Untouchable up until now, digital leaders are starting to show signs of weakness. Not only is it becoming difficult for them to attract new users, but they have the poor economic situation to contend with, a situation that is forcing advertisers to reconsider and lower their advertising investments. Consequence: tech companies’ financial results are dropping, and the stock market is plummeting.
Goodbye two-figure growth, hello budget cuts
Sources: La Presse, Meta voit ses profits fondre de moitié, October 2022 / Le Devoir, Meta, la maison mère de Facebook, supprime 11 000 emplois / Capital, November 2022, La croissance d’Alphabet (Google) déçoit au troisième trimestre, October 2022 / TVA Nouvelles, Twitter licencie environ 50 % de ses employés dans le monde, November 2022 / Les Affaires, Les utilisateurs toujours plus nombreux de Snapchat lui rapportent de moins en moins, October 2022 / *excluding the start of the pandemic
A format that is no longer working
Besides the current economic context, is the Big Tech model itself losing its shine? At Meta, setbacks are piling up: the younger generations are forgoing Facebook, Instagram users are denouncing, and even boycotting, the new version of the platform, and the metaverse—described as the future of the group—is struggling to take off. Even more pressing is the fact that trust is faltering. Data collection without users’ knowledge, suspicions of fake accounts, amplification of the phenomenon of false information, artificially inflated influencer accounts . . . the list of criticisms of social platforms continues to grow.
Digital ad fraud: the extent of the phenomena remains unknown
Sources: The Wise Marketer, Ad Fraud Costs U.S. Businesses Billions Every Year: It’s Time To Take It Seriously, July 2022 / Imperva, Bad Bot Report, 2022 / Entrepreneur, How to Avoid Getting Scammed by Influencers With Fake Followings, January 2022
If until now the digital giants reigned supreme in the online video market, here too, the tides are turning. The rapid development of connected TV (CTV) is changing things up, offering advertisers an alternative: more qualified impressions in secure environments.