We like to think that people make their buying decisions by comparing prices, reading reviews and choosing the best option based on the information given. In reality, a large part of the decision is made before the person even gets to the process of comparing prices and reviews.

The moment of purchase is not the place where a person is converted from scratch. Often they already have a preference. An advertisement, a search or an online shop simply helps to finalise that decision.

This is confirmed by WPP Media and the Oxford University Saïd Business School’s ‘How Humans Decide’ study, which analysed over 1.2 million shopping journeys in 47 countries. The study’s central finding is simple: people’s purchasing decisions are shaped by previous exposure to a product or service and their psychological readiness to make a purchase. The study’s conclusion shows that branding plays a crucial role in the process of selling a product or service.

Most purchasing decisions are made before you buy

On average, the survey shows that 84% of purchases are essentially pre-decided before active shopping. People typically consider less than three brands.

This means that the moment of purchase is not where most customers are converted. If the brand is not already in people’s minds, it is difficult to increase sales in the final buying phase of a campaign.

A good example is search advertising. When a person is looking for a specific product, the decision may seem to be made on Google. In fact, they often already have a preference – they just formulate it.

Advertising displays do not automatically have an effect

In marketing, a lot is measured in terms of the display of advertising. Showing advertising is necessary, but it is even more important to monitor the number of unique advertisers (coverage) and the frequency of advertising. These indicators are important for establishing a product or service in the user’s mind.

The study stresses that user receptiveness to advertising – how receptive people are to the message at any given moment – is also important. People can see the same ad, but one will ignore it completely and another will take it as confirmation of an existing preference.

This means that a high number of ad impressions does not guarantee impact. Context is also important, as is the audience to whom the ad is reaching.

The most clicked audience may not be the best one

Gut feeling tells us that the best audience is the one that responds quickly to advertising. In fact, this can be misleading.

According to the survey, the most vulnerable people make up a small proportion of consumers. They are easily responsive, but can be just as quick to react to a competitor’s message.

Less receptive people are harder to influence, but if they already prefer your brand, they are much harder to convince. In marketing terms, this can mean stronger loyalty.

The channel is not in itself “strong”

Channels are often talked about as if they are universally good or bad. In fact, their impact depends on the context.

The study shows that people make purchasing decisions in very different ways, each person is different. Some people are influenced by advertising on a portal, some by social media, some by network advertising, some by content marketing articles. Branding needs to be strong across all channels, because choosing the right channels for the target audience can change the impact of ad strength from 20% to 47%.

So it’s not just the budget or the strength of the channel that determines the outcome, it’s also how the different touchpoints work together and how well the content of the product or service reaches people.

Advertising is not the only driver of sales

Strong branding brings a product or service to the consumer’s attention. Good advertising attracts attention. A good experience helps finalise the decision.

The survey shows that the following factors have the biggest influence on people’s purchasing decisions: 48% a recommendation from a friend, 36% reviews, 17% newsletters, 17% online advertising, 12% outdoor media and 6% radio and podcasts. (*Surprisingly, the survey does not specifically mention TV advertising.)

What marketers can learn from this

The key lesson is that marketing does not only work at the point of purchase. Brand awareness comes earlier.

If the brand is not in the consumer’s mind before the need arises, it is difficult to increase conversions.

It is also worth thinking not only about ad impressions, but also about ad frequencies and unique advertisers. Not all contacts are equal. The right touchpoints, sufficient ad frequency and the right context will create a bigger effect than simply a high number of ad impressions.

Ultimately, the purchase decision is influenced by a number of factors, but it all starts with strong branding, so that the brand perception comes before the purchase decision. Buying decisions are made on the basis of what people are already prepared to do. Good marketing doesn’t try to force a decision – it prepares it.