Using loss aversion and the endowment effect can shape our purchasing decisions. In this video tutorial, Mike explains both loss aversion and the endowment effect and how they can affect ad copy. Learn how to put yourself in the mind of a customer who is on the fence about buying your product or service.
- [Voiceover] Have you ever found money on the sidewalk?…Pretty cool isn't it?…Conversely, have you ever put money in your pocket…and then reached for it when you're at the store…and it's simply not there?…Two different sides of the same coin.…Which one would you rather?…To find free money or avoid having lost money?…After much study we can definitively say…that loss aversion is real.…Simply put, losing money is more painful,…more than gaining money is great.…In marketing, this can present itself in several ways.…
One of the terms that's thrown around quite often…in my company's offices is FOMO, the Fear Of Missing Out.…Rational humans are worried…they'll be left out from group decisions,…that the grazing herd will leave them alone…without the protection of others.…Yes, the thought that we might make the wrong decision…and be excluded from society is a strong evolutionary trait…that can be seen in ads everywhere.…Heck, some ads even say, "Don't be left out."…Not exactly the most subtle approach, but it does work.…
- Describe how to keep content relevant.
- Recognize the importance of carefully choosing grammar and syntax.
- Cite ways to improve the chances of acquiring new customers in your ads.
- Differentiate between website ad copy and social media ad copy.
- Explain the value of customer personas.
- Name the ways in which content marketing differs from traditional advertising.