New report: The State of Creative Effectiveness
GET IT NOW"We need to stop interrupting what people are interested in and be what people are interested in.”
— Craig Davis, Co-founder of Sendle
According to Harvard Business School, 95% of purchase decisions happen subconsciously.
It’s an advertising adage to know thy customer. It’s easy to understand why — the more you understand your customer’s motivations for buying and what they want next, the better you can position your products to satisfy their demands. Ultimately, that's why consumer behavior is the real driver behind effective advertising today.
Of course, it’s not easy to understand millions of people’s buying habits and how they change.
According to McKinsey, today’s consumers are splurging more than saving thanks in part to a financially gloomy Gen Z outlook.The McKinsey report also found younger audiences in Asia and the Middle East opt for higher-priced goods than those in the West.
We do know that today’s consumers are more segmented than ever before. Brands like Pepsi and Clorox use modern consumer insights tools to craft ads that resonate with customers.
Imagine testing ad campaign ideas before you commit to creating an entire campaign. That’s what’s possible with today’s online market research tools.
In this article, I’ll share how to better understand how consumer behavior influences decisions, some expert insights and modern strategies.
Consumer behavior refers to how people choose, buy, use, and eventually discard products and services. In advertising, understanding these behaviors is critical. No matter how eye-catching or clever an ad is, it won’t work unless it connects with how people actually think, feel, and make decisions.
Today’s consumers expect more from the brands they engage with. They’re drawn to personalized experiences, quick solutions, and brands that align with their values. Advertising is only effective when it reflects these evolving expectations. When you understand what drives people, you can create messages that truly resonate.
Advertising doesn’t just respond to consumer behavior. It can actually influence it. The best campaigns do this by speaking to both emotional and rational sides of the brain.
Emotional triggers: Many ads are designed to make us feel something. Whether it’s joy, nostalgia, or empathy, tapping into emotions can help move people to take action or remember a brand.
Rational appeals: On the other hand, facts and logic still matter, especially for more considered purchases. Highlighting product features, value, or benefits can help people justify their decision.
Social proof and testimonials: We’re social creatures, so it’s no surprise that recommendations from others often influence what we buy. Testimonials, reviews, and user-generated content can build trust and encourage action.
If you’ve been in marketing for longer than a month, you recognize the complexity of customer behavior. It’s emotion-driven. Writer, author and speaker Seth Godin says, “People do not buy goods and services. They buy relationships, stories, and magic.”
What does this mean to you, the marketer? It means it’s time to bring out the stories and use them to create the environment your customer craves. Imagine the difference between a Ralph Lauren boutique and a Shein store. One offers fantasies of country estates and polo games on a sunny afternoon. The other offers a cheap top.
In Buyology, Truth and Lies About What We Buy, author Martin Lindstrom explores the psychology behind consumer behavior. He dedicates chapter six to the reliance on rituals and comfort. What makes someone choose Apple over a PC? Oreos over the store brand of cookie? Successful brands tap into our subconscious.
From Buyology,
“Senior business director, Mike Faherty, once said, “Oreo is not just a cookie, it’s a ritual. Dunking Oreo cookies in milk is part of the American fabric.” Therefore, people don’t simply choose Oreos because of the cookie, they choose Oreos for the experience and the comforting ritual that has created an emotional bond between the consumer and the brand.”
Is your brand part of a ritual? Does it evoke emotion? Successful advertising helps the consumer feel something and drives behavior.
Get more on consumer behavior by watching our podcast episode with Richard Shotton, behavioral scientist, author of The Choice Factory & founder of Astroten:
Advertisers study consumer behavior to create product innovations and successful advertising campaigns. Here are four proven ways to connect consumer behavior with effective advertising campaigns.
Brands like PepsiCo and McDonald’s constantly innovate to keep their consumers returning. From new snack concepts to new milkshake flavors, these brands use modern AI tools for real-time customer feedback on concepts and marketing campaigns.
Consistent brand research helps brands stay relevant and ahead of consumer trends. For example, the holidays are a time of nostalgia for many, which is why it was a no-brainer for British supermarket Sainsbury and Roald Dahl’s Big Friendly Giant to collaborate on a “BIG Christmas” campaign. And, it’s on-brand and relevant.
Online survey panels and other audience segment tools help savvy advertisers tap into their customer’s interests and behavior. Define what you want to test and then find the right audience to test those ideas.
For example, similar to the point above, audience selection will help you test new ideas, new products or even Super Bowl ads with your target audience for more effective advertising campaigns.
“Great marketing means knowing your audience, talking to your target personas, and building your content strategy around them.”
– Rocío Arrarte, EMEA senior marketing manager at Diligent
Pricing is complicated. It’s far more than your tangible costs. According to Katharine Paine, speaker, author and consultant to Fortune 500 companies: “Pricing is the most critical component to maximizing your revenue. Harvard studies have found that a 1% improvement in your pricing can add up to 11% to your profits. With bad pricing, you’re missing out on profits in every transaction that you make, not to mention the deals that you completely miss out on. Pricing is also a big factor in your branding and reputation. Prices that are too high can make you come off as arrogant, while prices that are too low can call the quality of your product into question (would you eat a steak that only costs $3?." How much will your customers pay for your new product? In the past, you’d have to rely on trial and error. However, you can now test pricing before rolling out an entire campaign.
95% of new products fail a year. But, the good news is you can improve your brand’s efforts with smart product research. If brands like McDonald’s are using customer insights, why shouldn’t you to guide and refine your next winning product idea?
“For a new shake flavor, I analyze the drivers of interest & purchase in all the shakes we’ve tested before. I can see how consumers play those concepts back, & what they want us to do differently. There’s a lot I can do easily with the data set.”
- Matt Cahill, Senior Director, Consumer Insights Activation at McDonald's
Knowing how people behave as consumers helps brands make better advertising decisions. It’s not just about what to say, but also where, when, and how to say it.
Audience segmentation: Behavioral data helps marketers move beyond basic demographics and target audiences based on habits, preferences or values.
Media selection: Different channels cater to different behaviors. For example, TikTok might be ideal for spontaneous or trend-driven purchases, while LinkedIn is better suited for professional decision-making.
Creative messaging: When ad messages reflect the way people shop or think about a product, they feel more relevant. Whether it's humor, practicality or storytelling, aligning the message with consumer behavior increases the chance it will land well.
It almost goes without saying that emotion is at the root of buying. People buy things to feel good (retail therapy), to show their social status and to feel like they belong.
However, some purchases require more thought than others. While human behavior is rarely linear, we can still learn from these four typical behaviors for common patterns that influence how ads should be crafted:
Habitual buying behavior: These are routine purchases with low involvement, like groceries or toothpaste. Ads that focus on brand familiarity and consistency work best here.
Dissonance-reducing buying behavior: This happens when the purchase is important, but the differences between brands feel minimal. Insurance is a good example. In these cases, ads should aim to reassure people and build trust.
Variety-seeking behavior: Some products, like snacks or beverages, fall into a category where people enjoy trying different options. Ads that highlight newness or offer a sense of fun can attract these buyers.
Complex buying behavior: These purchases involve a lot of thought and a high level of brand differentiation (think: luxury cars or expensive tech). Advertising should combine emotional storytelling with detailed information to help consumers make confident choices.
Few people buy a new car on impulse, though they are willing to try new drink flavors without much thought. Understand how your products fit into your consumer’s buying behavior and use their behavior to improve your advertising.
People want plenty of details for high-priced products. For example, car brands can create a trustworthy buying experience that puts the consumer at ease by sharing detailed product descriptions, specifications and comparisons to similar products.
Highlight the benefits of your product over similar ones. Use testimonials and reviews to show other happy customers.
Offer personal assistance. You can use human-powered chatbots to answer questions and help potential customers make the right decision.
Over time, this becomes your brand.
“Your brand name is only good as your reputation.”
– Sir Richard Branson, CEO, Virgin
Electronics, engagements, lawn equipment—many higher-priced items might appear the same to the untrained eye.
Your role as a marketer is to build trust. This happens in two ways.
Testimonials and reviews
Helpful follow-up messages
If your prospective customers are debating new flooring or a luxury bag, they’re wondering what their friends and family will think. They want reassurance.
According to DemandSage, 95% of consumers look to online reviews before buying. 49% of consumers trust those reviews, and 60% believe having a lot of reviews is important.
Social proof builds trust.
Other ways to build trust include offering guarantees and generous return policies. You’ve probably heard the legendary story about a customer who returned a set of tires to the luxury department store Nordstrom. Nordstrom graciously accepted the tires even though it doesn’t sell tires.
It’s always cheaper to maintain existing customers than attract new ones. When it comes to habitual buying behavior, these tend to be repeat purchases like a brand of toothpaste or soap. Successful marketing to existing customers includes:
Maintain consistent messaging and packaging for instant recognition
Use loyalty programs or special promotions
Offer recurring subscriptions if applicable
These customers crave variety in their purchases, so give it to them. You can introduce new product innovations regularly. Give them limited-time offers to encourage urgency like these holiday seasonal collaborations.
You can also make personalized suggestions based on past purchases to keep your customers engaged.
Find out which elements make for a successful seasonal innovation and which you should watch out for based on consumer research.
When you understand what drives your audience, you can make better decisions across your entire ad strategy. Here’s what the experts suggest:
“Consumers are more likely to trust a local business if they see positive reviews, accurate business info, and consistent brand messaging.” —
BrightLocal, Consumer Review Survey
Define audience segments using behavioral insights Go beyond demographics and look at interests, routines, and past actions.
Balance emotional and rational messaging Test different angles to see what performs best for your product or audience.
Choose media channels based on behavior Think about where your audience spends time and what they're doing when they’re there.
Incorporate social proof Use testimonials, customer reviews, or influencer content to build credibility.
Use real-time feedback to adapt Track how people respond and adjust your approach based on what’s working now.
Consumer behavior continues to evolve, and advertising strategies are changing with it. Here are a few trends making a big impact:
AI and predictive analytics: Advertisers now use AI to better understand customer behavior and predict what people might want or need next. This helps create more targeted and timely campaigns.
Ethical consumerism: More people are choosing brands based on their values. Ads that clearly communicate transparency, sustainability, or inclusivity are more likely to connect with today’s conscious consumers.
People-based marketing: Instead of relying on broad demographics, marketers are now targeting individuals based on specific behaviors, preferences and interests.
Social listening and feedback loops: Brands are tuning into conversations online and using real-time feedback from surveys, social platforms and communities to guide their messaging.
Even with more data and better tools, aligning advertising with real behavior isn’t always easy. A few common hurdles include:
Fast-changing trends: Consumer interests can shift quickly. What worked last quarter might not land today.
Privacy restrictions: Regulations like GDPR and Apple’s iOS updates have limited access to behavioral data. This makes it harder to target ads precisely and puts more pressure on first-party data.
Cognitive biases: People don’t always make logical decisions. Biases like sticking with what’s familiar or only seeking out information that confirms existing beliefs can affect how ads are received.
Ad fatigue: With so many ads competing for attention, even well-targeted campaigns can get ignored. Keeping creative fresh and using smart retargeting strategies is key.
Brands that understand their customers’ behavior have a competitive advantage.
AI-informed consumer insights tools give brands the power to build in continuous learning loops for ideas, products and ad campaigns. This data-informed knowledge is really what gives marketers the edge to produce more effective advertising.
Learn how generative AI combined with a high-impact data system will shift the balance of power between insights and marketing.