One in eight word-of-mouth interactions results in consumer sales — some $6 trillion in annual consumer spending, according to a new study. The research from the Word of Mouth Marketing Association (WOMMA) — paid for by agency and brand sponsors, including AT&T, Discovery Communications, Intuit, PepsiCo and Weight Watchers — says the study was based on “sophisticated econometric modeling of sales and marketing data provided by participating brands on a confidential basis.” The study came from “consumer word of mouth” in six categories — telecommunications, food, beverage, software, personal services and television — through online and offline consumer conversations and recommendations. Read more…
by Ed Keller Each December, CBS’s Chief Research Officer Dave Poltrack addresses the UBS Annual Global Media and Communications Conference. This year’s talk, “The Outlook for the Broadcast Networks,” covered a wide range of topics, including social TV: “Nothing was hotter this year than social media with Twitter front and center with its IPO,” according to Poltrack. “Television programs and televised events have always been a major source of conversation. With the emergence of the online social media we are seeing how much these subjects dominate people’s non-personal interaction.” Then, in what might have been a surprise to the investors in the audience, Poltrack made this strong statement: “However, the real action is not online, it is still face-to-face.” And the correlation statistics he shared bear this out. To begin,
Social TV – Does it Draw New Viewers? New Research Sheds Important Light.
Social TV has become a very hot topic of late, with media companies and advertisers both interested in understanding what role is has in drawing in new viewers and engaging current ones. Keller Fay recently conducted a in depth research for the CRE (Council for Research Excellence). A statistical analysis from that research was recently released and reveals an important insight for TV marketers: Social media plays a significantly different role depending on whether people are repeat viewers of a program (i.e., those who watch regularly or at occasionally) vs. those who watch infrequently (including non-viewers). Read more.
First posted on Forbes.com By Ed Keller July 25 2012 A new study reveals that you don’t need a big company advertising budget to drive sales—face-to-face word of mouth among friends and family drive more purchases than any other purchase influence. It’s an insight of vital importance to every small business owner. Just how important are personal recommendations? They are the #1 driver of consumer purchase decisions at every stage of the purchase cycle, across multiple product categories. That’s according to just released research that my firm conducted on behalf of RewardStream , a provider of viral marketing, social referral, social loyalty, traditional loyalty and engagement solutions for some of the world’s most esteemed brands. Here are some of the key findings from the research: Personal recommendations are the number
- Published in WOM and Advertising
By Ed Keller In Steve Jobs, Walter Isaacson talks about the seven industries that Steve Jobs revolutionized: personal computers, animated movies, music, phones, tablet computing, digital publishing, and retailing. As we approach Thanksgiving and “Black Friday,” the most important day in retail, let’s consider how the Apple Stores changed business retail, which is the topic of Chapter 29 in the Jobs biography. It’s easy to forget how dismissive experts were when Apple decided to enter the retail business in 2001. “Maybe it’s time for Steve Jobs to stop thinking quite so differently,” wrote Business Week. Of course, the Apple Stores went on to achieve record breaking success, despite such doubts, because they had a mission that was about more than providing a place for transactions with customers. Jobs envisioned the
Thanks to WOMMA for creating this infographic on “The Word and the World of Customers: Word of Mouth Marketing Offline and Online.” We at Keller Fay are pleased to see our research featured, along with others.
By Ed Keller Two research studies about the importance of word of mouth in China came to my attention recently. One was by Initiative and the other by TNS. These come on top of a 2010 article in the Harvard Business Review on “The Power of Word of Mouth in China” by two McKinsey consultants who say, “Physical or virtual, word-of-mouth is an essential brand-building tool for companies in China.” To gain a better understanding about word of mouth and social media in China, I had a discussion with Asit Gupta. After 17 years with multinational companies like Procter & Gamble, British American Tobacco, and DDB Advertising – in India, Russia, UK and Greater China — Gupta recently started Advocacy, a word of mouth marketing company in China,. Advocacy is
The CEO of Zappos Tony Hsieh has 1.8 million followers on Twitter. In many marketing circles, he is something of a Twitter god, using the Twitter feed to promote Zappos and his way of thinking about business (as expressed in his book, Delivering Happiness: A Path to Profits, Passion, and Purpose) to his many followers. Imagine my surprise, then, when I saw a TV interview with Hsieh, in which he said he dislikes the term social media. In fact, he dislikes it so much that anyone who uses it around him at Zappos owes him a dollar. It’s not just the use of the term social media; it’s the whole idea of it. “We have never had a strategy for Twitter or Facebook. . . So many companies are chasing
In his keynote speech to the Advertising Research Foundation’s recent media conference, New York Times columnist David Brooks talked about key themes from his new book, The Social Animal, that relate to marketing. He told the audience of nearly 700 that he believes the primacy of emotion is one of the three most important “foundations” coming out of scientific inquiry in the fields of neuroscience and psychology. “Emotions are central to how we think and to the wiring of the fibers of the brain,” he said. At the same conference, I presented a paper with MediaVest’s Emily Vanides on the topic, “Conversation Triggers: Sparking Conversation with Advertising and Media.” Consistent with the point made by Brooks, our research shows that strong emotional content is key to people’s desire to pass
How do we know word of mouth drives sales? An important answer to this question comes from a new study that demonstrates the increasing importance of word of mouth as consumers get closer to making a purchase decision. Word of mouth advocacy has become a central objective for most marketers, and positive “WOM” is increasingly understood to be a leading contributor, ultimately, to sales. Separately, marketers and media planners use the concept of a “purchase funnel,” or “path to purchase,” as an organizing structure around which to craft messaging strategy. Despite advertisers’ intense focus both on word of mouth and on the path to purchase, there has been little focus on the relationship between these two “independent” marketing constructs: How does WOM dynamically change throughout the path to purchase? What
NEWS & INSIGHTS
- One in eight word-of-mouth interactions results...
Ed Keller Receives Accolades for his Lifetime Achievement, Thought-leadership, Entrepreneurship and EducationKeller Fay Group is proud to announce some big ...
- Chevrolet found viral gold with #Chevyguy and #...