Calling It “AI” Might Be Hurting Your Sales

Don’t believe the hype. Labeling a product as “AI-powered” might actually end up hurting your sales.

This from some new research published in the Journal of Hospitality Marketing & Management.

Researchers showed participants the same products, but with different descriptions. One was called “high tech” and the other used the term “artificial intelligence.” In every case, people were less likely to buy the product that mentioned AI.

Why the Hesitation?

The study looked at how people viewed products with different levels of risk.

For example, household appliances with AI were seen as “low risk,” while self-driving cars and AI-powered medical diagnosis services were considered “high risk.” In both groups, most people didn't want to buy the products.

The study says this is because people hold AI to a higher standard and expect it to be perfect. When AI makes mistakes, trust is quickly lost.

Trust Issues

There are two kinds of trust that play a role in people's perception of AI.

One is cognitive trust, which is about expecting AI to be free from human error.

The other is emotional trust, which is based on limited knowledge and understanding of AI.

People's fear of the unknown and pop culture portrayals of AI as villains also contribute to mistrust. Companies' lack of transparency about how AI handles personal data doesn't help.

The researchers say to ease fears, marketers and copywriters should explain how AI can help, rather than just using it as a buzzword.

Amazon to Let Sellers Offer No-Return Refunds

Amazon just made returns easier for customers and cheaper for sellers. The company now lets sellers offer refunds without asking customers to send back the item. This new program is called Fulfillment by Amazon Returnless Resolutions.

How it Works

Sellers using Amazon's fulfillment services can use the program. It cuts out the hassle and cost of handling returns. Customers get to keep the item and still get a refund. But not all products are eligible. Some items, like hazardous goods or those that cost over $75, can't be part of the program.

Who Can Use It

Only customers and sellers in good standing with Amazon can use Returnless Resolutions. If a customer has a history of abusing returns, they might not be eligible. In that case, the item would still need to be sent back to Amazon.

The Goal

Amazon says it made this change to make returns more convenient for customers and cheaper for sellers. This program could be especially helpful for international sellers and those with low-cost items. Amazon isn't charging extra for the program, and it can help sellers avoid other returns-related fees.

Missing Google Audience Recommendations Are a Bug

You may have noticed that Google has removed audience recommendations from the Insights tab in its ads manager — preventing marketers from using automated suggestions for targeting specific audiences.

But don’t worry, this is a bug.

Industry blogs yesterday reported the absence of this feature, which meant advertisers would have to manually pick their audience segments, which would take more time.

But Google says it should be back soon.

Reddit Search Ads Are (Probably) Coming

Reddit just hired a former Google executive to lead its ad product team. Jyoti Vaidee spent 11 years at Google, working on product listing ads and dynamic shopping ads. This move suggests Reddit is serious about building a search ads business.

High-Intent Users

Reddit's users often search for answers on the platform, and the company sees this as a lucrative opportunity for advertisers. CEO Steve Huffman highlighted the potential for serving ads against search results, noting that users have explicit intentions when searching.

Targeting and Shifting Strategy

Reddit is gaining momentum with contextual keyword targeting, which lets advertisers link specific keywords to their brands or products.

Huffman has been open about the company's intentions to build a search ads business. The company is hiring engineers and product managers with search experience, and plans to start testing new search result pages powered by AI later this year.

TikTok Still Gaining EU Users, Despite Slowdown

TikTok is still adding users in Europe, despite reports of slowing growth worldwide. The app now reports it has 150 million monthly active users in the EU, up from 134 million last August and 142 million in February.

European Focus

Europe has become more important for TikTok as it faces a possible ban in the US. The app's Chinese owners are fighting a sell-off bill in court, but if it passes, TikTok could lose 170 million US users. To prepare, TikTok is launching new EU programs, including in-stream shopping and creator incentives.

Global Reach

TikTok has a billion active users worldwide, with its main markets being the US, Europe, Indonesia, Brazil, Mexico, and Vietnam. However, it's banned in India, where other social apps are growing fast. Losing the US market would be a major blow, so TikTok is trying to soften the impact by focusing on other regions.

Website Load Times: 8 Seconds or Else

People won't wait around for your website to load.

And new data from Forbes Advisor found that these days users will give up after just eight seconds on average.

The Waiting Game

38% will wait between 7 and 10 seconds for a site to load.

24% will wait more than 11 seconds.

The Consequences

A slow-loading website can be costly. Nearly half of users, 48%, will move on to the next search result if a site takes too long to load. This is especially true for lesser-known brands, as users are more likely to be patient with well-known brands like Amazon.

Google's Take

Google has long emphasized the importance of fast load times. Since 2010, the company has recommended that sites load in under 2 seconds. In 2017, Google found that the likelihood of users bouncing from a site increases by 32% when load times jump from 1 second to 3 seconds.

Roblox and YouTube Still Strong With Kids

Kids are getting online at younger ages. To understand what apps they use, Qustodio surveyed 180,000 US families with kids aged 7-18. The results show that among 7-9 year olds, Roblox and YouTube are the clear winners.

Surprising Apps

But some also use X and Reddit, which could expose them to explicit content. The study says it's likely they're not actively using these sites on a daily basis, but rather using them to get information on games. Parents might not know they have these installed or don't think to block them.

Teens' Favorites

As kids get older, their app preferences change. Among 10-12 year olds, Roblox and YouTube are still popular. But social apps like TikTok and Snapchat start to gain traction. For older teens (16-18), social apps become even more popular.