Internet Marketing News: November 2021 – 5 Key Events

Contents:

• Performance Max Campaigns from Google Ads: A New Level of Automation for Advertisers
• Responsibilities of Foreign Internet Companies: Roskomnadzor Requires Opening Offices in Russia
• How Logos Influence Consumer Choice: Research Results
• Overview of Overheated and Undervalued Advertising Channels in 2023
• VK Presents an Innovative Platform for Marketers
• Yandex Cross-Device Analytics: A New Look at Conversions
• Overview: Generation Z and Their Perception of Large brands
• Modern tools for conversion optimization from Google

Google Ads Performance Max Campaigns: A New Level of Automation for Advertisers

Google Ads officially announced the launch of automated Performance Max campaigns for all advertisers. This tool offers unique opportunities to optimize marketing and improve the effectiveness of advertising campaigns. Previously, Performance Max was in beta testing, which limited its availability to a wide audience. Now advertisers can use this powerful tool to achieve better results and maximize their ROI.

Performance Max is a powerful tool for advertisers, allowing them to effectively manage advertising campaigns across all Google platforms within one integrated strategy. This solution enables you to reach a variety of channels, including the Google Display Network, YouTube ads, Gmail, the Google Discover news feed, and search results. This allows you to optimize your advertising efforts, improve brand visibility, and achieve higher conversion rates, ensuring maximum advertising effectiveness across the Google ecosystem. Using Performance Max enables more precise audience targeting and increased ROI, making it an indispensable tool for modern advertisers.

To launch an advertising campaign, advertisers need to upload text and visual creatives, set goals, and determine a budget. Google's artificial intelligence optimizes bids, schedules impressions, and selects target audiences, significantly increasing the effectiveness of advertising efforts. The use of AI technologies helps achieve better results, ensuring precise targeting and maximum return on investment.

According to testing results, Performance Max significantly reduces the cost per lead and increases the number of applications compared to manual management. Research shows that advertisers record a reduction in application costs ranging from 10% to 80%. This approach to advertising campaign management allows you to optimize your budget and improve overall advertising effectiveness, making Performance Max an attractive tool for achieving business goals.

Performance Max campaigns can be conveniently tracked on the "Statistics" page. This allows you to better understand the operation of the automated system and identify opportunities for optimization. The "Combinations" report offers valuable insights into the most effective creatives, selected using Google's artificial intelligence. Using these tools helps improve the results of advertising campaigns and increase their effectiveness.

Responsibilities of Foreign Internet Companies: Roskomnadzor Requires Opening Offices in Russia

Key players in the Russian market, including Apple, Meta, Telegram, Google, TikTok, and Twitter, are now required to open offices in Russia. Otherwise, they risk facing serious sanctions, which could include a ban on accepting payments, restrictions on advertising, and even a complete blocking of their services in the country. These measures are aimed at ensuring compliance with the law and protecting user interests, highlighting the growing importance of international companies' local presence in Russia.

Recent fines imposed on foreign internet companies for failing to remove prohibited content and host personal data of Russian users outside the country highlight the importance of adhering to local laws. Compliance with these regulations is critical to ensuring the legitimacy and sustainability of businesses in the Russian market. Online companies must closely monitor legislative changes and adapt their policies and practices to avoid financial penalties and maintain user trust.

Foreign IT companies may consider opening offices in Russia, but they are constrained by the unpredictability of local legislation. A complete blocking of services is unlikely, as this would result in significant losses for the state in the form of value-added taxes and could cause public discontent. Vadim Zabeglov, founder of the marketing agency ZAMEDIA, emphasizes the importance of stability and transparency in attracting international players to the Russian market. Roskomnadzor's requirements play a key role in protecting user interests and ensuring compliance with Russian legislation. Opening offices in Russia is becoming a logical step for foreign companies seeking to continue their operations in the Russian market. This not only ensures compliance with local regulations but also improves interactions with clients and partners, ultimately contributing to successful business development in the country. Failure to comply with the new requirements can have serious consequences for international internet companies. This not only entails significant financial losses but also negatively impacts brand reputation in Russia. A deterioration in brand image can lead to a loss of trust among users and partners, which in turn affects the company's competitiveness. It is important to remember that compliance with local regulations and rules is key to successful operations in the Russian market.

How Logos Influence Consumer Choice: Research Results

According to a recent study by Vistaprint, 92% of consumers believe that creating a logo is one of the main tasks when entering the market. An effective logo significantly increases the likelihood of a purchase: 45% of survey participants noted that a memorable logo plays an important role in their purchasing decision. Investing in high-quality logo design can be a decisive factor in the competitive struggle and the formation of a positive brand image.

A poor logo can turn off up to 16% of potential customers. Surveys have named brands such as McDonald's, Amazon, Nike, Coca-Cola, Apple, Google, Disney, Facebook, Netflix, and Twitter as the most memorable logos. These companies clearly demonstrate how an effective visual identity can strengthen a brand and increase its recognition. A high-quality logo not only attracts attention but also creates a positive image, which in turn contributes to customer loyalty and increased sales. It is important to understand that logo creation is not just an artistic task, but a strategic step that contributes to successful business development.

Younger audiences, including millennials and zoomers, prefer monochrome logos. The most popular colors in this segment are blue, white, and black. At the same time, shades of pink, gray, orange, yellow, and purple are less appealing to this group. Using a monochrome palette in branding can significantly enhance brand appeal and memorability among young people.

Vadim Zabeglov, founder of the marketing agency ZAMEDIA, emphasizes that creating logos using monochrome and flat design remains a current trend. The modern generation values ​​simplicity and conciseness in visual elements. Logos in this style not only attract attention but are also easily integrated into various advertising materials, making them particularly effective for brands striving for a modern image.

Color palette plays a key role in brand perception. Research shows that people over 35 respond better to calm and neutral tones, while younger people tend to choose bright, saturated, and vibrant hues. Experts recommend developing gender-neutral logos, which avoids the need to change the visual identity when launching products for different target audiences. By taking these preferences into account, companies can create a more universal and attractive image that will resonate with a wide audience.

Creating a logo is not just a task for a designer, but an important strategic step that has a significant impact on brand perception. A logo is a company's visual identity, so brands need to consider current trends and the preferences of their target audience. This will not only attract customers but also create a sustainable image in the market. A properly designed logo contributes to increased competitiveness and a stronger connection with customers, which in turn leads to business growth.

Overview of Overheated and Undervalued Advertising Channels in 2023

In 2023, the analytics company WARC published a detailed advertising spend forecast for eight different channels in 108 markets. This study provides valuable information on the dynamics of advertising budgets and current content consumption trends across different segments. Understanding these changes will help advertisers optimize their strategies and allocate resources more effectively.

According to a WARC report, advertising markets, including social media and television, have reached saturation. In 2022, social media accounted for 39% of all marketing budgets, despite only accounting for 21% of user content consumption. For television, the corresponding figures were 32% and 16%, respectively. This indicates the need to reconsider marketing resource allocation strategies and search for new channels to reach the target audience.

The study showed that some channels remain undervalued. In particular, the podcast industry is experiencing significant advertising demand, exceeding supply by $40 billion. Meanwhile, the potential online press advertising market is estimated at $58 billion, but actual advertiser spend is only $12.8 billion. This demonstrates significant potential for growth and the development of advertising strategies in these areas.

The cost of acquiring customers through social media continues to increase. This is due to both growing advertising budgets and increased spending on content creation. In recent years, major brands have begun to focus not only on advertising publications but also on developing video content. The emergence of new integration mechanisms is also driving up the initial costs of test advertising campaigns, which requires careful planning and analysis to achieve maximum effectiveness.

Podcasts are demonstrating interesting dynamics as an effective channel for promoting complex products, including the B2B segment. Despite this, advertisers continue to exercise caution. In recent months, the situation has gradually changed, which is likely due to the increasing popularity of platforms such as Clubhouse. This indicates a growing interest in audio formats and their ability to capture the attention of target audiences. With this in mind, companies are beginning to reconsider their strategies and use podcasts as a powerful tool for marketing and advertising.

The difference in costs between advertising channels is often due to the additional costs of retaining existing customers. Currently, many brands focus on increasing LTV (customer lifetime value) and applying strategic marketing. Increasing LTV not only increases business profitability but also reduces the cost of acquiring new customers. Effective customer retention methods, such as personalized offers and loyalty programs, are becoming important components of marketing strategies. Thus, brands can optimize their advertising budgets and achieve a higher return on investment.

VK presents an innovative platform for marketers

In the context of modern digital marketing, the importance of personalized communications is difficult to overestimate. VK has introduced the VK Customer Experience Hub platform, which simplifies this process and makes it accessible to all users, regardless of programming skill level. The platform enables companies to effectively engage with customers, creating personalized offers and improving the overall customer experience. Using these tools helps build customer loyalty and increase conversions, which are key factors for success in a competitive environment. VK Customer Experience Hub empowers marketers to effectively manage customer interactions at all stages of the sales funnel. The platform integrates with various channels, including email newsletters, MyTarget advertising, messengers, chatbots, SMS, and push notifications. This allows you to send users relevant and targeted messages, significantly increasing the chances of conversion. Using VK Customer Experience Hub helps improve the customer experience and optimize marketing strategies, ensuring higher levels of engagement and customer satisfaction.

The platform provides powerful analytical tools that allow you to integrate data on advertising campaigns from various sources. Data can be exported from CRM systems, websites, mobile applications, and social networks, which greatly simplifies the analysis and optimization of marketing strategies. Leveraging these analytical capabilities helps companies manage their resources more effectively and achieve their goals.

VK Customer Experience Hub offers powerful tools for audience segmentation using anonymized user data. This enables effective targeted advertising across all company platforms. Marketers gain the ability to conduct A/B tests, analyze consumer behavior, and customize advertising campaigns via SMS and email. Integration with predictive analytics enables more precise targeting and improves advertising campaign results.

To start using VK Customer Experience Hub, register on the platform and follow the provided instructions to integrate with your data sources. This will allow you to effectively manage the customer experience and analyze data to improve engagement with your audience.

Data integration allows you to combine information from various sources, such as CRM systems, websites, mobile apps, and social media. This helps create a holistic view of customer behavior and improve engagement. By combining data from these sources, companies can better understand the needs and preferences of their audience, optimizing their marketing strategies and improving service levels.

The platform helps increase conversions through personalized messages and user behavior analytics. Marketers are able to engage with their audience more precisely, significantly increasing the likelihood of successful conversions. Using customer behavior data allows them to create targeted offers tailored to the interests and needs of users. This not only improves the user experience but also contributes to increased sales and stronger customer loyalty.

Yandex Cross-Device Analytics: A New Look at Conversions

Modern user habits are significantly transforming online sales strategies. The path to purchase is becoming increasingly complex: a customer may begin researching a product on a work computer, then switch to a smartphone to compare prices, and complete the purchase on a home laptop. This highlights the importance of a multi-channel approach to conversion analysis, which takes into account interactions across multiple devices. Companies must adapt their marketing strategies to provide a seamless user experience and increase conversion rates.

Metrica and Yandex Direct previously tracked conversions only from a single device. However, Yandex has implemented cross-device analytics, which allows it to track user interactions across all devices. This innovation significantly improves the quality of analytics, providing a more complete picture of customer behavior and their path to conversion. Now, marketers can more effectively analyze data and optimize advertising campaigns by considering all user interactions with the brand.

In Metrica, the attribution feature is enabled by default. However, in Yandex Direct, manual configuration is required to activate this feature through the attribution section. Proper attribution setup allows you to more accurately track the effectiveness of advertising campaigns and evaluate their contribution to conversions.

An attribution model is an important tool for assessing the contribution of various traffic sources to conversions. In Yandex.Direct, users can take advantage of several attribution models that help more accurately determine how different channels influence the results of advertising campaigns. Choosing the right attribution model allows you to optimize advertising costs and improve the effectiveness of marketing strategies.

• First transition - the conversion is attributed to the first traffic source.
• Last transition - the conversion is counted from the last source before the target action.
• Last significant transition - only significant sources, such as advertising and social networks, are counted.
• The last transition from Yandex.Direct is considered a conversion, even if there are other significant transitions. This model is installed by default.

Analyzing the user journey with mobile devices in mind is key. Ignoring mobile platforms can lead to data distortions and make it difficult to evaluate conversions. Using cross-device analytics from Yandex allows for the optimization of advertising placement across various channels and opens up opportunities for specialized formats and communication strategies adapted to different devices. Implementing such methods improves understanding of user behavior and facilitates more precise targeting.

Nevertheless, the issue of matching user data remains relevant. To address this issue, Yandex uses Crypta technology. However, it is currently unclear what percentage of users will be included in the sample, as the algorithms used for matching remain closed and confidential. This is of interest to data and marketing experts, as understanding the general principles behind how these algorithms work could help optimize advertising campaigns and improve user experience. Evgeny Sukhov, Account Manager at Nectarin, emphasizes the importance of implementing cross-device analytics to achieve a deeper understanding of user journeys and optimize advertising strategies. This is a truly significant step for businesses in a multi-channel environment, allowing them to effectively track customer interactions with a brand across devices and improve the effectiveness of marketing campaigns. This approach not only increases conversions but also strengthens customer loyalty.

Overview: Generation Z and Their Perceptions of Big Brands

Recent research from eMarketer, using data from companies such as Salesforce and Deloitte, shows that Generation Z perceives advertising and big brands significantly differently than millennials. Generation Z is more critical of advertising strategies and brand preferences, requiring companies to adapt their marketing approaches to effectively engage this audience. It is important to take into account the unique characteristics and values ​​of Generation Z in order to build trust with them and ensure the successful promotion of products and services.

The study shows that only 53% of Generation Z consider big companies to be sincere, compared to 61% of millennials. Overall, only 42% of Gen Z trust big brands. This data highlights the need to adapt marketing strategies to build trust among younger audiences. Given these figures, it's crucial for brands to develop transparency and authenticity in their communications to improve their relationships with consumers.

One of the main reasons for Generation Z's distrust is their concerns about privacy. 59% of this group believe they have lost control over how their personal data is used. At the same time, they expect personalized offers from brands they have already interacted with. This contradiction creates a need for companies to implement transparent and secure data practices to gain the trust of younger audiences.

To attract the attention and gain the trust of Generation Z, it's essential to use authentic customer stories in advertising. Research confirms that this generation identifies better with content that feels natural and believable, rather than idealized. Real stories create a sense of intimacy and sincerity, which helps build trust between brand and consumer. This approach not only increases audience engagement but also enhances loyalty to a product or service. Small businesses' distrust of large companies is justified. Experience shows that many large corporations acquire small companies with high-quality products, after which their quality significantly declines. Vadim Zabeglov, founder of the marketing agency ZAMEDIA, shares this opinion. This situation raises concerns among consumers who strive to choose reliable and high-quality products. It is important to maintain high quality standards, even after changes in business ownership, to avoid undermining customer trust. Collecting consumer data raises many questions and misunderstandings, particularly regarding how advertisers use this information. The primary sources of data are user age, geolocation, and preferences. This data helps companies customize advertising campaigns, making them more targeted and relevant to the target audience. Effective use of collected information allows for increased advertising effectiveness and a better user experience, offering products and services that specifically match their interests.

To effectively engage with the younger generation, it's necessary to develop advertising campaigns tailored to specific target audiences. In particular, promotions featuring popular influencers can be effective for Generation Z, significantly increasing engagement and interest in the product. This approach allows brands to better understand the preferences of young people and tailor their messages, making them more relevant and appealing.

Understanding the needs and expectations of Generation Z is the foundation for developing effective marketing strategies for major brands. This generation, having grown up in the digital age, has unique preferences and behaviors, requiring companies to adapt their approaches. By taking into account the characteristics of Generation Z, brands can create more targeted and relevant marketing campaigns that will attract the attention and interest of this audience. Using relevant communication channels and content formats will help build trust with consumers, which will ultimately lead to increased brand loyalty and sales.

Modern conversion optimization tools from Google

In recent months, Google announced a new tool, Conversion Goals, which is aimed at optimizing the effectiveness of advertising campaigns. This tool provides the ability to more precisely customize advertising based on specific user actions. In addition, Conversion Goals offers recommendations for optimal conversion tracking, which allows marketers to better understand audience behavior and improve the return on investment (ROI). Using this tool promotes deeper data analysis and improves the overall effectiveness of advertising strategies.

Google has introduced the Tag Assistant feature, designed to check the correct functioning of conversion tags. This tool helps identify unconfirmed actions and inactive tags, significantly increasing the accuracy of data analysis. Using Tag Assistant allows you to optimize advertising campaigns and improve results by providing a deeper understanding of user behavior. This is especially important for digital marketers looking to improve the effectiveness of their strategies.

Google has introduced new interpretations for Smart Bidding strategies such as Target Return on Ad Spend and Maximize Conversion Value. These updates are aimed at providing a deeper understanding of the factors that influence conversion cost fluctuations in Search campaigns. Advertisers will be able to more effectively manage their bids and optimize their ad spend, which will ultimately lead to improved overall campaign performance. Understanding the key factors that influence conversion cost will be an important step in achieving business goals and increasing advertising revenue.