ClickZ Consumer Electronics Newsletter - 11.07.2024

PLUS: Steam Deck 2's strategic delay & Fitbit's budget exit shakes market

Author

Rachael Kennedy
November 07, 2024 • Estimated Reading Time: 7 minutes

Insight of the Week 🏆

SHOPTALK FALL 2024 RECAP
Is YouTube Google’s New Rising Star? 🌟 

YouTube surpasses forecasts in Alphabet's Q3 earnings call

Google parent Alphabet's Q3 earnings call revealed YouTube's impressive performance, bringing in nearly $9b in ad revenue—a 12.2% increase year-over-year. This substantial growth, typically undisclosed by Alphabet, signals the platform's rising dominance in digital advertising.

👉 Fospha highlighted this upward trend in their their latest report, identifying YouTube as the second-fastest-growing ad channel for eCom brands by ad spend.

While YouTube currently reports the highest CPA among Google channels as brands adapt and optimize their campaigns, its increasing popularity reflects a broader shift toward brand-building channels for long-term growth. The platform's potential for driving brand growth makes it one to watch in coming quarters.

Specialty Bites 🍪

Only 1,000 units of the Phone (2a) and Phone (2a) Plus Community Edition will be produced.

Nothing’s new Phone 2A Plus Community Edition shows what’s possible when a brand invites people into the creative process. With over 900 community contributions shaping its design, this limited-edition phone highlights how collaboration can lead to fresh, memorable products that feel personal to consumers.

The phone’s glow-in-the-dark feature, for instance, is more than just eye-catching—it’s practical, using daylight to charge its phosphorescent material. This blend of visual appeal and function speaks to a broader shift in what people are looking for in their devices. Designed in partnership with Astrid Vanhuyse, Kenta Akasaki, and Nothing’s own Adam Bates and Lucy Birley, it’s a powerful example of the impact of community-driven ideas.

The phone is part of a larger vision to involve users directly in shaping what they use. This approach isn’t new for Nothing; past collaborations, like the CMF Nothing project with Bambu Lab, invited users to create their own accessories, showing how people can actively participate in the brand’s evolution.

The attention to detail goes beyond the phone itself. The packaging, redesigned by Ian Henry Simmonds, and the new Connected Collection wallpapers by Andrés Mateos, extend the sense of thoughtful design into every aspect of the product experience. The “Find your light. Capture your light” campaign by Sonya Palma ties it all together, reinforcing the brand’s focus on uniqueness and creativity.

Valve's decision to delay the Steam Deck 2 is a strategic one, allowing for significant advancements before release. This approach mirrors the console life cycles of giants like Nintendo and Sony, ensuring gamers get the most value and innovation.

By waiting for a "generational leap in compute," Valve aims to deliver a truly transformative experience without compromising battery life.

The company's focus on substantial improvements rather than incremental updates is a customer-centric strategy. Valve's openness to competition, like ASUS ROG Ally, drives innovation and improvement. The recent Steam Deck OLED update exemplifies this, offering enhanced performance and display.

Google is preparing for Android XR headsets, as indicated by Play Store code updates. This suggests a future focus on XR technology, blending virtual, augmented, and mixed reality. Despite past challenges, tech companies persist in developing new devices, aiming to create the next ubiquitous gadget beyond smartphones.

Fitbit's exit from the affordable smartwatch market opens opportunities for brands like Amazfit and Armitron. Armitron, a trusted name in traditional watches, offers budget-friendly smartwatches with features comparable to higher-end models. Their focus on affordability, style, and functionality positions them to capture consumers seeking value and reliability.

Leading Voice📣

Jamie Bolton reveals how top eCommerce brands drive resilient growth:

🌐 Diversification is Key: A diverse channel mix acts as an “insurance policy” for brands amid rising CPAs and a challenging market.

🔄 Stay Agile: What worked last year may not work today. Top brands adjust their strategy over time, adapting to new growth levers as they mature.

📊 Measurement Matters: With channel diversity comes more complex measurement needs. Only with full-funnel attribution can brands assess their channel mix and remain agile.

For a full rundown, check out the full post!

Performance Pulse 📈

LinkedIn's new research highlights the effectiveness of connected TV (CTV) campaigns for reaching decision-makers. With LinkedIn's CTV ad options, you can extend your marketing to platforms like Paramount and Roku. This approach could enhance your campaign's reach, especially among influential LinkedIn users who regularly consume CTV content.

Ad prices fell in Q3 2024, impacting ad spend growth in search and social. Retail media saw a click surge, while new formats outpaced traditional channels. Amazon DSP and Google Performance Max showed significant growth. Lower prices increased ad volume, especially in retail media's purchase funnel.

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