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Just How Important Is Color When Making Online Content? – ReadWrite

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Nate Nead


Color is something we all experience every day. We notice its beauty in everything from flowers to art. It sets the mood in our most commonly trafficked rooms and offices. It even dictates our behavior in many cases – especially in applications like traffic lights.

Depending on who you talk to, you might hear that color psychology is one of the most important considerations in the world of web design and digital marketing. Or you might hear that colors don’t really matter – and that people selling you on the former idea are exaggerating the effects of color.

So just how much of an impact does color have when designing a website and creating online content for your brand? It’s a complicated question, but we’ll try to answer it.

The Legitimacy of Color Psychology

One of the most important concepts to explore in answering this question is the legitimacy of color psychology. In other words, is it true that certain colors trigger changes in human mood, thinking, and behavior?

The short answer is yes, colors can and do have an impact on human behavior. This has been clearly demonstrated in a number of different studies. For example, color is one of the most important tools human beings have for determining the edibility of food, at least from a biological standpoint. Bread tends to sell better if it’s wrapped in packaging that makes it appear more of a golden brown – making it appear fresher or better-cooked. People also tend to describe and rate the flavor of certain foods differently based on how it’s colored; for example, a cherry-flavored green drink might be described as “lime” by a disproportionate amount of participants.

When it comes to how colors affect mood and human decision making, however, the science is much more complex. While it’s commonly stated that blue is associated with calmness and red is associated with excitement, it’s not clear just how profound or typical these effects are, or whether social culture is responsible for their effects. If we claim that “blue is calming” for a long enough period of time, we may genuinely see a change in how the general public views the color blue just because of popular perception.

This idea is strengthened by the fact that different cultures tend to see colors in different ways. Much of this boils down to how we describe color in language, and the words we use to describe different colors. Different cultures have different selections of words to describe the same spectrum of colors, resulting in different perceptions related to shades and associations of colors.

In studies that pursue this phenomenon, a simple principle emerges. When people describe colors as having positive qualities, such as “clean” or “calming,” and/or when they subjectively like those colors, they become far more likely to engage with things that feature those colors – for example, if you like the color blue, you’ll be more likely to buy a blue product at the store (or, more related to the topic at hand, click a blue button).

So what does this all mean for our discussion of color psychology in the digital marketing world?

Basically, while it’s clear that color can have a measurable influence on human thought processes, feelings, and actions, the science isn’t definitive. Color influences are a result of both biological and socio-cultural factors, and perceptions of any single color will likely vary between people of different backgrounds.

Branding and Consistency

There is one area of digital marketing where color choice is profoundly important, at least to an extent: branding. Your company’s brand serves a number of important purposes. It’s designed to characterize and concisely define your brand. It’s supposed to become more familiar and recognizable over time. And it’s responsible for forming people’s first impressions of your company at the same time.

Because of this, choosing the colors associated with your company is one of the most important marketing decisions you’re going to face. Do you want colors that your target audience is likely to find calming and comfortable? Or colors that motivate and energize them? Do you want strongly contrasting colors that create a loud and unique combination or a set of colors that almost blend together?

There are no right or wrong answers here, but you’ll need to understand how your target audience feels about various colors, the key characteristics you want associated with your brand, and other factors before you can make a final decision.

Once you settle on the colors you want most closely associated with your brand, you can work to include them more throughout your website, your landing pages, and even your other marketing materials. While these strongly branded colors may not make much of an impact on consumer behavior in the earliest stages of your company’s development, as you continue to grow, they’ll serve to give people a much more consistent and familiar experience. As people grow more accustomed to these colors, they’ll become much more persuadable by your messaging.

The Role of Contrast

Some studies suggest that people are inherently more likely to engage with a landing page (or convert) if the call-to-action (CTA) is a specific color (e.g., red is more likely to convert than green). But other studies have cast doubt on these assertions, finding that the exact color had almost no statistical impact on conversion rates.

However, there’s one important principle that seems clear: strongly contrasting colors tend to influence engagement. This concept should be intuitive. If there’s a light green button on a slightly darker green background, you may not notice the button at all – and if you do, you might not think it’s very important. But if there’s a red button on a green background, regardless of shade, the strong contrast will naturally draw your eyes – and possibly motivate you to take action.

Because of this, it’s important for marketers to include contrasting colors whenever you want to guide your users’ attention.

Key Takeaways

If you’re interested in using colors properly in your web design and marketing, these are the most important takeaways to review:

  •         Color psychology matters, but is not set in stone. There’s no doubt that color can impact human behavior – but it’s not as one-to-one as you might think. Green, for example, doesn’t have a universal and easily predictable set of effects on people.
  •         Cultural and individual differences have a major impact on perception. If you grew up in a world where there is no word for “green” and blue is associated with “stop” instead of red, you might walk away with a totally different relationship to color than someone from the United States. You need to understand your audience to use colors well.  
  •         Branding is the most important application of color in marketing. Color is used in almost all your visually dependent applications, but your company’s branding may be the most important, since it sets the stage for all your marketing and advertising to come.
  •         Contrast encourages people to act. Specific colors may not give you a higher conversion rate, but strongly contrasting colors will. Use sharp differences to draw people’s attention and get them to take specific actions.
  •         Experimentation is vital for success. Theory is often different from practice. Whatever you hypothesize about how colors will influence your audience’s behavior, you’ll need to test it in a live environment to make sure it works. Try out a variety of different colors in a variety of applications before you make any definitive conclusions, and make sure you challenge your assumptions. Only through your own tests can you say for sure how a color works for your audience.

While the debate about color effects will continue to rage indefinitely in the psychology community, in the marketing community, we have some clear answers and clear direction. Use these concepts to win more users and see better results in your marketing strategies. 

 

Nate Nead

Nate Nead is the CEO & Managing Member of Nead, LLC, a consulting company that provides strategic advisory services across multiple disciplines including finance, marketing and software development. For over a decade Nate had provided strategic guidance on M&A, capital procurement, technology and marketing solutions for some of the most well-known online brands. He and his team advise Fortune 500 and SMB clients alike. The team is based in Seattle, Washington; El Paso, Texas and West Palm Beach, Florida.

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Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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