- Psychology of Ads
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- š§āš¬ From Nearly Bankrupt to $350M Revenue
š§āš¬ From Nearly Bankrupt to $350M Revenue
Using this powerful psychology tactic...
Hexclad CEO, Danny Winer, spent his savings, 401(k) and paychecks to keep his company afloat in the early days.
His cookware company was in āfinancial terrorā as he put it.
But now it brings in $350 million a year.
So how did they turn things around?
By leveraging the psychological power of a celebrity endorsement.
And anyone can learn the psychology principle that made them millions, regardless of celebrity endorsement.
Hereās what I mean:
š§Ŗ The Authority Bias
The Authority Bias is a cognitive bias that describes our tendency to be more influenced by the opinions and judgments of authority figures.
It can lead people to accept information without actually evaluating the content for themselves, simply because it comes from a perceived authority.
š¤³ How HexClad Uses The Authority Bias
Hexclad started to see success once it started selling their cookware in Costco in 2018-19.
But then 2020 hit and amidst the pandemic three things happened:
Costco shut down
Gordon Ramsay partnered with Hexclad
Hexclad spent its budget for Costco on paid social
The result?
Hexclad made $5 million in a single month.
And almost all of their ~1,300 ads on Facebook mention Ramsay in some way.
Because Ramsay is seen as an expert, his opinion holds credibility.
And credibility is one of six factors that help make ideas stick (according Chip and Dan Heath, authors of Made To Stick - remember last week when I mentioned I was reading it?).
Hexclad squeezes as much as they can out of Ramsayās endorsement:
Now I know what youāre probably thinking:
People will see right through this type of marketing, right?
And Hexclad knows that too.
Thatās why theyāre ready to counter those objections:
š§ How You Can Use The Authority Bias
So how can you use The Authority Bias?
The key is strategically aligning yourself with experts, authoritative figures, and other credible sources in your industry.
What if you canāt?
Maybe you donāt have the connections?
Donāt worry, you can still āborrowā authority.
You can use what an expert has said and angle it in a way that highlights your product.
Hereās an example from Phox Water:
They use a quote from Dr. Andrew Huberman, whose podcast regularly ranks among the top 10 podcasts on both Spotify and Apple and has 3.5 million YouTube subscribers.
Huberman never said anything about their product.
But theyāve cleverly used what he has said to borrow his credibility.
Or, for another example, hereās how the book summary app, Blinkist, borrows authority:
They donāt have celebrity endorsements. They simply connect the authority figure to their product.
(**Note: you have to be very careful to not get into legal trouble. You canāt use their photo and likeness. In fact, another company, A&D Performance just got sued by Andrew Huberman for using AI to make it appear like he is endorsing their product.)
Another route to use The Authority Bias is using āanti-authorityā figures, a term mentioned in Made To Stick.
Whoās an anti-authority figure?
The exact opposite of an authority figure.
In their book they mention the example of using a dying smoker to make the point that smoking isnāt good for you.
Find the type of person thatās the exact opposite of your ideal authority figure and use them to make the point that the customer needs your product.
So hereās how you can use the Authority Bias:
Testimonials by experts
Find credible information in relevant research papers
Use a celebrity or authority figureās name or quote in your ad (legally)
Find or create an āanti-authorityā to highlight the importance of your product
And here are some hooks you can use, without a celebrity endorsement:
āThe secret to becoming a [quality] like [authority figure] isā¦ā
For example, an education platform could say: āThe secret to becoming a creative genius like Steve Jobs isā¦ā
āAre you a [character trait] like [authority figure]?ā
This could be used to direct customers to a quiz. A good example of this is the Blinkist example above.
ā[authority figure] once saidā¦ā
For example, a fitness brand could say: āDwayne āThe Rockā Johnson once saidā¦ā and then tie it back to their product.
So, how will you use the Authority Bias?
Let me know how it goes!
Until next time,
Josh
Oh also: I changed the design because some people weāre having issues with legibility on mobile and when forwarding it to others. I may play around with it over the next couple of weeks. Iām still all for Dark Mode.