The financial viral effect
Every morning I open the newspapers and read of yet again failing measures that have been taken by governments throughout the world. And every morning those measures fuel the viral effect of a panic spreading all over the globe. In the Dutch talks in parliament people are referring regularly to things like “Our people can not be left behind. If France, Germany and England are [fill in any measure to put more money in the system] then we need to follow suit.” So the panic is spreading further and markets keep falling and falling.

In marketing terms, such spreading of a message, without buying any media time, is called a viral effect. It spreads because people are talking about it. The natural reaction of people to these kinds of events is one of protection. We don’t want to leave our comfort zones and feel we are more stable if somebody else is more unstable. So the negative spiral grows and grows.

In our recent study we’ve called such an effect a network effect. Because of the interconnectedness of our world and the worldwide relations we have that span the globe we all are in touch with at least someone who is increasing the tumbling down effect.

So, without any financial knowledge, I would rather say we’ve got a PR-issue here and not a financial one at all. So instead of talking to some economists, maybe it would be wise to bring in a ad agency and give them the challenge of a lifetime: turn the negative image of my brand around!