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Facebook is no longer delivering results. What are the alternatives for advertisers?

After nearly a two-decade run of being one of the top social media platforms and source of advertising for nearly 3 billion global users, Meta-backed Facebook’s traction is dropping. In the first quarter of 2022, 500,000 users left the platform, yielding an immediate 20 percent decrease in Meta’s stock market shares.

Facebook’s 2022 setbacks come after an equally challenging 2021, in which the platform lost $10 billion in advertising revenue. The loss however is not surprising to expert advertisers who have been anticipating a decline for years, especially after Google announced the death of cookie tracking and Apple debuted its App Tracking Transparency allowing users to opt out of device ID-based monitoring by apps.

With more privacy-backing being initiated into the consumer marketplace, advertisers are left wondering what their next pivot will be. If using cookie data and app data is out, then what’s in?

The answer is contextual data and targeting through video advertising, which are pillars of success and return on ad spend (ROAS) at Percisce TV.

What YouTube and TikTok are doing to transform the marketing playing field

Video platforms like YouTube and TikTok are increasingly becoming what brands and consumers can’t live without. Both platforms operate as entertainment centers, rather than purely social networks that are dependent on users' friends/family to be active in order for users to enjoy the apps.

This year, TikTok’s consumer base grew to over 1.5 billion users and while its 2021 ad revenue was $3.88 billion, AdAge reported that TikTok's ad revenue is expected to triple this year to $11.64 billion, which is more than Snapchat and Twitter combined.

TikTok’s growth and the general popularity in video streaming on Youtube and TV, offers a huge benefit to advertisers because everyday consumers are engaging with the content they actively enjoy and choose to watch. This allows strategic marketers to utilize the context behind their behavior when distributing ads. Contextual data and targeting is backed by machine learning and artificial technology at Precise TV.

Much of TikTok’s specific success is attributed to its ability for paid ads to be boosted organically as users engage with it, a method that was once popular on Youtube in 2010-2012 and later with Facebook. 

While the use of TikTok to scale ads is fairly new, businesses are catching on and utilizing the platform’s traction. In quarter two of 2022, Scrub Daddy, the manufacturers of the smiley face sponge, most notably seen on Shark Tank, divulged that going viral on TikTok has been an immense success in sales lately. 

In an interview with The Philadelphia Inquirer, Scrub Daddy CEO Aarin Krause said thanks to TikTok’s engagement tracking, he knows “immediately how many people saw [a TikTok video].” If 2 million people watch a video, 250,000 people liked it, and 3,000 commented on it, the CEO said, he can track TikTok users following the link from a video to the company’s Smile Shop to make a purchase. “I know exactly the ROI on that. You can’t get that kind of data anywhere else.”

But the thing is, advertisers can get that data elsewhere

While Krause is on to something by utilizing TikTok to scale smiley face sponge sales, much more can be done in the space, specifically with Precise TV’s backlog of data.

Precise TV’s AI model focuses on safe and needed consumer data, rather than jumbling all available data into a broad focus point. By bridging the gap between a business's data and our own, Precise TV is able to focus on the culture, core and context behind user purchases. 

By doing so, Precise TV is able to better provide social media and television ads that are placed strategically on particular videos, rather than channels or networks to better work for both the consumer and the business. 

Through Precise TV’s proprietary technology, we speed up the analytics in a businesses’ attribution window that usually can take up to 30 days to track the amount of time taken between a consumer first seeing a video advertisement to making a purchase. 

To learn more about how we can use our model to get your brand better ad placement across YouTube, TikTok and CTV, and, ultimately, better conversion and ROAS, get in touch.

Topics: youtube, Google, privacy, advertising, contextual targeting, tiktok, CTV, facebook