#735 – Rory Sutherland – Hidden Psychology Of The World’s Best Advertising | Modern Wisdom

Intro

In this episode of the “Modern Wisdom” podcast, host Chris Williamson interviews Rory Sutherland, a leading consumer behavior expert and vice-chairman of Ogilvy advertising. They delve into the hidden psychology behind the world’s best advertising and explore various topics, including dating apps, engagement rings, creativity, and Twitter’s rebranding. With his classic British energy and psychological insights, Rory Sutherland offers valuable perspectives on human behavior and problem-solving.

Main Takeaways

The Psychology of Status and Comparison

• Rory Sutherland discusses the concept of a “rich man” and the humorous quote that defines it.
• Comparison is the enemy of happiness, a curse for all humankind.
• The status game is a terrifying invisible force that drives us, and we pretend we’re not playing it.
• The famous quote by Aristotle and Assis about status seeking and the worth of money if there were no women.

The Flaws in Filtering and Recruitment

• The property market behaves differently from markets for other products such as iron or energy.
• The market for graduate recruits, first jobs, property, and dating all share a fundamental problem.
• The use of proxies like university degrees as filters can lead to the dismissal of individuals with exceptional talents.
• Degrees and academic achievements are increasingly becoming positional goods, creating hyper-competition and signaling commitment rather than true ability.

The Challenges of Dating and Finding Value

• The first filter in dating, similar to job recruitment, is often based on educational qualifications.
• Online dating sites and apps have changed the dating landscape, but the first criterion for acceptance or rejection remains a significant factor.
• The initial filtration phase for hiring, property, and relationships may not capture what truly makes someone valuable or appealing.
• Attractiveness and value in employees, models, and partners are not solely determined by static photographs or initial criteria.

The Power of Comedy and Creativity

• Comedy provides insights into human behavior and recontextualization.
• Comedy could be a source of inspiration for problem-solving.
• Comedians excel in crowd work and have exceptional speed in their delivery.
• There are two forms of creativity: sheer innate genius and hyper-accelerated rationality.

Reimagining Advertising and Problem-Solving

• Advertising works through costly signaling and attention to small details.
• Testing and experimentation are crucial in uncovering consumer behavior and preferences.
• To solve problems, think like Darwin, not Newton – focus on how things change, not how they are.
• Change doesn’t happen instantly; it requires starting from the current situation and playing the hand you’re dealt.

Summary

The Psychology of Status and Comparison

Rory Sutherland delves into the fascinating world of status and comparison, highlighting how they impact human behavior. He shares humorous quotes and anecdotes that shed light on our obsession with status and the negative effects of comparison. Sutherland emphasizes the importance of understanding these psychological forces in advertising and marketing to create effective campaigns.

The Flaws in Filtering and Recruitment

Sutherland discusses the flaws in filtering systems used in various markets, such as property and recruitment. He explores how the use of proxies like university degrees can lead to the dismissal of individuals with exceptional talents. Sutherland challenges the traditional approach to filtering and highlights the need for a more nuanced and open-minded evaluation of individuals’ abilities and potential.

The Challenges of Dating and Finding Value

Examining the dating landscape, Sutherland points out the limitations of relying solely on educational qualifications as a filtering criterion. He discusses how online dating apps have changed the game but haven’t eliminated the initial emphasis on educational background. Sutherland suggests that true value and attractiveness in partners and employees are not solely determined by superficial criteria and highlights the importance of long-term exposure and familiarity.

The Power of Comedy and Creativity

Sutherland explores the connection between comedy, creativity, and problem-solving. He discusses how comedians provide unique insights into human behavior and how their creative process can inspire new approaches to solving problems. Sutherland highlights the importance of speed, adaptability, and recontextualization in comedy and suggests that these qualities can be valuable in various fields beyond entertainment.

Reimagining Advertising and Problem-Solving

Sutherland shares his insights into the world of advertising and problem-solving. He discusses the power of small details and experimentation in creating effective advertising campaigns. Sutherland encourages a Darwinian approach to problem-solving, focusing on understanding how things change over time rather than relying on fixed theories. He emphasizes the importance of adaptability and open-mindedness in finding innovative solutions.

Conclusion

Rory Sutherland’s interview on the “Modern Wisdom” podcast offers valuable insights into the hidden psychology behind advertising and human behavior. From the impact of status and comparison to the flaws in filtering systems and the power of comedy and creativity, Sutherland’s perspectives challenge traditional approaches and provide fresh ideas for problem-solving. Whether you’re in the advertising industry or simply interested in understanding human behavior, this episode provides thought-provoking insights.