Does Money Make You Happier? Yes.

I came across an interesting study today by Gardner and Oswald (2007), Money and mental wellbeing: A longitudinal study of medium-sized lottery wins.

In short they tested if people who had a medium sized lottery win (approx. $3,000 - $300,000) were happier. They did the study under quasi-experimental conditions, including creating a sample size large enough to make the findings reliable. In short they found people who won money in lotteries were psychologically happier as a result of their win - even up to two years later.

A financial windfall made people happier. From what I remembered most evidence before this study suggested that people have a rough set point of happiness, and that after a little bit of initial euphoria most people return back to their set point. This study has some pretty significant implications.

Consider the psychological impact K Rudd's Stimulus Package. Even, the most ardent Rudd detractor will have to admit that we came though the GFC with flying results. What has perhaps been underestimated is the impact of not just having an extra $900.00, but how good it felt receiving it. If receiving a financial win fall makes you happier, then the Australian government dished out a lot of happiness in 2009! Unfortunately, the nations happiness is not tracked nearly as accurately as our financial well-being - so the psychological impact of the stimulus package may never be known.

Any thoughts? Agree / Disagree?

Post script: Here's an article I wrote for The Punch, a little longer - but similar theme.

Are You Happy?

This map was done by Adrian White at the University of Leicester (2009). It's a sobering snapshot of a largely unhappy world.

Action Advertising Over Emotional Advertising

I've spoken previously many times about the importance of getting people to ACT and not just RECEIVE a message. The whole industry has been hijacked by ad agencies flogging 'emotional advertising' ('Lovemark anyone?') for too long. The choice has always been is it emotional or rational advertising (for the record if you're after passive advertising demand both).

That is, connect at an 'emotional' level and that would result in behavioural change (Action). However, there is an alternative I call 'Action Advertising'. This is advertising with a goal of jumping straight to Action. The thinking being, get someone to ACT and they'll then build a stronger emotional connection with your brand anyway (for the reason why see previous blog posts).

There are a number of reasons, we still don't see much of this style of advertising:

a) Arrogance: Advertising encouraging Action is seen by many ad agencies (and clients) as promotional (I remember the head of a multi-national agency in Melbourne telling me once 'Adam we don't do that form of advertising here'.

b) Ignorance: Very few people in advertising agencies have studied behavioural change. They study advertising.

c) Technology: Up until recently we haven't been able to encourage Action so easily. We've showed 'advertising' that was passively received. It seemed futile to encourage someone to ACT at 7.30pm lying in front of the TV after a hard day.

Advertising that asks for action is still only a tiny proportion of all communications created. So things are going to change, but slowly. And the biggest barrier to encouraging action, as a client recently pointed out to me is that it's plain and simple difficult. Relatively, it's not that hard to create a TV ad that interrupts people's enjoyment. However, it's extremely difficult to create something so compelling that people choose to interACT with it. To do this we need bigger and better ideas, and therefore bigger and better human understanding.

Finally, here is an example how not to do it. It's worth noting that now ALL media is interactive. All media can encourage immediate action with a phone number, SMS, QR code, URL, Twitter, etc.

However, just because you should doesn't mean you can! Check out this ad above. It asks you to push a button, I don't know why. I pushed it a few times but nothing happened. Like I said, encouraging ACTION is difficult - but when you get an idea good enough to inspire action it will reward you well.

Mr Whippy Driven Out of Cottesloe!?!

I've begun 2010 in my hometown of Perth, only to hear some very concerning news - Mr Whippy is being driven out of the Town of Cottesloe (my local beach). You see Mr Whippy is what the Cottesloe Town Council describe as a 'Street Trader' and there will be absolutely no street trading in Cottesloe. The council has put it's foot down.

Rudely, Mr Whippy occasionally enters Cottesloe from neighbouring Nedlands and Mosman Park, and in the Cottesloe councillors own words "we are onto him". Mr Whippy cannot and will not to lure kids with Green Sleeves and ice-cream in Cottesloe. The council also mentioned annoyances such as volume levels and disturbing the peace.

Is Mr Whippy just another victim of a town hell bent on regulating everything. This feels like a council drunk on its own power. To the people on the Cottesloe town council relax. 'Colour and community' is what you should be striving for not 'order and control'.

If there are any progressive community minded people living in Cottesloe you only need between 100 and 200 votes to get elected onto the council - and perhaps one day Mr Whippy will again be able to roam free.