Digital Age: The Evolution of Advertising and PR

Shift from Traditional to Digital Media

Budgets are shifting from linear television to digital platforms, with companies like Google and Disney managing both traditional and digital media. AT&T supports regulatory measures to transition to IP-based networks, while Netflix focuses on monetizing digital inventory.

"from an ongoing shift in budgets from linear television to digital. As we look forward to the third quarter, we will be lapping the increasing strength in advertising revenues in the second half of 2023, in part from APAC based retailers.Turning to subscriptions, platforms and devices." --- (GOOG, earning call, 2024/Q2)

"Invest in some, but then manage the traditional platforms networks and the streaming platforms seamlessly." --- (DIS, conference, 2024/05/15)

"We continue to support regulatory and legislative measures and efforts, at both the state and federal levels, to reduce inappropriate regulatory burdens that inhibit our ability to compete effectively and offer needed services to our customers, including initiatives to transition services from traditional networks to all IP-based networks." --- (T, sec filing, 2024/Q2)

"Clearly, we expect further growth beyond that, but that represents a great threshold to get to and then to build more scale and more attractiveness from there.So that allows us to shift more of our energy now on more effectively monetizing that rapidly-growing inventory." --- (NFLX, earning call, 2024/Q2)

"We rely on targeting and measurement tools that incorporate data signals from user activity on websites and services that we do not control, as well as signals generated within our products, in order to deliver relevant and effective ads to our users." --- (META, sec filing, 2024/Q1)

Role of Social Media in Modern Advertising

Social media's role in modern advertising is multifaceted, involving ethical concerns, regulatory changes, and innovative strategies. Google and Meta highlight the effectiveness of targeted advertising and the need for transparency and user consent. Campaigns on platforms like YouTube and Instagram demonstrate significant engagement and cost efficiency, underscoring social media's pivotal role in contemporary advertising.

"Although, target advertising plays a significant role in Google's business model, research has shown that such technologies can negatively impact human rights, including violating privacy and freedom of expression and perpetuating systemic discrimination and inequality. In our view, Alphabet has not demonstrated a robust and transparent due diligence system to identify, address and prevent the adverse human rights impacts stemming from its AI driven target advertising technology." --- (GOOG, event transcript, 2024/06/07)

"For example, in response to regulatory developments in Europe, we announced our plans to change the legal basis for behavioral advertising on Facebook and Instagram in the EU, European Economic Area, and Switzerland from "legitimate interests" to "consent," and began offering users in the region a "subscription for no ads" alternative." --- (META, sec filing, 2024/Q1)

"Let me briefly share two examples with you. Luxury jewelry retailer Tiffany leveraged DemandGen during the holiday season and saw 2.5% brand lift in consideration and actions, such as adding items to cards and booking appointments. The campaign drove a 5.6 times more efficient cost per click compared to social media benchmarks." --- (GOOG, earning call, 2024/Q2)

"In addition to that, there are just a lot of opportunities to improve, make our existing products more interesting, which will lead to people using them more and increase our revenue and business there and opportunities to improve the way that advertising works." --- (META, event transcript, 2024/05/29)

"And then there's Demand Gen. Advertisers are loving its ability to engage new and existing customers and drive purchase consideration across our most immersive and visual touch points like YouTube, Shorts, Gmail, and Discover." --- (GOOG, earning call, 2024/Q1)

Impact of Data Analytics on Strategies

Data analytics is central to modern advertising and PR strategies, enabling companies like Salesforce, Microsoft, and Amazon to leverage real-time and historical data for targeted marketing, risk assessment, and enhanced customer engagement. These capabilities ensure more effective and reliable communication efforts, driving business success.

"I'll start with MuleSoft if I can. Obviously, a big part of our strategy data is at our core right now and we think about how do we bring data from every source around a business that can help influence the success of either the selling efforts that you're in or the supporting efforts that you're in or the marketing efforts that you're in." --- (CRM, conference, 2024/06/06)

"Now, on to data and analytics. Our Microsoft Intelligent Data Platform provides customers with the broadest capabilities spanning databases, analytics, business intelligence, governance, and AI." --- (MSFT, earning call, 2024/Q3)

"The platform will use Amazon Bedrock, our fully managed AI service, to provide customers real-time data & analytics and historical data to identify and assess risks that could impact a company’s operations, security, or reputation." --- (AMZN, twitter, 2024/04/10)

"Now they look at us as the fundamental framework for their future. And as they want to deploy agents or as they want to deploy new user interfaces or achieve more productivity, the data that they have in Salesforce and the ability to manage and share, keep that data reliable, available and scalable, the way that we do updates that we don't bring down our system, do an upgrade and an update like a lot of vendors still do, those kind of capabilities, that will be more important than ever." --- (CRM, earning call, 2025/Q1)

"That's so meaningful because more valuable data in our profiles, more people engage with their profile helps our business, but also help these people feel more comfortable at their ability to show up the right way in the workplace." --- (MSFT, conference, 2024/06/06)

Influencer Marketing: Rise and Impact

Google's Rising Influencer with Disabilities program and Amazon Inspire's integration of influencer content highlight the significant rise and impact of influencer marketing, showcasing how major platforms are leveraging influencers to enhance user engagement and product discovery.

"Today, we’re launching the Google Rising Influencer with Disabilities program, a fellowship that provides creators with key skills, connection with industry leaders and more ↓ https://t.co/d9kij7iKIB" --- (GOOG, Twitter post, 2024/05/16)

"Plus, millions of customers visited Amazon Inspire during Prime Day. Amazon Inspire is an in-Amazon app shopping experience that gives customers a way to discover products and seamlessly shop by exploring videos and images from other customers, influencers, and brands they love." --- (AMZN, press release, 2024/07/18)

Changes in Consumer Behavior

Consumers now expect more from digital experiences, driven by internet and app-based interactions. Companies like Disney and Netflix adapt by offering variety, quality, and value, using customer signals to refine pricing and services, especially during peak seasons like holidays.

"Consumer products revenue fluctuates with consumer purchasing behavior, which generally results in higher revenues during the Company’s first fiscal quarter due to the winter holiday season." --- (DIS, sec filing, 2024/Q2)

"And much like we've done with price changes in general, we really use signals from our customers, things like plan take rate, conversion rates churn to guide us along an iterative path to get to that right pricing." --- (NFLX, earning call, 2024/Q1)

"part, a good consumer proposition economically. But in today's consumer, used to both basically the Internet and app based experiences and ultimately AI driven experiences, wants much more than that." --- (DIS, conference, 2024/05/15)

"And in general, we want to price a little bit behind that value so that consumers continue to think of us as a good value for them." --- (NFLX, conference, 2024/05/15)

"That was inevitable. The reason it was inevitable because it serves the consumer really well to a point, which is variety, tons, and volume, meaning, and quality too, and for the most part, a good consumer proposition economically." --- (DIS, conference, 2024/05/15)

Integration of AI and Automation

AI and automation are being integrated across various platforms, enhancing capabilities in ways previously unforeseen. Companies like Salesforce, Microsoft, Google, Amazon, and IBM are embedding AI into their services, driving efficiency, innovation, and digital transformation in advertising and PR.

"AI, when we look at these companies and the stories that we told on the call, whether it's FedEx or Air India, or CrowdStrike, or Paychex, or any of the huge deals that we did in the quarter, what we're seeing is not only the installation and integration and implementation, of the platforms that we've sold in the last four years, but the layering in of this new capability, which is delivering for these companies a kind of a capability that we weren't able to forecast four years ago." --- (CRM, earning call, 2025/Q1)

"So definitely on the integrated AI platform side. And I think you'll see we are building in across all of our services, the different AI components." --- (MSFT, conference, 2024/05/21)

"Our differentiation in Cloud begins with our AI Hypercomputer, which provides efficient and cost-effective infrastructure to train and serve models." --- (GOOG, earning call, 2024/Q1)

"Amazon Q is the most capable generative AI-powered assistant for accelerating software development and leveraging companies’ internal data." --- (AMZN, Twitter, 2024/04/30)

"are driving the operational efficiencies of productivity so we could create the investment flexibility in driving innovation in core areas of growth that we still see very strong, hybrid cloud, Gen AI, digital transformation, automation, application modernization and that's where our focus area is." --- (IBM, conference, 2024/05/20)

Regulatory Changes and Ethical Considerations

Companies like Meta and Amazon are navigating a complex regulatory landscape, emphasizing compliance and ethical practices to mitigate legal, regulatory, and reputational risks. Meta's focus on responsible AI and transparency, alongside Amazon's regulatory compliance efforts, highlights the industry's commitment to ethical advertising and public relations.

"In addition, we continue to monitor an active regulatory landscape, including the increasing legal and regulatory headwinds in the EU and the US that could significantly impact our business and our financial results." --- (META, earning call, 2024/Q1)

"Supporting proposal 17 will protect our workforce, ensure regulatory compliance and enhance our reputation." --- (AMZN, event transcript, 2024/05/22)

"In a statement, Meta said its commitment to responsible AI principles, board oversight, efforts to tackle misinformation and disinformation, and the creation of watermarking tools enhance transparency regarding the impact of its products." --- (GOOG, press release, 2024/05/30)

"Regulatory risk, legal risk, reputational risks are only a few. And while Medit touts its current reporting, we've only seen principles and platitudes." --- (META, event transcript, 2024/05/29)