> ## Content Index > Fetch the complete content index at: https://www.nearmedia.co/llms.txt > Use this file to discover other available public pages before exploring further. # Tik and Mortar, Local Ad Subsidy, Worker (Dis)Engagement - URL: https://www.nearmedia.co/tik-and-mortar-local-ad-subsidy-layoffs-lower-productivity/ - Published: 2023-01-27T19:33:50.000Z - Updated: 2023-01-27T19:33:50.000Z - Author: Greg Sterling - Tags: News ### Subsidize Local Ads to Save News A new coalition of groups called [Rebuild Local News](https://www.rebuildlocalnews.org/mission/?ref=nearmedia.co) has proposed a dramatic tax-based [solution](https://www.rebuildlocalnews.org/solutions/our-plan/?ref=nearmedia.co) to the problem of collapsing local journalism, which is having significant social and political [consequences](https://www.rebuildlocalnews.org/research-on-local-news/?ref=nearmedia.co). According to the Columbia Journalism Review, "on average, two newspapers are shuttering each week." Among other recommendations, the group proposes a $250 tax credit for consumers to subscribe/donate to local news, a tax credit for SMBs to advertise in local media and a credit for hiring/retention of journalists. The advertising tax credit would provide up to $5,000 "in the first year and up to $2,500 in each of the subsequent four years to spend on advertising with local newspapers and local media." Any business with fewer than 1K employees, which is 99%+, would be eligible. Local media is defined as publishers with a majority local audience. ![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2023/01/absolutvision-WYd_PkCa1BY-unsplash.jpg) Source: [AbsolutVision](https://unsplash.com/@freegraphictoday?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)/[Unsplash](https://unsplash.com/s/photos/newspapers?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText) **Our take:** - This is a better plan than asking Google and Facebook to subsidize news, as governments around the world have. - It's unclear how much Congressional support exists for this initiative, though the bill has bi-partisan support and is content-neutral. - A $5K tax credit for local ads would shake up local digital advertising. But publishers would need to focus "primarily" on local news. ### TikTok Driving Offline Sales To someone who's been arguing since 1999 that the internet mostly generates offline sales (now it's obvious), it's no surprise that TikTok can have [a major impact on product sales in local stores](https://www.modernretail.co/marketing/tiktok-is-driving-an-offline-lift-in-sales-for-some-brands/?ref=nearmedia.co). We're now in a fully hybridized shopping environment where online research/inspiration precedes offline buying most (75%+) of the time. Store visits are also a frequent prelude to e-commerce sales. As one example, local stores drive online traffic; Shopify [points out](https://www.shopify.com/plus/commerce-trends?ref=nearmedia.co), "brands get on average 37% more web traffic the quarter after opening a new physical store." Offline experiences build brand trust, which is [critical to online conversions](https://www.digitalcommerce360.com/2023/01/24/consumers-in-control-of-conversion/?ref=nearmedia.co). Retailers face a daunting task, delivering against growing "hybrid consumer" expectations. As consumer [spending slows](https://www.axios.com/2023/01/27/americans-cut-spending-boost-savings?ref=nearmedia.co), they still want engaging stores, great service and a digital experience that's (quasi)personalized. Yet retail hiring and retention [challenges](https://www.retailcustomerexperience.com/news/walmart-boosting-hourly-pay/?ref=nearmedia.co) persist. Can tech and AI step in and deliver great consumer experiences in a cost-effective way for brands? ![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2023/01/bruno-kelzer-LvySG1hvuzI-unsplash.jpg) Source: [Bruno Kelzer](https://unsplash.com/fr/@bruno%5Fkelzer?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText)/[Unsplash](https://unsplash.com/s/photos/shopping?utm%5Fsource=unsplash&utm%5Fmedium=referral&utm%5Fcontent=creditCopyText) **Our take:** - Of course, the answer is "yes and no." AI will increasingly be deployed across large retail organizations. But tech [can't really replace humans](https://www.cnn.com/2022/07/09/business/self-checkout-retail/index.html?ref=nearmedia.co). - Service and trust, which involve humans, are keys to customer loyalty and even to first party data collection – now mandatory. - Many retailers see tech as a way to push out costs. But they should instead focus on how tech can improve the customer experience. ### Botched Layoffs = Productivity Loss As we've [discussed](https://www.nearmedia.co/google-ai-store-inventory-perplexity-ai-were-130k-layoffs-needed/), there are likely two primary reasons the tech industry has laid off so many people: 1) to appease investors and 2) social contagion – others are doing it. Another may be the [desire to reassert power over employees](https://www.nytimes.com/2022/12/16/technology/elon-musk-management-style.html?ref=nearmedia.co), who had "grown a little too comfortable" during the pandemic. One of the common CEO laments preceding the layoffs was [declining employee productivity](https://www.cnbc.com/2022/12/16/marc-benioff-says-newer-salesforce-employees-are-less-productive.html?ref=nearmedia.co), which has some basis in fact. But poorly conducted layoffs [don't improve productivity](https://news.stanford.edu/2022/12/05/explains-recent-tech-layoffs-worried/?ref=nearmedia.co) and they have serious consequences both for the terminated and the workplace. You often get a more disengaged workforce that may be distracted and ultimately less productive. Currently, only 32% of the US workforce is "engaged" [according to Gallup](https://www.gallup.com/workplace/468233/employee-engagement-needs-rebound-2023.aspx?ref=nearmedia.co), while 18% is "actively disengaged" – people acting out. What this means is that two-thirds of employees in the US are effectively not working in a committed way. This is a problem for individual companies and the US economy as a whole. And it's not really about "low performers." ![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2023/01/Screen-Shot-2023-01-27-at-9.32.31-AM.png) Source: Gallup **Our take:** - Layoffs happen, but they can be handled transparently and ethically to minimize fallout. Not what happened in some of these cases. - Better managed companies, with more employee loyalty are more productive. Yet most companies treat most employees as "costs." - Management and corporate behavior are the keys to employee engagement. It's almost a cliche to argue employees are a company's best marketing channel. ## Recent Analysis - **GBP Forum: Support Avoidance Strategy**, [by Mike Blumenthal](https://www.nearmedia.co/the-google-business-profile-forum-shows-how-google-externalizes-costs/). ## Short Takes - **Yelp:** New [SMB growth](https://www.yelpeconomicaverage.com/business-openings-report-2022.html?ref=nearmedia.co) outstrips pre-pandemic period. - **Cars for Sale**: Auto dealer inventory [now appearing in GBPs](https://searchengineland.com/google-rolling-out-cars-for-sale-in-google-business-profiles-392234?ref=nearmedia.co). - Krystal Taing's [getting started guide](https://searchengineland.com/apple-business-connect-starter-guide-392128?ref=nearmedia.co) to **Apple Business Content**. - Amid 70% ad decline, **Twitter** launches [search ads in beta](https://twitter.com/TwitterBusiness/status/1618060427224838144??ref=nearmedia.co). - **Neeva** [adds "citation cards"](https://twitter.com/ramaswmysridhar/status/1618606127222263808??ref=nearmedia.co) (more detail/sources) to AI search results. - BuzzFeed [to start using](https://www.theverge.com/2023/1/26/23572834/buzzfeed-using-ai-tools-personalize-generate-content-openai?ref=nearmedia.co) **ChatGPT** to personalize/create content. - **Smartphone shipments** [down](https://www.idc.com/getdoc.jsp?containerId=prUS50146623&ref=nearmedia.co) \~20% in Q4, Apple slightly less. - Grocery stores [embracing](https://www.retaildive.com/news/grocers-weigh-scan-and-go-checkout/641170/?ref=nearmedia.co) smartphone "**scan and go**" DIY checkout. - Surviving Google **Area 120** [effort](https://9to5google.com/2023/01/26/google-area-120-liist/?ref=nearmedia.co): a "Gen Z consumer product." - The state of **VR hardware**: [why it's not where we expected](https://www.matthewball.vc/all/why-vrar-gets-farther-away-as-it-comes-into-focus?ref=nearmedia.co) by now. - **Meta ad targeting** starting to recover with benefit of AI ([WSJ](https://www.wsj.com/articles/meta-ai-facebook-instagram-reels-ad-targeting-11674829286??ref=nearmedia.co)). - **Facebook's** reinstatement of Trump [may not matter](https://www.theatlantic.com/technology/archive/2023/01/meta-reinstates-trump-facebook-instagram-accounts-ban/672845/?ref=nearmedia.co). - **Yandex** algorithm leaks, [suggests Google ranking factors](https://twitter.com/alex%5Fburaks/status/1618988134850785280?s=12&t=JyDbSfrkqPc23jzh5RcGog&ref=nearmedia.co). Listen to our [latest podcast](https://www.nearmedia.co/memo/). [![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2021/02/near_memo_banner.png)](https://nearmedia.co/memo?ref=nearmedia.co) How can we make this better? Email [us](mailto:gsterling@nearmedia.co) with suggestions and recommendations.