Marketers! New study details the growing role of ethics in modern advertising

Whether the calendar reads 1924 or 2024, the marketing industry has always been about generating interest and excitement about a given product, service, or brand. The methods of accomplishing that goal, on the other hand, have transformed tremendously over the past century or so.

Newspaper advertisements and gigantic billboards were superseded by digital marketing and social media years ago. Nowadays most companies are far more concerned with “going viral” online than anything taking place in the real world, and it’s tough to argue with that marketing mindset. Digital media represents an absolute cornucopia of ways to connect with potential new customers and create buzz.

Now, however, a new study just published in the Journal of Business Research is shining a light on an often overlooked aspect of modern advertising practices: the ethics of marketing. Put another way, just because a brand can market themselves using certain tactics, doesn’t necessarily mean they should. Let’s dive further into the findings. 

FOMO, brand passion, & compulsive spending

Put together by scientists at the University of Plymouth, this project focused on how FOMO (fear of missing out) and intense brand passion are promoting compulsive buying tendencies among many, many people. Of course, with exorbitant spending eventually comes financial stress, debt, and anxiety. 

After surveying a cohort of over 500 consumers, study authors determined that the specific type of passion a person feels for a particular brand or organization can play a major role in triggering compulsive spending. FOMO was also identified as a significant contributing factor.

“Our study reveals that while the fear of missing out can drive strong connections with brands, it also has the potential to fuel harmful spending habits, especially among younger consumers,” says Yuksel Ekinci, Professor of Marketing and Sales at the University of Portsmouth, in a press release.

Harmonious passion & Obsessive passion

While most marketers spend all day trying to build more passionate followers on social media and customers in real-life, the study breaks down how not all passion is the same. Here are the two most influential varieties of passion:

• Harmonious passion: This type of passion is characterized by people enjoying and engaging with a brand in a healthy, balanced way.

• Obsessive passion: This type of passion, on the other hand, often leads to a brand actually dictating the actions of consumers, which eventually can lead to impulsive purchases – even if such decisions ultimately foster financial regret and stress.

Obsessive brand passion driven by a fear of missing out is usually a very strong predictor of compulsive buying, especially among younger consumers. Adolescents and young adults typically feel greater social pressure to buy the latest trends and fads online.

While that always rang true to a certain extent, modern platforms like Instagram and TikTok have made it easier than ever before for marketers to conjure up an inflated sense of urgency while advertising online. Flash sales, limited-time offers, and idealized customer experiences are just a few examples of how today’s companies are manufacturing a compelling sense of FOMO among shoppers. 

More specific examples include recent frenzies surrounding the sale of tickets for Taylor Swift’s and Beyoncé’s 2023 tours; tons of fans dropped everything else in their lives to secure tickets. Researchers explain many of these fans were likely motivated by FOMO that had been further exacerbated by viral content depicting outfits and setlists. 

Moreover, researchers stress FOMO can significantly impact psychological well-being, social connections, and financial health. Close to half of millennials admit to amassing debt just to “keep up” with their peers. This pressure to keep up is usually driven by FOMO, motivating people to buy things they don’t need just to fit in or not feel like a pariah.

Enter the ethics of modern marketing

Ethics and marketing hardly go hand-in-hand in the minds of most people, but study authors posit it’s time that the marketing industry as a whole acknowledge the part it plays in promoting such unhealthy consumer behaviors. Fostering healthier varieties of brand passion via more ethical marketing tactics will ultimately benefit both consumers and companies greatly in the long run.

“It’s crucial that brands acknowledge their role in shaping consumer behavior and adopt more ethical approaches that encourage healthy, harmonious passion rather than obsessive purchasing,” Prof. Ekinci explains. 

“Our study reveals that while the fear of missing out can drive strong connections with brands, it also has the potential to fuel harmful spending habits, especially among younger consumers. It’s crucial that brands acknowledge their role in shaping consumer behavior and adopt more ethical approaches that encourage healthy, harmonious passion rather than obsessive purchasing.”

How can this be accomplished? The research team explains that for the average modern marketer, it’s absolutely essential to fully grasp how to responsibly engage with consumers driven by FOMO and passion. The emphasis here is on responsibly. When a brand promotes harmonious passion, it leads to healthier buying habits and loyal customers who enjoy their purchases without all the unnecessary regret and debt. Meanwhile, if a brand does encourage obsessive passion (as frequently seen with fast fashion, instant services), such tactics must be implemented extremely carefully. This is especially true when it comes to the targeting of younger audiences.

Here are a few ethical tips marketers may want to keep in mind:

• Create urgency, but do so without pushing customers into unhealthy or unrealistic buying habits. 

• Offer transparency while also focusing on sustainability. Don’t just go for quick sales. 

• Promote responsible consumption, and emphasize quality over quantity. 

• Build community spaces where people can share their experiences with brands in a balanced, transparent manner. 

In conclusion, this work highlights the dark side of FOMO-driven marketing approaches that have become so prevalent today. All in all, study authors believe brand managers and marketing departments must be more accountable for the content and campaigns they produce. Today’s companies have a responsibility to young consumers to balance out their marketing strategies. When people buy and enjoy their favorite brands in a healthy, fulfilling way, it can both improve day-to-day well-being and foster robust, long-term brand loyalty.