The Weekly Listen: Does Facebook Actually Have a Young Person Problem, the Interactive Ads of the Future, and More | Sep 13, 2024
Sep 13, 2024
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Evelyn Mitchell-Wolf, an analyst focused on Facebook's appeal to younger users, Max Willens, who examines trends in interactive advertising, and Stephanie Taglianetti, vice president of Briefings, delve into whether Facebook truly faces a 'young person problem.' They also discuss the future of interactive ads, Amazon's innovations in cashierless shopping, and explore shifting American demographics—highlighting where people are moving and the implications of these trends on advertising and technology consumption.
Facebook is facing a challenge in engaging younger users, as the platform's usage among tweens and teens has drastically declined over the past decade.
Interactive ads are becoming more popular, particularly on streaming platforms, enhancing user engagement through features like shoppable marketing and immersive experiences.
Deep dives
Facebook's Challenge with Gen Z Engagement
Facebook is attempting to engage Gen Z users by promoting features that help them navigate adulthood, such as Facebook groups for social connections and Marketplace for shopping. Despite efforts to attract younger audiences, the platform has seen a significant decline in usage among tweens and teenagers, dropping from 71% to just 33% over the past decade. However, data suggests that young adults in their 20s are starting to adopt Facebook more, with forecasts indicating a potential increase in Gen Z users in the coming years. The challenge remains that despite these users joining, their engagement time on the platform is decreasing, with forecasts predicting an average of just nine minutes per day by 2026.
The Rise of Interactive Advertising
Interactive ads are gaining traction, particularly on streaming platforms, where they can enhance brand recall by up to 36%. Disney Plus has pioneered this trend with shoppable marketing formats, including quizzes and QR code-enabled ads that allow viewers to interact with the content. Among the types of interactive ads, 'add to cart' features are expected to thrive as they streamline the shopping experience for consumers who wish to purchase quickly. Additionally, 'choose your own adventure' ads are anticipated to resonate with audiences, enabling a more engaging and entertaining ad experience that aligns with consumer desires.
Amazon's Cashierless Technology Moves to New Venues
Amazon's 'Just Walk Out' technology is being implemented in NFL stadiums and college campuses, aiming to streamline shopping experiences in high-traffic areas. This strategy focuses on locations where quick purchases are prevalent, making it a better fit compared to grocery stores, which faced challenges with high costs and privacy issues. While the potential for success exists in these venues, concerns about surveillance and theft have been raised, particularly in environments where consumer habits change rapidly. Ultimately, the success of this technology will depend on how well it adapits to the specific needs and behaviors of consumers in these new settings.
The Concept of AI News Aggregation
An AI news aggregator named Break the Web is attempting to create a 'Spotify for news,' aiming to provide users with diverse news summaries and perspectives from various sources. This platform utilizes AI to curate and present trending stories by ranking topics in real-time, offering users snippets and links to full articles. While the idea has merit, challenges exist regarding the already saturated news market and the dwindling interest in news consumption among the general public. Despite these obstacles, there is potential for success if the model can attract users who prefer curated, accessible news without the burden of multiple subscriptions.
On today's podcast episode, we discuss whether Facebook actually has a young person problem, what will be the most popular kinds of interactive ads, if Amazon’s ‘Just Walk Out’ cashierless technology has found a new home, can a ‘Spotify for news’ like service work, where Americans are moving too in the country, and more. Tune into the discussion with analysts Evelyn Mitchell-Wolf and Max Willens, and vice president of Briefings Stephanie Taglianetti.