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

DBaker@forthea.com

www.forthea.com

@DavisBaker