The big five – Amazon, Microsoft, Apple, Google and Facebook, especially the last two – can make or break brands. Google and Facebook are the digital showcase of modern marketing and advertisers do their best to make this forced symbiosis stable and wrinkle-free.
Corona is currently prevalent, and advertising gains are also getting a knock on the tech giants, but the numbers remain otherworldly. Google parent company Alphabet grew annual revenues by 13 percent to $ 41.2 billion. Google’s search engine and the advertising revenues associated with it account for 24.5 billion. The corona crisis is also lucrative for Microsoft: in the past quarter, the company made a profit of nearly $ 11 billion. And Facebook also seems to take advantage of the fact that many people are at home. The number of active users of the social network has risen to 2.6 billion.
It will not surprise anyone that our reports have produced little fireworks. Advertisers / brands are extremely cautious and reserved. And that is significant. A critical note about the platforms is actually not done. Because before you know it, you are on the punishment bench as a brand, with all its consequences for your reach. And that while there is still a lot to note on the tech giants, because their conditions and requirements for advertisements are sometimes inimitable. Decapitations of terrorist organization Isis were simply seen on Facebook, while an innocent picture of the baby Jesus in the arms of mother Mary is quickly labeled as soft porn and thus removed.
Not to mention the abuse of power by, for example, Google with search data, the price comparison Shopping and the Android operating system, together accounting for about $ 8.5 billion in EU fines. Small beer by the way for the juggernaut who invariably has 103 billion in cash. But the biggest scandal from current affairs is the state aid to another tech giant: Booking.com. Made a lot of money for years, avoided tax and now standing up with father State. Brands will always have a love-hate relationship with the tech giants; a slightly more critical look from both sides wouldn’t hurt.
This is the editorial from MarketingTribune 08, 2020.