In October, Google made Responsive Search Ads available to all advertisers. The functionality allows advertisers to automatically test different combinations in their ads against each other. Headers and descriptions are automatically swapped to find the best combination between them. Many PPC specialists see Responsive Search Ads as an important functionality that is only at the beginning of its potential impact.

Furthermore, Google also launched the new Google Shopping, in which the ‘Buy on Google’ functionality is clearly put forward. Personal recommendations based on data are used. Within Shopping, too, the link with local is clearly made by being able to search directly via Google Shopping for products and prices in the neighbourhood.

Google Local update

In November, Google confirmed for the first time a major Google Local update via Twitter, which some also refer to as the Bedlam update. During this update, Google added neural matching to local searches, which Google previously did for regular searches in 2018. The update was fully rolled out worldwide, but uses artificial intelligence (AI). It will therefore continue to change continuously.

New online marketing trends

1. Automation, AI and machine learning

The impact of automation, AI and machine learning runs like a thread through all developments. Not only do they unleash a total technological revolution, but they are also an important tool for the 3 superpowers to grow online marketing budgets even faster.

With AI, a controlled world comes to an end, where programmers can tell the computers exactly what to do. They no longer give the instructions, but train the computers. The results cannot always be properly predicted and controlled. This poses major challenges. There will not yet be the last public discussion about it.

Automation, AI and machine learning have already made parts of the work we used to do unnecessary. Automation allows marketers to make smarter and better decisions at a faster pace. Not to be underestimated is also the role that technologies can play in the field of personalization. In spite of all the promises, there is still a lot to be gained in that area. Sundar Pichai (CEO Google) calls AI possibly the most important thing people have ever worked on.

2. Voice search: users speak more

Voice search continues to grow together with the growth of mobile. Users continue to type, but speak more when they search. Voice assistants are becoming increasingly popular, so this growth will certainly continue in the coming year. According to the National Center for Voice and Speech in the US, people speak an average of 150 words per minute and type 40 per minute. On average, therefore, voice search queries are a lot longer.

This technology also helps users to find the best deals online.

3. Optimization of business models through the use of data

Most advertisers have already carried out the necessary A/B tests. However, the number of advertisers that have embraced data-driven optimization within the entire company remains relatively very small. While it is precisely there that the difference can be made. 

Unsurprisingly, data is often used by iGaming platforms to help their customers find the iGaming site that offers the most profitable bets. This is for instance the case of this website that helps you find the best Asian bookies and through which you can find and compare all the best bookmakers in Asia.

Many leading players in the world have in common that they know how to optimize their business model in an (almost) scientific way. These parties, of course, often have the most data at their disposal and – by using this in the right way – they know how to create a flywheel for growth that will run ever faster. An important explanation for the fact that large parties are becoming larger and smaller parties have great difficulty in achieving at all similar growth rates.

Focusing on optimizing conversion rates is no longer enough in 2020. It is very important to look at optimization of the overall business model. Also propositions and prices can be tested and established on the basis of data-driven experiments.

4. Video will continue to grow

Advertising giants such as Google and Facebook are obviously doing everything they can to increase their sales and profits. Since both parties are already very dominant in terms of market share, growing by attracting more users is no longer enough for exponential growth.

In order to continue to exceed the high expectations of investors, they will have to develop new revenue models. Video clearly has a role to play in this. Billions of euros are still being spent on short commercials, most of which are brought to the masses via television. But Google and Facebook make it easy to show these commercials at the right time, to the right people, with the right message. Moreover, they make it easier to measure the impact of video compared to traditional media. This is precisely why more and more of these billions are flowing online.

5. Platforms continue to build their strong positions

In essence, we have 4 different business models. The oldest – and often least flexible – model is the model of hotels and car manufacturers. Another is the consultancy model, which includes consultancy companies, for example. You also have asset light models. Here, the pre-investments for one version are very large, but then it costs almost nothing, as in the case of Microsoft and Salesforce. Finally, you have the model of network orchestration, with platforms such as Amazon, Booking.com, Uber and Facebook. If you look at where the value within, for example, the Fortune 500 has been created in the last twenty years, it consists for about 20 percent of asset light models and for about 80 percent(!) of network orchestration.

On the internet, the parties that earn from the distribution of clicks, leads or sales almost always take off with the big money. The network effects and economies of scale of platforms are so great that platforms will certainly further expand their strong positions in the coming years. For advertisers, this brings with it great opportunities as well as great challenges.

Retailers experiment with transformation to platform models

Many (traditional) retailers are already experimenting with transforming to platform models. A logical consequence. The place you occupy as a retailer within the total distribution chain has become more important online than ever before. But it creates other challenges, because the transition from a less flexible business model to a network orchestration model is often initially also enormously capital-intensive.

For retailers active within the platforms, the distinction in proposition becomes even more important. Platforms with a strong focus on standardized products can push the price down at lightning speed. As a retailer, competing mainly on price within platforms will therefore in most cases not be sufficient.