Missing the Mark

Social and YouTube ads struggle to convert amid new consumer habits and targeting challenges.

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Social Ads Might Be Tanking Your Reach

Heavy spending on social? “Light users” could be keeping your brand in the dark.

A new study from adtech company, Digital Turbine, suggests ad buyers relying too much on social media may be missing key consumer segments.

The study found that brands like Sony, Amazon, and McDonald’s aren’t getting the full reach for their social ad spend.

Missed reach

According to the study, this is because “light social users,” consumers who spend less time on social media than other apps, make up a significant portion of the audience that social ads often miss.

  • Of the 44 million people who go to the cinema, 1 out of 4 were light social users, and saw one-third fewer ads from Sony Pictures, compared to those who were not light social users.

  • 62 million retail customers are light social users, the study found that those consumers saw 30% fewer ads from Amazon.

  • For quick-service restaurants, 66 million light social users saw 40% fewer McDonald’s ads.

Expanding beyond social

To avoid missing these consumers, the study suggests advertisers look beyond social media and YouTube.

Mobile gaming, an area with high engagement and under-utilized ad space, could help brands fill these gaps.

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CapCut’s New Play for Retailers

CapCut, the video editing app created by TikTok owner ByteDance, is pushing further into retail content creation with its new Commerce Pro package. 

New tools for brands

The package includes a range of TikTok-friendly commerce creation tools, including:

  • A feature that generates video clips from product URLs, as well as various means to include shoppable links in your clips.

  • Access to TikTok’s AI avatars for product demos and explainer videos, letting you create and feature these digital characters in your promotions.

  • A “Virtual Try On” feature that lets customers select a model to try on products and generate photos showcasing them.

  • The tool also includes auto-publishing across multiple channels, performance insights, and seasonal templates for events like Black Friday and Cyber Monday.

Pricing

In terms of pricing, Commerce Pro uses a “freemium” model, offering the first 200 seconds of video you create in the app for free, but after that, you'll need to switch to a paid plan, priced at $26 per month or $250 annually.

As of September 2024, how many global downloads does CapCut have?

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