With one change, Apple shifted the digital advertising landscape and made media giants vulnerable to loss.
When Amazon first moved into the arena of digital advertising, it encouraged shoppers to use the site to browse, bypassing Google altogether. Facebook was largely unaffected, due to its distinction as a social media site first and foremost, protecting it from policy changes. In June of this year, however, Apple introduced privacy changes on iPhones. And that’s when Facebook advertising started to fall short.
Until now, brands have been hesitant to sell on Amazon. There was a pervasive fear of losing direct connection with customers, making Facebook and Instagram the more attractive platforms. But with the implemented privacy change that asks iPhone users whether they want their mobile activity tracked, Facebook is struggling to tailor ads and help businesses find their optimal customer.
New York marketing agency Belardi Wong reports a 40% decline in the performance of Facebook ads across their roster of more than 300 clients. As people go back to work, Facebook investors are concerned that this change will be negatively compounded by consumers spending less time on their phones. Whether they like it or not, Amazon has evolved into a necessary channel for businesses.
Something Amazon cannot replicate—no matter it’s influence—is the opportunity Facebook and Instagram provided to introduce brands to consumers. Targeted ads on Instagram allowed users to learn about a brand or product that they didn’t realize they wanted. It created space for personality and brand ethos to shine through. Shinesty, an underwear brand known for its tongue-in-cheek advertising, is planning to advertise on YouTube to supplement their shift to Amazon. It’s not a perfect substitute for Instagram, but as founder Jens Nicolaysen says, “the bigger you are, the more you lose by not having any presence on Amazon.”
If you advertise exclusively on Facebook or Instagram, now is a good time to diversify.