Is It Money You're After?

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I have always been fascinated by GoPro’s marketing videos. From heart-pounding ski slopes to epic music festivals, the brand connects viewers with an emotional experience full of stunning visuals.

You’ll notice GoPro’s marketing is focused not on the camera, but on the euphoria of living life to the fullest. The camera became synonymous with this idea. When you see someone with a GoPro camera, you know that person is about to do something cool. Take a look at one of their advertisements:

Effective marketing goes beyond the actual product to some deep-rooted desire. It replaces the “what” with the “why”. GoPro's slogan is “This is your life. Be a hero”. On some level, this line appeals to almost every consumer’s dreams. It reminds me of a recent tweet from Nathan Baugh:

What GoPro has done brilliantly is sell experiences, not cameras. Don Draper said it like this in Mad Men:

Marketers are telling a story with hopes of exchanging that story for money. For the consumer, it all starts with money. We want money because it gets us something else — a home, an education, experiences, freedom.

Spending money brings us closer to meeting an emotional desire. Without anything to spend it on, money is useless. You can't consume it, you can't live in it, you can’t drive it. It’s simply paper. A means to something else. Money's uses and subsequent fulfillment manifest differently for everyone.

Maybe capturing cool videos on your GoPro satisfies an emotional desire because you can rewatch the experience anytime. Maybe posting it on Instagram for social validation does it for you. Or maybe it's simply a happy memory sitting in your brain. The point is that the money spent is far removed from the end state of happiness.

When you rewatch the video of you becoming a hero of your own adventure, you're not thinking, "Wow that GoPro was $300, my bank account really took a hit back then." You're thinking about the experience and the way it fulfilled you. Why else would you rewatch the video?

Think about some investments. The value of a stock is theoretically the present value of future cash flows. Sure, some Tesla investors are buying into the future cash flows of the carmaker. Other shareholders are contrarians and innovators who are passionate about the company's vision. This group of investors couldn’t care less about the quarterly balance sheet. Purchasing Tesla stock lets them take part in the mission without buying an expensive car.

During the GameStop mania in January 2021, Redditors unleashed pent-up resentment from the Great Recession. Not just for a chance to make money, but also to “stick it to the man” whom they believe caused their parents to lose their jobs and homes in the aftermath of 2008. Money poured into Gamestop stock and no amount was too little. A few bucks were all it took to have the emotional fulfillment of joining the cause. 

Bitcoin was born out of the same recession and the events of that era were a clear motivating factor for its creation. Whether it's a currency or an inflation hedge is irrelevant to its owners who see Bitcoin as serving a greater purpose. Early adopters envisioned a medium of exchange that would not be controlled by a central authority. The cryptocurrency became a middle finger to the suits running our financial system on Wall Street and in Washington.

These topics garner the most media attention, arguments, and debates because they tap into a deep emotional aspiration. Supporters aren't just defending a car or a currency, they are defending their worldview.

So when you hear that an asset is in a bubble or is overvalued, think about the effectiveness of the story being told. Beyond the existence of a bubble is a phenomenon much closer to our true needs. It's marketing fulfilling our deepest desires with products that for better or worse, are investments.

Although no one's saying this is a good thing. When you fasten your worldview to any product or investment, you lose the ability to view it objectively. It ends up defining us. That's why it is important to reflect on the stories we're told and remember why we invest in the first place.

Whether it's to express our values, provide for our family, or do cool stuff — the decisions we make with our wallet go deeper than its contents.

-Sam

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