🚫 The Real Economic Cost of a US TikTok Ban

📰 News Round-Up

• London’s black cab drivers launch multimillion pound lawsuit against Uber for improper licenses, which could see 10,500 drivers paid £25k each. (Sky)

• Apple iPhone sales fall in nearly all countries, as demand drops by over 10%. However the firm expects the integration of AI along with upcoming product launches to turn the figures around. (BBC)

• The U.K. will be the worst-performing G7 economy next year as high interest rates and restrictive fiscal policy hamper economic growth, the OECD has predicted.  (POLITICO)

• Getir, the Turkish-based on-demand delivery company has announced it is ending its UK expansion, with 1,500 job losses expected. The company will pull out of other major markets too, saying its non-Turkish revenue accounted for only 7% of its total turnover. (Sky)

• Octopus Energy has become Britain's largest domestic electricity supplier by customer numbers. However, British Gas remains the largest domestic gas supplier with a 27.8% market share followed by Octopus at 22.2% the data showed. (Reuters)

• After an ongoing dispute, TikTok will restore millions of songs to the platform after settling the issue with Universal Music Group over royalties. (BBC)

🚫 The Real Economic Cost Of A US TikTok Ban

As discussions about national security and data privacy intensify, TikTok finds itself at the centre of an increasingly likely U.S. ban. This week, ByteDance sources suggested a ban would be more likely than a sale, as the secret algorithms TikTok relies on are too crucial to the company’s overall operations.

If a ban is imposed, the economic and social repercussions would be significant.

Let’s look at some of the numbers…

Who Would Lose Out?

• Content Creators: Over 150 million monthly U.S. users spend an average of 58 minutes daily on TikTok consuming content. For tens of thousands of US creators who rely on the platform for revenue, a ban would cut off a vital income source.

• U.S. Employees: TikTok employs approximately 7,000 staff in the U.S. These jobs, which span from tech support to management, could be at risk if the operations are shut down.

• American Businesses and Advertisers: TikTok has become an indispensable marketing tool for over 5 million American businesses. TikTok is a home for Gen-Z and Millennials - demographics gradually moving away from platforms other platforms. TikTok Shop has half a million sellers in the US alone.

• Tourism and Travel Industries: Influencing more than just digital landscapes, TikTok has also impacted travel decisions, with 60% of users expressing interest in new destinations after viewing related content. This influence boosts tourism and local economies nationwide.

Economic Impact

• Revenue Contributions: The U.S. accounts for about 25% of TikTok’s overall revenues, a substantial portion of its global income.

• Economic Contributions: In 2023, TikTok reported contributing $24.2 billion to the U.S. economy and supporting 224,000 jobs, alongside paying $2 billion in taxes. A ban could potentially erase these benefits, costing the U.S. economy an estimated $6.8 billion in lost ad revenue and reduced organic traffic.

Why It Matters: The Underlining Issue

The potential TikTok ban extends beyond financial losses and job cuts, touching on broader global tech governance issues and geopolitical tension. At the heart of the matter are the government’s concerns over data privacy and information control, with the U.S. wary of the implications of allowing a Chinese company access to vast amounts of American user data.

If the U.S proceeded to ban TikTok, would it set a precedent for more countries to do the same? I wouldn’t rule it out.

👋 Meet The ‘Henrys’ - The Demographic Your Business Can’t Ignore

In the growing segment of luxury consumerism, an intriguing audience group is emerging, centred around a burgeoning demographic known as the 'Henrys' - High Earners, Not Rich Yet.

This group, identified by Deloitte’s Global Powers of Luxury Goods report, embodies a new and growing kind of affluence, marked not just by earnings but by potential. As the UK luxury market evolves, understanding and engaging with this demographic could be crucial for brands looking to secure a prosperous future.

Meet The Henrys:

1. Profile and Purchasing Power: The typical 'Henry' in the UK is around 43 years old, earning over £100,000 annually, with less than £1m in investable assets. They're not yet ultra-wealthy but have significant disposable income. This group is tech-savvy, predominantly shops online, and spends substantially on luxury goods - averaging around £86,000 per year on items ranging from high-end fashion to exclusive travel experiences.

2. Values and Preferences: 'Henrys' resonate with brands that exhibit authenticity, sustainability, and ethical practices. They're more likely to engage with companies that align with their personal beliefs, including environmental responsibility and fair labour practices. This consumer group prioritises personalised experiences over mere acquisition of goods, reflecting a shift towards meaningful consumption.

3. Digital Engagement: Successfully reaching 'Henrys' involves robust digital marketing strategies. This demographic is highly active on social media, uses digital channels for pre-purchase research, and values interactive and content-rich online experiences. Brands need to leverage digital storytelling, targeted social media campaigns, and influencer partnerships to effectively communicate and resonate with this group.

Why Brands Can't Afford to Overlook 'Henrys': 

Ignoring the 'Henry' demographic could mean missed opportunities for brands in the UK. As this group's financial prowess grows, their influence in the luxury market is expected to expand significantly. Brands that establish early and meaningful connections with 'Henrys' are better positioned to convert them into long-term, lucrative customers.

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📏 Core Web Vitals: Google Says They’re Not Important, Search Rankings Say Otherwise

Introduced by Google to enhance user experience, Core Web Vitals (CWV) is part of the broader Web Vitals, which measure the quality of user experience in terms of loading performance, interactivity, and visual stability of a website.

This is the PageSpeed Insights tool you can use to measure and track the CWV performance of your website.

While Google has clarified that these metrics have little influence on search rankings, more experts suggest that websites scoring well on these vitals enjoy better search rankings and user engagement. Who listens to what Google says about search anyway, right?

What Are The Three Pillars Of Core Web Vitals?

1. Largest Contentful Paint (LCP): Measures loading performance. To provide a good user experience, LCP should occur within 2.5 seconds of when a page first starts loading. It marks the point in the page load timeline when the main content has likely loaded—a fast LCP helps reassure the user that the page is useful.

2. First Input Delay (FID): Measures interactivity. For a good user experience, pages should have an FID of 100 milliseconds or less. This metric assesses how interactive a page is; the quicker a page responds to user input, the more responsive it is perceived to be.

3. Cumulative Layout Shift (CLS): Measures visual stability. To ensure a good user experience, pages should maintain a CLS of 0.1 or less. This metric helps quantify how often users experience unexpected layout shifts - such as when a user goes to click on an element and the page moves around.

What Are The Other Performance Metrics?

1. Time to First Byte (TTFB): This measures the time it takes for a user's browser to receive the first byte of page content from the server. A lower TTFB indicates a faster server response time, which is crucial for a quick page load.

2. First Contentful Paint (FCP): This metric measures the time from when the page starts loading to when any part of the page's content is rendered on the screen. FCP is important as it gives the user a visual indication that the page is loading.

3. Speed Index: The Speed Index measures how quickly the contents of a page are visibly populated. It is particularly useful for identifying how quickly a page delivers the visual experience to users.

4. Total Blocking Time (TBT): This measures the total amount of time that a page is blocked from responding to user input, such as mouse clicks or keyboard presses. It’s closely related to FID but measures blocking time during the entire loading process.

5. Time to Interactive (TTI): TTI measures the time it takes for a page to become fully interactive, including the appearance of interactive elements. This metric helps understand when a user can fully interact with a page without experiencing delays.

What Do These Scores Mean?

• Good Scores: Indicate a seamless and stable user experience, likely leading to higher engagement and conversion rates.

• Needs Improvement: Signal areas where users might be experiencing delays or instability, potentially harming engagement.

• Poor Scores: Often correlate with high bounce rates and low conversion rates, indicating significant user experience issues.

Why Core Web Vitals Matter

Your website’s Core Web Vitals can dramatically improve the user experience. Websites that load quickly, respond promptly, and display content without shifting layout are more likely to retain visitors, encouraging them to interact more deeply. This not only boosts organic search rankings but can also lead to increased conversions and sales.

Investing in improving CWV is not just about appeasing search engines; it’s about committing to a superior user experience that directly translates into business success. Remember - a good user experience will help convert visitors into customers and could be the difference between you and your competition on the search page.