The recent announcement on the roll-out of tools ‘My Ad Center’ and ‘Results about you in Search’ by Google, will from here on provide more power to the users. What it means is that users will be able to select the ads as per their preference, thereby personalizing the ad experience on YouTube, Search, and Discover feed. At a time when Google is in the process of phasing out third-party cookies, the roll-out of the new tools means that advertisers, will now have to create key performance indicators to measure the impact of each and every ad. “Advertisers will have to be more focused and think about their targetted metrics and cohorts that they would like to activate for their campaigns. This will make advertising more effective and sharper with a balanced view on privacy of consumers taken very seriously,” Gopa Menon, digital head, South Asia, Mindshare, said.
As per industry experts with this move, Google has managed to place itself as a premium platform. As per industry sources, Google owns nearly 70% of the global search market share and is the leading player in paid search advertising. Now, the company will be armed with the dataset of users for a specific category, narrowing the data set of targetted advertisements to the best of its ability. With this positioning, it is believed that the platform is expected to increase its ad rates by 20-30%. “With every year, the cost of digital advertising is steadily rising, and Google Ads are no exception. The platforms are getting more competitive, and brands are increasing their bids and budgets, trying to meet rising demand as consumer behavior shifts and the number of online shoppers keeps growing,” Piyush Tripathi, business director and media lead, Isobar Group, told BrandWagon Online . On average, the cost of Google Ads increases 15-25% in 2021, as per industry analysts.
According to latest reports, 48% of people worldwide have stopped buying or using a service from a company due to privacy concerns. Hence, the tool is being seen in a positive light. For Akshae Golekar, co-founder, Optiminastic Media, while this was an expected move, the tool will have an impact on performance marketing. The digital ad budgets will now be diverted more towards influencer marketing from performance marketing. “Brands will invest less in performance marketing as the numbers were already going down,” he added.
To provide perspective, digital advertising in India is expected to equal television advertising and may even surpass the latter by 2023, according to a report Digital Advertising in India 2022 by advertising agency Dentsu. Digital spends will clock a third of all advertising spends in India by that year. Out of expected total advertising of Rs 93,119 crore, digital advertising will account for Rs 35,809 crore by 2023 at 14.75% compound annual growth rate (CAGR). Digital media spends is expected to grow at 29.5% CAGR by 2023. “Clients will have to start investing and think about focusing on creating first party data and creating/ investing in their own data platforms and cut down on their reliance on third party or cookies ,” Menon explained.
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