Why Google's latest announcement disappoints

Google and Meta are often considered the lead horses when it comes to digital advertising, but in reality Google has been a distant second to Facebook and Instagram for a long time.

Google’s monopoly in the search space has enabled them to extract rents from brands for a long time, but most marketers and operators understand that things like brand search don’t tend to be incremental these days. 

The rise of TikTok has created a viable new option for DTC brands on the digital ad channel front, but it’s surprising Google has not been able to leverage its massive cash pile and technical expertise to turn a product like Youtube into a e-commerce ads giant. 

Instead, there seems to be more focus on creating blackbox offerings like Pmax, whose main goal is less about about driving value, and more about getting advertisers to spend money on low grade inventory in the Google catalog. 

Today we go over another Google announcement that DTC marketers are panning as a move to lower advertiser control and increase spend on stuff that doesn’t move the needle.

We also look at a new AI creative platform and ask the question: what are the risks and opportunities inherent when it comes to AI + peoples likenesses video creative?

And lastly, if you’re a brand getting into advertising and don’t know which creative format to go for, Alex P. from NoBestPractices.co shares her top 7. 

Remember though, format matters less than the message. 

This week:

• Another Google blunder

• Iterative AI Ad Creative - risks vs rewards

• 7 winning DTC ad formats

• Quick hits ← Check out the Allbirds financial slide after their IPO

Another Google Blunder

This from the Google Ads Liaison, Ginny Marvin. 

The community’s reaction? Discontent bordering on outrage. 

Here’s why.

Marketers like Collin Slattery think Google is taking advantage of its monopolistic rule over Search to force higher costs upon advertisers.

He wrote a blog post explaining his stance in detail, which you can read here. Some highlights:

• Google needs to chase revenue growth, but has already captured most of the market. Thus, the only way for them to grow is to increase existing customer (advertiser) spend. 

• Everyone is already spending on quality inventory, so Google needs to get people spending on its low quality stuff. 

• According to Collin, Google has made a number of changes over the years that intentionally make it difficult for advertisers to divest from low quality inventory. 

• An excellent example is the broadening of keyword matches. Exact match used to only display ads on searches exactly matching the words you input. Now, it displays it on “searches that have the same meaning or same intent as your keyword”, says Google, which gives them enough wiggle room to include keywords that might not be what advertisers want at all. 

• Then, there is PMax. The hands-off, give-Google-the-wheel option. It took operators a while to pop open its black box, which revealed that it funneled spend toward sub-optimal search and took credit for conversions it didn’t necessarily drive (more in our issue: Binary Battles).

Hence Collin’s outrage. He puts it simply: 

Video Action Campaigns (VAC) = great. Take my money.

Demand Gen = not great. No thanks. 

Now, Google is saying: 

You want VAC? You gotta get some Demand Gen with that. 

What’s the share? Black box, sorry. No one knows. 

Takeaway: Google is making another move to mix good inventory with bad, in what seems like a long term strategy to forcibly direct advertiser spend toward unwanted supply. 

Remember that Anthony Bourdain bit from The Big Short explaining CDOs? 

At some point, Google will need to innovate in ways that increase advertiser value, not their own take rate.

From Search to Gmail to Youtube, they control a huge portion of the digital ecosystem and information, but they continue to lag Meta when it comes to e-commerce spend and impact for advertisers.

Iterative AI Ad Creative - risks vs rewards

In our last issue, we spoke about the FTC’s new rulings that make it illegal to publish AI ads using a real person’s likeness that say anything the real person has not officially approved of. 

A week later, Kennan Davison introduces Icon, a platform that allows brands to create AI videos using creator’s likeness, with the ability to edit what they say with extreme ease. 

Here’s how it works —>

You pick the creators, have them record a single video, and Icon’s AI produces about more iterations with various scripts and animations. You pick your favorite, edit the script as you like, and voila! You’re good to go. 

It’s an incredible way to cut down on video shoot time and investment, enabling better scale and split testing. 

In general, the launch was met with applause and excitement from marketers and operators.

But there’s an elephant in the room.

Ok, so it’s probably legal. 

But the real issue will be one of abuse. 

Leveraging Icon to test different hooks with a legit creator or influencer testimonial? Okay. 

Leveraging Icon to make a creator’s likeness say just about anything? Not okay.

The responsibility partially falls on the creator here - they have reason to watch out for scripts that could reflect poorly on their image. They also have the power to veto those iterations via the Icon platform.

But as advertisers and brands, it’s important to use powerful tools like this wisely.

Don’t compromise authenticity or undermine the truth in exchange for quick wins or an easier processes. Use wisely to 10X your output and processes, but not at the expense of what makes UGC powerful in the first place.

Takeaway: AI video ads featuring creator likenesses are becoming a thing, and trust could become shaky if advertisers take shortcuts. Like all powerful tools, AI ads are at risk of being misused, which could ruin it for everyone. 

On the other hand, AI platforms like Icon could unlock an unprecedented new level of creative volume. 

Step carefully! Choose wisely!

7 winning DTC ad formats

Alex P. recently shared her 7 favorite ad creative formats for brands just getting started on her blog, NoBestPractives.co.

But before jumping in, she reminds you to think about: 

• Why people are buying your product – Understand the main motivations behind purchases, whether it's solving a problem, emotional appeal, or status signaling.

• How your product stands out from alternatives – Identify what makes your product better or different from both direct competitors and parallel solutions.

• Who your target audience is, and what pain points matter most to them – Pinpoint the specific problems your product addresses for the market segment you’re speaking to.

  1. Us vs. Them

Simple, but powerful.

Try comparing yourself to one or more products, and play around with the comparison points to find what resonates most. 

2. Social Proof

Basically UGC. You can either do it yourself or hire a creator. Or try out an AI platform that….well, you get it. 

Some advice we got from Harry Dry: own the fact that these are ads. 

Don’t just write “love this product #ad” in the caption, go hard: “Super proud to advertise this product because…”

3. Lo-Fi “Did you know?”

   This strategy is to call out a key differentiator in your product using a platform-native format.

4. ​Featured Review

Just feature a quote from a real customer review and place it in compelling context with an image. Dara Denney calls the best reviews for ads “Golden Nuggets”.

5. ​Founder Story

There are few formats as compelling as a charismatic founder explaining how they solved a relatable problem with their product. 

This content humanizes the brand and makes customers feel more connected to what it is trying to accomplish.

6. Millennial Infomercial

What Alex calls a Millenial infomercial is an ad under two minutes that follows the hook - problem - solution - objection framework, including creator testimonial (as in the UGC option), all packaged into a iPhone b-roll format. 

Script, pacing, editing and creator charisma are all important factors, making it hard to get this right. If successful however, it is one of the most effective formats. 

7. Video testimonial

A less edited version of the previous, this is a single take “rant” given by a creator. 

Difficult to ask of a customer, illegal to fake with a creator. Good luck! 

Takeaway: Producing ad creative ad scale is hard. Make your life easier by using known frameworks and structures that help organize your efforts. Need more help? Pull inspiration from other brand’s efforts.

BONUS - Organic Content

Alex says you’ll find more inspiration for ads in organic content with high view counts. 

Stay tapped into content related to your product. Posts with high view counts will no doubt hit on ideas that are relevant to your audience. If you’re lucky, there might even be great video hooks for you to steal use.

Takeaway: If you’re overwhelmed by the infinite possibilities in creative direction, maybe start with covering the basics shared before the formats.

Organic content will also help narrow down what’s top of mind for your audience. Then, use the formats which are most readily accessible to you. If you’re a regular reader, you’ll remember our latest issue’s take: format matters less than the message. 

Quick hits

• The DTC Consumer Index increased this week, despite a predicted drop.

• Drew Fallon breaks down in detail why Allbirds has struggled since its flashy IPO. 

• Walmart is adding pop-up e-commerce distribution for the holidays.

• Global DTC enablement platform Swap recently raised $9 million in series A funding.