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Meta and YouTube lose landmark trial, the UK implements a “visa break” on certain countries, and ChatGPT ads receive early feedback
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Welcome to The Student Funnel, a monthly higher ed sector newsletter from Hybrid, a leader in student marketing and recruitment strategies. We highlight news, trends, and behaviours that impact the sector and share insights on how to better connect with your audiences.
In a major moment for the tech sector, a Los Angeles jury has found Meta and YouTube negligent in a landmark case over the mental health impact of social media on a young user. The plaintiff, a 20-year-old woman identified as Kaley, argued that she became addicted to Instagram and YouTube as a child and that the platforms’ design features contributed to body dysmorphia, depression and suicidal thoughts. The jury awarded $6m in damages in total, including compensatory and punitive damages, with Meta responsible for 70% and YouTube 30%.
Why this matters goes far beyond one case. Commentators are already describing it as a potential turning point for the social media industry, and it is likely to shape hundreds of similar lawsuits now moving through U.S. courts. The case focused heavily on alleged addictive design features such as recommendation algorithms, autoplay, notifications, filters and infinite scroll, rather than user-generated content itself, which is important because it may provide a legal route around the protections platforms usually rely on.
For higher ed marketers, this is another clear sign that the wider mood around youth social media is shifting fast. The implications are not immediate ad bans, but greater scrutiny of how platforms are designed, how young audiences are targeted, and what “safe” engagement should look like. Expect more regulation, more parental concern, and more pressure on institutions to strike the right balance between reaching prospective students and demonstrating care, credibility and digital responsibility.
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The U.S. student recruitment picture seems to be increasingly uneven. On the international side, the latest State Department figures confirm a sharp slowdown. Student visa issuances fell by 35.6% over summer 2025, dropping from 289,510 to 186,160. June was the worst month, with issuances down almost 50% year on year after a temporary pause in visa appointments.
But the deeper issue goes beyond one disrupted month. Policy volatility, visa revocations, social media screening, concerns around OPT, reduced consular capacity and general uncertainty have all contributed to a loss of confidence in the U.S. as a study destination. India (one of the country’s most important growth markets) was hit especially hard, with visa numbers down by around 63%.
At the same time, domestic demand is telling a different story. According to Common App, students submitted 9.4 million applications by 1 March, up 5% year on year, while the average applicant applied to 6.59 colleges. There was also continued growth among first-generation, fee-waiver eligible and Black applicants, suggesting that domestic opportunity and ambition remain strong even as affordability pressures continue.
The catch is that international applications through Common App are down 9%, with particularly sharp falls from parts of Asia and Africa. So while domestic demand is healthy, the global pipeline is showing signs of strain much earlier in the funnel.
This is a clear reminder that U.S. recruitment is no longer moving in one clear direction. Domestic audiences are still engaged, but international growth can’t be taken for granted. That means more careful market diversification, stronger reassurance messaging, and much closer attention to conversion barriers long before students reach the enrolment stage.
If your social performance felt flatter in 2025, Buffer’s latest data suggests you weren’t imagining it. Based on activity from more than 191,000 users and tens of millions of posts, the platform found that engagement declined on Instagram, LinkedIn and Threads last year, while Facebook, Pinterest and TikTok were broadly stable or slightly up.
For higher ed marketers, the bigger point is not that these channels are “failing”, but that they are getting more crowded and more format-driven. Instagram’s shift towards Reels is likely one reason feed post engagement is down, while LinkedIn and Threads are both dealing with more competition for attention as user activity grows.
The most useful takeaway is practical: replying to comments still matters a lot. Buffer found that engagement rises significantly when brands respond, including +42% on Threads, +30% on LinkedIn and +21% on Instagram. It also found that Reels get 36% more reach than carousels on Instagram, but carousels generate 12% more engagement, while LinkedIn carousels outperform video and image posts by around 3x.
In other words, posting alone is no longer enough. For university teams, stronger results will come from sharper format choices, more active community management, and content that feels native to each platform rather than copied across channels.
New Zealand strengthens its post-study work offer
New Zealand is making a clear play for international talent. From late 2026, eligible graduates will be able to apply for a new six-month graduate work visa, giving them time to find a job and potentially move on to a longer-term employer-sponsored route. At the same time, the country is widening eligibility for its existing post-study work visa, including some Level 7 Graduate Diploma students who already hold a bachelor’s degree. Both visas will cost NZD $1,670.
This is part of a much bigger strategy: New Zealand wants to nearly double the value of international education to NZD $7.2bn by 2034, and it is already seeing momentum, with enrolments up 14% in the first eight months of 2025 and education exports reaching NZD $4.52bn. So, in other words, post-study work rights remain one of the strongest levers in global student decision-making, and New Zealand is actively sharpening its edge.
The UK’s visa “emergency brake” may not stop at four countries
The UK has now stopped issuing study visas to applicants from Afghanistan, Cameroon, Myanmar and Sudan, with ministers arguing the move responds to a sharp rise in asylum claims from people who first entered on legal visas. The Home Office says applications from these four nationalities have risen by more than 470% in four years, and the policy took effect on 26 March.
But the bigger story for the sector is what comes next. UK international education champion Sir Steve Smith has warned that more countries could face similar “visa brakes”, making this look less like a one-off intervention and more like a new compliance era. Critics note the affected students make up less than 0.6% of the UK’s international cohort, but the wider signal is that universities will be expected to show tighter oversight of agents, recruitment routes and compliance if they want to protect policy stability and preserve the Graduate Route.
Australia’s student economy is booming, but policy is sending mixed signals
Australia’s international education sector generated AUD $53.6bn in export income in 2024/25, up around 5% year on year and now firmly the country’s largest services export. In practice, that means money brought into Australia by incoming international students through tuition fees and day-to-day spending. It underlines just how central international students are to both the wider economy and universities, where they account for roughly a quarter of revenue while more than 40% of institutions have been running deficits.
At the same time, Australia has doubled the fee for its key post-study work route, the Temporary Graduate (485) visa, from AUD $2,300 to $4,600, on top of already having one of the world’s highest study visa fees. So in short, demand remains strong, but affordability, policy stability and post-study work value are becoming even bigger parts of the recruitment story for Australia.
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Early reporting from The Information suggests that ChatGPT ads are still in a relatively early phase. Advertisers currently have limited access to performance data, very light targeting options, and a buying process that is still more manual than the self-serve systems marketers are used to on Google or Meta. That makes it harder to measure outcomes in the traditional sense, but it is also fairly typical of a platform that is still building out its ad offering.
What matters most is the direction of travel. OpenAI is preparing to roll ads out across all U.S. users on free and low-cost ChatGPT tiers, which means the audience available to advertisers is set to grow quickly. As more prospective students use AI tools to research institutions, courses and careers, ChatGPT is starting to look like a platform universities will want to understand early rather than ignore.
For now, it makes most sense to think of ChatGPT ads as an emerging brand-awareness and discovery opportunity rather than a fully developed performance channel. For universities willing to test, the value may be less about immediate conversion and more about learning, experimenting and building an early presence in a space that could become much more influential over time. The measurement tools may still be catching up, but the opportunity itself is becoming harder to dismiss.
With so much pressure on teams to produce more short-form video, it helps to know what the data says is actually working. This latest study from Emplifi breaks down the creative choices that have the biggest impact on retention, reach and engagement, and there are some useful lessons here for higher ed marketers creating Reels for student audiences.
Human speech in the first three seconds performs best for retention. Reels where someone starts speaking early saw much stronger retention than music-only videos, including +11.7% at 3 seconds and +24.7% at 10 seconds. They also drove slightly higher engagement overall, suggesting that a clear voice-led hook can outperform purely trend-led edits for brand content.
Showing a person early helps stop the scroll. Videos featuring a person within the first three seconds improved short-term retention and increased the likelihood of viewers watching with sound on. For universities, that reinforces the value of real student, staff or ambassador-led content over faceless graphics or abstract edits.
Vertical is the winning format by a distance. Vertical Reels outperformed square and horizontal formats across reach and retention, including +20.9% reach and +38.5% 30-second retention. If Facebook Reels is part of your content mix, vertical should be the default, not an afterthought.
Seamless loops work well for very short videos. For Reels under seven seconds, looping significantly boosted replay rate, engagement and reach. That makes short, repeatable content formats especially valuable for things like event promos, quick campus moments or branded hooks.
Text overlays help, but mostly when there is no speech. Text improved retention in music-led Reels by giving viewers context, especially when sound is off. But in speech-led videos, too much on-screen text could actually reduce retention, so balance matters.
The bigger takeaway here is that strong Reels performance is not just about chasing trends or posting more video. It is about making creative choices that align with how people actually watch: quickly and often with sound off until something grabs them. For university teams, that means clear human-led storytelling, simple structure and content that feels native to the format. Read the full guide now.