Amazon's TikTok-like shopping experience; Disney+ launched ad-supported tier
A weekly recap of major marketing and tech news you may have missed
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Here is your weekly edition of “5 Minutes of Marketing,” a newsletter delivering the latest marketing, business, and technology news.
The two main stories from Week 49 are: Amazon rolling out a TikTok-like social commerce shopping experience and Disney+ launching an ad-supported tier.
So, grab a cup of coffee ☕️ and enjoy the read!
🎁 Amazon to roll out TikTok-like shopping experience
Amazon.com said on Thursday it would roll out a TikTok-like feed on its e-commerce app, hoping to attract new shoppers through a stream of photos and videos from their favorite influencers.
The move comes as shopping activity slows in response to an uncertain economy and decades-high inflation. The feature is also geared at enticing young audiences who respond to formats like short videos, popularized by TikTok and Instagram.
The photo and video-based content — which is created by brands, influencers, and other customers — is in a scrolling format that can be engaged with through likes and will include links to featured Amazon products.
The new feature will begin rollout to select U.S. users starting early December and will become available to all users in the country in the coming months.
Within the Amazon mobile app, users can access the content through a light bulb icon in the lower navigation bar. From there, customers are asked what topics or interests they’d like to see content related to, such as pets, gaming, or makeup.
Amazon has warned that its fourth-quarter sales could fall below expectations, and it recently moved to cut thousands of corporate roles.
📺 Disney+ launches ad-supported tier
Last week, Disney launched an ad-supported option for its Disney+ streaming service. More than 100 companies — including P&G, Target, and Starbucks — have agreed to advertise on the platform.
Several different ad-supported bundles, including Disney+ Basic, will be available, starting at $7.99 per month. Disney+’s entry into ad-supported streaming comes just weeks after Netflix launched its ad-supported pricing tier. Nevertheless, starting last Thursday, the ad-free experience will increase to $10.99 monthly from its current $7.99 price tag.
In a browser, if something about an ad has really grabbed your attention, you can click a small “Learn More” text box to be directed to a related website. This option wasn’t available in the ads I watched on the iOS app.
As reported by The Verge, “Unlike Netflix’s ad plan, the volume of Disney Plus’ ads per show or movie was generally predictable. Typically, there’d be ads at the beginning of whatever I was watching, and then there would be two ad breaks in the middle. That wasn’t always the case; Avatar and three Star Wars movies had no ads at all, while Avengers: Endgame and Turning Red had three mid-movie ad breaks. I obviously wasn’t able to check the entirety of Disney Plus’ vast and ever-growing library, so there’s always a chance the ad load may differ.”
Despite the extensive roster of blue-chip advertisers, Disney+’s foray into ad-supported streaming comes with challenges. First, the field is getting crowded with other streamers like HBO Max and Netflix offering their own ad-supported options, as well as competition from other apps like YouTube, Twitch, and TikTok being an issue for streamers. Disney said recently that Disney+’s growth might slow going forward.
Streaming market’s most powerful players
Netflix is just getting started with the deployment of its first ad-supported tier in November, but it doesn’t plan to stop there. According to CEO Ted Sarandos, multiple new payment tiers are being developed as the company aims to boost revenue amid increased competition. Currently, Netflix charges $6.99 for a basic plan with ads and $9.99 for an ad-free plan. There are also more expensive plans with an option for simultaneous streaming on multiple devices.
It seems like the streaming wars are about to go onto a new level.
Other interesting stories:
Ad revenue forecast shrinks for 2023 amid economic uncertainty, Magna says
How to tell if Elon Musk's Twitter is winning? Watch the bonds
Apple will let its employees talk about discrimination and abuse
TikTok’s best of 2022 shows its most viral videos are getting smaller
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