Economics: Making Your Advertising More Effective

2/05/2014 By: John Owrid

Source: http://www.forbes.com/sites/johnowrid/2014/02/05/behavioural-economics-gives-the-advertising-industry-a-nudge-in-the-right-direction/

Behavioral Economics Gives The Advertising Industry A Nudge In The Right Direction:

Believe it or not, economics and business/brand advertising tie closely together. John Owrid, author of this article, briefly explains tactics companies use to sell their products more effectively. I thought it was fascinating that.... In something that seems as simple as placing products on shelves, architecture also comes into play and is a big factor. Owrid explains this tactic called "Choice Architecture" and uses the example of soap. Say, for example, you place soap on a store shelf. Studies are now showing that if you place the soap 

at an average customers eye level, they are more likely to take notice of it, and purchase it. Mathew Willcox, Executive Director of advertising agency Draftfcb recently said, “one of the perpetual challenges to marketers is getting people to switch brands, and it seems that some way of creating a sense of closure with their old or existing choice could be a very interesting approach.”