Historically, the field of economics worked on the presumption that people made wholly rational and completely informed purchase decisions, but over the past 20 years behavioural economics has shown how far this is from the truth. In fact, in the busy day-to-day lives of modern consumers we are all constantly taking shortcuts to help us reach purchase decisions quickly and with minimal cognitive effort. These shortcuts are known as behavioural biases.
In order to better track and analyse how behavioural biases are being used by brands, digital agency, Roast has developed a natural language processing (NLP) tool which can be trained to automatically detect the use of biases in text using machine learning.
In a recent study, Roast’s NLP tool was recently deployed to analyse the prevalence of six key behavioural biases used in the pay-per-click (PPC) landscape for brands in the mortgage sector.
A snapshot of data, consisting of 2,000 ads served by over 50 brands, was analysed to reveal insights into how behavioural biases were being used in the PPC auction for mortgages. Key findings include:
Which behavioural biases are most likely to be used in PPC copy by mortgage brands
Which brands are most and least likely to leverage behavioural biases, and how different categories of companies tend to use them
How your brand can use behavioural biases in PPC ad copy
Understanding behavioural biases can do more than just increase advertising effectiveness, it can encourage a deeper psychological understanding of consumers and ultimately inspire new business strategies and product development. By understanding how and where competitors are using behavioural biases, brands can also effectively differentiate or imitate success.
To gain more information on how these biases are being used in the mortgage space, with a number of market forces in play, such as the stamp duty holiday, and disruptive digitally native challenger brands putting pressure on the established market leaders, download the full whitepaper here.