What would make a social media user share content with his family and friends? What would entice him to click an external link? What type of content would be convincing enough to convert a “like” to an eventual sale? These are some of the questions that constantly bug digital marketers. Digital marketing, a subcategory of marketing, uses digital platforms such as Short Message Service (SMS), electronic billboards, social media, and apps to promote and sell products. In creating effective digital marketing strategies, it’s imperative to understand consumer buying behaviour.
“The brain is the organ of economic decisions. With behavioral economics, we want to use facts and constructs to reveal the limitations on computation, willpower, and self-interest,” says Dr. Colin Camerer, an experimental economist at the California Institute of Technology. Behavioral economics, or the “economics from the inside” of the mind, can be a useful tool for digital marketers.
If you’re an entrepreneur or head of an advocacy group aiming to reach your target audience, here are four things you should know about digital marketing trends and their correlation to behavioral economics.