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AI recommendation vs. user subscription: Which one’s better?

If the goal is to convert ads to sales, companies should strive for high conversion rates. Conversely, if the goal is to drive traffic and generate interest, companies should strive for high click-through rates.

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Researchers from Lehigh University, University of Hong Kong, and Wuhan University published a new Journal of Marketing article that examines in-feed advertising’s performance across subscription versus AI recommended news feeds.

The study, forthcoming in the Journal of Marketing, is titled “Tales of Two Channels: Digital Advertising Performance Between AI Recommendation and User Subscription Channels” and is authored by Beibei Dong, Mengzhou Zhuang, Eric (Er) Fang, and Minxue Huang.

How do you get news on a daily basis? Subscribe to topics you are interested in? Or let artificial intelligence (AI) algorithms recommend news to you? Platforms like Google News, Twitter, and TikTok offer two distinct ways of curating organic content: through user subscriptions and via AI algorithms.

If, for example, you log into Twitter (now known as “X”) and open the “Following” tab, you will encounter posts from the sources you have subscribed to. Or if you open the “For You” tab, you will see content recommended by AI algorithms based on what AI predicts you are interested in viewing.

These different methods of delivering content provide distinct contexts for in-feed ads. However, little is known about how the performance of in-feed ads compares between subscription and AI-recommendation channels.

In-feed ads blend into your news feed, matching the format and style of content while clearly indicating their sponsored status. These ads can take various forms, from text-based ads on Apple News to eye-catching images on Instagram and engaging videos on TikTok. In-feed advertising has seen significant growth, with 58.3% of U.S. digital display spending allocated to these ads in 2018.

The authors explain that “in-feed ads ideally fit seamlessly into the organic content stream and their effectiveness is determined by both the ads’ attributes and where they are placed. We examine how the channel affects ad effectiveness and whether the effects also depend on ad attributes.”

They consider two core digital ad attributes:

  • Ad appeal that describes key content of the ad, which can either be informational (focusing on factual product information) or emotional (emphasizing the product experience through subtle feelings)
  • An ad link that leads to consumer action, which can be direct (e.g., “buy now”) or indirect (e.g., “click for more information”)

Channel Difference and Consumer Engagement

The manner in which content is delivered (through subscription or recommendation) has a big impact on how customers engage with that content. This, in turn, can determine whether they view in-feed ads as intrusive and if they decide to click on the ads and make purchases.

“We find that subscription and recommendation channels have two key differences: source credibility and content control. Subscription channels have greater source credibility and more content control because consumers can actively choose their sources, motivating them to exert greater cognitive effort in processing content. In contrast, AI-recommended content may be perceived as less credible and reliance on algorithms reduces consumers’ motivation to exert cognitive effort, leading to lower engagement,” the researchers claim.

Ad Intrusiveness and Ad Performance

In the subscription channel, high customer engagement with the organic content makes readers more goal-oriented, and they thus end up perceiving ads as more annoying and interruptive. However, customers who do click on an ad, despite the annoyance, show stronger interest and a higher conversion rate. By contrast, in the recommendation channel, customers are in an exploratory state and thus perceive ads as less intrusive. Consequently, customers are more inclined to click on ads in the recommendation channel.

The study uses two ad performance metrics for analysis: click-through rate (CTR), the ratio of clicks to exposures, and the conversion rate (CR), the ratio of purchases to clicks. In the subscription channel, higher ad intrusiveness leads to lower CTRs but higher CRs, while in the recommendation channel, lower ad intrusiveness may generate higher CTRs, but the proportion of genuine interest and subsequent purchases is smaller. “In addressing which channel has better ad performance, we show that the recommendation channel underperforms the subscription channel in converting sales, but excels at eliciting clicks,” says the research team.

Takeaways for CMOs

The study offers key lessons for Chief Marketing Officers:

  • If the goal is to convert ads to sales, companies should strive for high conversion rates. Conversely, if the goal is to drive traffic and generate interest, companies should strive for high click-through rates.
  • If advertisers’ goal is to maximize click-through rates, the optimal strategy is to release emotional ads with indirect links for both the subscription channel and the recommendation channel. Conversely, if advertisers want to maximize conversion rates, informational ads with indirect links work best for the subscription channel while emotional ads with indirect links are the best for the recommendation channel.
  • For recommendation channels, informational ads with direct links have the largest increase in click-through rates and the largest decrease in conversion rates. By contrast, emotional ads with indirect links have the largest decrease in click-through rates and the largest increase in conversion rates.
Photo by charlesdeluvio from Unsplash.com

BizWiz

Focus on service: Lessons from Caltex station employees

All work—regardless of the profession or industry—serves a deeper purpose in society for as long as it is done with integrity and passion.

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All work—regardless of the profession or industry—serves a deeper purpose in society for as long as it is done with integrity and passion.

Caltex Philippines honors the honest work of its station customer service representatives nationwide, who have committed each day to serving Filipino motorists with precision and care.

Alkindar J. Amil

For Alkindar J. Amil, his job at a Caltex station in Zamboanga City is more than just a routine –but a commitment to continue his father’s legacy of humble service.

Back in 2018, Alkindar began working as a customer service representative (CSR) after his contract at a government agency had expired. This career shift allowed him to walk in his late father’s footsteps, a pedicab driver who had served their community for 20 years. “Nagturo siya sa akin na walang maliit na trabaho, basta marangal. (He taught me that no job is too small, as long as it is honorable),” he reflected.

As the station’s supervisor, Alkindar wakes up at the crack of dawn to head to the station. There, he endures the intense heat and long hours on foot, all while serving motorists with a genuine smile. When asked how he gets through these challenges, he answered that he gets by with the help of his late father’s positive mindset.

Luckily, these efforts do not go unnoticed, as Alkindar has had customers thank him for his selfless service. In fact, he had recently gone viral for explaining fuel price fluctuations to motorists, with many thanking him for educating viewers on the complex issue. “May mga customer na nagsabi sa akin, ‘Hindi basehan ang diploma, kundi diskarte sa buhay ang mahalaga para matulungan mo ang iyong pamilya.’ Simpleng salita lang ito pero tagos sa puso at sobrang makabuluhan. (Some customers have told me, ‘A diploma isn’t the basis for success, as what truly matters is your resourcefulness to help your family.’ It’s a simple statement, but it really touches the heart.)”

Now in his eighth year at Caltex, Alkindar wants to pass down the values of humility and perseverance to his own child –just as his own father taught him. “Nais kong maituro sa aking anak na huwag maging mapagmataas. Dapat laging mapagpasensiya at dapat pantay-pantay ang tingin mo sa iyong kapwa. (I want to teach my child not to be arrogant. They should always be patient and treat everyone as their equal.)”

Henry John T. Abonero

Despite working in Caltex for less than a year, CSR Henry John T. Abonero has used his experience to serve motorists south of the Metro. He began working as a trainee at Caltex Magallanes in February 2026 before getting absorbed as an employee two weeks later.

Henry’s purpose of working at Caltex is simple: he wants to serve motorists by assisting them in refueling and providing reliable customer service. However, he admits the job can be quite taxing, especially when dealing with customers in a rush.

When Henry must deal with an impatient motorist, he always takes a deep breath and keeps his cool. That way, he can calmly and efficiently help his customers find a solution to their needs. “Sa trabahong ito, kailangang marunong kang makipag-usap nang maayos at maging mahinahon sa salita. (In this kind of work, it’s important to communicate clearly and be careful with your words.)”

It is through simple acts like this that Henry finds pride in wearing his Caltex uniform. After all, his uniform acts like a badge of honor for his daily service. “Araw-araw kong pinagmamalaki ang aking uniporme dahil simbolo ito ng aming tapat at totoong serbisyo. Ang importante lang dito ay ginagawa mo nang tama ang iyong trabaho nang walang naaabalang ibang tao. (I take pride in my uniform every day because it symbolizes our honest and genuine service. What matters most is that you do your job properly without inconveniencing others.)”

Joseph Nacion

What began for Joseph as a job to support his family soon became an opportunity to exemplify Caltex’s brand of customer service. As one of the CSRs in Caltex’s flagship station at Bonifacio Global City, Joseph always goes the extra mile in his work—from meticulously checking the accuracy of each tank refill, cleaning the station’s premises, to producing accurate sales reports at the end of the day.

Despite the heavy workload, Joseph quickly learned to be an all-rounder in his job by closely following standard procedures, staying focused during his shift, and being open to his supervisor’s feedback. His efforts have paid off, with some customers recognizing his keen eye for detail.

For instance, Joseph recalled a time when a customer was rushing to refuel their car. However, he noticed that their requested amount did not match the amount indicated on their vehicle’s sticker and patiently explained why this could cause misfueling.

He recalled, “Noong nangyari ito, kinausap ko siya nang maayos at ipinaliwanag ang risk ng misfueling. Medyo naiinip siya noong una, pero kalaunan na-realize niya ang mali at nagpasalamat pa. (During this moment, I patiently explained to them about how this could cause misfueling. Although they were initially a bit impatient, they soon realized why I pushed back on their request and even thanked me for it.)”

In the end, Joseph tells motorists that he, along with his fellow CSRs, will always be there to help them drive safer and longer journeys. He added, “Hinihikayat ko rin po silang maging patient at understanding lalo na kapag busy hours, dahil ginagawa po namin ang best namin para mas mapagsilbihan sila. (I would also like to request that customers remain patient and understanding with us, especially during our peak hours, as we are doing our best to serve them in any way we can.)”

Alkindar, Henry, and Joseph are among the thousands of Filipino CSRs who remained loyal to Caltex’s mission of bringing high-quality fuels and world-class services to motorists nationwide.

Chevron Philippines Inc. General Manager and Country Chairman Pongtorn “Bon” Tangmanuswong said, “We are incredibly grateful to Alkindar and Henry and all our customer service representatives who have made refueling a more valuable experience for our customers. Thanks to them, we have more people who exemplify Caltex’s values and mission to bring quality, affordable, clean energy to areas where it is needed the most.”

He added, “More importantly, we will continue empowering our people by recognizing their wins, supporting their efforts to innovate each station’s services, and providing them with much-needed growth opportunities.”

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BizWiz

Empowering the next wave of Filipino freelancers in Pampanga

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At a time of rising costs and economic uncertainty, freelancing has emerged as a growing source of opportunity. As more Filipinos turn to freelancing as a viable long-term career, many are adopting digital tools like the GCash Virtual US Account to simplify cross-border payments.

Recognizing this, the GCash Freelancer Connect, a series of community events designed to bring freelancers based in different cities in the country, made its way to Pampanga for its first regional leg. Attendees gathered to learn from speakers KD Creatives and Dani Jacobe, who led practical sessions on how to diversify income streams, charge more competitive prices, and build greater financial confidence with the support of tools like GCash. Here are key insights shared during the event:

1. Strong relationships create steady opportunities

With more Filipinos entering the freelancing industry, standing out has become a bigger challenge. For Dani Jacobe, building meaningful connections – and knowing how to communicate value clearly – makes all the difference.

“Your goal is not just to find one client. Your goal is to build a system that helps you keep finding and serving clients,” she shared.

What she has learned over the years is that outreach should go beyond simply introducing one’s services. Freelancers should learn to identify problems, offer clear solutions, and create opportunities for intentional conversations from the very beginning.

“Your skill becomes more valuable when you connect it to a specific business need,” she added.

2. Be confident in your worth

For Kyla Dizon, the journey to becoming “KD Creatives” didn’t happen overnight. Before building her online community around content creation and offering digital guides and advice through her platform, she experienced self-doubt and pressure as a young freelancer. One area where that hit hard was in communicating her value to potential clients.

“The truth is, a lot of freelancers are incredibly talented, but still undercharge because they haven’t fully recognized the value of what they bring to the table,” she explained.

The turning point came when she stopped pricing from a place of fear or being scared that clients would walk away because she’d be too expensive and instead, began pricing from a place of confidence. But that confidence, Kyla noted, came only once she fully embraced her personal brand as a freelancer.

“Now, I approach pricing differently — not based on fear, but on the value and experience I know I can deliver,” she explained. During the Freelancer Connect, she urged attendees to use a pricing matrix, which she has made available online, to accurately determine how much they should charge clients for the services they offer.

3. Receiving payments should not feel complicated

Another common challenge freelancers face is receiving payments, especially from overseas clients, where the process is often inefficient. To address this, GCash has introduced the Virtual US Account, a feature designed to make receiving USD payments easier.

Users can now receive USD transfers directly from US-based clients using their own routing and account numbers, similar to a traditional US bank, within the GCash app. This feature helps freelancers avoid unnecessary deductions, hidden fees, and lengthy transfer processes, while also ensuring competitive forex rates. Users can convert their USD to PHP when it is most favorable for them – they have full control of when they want to withdraw it into their GCash e-wallet.

“We want to ensure that freelancers in the Philippines can receive and manage their money in the most convenient way possible and in a manner that ensures they don’t lose so much of their hard-earned cash. Once in your Virtual US Account, you can access and manage your earnings instantly inside the GCash app – whether that’s converting to PHP, paying bills, buying load, or even growing your wealth through our financial services,” shared Sophia Sison, Product Manager under the International Business Group at GCash.

Create your Virtual US Account today

As freelancing continues to grow across the country, GCash hopes initiatives like the Freelancer Connect can help create more spaces where freelancers feel supported — not just financially, but as a community navigating a rapidly changing world of work together.

Creating your Virtual US Account is easy:

  1. Open the GCash app – Tap US Accounts in the Explore the App section
  2. Tap Continue and verify your information
  3. Complete your account creation

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BizWiz

3 Lessons from women who successfully built careers in freelancing

Freelancers face inconsistent income, unpredictable clients, and little guidance on how to navigate it all. For longtime freelancers Mia Juan and Dana Novales, building a career online has meant learning these lessons in real time.

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 Earning through freelance work has never been more accessible. With a stable internet connection and numerous job platforms, opportunities can come from anywhere – and for many Filipino women, they do. A 2020 study by the Philippine Institute for Development Studies (PIDS) showed that an increasing number of women are engaging in online work because it lets them earn while balancing home responsibilities.

But access doesn’t always mean ease. Freelancers face inconsistent income, unpredictable clients, and little guidance on how to navigate it all. For longtime freelancers Mia Juan and Dana Novales, building a career online has meant learning these lessons in real time. With more women entering the freelancing field, they share three lessons they’ve learned:

1. Build real relationships, not just transactions.

Freelancing can make work feel transactional. You get assigned a task, submit the work, get paid, and then move on. But the most successful freelancers don’t treat work that way. In such an unpredictable field, being remembered matters.

According to Dana, “Real relationships are built on service, not strategy.” Every “Well done!” or “Good work!” can open doors to new opportunities, so don’t waste them. Instead, take an extra step to establish a real relationship with your clients: check in, understand what they need, and find ways to make the process easy for them.

2. Set up systems that work for you.

Handling different clients with different ways of working can get overwhelming fast. For Mia, having systems for your workflow simply makes this easier and helps manage client expectations.

That can be as simple as being clear about what services you offer. “It’s basically saying this is what I can offer and setting a clear boundary of what you do not do. That way, there is no miscommunication of responsibilities, which happens commonly in freelancing work,” she shares. It also helps to have a proper onboarding flow – having contracts, timelines, and payment terms in place before you start, not while you’re already in the middle of the work.

3. Find solutions that work for your peace of mind.

Some challenges only appear once you’re in the midst of them, and for many freelancers, realizing that foreign payments come with fees, delays, and uncertainty is when freelancing starts to feel stressful.

“Earning in USD sounds exciting–until fees, forex, and delays eat into your income,” Dana points out. She shares that this is something she wishes she had known earlier in her freelancing career. “That’s why there is importance in having the right structures in place, especially if you’re a mom who has to think of managing your home, paying your bills, among many other responsibilities.”

That’s why Mia and Dana now use the new GCash Virtual US Account, a feature within the GCash app that lets freelancers receive USD payments from US clients more directly without the usual surcharges. After creating an account, you get your own ACH and Wire Routing Number, which you can give to your clients for direct deposits of your pay.

You can also choose to convert your USD to PHP when you want, depending on live forex rates, which you can see on the platform – giving you control over how much you actually receive. Once it’s in your wallet, you can use it to send money, pay bills, or add to your savings.

Creating a GCash Virtual US Account is easy in just a few steps.

  1. Open the GCash app. Tap US Accounts in the Explore the App section
  2. Tap Continue and verify your information
  3. Complete your account creation

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