BeReal is being acquired by mobile apps and games company Voodoo for €500M
State of Play: Voodoo, French mobile apps and games publisher, has acquired the social media app BeReal for €500 million. BeReal, known for its authentic and unfiltered approach to social networking, has been facing challenges in expanding its user base, which is languishing at around 40M accounts. Co-founder and CEO Alexis Barreyat will step down, passing the helm to Aymeric Roffé, CEO of Voodoo's social media app Wizz. Voodoo promises to infuse BeReal with new energy, leveraging its own expertise in mobile app growth and marketing to revitalize the platform.
Why it Matters: The acquisition may mark a shift in the social media landscape – while BeReal has struggled to grow, it did offer users a meaningfully different social media experience and, while success is not guaranteed, Voodoo's track record in scaling mobile apps may offer some promise and represents the first time a gaming company makes a meaningful move into social media. With a strong overlap between the social elements of video games and the connectivity of BeReal, the move may yet payoff.
2023 Pride backlash prompts brands to tread quietly for Pride 2024
State of Play: This year, brands are significantly scaling back their Pride Month campaigns. Marketers predicted this muted response following last year's backlash against numerous brands, not least Bud Light, and a desire to avoid a similar backlash and pressure from conservative groups. Some companies, like Target, had previously announced that they would limit their Pride merchandise, for example.
Why it Matters: The retreat may be symptomatic of a broader retreat by companies from issues that may be perceived as divisive, following an expansion in previous years. Don’t count on Elon Musk becoming tamer, but consumer brands may become more careful. On the other hand, zeroing in on Pride again, the rollback may also be partly driven by a more rounded inclusion of the LGBTQIA+ community into year-round marketing and communications activities. Either way, we’ll have to wait a year to see if this year was a one-off or a turning point.
State of Play: Forbes Advisor, in collaboration with Talker Research, conducted a study revealing a significant shift among young consumers, particularly Gen Z, who are increasingly turning to social media platforms like TikTok and Instagram for discovering businesses and products – a noteworthy trend that poses a clear threat to Google’s dominance in knowledge and product discovery. The study also finds that while Gen Z uses social apps for immediate, personal interests such as fashion, beauty, food, and crafts, they still rely on Google for more substantial decisions involving larger purchases, places to visit, and professional services.
Why it Matters: Further evidence of a sustained trend for social media as a discovery tool suggests that businesses may need to realign their marketing, and wider communications, towards more visually-engaging formats, potentially at the expense of SEO. For the likes of Google this represents an existential concern, as its business is overwhelmingly reliant on serving ads at scale to users searching the web. And, while there’s definitely a shift towards the likes of TikTok, it is far too early to draw conclusions about the future as generative AI adds yet another variable into how users will approach discovery, with search giants at the forefront of trying to implement the tech (with mixed results, see below).
Google's AI overview under fire for dangerous answers, as tech race heats up
State of Play: Google’s integration of generative AI technology in search results has left users scratching their heads, as it offers a rundown of the benefits of running with scissors (“improves pores and gives strength”, for those wondering) and how to prevent cheese from unsticking from a pizza (a “1/8 cup of non-toxic glue” should do the trick).
Response quality will certainly remain a major worry and not just for Google – this concern has driven both data acquisition deals to train models further as well as lawsuit threats from content providers, who are rediscovering the value of their data. The Financial Times recently struck a licensing deal with OpenAI for training data, while Danish media groups are threatening to sue OpenAI for compensation if they’re unable to reach a deal.
Why it Matters: The issue isn’t new – Google’s own pre-generative AI knowledge graphs also often get facts wrong – and indeed disclaimers that generative AI can make mistakes are widespread, but issues are unlikely to go away, as hallucination is more a feature of the technology than a bug. Moreover, it may become exacerbated as tech giants are jumping over each other to be first to market with a killer feature.
The next major player to watch in this context will be Apple, which has just unveiled Apple Intelligence, its own implementation of OpenAI’s technology for its latest line of devices. Apple is not a first mover in this market, and its silence in the AI space has led to much speculation, however it has a strong history of entering existing markets only to later dominate them. Soon Google may have more to worry about than incorrect search results.
Donald Trump Joins TikTok
State of Play: Former U.S. President Trump, who once sought to ban TikTok, debuted his verified account on the platform on June 2nd with a UFC event video, amassing over 3.6 million followers—a stark contrast to President Biden's 340,000. Trump now opposes Biden's push for ByteDance to divest TikTok, arguing that while there are national security concerns, a ban could alienate young Americans and benefit Meta, which had previously banned him after the 2021 Capitol events.
Why it Matters: Just three days post his felony convictions, Trump's TikTok debut could significantly influence youth voter engagement, energize his base, and prompt other politicians to reevaluate their digital campaigning tactics. If Trump's supporters start flocking to the platform, it may lead to a noticeable demographic shift, potentially diversifying the age and political spectrum of TikTok's user base. This influx could alter the platform's content dynamics, sparking a rise in politically charged content and debates, while challenging TikTok's community guidelines and content moderation efforts.
Billionaire Frank McCourt’s TikTok bid wins key backer as he looks past app’s prized algorithm
State of Play: The race to acquire TikTok has intensified following President Joe Biden's legislation that compels ByteDance, TikTok's Chinese parent company, to sell its US operations or face a ban. Frank McCourt, a real estate billionaire, is the latest to express interest, aiming to preserve the user experience while potentially integrating the app with his Project Liberty initiative. Despite a potential $100 billion valuation, the acquisition faces significant hurdles, not least ByteDance's reluctance to sell and the Chinese government's restrictions on exporting the app's core algorithm.
Why it Matters: The outcome of this acquisition could redefine digital engagement and data privacy, as McCourt's involvement suggests a shift towards decentralized social networking. With TikTok's vast influence on global culture and its central role in the creator economy, the platform's future ownership has broad implications for users and creators, who may see disruption in content delivery and monetization, as well as for the wider tech industry if it leads to significant shifts in platform dynamics and data control.
