TikTok vs. Facebook; Google vs. advertisers

What back-to-school season tells us about upcoming holiday retail trends [Insider Intelligence]( [Emarketer Daily]([Emarketer Daily]( Charts. News. Analysis SEPTEMBER 25, 2023 | By Sara Lebow, Arielle Feger, Becky Schilling, and Meaghan Yuen The University of Michigan just became the first major university to roll out its own AI model, dubbed [U-M GPT](. The new tech is similar to ChatGPT, but it won’t stop talking about Charles Woodson’s [1997 punt return]( against Ohio State. Was this email forwarded to you? Sign up [here](. TOP STORY [TikTok set to surpass Facebook in daily minutes by 2025—but ad spend hasn’t followedÂ]( By 2025, US adults will spend more time on TikTok than on Facebook, according to our June forecast. This marks a major milestone for TikTok, which is on track to become the largest social platform in total daily minutes by the same year. Yet, ad dollars still favor Facebook. In fact, Facebook will claim over five times more ad revenues per person per hour spent on the platform over the next few years. By 2025, Facebook will bring in $1.02 per person per hour while TikTok will bring in $0.19. [Keep reading]( NEWS AND VIEWS [Google says it quietly raised ad prices as much as 10%. Advertisers say it’s higher.]( Our view: Whether Google inflated costs by 5% or 100% is hard to pin down without clear figures from the company. What the trial and strong response to Google’s statements indicate is angst toward the ad giant, which advertisers feel lacks transparency and raises prices without offering more in return. [Microsoft: Ad clicks within Bing Chat are 1.8x higher]( Our view: Many consumers are used to seeing ads in traditional search interfaces and may end up ignoring them. But ads within the text-based Bing Chat are more unfamiliar, so consumers’ eyes may be drawn to them more. [WFA: Media takes a backseat in AI strategy]( Our view: Marketers are more focused on using AI to create content, generate ideas, and improve the customer experience.  ANALYSIS [What back-to-school season tells us about upcoming holiday retail trends]( US ecommerce back-to-school and holiday growth trends are usually pretty similar, but this year, growth will diverge. US ecommerce back-to-school and holiday spending growth were within 1 percentage point of each other in both 2020 and 2021, and closer to 4 percentage points apart in 2022, during a holiday season impacted by inflation, supply chain issues, and geopolitical concerns. This year, we forecast a US back-to-school ecommerce growth rate of 1.5%, slower than our forecast 11.3% holiday retail ecommerce growth. [Keep reading]( THINGS TO KNOW 👶 [Meta to push for younger users with new AI chatbot characters]( 📈 [How generative AI improves customer experience metrics]( 🗑️ [5 outdated marketing KPIs to toss and what to reference instead]( 👀 [ChatGPT can now see, hear, and speak]( 🤝 [Writers Guild, studios reach tentative deal]( PODCAST [Behind the Numbers: Around the World]( TikTok’s ecommerce plans around the world, what’s driven success in some markets and held it back in others. Tune in on [Apple Podcasts](, [Spotify](, or wherever you listen to podcasts. [Follow us on Instagram.]( “Behind the Numbers” is made possible by Awin. [Listen in]( THE BIG QUESTION Prime data: Amazon is putting ads in its Prime Video service. How many viewers does the platform currently have in the US? A) 57 million B) 157 million C) 257 million D) 357 million [Get the answer]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. [Become a Premium Subscriber]( | [Advertise with us]( [Manage your email preferences]( | [Unsubscribe]( | [Terms of Use]( | [Privacy Policy]( ©2023 Insider Intelligence, One Liberty Plaza 9th Floor, New York, NY 10006 [LiveIntent Logo]( [AdChoices Logo](