The Placebo Industry
The "Placebo Industry” is booming. It’s not about real solutions, but about giving people something to feel better. A spot on a "Top 10 Hotels of 2025" list? Instant validation. Something to show the world. A report from consultants. Progress. This is what we are "going to do." A "brand awareness" marketing campaign. Visit Norway used to spend a big part of their marketing on big signs on Times Square. Looks good.
Carbon offsetting? A warm, fuzzy feeling of doing your part, without actually changing anything.
Most things that cost more are only better because they make us feel better. We tell ourselves the higher price means superior quality, but it’s just a placebo. We want to feel like we’re making the right choices, even when they don’t actually deliver.
People need something to show. Social proof. An article in the local paper is proof because the people you account for are reading it. Most likely your guests don’t. A picture of an ad on Times Square is strong, symbolic. It
Take luxury status symbols, for example. You buy something expensive not because it’s truly better, but because it makes you feel successful. It’s about looking successful, not actually being successful. But many people still feel better.
Consider the latest wellness retreats that promise transformation. Those detox teas that claim to cleanse your body, but are nothing more than marketing fluff. The promise? A quick fix. In the short run. Fantastic feeling. Because of placebo. In the long run? Nothing changes.
Self-help books and apps are another huge part of the placebo industry. A daily dose of positive affirmations or the latest self-help guru's advice is comforting, but how much real change comes from reading or listening to someone tell you to "believe in yourself"? A temporary emotional high, but not the lasting change you're hoping for.
You know the thing about expensive red wines. Experts can’t separate the pricey ones from the cheap ones in a blind test. But when it costs more, it feels better. The high price tag convinces us it’s superior, because we associate value with cost. It’s not the quality, it’s the emotional lift we get from spending more.
The same goes for eco-friendly labels that make you feel virtuous about your purchases, even when the product doesn’t live up to the claims. You’ve checked the box, felt good, and moved on.
No real transformation, just a quick emotional lift.
These are all part of a larger trend. The Placebo Industry thrives by offering illusions of progress, tricking us into thinking we’ve done something meaningful. But in the end, it's all just a placebo. At least very often.
This is very common in the public sector. Their goal is often to spend all their money to make sure their budget isn't lower next year. Meaning, the DMO's (Destination Management Organizations) might not always be in the best hands when they are public. I have no stats, but there ar many things that indicate that the best decisions ins’t always made.
But that is another article.
