As the global financial markets continue to digest the recently released fourth-quarter earnings report by the ‘Big Three’, there is a major number that should interest any player in the marketing business. According to recent data, while Meta (formerly Facebook) and Alphabet’s advertising (formerly Google) revenue saw a decline of 4% ($32.2 billion) and 3.6% ($59.04 billion) respectively, Amazon’s eCommerce advertising business for same quarter rose by a significant 19% ($11.6 billion).
This shift in revenue indicates that as the cost of living crisis continues to affect consumers globally, brand advertising is becoming less effective. In response, advertisers and brand owners are putting more of their budgets into direct-response campaigns that are targeted at customers at the moment of making a purchase decision.
This change in strategy reflects the reality of the current market, where consumers are increasingly focused on finding the best deals and maximizing their budgets. By investing in targeted, data-driven campaigns, brands and advertisers can reach consumers when they are most likely to make a purchase, leading to higher conversion rates and more efficient use of marketing budgets.
At a time when budgets are tight, this shift towards more data-driven advertising can be a crucial advantage for brands looking to stay ahead of the competition and grow their businesses. By focusing on customer needs and behaviors, brands can more effectively connect with consumers and drive results.
Take your digital transformation to the next-level. Do not hesitate to contact us via email at info@sbimediaglobal.com or info@sbimedia.co.uk. We are happy to discuss how we can help your business navigate this changing landscape and find success in the digital age.
Gain from our perspective. We are happy to share our 2023 outlook, SBI Passport. You can download the full report with the secure link below: