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Massive news for all the tech platforms this week, with earnings calls and big developments in the US Senate's progression towards a ban-or-sale law for TikTok.

Strap in!

📈 Snap Inc to the Moon

Snap's earnings call late on Thursday was a big win, against expectations of many naysayers on X. With sales up 21% in Q1, beating analyst expectations, the stock jumped 25% in after-hours trading.

At Fospha we've been bullish on Snap for some time, and the big increase is a marker of the platform's rapidly developing performance marketing product.

With investment ongoing here, expect continued growth throughout 2024.

⚖️ TikTok Faces Uncertainty – But Marketers Aren’t Panicking

It’s been a tough and turbulent month for TikTok. On Wednesday, President Biden's signed a bill gives TikTok's parent company, ByteDance, 270 days to sell its stake or face a ban.

Potential outcomes: divestment, legal battles, operational changes, acquisition, or ban. Or, as we have seen so far, the threat fizzling out... TikTok CEO Shou Zi Chew this week expressed confidence in prevailing against legislation threatening to ban the app.

Despite legal challenges, TikTok remains a vital platform for marketers, with data showing a 20% surge in weekly ad spending post-bill passage.

It’s likely that TikTok will continue being crucial to marketing success even amongst this uncertainty – the app provides unparalleled reach and a vast audience, which continues to be advantageous to advertisers.

🚀 Meta Stock Falls - Despite Meta Surpassing Q1 2024 Earnings Expectations

In its Q1 Earnings Call, Meta reported robust revenue growth of 27% YoY. Net income surged 117% to $12.369 billion, surpassing estimates, while operating margin improved to 38%.

Despite this, Meta stock fell right after the earnings call - the main area that seems to have spooked investors is that Meta are proposing to spend more on AI.

Here's why this shouldn't affect your feelings about Meta as a media buyer:

1) Long term, investing in AI is clearly a smart bet. Investors don't like the sight of reduced profits coming in Q2, but this investment now is essential to securing Meta's long term future.

2) In 2023, 98% of Meta's revenue came from digital advertising. The ad product remains the core, and market tremors led by investment in AI are just a distraction.

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🗞️ HEADLINES YOU CAN'T MISS 🗞️

🚫 TikTok Lite Reward Feature Suspended

TikTok Lite's reward feature, which paid users a small amount each day to engage with videos, has been suspended in the EU due to concerns about its potential addictive effects, particularly on young users.

📈 How Amazon Uses AI to Grow its Ads Business

Amazon's Andy Jassy reveals AI's pivotal role in savvy marketing for cost-conscious shoppers, boosting a 24% surge in the ad business, and powering Prime Video's profitable rise.

💻 Online Ads Account for Over 78% of UK Ad Spend

According to the latest Advertising Association/WARC Expenditure Report, the UK's ad market soared by 6.1% to £36.6 billion in 2023, mostly online, surpassing Germany, France, and Ireland. 2024 forecasts predict a £38.8 billion spend, with search and online display leading.

▶️ YouTube Launches Affiliate Hub

YouTube introduces new affiliate marketing features, including Affiliate Hub and Shopping

Collections, to streamline partnerships between brands and creators. Autonomy in monetization empowers creators to engage audiences authentically, presenting a win-win scenario for businesses and affiliates.

🍪 Cookie Deprecation Pushed Back... Again

Here we go again... After two previous delays to Google's deadline for deprecating third party cookies, this year the industry did seem to feel like the H2 date was likely to stick.

Until Wednesday this week, when - following recent and ramping criticism of their Privacy Sandbox product designed to replace third party cookies - Google announced a third delay to the deprecation.

Good coverage of this here from AdExchanger.

Meanwhile, this piece from PMW argues that marketers should press on with adopting privacy-first techniques. The cookie phase-out isn’t a threat, but an opportunity for marketers, encouraging innovation. New paths, while initially challenging, offer better outcomes.

Regardless of the eventual date of cookie deprecation, privacy is steadily advancing. Third party attribution providers, AI, and cloud-based systems all enable marketers to work in this landscape.

Embracing change and harnessing technology will guide advertisers to success in the post-cookie era.

💍 TikTok Announces Preowned Luxury Category

TikTok launches Preowned Luxury category in the UK and US, allowing users to shop authentic luxury fashion within the app. With demand for pre-owned high-end items soaring, the move capitalizes on TikTok's influence in fashion trends.

Partnering with major UK resellers, including Sellier and Luxe Collective, TikTok aims to tap into the growing interest in sustainable luxury. Marketers should note the platform's expanding role in eCommerce, offering new opportunities to reach audiences interested in luxury fashion and sustainability.

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