Proof that advertising gets us talking
We already know that conversations about brands directly affect sales and marketing effectiveness. But what makes people talk or tweet about a brand? What makes brands into shared topics of conversation? And where do those conversations take place? The answer has been revealed by new research examining what creates word of mouth (WoM).
The ‘POETIC’ research – ‘Paid, Owned, Earned: TV’s Influence Calculated’ – by Data2Decisions, the marketing effectiveness consultancy, and Thinkbox looked at the intricate relationship between ‘paid media’ (advertising), ‘owned media’ (primarily brand websites), and ‘earned media’ (WoM).
It econometrically analysed what brand activities create new, ‘earned’ WoM in addition to the heritage, market and seasonal factors which make up the ongoing ‘base’ level of brand conversation, some of which will have been influenced by previous brand activity.
The research revealed the factors that create additional WoM for brands. They are, in order of influence:
- TV advertising: creates 51% of additional WoM
- PR/Events/Brand news: 19%
- Online search, display and affiliate site advertising: 12%
- Changes to brand products or services: 9%
- Print advertising: 4%
- Outdoor advertising: 2%
- Direct Mail: 1.5%
- Cinema advertising: 1%
- Radio advertising: 0.5%
This means that, in total, paid-for advertising is responsible for almost three quarters (72%) of the total additional WoM about brands offline (e.g. in person or over the phone) or online.
The POETIC study analysed over half a million data points for 36 brands across three marketing categories – retail, finance, and drink – including data from word of mouth specialists Keller Fay, YouGov’s social media monitor Brandwatch, and data directly from brands.
Data from Keller Fay also suggests that an overwhelming majority of brand conversations (90%) are conducted offline. Data2Decisions’ ‘POETIC’ study echoed this and found that over 95% of brand conversations in its sample took place offline and YouGov’s Brandwatch data, which tracks social media comments, validates this finding and suggests that the number of online conversations is significantly smaller in comparison to offline.
“Word of mouth can be marketing magic,” says Neil Mortensen, Research and Planning Director, Thinkbox, “but paid advertising’s causal effect is often overlooked with too much emphasis put on what is easily counted or highly visible – where the conversation happens rather than what drove it.
“This research has revealed for the first time what actually stimulates people’s brand conversations and it is clear that investment in advertising – and especially TV – is key to getting people to talk about your brand positively.”
Katherine Munford, Director at Data2Decisions added: “While conversations naturally occur as consumers use products and services, brand communications generate significant word of mouth. Owned and earned online platforms amplify the effects of paid media by providing hubs for conversation, but delivering a long term impact is best achieved via paid media – with the audio-visual power of TV being especially powerful.”