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One Does Not Simply Chat Without Sponsored Messages
Microsoft wrestles with how to insert advertising into AI summaries. How will marketers and consumers react?
by Tod Maffin and Steph Gunn
Today's News
Microsoft’s Copilot AI Ads Are Changing
Microsoft's robot overlords are coming for your ad dollars.
The company announced updates yesterday to how ads in its Copilot AI platform will appear and trigger for users. Advertisers will also gain access to two new features.
Ad redesign
Ads in Copilot will appear below Copilot's organic response in a more streamlined experience. There will also be fewer ad annotations and extensions, focusing more on showing relevant information.
Ads will be triggered by the entire conversation, not just the last prompt. While Microsoft’s new “ad voice” feature will explain how the ad relates to the user’s interaction.
This update will begin rolling out this month on the Copilot web site and will gradually expand to updated apps on Android, iOS, and Copilot experiences in Bing and Edge.
New tools for advertisers
Microsoft is also piloting two new generative AI features this month.
The new diagnostics feature will assist advertisers in assessing campaign setups and account health, diagnosing any issues, and proposing what to do next.
The new performance snapshot feature will let advertisers ask Copilot to obtain an account or campaign-specific performance overview with a summary of key insights, trends, and anomalies.
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Not Today, Temu!
Consumers can't ‘shop like a billionaire’ in Indonesia.
Indonesia has banned the e-commerce platform Temu, due to fears it could spell doom to the country’s micro, small, and medium enterprises, according to its Minister of Communications and Informatics.
Regulatory concerns
In recent months, Indonesian authorities have kept an eye on the company's attempts to enter Southeast Asia’s largest economy. Temu's direct-to-consumer model, which bypasses traditional distributors, conflicts with local trade regulations, according to the Trade Ministry's trade director-general.
Temu's registration efforts have also faced hurdles. Since September 2022, the platform has tried to secure trademark rights with the Ministry of Law and Human Rights, but its applications were rejected due to existing businesses using the name.
Temu, which is available in about 60 countries, entered Southeast Asia last year, starting with the Philippines and Malaysia last year, before expanding to Thailand in July this year.
Previous bans
Indonesia has a history of restricting foreign e-commerce firms.
Last year it also banned TikTok Shop to protect smaller merchants and safeguard user data.
However, TikTok's significant investment in Indonesian e-commerce player Tokopedia has allowed it to re-establish a presence in the market.
IAS Launches Attention Measurement Tool
Wonder how much attention readers are actually giving your site?
Integral Ad Science (IAS), the ad verification and brand safety company, launched a new attention measurement tool today designed for publishers and platforms.
The tool, called Quality Attention for Publishers, uses eye-tracking data and machine learning to measure how much attention readers might give web pages, and how users interact with ads.
The tool will be available to publishers and supply-side platforms (SSPs) that sell inventory programmatically.
More Prime Video Ads Are Coming
Amazon is looking to push the boundaries of just how many ads viewers can take before hitting cancel.
Starting next year, subscribers to Prime Video's ad-supported tier can expect more commercials.
Plans for more ads
In an interview with the Financial Times yesterday, the VP of Prime Video International confirmed plans to increase ad slots available to advertisers in 2025.
Upon the initial launch of the ad tier in January, viewers experienced an average of two to three-and-a-half minutes of ads per hour, described as a “gentle entry” into advertising. The executive pointed out that Prime Video with ads currently doesn't show commercials in the middle of content, but that could change next year.
Amazon is also adding shoppable ads to Prime Video in 2025, which will include carousel ads, pause ads, and brand trivia ads.
Ads haven’t hurt business… yet
The VP noted that subscriber churn due to ads has been “much, much less than anticipated.”
With 200 million monthly viewers, Amazon claims that its Prime Video subscriber count hasn’t taken a significant hit since introducing ads.
On one hand, those who have already viewed ads on Prime Video may be open to accepting whatever Amazon's ad department is willing to throw at them.
Others, however, may think they were already paying their dues with the current ad setup. For subscribers who are fed up with streaming tactics like rising prices, changing libraries, and password crackdowns, there's a fine line between an acceptable number of ads and a disruptive number. Ad fatigue could also make commercials less effective.
... As long as people keep paying for ad subscriptions, streaming providers will seek more ways to use viewers to generate ad dollars. With Amazon increasing ad loads next year, we can anticipate more streaming services to test how much advertising customers will accept.
DoorDash Is Hungry for Ads
DoorDash wants to deliver your ads.
The food delivery service announced a new ad platform for restaurants today, along with new ad tools for consumer packaged goods (CPG) brands.
Ads Manager for Enterprise Restaurants
Chipotle and Sweetgreen are among the first to jump on board with the new Ads Manager for Enterprise Restaurants.
The self-service marketing platform includes features like advanced targeting, marketing insights, and new promos tailored for regional marketing teams and franchise owners.
By analyzing customer ordering habits and basket sizes, restaurants can fine-tune their campaigns based on when people order and how often.
New features for CPG brands
DoorDash also added offsite advertising options and sponsored placements for consumer packaged goods brands. These new high-visibility spots on storefront and category pages let brands spotlight seasonal items, showcase new products, and boost promotions.
The ad platform also now offers offsite media, letting advertisers reach consumers across search engines, programmatic displays, and social media platforms with campaigns powered by its first-party data.
The B2B Digital Ad Comeback
Some promising news to wrap up the day. After a year of slow growth, business-to-business digital ad spend is bouncing back.
According to a new eMarketer forecast today, U.S. B2B digital ad spend is set to jump 15% year-over-year in 2024, fueled by changes in buyer behavior, programmatic ads, and the benefits of AI.
Expect big growth in display, mobile, and video ads.
The retail sector will see growth mainly from Amazon Business.
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