Galaksion blog News digest 18.05.2020
Mon May 18,2020
News digest 18.05.2020

Another Monday is here and so is another news digest from Galaksion! Let’s have a look at what happened during the week of May 11 to 17.

Google Chrome has started blocking “heavy” ads in test mode
“Heavy” banners are those with size more than 4 MB and that use more than 50% of system resources for more than 30 seconds. After banner blocking, users will see an “Ad deleted” sign.
Google says that such ads can “can drain battery life, strain already overloaded networks and cost more money”.
Now only 0.3% of ads exceed these limits, however they use 27% of traffic and 28% of total CPU.
The company will test the function for several months to allow advertisers modify their ads to reflect these limits. Google plans to deploy the feature to all users by the end of August 2020.

Analyzing the results of Google's May update
According to SEMrush Sensor, in early May there was a high volatility in the Google sites ranking.
For comparison, the update of January 2020 led only to an average volatility of 8 points, and on May 6, almost every category had peaks from 9 to 9.4.
According to Google, the entire deployment period takes one or two weeks until all changes take effect.
As usual, Google has not provided detailed information about what has changed in the search algorithm, which industries or topics are the focus of the update. It also remains unclear whether there is a link between the coronavirus pandemic and changing search results.
Many users on the forum are already outraged by such changes in the midst of the pandemic. Supporting online business in self-isolation has become similar to resuscitation of a patient in critical condition.
In less than a week updates have led to a global decrease in traffic and online sales in areas such as: healthcare, technology, finance, dating.

Facebook allowed advertisers to keep track of what videos their ads were placed in
Facebook has added new tools for advertisers to help them better control their ads. In particular, we are talking about the in-stream format - advertising inside videos.
White lists of publishers for the Audience Network will allow brands to determine which third-party apps can display their ads.
The social network will also allow to opt out of testing in-stream advertising in live broadcasts. Previously, this tool was only available during campaign creation, and now it is available in an advertising tool.
In January 2020, the non-profit organization Avaaz reported that YouTube, without the knowledge of major advertisers, placed ads in "unwanted" videos - in particular, in misinforming videos about global warming.

Adobe: e-commerce market in USA grew by 49% in April
In the new Adobe report data for April was compared with data for the period in early March - before the introduction of quarantine measures.
The leading e-commerce market growth driver in the reporting period was the "Food" category. This category has increased by 110%. Electronics sales grew 58% and book sales doubled.
Clothing prices have fallen by 12%, which is the biggest monthly drop in the last 5 years. The average figure for this category in April was -2.9%. As for demand in this category, in April sales of pajamas rose (+143%) and fell - in office clothes such as trousers and jackets (by 13% and 33% respectively).
At the same time analysts from Adobe note that the mass transition to online trading can lead to higher prices for goods in online stores. If earlier the goods were cheaper on the Internet, now this trend seems to be coming to an end. And the COVID-19 epidemic was the catalyst for this process.
Adobe's report is based on an analysis of more than 1 trillion online transactions of 100 million SKUs. To collect this data, the company works with 80 of the 100 top 100 online retailers in the U.S.

Mobile video advertising keeps the attention better than the desktop
According to the first results of Attention Economy Russia, about a third of users on mobile devices and about a quarter of users on the desktop watch the videos with full attention.
The in-stream format (advertising that is placed inside the video content) boasts a higher level of full attention, but not its stability. As early as after watching two commercials the share of full attention decreases.
A similar situation happens with videos inside text content (in-content). On the contrary, video ads in the social network news feed (in-feed) is able to keep the full attention of the audience even when watching five ads.
Meanwhile, the highest rate of memorability of advertising (ad recall) is recorded in infeed clips viewed with full attention. Another conclusion from the tests is that ignoring ads (skipping or scrolling) works better for memorability than active blocking (when the user has closed or hidden ads).

Alibaba launches Luxury Soho platform for luxury brands
Alibaba has launched a new platform Luxury Soho, targeting value-conscious aspirational shoppers, and helping high-end brands quit surplus inventory.
Accessible via Mobile Taobao and the online flagship stores of partner brands, Luxury Soho is positioned as an online gathering place for young consumers - as well as those new to luxury purchasing - to discover designer brands and potentially make their first luxury purchase.
The new service is also a response to the need in the fashion industry for brands to be able to efficiently manage their inventory and stock – an issue that’s been compounded by the Covid-19 outbreak.
With Luxury Soho, brands can now move select products and collections onto an online outlet store and bring them in front of a specific audience that is waiting to discover new products and brands.
Alibaba’s Tmall Luxury Pavilion was designed to serve as a second website for brands in China, focused on branding and aimed at a more affluent class of consumers. By contrast, Luxury Soho targets younger, newer luxury consumers – such as those from China’s lower-tier cities or Gen Z shoppers who are just entering the world of luxury.