Foursquare Acquires Placed | Google Chrome Updates
The following is a transcription of the Tailwind Flash Briefing published June 3, 2019. To listen activate through the Amazon Alexa Skill store.
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Tailwind Digital Minute Flash Briefing for June 3, 2019
From the Tailwind office in Tempe, Arizona, today is June 3rd and this is your weekly Digital Minute. I’m David Ericson and these are some big stories from last week.
Google to Let Enterprise Users Escape Ad-Blocking Restrictions
Earlier this year, Google announced their intent to implement a new set of changes to Google Chrome which they have dubbed, Manifest V3. Essentially, this set of changes would change the API that most ad blockers currently use to block HTTP requests from being made and, as a result, would stop most top ad blockers from working as they currently are able to. To provide a little more insight on this, I sat down to collect the thoughts of Tailwind’s very own Andrew Karlovsky. Here’s what he had to say about how this will change things.
"If you remember 10 years ago we had Internet Explorer. It was the KING of the web browser - everybody used it. And one of the patterns that emerged from there, was Internet Explorer, because it was so big, defined what the standard was. We’re getting to the point where Google now has that type of power. And this is Google starting to flex its muscle and say “Hey, this browser, and these capabilities we gave you before in extensions, they go against our primary business, which is ads, and we believe that tracking should be a default option with the ability to opt out within our platforms."
So what this ultimately does is leaves us in this spot where as advertisers, we will start getting, and keep getting more and more information from these various platforms as ad blockers stop working the way they traditionally have. However this could provide some incentive for users to shift over to other browsers like Firefox. However, many of the alternative browsers are also built on Chromium, the underlying browser framework maintained by Google. So, with that, Edge and Opera which make up another 10% of the desktop market now also fall into this category of potentially open to changes by Google."
And according to Statista, Google now holds 70% of the web browser market for desktops, and 60% for mobile, with Edge, Internet Explorer and Opera effectively making up a significant chunk of that remaining percent while using Google Chromium for their browsers. From a marketing perspective, this really does put us in a unique opportunity to collect advertising data on a level we haven’t ever really been able to and in a major chunk of the online retail market.
Foursquare Buys Placed from Snap
Last week, it was announced that Foursquare has officially acquired Placed from Snapchat in a similar effort to utilize the location services to accelerate product development initiatives and expand their mission to “build the world’s most trusted, independent location technology platform.
For context, Snapchat originally acquired Placed two years ago in an effort to help their advertisers obtain and track real-world purchases and store visits that took place as a result of in app advertising. Placed and Foursquare were, at one point, essentially competitors in the location attribution market meaning that this acquisition has, for the most part, created a significantly more powerful entity with a much larger consumer base to leverage.
Foursquare themselves have actually leaned into this claim for the throne and provided evidence in the form of revenue figures to justify their acquisition and $150 million investment into development. To summarize some of the bigger details that they offered without going on too long, Foursquare has declared a growth of $100 million in location analytics data revenue over the last 12 months and have reportedly managed over 3 billion dollars in media spend attributable to store visits from billions of impressions.
As for what makes this so important, consumers of offline goods currently spend significantly more each year locally than on e-commerce products - BUT with the advancements in location data and the tracking of online-to-store visit services, like Placed offers, it’s becoming easier for digital media companies to follow where their ads are going and properly attribute revenue to their work. It seems that Foursquare is truly positioning themselves as the go to company for tracking this style of location based advertising and will be a necessary tool for marketing agencies going forward.
Well that about covers it for this week's edition of the Digital Minute. To learn more about some of the topics we've covered today, join us over at FindYourTailwind.com/blog for a full transcription of the Digital Minute as well as links to further resources and information. Until next week, I'm David Ericson.
Be sure to check out last weeks edition of the Digital Minute.
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