In This Issue:

• When to Use “Top Rated” vs. “Best Seller”

• Soon, Your Products Could Be Auto-Tagged on TikTok

• TikTok Is Boosting Videos Posted in Landscape

• TikTok Wants Your Brand to Test Out Being Funny

• Threads Picks Up Some Steam in December

• PayPal Layoffs Part of a Growing Industry Trend

When to Use “Top Rated” vs. “Best Seller”

There is a new hidden gem in your persuasion arsenal — but its effectiveness depends on a secret map, 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 "Best Seller", especially in certain cultures. This comes from a comprehensive study conducted this past November which looked at the impact of these labels 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 if it was labeled "Top Rated" rather than "Best Selling". The study also noted that Americans with more interdependent personalities showed a similar pattern.

• But in independent cultures, such as 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 8,769 brands.

But there were limitations to the study. It didn't explore the effect of combining both labels, nor did it focus on digital products and services. It also didn't test regions where neither interdependent nor independent culture is dominant.

So, what's 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 showing its sales figures. For independent cultures, either approach works equally well.

Soon, Your Products Could Be Auto-Tagged on TikTok

TikTok is trying to figure out how to make every scroll a potential shopping spree.

Their latest test could turn literally every post into a shoppable storefront, automatically tagging objects in videos and linking them to similar products in the TikTok Shop. 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 phenomenally successful in Asia, but has been less so in Europe and North America. The company is targeting $17.5 billion in US sales this year.

However, the road to e-commerce glory isn't paved with rose petals. Counterfeit concerns linger, and some users feel overwhelmed by the barrage of influencer ads. 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 placement could make TikTok Shop more accessible to regular users while offering content creators new avenues for earning. If they can curate the experience to avoid spam and knockoffs, this feature could be the key to unlocking a whole new layer of engagement and revenue for TikTok and marketers alike.

TikTok Is Boosting Videos Posted in Landscape

TikTok is, of course, the king of short-form video, and its vertical format is what has 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? There are a few possible reasons.

• TikTok is trying to be more like YouTube, the king of long-form video. TikTok definitely wants to attract some of 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’s been working on ways to make its app more watchable on TVs, and horizontal videos would be a good fit for that.

@candicedchap

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TikTok Wants Your Brand to Test Out Being Funny

Also with TikTok for a moment, the company has a new guide out teaching brands how to be funnier — or, at least, how to inject humor into their content.

The guide is based on a study they did that found:

• 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 also encourages partnerships through its Creator Marketplace.

Other recommendations made in the guide include to:

1. Use trending memes to boost your reach

2. Remix popular videos (remixes have led to a 14% increase in ad view time)

3. And just generally take some creative risks, if your brand voice permits it — including styles like surrealism and informal content, which are well-received on the app.

Threads Picks Up Some Steam in December

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 6th most downloaded app that month, averaged across both Apple and Google platforms.

Threads initially had a record-breaking launch, amassing 100 million registered users in just five days. However, downloads declined from September through the end of the year. The December growth spike is likely tied to Meta's promotional efforts, including displaying ads on Facebook featuring Threads' viral posts.

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 consumer disinterest in TikTok's recent e-commerce pushes.

PayPal Layoffs Part of a Growing Industry Trend

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 that 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 wanted to invest only 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. Now, as growth slows down, 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 about 1,000 employees.

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