The Placebo Affect*

Everybody already knows how powerful the brain is. Take a sugar pill that’s supposed to be a powerful medicine and watch your symptoms disappear. Have a surgeon not perform bypass surgery on your heart (link.) and discover that the angina that has been crippling you vanishes.

The placebo effect is not just for sick people anymore.

Why do some ideas have more currency than others? Because we believe they should. When Chris Anderson or Malcolm Gladwell writes about something, it’s a better idea because they wrote about it.

Even as your culture of ideas and marketing enters its long-tail, open-source, low-barrier, everyone-has-a-blog era of mass publication, we still need filters. Would your iPod sound as sweet if everyone else had a Rio? Would your Manolo Blahniks be as cool if everyone else were wearing Keds?

Arthur Anderson audited thousands of companies, and those audits gave us confidence in those companies, made them appear more solid, which, not surprisingly, made them more solid. Then, post Enron, the placebo effect disappeared. Same companies, same auditors, but suddenly those companies appeared LESS solid, which made them less solid.

The magic of the placebo effect lies in the fact that you can’t do it to yourself. You need an accomplice. Someone in authority who will voluntarily tell you a story.

That’s what marketers do. We have the  “placebo affect.” (* The knack for creating placebos.) Of course, we need to persuade ourselves that it’s morally and ethically and financially okay to  participate in something as unmeasurable as the placebo effect. The effect is controversial and it goes largely unspoken. Very rarely do we come to meetings and say, “well, here’s our cool new PBX for Fortune 1000 companies. It’s exactly the same as the last model, except the phones are designed by frog design so they’re cooler and more approachable and people are more likely to invest a few minutes in learning how to use them, so customer satisfaction will go up and we’ll sell more, even though it’s precisely the same technology we were selling yesterday.”

Very rarely do vodka marketers tell the truth and say, “here’s our new vodka, which we buy in bulk from the same distillery that produces vodka for $8 a bottle. Ours is going to cost $35 a bottle and come in a really, really nice bottle and our ads will persuade laddies that this will help them in the dating department… nudge, nudge, know what I mean, nudge, nudge…”

It would be surprising to meet a monk or a talmudic scholar or a minister who would say, “yes, we burn the incense or turn down the lights or ring these bells or light these candles as a way of creating a room where people are more likely to believe in their prayers,” but of course that’s exactly what they’re doing. (and you know what? there's nothing wrong with that.)

It’s easier to get people to come to a meeting about clock speed and warranty failure analysis than it is to have a session about storytelling.

We don’t like to admit that we tell stories, that we’re in the placebo business. Instead, we tell ourselves about features and benefits as a way to rationalize our desire to to help our customers by allowing them to lie to themselves.

The design of your blog or your package or your outfit is nothing but an affect designed to create the placebo effect. The sound Dasani water makes when you open the bottle is more of the same. It’s all storytelling. It’s all lies.

Not that there’s anything wrong with that.

In fact, your marketplace insists on it.