European antitrust regulators have launched an investigation into Google's ad-tech operations, including whether the company's plans to improve consumer privacy will give it an unfair advantage against other ad-tech providers.

“We are concerned that Google has made it harder for rival online advertising services to compete in the so-called ad tech stack,” European Commission official Margrethe Vestager stated Tuesday. “We will also be looking at Google's policies on user tracking to make sure they are in line with fair competition.”

The authorities said their investigation will cover several areas, including Google's requirements that advertisers use its services to purchase and display ads on YouTube.

The probe will also focus on several of Google's privacy moves, including its plan to block third-party cookies on the Chrome browser, and to stop transmitting Android device identifiers when users opt out of receiving personalized ads.

“The formal investigation will notably examine whether Google is distorting competition by restricting access by third parties to user data for advertising purposes on websites and apps, while reserving such data for its own use,” the European Commission stated Tuesday.

Google has repeatedly vowed to impose the same restrictions on its own ad-services products (including the former DoubleClick) as on outside ad-tech companies.

“We have explicitly stated that once third-party cookies are phased out, we will not build alternate identifiers to track individuals as they browse across the web, nor will we use such identifiers in our products,” the company wrote earlier this month in a blog post outlining commitments the company made to regulators in the UK.

“Building on this principle, the commitments confirm that once third-party cookies are phased out, our ads products will not access synced Chrome browsing histories (or data from other user-facing Google products) in order to track users to target or measure ads on sites across the web,” Google added. “Further, our ads products will also not access synced Chrome browsing histories or publishers' Google Analytics accounts to track users for targeting and measuring ads on our own sites, such as Google Search.” 

A company spokesperson also said it will “engage constructively with the European Commission to answer their questions and demonstrate the benefits of our products to European businesses and consumers.”

The European Commission specifically said it will focus on whether the proposals set out in Google's “Privacy Sandbox” will have an effect on “online display advertising and online display advertising intermediation markets.”

While the Privacy Sandbox outlines several different plans, the controversial Federated Learning of Cohorts is among the most well-publicized. That plan appears to involve placing Chrome users into audience segments based on their web-browsing activity, and then transmitting data about those segments directly to publishers through a Javascript API.

Google is facing several antitrust lawsuits in the United States, including one brought by a coalition of states led by Texas. The authorities in that action allege that Google rigged auctions for online display ads, and that the Federated Learning of Cohorts system is anti-competitive.

The digital rights group Electronic Frontier Foundation has also criticized the cohort-based targeting proposal -- though for reasons related to privacy, not antitrust.

That organization calls the plan a “terrible idea,” adding that the proposed targeting system will make it impossible for Chrome users to surf the web without also transmitting information about their potential interests.

“Every site you visit will have a good idea about what kind of person you are on first contact, without having to do the work of tracking you across the web,” the group wrote.

In the U.S., the self-regulatory privacy group Network Advertising Initiative -- which represents many small ad-tech companies as well as Google -- hasn't taken a position on whether Google's plans are anticompetitive.

David LeDuc, vice-president for policy at the organization, says the group supports plans to advance privacy, but believes “enhanced privacy can be achieved at the same time as maintaining a competitive digital advertising marketplace.”

He adds that the organization thinks policymakers “should be keeping a keen eye on all of the large platforms,” to make sure they're not placing other companies at a competitive disadvantage.

Google isn't the only large tech company facing antitrust complaints over privacy moves.

Business groups in Europe, including the Interactive Advertising Bureau France, have raised antitrust concerns about Apple's privacy moves, including its recent decision to require mobile developers to obtain users' explicit consent before tracking them across apps.

In March, French regulators declined to prohibit Apple from moving forward with the new settings.

Email remains one of the top channels in driving B2B revenue. But this doesn’t mean it is getting better by the day or that more dollars are being poured into it, judging by 2021 State of B2B Digital Marketing, a study by Ascend2 and Wpromote. 

Email is tied with content marketing for second place in effectiveness among digital channels, cited by 47% apiece. Social media is first, with 57%.    

But only 28% say they will be increasing their email budgets in the year ahead, versus 55% for search, 44% for content marketing, 37% for display advertising and 34% for paid search. 

Granted, this could be because email infrastructure is already in place. And brands may be struggling to catch up in social media.    

Not that any one channel is all-important — 35% are shifting to a diversified marketing strategy.  

Overall, 68% expect their digital marketing budgets to increase — with 42% who expect them to increase moderately and 26% significantly. Another 14% say they expect budgets will remain the same, while 12% that they will decrease, and 3% significantly. Just 6% are unsure.  

In addition, 30% say they are significantly increasing their technology spend, and 37% say they will increase spend moderately. The budgets will remain the same for another 17%, and will decrease for 16%, including 9% who say they will decrease in a major way.   

Budgets aside, here are the digital marketing trends they are prioritizing:

• New social platforms — 42% 
• Virtual events — 34% 
• Influencer marketing — 30%
• Retention marketing — 28%
• Data science — 24%
• Automation — 23%
• Transparency (i.e., adding price to site) — 22%
• Adding direct purchase option — 19%
• Authentic messaging/cause marketing — 17%
• AI & chatbots — 13%

But email reigns at both the top and the bottom of the funnel:

The top 5 Top-of Funnel Tactics:

1. Email 
2. Brand marketing (Television, OTT Advertising, CTV)
3. Organic Social Media
4. Video
5. Personalization/Content

And the top 5 Bottom-Of-Funnel Tactics:

1. Email 
2. Personalization/Content 
3. Organic Social Media
4. Influencer Marketing
5. Video

How successful are the respondents’ email marketing strategies? Their effectiveness is: 

• Increasing significantly — 17%
• Increasing moderately — 41%
• Staying the same — 24%
• Decreasing moderately — 11% 
• Decreasing significantly — 5%

All that said, B2B brands face several barriers to success. For organizations with under $10 million in annual revenue, they are: 

• Aligning marketing and sales—37% 
• Securing staff & budget—36%
• Generating enough leads—36%

For firms generating over $10 million, they are:

• Producing quality content — 38% 
• Improving customer experience — 37% 
• Delivering quality leads — 32%

Moreover, B2B marketers are facing these lead generation challenges:

• Creating targeted/challenging content — 46%
• Collecting quality data — 43% 
• Managing and tracking leads — 38%
• Communications with sales/aligning goals — 36%
• Allocating sufficient resources/budget — 34%
• Measuring and attributing leads — 26%
• Building an efficient tech stack — 19%

B2B brands are also trying to cope with changes on the privacy front—for example, deprecation of third-party cookies. Here is where they are in that issue:

• We are currently operating with a working a strategy implemented — 30%
• We have a strategy outlined and have a started the implementation process — 28%
• We have started to look into what we need to do, but haven’t started — 22%
• We have done nothing, and have no plans to do anything differently — 20% 

Silos are another issue. The best-in-class marketers list these departments as having critical involvement in developing a customer experience strategy:

• Customer service — 49%
• Marketing — 48% 
• Web development/IT — 38%
• Sales — 32%
• Product — 32% 

Here’s how the least successful marketers answered the question:

• Marketing — 59%
• Executive team — 41%
• Customer service — 36% 
• Sales — 24% 
• Product — 18%
• Web development — 18%

Among those polled, 42% describe themselves as very successful, or best in class. Another 52% say they are somewhat successful, and 7% unsuccessful. 

Best-in class marketers measure success by:

• Website traffic — 44% 
• Cost per lead — 38%
• Customer acquisition cost — 36%
• Attributed revenue—36% 
• Lead volume — 35% 
• Conversion rate (lead to customer) — 33%
• Return on investment — 31%

Here are the digital customer experience areas that have the most impact on overall strategic success: 

• Social media — 57%
• Website optimizations — 47%
• Paid advertising — 42%
• Mobile communications — 31%
• Purchase process — 30%
• Live chat/chatbots — 26%

Ascend2 and Wpromote surveyed 258 marketing professionals and a curated list of marketing research subscribers in May 2021,. All respondents were from organizations with more than 50 employees. 

Telmar, a leading provider of media-planning and buying software and data to ad agencies, this morning announced it is offering a cookie-less identity data solution developed by ID5 to help agencies and brands target consumers as third-party cookies and mobile ad IDs (MAIDs) are deprecated by big platforms like Google and Apple.

ID5 claims its "universal ID solution enables the sharing of user-level information," as well as the "activation of first- and third-party data" in all browser and in-app advertising environments. It also asserts that its solution is 100% consumer privacy-compliant.

While countless post-cookie identity solutions are flooding the ad marketplace in the wake of Google's and Apple's moves, becoming integrated into Telmar's systems provides a tacit vote of confidence for ID5's method.

In a related move, Telmar said it is joining "Inside," a partnership program developed by ID5 for technology and media companies to support the distribution of its cookie-less IDs.

In a statement, ID5 CEO Mathieu Roche claimed the company's IDs are "active on more than 60,000 websites and reaches over 500 million users per day globally."
 

Above: Two of the most-popular hard seltzer brands among Gen-Zers and millennials.

Want to reach younger legal-age drinkers with a hard seltzer or ready-to-drink (RTD) cocktail? Try striking a balance between wellness and indulgence.

“Drinks that cater to a healthy lifestyle without sacrificing alcohol content are likely to be well-received,” concluded Reach3 Insights, based on recent research into the alcoholic beverage drinking plans of Gen Z and millennial consumers as they head into this first post-pandemic summer.

“There’s a desire among this cohort for functional types of ingredients,” Reach 3 Insights CEO Matt Kleinschmit told Marketing Daily. As an example, he pointed to Vizzy Hard Seltzer, which trended hot among respondents. That brand’s label boldly states “With AntiOxidant Vitamin C.”

Other functional aspects appealing to younger drinkers are portability and low-alcohol content, Kleinschmit said, but “no-alcohol” is a no-no.

As younger drinkers head back outdoors -- and indoors -- this summer with what Kleinschmit termed a “pent-up demand for interpersonal social gatherings and getting out with friends,” 90% of respondents said they will drink the same or more as compared with last year.

And hard seltzers and RTD cocktails should be a big part of that.

“Hard seltzers continue to be a mainstay of this cohort, with RTD cocktails waiting in the wings,” Kleinschmit said.

Indeed, 37% of respondents said the hard seltzer category as a whole is here to stay, with 79% expecting the so-called craze to “last” at least until next year.

Meanwhile, 77% expect RTD cocktails to be “hot” this summer (compared with 71% for hard seltzer) -- good news for brands in the category, being that 51% of respondents also expect to order alcohol for delivery.

Both the convenience of RTD cocktails and the willingness to get drinks delivered represent holdover behaviors from the pandemic that may now be here to stay. Ecommerce has taken off, and looks like it will continue,” stated Kleinschmit.

Among the questions alcohol marketers now face, he said, are whether or not hard seltzer drinkers will transition over to RTD cocktails – and what exactly will appeal to consumers in both categories.

Vizzy, for example, is a MolsonCoors brand, but not marketed as an offshoot of an existing beer brand. Michelob Ultra, on the other hand, received a very low hotness score, which Kleinschmit said was caused by both lack of awareness and “confusion about whether it’s a beer or a hard seltzer.”

Pointing out that the rapid rise of hard seltzers took the alcoholic beverage industry by surprise, despite all the market research that’s done by industry players, he added that it’s imperative for them to understand “what’s the next thing that will be hot.”

In that regard, here are some of the RTD brands now termed hot by Gen Z and millennials: Loyal hard lemonade, Jack Daniels blended with cola, Crown Royal Whisky & Cola, and On The Rocks Effen Vodka. One of the lower scores went to Fugu Vodka Bloody Mary, apparently because it lacks sweetness.

As one respondent told Reach 3, his peers want “hard seltzers with fruit, mixed drinks again with fruits …anything kind of sweet, very refreshing."

Both hard seltzers and RTD cocktails lend themselves to summer outdoor activities, of course. In fact, Just 58% of respondents were “very excited” to get back to indoor drinking (although the figure rises to 66% in urban areas).

Reac3’s research was conducted via mobile messaging conversations -- including the opportunity for them to include their thoughts on video -- conversations with 300 Gen z and millennial drinkers from May 6-10.

Here’s something ecommerce brands can offer to apparel shoppers via email: Virtual try-on. Of consumers who have tried it, 69% went on to buy the product, according to a study by Vertebrae, a firm that specializes in 3D and augmented reality tools for retail.  

Of the consumers polled, 44% have used virtual try-on, and 75% of those have done so in the past year. 

Moreover, 77% of those who have not experienced would try if it were easily available, and 49% would be likely to buy. 

We’re not talking about apparel try-ons: Eyewear and sunglasses dominate, with 70% of shoppers believing VR would be most useful when making a purchase decision in these areas. And, 79% say they would use it when it is easily available on web or mobile. 

One caveat: the company did not supply methodology with its announcement, and had not responded to a query by deadline.  

How cool it would be if the customer could initiate the try-on in the email without jumping to another site. 

When it comes to trust, 47% trust eyewear brands themselves, not Amazon (15%) or big-box retailers (29%).  

But be warned: 43% of shoppers are unlikely to use virtual try-on if it requires extra steps like uploading a photo or entering measurements.  

Despite that, 63% agree the most helpful uses for it are: 

• I can see if the style is right for me — 63% 
• I can see whether the color is right for me — 51% 
• I get an accurate sense of the size of the item — 46%

“Virtual try-on is transforming shopping for entire categories like eyewear, hats, footwear, and soon clothing,” said Vince Cacace, founder and CEO of Vertebrae.

What business is Vertebrae in? augmented reality and 3D.

Nextdoor, the neighborhood app, on Monday announced the appointment of Jose Gaztelu to head of international.

Based in London, his focus will be to lead the company’s growth and expansion outside the United States.

Social network growth patterns during the next 12 to 18 months in the U.S. are in a “post-pandemic state,” said eMarketer Analyst Deborah Williamson, during a podcast published today.

eMarketer estimates that monthly social network users rose by 7.6 million in 2020 -- about 3.7% growth, much higher than expected. The growth is returning to pre-pandemic patterns.

Now companies like Nextdoor are ready to expand globally.

There are more than 276,000 Nextdoor neighborhoods across the globe. The app is available in the United States, the United Kingdom, France, Germany, the Netherlands, Italy, Spain, Australia, Denmark, Sweden, and Canada.

The company estimates the app is used in one in three U.S. households, with 52 million local business recommendations from neighbors.

Gaztelu comes to Nextdoor with experience building and growing tech-consumer platforms in the U.S., Europe, and Asia.

Recently, he helped accelerate Domestika's international expansion and spent four years with Houzz in London, where he took responsibility for launching the company’s international ecommerce business and private label teams for the U.S. market. He also led expansion into Spain.

Before Houzz, Gaztelu also worked at fashion online retailer Global Fashion Group where he joined as CEO for Zalora Thailand and later became managing director for Zalora Singapore, Hong Kong and Malaysia.

Gaztelu began his career at McKinsey & Company advising clients in mainly consumer, retail and telecommunication and media industries across Europe, the U.S. and Southeast Asia.

Nextdoor, which eMarketer classifies as a “slightly smaller social player,” has experienced significant growth during the past two years, with daily active users up 50% in 2020, compared with the prior year, according to eMarketer. People looking for local information such as vaccine locations fueled the growth. It moved from being a bulletin-board to a “microcosm for tensions.”

The key to growth will become finding a way to moderate the content, Williamson said.

Google is dedicating a week to celebrate and help small businesses by introducing a variety of tools and offerings that make it easier for them to find and connect with customers across Search, Maps, Ads and YouTube. The news was announced Monday.

Small businesses -- the backbone of most economies -- typically employ less than 250 people. Micro-, small, and medium-sized companies make up more than 90% of all firms worldwide and account for about 70% of total employment and 50% of Gross Domestic Product (GDP), according to the International Council for Small Business (ICSB).

For consumers supporting small businesses, Google will provide a $10 cashback bonus when people pay with Google Pay on their Pixel phones through July 4.

For small businesses, after adding ways to edit details on the company's Business Profile directly from Search and Maps, Google added more features on the two platforms that enable retailers, and food and local services businesses -- like companies focused on personal care -- to add specific services like beard trimming, or the ability to share menus and accept food orders.

Google also created a new Digital Essentials Guide focused on the basics of being found and transacting with customers on Google and across the web.

Google Searches for “who has” and “in stock” have grown by more than 8,000% year-over-year, making it more important to keep inventory listings up to date online.

Tools to support small businesses with limited resources include Pointy from Google, which creates a connection between the physical store and the Business Profile on Search and Maps so companies can drive more traffic to their store.

As barcodes on items are scanned, Pointy automatically adds the product to the company’s profile so customers can see what’s in stock. Eligible retailers can access Pointy for free through September 30, 2021.

Search, Maps, and Ads are not the only ways for small businesses to connect with consumers. Some 72% of small businesses in the U.S. believe YouTube helps them boost their online presence and to spotlight their products and services. So YouTube will offer some of the same tools on its first YouTube Small Biz Day.

The goal is to offer an easier way to create video ad campaigns in minutes by adding a video ad, audiences that marketers want to reach, and the budget to launch a campaign. The new mobile experience also helps small businesses measure campaign performance.

Barton Springs Mill, an organic heritage grain and corn distributor, made a living selling stone-milled flours to a small community of restaurants and bakeries. Then COVID-19 set in, and Barton Spring Mills Founder James Brown uploaded a video to YouTube to let the community know “We’re still here!” The move pivoted the company from a wholesale model to selling online direct to customers.

The company began posting bread-baking tutorials, teaching bakers in the area how best to use their grains. People baking at home became curious about sourdough starter, which flour to buy and how to use specialty grains. Tutorials soon gained views worldwide.

Blogilates founder Cassey Ho will host YouTube Small Biz Day. Ho built and expanded her business on YouTube for more than 11 years. The channel has about 5 million subscribers and 800 million views.

Along with Ho, Small Biz Day will feature YouTube creators and business owners Molly Burke, Erin on Demand, and TheDomesticGeek. These creators, along with several small business owners, will share their experiences and advice via insightful panel conversations, an instructive how-to workshop, and helpful resources.

YouTube also will host a live streaming event on June 24, that will let consumers shop on YouTube from a select group of small businesses with one-of-a-kind fashion and beauty products, delectable foods, unique lifestyle items, and more. 

Those who tune in also can expect panels and workshops.

Citi is promoting its new Custom Cash card with the help of comedians Dan Levy and Rashida Jones.  

In a unique twist on cash-back cards, the Citi product actively adapts to individual spending behaviors and automatically offers 5% in returns on the eligible category that cardmembers’ spend the most on each month on up to $500 in purchases and 1% cash back on all other purchases. In short, this card takes the complexity out of cash back.

To amplify the campaign and bring this ethos of simplicity and flexibility to life, Citi is launching a digital-first national marketing campaign deploying strategies ranging from celebrity partnerships to mobile engagements on social channels such as Snapchat and YouTube. 

The campaign, created by Publicis, is not using print media or OOH other than Citi Bikes, Citi Field and in branches, says Mary Hines, CMO, U.S. Consumer Bank, Citi.

“While digital was important before the pandemic, it is truly at the forefront of everything we do today,” Hines tells Marketing Daily. “And it was certainly top of mind for the design of the Citi Custom Cash Card as well as our marketing campaign design and rollout.”

Leveraging Levy’s clear comedic voice and style, he and Citi worked in close collaboration to create the series of fun spots which showcase the friendship between him and Jones. Five videos show examples of scenarios where customers can be rewarded. The debut 30-second spot features the comedic duo at a fitness class, gas station and restaurant. 

“Celebrities are an immensely powerful way to break through with consumers because they bring the brand voice to life in a new, compelling and relatable way,” Hines says

The effort also includes digital audio ads which are running on iHeart Radio and Pandora. Comprehensive takeovers are planned for platforms such as Flipboard and Twitch. 

“We took a step back and asked ourselves how we could show up differently from Citi campaigns you’ve seen before,” Hines says. “That’s why we are exploring new engagement channels – such as Twitch – and engaging celebrities in an exciting, new way. This is such a different card, and in tandem, a wholly different look for us.”

Recent Citi research shows that 82% of millennials' spending varies month-to-month based on their shifting interests and priorities and 87% expressing a desire for a credit card that does the work for them to maximize their rewards based on their changing spending patterns.

More than one-third (36%) said their spending has changed over the last year and their current credit cards don’t reward their new spending patterns. And, going forward, this group is eager to resume their favorite activities and get rewarded for doing so, reporting that they’re most looking forward to traveling (66%), going to a restaurant (45%), going to a concert (31%), going to a party (25%), and going to an in-person workout or fitness class (17%). 

For many consumers, earning cash back is the fuel that makes these activities possible, so much so that more than two-thirds of millennials (69%) say that getting cash back is absolutely essential or very important to them when applying for a new credit card.

The top eligible spend categories of the Custom Cash Card are restaurants, gas stations, grocery stores, select streaming services, select travel, select transit, home improvement stores, fitness clubs, live entertainment and drugstores.