Why businesses need to embrace humour

Times are tough for a lot of people.

The fight against inflation is far from over. The UK inflation rate crept back up to 2.2% in July (better than expected, but hardly an encouraging sign). Prices are still considerably higher than they were two or three years ago. That’s having a real impact on the finances of everyday Britons.

According to our own recently conducted research, more than a third of consumers feel anxious about their current economic circumstances. Among consumers aged 35 to 54, that figure rises as high as 42%.

As an ad agency, we tend to see that when the national mood becomes troubled and sombre, a lot of businesses - from banks to supermarkets – act as a mirror. They reflect that serious sentiment in their own communications. As president of that ad agency, I’m here to explain why that’s a mistake.

Counter the mood

It’s not surprising that businesses feel their brands should match the mood of the nation - none will want to come across as insensitive or out of touch with the challenges consumers face. So of course, it’s safest to lean in and echo their fears and concerns.

But that belies the real role consumers want brands to play in their lives. Rather than amplify the gloom, they are actively looking for brands to serve as a counterweight. In these times of rampant anxiety, they want brands to entertain them.

We see this desire come through in our research. Amid high levels of unease, over half of consumers (54%) say they would be more likely to choose a brand that uses humour ahead of its rivals, even in a serious category like financial services. Entertainment is an antidote to anxiety, and consumers are craving it as a result.

Perhaps most importantly, our research also shows that more consumers feel positive about, and take positive action in response to, brands that make them laugh, versus those which leave them feeling cold or indifferent.

This is a big deal for any business with a strong sense of purpose. No purposeful brand will want to leave consumers to wallow in their worries – they'll want to be part of the solution. If entertainment helps to drive positive behavioural change and thus improve lives, it’s a tool these brands cannot overlook.

On the other hand, stressed consumers tend to avoid making decisions. Their anxieties cause them to seek stability, and that can manifest in an unwillingness to try new brands or make significant purchases. For any business hoping to win new customers, that’s a serious cause for concern.

But brands can alleviate that stress and give consumers comfort by triggering positive emotions instead. As recent Kantar analysis has shown, ads that leave consumers feeling good are four times more likely to drive long-term brand equity and four times more likely to generate impact.

And how better to make consumers feel good than to make them laugh?

Mean something

What’s more, 11% of those polled feel that a funny brand ‘understands’ them better. Humour humanises a business, makes it seem approachable and relatable, and presents a side that consumers can connect with during uneasy times.

A humorous approach can also break the ice and make it easier to start conversations about sensitive topics, and it can be an effective vehicle to communicate complex topics in a digestible way.

In short, humour creates space to instil more meaning into brands. Released from complexity, brands can instead focus on communicating the values they stand for and the purpose of their existence. Alongside salience and distinctiveness, we believe brand meaning is one of the most critical drivers of competitive advantage today.

Already, there are some excellent examples of unexpected businesses using humour to achieve success.

There’s software firm Workday’s recent ‘The Rockstars of Business’ campaign, starring rock icons Billy Idol, Travis Barker and Gwen Stefani. The campaign reportedly increased brand consideration by 65% and boosted lead growth by 50%, alongside a 21.3% increase in share price.

And there’s the likes of Specsavers. Optical health and humour don’t necessarily feel like the most natural fit, but Specsavers has been driving rapid growth for decades with its comedic approach. Other businesses can do the same.

The power to cut through

Studies by Oracle and Kantar have reinforced humour’s effectiveness in enhancing distinctiveness, engagement, memorability and persuasiveness.

But the reality is, most businesses aren’t brave enough to use it. That most likely includes your competitors. So, if you need further persuading, know this - humour is a powerful way to cut through that sea of sameness, differentiate your business within the market, drive distinctiveness, and build the memory structures that lead to long-term brand growth.

That said, it’s true that humour isn’t right for every business in every circumstance. It needs to be handled carefully - with intention, sensitivity, and a strong understanding of the customer. To deliver this, a good agency partnership helps.

In trying to mirror consumers’ moods, many businesses are only making them feel worse. For others, that marks a powerful opportunity to do the opposite.