Hype is a word that many people use to describe a new product or a trend that is becoming popular. It is also a term that is used by experts to describe how a technology or invention may progress through various stages of development before becoming a successful commercially viable product.
Hype cycles are often used by companies to help them understand how to evaluate emerging technologies before deciding to invest in them. This type of analysis can save companies time, money and resources by allowing them to make informed decisions about whether to invest in a technology.
The hype cycle is a good way to gauge the potential for a technology to be successful, but it can also be dangerous. For example, the hype cycle can cause businesses to overlook opportunities or underestimate their risks.
When applied in the wrong moment, hype can doom a startup.
While hype is an important marketing strategy, it should be avoided as much as possible until a company has built a strong base of users and a robust flywheel for growth.
This is because hype distorts the way a community evolves. For example, if you apply hype too early in the life of a network, it can make it difficult to predict how consumers will engage once the buzz subsides.
For example, when hype hit Snapchat, the product and growth loops were already maturing, and it was easier to anticipate how the new users would engage with Snap’s messaging and advertising.
However, when hype came to Color, the network was still very young and the product was just beginning to build its air pocket. The hype distorted how Color was building its users and the products it was offering, which can be devastating to a new format.
Similarly, hype can be used as a tactic to drive sales by convincing consumers that they are missing out on something valuable by not buying into the latest trend. For example, Supreme has been successful in using hype as a way to drive sales of its branded bricks and crowbars.
In order to achieve the desired results, hype must be formulated with careful thought and research. This means determining the right mix of content, message and collaborators.
A strong understanding of consumer psychology, especially as it pertains to Millenials and Gen Z, is essential when utilizing hype as a marketing strategy. This is because hype is an incredibly effective tool for generating interest and encouraging sales for brands, but only when used correctly.
When a brand combines hype with other marketing strategies, such as social media and email marketing, the result can be hugely successful. For example, the popularity of social networks such as Twitter and Instagram has allowed these platforms to generate a significant amount of hype around them.