Why Consumers Aren't Using Your Referral Program

In Today’s Issue:

🔍 Does schema help boost site rankings? We have the answer.

🚫 Meta offers ad-free subscription in Europe

🎁 Disclosing referrer rewards can increase customer referrals.

🛍️ 91% of consumers avoid brands with intrusive ads: Study

🛒 Amazon ad revenues surge 26%, challenging Google and Meta duopoly.

🧵 Threads confirms it’s working on an API so third-party platforms can post

 🇨🇦 Meta expands business verification to Canada; but is it worth the price?

QUIZ: Does Using Schema Help Your Pages Rank Better?

You’re aware that the major search engines provide a schema format for you to indicate specific elements in your content. A recipe would have a schema for ingredients and directions; a product page could delineate price, shipping info, and discounts.

🌍 Meta Launches Ad-Free Subscription in EU

• Meta introduces ad-free subscription in EU, EEA, Switzerland.

• Subscription aims to address EU privacy litigation concerns.

• Costs: €9.99/month on web, €12.99/month on mobile.

Meta is launching an ad-free paid subscription plan for Facebook and Instagram in parts of Europe. This move comes after years of privacy litigation in the EU, which has made it challenging for Meta to track and profile users for ad targeting. The new subscription will be available from next month, and will be available in the European Union (EU), European Economic Area (EEA), and Switzerland.

The subscription fee will be about €10/month for web users and €13/month for iOS or Android users.

But it could end up costing users much more than that.

That’s because starting in March, an additional fee will be charged for each extra account linked in a user's Account Center. This means costs could rise quickly for users with multiple accounts on Meta's platforms.

Privacy advocates have raised concerns over Meta's approach, as the choice seems to be between paying money or compromising privacy.

The Data Protection Commission (DPC) in Ireland, Meta's lead regulator in the EU, has been assessing the consent-based model proposed by Meta. The final verdict from data protection authorities is still pending.

Also, as part of their response to European privacy legislation, Meta will no longer let advertisers target teenagers in Europe. 

They say this will begin the week of November 6 and is a temporary measure.

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📣 Referral Rewards Disclosure Boosts Customer Participation

• Incentivized referral programs often face low participation rates.

• Disclosing referrer rewards can align with communal norms.

• Two factors influence the effectiveness of this strategy.

Many companies use "Refer a friend, reward yourself!" schemes, but they often see low participation. Why? Researchers say when customers are asked to refer friends for rewards, they feel a psychological barrier. This barrier is rooted in feelings like discomfort, conflict, and guilt. They feel like they're trading their friendships for rewards.

But there's a solution. A study published in the Journal of Marketing Science involving over 2,000 participants has found that being transparent about the referrer's reward can help. When companies disclose the reward the referrer gets, it feels more in line with communal norms. This reduces the psychological barrier and encourages more referrals.

The study also highlighted two important factors.

1. First, the size of the referrer's reward compared to the referee's matters. The bigger the reward, the more participation.

2. Second, where the reward comes from - the company or the referee's spending - plays a role. If the company is shelling out the incentive, people feel more at ease to sign up or purchase.

The paper is in the Journal of Marketing Science; it’s called I Will Get a Reward, Too: When Disclosing the Referrer Reward Increases Referring

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📈 Amazon's Ad Revenue Skyrockets, Challenging Duopoly

• Amazon's Q3 ad revenue surges by 26% to $12 billion.

• Retail media growth sees Amazon dominate with 75.2%.

• Amazon's US ad growth threatens Google and Meta.

Amazon's advertising business is booming. In the third quarter, the company reported a 26% increase in ad revenues, reaching over $12 billion. This growth rate is nearly double Amazon's overall revenue growth of 13%.

The retail media sector is rapidly expanding, with projections estimating it to be worth $45.15 billion in the US this year. Amazon is set to capture a whopping 75.2% of this market, overshadowing competitors like Walmart Connect.

But it's not just retail media. Amazon's acquisition of the Thursday Night Football (TNF) streaming rights in 2021 has also provided new advertising avenues. Although the company faced challenges in its initial year of streaming football, the shift from traditional TV to streaming is expected to benefit Amazon in the long run.

This rapid growth in the US ad market is causing concern for the established ad duopoly of Google and Meta. Both giants are closely watching Amazon's moves, especially as Amazon's US ad revenue growth is set to outpace both of them combined.

read more

🚫 Consumers Reject Brands with Intrusive Ads

• 70% feel advertisers disrespect their digital experience.

• 95% say content consumption is disrupted by intrusive ads.

• 91% avoid brands serving perceived intrusive ads.

We’re often told that the best way to get the attention of consumers is to stop them in their tracks — interrupt what they were doing, even briefly. This is what midrolls on YouTube videos do.

But new research has found that intrusive ads are costing brands their customers.

Wunderkind, a performance marketing channel, surveyed 1,000 digitally-active shoppers, and found that 70% believe advertisers don't value their online experience. Moreover, 95% reported that their online activities are frequently interrupted by these invasive ads.

The consequences? A whopping 91% of shoppers are choosing not to buy from brands that serve ads they find intrusive — or, at least that’s what they told the researchers.

This sentiment isn't isolated to a specific age group either.

• A separate study found that 99% of Gen Z consumers often skip ads they find disruptive.

• Additionally, 63% of online shoppers are now using ad blockers to dodge online advertisements.

Wunderkind, it should be noted, sells services that compete with interruptive ads, so — as usual with industry surveys — take it all with a grain of salt.

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Two Small Items

Meta is expanding its "Meta Verified" program for businesses to Canada. This program, previously tested in New Zealand, will get you — well, not much. A blue checkmark and some vague promises about better support and protection against impersonation. The subscription costs $37 CAD/month per platform. read more

Threads confirmed it is working on an API that will let third-party platforms schedule posts. No word yet on when it will roll out or if they will be hand-picking specific partners to launch with. read more

Quiz Answer

How much of a ranking boost in Google does providing schema data give you?

The answer, according to Google: None at all.

Google search spokesperson Danny Sullivan posted on social media:

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