behavioral economics & ppc - heroconf 2015
TRANSCRIPT
Davis Baker | @DavisBaker
PPC Team Lead | Forthea Interactive
Behavioral Economics & PPCUsing Searcher’s Irrationality In PPC
Who Am I?
• Professional Background:– SEM for 7 years– PPC Team Lead @ Forthea Interactive– Clients include: CenterPoint Energy, Cemex, Toshiba, Intel
• Inspiration:– The classics
• Outside the Office:– Running, dirt bikes, hiking, camping, Texans, Astros– COFFEE.
What the heck is it?
Behavioral Economics
What the heck is it?
Behavioral Economics
Classic vs. Behavioral
Classical Economics
People are rational
Behavioral Economics
People are irrational
4 Principles of Behavioral Economics
Social Proof
Scarcity
Anchoring
Framing
Social Proof
Social Proof
The tendency of people to assume actions of others or want what others are having.
Social Proof In The Wild
How To Apply Social Proof
• Make the user feel like they’re not the only one making this choice
• Show them directly how many people have chosen their product or service
• Show them that experts are making that choice and recommending it
• Use the rating and review extensions within the Adwords interface
• Create a feeling of envy
Social Proof In PPC
Scarcity
Scarcity
Tapping into the condition in which our wants appear to be greater than the resources.
Scarcity In The Wild
How To Apply Scarcity
• Communicate time sensitivity and product quantity. Convey the point that this deal won’t last long
• Make the user feel a sense of urgency using words like “hurry”, “only” and “ends soon”
• Utilize the ad customizers and
countdown features in Adwords (Matt’s about to drop some knowledge!)
Scarcity In PPC
Anchoring
Anchoring
The tendency to rely too heavily on the first piece of information.
Anchoring In The Wild
How To Apply Anchoring
• Set the value with an anchor. Give the users a number or piece of information they can latch on to
• Create an environment where B always looks better than A.
• Always promote the original price with the sale price
• Offer a lower price than your competitors
Anchoring In PPC
Framing
Framing
A condition that occurs when the same information is presented in different ways which can evoke different emotions
Framing In The Wild
How To Apply Framing
• Frame the product, service or proposition as a gain or loss
• Use absolute numbers instead of percentages
• Think like a lawyer or car salesman – present the facts in the best possible way
• Break down the cost of a product
Framing In PPC
Unleashing Your Inner Behavioral Economist
PPC Text Ad Application
Social Proof: How can I make the user feel like they’re not the only one making this choice?
Scarcity: How can I communicate time sensitivity and product quantity?
Anchoring: How can I convey the benefits compared to the first piece of information received?
Framing: Can I frame the product, service or proposition in the best way possible?
Closing Thoughts
“Our irrational behaviors are neither random nor senseless- they are systematic and predictable. We all make the same types of mistakes over and over, because of the basic wiring of our brains”
- Dan Ariely
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Contact
Forthea
Davis Baker
www.forthea.com
@DavisBaker