamless experience for customers across various touchpoints. This omni-channel approach can help advertisers create cohesive and integrated marketing campaigns.

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  • Adaptable and Flexible


    Retail media networks can adapt to changing market conditions and consumer preferences. Advertisers can quickly modify their campaigns to respond to trends, seasonal changes, or shifts in consumer behavior.

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  • Building Brand Loyalty


    Effective advertising on a retail media network can contribute to building brand loyalty. By engaging with customers at multiple points in their shopping journey, advertisers can foster a stronger connection with their target audience.

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SparkShoppe in collaboration with our retail and CPG partners has proven the power of a retail media network. The results are driven from the ability to provide targeted advertising, create additional revenue streams for retailers, enhance the shopper experience, offer valuable data insights, and foster collaboration between grocers and manufacturers. When utilized effectively, it can be a win-win for all stakeholders involved. Ignite your strategy today by connecting with us!

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