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Google’s Affiliate Link Penalty; The Brand vs. Performance Mistake – AdExchanger

Google’s Affiliate Link Penalty; The Brand vs. Performance Mistake – AdExchanger
Written by publishing team

The ads are there for you

Publishers trying to cut a piece of the commerce pie face an unlikely – or perhaps not even unlikely – competitor: Google. It seems that everywhere they turn, there is Google with a new way to punish them for trying alternative income sources.

Take BuzzFeed, which has emphasized the growth potential of its business in the lead-up to its impending initial public offering. But here’s the problem: BuzzFeed’s business revenue slowed to just 14% in the third quarter from 80% in the first half, and all indications are pointing to another shortfall in the fourth.

What happened? Well, it’s no coincidence that earlier this year Google tweaked its search algorithm to narrow down sites with affiliate-style links to third-party shops. Publishers with affiliate links saw a 20% to 30% drop in traffic, the information reports.

But as trade faltered, advertising was there to offset the slack. BuzzFeed is still on track to meet its 2021 total revenue goals, in large part on the strength of its advertising business. Vice in a similar boat. As it prepared for its initial public offering, Vice increased its focus on video content and branding – yet 35% of Vice’s revenue still came from advertising. from the inside reports.

Guess publishers will have to continue to rely on ad revenue to support themselves – although there are competitors out there, too. (We’re looking at you, Google.)

from the brand

A common misconception is that brand marketing and performance marketing are polar opposites: the unmeasurable top conversion funnel versus clickable ads that can provide instant conversions at the bottom. But in fact, brand marketing is better seen as a tactic within the performance marketing category, says Eric Seuvert. mobile development note.

It is more than just an exercise in semantics. Seuvert said performance takes a back seat to brand marketing in many organizations, which can be “intimidating,” because it means fewer creative assets and less experimentation for certain platforms. Brand marketing also pulls the lion’s share of the budget before it gets to the “performance” team (the people who have to rigorously justify every penny they spend).

This does not mean that brand marketing is not a useful tool. Probably the best way to sell in a store is when many similar products are presented to shoppers wrapped in a well-known brand. But brand marketing can and should be a ROI-based channel. “What causes the confusion that primarily leads to inadequate investments, poor incentives, and structural deficiencies within marketing organizations is the idea that brand marketing and performance lie at the same hierarchical height,” Seuvert wrote. “Performance marketing is a category, marketing Branding is a tactic that can fall into the category of performance marketing.”

back outside

Media companies and marketers are struggling to maintain levels of audience participation the same they have been during the pandemic.

After a surge in media consumption last year, new growth is beginning to wane and may continue to decline until 2022 as people return to pre-pandemic measures. But behavior is not the only deterrent. The supply chain disruptions associated with the pandemic are also affecting media consumption, Axios reports. You can’t use your Roku to overeat if your Roku is stuck on a ship somewhere.

But it’s not really fair to compare this year to last year, which was skewed by the lockdowns. Growth in news consumption and streaming subscriptions, for example, is still much higher than in 2019, according to data from a similar site.

And while we’ve reached a saturation point for growth across many subscription segments, media consumption likely won’t return to pre-COVID levels. And hey, there’s always room for good old AVOD to grow.

But wait there is more!

Can Stat, a health and life science publication born out of the Boston Globe, make a niche media run work through its B2B media approach? [The Rebooting]

Learn about Zestworld, a subscription to comics and graphic novels, where content creators can monetize their media merchandise or edits. [NYT]

The new “Black Friday” is… every day. Shoppers buy anytime as long as the price is right, and they are increasingly looking to people and sources they can trust for what they buy. [Protocol]

The UK’s antitrust watchdog is expected to block Facebook’s $315m acquisition of Giphy. [FT]

With the disintegration of General Electric and other old-school behemoths, Amazon, Apple, Alphabet, Microsoft, and Meta have taken their place as companies that do everything in the future—and business schools note. [WSJ]

You are Tenant!

Jack Dorsey, the co-founder and CEO of Twitter, has resigned from his position (here noticing it for employees), and to be replaced by longtime CTO Parag Agrawal (noticing it).

In-house Lego agency names former McCann Australia CEO as its new chief. [Adweek]

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