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It’s National 🌸 Primrose Day, Reader! Spring is coming!

In today’s edition:

• Today's 👉 Tip of the Day is for AI

• 🔑 4 keys to improve conversions

• 🤳 Video ads on X/Twitter go vertical

• 📣 Additional industry news from Meta and TikTok

Want to save precious time and fees associated with contract negotiations? You’ll always need a human attorney to sign off on contracts, but artificial intelligence (AI) can help with initial inspections.

Use AI to Review NDAs and Other Agreements 

Simply upload the document to ChatGPT or Claude and use plain language to ask targeted questions to identify any areas that may be problematic or need adjustment to protect your business interests.

• Is this agreement bilateral and fair to both parties?

• Does the confidentiality clause fully protect my interests?

• Is the length of the agreement (e.g., eight years) excessively long?

Based on its analysis, AI will flag provisions that could pose problems if you were to sign. You can even ask your AI to “rewrite section X to be more bilateral.”

Today's tip is inspired by Christopher Penn, a featured speaker at Social Media Marketing World.

This Is It, Reader!

You have only 13 days to grab your All-Access ticket to Social Media Marketing World 2024—taking place February 18–20 in Sunny San Diego. 

Are you ready to join thousands of marketers and discover strategies that will change the course of your business in 2024 and beyond?  

It’s time to make a choice. Will you be there?

"It's all the little details this conference brings to create fun and excitement that elevate it from great to spectacular," said Jennifer Morton.

I don't want to miss this event!

Generate Higher Engagement and Conversion Rates With Behavioral Economics in Your Marketing

Behavioral economics combines concepts from psychology and economics to better understand how humans actually make decisions, which often involve mental shortcuts and irrational thinking. 

By utilizing subtle aspects of the key principles from behavioral economics—framing, priming, anchoring, and relativity— marketers exert great influence on decisions due to quirks in human psychology. 

While at times counterintuitive, applying the following key behavioral economics concepts allows your marketing campaigns and messaging to be structured around how customers think.

Framing

Framing refers to how information is positioned and the exact words used to describe something. Simply reframing statements can significantly impact interpretation and decision making. For example:

Changing "if" to "when" statements. Instead of "If you have any questions, contact us," use "When you have questions, here is how to reach us." This implies moving to the next step.

Reframing from "anyone" to "everyone." Like stating "This special offer is available for anyone interested" versus "This exclusive deal is available to everyone who signs up this week." This taps into our human desire to be part of a group.

Ending with a question instead of a statement. Asking "Ready to get started?" leads to more responses than declaring "Contact us when you're ready." Questions feel open-ended and compel engagement.

Priming

Priming refers to the idea that introducing concepts and experiences, even briefly, before a decision is made can unconsciously impact what option is selected. This is why sensory details are so important in marketing content.

For example, real estate listings emphasizing images of family gatherings and laughter can prime buyers to picture themselves experiencing joy in the home. An email with a smiling photo of a group attending an event can spur readers to imagine enjoying a similarly happy experience. These primes anchor into emotions that later affect decision making, even if the buyer doesn't consciously realize it.

Anchoring

Anchoring means latching on to initial numeric values when making a guess or estimate. Since making calculations from scratch is mentally taxing, we typically adjust guesses up or down from whatever anchor we start with.

Savvy marketers utilize this tendency by providing a numeric anchor, even an extreme one, to drive decisions. For example, an ad suggesting to buy 18 candy bars may lead people to purchase 6, when without any anchor they may have only purchased 2. The anchor, even if too high for practicality, creates a new baseline that people adjust down from according to their means.

Relativity

Relativity describes how something seems good or bad depending on what we compare it to. We don't analyze options in a vacuum—initial points of reference change our perspective.

Software companies employ this tactic when pricing plans. They display the monthly charge for basic, pro, and premium options. Even though the middle tier may be objectively expensive, it seems more reasonable in context next to the priciest premium plan. Shoppers also perceive middle-shelf liquor as higher quality than bottom-shelf options purely due to surrounding contextual cues. 

Pay attention to relativity by always leading with the most expensive offering first. This establishes a high anchor that makes lower desired price points appear far more reasonable and compelling in comparison.

Today's advice is provided with insights from Melina Palmer.

Wondering How AI Fits With Your Business?

If you work for an agency or a brand, we've got something you won't want to miss! Are you struggling trying to figure out how AI will work in your business? We have speakers at Social Media Marketing World who are experts in AI from a brand and agency perspective.

A sampling of our AI speakers include Paul Roetzer, founder of Marketing AI Institute; Chris Penn, author of AI For Marketers; and Katie Robbert, who will present on getting your business AI ready.

Check out the speaker lineup.

🗞 Meta Financials: Meta's 4th quarter and full-year report shows improved ad impressions and price per ad. Fourth-quarter impressions rose by 21%, prices rose by 2%, yearly impressions rose by 18%, and prices rose by 9%. The report also details a rise in users across several segments and announces a first-ever quarterly dividend. Source: PR Newswire

🗞 TikTok Studios to Open: TikTok is looking to expand into live-stream commerce by opening dedicated streaming studios in Los Angeles, according to The Information. At these studios, creators will be able to live-stream content and sell products in a more professional environment. By opening live-stream studios, TikTok aims to facilitate more options for creators to sell merchandise related to viral trends, similar to how TikTok has already created and sold custom products based on platform crazes. TikTok plans to test out more shopping initiatives in 2024, like food delivery and using AI characters as round-the-clock live-stream hosts. Source: Social Media Today

🗞 Vertical Video Ads on X/Twitter: X/Twitter announced it is expanding Vertical Video Ads globally to all advertisers. With full-screen viewability and sound on by default, a brand's message takes center stage, and advertisers can also drive website traffic with a call-to-action button. Starting today in the United States, advertisers can buy pre-screened, brand-suitable vertical video inventory through X's expanded partnership with Integral Ad Science (IAS). The IAS brand safety and suitability measurement product has now expanded to Australia, Canada, New Zealand, and the United Kingdom. Source: X/Twitter

Did You Know?

British sailors ate limes for vitamin C to avoid scurvy. But vikings avoided scurvy by eating… sauerkraut!