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Performance
Marketing Report
Q4 2023 EDITION
IN FOCUS:
GETTING READY FOR 2024
Leveraging the big changes of 2023
Foreword
Foreword
This is our last quarterly update for 2023. What a year it’s been!
After relative stability and the Google/Meta duopoly of the last decade, we seem to be in for big changes. The way consumers seek information and consume information is quickly changing, with profound implications for marketers.
Despite all these changes,the fundamentals of whatunites marketers remainthe same: understandingand meeting user needs.
Vish Sastry Rachokonda
Founder & CEO,iQuanti
Here are a few things to think about:
- Search is fragmenting based on both the generation and the specific need of the consumer.
- Consumers are more likely to access information through short videos rather than written words.
- The awareness of privacy continues to heighten, resulting in consumers increasingly refusing
- to opt-in to tracking.
- Meanwhile, the expectations of getting a great customer experience is also baseline now.
There – I managed to write four bullets without mentioning the word AI .
AI of course will have a profound impact on digital marketing – both in its ability to
deliver dynamic creatives and experiences and the capability to stitch together data better.
And, despite all these changes, the fundamentals of what unites marketers remain the same: understanding and meeting user needs. Marketers have evolved through the millennia as markets have evolved. We too will.
As we look ahead to 2024, it is clear that data-driven agility is key to adapting and I hope that you are all influencing your organizations to get there.
Despite all these changes, the fundamentals of what unites marketers remain the same: understanding and meeting user needs.
Here’s wishing you a happy 2024!
One
Performance
Marketing Platform
Updates
Google continues to drive ahead assisted by AI
• Total revenues were $76.7 billion, up 11% YoY, with Google Search ads remaining thebiggest revenue driver
• Performance was led by solid growth in the retail vertical where Google’s releasingadditional planning and insights tools to help advertisers run more effective campaigns.
• AI, and specifically the Search Generative Experience (SGE), has been the key driverfor innovation for Google in 2023 and will continue into 2024.
• Google announced new ad formats native to SGE that use generative AI to create relevant,high-quality ads; expect dynamic ads to increase relevancy and steer clicks to ads.
- PerformanceMaxhadanupdatewith“SearchThemes,”which allows advertiserst o further steer the AI with topics and categories to ensure the right audiences are reached.
- The Google anti-trust trial continues, where Google is defending its strategy to paylarge sums to the likes of Apple to supply search results. If found guilty, Google couldface a range of outcomes - from fines to the possibility that parts of Google could besplit out.
YouTube driving subscriber growth through YouTube Premium and short form video
- Revenues were up 12% year-on-year, driven by growth in both brand anddirect response.
Connected TV watch time and monetization are increasing, led byinitiatives such as the newly launched NFL Sunday Ticket. - Although a few technical issues have impacted some of the 1.5M subscribers it’sstill been a valuable customer acquisition tool.
- A loss leader for Google (potentially $9B over the life of the contract), it’spredicted that it could gain more than 2.5M additional subscribers for YouTubeon top of the 5M it already has.
- Spotlight Moments was launched, using AI to identify trending contentaround major cultural moments for brand sponsorship opportunities.
• For eg., serving company logos against trending seasonal content such asHalloween. - YouTube is empowering creators and brands with new AI-powered toolsand ad products (such as Video Reach Campaigns and Demand GenCampaigns).
- Additional tools to enable creators to produce impactful content (andtherefore more impressions to serve ads against) have been released:
- AI Insights: Starting next year, YouTube Studio will use AI to generate videoideas and draft outlines, helping creators brainstorm new content.
- Dream Screen: YouTube will soon start testing a new AI feature that letscreators generate video or image backgrounds for their Shorts.
- YouTube Create: This free video editing and production app for Android, iscurrently in beta testing in select markets.
Google rolls out November core update & reviews update
Google’s November 2023 core update, the fourth major update of the year, is currently rolling out and is expected to take up to two weeks to complete. This update introduces improvements to a different core ranking system than the previous updates.
Additionally, Google announced a reviews update, which will be the last to receive periodic notifications as these updates will now occur at a regular and ongoing pace. Google emphasizes the importance of high-quality reviews in its ranking process, providing a set of best practices for creating them.
What marketers need to know
Impact on Organic Performance
- This core update could significantly impact searchrankings, as Google prepares for AI-related changesin early 2024.
- The simultaneous rollout of the reviews update maylead to changes in how review content is evaluated andranked, affecting websites that publish reviews.
Related On-Demand Webinar from iQuanti
Rethinking 2024 Performance marketing for CMOs!
In a recent webinar, Vish Sastry (Founder & CEO, iQuanti) and our guest speaker Nikhil Lai (Senior Analyst, Forrester)discussed how CMOs can plan ahead to adapt to the new digital marketing landscape and achieve performancemarketing success in the coming year.
Watch the webinar to understand:
- Key digital trends in 2023 across:
- End consumers
- Channels and platforms
- Marketing economics
- The impact of these trends on performance marketing
- Specific success strategies for CMOs in 2024.
About iQuanti
iQuanti ignites powerful and predictable digitalmarketing performance for global brands withan approach rooted in data science and deepvertical knowledge.
• iQuanti offers a unique blend of channel management services,strategic consulting expertise, and proprietary product offeringsto empower brands to exceed their customer acquisition,engagement, and conversion goals.
• iQuanti’s award-winning and patented enterprise SEO platformALPSTM uses proprietary data science and machine learningto build predictive enterprise-level SEO roadmaps that deliverstronger ROI.
• Founded in 2008, iQuanti now has 500+ employees across NewYork, Chicago, Dallas, and San Francisco, as well as Bangalore,London, Singapore, Mexico City and Toronto. iQuanti’s topperformance marketing results have been recognized on multipleglobal platforms including the Global Agency Awards, UK SearchAwards, and International Performance Marketing Awards.iQuanti was named to the Inc.5000 list of fastest-growing privatecompanies in the U.S. for the ninth time in 2023.
Case
Study
How Laurel Road expanded its market with an innovative content strategy
In today’s cluttered, competitive search landscape, all brands are searching fora winning strategy to reach customers. But what does that look like?
Fintech brand Laurel Road’s digital-first strategy for expanding its banking and lending solutions for healthcare professionals holds some lessons.
Read the case study to see how the young brand worked with iQuanti to build a comprehensive content and SEO strategy and deliver a digital experience tailored to its audience. This strategy helped it expand its page one organic footprint for target non-branded keywords from one to 428. And, most importantly, win the trust and loyalty of its customers.
Case
Study
How Laurel Road expanded its market with an innovative content strategy
In today’s cluttered, competitive search landscape, all brands are searching fora winning strategy to reach customers. But what does that look like?
Fintech brand Laurel Road’s digital-first strategy for expanding its banking and lending solutions for healthcare professionals holds some lessons.
Read the case study to see how the young brand worked with iQuanti to build a comprehensive content and SEO strategy and deliver a digital experience tailored to its audience. This strategy helped it expand its page one organic footprint for target non-branded keywords from one to 428. And, most importantly, win the trust and loyalty of its customers.
Microsoft produces its strongest quarter ever
- Revenue was $56.5 billion, up 13%, due to its continued investment in generativeAI – its strongest quarter in history.
- Started selling the Microsoft 365 Copilot artificial intelligence add-on for its office app subscriptions targeting businesses.
- Helps to streamline processes by automating tasks and workflows across Word, Excel,PowerPoint, Outlook, and Teams and could help boost usage of the Edge browser.
- Could add up to more than $10 billion in annualized revenue by 2026.
- Injecting AI across Bing to provide more relevant, personalized answers and recommendations. The aim is to increase engagement on Bing and Microsoft’sEdge browser, both of which continue to gain market share.
- Bing’s market share increased to 6.92% in October – the highest share YTD(but still far below Google).
- Replicating Google’s Performance Max, with a Beta version to help advertisers reach a larger audience via an AI-based advertising model.
- ChatGPT launched its “browse with Bing” feature to allow access to recent data(previously ChatGPT only used data up to September 2021).
- This helps it compete with Bard which uses real time content from the web.
- It’s currently only available to paying subscribers but is expected to roll out to a wider audience eventually with a positive impact of increased users expected.
- Microsoft has introduced DALL-E 3, the most recent text-to-image model developed by OpenAI’s AI lab, to the entire user base of Bing. This upgraded AI system is now accessible at no cost within Bing Chat and Bing Image Creator.
- DALL-E 3 represents an evolution of its predecessors, crafting images based on textual prompts that Microsoft characterizes as both more lifelike and inventive.
Microsoft Corporation’s quarterly revenue from fiscal year 2008 to 2023
(in billion U.S. dollars)
OpenAI to launch “GPTs”:
A way to create custom models
OpenAI, at its first developer conference, announced significant updatesto its AI technology, including customizable ChatGPT versions (GPTs)and the launch of a digital store. These GPTs, easily created withoutcoding, can perform a variety of tasks like connecting to databases,managing emails, and facilitating e-commerce orders.
Custom GPTs may offer greater data security, as companies cankeep AI models within their own secure environments, reducing dataexposure risks.
We built GPTs with privacy and safety in mind As always, you are in control of yourdata with ChatGPT Your chats with GPTs arenot shared with builders. If a GPT uses thirdparty APIs, you choose whether data can besent to that API. When s builders customizetheir own GPT with actions or knowledge, thebuilder can choose if user chats with that GPTcan be used to improve and train our models.These choices build upon the existing privacycontrols users have, including the option toopt your entire account out of model training.
Related On-Demand Webinar from iQuanti
Measuring content effectiveness is crucial for several reasons. It helps businesses make informed decisions, allocate resources, and improve marketing strategies. However, how can one measure content effectiveness, the right way?
Watch this on-demand webinar where Wayne Cichanski(VP, Search & Site Experience, iQuanti), Rayan Nahas (VP,Channel Partnerships, Conductor) and Rachel Schardt(Customer Success Manager, Conductor) share seven keymetrics for evaluating the impact of your content!
• Build content based on consumer demand
• Have content across each stage of the user journey
• Measure the depth of your content across each topic
Learn how to:
Wayne Cichanski
Rayan Nahas
Rachel Schardt
VP, Search & Site Experience
iQuanti
VP, Channel Partnerships
Conductor
Customer Success Manager
Conductor
Meta and TikTok continue to go strong while Pinterest bounces back
- Q3 results were strong, with revenue increasing 21% YoY to $34.2 billion, the largest quarterly revenue since the company went public.
- Advertising revenue jumped 24% YoY to$33.6 billion, with ecommerce the largest driver of growth followed by CPG and gaming, as Meta’s post-iOS 14.5 optimized campaign types like Advantage+ ShoppingCampaigns drove ROI for ecommerce advertisers.
- While Reality Labs, its metaverse BU, has posted a loss of $11.5B YTD and a 26% fall in sales QoQ, Meta is doubling down on research – AI is the “biggest investment area” in 2024.
- Threads reported under 100M monthly active users and aims to grow to 1B users.
- Gen Z 1.3X more likely than the average userto have engaged with Reels in the last month:
- 20% time on Instagram spent on Reels
- 2B+ daily shares of Reels content
- 75% of Gen Z follow a business afterwatching a Reel
Updates from Meta:
7 Key metrics in measuring content effectiveness
Ever-evolving privacy expectations and regulations continue to impact platforms’ strategies
- Meta is launching ad-free subscription-based versions of Instagram andFacebook in the EU and neighboring countries, with TikTok also expected to follow suit soon.
This move aims to counteract the impact of EU regulators’ move to effectively bar Meta from combining user data across its platforms and external websites and apps unless users explicitly provide consent, hitting its ability to serve personalized ads. Subscription models will enable Meta to diversify revenue while being privacy compliant.
- The suit alleges that the company engaged in a “scheme to exploit youngusers for profit” by misleading them about safety features and the prevalenceof harmful content, harvesting their data and violating federal laws onchildren’s privacy.
Civil penalties, changes in business practices and restitution are all be on thetable as potential consequences.