14 Feb 2024
- 04 Feb 2016
- 3 Min read
Industry round-up: Facebook introduces Reactions and Europe cracks down on Google
This week has seen some huge developments in the world of digital marketing, including Google being chased for tax, Facebook reinventing the ‘like’, and a new report which potentially reveals the future of ad blockers.
European countries crack down on Google
According to the Wall Street Journal, Italy is the latest country to pursue Google for unpaid taxes. The European heavyweight claims Google owes them €300 million from between 2008 and 2013. This comes hot on the heels of France’s €1 billion tax claim against the company, as well as the UK’s recent controversial £130 million tax deal, which only equates to a 3% tax rate on profits from 2005 onwards.
Facebook Reactions: Reinventing the ‘Like’
In what will be its biggest update in years, according to Bloomberg, Facebook is set to launch its Reactions feature in the next few weeks. This will enable users to choose from five reactions: ‘Angry’, ‘Sad’, ‘Wow’, ‘Haha’, and ‘Love’ (‘Yay’ was going to be number six, but wasn’t “universally understood”). You’ll be able to access these Reactions by holding down the ‘Like’ button for a few seconds to reveal them in a drop-down. Each status will display its total tally of each reaction.
While it may seem trivial, this update could have a huge impact on Facebook’s ad strategy. The ‘Like’ button is clicked more than six billion times every day — more often than people search for something on Google. All of this information is used to tailor ads specific to each user’s interests, making it source of the majority of the company’s profits. Altering the formula is a big risk, especially if users feel it overcomplicates the experience, but it also gives Facebook’s algorithms incredibly specific information which could be used to further refine ad targeting.
Would you choose to see ads?
In our last round-up, we looked at how Forbes has been refusing ad-block users entry to their site and promising an “ad-light experience” if the app is disabled. According to a new report by Teads, they may be on to something, as 79% of Brits would be happy to uninstall their ad blocker if given more choice over ads.
The report also reveals that 72% of users say they installed their ad blocker due to overly intrusive adverts, suggesting that a more subtle approach to on-site advertising may be the key for companies who want to continue to make a profit from online ads. Furthermore, 57% of users said they would consider uninstalling their blockers if they could skip ads at will, and 39% if the ads were more relevant to them, suggesting that control over the adverts they are shown is incredibly important to consumers.
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