Happy Wednesday! I hope you are ready for another round of techtonic news, cause I know I sure am. We got a sizzling hot edition and I capped it off with one hell of an insight that will make your bank account go brrrrrrrr!
Enjoy!
📅 The Agenda:
Brand & Marketing: The big mac is now European history
AI & Tech: Whistleblower protection for the AI industry
Retail & Ecommerce: Your next delivery may be arriving my drone
Social Media: Google is loosing ground to SM
The Curiosity: Do you think you have free will?
Weekly Insight : How Technology and Apps Coax Us into spending money
🔔 Brand & Marketing
Burger got bruised! McDonald's loses Chicken Big Mac trademark in Europe. Apparently the saying “use it or lose it” still applies.
Brilliant ad campaign shines a light on just how little natural light we are getting.
Hair care brand Bed Head is smashing advertising conventions with their new ad.
Marketers are missing out by avoiding Reddit, according to Geoff Gates of Boathouse. But is that true, though? Reddit is a bit of a wild west. Let’s see..
How Dr Pepper passed Pepsi by marketing around football, flavor innovation.
30+ brilliant ads to catch your eye
The bumble fumble - Everything that went wrong with Bumble’s rebrand.
Tips for using Performance Marketing in your growth marketing framework.
This we are going into the Olympics! Check out team Romania’s shinny new brand. Sexy or what?
💠 AI & Tech
We have our first ever beauty pageant for AI models - Miss AI. Take a look at the top 10 “models” competing for the crown.
When Nvidia speaks, the world listens. Here is what the chip manufacturer had to say about AI chip demand.
Training AI models is lucrative business. Shutterstock’s AI licensing business is big bucks as it generates $104 million in 2023.
As AI advances more questions are popping up about the ethics and practices of the industry, as tech insiders call for whistleblower protection. Yikes!
Microsoft, Nvidia and OpenAI are in hot water as they face Anti-Trust investigation in the U.S. You just can’t trust anybody these days…
Researchers are using AI to predict cancer treatment outcomes.
Deloitte predicts banks could be vulnerable to AI scammers and stand to lose billions in the process. Why do I get the feeling we need to bring back cash?
More and more businesses are using AI for their visual content needs.
Apple Intelligence is the company’s new generative AI offering
🏷 Retail & Ecommerce
Retail media will make up 1/5 of total global digital ad spend in 2024. Let the
ad-emonium begging!More and more companies are inventing in immersive shopping experiences! Ikea, Walmart and Sketcher join the club.
How retailers can reduce return rates with AI
Shopify’s sales data for May shows evidence of ‘cocktail craze’. Margaritas, anybody?
Why do luxury brands have many stores all within a very small proximity in tourist areas? Time to nab that purse!
Walmart to test drone delivery in Dallas.
📢 Social Media
Out of the way, Google! Social media overtakes search engines for discovery among Gen Z and millennials.
Fantasizing about working with your feet in the sand and a cocktail in your hand? Here is a list of countries that offer digital nomad visas. You’re welcome.
Instagram builds out its anti-harassment 'Limits' feature allowing teens to opt out of interacting with stranger on the platform.
Social proof, aka testimonials and reviews, are a must have for any business. Check out how you can use Instagram to grow your business through reviews.
Artists are NOT happy about Instagram training their AI model with their work, so unhappy that some are migrating to a different platform.
🎪 The Curiosity
The 12th of June is World Day Against Child Labor. It also marks the 25th anniversary of the adoption of the Worst Forms of Child Labor Convention.
Over the past few years, conflicts, crises and the COVID-19 pandemic, have plunged more families into poverty – and forced millions more children into child labor. Economic growth has not been sufficient, nor inclusive enough, to relieve the pressure that too many families and communities feel and that makes them resort to child labor. Today, 160 million children are still engaged in child labor. That is almost one in ten children worldwide.
Ever wonder if we actually have free will? I mean, it wasn’t exactly top on my agenda, but then I stumbled onto this article. Welcome to the rabbit hole!
📌 Weekly Insight
The Psychology of Spending: How Technology and Apps Coax Us into Splurging
In this age of gadgets and gizmos, shopping has become a breeze. With just a few taps on our smartphones, we can buy anything from a llama sweater to a smart fridge. But wait—behind this convenience lies a labyrinth of psychological tricks and high-tech wizardry designed to get us to part with our hard-earned cash. Buckle up as we dive into the world of sneaky shopping apps and their clever ways to make us spend more.
The Curious Blend of Tech and Mind Games
At the heart of shopping apps is a deep understanding of how our brains tick. Companies pour mountains of money into studying human behavior, crafting features that nudge us to spend more. These aren't just random add-ons; they're meticulously crafted based on psychological principles that would make Freud proud.
Scarcity and Urgency: Shopping apps love to throw in flash sales and limited-time offers, complete with countdown timers. This creates a sense of urgency, making us feel like if we don't buy that pink flamingo pool float right now, we'll miss out forever. Cue the FOMO (Fear of Missing Out).
Social Proof: Ever notice those glowing reviews and customer testimonials? They're there to make you think, "Well, if everyone else is buying this avocado slicer, I probably need it too!" Features like “Trending Now” or “Customers Also Bought” are like peer pressure for grown-ups.
The Decoy Effect: Picture this: A product is $50, but another one with a few extra bells and whistles is $70. Then, they throw in a third, slightly inferior option for $60. Suddenly, the $70 option seems like a steal! It’s like they’re saying, "Come on, you know you want the fancy one."
Personalization: Your Digital Shopping Buddy
Personalization is the secret sauce of modern e-commerce. By harnessing the power of data analytics and artificial intelligence (AI), shopping apps create experiences that feel like they were made just for you. This personalization is like having a personal shopper who knows your every whim.
Targeted Recommendations: Based on your past purchases and browsing history, apps suggest products that are right up your alley. These recommendations are hard to resist because they’re practically reading your mind.
Dynamic Pricing: Some apps are sneaky with their prices, adjusting them based on your buying habits, location, and even the time of day. This makes you feel like you’re getting a special deal, nudging you to hit that “Buy Now” button.
Customized Promotions: Notifications about sales, discounts, or special offers tailored to your shopping habits make you feel like a VIP. These promotions often create a sense of exclusivity, making you feel like the chosen one.
Gamification: Shopping Meets Playtime
Gamification is a fancy term for making shopping as fun as playing a game. By adding game-like elements, apps keep you hooked and spending. It’s like turning your shopping cart into a video game character that levels up with every purchase.
Loyalty Programs: Points, badges, and rewards systems make you feel like a kid in an arcade, trying to rack up as many tickets as possible. As you accumulate points, you’re driven to keep shopping to reach the next level or earn a reward.
Challenges and Quests: Some apps introduce challenges or quests where you can earn rewards or discounts. These add a layer of fun and competition to the shopping experience, making you want to shop more often.
Spin-the-Wheel and Scratch Cards: Features like these offer the thrill of possibly winning discounts or free products. The excitement of maybe hitting the jackpot can lead to increased spending as you keep trying your luck.
Making It Too Easy to Buy
One of the main strategies to get us to spend more is by making the buying process as smooth as butter. Shopping apps use several tactics to make purchasing quick and painless.
One-Click Purchases: Amazon’s “Buy Now with 1-Click” feature is the king of convenience, eliminating multiple steps in the checkout process. This ease leads to more impulsive buys, because who has time to click twice?
Stored Payment Information: By keeping your payment info saved, apps make it a breeze to complete transactions. This convenience removes a major barrier to buying, encouraging you to shop more frequently.
Subscription Models: Many apps offer subscription services that deliver products regularly. These models ensure a steady stream of revenue and foster loyalty, as you get used to receiving goodies on the regular.
The Social Media Shopping Spree
Social media platforms have jumped on the shopping bandwagon, making it seamless to go from browsing to buying. They know we spend hours scrolling through our feeds, and they’ve found a way to capitalize on that.
Shoppable Posts: Instagram, Facebook, and Pinterest let you buy products directly from posts. By linking product pages to images and videos, these platforms make it easy to buy items that catch your eye while you’re scrolling.
Influencer Collaborations: Influencers are the new-age salespeople, promoting products to their followers. Their endorsements drive significant traffic to shopping apps and websites, as we often trust their recommendations.
Live Shopping Events: Live-streaming shopping events where influencers or brand reps showcase products in real-time create an engaging and interactive experience. Viewers can ask questions and make purchases on the spot, blending entertainment with shopping.
Ethics and Awareness: The Serious Stuff
While these tech tricks and psychological tactics benefit businesses by boosting sales, they also raise some serious ethical questions. The constant nudge to spend more can lead to overconsumption and financial strain. It’s crucial for us to be aware of these strategies and practice mindful spending.
Transparency: Companies should be upfront about how they use consumer data and design their platforms. Clear communication about pricing strategies, data usage, and promotional tactics can help build trust and allow us to make informed decisions.
Financial Literacy: Promoting financial literacy can empower consumers to manage their spending better. Understanding the tactics used by shopping apps can help us recognize when we’re being influenced and make more conscious choices.
Regulation: There’s a growing call for regulation in the digital marketplace to protect consumers from manipulative practices. Ensuring ethical standards in app design and marketing can help create a healthier balance between business interests and consumer welfare.
Wrapping It Up
The fusion of technology and consumer psychology in shopping apps is a powerful tool for driving sales. Through personalization, gamification, seamless experiences, and social media integration, these platforms are designed to make us spend more. While these innovations offer convenience and entertainment, they also challenge us to manage our finances wisely. Awareness and ethical practices are key to navigating this digital shopping landscape, ensuring that technology enhances rather than exploits our shopping experience.
More reading on this topic:
Technology is making you spend more. Here’s how you can use it to save
Impulse-Buying: How Technology Is Making It Easier Than Ever to Spend Money
Shopping: how retailers are using the latest technology to boost in-store spending