The Friday Five: Google faces regulatory intervention, Meta introduces new AI chatbot, and TikTok sued by 14 U.S. states
Hello and welcome back to The Friday Five.
Every week we break down the most interesting digital marketing stories you need to know about.
Today we look at Google, which is facing a regulatory intervention because of unlawful practices. We also look at Meta's new AI chatbot that can be accessed through sunglasses, TikToks most recent lawsuit, the power of Snapchat influencers and why brands have lost $200 billion in revenue this year.
So much to get through. Let's get started!
1. Google threatened with massive regulatory intervention
A break-up could be on the cards for Google after the tech giant was found to be unlawfully using products like Chrome and Android to funnel users to its search engine and disadvantage competitors.
Google controls about 90% of online searches, meaning they have huge amounts of power in the online search market. The Department of Justice (DOJ) ruled that Google's unlawful practice resulted in the inflation of ad prices and competitors were unable to get a foothold in the search market.
On the 20th of November, the DOJ is expected to propose remedies that will stop Google from using products like Chrome to favour Google search. If carried out, this will be one of the biggest regulatory interventions the world of tech has ever seen.
Google has called the proposal ‘radical’ and stated that separating their products could result in higher costs for users.
Google will push back and submit its solutions by the 20th of December.
The outcome of this case could have major implications for how tech giants, such as Amazon, are regulated in the future.
Read more on BBC News .
2. Meta AI to be seen through new lense thanks to Ray Ban
Meta’s new AI chatbot has made it to the UK on Facebook and Instagram.
Already released in the US, Australia and Brazil, Meta’s new AI chatbot can be accessed through an app but also through special Ray-Ban Meta sunglasses.
The glasses come with a voice assistant feature and are priced at the hefty sum of £299.
The chatbot will respond to voice commands and generate text /images. Although celebrity voices like Dame Judi Dench and John Cena were used on the US version, the UK version does not feature a list of celebrity voices just yet.
The UK release was delayed due to regulatory concerns and remains unavailable in the EU.
Meta isn’t stopping here. Not content with glasses, it has recently introduced Movie Gen, an AI model that creates video and audio clips from user prompts.
Find more on this story by visiting The Guardian .
3. 14 U.S states sue TikTok for 'contributing' to US mental health crisis
A group of 14 U.S. states have filed a lawsuit against TikTok, citing its 'addictive' features which are 'wreaking havoc' on teenagers' mental health.
The lawsuit states that TikTok’s features have contributed to the mental health crisis in young people and harmed users by leading them to anxiety, depression, and dangerous behaviours. Dangerous behaviour such as 'subway surfing' has resulted in injuries and death.
TikTok argues that the lawsuit is ‘inaccurate’ and ‘disappointing’. New York Attorney General Letitia James highlighted the harmful effects on teens, noting TikTok’s failure to address its negative influence despite knowing the risks.
The lawsuit seeks financial penalties and demands TikTok stop these practices. This isn’t the only lawsuit TikTok is facing as the platform is accused of violating child privacy bans which is adding to its legal troubles.
The lawsuit could raise awareness about the dangers of social media but Imran Ahmed, head of the Center for Countering Digital Hate, said stronger laws are needed to force change.
Learn more on BBC News .
4. Snapchat influencers driving huge purchase rates
A recent eMarketer report reveals that Snapchat influencers are more effective at driving purchases than those on other major social platforms.
After seeing a product promoted by an influencer, a massive 85.6% of users made a purchase.
This is a higher purchase rate than found on TikTok, Instagram and YouTube.
The rate is particularly higher for younger audiences with 82% of Gen Z shoppers on Snapchat making a purchase after following influencer content.
Gen X also showed a notable response, with 40.8% of users making purchases due to influencer content, while baby boomers remain the least affected.
Snapchat’s success could be down to the fact that users can easily connect with creators and build more trust with them than on other platforms.
The report concludes that the power of influencer marketing, in boosting sales, should not be overlooked especially among the younger generation.
Discover more on this story at Social Media Today, LLC .
5. Lack of long-term thinking costing brands trillions
A recent report shows that prioritising performance marketing and paying less attention to long-term brand strategies is a huge problem for brands.
Since 2000 $3.5 trillion has been lost because of this, with $200 billion lost in the last year alone.
Although Apple experienced a 3% decline in value, it remains at the top of the rankings. The company has been cautious when introducing AI compared to competitors who have not taken as much time.
This longer-term strategy has built trust and contributed to a 20% increase in stock this year.
The report also notes that the automotive sector has rebounded, with brands like Toyota, Mercedes-Benz, and BMW in the top 10, while Tesla experienced a 9% decline. Luxury brands gained value, up 7% this year, driven by innovative consumer experiences.
The report highlights that many brands have experienced significant losses by sacrificing long-term strategy for short-term gain.
Read more at Marketing Dive .
And there you have it!
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We hope you have a great Friday and an even better weekend. We will be here next week with another jam-packed Friday Five.
See you then!