From TikTok and Meta to Pinterest and LinkedIn, there is no shortage of platform experimentation and innovation going into Q1 2024. Two key themes are set to dominate the landscape: the shift towards paid subscriptions and the undeniable importance of AI.
Brands must take a proactive approach and harness the power of these changes. It’s no secret that new formats and solutions are often prioritised by algorithms and lead to improved performance, so we’re here to guide you through the latest updates. Join us as we delve into these developments and reflect on their wider implications.
TIKTOK: THINKING SMART, NOT HARD
TikTok has agreed to a promising partnership with Google, aiming to boost search traffic. This is a smart move from Google, given that last year, it was found that 40% of young people preferred to search for restaurants on TikTok over Google.
FOLLOWING ITS ELDERS?
In a similar vein to X and Meta, TikTok is also testing an ad-free option for users at $4.99 per month, providing a premium experience for those looking to enjoy scrolling without interruptions. Now, ads tend to show up differently on TikTok. They entertain, rather than disrupt. The best ones don’t feel like ads at all. Instead, they creatively disguise themselves using native tricks straight out of the codebook. So, will Gen Z view ads as enough of a nuisance to add an extra fiver to their monthly subscriptions? The jury’s out.
META: AI-POWERED INNOVATION
Meta continues to stay at the forefront of innovation. They’re introducing more generative AI features for advertisers, enabling them to effortlessly create backgrounds, enhance creative, and generate ad text variations.
This move comes off the back of a tech company’s recent Meta Connect event, where they unveiled a slew of AI products – one of which was Meta AI, an advanced conversational assistant. Meta AI will provide real-time information and generate photorealistic images, with 28 more AIs in beta, including celebrities such as Snoop Dogg.
ADVANTAGE+ SOLUTIONS
Alongside their ever-growing catalogue of Advantage+ solutions, Meta’s strategy to utilise AI and automationto maximise results is proving successful. We’ve been testing these solutions internally, from dynamic catalogues to Advantage+ audiences. While some drive success, for example, Advantage+ audiences have on average been driving a CTR that’s double of a standard audience (4% compared to 2%), it’s important to understand that these solutions require a test and learn approach.
Advertisers shouldn’t feel obliged to let Meta add music to their ads, just because their results are going to improve.
WHAT ABOUT THREADS?
In addition to this it was announced that, Instagram’s latest venture, Threads, has fallen from a peak of 21 minutes of usage per day to just 6 minutes per user, causing growing concerns from senior management. They’re now investigating new ways to recapture its early buzz and excitement through focus groups with creators. This will help Meta learn how they can make the platform more appealing. While we champion social innovation at eight&four, we’re hesitant about the success of Threads, especially when its competitors are in a much stronger position.
X: THE SUBSCRIPTION ERA
Alongside a brand-new name, X is poised for some transformative changes in 2024.There’s more talk of the platform exploring a three-tiered monthly subscription model, placing its content behind a paywall for users.
This significant change could herald a new era of premium services within the world of social but it’s unclear what other perks may be included.
CREATOR MONETISATION: IS IT TOO LATE?
Back in August, Elon Musk announced that creators on X would be eligible to earn a portion of ad revenue, driven by tweet replies. With pay-out amounts varying from $200 to nearly $40,000, this was a smart move to make sure creators stayed on the platform – in a time when X’s dominance as a microblogging platform is being threatened by competitors like Threads.
But it’s likely that this change has come a little too late. Prolific social players like Matt Navarra are publicly voicing their exit from X, in favour of other platforms. Navarra states “[he] can’t be part of what Elon is creating. [Musk] has put X on a trajectory which I cannot support or endorse. The benefits vs. risk scales have tipped too far in the wrong direction and things are getting worse, not better.”
Is this the start of a mass exodus on X? The answer relies both on the response of Musk and what he chooses to do with the platform, and whether or not competitors can create a compelling reason for users to make the switch over.
PINTEREST: STICKING TO ITS CREATIVE ROOTS
Moving onto a more wholesome platform, Pinterest is sticking to its guns and continuing to pump out new creative solutions. Following the annual showcase Pinterest Presents, we’ve been blessed with a number of new ad tools and format options. There are Quiz and Showcase ads, both designed to move users down the funnel, from discovery to decision. These formats are dynamic and interactive, giving advertisers the chance to engage their audiences.
LinkedIn is putting huge focus on LinkedIn Newsletters – a relatively new format, but one that’s absolutely thriving. There’s been a 41% rise YoY in original content shared on LinkedIn, and the platform boasts over 365M newsletter subscriptions. It feels like a smart move from LinkedIn to invest in this area and highlight the vast potential for reaching your desired audience – especially a B2B one.
AN UPWARDS TRAJECTORY OF GROWTH
It’s no surprise then that Pinterest saw over 2M new users in Q2 of 2023, taking it to over 465M monthly active users – that’s a YoY growth of 8%. With a focus on safety, diversity and greater representation, Pinterest steadily remains a platform for all.
LINKEDIN: READING BETWEEN THE LINES
ON THE SUBJECT OF B2B…
Influencers in the B2B world are increasingly prevalent. In a recent report, Ogilvy found that 75% brands are already using B2B influencer marketing and 93% are planning to increase their current usage. After rolling out its own branded content tags for posts, LinkedIn has added a new search functionality for paid partnerships. Similar to the Meta Ads Library, this will enable users to see all campaigns through keywords and dates. For advertisers wanting to gain an understanding of the landscape, this tool will provide more competitive insight and transparency over paid promotions – it’s a yes from us!
WHAT ABOUT THE REST?
There’s a lot going on in social right now. And while our major players are experimenting with AI and technology, it’s important not to forget about the countless other social platforms.
Snap is making waves with paid subscriptions after it was reported that it now has over 5M paying members. Instagram’s effort to drive user engagement has resulted in the introduction of Broadcast Channels – essentially a way for creators to DM their audience at scale. As for Reddit, the focus here is on making their platform more accessible. Whether it’s screen reader compatibility, simpler search page results or alt text, their mission is to make their app and web pages more engaging, and more accurate.
CONCLUSION
Taking a step back from the specifics, two overarching themes emerge: AI and paid subscriptions. And no doubt these will affect how advertisers and users interact with and experience social. Staying informed and adapting to these trends will be crucial. Our point of view at this stage? Developments in AI are fast unfolding, so it is critical to keep a finger on the pulse and actively experiment with any pre-built solutions as they become available across the social platforms. And for paid subscriptions: as platforms move toward a more blended business model, there is a need to evaluate how much this might impact the nature of paid social advertising as well as what ‘delivering unique value to users’ means in a crowded market.
If you need guidance on staying ahead in the world of social or simply want to understand the value in AI, our specialised teams are here to help. Get in touch – we’d love to hear from you: ines.casas@eightandfour.com