behavioral economics & ppc - heroconf 2015
TRANSCRIPT
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Davis Baker | @DavisBaker
PPC Team Lead | Forthea Interactive
Behavioral Economics & PPCUsing Searcher’s Irrationality In PPC
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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.
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What the heck is it?
Behavioral Economics
What the heck is it?
Behavioral Economics
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Classic vs. Behavioral
Classical Economics
People are rational
Behavioral Economics
People are irrational
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4 Principles of Behavioral Economics
Social Proof
Scarcity
Anchoring
Framing
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Social Proof
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Social Proof
The tendency of people to assume actions of others or want what others are having.
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Social Proof In The Wild
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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
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Social Proof In PPC
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Scarcity
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Scarcity
Tapping into the condition in which our wants appear to be greater than the resources.
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Scarcity In The Wild
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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!)
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Scarcity In PPC
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Anchoring
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Anchoring
The tendency to rely too heavily on the first piece of information.
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Anchoring In The Wild
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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
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Anchoring In PPC
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Framing
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Framing
A condition that occurs when the same information is presented in different ways which can evoke different emotions
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Framing In The Wild
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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
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Framing In PPC
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Unleashing Your Inner Behavioral Economist
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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?
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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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Forthea
Davis Baker
www.forthea.com
@DavisBaker