The U.K.’s competition regulator has raised concerns about the market power of digital ad platform giants Google and Facebook in an interim report published today, opening up a consultation on a range of potential inventions — from breaking up platform giants to limiting their ability to set self-serving defaults and enforcing data sharing and/or feature interoperability to help rivals compete.
Breaking up Google by forcing it to separate its ad server arm from the rest of the business is one of a number of possible interventions it’s eyeing, along with enforcing choice screens for search engines and browsers that use non-monetary criteria to allocate slots — versus Google’s plan for a pay-to-play offering for EU Android users (which rivals argue does not offer relief for the antitrust abuse the European Commission sanctioned last year).
The U.K. regulator is also considering whether to require Facebook to interoperate specific features of its current network so they can be accessed by competitors — as a fix for what it describes as “strong network effects” which work against “new entrant and challenger social media platforms.”
The Competition and Markets Authority (CMA) launched the market study in July — a couple of weeks after the U.K.’s data watchdog published its own damning report setting out major privacy and other concerns around programmatic advertising.
It is due to issue a final report next summer — which will set out conclusions and recommendations for interventions — and is now consulting on suggestions in its interim report, inviting contributions before February 12.
Since beginning the study, the CMA says it has received several requests to open a full-blown market investigation, which means it has a statutory duty to consult on making such a reference.
Based on initial findings from the study, it says there are “reasonable grounds” for suspecting serious impediments to competition in the online platforms and digital advertising market.
The report specifically flags three areas where it suspects harm — namely:
- the open display advertising market — with a focus on “the conflicts of interest Google faces at several parts of its vertically integrated chain of intermediaries”;
- general search and search advertising — with a focus on “Google’s market power and the barriers to expansion faced by rival search engines”;
- social media and display advertising — with a focus on “Facebook’s market power and the lack of interoperability between Facebook and rival services”;
Other concerns raised in the report include problems flowing from a lack of transparency in the digital advertising market; and the difficulty or lack of choice for consumers to opt out of behavioral advertising.
However, the regulator is not making a market investigation reference at this stage — a step which would open access to the order making powers which could be used to enforce the sorts of interventions discussed in the report. Instead, the CMA says it favors making recommendations to government to feed into a planned “comprehensive regulatory framework” to govern the behaviour of online platforms.
Earlier this year the U.K. government set out a wide-ranging proposal to regulate a range of online harms. Although it remains to be seen how much of that program prime minister Boris Johnson’s newly elected Conservative government will now push ahead with.
“Although it is a finely balanced judgement, we remain of the view that a comprehensive suite of recommendations to government is currently the best way forward and are therefore consulting on not making a market investigation reference at this stage,” the CMA writes, saying it feels it has further investigation work to do and also does not wish to “cut across” the government’s plans around regulating platforms.
“The concerns we have identified regarding online platforms such as Google and Facebook are a truly global antitrust challenge facing governments and regulators. Therefore, in relation to some of the potential interventions we may consider in a market investigation, and in particular any significant structural remedies such as those involving ownership separation, we need to be pragmatic about what changes could efficiently be pursued unilaterally by the UK,” it adds, saying it will “continue to work as closely as we can with our international counterparts to develop a coordinated position on these issues in the second half of the study.”
The new European Commission has also talked tough on platform power, suggesting it will further dial up scrutiny of tech giants and seek to accelerate its own interventions where it finds competitive harms.
Responding to the CMA report in a statement, Ronan Harris, VP, Google U.K. and Ireland, told us:
The digital advertising industry helps British businesses of all sizes find customers in the UK and across the world, and supports the websites that people know and love with revenue and reach. We’ve built easy-to-use controls that enable people to manage their data in Google’s services — such as the ability to turn off personalised advertising and to automatically delete their search history. We’ll continue to work constructively with the CMA and the government on these important areas so that everyone can make the most of the web.
A Facebook spokesperson also sent us this statement:
We are fully committed to engaging in the consultation process around the CMA’s preliminary report, and continuing to deliver the benefits of technology and relevant advertising to the millions of people and small businesses in the UK who use our services.
We agree with the CMA that people should have control over their data and transparency around how it is used. In fact, for every ad we show, we give people the option to find out why they are seeing that ad and an option to turn off ads from that advertiser entirely. We also provide industry-leading tools to help people control their data, like “Off Facebook Activity”, and to transfer it to other services through our Data Transfer tools. We look forward to further engagement with the CMA on these topics.
5 Effective Ways to Run Facebook Ads A/B Tests
Facebook Ads A/B Tests or split tests help them try different versions of ads with various campaign elements. This process helps them arrive at the best version for the organization’s target.
A/B Tests offer a vast pool of resources to try out various versions. You may get caught up and lose your way to arriving at the best version in a limited time. To better understand this topic you can read the Facebook ad testing guide. Here are five effective ways to run Facebook Ads A/B Tests-
1) Start with the minimal number of variables
This approach will help you analyze the impact of a variable much better. The lesser the variables, the better will be the relevant results and more conclusive. Once you have various versions, you will need to run them through the A/B Significance Test to determine if the test results are valid.
2) The second way is to select the correct structure.
There are two structures in A/B tests. One is a single ad test, and the other is multiple single variation ad sets. All the variations will go under one ad set in the first structure. Each variation will be under a separate ad set in the second one. Out of the two, the second one works out to be better and gives better results.
3) Use of spreadsheets is important to stay organized.
These spreadsheets help collect and analyze data to get meaningful insights and arrive at data-backed decisions.
4) Do target advertising and set realistic time goals.
One approach is to choose an entirely new set of audiences. Also, the data pool should be vast and not the same as some existing campaigns. The reason for choosing a different audience is that Facebook may mix up your ads and give contaminated output.
Another approach to choosing the right audience is to pick geography. It works better, especially when you have business in a particular region.
It’s also essential to set a realistic timeline for your testing. Facebook suggests one should run a test for at least four days, but you can choose to run the test for up to 30 days.
5) Set an ideal budget.
The concept of a perfect budget is subjective. But, you can fix it yourself, or Facebook can do that for you based on your testing data. A large part of the test budget is spent on avoiding audience duplication. If the same audience sees variations, it could affect the test results.
Besides these top five effective ideas, you will need to take a few more action points to make the testing process efficient. Make sure you put the website’s domain link and not the landing page link in the ad, as that doesn’t look good. Put appropriate Call To Action Button, such as ‘Learn More,’ ‘Buy Now,’ etc. It’s also important to see how your ad is coming across on various electronic gadgets- mobile, tablets, etc.
Another strategy that works is trying to engage the customer. You may add social engagement buttons such as ‘Like’ or ‘Comment.’ Use high-resolution images as they work better with the customers. Low-quality, highly edited images are often not liked and trusted by the consumers.
You can learn more about the audience behavior patterns with A/B test results. Conducting these tests on Facebook streamlines the entire process and makes it smooth for you. With the test results, advertisers and marketers can work on the creatives they need to utilize.
To sum it up, you can run an effective A/B test campaign within the specified budget. You don’t need to spend massive amounts to get your advertisement right. You’ll make the correct assumptions about the performance of variations with a good understanding of business and consumers.
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