WORD OF MOUTH ADVERTISING WORTH $1 BILLION
Word Of Mouth (WOM) advertising is arguably the world’s oldest form of marketing, and it’s on the rise as advertisers pour even more into this discipline.
What’s consumer word-of-mouth advocacy worth to marketers? According to AdAge.com: try $1 billion. That’s how much marketers spent on WOM in 2006, according to an independent research report on the field that will be unveiled during a session at the annual
“Word-Of-Mouth Conference” in Las Vegas today. The analysis, believed to be the first in-depth look at word of mouth, reports that spending on the emerging discipline has increased from $76 million in 2001 to $981 million in 2006 and is expected to grow to approximately $3.7 billion by 2011.
Equally important to the success of WOM marketing may be the research suggesting it is more effective than other forms of advertising. For instance, a recent Nielsen Global Survey of over 26,000 people found that nearly 78% of respondents trusted “recommendations from consumers,” a total 15% higher than the second-most credible source, newspapers. And this trust; according to some, leads to more sales at the cash register.
When you compare WOM as a strategy [to other methods], trusting a friend or influential person is the most determining factor when someone decides to purchase a product.
A ROCKING CHAIR IN A DARK ROOM
Tags: advertising, Business, James D. Webb, Marketing
“A business owner that doesn’t advertise is like an old man rocking his chair in a dark room. “He” knows what he’s doing, but nobody else does.”
JAMES D. WEBB
AIM FOR SECONDARY EXPLOSIONS
Tags: advertising, Marketing, public relations, Taco Bell
TACO BELL HITS A HOMERUN
Advertising Buy… $5.6 million, Potential Giveaway Cost: Under $1 million, Publicity Value…Priceless. That could well be the marketing brief at Taco Bell, which scored a PR home run with the promise of a free taco to any American who wants one if a base was stolen in the World Series. Luckily for those hungry masses, Red Sox rookie
Jacoby Ellsbury stole second base in the bottom of the fourth inning in the series’ second game. Taco Bell’s promotion gave every American a free taco.
According to Nielsen Monitor-Plus, Taco Bell is one of the top 10 advertisers in the series, spending $5.6 million (General Motors Corp. is the heaviest hitter, at $13.2 million).
It’s expected that figure includes all the extra airtime Taco Bell got on the broadcast — plugs from TV anchors and sports figures about the promotion and a live interview with Rob Savage, COO of Taco Bell — not to mention a mention of the promo from a player in a “candid” conversation between Sox shortstop Royce Clayton and Mr. Ellsbury the evening before the big steal.
“It’s definitely driving the conversation,” said Pete Blackshaw, CMO of Nielsen BuzzMetrics. It’s hard to argue with good buzz.
SECONDARY EXPLOSIONS
One measurement of success by our military when bombing our enemies, is the discovery of secondary explosions. Secondary explosions indicate that the bomb landed on stored vehicles/aircrafts, fuel dumps or ammunition depots… indicating maximum effectiveness for the risks and costs incurred.
Who’s talking about your product or service? While nobody’s likely to lead that effort more aggressively than you… it’s important for you to develop smart strategies that engage and encourage “others” to talk about you. Taco Bell successfully landed some secondary explosions with their advertising.
Aim your marketing, PR and advertising efforts at targets that will deliver “secondary explosions,” delivering your business maximum returns for your investment.
FUEL FOR SUCCESS
A BEAUTIFUL DAY AND A CLEAR BLUE SKY
Imagine a beautiful day, a clear blue sky, and nothing but the long road in front of you. You and the family are packed, and headed to a 5 star resort on the beach for a well-deserved vacation. You’ve worked hard to earn this time away. You’ve made preparations at the office, you’ve saved the money, you’ve asked your neighbors to watch your house and water the lawn while you’re gone, you’ve prepaid the bills that are to be due while you’re away, and you’ve made all of the necessary hotel and entertainment arrangements for the entire week of your get-away. It’s white sands and crystal clear water or bust!
Now… what if… half way there and 850 miles from your vacation destination, you decide that you’re simply not going to stop for gas anymore. It’s inconvenient to keep pulling over, it slows you down, gasoline is too expensive, and your hands smell of fumes after handling the fuel pump. By not stopping for gas, you’d remove the expense, inconvenience, and risk of getting your hands dirty, but you’d also remove any possibility of successfully making it to your vacation destination.
AFTER ALL, IT’S BETTER THAN OTHER STUFF THEY’VE SEEN
Sounds like a dimwitted decision… right? But this is exactly what I see business owners and professionals doing more often than you’d imagine. They just stop. They stop prioritizing and focusing on their marketing efforts. They stop updating their website with relevant information and inspiration. They discontinue their email marketing efforts because it’s too time consuming during their busiest season. They refrain from updating their print marketing collateral because it’s expensive, and after all… it’s better than other stuff they’ve seen… right?
JUSTIFICATION WILL SCREAM YOUR NAME
Hand-in-hand with your brand, consistent marketing is the primary source of fuel that allows you to reach your ultimate destination… a successful and profitable business. You must endure inconvenience to make it happen. Yes, there’s a price… but successful marketing is an investment, not an expense. Resist the temptation to justify your marketing neglect. “Justification” will scream your name from the sidelines of the race… “Quit, you’ve run far enough… take it easy!” But justification will not lead you to victory.
DON’T BE A DIMWIT – SOAR WITH THE BEST
Besides… if your competitors thrive, and your business fails… you’ll know a truer and more intimate definition of the words… “expense” and “inconvenience.” Don’t be a dimwit. Relentlessly fuel your business with consistent and effective marketing, and you’ll soar with the best.
THE VALUE OF ADVERTISING
There are six peaks in Europe higher than the Matterhorn… Name just one.
Get ink. Advertising is publicity. If you want publicity, advertise.