On today's episode, we discuss what to make of Meta's new Threads app, whether the internet is becoming more like TikTok, the argument against "click to cancel," ad-supported versus ad-free video streaming, how shipping works, and more. Tune in to the discussion with our forecasting writer Ethan Cramer-Flood and analysts Zach Goldner, and Evelyn Mitchell-Wolf.

Ad spend across digital channels has been mixed so far this year, with spend on social networks slowing and connected TV spend boosted by new ad-supported subscription tiers. Meanwhile, retail media is diversifying at a rapid rate as nonendemic retailers get in the game

Threads plans first updates: User interface complaints lead to changes that may make the new app appeal to Twitter power users.

We have upped our social user forecast since our last revision in December 2022. And next year, there will be nearly the same number of social users in the US as there are TV viewers, a historic audience shift. If there’s any medium that’s “dying,” it’s linear TV.

Will Threads run into the same problems as Twitter? Even before Musk, Twitter was struggling. But Meta has advantages that make Threads more stable.

Apple set to inconvenience marketers yet again: Stripping tracking parameters from URLs could cause major short-term headaches.

Retail media, connected TV (CTV), and search will play key roles in the future of digital advertising. This shift has retailers like Amazon aiming to expand CTV and social network companies like Meta leaning into search. Here are five predictions, according to our analyst Andrew Lipsman, that were shared during our virtual summit earlier this month.

There will be 3.86 billion monthly social network users this year, equal to almost half (48.3%) of the world’s population. Despite concerns about content moderation and data privacy that have plagued Facebook, Twitter, and TikTok—to name just a few—the social audience is still on the rise.

Social platforms are already great vehicles for introducing consumers to products and brands they may want to purchase. Advertisers should lean into that strength and:

Key stat: In the US, 71% of Gen Z adults say they are likely to make a purchase directly via Instagram, according to Jungle Scout. Just 40% of adults overall say the same, with the caveat that older generations are less likely to buy from social networks in general.

Reels revolution: Meta doubles down on short-form video to better compete with TikTok.

As the retail media industry evolves, marketers are embracing new formats such as open web, social media, and streaming TV to reach customers earlier in their buying journey and increase brand recognition. To accomplish this, we’ll see retailers form collaborative alliances with social media companies, streaming platforms, and publishers.

TikTok and Meta continue to diverge on social commerce strategies, Pinterest teams up with Wayfair on a data clean room test, and YouTube introduces unskippable ads.

Social search is growing, fueled by consumer behavior and AI—and so are the search ad opportunities on TikTok, Instagram, Snapchat, and others. But search on social media isn’t the same as traditional search. Here’s what advertisers should know.

ChatGPT fever has hit social media. Advertisers need to pay close attention, but generative AI social media chatbots still have a lot to prove—and challenges to overcome.

Amazon sits at the top of US ecommerce, accounting for 37.6% of sales this year, according to our forecast. In addition to generating billions of dollars in sales, Amazon’s ecommerce business propels its other ventures, including retail media and B2B ecommerce. By harnessing the power of generative AI, Amazon could leave its retail competition even further in the dust, and possibly catch up to the Google and Meta duopoly.

Whether you’re an established brand like Wendy’s or a young D2C building an audience, understanding the right mix between organic and paid social is key, especially as the line between the two blurs. “I think paid is planned paid, and organic has opportunistic pay that could go along with it,” said Jimmy Bennett, vice president and global head of brand engagements and partnerships at Wendy’s.

“If you want to dominate the digital landscape, you’ve got to win or be a clear leader on the three core pillars: media, advertising, and commerce,” our analyst Andrew Lipsman said during our recent “Attention!” summit.

This year, US social network ad spending will grow at its slowest pace since we began tracking it, at just 3.4%, to reach $68.45 billion, according to our forecast.

Google put ads in its Search Generative Experience. YouTube has a new unskippable 30-second ad spot. HBO Max relaunched as Max. And The Kroger Co. is paving the way with in-store retail media. Here are what updates from these companies and more mean for advertisers.