HOW FOMO IMPACTS OUR BEHAVIOR

The fear of missing out (FOMO) is an emotional response to the belief that other people are living better, more satisfying lives or that important opportunities are being missed. The noun was added to the Oxford English Dictionary in 2013 and is now widely accepted.  

FOMO is not simply a byproduct of modern culture. According to the explanation of Adam and Eve in Genesis, the serpent explained to Eve, “…when you eat from it, your eyes will be opened, and you will be like God, knowing good and evil.” This biblical fear of missing out sent humankind out of the Garden of Eden into a very different environment.

Many thinkers throughout history have recognized FOMO as an influence on human behavior. The French philosopher Montesquieu addressed the problem when he opined, “If one only wished to be happy, this could be easily accomplished; but we wish to be happier than other people and this is always difficult, for we believe others to be happier than they are.” Skip forward to Erica Jong who weighed in with, “Jealousy is all the fun you think they had.” Lastly, the financial guru, Naved Abdali reasoned that, “Fear of missing out is more powerful than fear of losing what you already have.”

FOMO was first recognized as a powerful, modern, psychological force in the field of advertising. Researchers in marketing discovered that strategies to intensify FOMO dramatically increased sales. Examples include AT&T’s “Don’t be Left Behind” campaign to convince mobile phone users to join their network and Duracell’s “Stay in Charge” advertising that persuaded users to use their batteries or suffer unnecessary consequences. FOMO advertising has always been used to increase sales of “sin” products like tobacco, alcohol, and gambling. New automobile, movie, book, and music releases tap into FOMO, as do the clothing companies, particularly athletic wear and sneakers.

With the advent of social media, FOMO has taken on a larger role in our lives. Studies have determined that those who utilize Facebook, Instagram, and Twitter become addicted to constantly checking their devices to avoid missing out. A 2021 poll concluded that 51% of social media users logged in more frequently than they did two years previously, often first thing in the morning and before falling asleep.

Seven out of ten millennials experience social media-driven FOMO, the most of any age group. Moreover, millennials are more likely to intentionally create FOMO among their peers by posting suggestive, over-the-top information about their activities. Child psychologists are concerned that social media FOMO is adversely affecting the mental health of impressionable teenagers.

In 2023, FOMO has gone ballistic in many aspects of our lives. Social scientists believe that the pandemic was a significant cause. First, the months of being cloistered at home dramatically increased the number of those who became addicted to social media platforms. Second, after the pandemic wound down, there was a rush to experience all that had been left undone during the health crisis. FOMO was exaggerated by 24/7 social media posts that reminded us what we had missed. Below I will highlight several examples that have occurred this year.

Taylor Swift. No illustration of FOMO in 2023 could compete with singer Taylor Swift’s Eras Tour, her first following the pandemic. Over 2.4 million tickets were sold on the first day, shattering the previous record. Many eager fans were denied tickets and were overcome with FOMO.

The Eras Tour elevated the money-making potential of the sold-out concerts by revitalizing local hotels, businesses, and restaurants. The concert venues attracted large crowds of non-ticket holders just to purchase Taylor Swift merchandise and listen to the music from a distance. Each local concert has dominated the national social media causing additional FOMO. US sales estimates put Swift's earnings at an average of $ 13.6 million a show. In the secondary market, the parents of young girls were paying over $2 thousand a ticket to make sure their daughters would not experience FOMO.  

Travel. Following the pandemic travel has been all about making up for lost time to visit family and to plan bucket list experiences made desirable in social media. Trips to celebrate milestones that occurred during the shutdown are also popular. In recent polling, very few travelers indicated that inflation, gas prices, or the higher cost of plane tickets would interfere with their plans to catch up on missed opportunities. Not even large crowds at popular destinations or inconvenient flight disruptions have deterred those who fear missing out.

The Stock Market. FOMO has been a major factor in explaining the meteoric rise in the 2023 stock market. Many were predicting a down year in January due to inflation and recession fears. Out of nowhere, artificial intelligence began dominating the news leading to a handful of stocks doubling in value. The buying spree soon spread to other areas. The rapid rise escalated buyer momentum fed by investor fear of missing out.

The stock market averages are now well above where many financial advisors feel comfortable. Nonetheless, new money continues to flow into the market. Because interest rates, inflation, and recession remain major concerns, things could end badly if the market suddenly retreats.

Psychologists point to one simple cure for FOMO, whether it involves social media, leisure time, or investing. Have a plan and stick to it. You will then be happier and less influenced by decisions others are making in their lives.