Weekly Digital Breakdown 6.5.20
Weekly Digital Breakdown
Jun 05 2020
Facebook Researches Chatbot Data
As Facebook continues their efforts to refine digital storefronts with Facebook Shops, they are also expanding their efforts to understand how to improve the customer experience. Facebook researchers are examining how information gained from human interactions with chatbots can improve online shopping. Initial findings demonstrate that the automated conversations averaged high customer satisfaction results and can then be applied to other areas of the shopping experience to help improve interactions.
Chatbot usage has continued to increase over the past few months with stay-at-home orders during COVID and are used to drive online sales with minimal overhead costs. The technology can be embedded in various iterations of a brand’s site from browser to mobile app and are easily accessible to consumers to get accurate information quickly.
Despite releasing the research results, Facebook has not made any steps to integrate the technology into its platform. However, as they begin to move toward an ecommerce focus to help small and medium businesses, the technology may prove to be another way to boost business and help drive sales.
Snapchat Expands Dynamic Ads Globally
The shift to a heavy ecommerce focus for business does not seem to be slowing down as the country begins to reopen. In response, Snapchat is expanding their dynamic ads option globally to provide advertisers a way to show relevant ads to users by connecting to an updated product feed. The ads are available through mobile-ready templates to eliminate the need for manual ad creation and the ability to allow Snap to build ads in real time.
During Snapchat’s Q1 earnings call, the company noted that even with companies decreasing their advertising budgets,direct response ads, such as those used in ecommerce, still had strong results. The ads have been effective in driving consistent and measurable ROI and have been especially successful when social media consumption is extraordinarily high.
Snapchat’s success further demonstrates the need for businesses to accelerate their ecommerce strategy. The consumer response to online shopping has highlighted an opportunity to expand brand reach and a way to grow ROAS (return on ad spend) to maximize effectiveness.
Google Facing $5 Billion Lawsuit
The ongoing antitrust lawsuit against Google of illegally collecting data from users browsing through the private Incognito mode is gaining steam. A lawsuit filed against the tech giant this week is seeking $5 billion.
The complaint accuses Google of collecting online user data through Google Analytics, Google Ad Manager and other applications and website plug-ins. The information is then used for ad targeting purposes that helps brands better reach their target audience.
The suit is looking for at least $5,000 in damages per user for the violations of federal wiretapping and California privacy laws. Big tech continues to find their data collection and usage under tight scrutiny as online privacy is pushed to the forefront for consumers and legislators.