Magnet #9

This weeks’ magnet sees in the beginning of the Olympic Games, Tiktok introducing native ads, all in the middle of a glorious heatwave.

Enjoy.

In Digital:TikTok launches native ad format with Spark Ads

On the fast-moving social platform that is TikTok, where the short-form nature of content is a key selling point, the interruptive nature of advertisements can feel like a big obstacle for users. To avoid that, and to capitalise on some of the strengths of the app, TikTok has launched its new global native advertising format-Spark Ads.

The format allows brands to boost the profile of existing organic content, with the aim of converting the app’s users into both co-creators of the ads themselves and ultimately consumers.

TikTok stressed that by bringing in the TikTok community, the format avoids the interruptive nature of many native formats: “With Spark Ads, brands can build long-lasting connections that are authentic and rooted in community while also delivering sustainable and impactful business value.”

It launched with a campaign in partnership with Costa Coffee, which drove over 42m impressions at just a £1.39 CPM. This translated into a 159% increase in followers, (or 18,000 new fans).

Overall, Spark Ads is in service of bringing brands into the creative conversations TikTok’s users have on the platform.

TV ads: Toyota & the Olympics

The Olympic Games are finally starting today, with the opening ceremony well under way. Earlier this week I talked about how the advertising landscape for the Olympics had to change in the wake of the pandemic, but  just days away from the starting line, Toyota has made the decision to take its Olympics-related TV ads off air in Japan, despite its major sponsorship deal.

 Opposition to the Tokyo 2020 Olympics is growing in Japan, because of the pandemic. A handful of athletes have now tested positive for Covid-19 inside the Olympic village, just days after Japan declared a fourth state of emergency in Tokyo. So it comes as no surprise that some people doubt the IOC can control the spread of infection. Furthermore then, it makes sense for Toyota to step away from supporting the Olympics so outright- sometimes advertising is more than just advertising and strategical choices have to be made by brands to keep support.

Industry:  Total marketing budgets across the UK has increased for the first time since Q4 2019, rising by a net balance of 6% across surveyed companies, according to new data.

The findings from the latest IPA Bellwether report, show a reversal from the -11.5% recorded in the last quarter, including the sharpest increase since the first quarter of 2019.

Optimism is also on the increase, with a net balance of 34.6% indicating a strong overall level of confidence.  Financial prospects at company and industry level remain firmly in positive territory and ad-spend forecasts are revised higher for 2021, as businesses began to prepare for a strong economic recovery. One of the key findings from the report was that the re-opening of the UK economy following the Covid vaccination rollout will drive overall recovery over 2021 (7.5%) and 2022 (6%).