The business with money - part 2
FOMO Marketing
Certain types of influencers regularly get their licks in at getquin, and sometimes rightfully so.
In my last somewhat more comprehensive post, I wrote something on the topic of "The business of money" I dealt with the business practices of the "get rich quick coaches".
You don't know the post?
You can read it here:
https://app.getquin.com/activity/OuSHaioIFE
Today is about something else that we also encounter regularly especially on the internet.
Since we at getquin deal with money and finance, I am also primarily referring to the application of this tactic in the area of capital markets and only briefly touch on other areas for understanding.
FOMO Marketing, or also "Fear of Missing Out" Marketing, refers to the use of fear, the feeling of being left out, as a marketing strategy.
In terms of influencers and capital markets online, this means that companies try to capitalize on consumers' fear of missing out by making them feel that they will lose something if they do not invest in certain products or services.
An example of FOMO marketing in the context of influencers would be when a company hires a well-known influencer to promote a product by suggesting that everyone else already has it and therefore it is "in."
Consumers might then feel pressured to buy the product as well so as not to be "out."
FOMO marketing can also be used in relation to capital markets on the Internet, with companies advertising investment opportunities that are portrayed as a "once in a lifetime opportunity" and suggesting that you will miss out if you do not invest.
This can entice consumers to invest in risky investment opportunities without carefully considering the risks and potential repercussions.
(Small point on the side: Just anyone who follows various financial channels on Instagram can see this behavior when it comes to penny stocks. There suddenly every company is a potential tenbagger, offers huge opportunities and is supposed to dominate the market in a short time. One or two years ago, this tactic was apparently also used to drive up the price of various lithium companies extremely high. As before, this tactic is also popular with shares on hype topics such as cannabis, e-cars, lithium or renewable energies).
It is important to note that FOMO marketing is a manipulative tactic and can mislead consumers into making decisions that are not always in their best interest.
Therefore, it is important to think critically and be aware of when you may be influenced by FOMO marketing, and instead rely on informed decision-making and thorough consideration of the risks and benefits of investment opportunities.
Source:
- "Fear of Missing Out (FOMO) Marketing: Definition, Examples, and How It Works" by Neil Patel. https://www.Neilpatel.com/blog/fomo-marketing/
@InvestmentPapa Again, no tl;dr
