August Industry Chatter: Amazon's Social Expansion, X Files Suit, and Google's Day in Court
Marketing never stops moving. Wpromote's monthly Marketing Industry Chatter newsletter will keep you up-to-date on the biggest headlines, updates, and trends in the wide world of marketing and media—with the expert insights you need to take action.
As we creep toward September, you may feel a brief gust of brisk fall breezes in the air. That's all the more reason to look back at some of the hottest marketing news you might've missed while you were out there making the most of the final month of summer.
From the groundbreaking Google antitrust decision to Amazon's new partnerships with TikTok and Pinterest, here's the breakdown of the most important industry updates from August
The DOJ is considering breaking up Google after antitrust case loss
What you need to know: In a landmark antitrust decision, a judge has ruled that Google unlawfully maintained a monopoly in search and text advertising, particularly through deals that made Google the default search engine on Android and Apple devices.
We’re still waiting to see what remedies the court chooses, which could include new rules requiring Google to change practices or share data–or even a breakup of the company. Antitrust breakups have been rare in the US, and it’s hard to make them stick (Microsoft successfully appealed a breakup in the 2000s, for one recentish example) so this outcome is far from certain.
If the court decides to go that far, it’s hard to say where and how Google would split, since it’s still largely a one-product company dependent on search advertising and offshoots like YouTube aren’t very relevant to this particular case.
What you need to do: It’s too soon to know exactly how this case will impact Google or how that outcome will affect the media landscape at large. But when it comes to search, consumer behavior is already shifting. Brands should already be diversifying search strategies to take advantage of users looking for information on social media and online marketplaces. Those platforms are even more important now that Google’s future is uncertain. But remember: the search giant isn’t going anywhere for the time being, so don’t assume you need to pull back on your Google advertising any time soon if it's driving incremental growt.
Find out more:
Amazon amps up on social with new TikTok & Pinterest partnerships
What you need to know: Amazon recently struck new deals with Pinterest and TikTok to allow users to make purchases on Amazon directly through the apps; the ecommerce giant previously made similar deals with Facebook, Instagram, and Snapchat in 2023.
Pinterest and TikTok users who link their Amazon accounts will now be able to view product details, Prime eligibility, delivery estimates, real-time pricing, and more on the platform and make purchases without leaving the app.
Amazon is looking to take advantage of the increasing popularity of social commerce, reducing friction in the purchasing process and enabling impulse buying in response to viral or inspirational content.
While user response to shoppable features like TikTok Shop has been mixed, the social-to-Amazon purchase pipeline is strong and an Amazon link has been a wishlist item for brands and users for quite some time.
What you need to do: A streamlined purchase process directly connecting social channels with Amazon is exciting for platforms like TikTok where products often go viral and are fueled by creator and influencer campaigns. Although direct integration isn’t openly available to all advertisers yet, brands who sell on Amazon should be experimenting with social ads and stay on top of changing consumer behaviors on the growing marketplace.
Find out more:
X sues advertisers, claiming collusion to boycott the platform
What you need to know: X, formerly Twitter, filed a lawsuit against the World Federation of Advertisers (WFA), Unilever, Mars, CVS Health, and Danish renewable energy company Orsted for what CEO Linda Yaccarino claims is a “systematic illegal boycott against X.”
The lawsuit claims that major advertising coalition Global Alliance for Responsible Media (GARM)—a WFA initiative of the WFA that set content standards on social media for members like Disney and Walmart–worked with brands like CVS to withhold billions in advertising revenue after Musk bought the platform in 2022.
WFA recently shut down GARM in response to the suit, which is a major blow to brand safety controls for advertisers. The lawsuit is not related to the 2023 advertiser boycott in response to Elon Musk seeming to endorse a far-right conspiracy theory and a Media Matters for America report that found ads serving on pro-Nazi content.
What you need to do: We’ll be waiting a long time for the outcome of this lawsuit, and it’s worth noting that suits alleging unlawful boycotts face a high legal bar. Even if the case succeeds, X cannot force advertisers to spend on their platform. There’s no need to change your spending today, but you should be keeping an eye on developments in the ad space that could impact your brand, especially as brand safety standards change.
Find out more:
Influencers look to modify contracts to address AI usage
What you need to know: Influencers are taking a closer look at brand contracts to protect their intellectual property rights, names, and likenesses in the AI era. Many brands are now contracting for creator content supported at some level by generative AI, while trends like virtual influencers are once again in the spotlight as marketers look for new ways to grab consumer attention.
In the past, brands often retained long-term or permanent usage rights to an influencer’s work, but that standard has changed as creators have gotten savvier about contracts; AI clauses will expand those protections. Some creators are wary of their likenesses being used in AI content, but others are more willing to explore options like licensing for AI usage.
SAG-AFTRA recently made a deal with the online digital voice licensing platform Narrativ that allows performers can choose their rates and which brands to work with in exchange for advertisers replicating their voices with AI.
What you need to do: If your brand is working with influencers, AI usage will likely come up more often in current and future contract negotiations. If you haven’t already, start the conversation to figure out where your team stands on AI-generated content and what rights you’d like to secure with your influencer partners so you’re ready for any questions creators might have around AI.
Find out more:
President Biden's new conference kicks off dialogue with digital creators
What you need to know: The White House’s Office of Digital Strategy hosted its inaugural Creator Economy Conference this month, bringing together 100 digital content creators and industry experts, including lawyers, representatives, executives, founders, community builders, and union leaders, to discuss pressing issues like AI, privacy, and fair pay with President Biden and top officials.
The conference highlighted the rapid growth of the creator economy, projected to reach $480 billion by 2027, and unique challenges for creators like regulations, data privacy concerns, and how social media affects mental health.
The event underscored the need for more nuanced regulations to address the evolving landscape of digital content creation and its relationship with tech platforms and addressed ongoing controversies, including the potential ban on TikTok due to data privacy concerns.
What you need to do: The Creator Economy Conference marks a significant step in recognizing and addressing the unique challenges of the rapidly expanding digital content sector. As the industry continues to grow, this dialogue with government officials could lead to more informed and effective regulations. Make sure you keep up with potential changes shaping the future of influencer marketing.
Find out more:
August Featured Content
The Google Antitrust Ruling: What’s Next for Search?
The first in a spate of major antitrust cases against big tech in the modern era did not turn out the way Google hoped, and we're still waiting to hear what the judge decides is the right course of action. Wpromote's Head of SEO Serena Peterson and VP of Earned & Owned Media Rachel Bucey Klein break down the implications of the ruling and what it means for the future of search.
As we wait to find out more about the remedy, the rollercoaster isn't over: stay tuned to see what comes next in the newly empowered FTC's upcoming cases against Meta, Amazon, and Google (yes, a separate case).