Today in Digital Marketing - 'Top Rated' or 'Best Seller'? Ask Where, Not Which.

Starting point is 00:00:00 It is Tuesday, January 30th. Today, top rated or best seller? Why where you sell is important as how you sell. Also, TikTok's latest product tagging test could turn every video into an ad. The surprising reason some brands are seeing a reach boost on TikTok and threads is coming for what's left of Twitter. I'm Todd Mathen. That's ahead today in digital marketing. Do you have business insurance? If not, how would you pay to recover from a cyber attack, fire damage, theft, or a lawsuit?

Starting point is 00:00:36 No business or profession is risk-free. Without insurance, your assets are at risk from major financial losses, data breaches, and natural disasters. Get customized coverage today starting at $19 per month at zensurance.com. Be protected. Be Zen. There is a new hidden weapon in your persuasion arsenal, but its effectiveness depends on a secret map,

Starting point is 00:01:00 one drawn with cultural lines, not city streets. When it comes to online shopping, new research has found that labels like top-rated could be more effective than bestseller, especially in certain cultures. This comes from a comprehensive study conducted this past November, which looked at the impact of those labels

Starting point is 00:01:20 on consumer behavior. Researchers found a clear distinction between interdependent and independent cultures. In interdependent cultures, often found in Asia, South America, and the Middle East, labels emphasizing community approval, like top-rated, significantly influenced purchasing decisions. For example, in India, people were willing to pay 28% more for a tablet

Starting point is 00:01:47 if it was labeled top-rated rather than best-selling. A study also noted that Americans with more interdependent personalities showed a similar pattern. But in independent cultures, like those in North America and Europe, there's no significant difference between the two labels. Both top-rated and best-seller have a similar impact. The research analyzed more than 1,800 products and 8,700 brands. There were limitations to this study. It didn't explore the effect of combining both labels, nor did it focus on digital products or services. It also didn't test regions where neither interdependent

Starting point is 00:02:24 nor independent culture is dominant. digital products or services. It also didn't test regions where neither interdependent nor independent culture is dominant. So what is the takeaway for retailers and online marketers? If you're targeting interdependent cultures, emphasizing how much people like a product could be a more effective strategy than just bragging about its sales figures. For independent cultures, either approach works equally well. TikTok is trying to figure out how to make every scroll a potential shopping spree. Their latest test could turn almost every post into a shoppable storefront by automatically tagging objects in videos and linking them to similar products in the TikTok shop.

Starting point is 00:03:07 No more relying on people to tag your products. The AI will do it for them. This would be, of course, a game changer for TikTok's e-commerce ambitions. Previously, only influencers and brands got the product tagging privilege, but now this could extend to the entire user base. TikTok keeps trying to make commerce work on their platform. It's been phenomenally successful in Asia, but less so in Europe and North America. The company is targeting $17.5 billion in U.S. sales this year. But the road to e-commerce glory isn't paved with rose petals. Counterfeit concerns linger, and some users feel overwhelmed

Starting point is 00:03:45 by the barrage of influencer ads lately. The challenge for TikTok will be to balance monetization with genuine entertainment without turning the app into a glorified shopping mall. Still, the potential is undeniable. Automatic product placements could make TikTok shop more accessible to regular users while offering content creators new avenues for earnings.

Starting point is 00:04:07 If they can curate the experience to avoid spam and knockoffs, this could be the key to unlocking a whole new layer of engagement and revenue for TikToks and marketers alike. TikTok is, of course, the king of short-form video, and its vertical format is what's made it so popular. But now the app is experimenting with a new way to watch videos horizontally. TikTok has started asking some users to submit videos that are designed to be viewed in landscape mode. To watch these videos, you click on a full screen button and turn your phone sideways. TikTok is telling creators that if they submit horizontal videos, the platform may boost their views. So why is the company making this move? A few possible reasons. TikTok is trying to be more like YouTube, for one, the king of long form video. It definitely wants to attract some of

Starting point is 00:05:01 YouTube's audience by offering a similar viewing experience and, with them, ad dollars. Also, TikTok wants to get more content that will play well on TVs. The company has been working on different ways to make its app more watch, or at least how to try to inject humor into your content. The guide is based on a study that they did that found that 30% of users cite humor as a major factor influencing their purchasing decisions. 70% of viewers find the most enjoyable aspect of TikTok ads is their ability to make people laugh. If you don't have the funny on your own, TikTok suggests collaborating with established creators since they're more likely to understand TikTok's style of humor. It also encourages partnerships through its creator marketplace.

Starting point is 00:05:59 Other recommendations made in the guide include to use trending memes to boost your reach, remix popular videos, apparently remixes have led to a 14% increase in ad view time, and just generally take some creative risks if your brand voice permits it, including styles like surrealism and informal content, both of which are very well received on the app. Do you have business insurance? If not, how would you pay to recover from a cyber attack, fire damage, theft, or a lawsuit?

Starting point is 00:06:36 No business or profession is risk-free. Without insurance, your assets are at risk from major financial losses, data breaches, and natural disasters. Get customized coverage today today starting at $19 per month at zensurance.com. Be protected. Be Zen. Threads, Meta's answer to Twitter, is getting popular again. After flatlining on growth a bit last year, the app is now showing impressive numbers, tripling its downloads in December. This propelled Threads into the sixth most popular app that month,

Starting point is 00:07:06 averaged across both Apple and Google platforms. Threads initially had a record-breaking launch, amassing 100 million registered users in just five days. But downloads declined from September through the end of the year. This December growth spike is likely tied to Metis' promotional efforts, including displaying ads on Facebook featuring Threads' most viral posts. As of now, Threads has about 160 million users, with active users also on the rise since Meta's last update in October. While Threads is gaining ground, its parent company, Instagram, outperformed it in December. Instagram became the most downloaded app with 54 million installs, surpassing even TikTok. Some analysts say this reflects consumers' disinterest

Starting point is 00:07:52 in TikTok's recent e-commerce pushes. And finally, the information is reporting this afternoon that PayPal told its staff to expect layoffs at the company. Specific numbers aren't known, but what is known is the decision comes shortly after their new CEO introduced new AI driven features aimed at boosting user and merchant engagement. Since coming aboard in September, he's been vocal about PayPal's high costs. In November, he said he only wanted to invest in the company's most profitable growth areas. The tech sector as a whole, particularly fintech companies, flourished during the pandemic, benefiting from the surge in online shopping and remote work. But now, as growth slows down,

Starting point is 00:08:39 tech giants are scaling back. Recently, Google announced significant job cuts across various departments, including ad sales and YouTube. Salesforce also reduced its workforce by around 1%, and eBay is planning to lay off 1,000 employees. Follow us on threads. We are at Today in Digital Marketing, or follow my personal account at Todd Mappin. Thanks for listening. See you tomorrow. Outro Music

Today in Digital Marketing - 'Top Rated' or 'Best Seller'? Ask Where, Not Which.

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