How the Ukraine Invasion May Affect E-Commerce

Today In Digital Marketing is a daily podcast showcasing the latest in marketing trends and updates. This week, Tod touches on:

• MEDIA BUYING: Marketers Are Shifting Budgets From iOS to Android 

• SUPPLY CHAIN: Suppliers Are at Risk as Carriers Are Halting Operation

• TIKTOK: Trends Your Brand Needs to Watch Out For in 2022

• AGENCIES: Why Did Employees Keep Working Without Pay for 6 Months?

Below is the transcription from this weeks topics

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MEDIA BUYING: Marketers Are Shifting Budgets From iOS to Android 

Up until now, Apple's App Tracking Transparency (ATT) has mostly been thought of as a “reporting” issue — that the purchases ARE happening, but we just can’t see them. 

A new report indicates that ATT actually affects sales as in-app purchase revenue for mobile games dropped 35% globally after Apple's changes. 

In the wake of the iOS 14.5 update, marketers appear to be shifting focus to Android:

• The number of gaming apps installed on iOS fell by 6%.

• While Android saw a 22% increase.

Globally, gaming apps spent $14.5 billion on user acquisition last year, with half of those budgets coming from the U.S., according to the report: 

• iOS sales dropped by 13% year over year due to Apple's privacy changes.

• As opposed to Android's 35% surge, which put overall spending on user acquisition at an 18% increase from 2020.

As for in-app advertising revenue, the report found that:

• Ad revenue increased by 55% on U.S. Android devices.

• In-app purchase revenue on Android remained relatively constant in 2021 but increased by 10% towards the end of the year.

Suggesting that marketers are shifting their budgets away from iOS apps as they adjust to the ATT changes.

Data has been provided by AppsFlyer's report titled "State of Gaming App Marketing for 2022".

Images: AppsFlyer

SUPPLY CHAIN: Suppliers Are at Risk as Carriers Are Halting Operation

The storm is not over yet for e-commerce merchants... Experts say that Russia's invasion of Ukraine this week threatens to further disrupt the already strained supply chain.

In response to the escalating conflict, a growing list of companies have halted operations in the region, and FedEx and UPS have suspended service into and out of the country.

According to a Gartner analysis, Russian sanctions and the Ukrainian attack could also result in:

• Key material shortages

• Material cost increases

• Production capacity impacts

• Demand volatility

• Logistics route and capacity constraints

• As well as cybersecurity breaches

Additionally, critical logistics routes such as the Black Sea, rail and road networks will suffer delays and disruptions. 

Analysts suggest that affected brands prepare risk response plans for fragile supply chains, and diversify sources and logistics routes where possible.

TIKTOK: Trends Your Brand Needs to Watch Out For in 2022

TikTok has released its second "What's Next" report, which focuses on key user trends and shifts that are currently driving the platform's culture. 

The platform also provided some audience insights for 2022 — it bears reiterating that this was a report paid for by TikTok, so, obviously, it's going to report on the positive synergies. That said, they found:

• 3 out of 4 users feel a closer connection to brands they interact with on the platform. 

• Almost 80% agree that the best brands work together with their customers.

• And they say TikTok inspired about 70% of users to shop even when they weren't planning to.

The guide focuses on five key trends:

Self-care champions

• Beauty and personal care are "winning" topics on the app.

• Hashtags you should be using if your brand falls into this category:

  • #transformation 

  • #selfcare

  • #oddlysatisfying

Financial services

• The platform has inspired Gen Zs to be financially informed and empowered. 

• Popular hashtags include:

  • #finance 

  • #crypto

  • #passiveincome

Gaming culture

• TikTok communities are shaping gaming culture by creating new content that incorporates gaming setups, cosplay designs, and gaming IRL.

• Hashtags your brand should be using include:

  • #animation

  • #weeb

  • #streamer

Food and beverage brands are growing on the platform. 

And finally, news and entertainment companies have found a large following.

The report also includes case studies for each trend, as well as brand notes, including information on what types of posts and ad campaigns perform well with users. 

AGENCIES: Why Did Employees Keep Working Without Pay for 6 Months?

You've heard of the Tinder Swindler? Well, if reports are to be believed, there's now an Agency Swindler.

Ali Ayad is said to be behind the fake agency Madbird, which allegedly conned more than 50 people from around the world into working for six months on a commission-only basis, promising an almost $50,000 salary if deals were closed.

The BBC reports that Ayad claimed to be a “visionary creative director” who had worked with big brands like Nike, but the broadcaster says it was all an act, and the employees of Madbird were never paid.

How is he alleged to have done it?

• First, people were desperate for work during a pandemic.

• Employees were working remotely so they never questioned the lack of a real office.

The rise of digital platforms has escalated scams. The allegations say it was easy for him to create catfish identities, fake LinkedIn profiles, and even Zoom meetings with images of people that weren’t really there. 

When the BBC approached him on the street, he said he was just "trying to do something good."

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Credit to Tod Maffin and the Today In Digital Marketing podcast, Produced by engageQ.com