Surprise! Your Google Ads might be showing up on X

In this edition of the DTC Creator newsletter, we uncover the hidden risks of your Google Ads appearing on X, reveal how back-to-school shopping is shaking up brand loyalty, and explore why one CMO decided to ditch Google’s AI tools for a more human touch.

^{Before we head into the edition, here’s a note from our partner…}

Generative AI for personalization in retail

What are the key use cases for retailers and brands?

Personalization is a priority in retail, and generative AI (genAI) is making it easier than ever to give customers individualized experiences. As they plan their personalization strategies, retailers need to understand the potential use cases of genAI technology. Dig deeper.

Surprise! Your Google Ads might be showing up on X

Advertisers are finding out the hard way that their ads are showing up on X (formerly Twitter), thanks to a partnership between Google and the platform. Since Elon Musk took over X, many brands have avoided advertising there due to the platform's unpredictable changes and controversial content. But some companies, like Old World Pizza Truck and Mercury Jets, were shocked to discover their ads appearing on X without their knowledge.

• Unintentional placement: Google’s ad tools can place ads on X’s main feed unless advertisers opt out. These ads look different and lack typical engagement buttons, catching businesses off guard.

• Brand safety concerns: Ad spending on X has plummeted 73% since Musk’s acquisition, with many advertisers wary of the platform’s reputation and content. Some brands fear being associated with Musk’s personal brand and the platform's controversial image.

• Out-of-place ads: Even those who use Google ads for other platforms are finding their ads "a little out of place" on X, raising concerns about brand alignment.

For advertisers, it's a wake-up call: double-check where your ads are ending up. You might find them on X, and that could be an unpleasant surprise!

Deloitte survey: parents choose price over brand loyalty this back-to-school season

As the back-to-school season kicks off, parents are focusing more on affordability than sticking with their favorite brands. Deloitte’s latest survey of around 1,200 parents, conducted from May 22 to May 30, shows that budget-friendly options are the top priority.

The bargain hunt is on…

Parents are starting their shopping earlier and stretching their dollars further:

• Early birds: 66% of back-to-school budgets were expected to be spent in July, up from 59% last year.

• Private labels rising: Half of the parents plan to buy private labels instead of name brands, compared to 36% in 2023.

• More retail formats: Parents are shopping at an average of 4.7 different formats, up from 3.9 last year, with online retailers and department stores leading the way.

Brand loyalty under fire…

With 62% of parents sticking to strict budgets, brand loyalty is taking a hit:

• Switching brands: 67% of parents would switch brands if their preferred one was too pricey.

• Shopping elsewhere: 62% would choose a more affordable retailer over their favorite one.

How brands can stay relevant…

All is not lost for brands. Here’s how they can maintain loyalty:

• Loyalty programs: Offering rewards and incentives can keep parents coming back.

• Kid influence: 85% of parents admit their kids can sway their buying decisions, especially for “must-have” items.

• Fun shopping experience: Creating an engaging and memorable shopping experience—both in-store and online—can win over both parents and kids.

Splurge-worthy items…

Despite the focus on bargains, parents are still willing to splurge on items that make the back-to-school transition exciting for their kids:

• Social media influence: 95% of social media shoppers are open to splurging, compared to 81% of others.

• Private labels preferred: These shoppers are also more likely to buy private labels (59%) over name brands (46%).

While price is the main driver this season, brands can still build trust and loyalty by offering value, incentives, and a shopping experience that resonates with both parents and kids.

Why this CMO ditched Google’s AI tools

A CMO recently tried Google’s AI-powered tools—Performance Max, Smart Bidding, and Gemini—and quickly pulled the plug. Here’s why:

• Performance Max: Instead of enhancing their strategy, it disrupted it. The lack of control and messy ad placements made it a no-go.

• Smart bidding: Promised smarter bidding but delivered nothing better than the human team’s efforts. The verdict? Humans still win.

• Gemini: Automated emails that were 60% great and 40% disastrous. The manual clean-up needed wiped out any time savings.

Despite Google's optimism about AI, this CMO found the tools more trouble than they were worth, proving that sometimes, human intuition still outperforms AI.