Word of Mouth AdvocacyA New Key to Advertising

Effectiveness

Source : Journal of Advertising Research

Presented By - Rajalaxmi

IntroductionAs social marketing is reaching its peak, a new terminology ‘Word of Mouth’ has come into the limelight.

A popular example, the Old

Spice Campaign.

The emphasis on sharing – an

impact on the design

of advertising campaigns.

Joe Tripodi, Coca Cola Chief Marketing Officer emphasizes on expressions.

Source : Journal of Advertising Research

Measuring WOM HolisticallyOccurrence of these expressions - face to face(75%), voice to voice(15%), online(10%).

An average American consumer engages in 9

offline conversations/10

brand conversations/day.

The objective - to create advertisements that spark conversation, which would lead persuasion of the prospect and eventually to a purchase.

Source : Journal of Advertising Research

WOM Drives SalesConversations about brands have

a powerful impact on people.

58 percent of consumers attribute

high credibility to the information

they hear during a WOM conversation.

50 percent say they are very likely to buy as a result of that conversation.

AT&T conducted a research and discovered that WOM was one of the most powerful metrics directly influencing its sales(more than 10%).

Source : Journal of Advertising Research

Word of Mouth Makes Advertising Work Better

A 2009 research indicated that 20 percent of WOM discussions refer to paid advertising in media.

Advertising-influenced conversations - more likely to involve recommendations to buy.

3.8 billion instances every week in America -

consumers exposed to brands

through WOM conversations

that are sparked by

advertisements.Source : Journal of Advertising

Research

Industry % of WOM

Influenced

by AdvertisingMedia/Entertainment 31

Telecommunications 29

Personal Care/Beauty 28

Technology 27

Automotive 27

The Home 27

Household Products 26

Retail/Apparel 25

All Category Average 25

Travel Services 25

Food/Dining 24

Children’s Products 23

Beverages 22

Sports/Hobbies 21

Financial Services 19

Type of Ad % Referenced in WOM

Television Ad 11.4Internet Ad 4.5Newspaper Ad 4.0Magazine Ad 3.0Radio Ad 2.0Billboard Ad 1.7Any Other Ad 2.8

Source : Journal of Advertising Research

Source : Journal of Advertising Research