Did you know that emotional marketing tactics are nearly twice as effective as rational ones? Although we all want to know a product’s specifications before we buy it, purely informational marketing isn’t enough. To get consumers’ attention in this fast-paced, digital world, you need to appeal to their emotions. And one of the strongest feelings is fear. But how effective is fear-based marketing? We’ll dive into this question below and help you decide if this marketing strategy is right for your business.
Is Fear-Based Marketing Effective?
When done correctly, fear-based marketing can be an effective strategy that increases your conversion rates. Wordstream’s ad campaign is a perfect example. They make SEO tools to help business owners grow their companies. They recently compared the performance of two ad headlines for their free AdWords tool, both of which are shown below.
- Headline 1: Stop Wasting Money in AdWords – Use Our Simple & Free Tool
- Headline 2: Free Google AdWords Grader – Get the Most Out of Your Ads
The first headline uses a fear-based approach, reminding business owners how much money they could lose by using AdWords incorrectly. It had a 70% higher click-through rate and an 18.8% higher conversion rate than the second, more positive headline. Why? Because the first headline taps into loss aversion, a powerful psychological principle that you can use to your advantage in ad campaigns.
Loss aversion is the idea that people feel the pain of monetary losses more acutely than the joy of financial gains. So consumers will usually be more motivated to learn how to save money and avoid financial losses than increase their income. That’s why the first headline about how to avoid wasting money in AdWords performed better than the second headline.
However, not all fear-based ad campaigns are successful. This strategy can backfire if you don’t strike the right balance between negativity and positivity. If your messaging makes your customers too afraid, research has shown that they’ll ignore what you’re saying to avoid feeling bad. They may also start to view your brand negatively if you go overboard with your fear-based ads.
Fear-based marketing definitely has risks. So should you use it or try a safer, more positive approach instead?
Should You Use Fear-Based Marketing?
Fear-based marketing could be the right approach for your business depending on what you sell. If you sell clothes, you probably can’t capitalize on the principle of loss aversion. But fear-based approaches can work well for companies that protect consumers from threats or losses, such as:
- Insurance companies
- Identity theft protection services
- Companies that sell antivirus software or cybersecurity tools
- Businesses that sell emergency preparedness kits
However, other businesses can capitalize on the fear of missing out, which is a different type of loss that can be just as motivating. Advertising a limited time only sale can motivate consumers to buy now so they can avoid paying more for your products later. This strategy can give you a short-term boost in revenue and help reactivate customers who haven’t purchased your products in a while.
If you decide fear-based marketing is the right fit for your business, you’ll need to learn how to execute this strategy properly to avoid turning off your customers.
How to Create a Great Fear-Based Marketing Campaign
How effective is fear-based marketing? It all comes down to the execution. Here are some of our best tips to help you create a great marketing campaign that capitalizes on loss aversion to drive conversions.
Don’t Instill Too Much Fear
Research has shown that it only takes a moderate amount of fear to get customers to act. Once you reach that threshold, there’s no benefit to scaring them more. In fact, it could hurt your conversions if you lay on the fear too thick. Customers may avoid your content if it’s overly negative and start to dislike your brand because of your bad-news messaging.
Your goal should be to subtly point out the risks and threats potential customers could face if they don’t use your product. The Wordstream ad did this perfectly by gently reminding business owners that they could be wasting money in AdWords. It didn’t go too far by suggesting that they were killing their business by making AdWords mistakes.
A good fear-based marketing campaign doesn’t just make customers afraid of potential threats. It presents your product or service as a solution to their problems. Your customers shouldn’t walk away from your ad feeling scared and dejected. They should feel hopeful and reassured that they’ll be able to protect themselves and their family by taking action and buying your product.
Tell a Story
Fear-based marketing campaigns are only effective if the customer relates to them. If they don’t think the dangers mentioned in your ad apply to them, they’ll ignore it. That’s why it’s important to tell a story that resonates with your ideal customers. Build a buyer persona and figure out what their pain points are. Then create an ad that speaks to them.
Fear-based marketing is a high risk, high reward strategy. If it pays off, your conversions could skyrocket. But if you strike the wrong chord, you could lose some of your customers. After all, many consumers say they’ll stop buying products from their favorite brand after just one negative interaction or experience.
If you think you can strike the right balance between positive and negative, it’s worth giving fear-based marketing a shot. The vast majority of ads use a positive or neutral tone, whereas only 2% of ads use negative messaging. Taking a subtle fear-based approach could make your ad campaign stand out in a noisy, overcrowded digital landscape.
Have you ever used fear-based marketing in your business? If you haven’t, would you consider trying it out? Let us know in the comments section below!