FOMO is FOMO syndrome. It is an acronym for the words “Fear Of Missing Out”, which in English means “fear of missing out” and represents the fear of missing out.
Now in the era of widespread digital technology, social networks and smartphones, this phenomenon is a real folk disease, combining the fear of social isolation with constant anxiety about missed opportunities.
In the cryptocurrency market, FOMO is closely related to herd instinct. It can also be compared to hype. If everyone is buying tulip bulbs and talking about how they got rich off them, people feel like they are missing out on something important. They want to be part of the fun and share in the success. They are overcome by the fear of “getting away from the pack.”
This is the feeling experienced by traders who see a huge bullish candle on the screen, but at that moment they themselves opened sales. Many of them, out of fear, immediately close the deal and immediately start buying so as not to miss the movement.
Thanks to the huge amount of information and impressions that bombard us every day, this fear can arise in absolutely every Internet user. The MyLife.com service, in the course of its research, found that this syndrome was present to one degree or another in 56% of respondents.
FOMO effect
FOMO, or FOMO, is the obsessive fear of missing out on something, such as an event or opportunity. You feel like you are wasting your life. Especially against the background of the colorful life of your friends.
The stronger the feeling of dissatisfaction, the more you want to follow the lives of others with a great desire to find others like yourself. FOMO is associated with dissatisfaction with one's life, and social media only exacerbates an already difficult condition.
Every day we are under pressure from a huge amount of information, so this unusual syndrome can occur in anyone. A study was conducted according to which 56% of respondents suffer from this condition.
The need for information is normal for a person, but it should not turn into obsessive thoughts and create anxiety.
Clear signs of FOMO:
- A frequent fear of missing out on important things and events.
- Semantic emphasis on the phrase “everyone but me.”
- An obsessive desire to engage in any form of social communication (for example, going to all the parties).
- The desire to constantly please people and gain approval.
- The desire to be available for communication at all times.
- The desire to constantly update social network feeds.
- A feeling of severe discomfort when the smartphone is not at hand.
- People with Fomo tend to drink alcohol more often and in larger quantities than people without it, and are also more likely to suffer from “shameful” behavior during alcohol intoxication and undesirable consequences.
Algorithm for the FOMO effect:
As a result, FOMO has a negative impact on people's mental health, causing low mood and, in some cases, depression. The most common private manifestations of FOMO are feelings of boredom and loneliness. Using social networks to express themselves, to define themselves through their online image, people subconsciously internalize the message “I post, therefore I exist.”
Technique #7: Harness the Power of Influencers
A recommendation from an influencer can greatly help a marketing campaign. Many people strive for a lifestyle similar to the stars, so products that have been touched by a celebrity take on an almost symbolic meaning. Many subscribers follow their idols, among other things, to learn about some new products and, through using them in everyday life, to feel closer to their favorites.
According to a recent survey, Instagram is still the most effective platform for communicating brand messages, so working with influencers here can have the greatest impact.
Important advice: make sure in advance that you understand the specifics of the resource on which you plan to advertise and do not try to over-commercialize the offer. Remember that the audience is not primarily interested in the brand, but in the people who buy it.
A simple test to determine if you have FOMO syndrome
Take a short test to check your head for this disorder. After reading each statement, answer whether it is true for your life or not:
- I constantly check the price of an exchange asset (bitcoin, gold or dollar).
- I am constantly afraid of missing some important event or news about it.
- I depend heavily on my phone and feel uncomfortable without a gadget.
- I check my phone immediately after it rings or vibrates.
- I don’t spend a minute without my phone, it’s always there, whether I’m eating or going somewhere.
- I’m afraid not to respond to a message on time, not to see important news, because I might not have time to do something.
- I constantly update my social media feed and check messages.
- I feel resentful if I find out that my friends or acquaintances went to some event without me.
- There is a constant desire to be in the center of parties and cool events.
If you answered “Yes” to more than half of the questions, then most likely you have FOMO syndrome.
Forced spending
The FOMO phenomenon manifests itself not only on social networks, but also in stores . You go for bread and milk and come out with bags full of groceries. And it doesn’t matter that you don’t really need them, but how could you not buy them on PROMOTION!
Having entered a shopping center during the sales season, you can no longer calmly walk along the windows, because the mannequins are directly shouting to you what benefits you are missing out on by refusing another cool thing with a 60% discount! Such savings! In fact, when you want to save money, you spend more.
How not to give in
- Make a shopping list in advance. Write everything down in two columns: required things and desirable things. This way you will see what you really need, and what you would like to please yourself with or could buy at a good price.
- Create a budget for purchases. Next to each product, write a reasonable price. Overpaying is only possible if you save on another purchase.
- In the store, try to answer honestly whether you need this item and whether you are willing to spend this amount on it. Don't be like the heroine in the movie Shopaholic, who argued to herself that she needed gloves because she had hands.
- Don't beat yourself up over what you've already bought. Things are meant to provide pleasure that may be missing in your life. They fill the emptiness, the lack of emotions and impressions. But criticism will only make the situation worse, forcing you to buy even more. It’s better to think about how to get joy not from shopping, but in other areas.
- During sales season, go to the store without a credit card or wallet. Enjoy trying it on, and after a day or two, look through your wardrobe - if you really need something, feel free to go for something new.
- You must have time to rest. A tired person can see benefit in any offer he comes across. The higher the load during the day, the stronger the syndrome of lost profits manifests itself in the evening.
How to get rid of lost profit syndrome?
During any FOMO, it is important to remember the following points:
- There will always be another deal. Conditions may not present themselves right away, but the right opportunities are worth the wait.
- Eliminate emotions. Learn to put emotions aside.
- Stick to your trading plan. Formulate your strategy, create a trading plan and stick to it.
- Understand the market. Do your own market analysis to understand the fundamentals of the trend.
- Don't take unnecessary risks. Use only capital that you can afford to lose.
In order not to waste a lot of time answering meaningless messages and checking the Bitcoin rate every 5 minutes, set rules for using your smartphone and computer:
- Remove unused apps and turn off push notifications where you don't need them.
- Unsubscribe from groups and accounts that do not contain objectively significant and useful content for you.
- Clean out your email inbox and unsubscribe from unnecessary mailings.
- Check the news feed and investment asset quotes once or twice a day, for example in the morning and evening.
- Don't take your phone to bed with you and don't surf the Internet before bed.
- Make a schedule for when you will respond to messages on instant messengers and social networks not related to work. And the same schedule is for service numbers.
It won't be easy at first, so start gradually so that your internet-addicted brain can adapt to the new reality without unnecessary stress.
Be the first to arrive
The race for leadership and victory has always driven humanity's development. Whether it's a marathon or career growth. We behave in the same way when shopping. No one likes to be second, so in FOMO marketing, the spirit of competition helps increase sales.
Usually, a month before the presentation of the new iPhone, online electronics stores create a page with new models and a “Pre-order” button, so that every fan of the Apple brand can become the first buyer of the new smartphone. This type of advertising campaign is effective when new brands are introduced to the market or before the release of a new device model to create excitement.
And Booking, which we cited earlier in the examples, also distinguished itself here, they show in each ad how many people are currently looking at a particular property. Airbnb also uses a similar technique.
You can apply exactly the same model in your online store. See all examples below.
2 people are currently looking at this apartment - be the first to book!
Airbnb has similar mechanics.
FOMO-FUD cycle
The FOMO-FUD cycle is a series of deliberate actions aimed at creating the desired opinion of the audience. In other words, this is psychological manipulation by means of working with information fields in order to create the necessary dynamics.
Ph.D. and cognitive neuroscientist Bobby Azarian explains how the natural cycle of fear and greed is used to promote certain interests:
“During this cycle, FOMO and FUD purveyors engage in psychological and information warfare as they compete for the attention of the curious investor, who is inherently vulnerable due to the fact that he is always on the lookout for insightful opinions that could contribute to a better investment decision funds. It's a little ironic that in the crypto world, the opinions of others can cause more harm than help."
In addition to competing for investors and their resources, cryptocurrency promoters may have more reasons to hurt a rival. One simple motive is the desire to ensure that no other token surpasses their own token in value by ranking higher on Coinmarketcap.
A more complex situation is intertwined community politics, in which someone may attack a project not because it is a direct competitor, but because a supporter of that project is a rival in another area. Material from Azaryan's article on Psychology Today:
“While the FOMO-FUD cycle can be interesting to watch, it is important to remember that it is not a game. The campaigns carried out have real financial consequences for investors. A psychology expert has concluded that cryptocurrency traders should be skeptical not only of sensational claims, but also of skeptical claims.”
Technique #7: Create Limited Offers
The limited collection is guaranteed to increase sales. Just look at the collaborations of mass market brands with famous designers, for which buyers are ready to stand in lines and sweep everything off the shelves immediately after the store opens.
Many people believe that this technique is the prerogative of luxury brands or the fashion segment, but in fact you don’t have to look far for an example:
Many customers are willing to buy your product if they know it will soon disappear from the shelves. There is a separate segment of people who strive to purchase only such offers. Don't forget that a successful exclusive purchase can bring you regular customers.
FOMO in trading and investing
In trading and investing, the FOMO phenomenon is especially noticeable. When the markets are rising and the upward trend continues for a long time, there is euphoria on the stock exchange and a deep belief that no matter what you buy now, the price will soon rise and bring good profits.
How many times have you said or heard the phrase, “If only I had bought shares in this company a few months ago, I would have made a fortune”? The effect of FOMO is gradually increasing, and many investors make spontaneous purchases at less than favorable prices, without conducting quality fundamental analysis .
When the market grows on inflated expectations, they say that a bubble begins to form on the stock exchange, which will one day burst. Stock prices cannot significantly outpace the fair value of the issuing companies over the long term. Therefore, everyone who invested out of fear of missing out will be disappointed and lose money.
And, unfortunately, few people, after such a scenario, continue to believe in the profitability of the stock market. Faith disappears. But only until the next boom. The syndrome wakes up again, because... An “infected” person once experienced this excitement and the market for it is a game that starts again and again, when everyone around is talking about getting rich quick.
The herd mentality not only creates the fear of missing out on growth, but also dampens a person’s ability to make decisions on their own. Namely, this ability is the most important skill for a trader and investor.
And when you bought after looking at others, then if it fails, you can blame someone else for it. The fear of making the wrong decision is prohibitively high for many of us. It has a paralyzing, counterproductive effect.
This is why many novice investors are so fond of advice and investment recommendations and entrust their money to the management of so-called “gurus”, most of whom operate with scraps of theoretical knowledge and do not have the proper experience.
Another big mistake is copying other people's trades and imitating someone else's investment portfolio. Everyone has their own strategy, goals and horizons. Some people are willing to take risks, but you are not. You know the result, but you continue to imitate.
Technique #9: Show product shortages
The principle of scarcity encourages users to assign greater value to goods that may soon become unavailable.
For FOMO marketing, the principle of scarcity is very important. He plays on the fear of loss, which in most cases is not inferior to the desire to make a profit and becomes the most important incentive for making a purchase.
In order to emphasize the shortage, you can, for example, show how much of the product remains in the warehouse:
Five tips - how can an investor avoid FOMO?
The main advice that can be given regarding FOMO syndrome in investments fits into 5 basic principles.
Forget about the past
What once happened in the market has absolutely no meaning. No successful investor looks at past prices. He thinks only about the future prospects of the business, assessing the current state and opportunities for its improvement.
Chances never end, they always appear again. Charts cannot tell you what will happen to a company in 3 or 5 years. They simply state the facts that have happened and give each of the possible scenarios their share of probability. Everything that happens in the future, you will definitely be able to find confirmation and explanation on the chart. But only after this happens. The chart is of no practical use to a long-term investor who invests regularly.
Buy when everyone else is selling, sell when everyone else is buying
You have probably heard more than once about this model of “anti-cyclical” behavior on the stock exchange. It’s easy to say so, of course, but not so easy to do. After all, the Fomo effect is enhanced by the fact that you do not invest when everything is growing.
This statement should be interpreted as follows: the most successful purchases with further high potential profitability occur in moments of general panic, and sales - in moments of euphoria.
This in no way means that you should not buy an asset in a rising market. This point is inextricably linked with the next one and should be perceived by the investor as a whole.
Set clear goals
You should always keep your strategy in mind and set targets when purchasing an asset. If the quotes reach your target, you should sell.
For example, you found an interesting company with a low P/E=3, analyzed its profit growth rate and decided to buy. Set a benchmark and write down that when P/E rises above 5 or 7, you take profit and forget about this asset. You can use any multipliers that are convenient for you, which in one way or another can help you determine some fair price targets and notice in time a slowdown in dynamics.
As a rule, when a company begins to grow rapidly, its shares are picked up by other participants. You can sell and watch further inertial growth until others begin to realize that the stock is already overheated and the potential for further growth has been exhausted. While everyone did not realize this and bought according to the FOMO principle, you managed to sell them this asset and fix your profit.
As for buying during a fall, there are also some nuances here. Not everything is good and beyond potential that has fallen. You need to understand the root causes. If we are not talking about fundamental factors indicating a deterioration in the company’s business, then you must determine for yourself at what level the share price will become attractive. If we are talking about a company that pays good dividends year after year and firmly follows its dividend policy, then we calculate the dividend yield.
For example, she pays 5 rubles for 1 share, which was worth 50 rubles on the stock exchange just yesterday. Those. The yield on dividend payments was 10%. And today, suddenly, according to some rumors, the share began to cost 30 rubles with an approved 5 ruble annual dividend. At this price, its yield is already 16.6%.
Of course, this is one special case and one article cannot consider all possible market situations. They are all unique, but have a lot in common - human behavioral psychology. You simply must not allow either euphoria or panic to deflect you from your intended course.
If you have no ideas for investing, wait
The great Wall Street trader Jesse Livermore said that big money waits. One day there may come a day when you discover no more interesting and undervalued stocks. There will be very few of them, and the markets will storm to new heights.
If you do not find stocks that fit into your strategy, then the most correct decision would be to increase the cash in your account, i.e. increase your cash position, or close some positions in stocks that have grown significantly and transfer to bonds. And wait for the right moment. It will definitely come, and you will find out about it when the crowd is screaming about the next funeral of the stock market. This will be your chance, which you deserve.
Your strategy is everything
If you already understand a certain area and have learned to analyze companies, set goals and understand the future prospects of the company, then continue to develop in this direction.
Every day, hundreds of new financial instruments, synthetic exchange-traded funds and innovative technologies are born in the financial world, promising high returns and automation of all investment processes. There is no need to chase after all this speculative zoo. Become the best at what you understand. Be independent and not be influenced by others.
Conclusion
FOMO is a very real and common feeling among people of all ages. Everyone feels some level of FOMO at different times in their lives. If you feel like you're suffering from FOMO, it can be helpful to reach out to other investors (about FOMO and how they deal with it). Activities like this can help us put things into perspective as we gain a greater sense of belonging with experienced traders and eliminate the fear of “missing out.”
FOMO Techniques Used in Internet Marketing
The obsessive fear of missing out gives rise to many spontaneous actions. This state is sublimated in online activity, where emotions are the main tool. Let's look at how FOMO is used in internet marketing using specific techniques.
Urgency
Time pressure is a technique that forces a person to act urgently. People with FOMO tend to make impulse purchases. They are afraid of missing out on time because they are more concerned with the idea of loss than gain. Countdown timers, emotional headlines and slogans, and announcements about limited time deals are appropriate here.
Example:
Household appliances store Technosila uses a countdown timer to advertise Cyber Monday. The counter changes in real time, we see the emotional trigger “Don’t miss it!” and day limit. The advertiser communicates that the sale will end soon, thereby creating a feeling of scarcity and prompting users to take action.
Product limitations
If a product or service is available in limited quantities, it can really create a hook and become valuable. This technique is used when you need to convince people that they will miss out on something very profitable if they do not buy it right now. People tend to want things that will soon disappear. Therefore, we set up flashing buttons on widgets, pop-up reminder windows about sales, and triggers about product shortages.
Example:
Hotel booking service Booking.com has long used FOMO in its offerings. Browse your search results for Barcelona hotels. Pay attention to the triggers: “In demand”, “Only 5 rooms left” - a hint that rooms will soon run out, “Booked 34 times in the last 24 hours” - a hint of the hotel’s popularity, “7 users are currently viewing the page” - a hint of demand .
Social exchange
Reception is concerned with motivating customers through product sharing. Flash mobs, marathons and competitions - all this maintains user interest. In exchange for gifts, people are ready to communicate, recommend, repost and like. The thirst for winning will attract attention to the company, and the mutual activity of users will help you get to know the product better.
Example:
Tech blogger Vilsakom and Rocketbank launched a cool competition. To attract new customers to the bank, they announced a drawing for the Rocket X gaming computer with unusual conditions. The trick of the competition is in an original presentation - people assemble a new PC worth 350,000 rubles, offering a configuration and selecting the components themselves. The competition was more than successful: the bank received 23,743 clients, and Vilsack received more than 800.
Exclusive
A technique that creates conditions for the exclusivity of the offer. The desire to be different, to belong to a closed community is another model of FOMO manifestation. People want to be featured - this increases rankings, generates activity and increases conversions. Users with FOMO syndrome react to limited access to a product, closed groups, and VIP offers.
Example:
Good old Black Friday, which everyone loves: shops, shopaholics, and marketers. Blackfridaysale.ru clearly illustrates the FOMO technique in advertising. On November 23 at 19.00 all items will be sold out, which encourages purchasing. There is a shortage of time and goods. The uniqueness of the offer is that you cannot get a discount without registering. And the sale itself is presented as an exclusive robbery, where you can feel like you’re “in the action.”
Technique No. 10. Introduce restrictions on gifts
Users get used to the fact that stores constantly give gifts, discounts or coupons for something, for example, for subscribing to a newsletter or a brand’s social network. Therefore, they expect to see some new offer every time they visit the site. Some even remember promotions on different sites so they can take advantage of the offers later.
To encourage users to take advantage of the special offer right away, set expiration dates. For example, that a coupon must be activated within a few days, or that a promotional code for a purchase will expire in a few hours.
This gives the client a reason to take advantage of the offer now, rather than wait for an opportunity. After all, the opportunity is right now!
“I want to live as beautifully as they do”: Fire Festival case
Brands love to create an ideal life on Instagram. Subscribers immediately want to try this lifestyle, but this requires money.
The FOMO method of creating recognizable visual content was used by the organizers of Fire Festival, the most anticipated event of 2017, which could become an analogue of the Coachella music festival.
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Fire Festival was supposed to take place in the spring of 2022 on one of the Bahamas. Event organizer—and fraudster—Billy McFarland raised $27.7 million , promising to create an epic event, and launched ticket sales. Moreover, their cost ranged from $500 to $1.5 thousand.
The idea was that festival visitors could live these days as beautifully as Instagram influencers live every day. Focusing specifically on visual advertising, Fire Festival posted “delicious” pictures and collabs with celebrities on its Instagram. Among others, Bella Hadid, Emily Ratajkowski and Kendall Jenner were involved in the promotion. In addition, an impressive promotional video was shot:
On the day before the festival, April 27, a thunderstorm raged on the island with a terrible downpour. All tents and mattresses were soaked in the rain, so guests who arrived later were unable to accommodate them. Otherwise, the quality of the organization also left much to be desired, musicians began to refuse to participate, and the festival turned into “the greatest party that never took place.”
Netflix made a documentary based on this incident.
Participants filed a class action lawsuit against the organizers, but by 2021, in total, they received only $7,720 out of $2 million. So FOMO can play a cruel joke on consumers who are chasing the sweet dream of becoming a celebrity for a couple of days.
Reward for quick solutions
Freebies are a good way to attract the public. However, you can make it even more effective by limiting these freebies. Offline, this tactic is used by stores offering a gift or special discount for the first 100 customers, which usually results in lines of hundreds of people.
On the Internet, we advise you to follow the example of the online grocery store GS Market and offer a gift to the first 100 customers:
Exit Pop-Up
Exit Pop-Up is a window that appears on the screen when a person tries to close the site. You can customize any picture and message that will be displayed to each client. Here we are not talking about subscriptions using email, but about one-time offers.
To take this to the level of FOMO, when trying to close the site, offer your customers a one-time bonus, gift, promotional code, exclusive discounts here and now - which they cannot refuse. The offer must be truly valuable so that it pleases the person and not irritates him. Set a timer so he makes this decision quickly.
Below is an example of this element from Booking. While filling out your hotel reservation information, if at any point you try to close the window, you will receive the following message:
Why this is a good example:
- visually the window does not look like an advertising banner;
- such a pop-up contains an attractive offer;
- the appeal is directed to you, and not to all site visitors, which psychologically shows an individual approach.
Competent arguments are given why you should not hesitate to book.
How to be on the same page with others in real time: Airbnb case
In 2013, University of Essex psychologist Andrew Przybylski conducted a study on FOMO. He defined a person's experience of this phenomenon as follows: I am afraid that someone may gain valuable experience, but I cannot. I strive to stay in tune with what others are doing.
This side of FOMO has never been stronger than after Airbnb its massive Experiences campaign in 2016. The brand went beyond the accommodation booking platform and invited users to sell their most vivid impressions and share unforgettable experiences from exotic countries.
It is thanks to Experiences that we can buy such unique experiences of people from different parts of the world as:
- meditation with a Japanese Buddhist monk (Japan, from $14 per person)
- making noodles with grandma (Italy, $38 per person)
- mindful yoga with an Olympic athlete (Latvia, from $25 per person)
- master class on making mezcal and tequila (Mexico, from $30 per person)
You can share your experience, say, of Ukrainian ukulele playing directly on the company’s website. Currently, more than 4 thousand Experiences from 50 countries are available on the platform.
At the start of the campaign, Airbnb marketers used different communication channels - Instagram, IG Stories, targeted advertising, media and TV. The implementation of the strategy was successful - the brand attracted 172 thousand followers on Instagram in 2016. Currently, 174 thousand posts can be found #AirbnbExperiences
Experiences are a great way for Airbnb marketers to think outside the box. They captured people's need for belonging, which could be caused by the feeling of loneliness and isolation that arises in the context of digitalization of social space.
We recommend reading:
Book Review
How cereal brought Airbnb its first investment
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Showcase what other people are buying
In the most effective cases, feelings can be influenced even without advertising as such - simply by communicating facts. Today, websites often contain live updated information about product sales, as in this example from Lamoda:
The page displays the number of people who bought the same dress
If website visitors see others actively purchasing your brand's products, they will want to buy them too.
Below is the same technique on the landing page in the form of a simple counter:
The counter shows how many people have already chosen this service
This counter is a type of social proof: it shows customers that if other people buy from you, then your product or service can be trusted.
Wholesale is cheaper
Finally, let’s show another example of how people buy more at a time.
You can show not only the retail price, but also wholesale prices if customers can immediately buy more than one copy of your products.
Yes, of course, if you sell refrigerators, then an ordinary person will not buy 5 pieces, but if you have small everyday goods that we buy periodically, why not offer it? For example, three phone cases or two sets of batteries, or maybe two electric kettles - for yourself and for a gift. If the discount is noticeable, in order not to miss this chance to save, a person will be psychologically inclined to order from you in small bulk.
The global online lingerie store Victoria's Secret has already succeeded in this small wholesale format. They sell multiples at a significant discount.
They offer to buy 5 panties at once at a discount, and you can choose different colors. The FOMO Marketing Goddesses work there!
Aliexpress also gives small discounts when ordering multiple units.
Good in moderation
Manage customer attention with FOMO marketing: create a time constraint for purchasing, limit quantity, give an exclusive and personalized offer - turn all hesitant customers into impatient buyers!
Just don’t use all of the above methods at the same time - this will undermine the buyer’s trust and cause the opposite effect.
If you are not sure that you correctly applied all the techniques to push the client to buy, write to us. We will analyze your website and give recommendations on what techniques your online store needs and how to implement them correctly.
Promote the experience
Another way to use FOMO is to allow your users to help others. The ability to create user-generated content (UGC) encourages customers to more actively share their experiences with your products and services. And real evidence from real people is much more attractive than any of your advertising campaigns.
Decathlon customers leave their UGC by sharing photos of themselves using the purchased product in action:
