Word of mouth advertising is expected to enjoy a surge in popularity as advertisers cotton on to the potential of the “friends and family” media and how it can be used in conjunction with the internet.
According to estimates from eMarketer, about half of all online marketers are engaging in some form of word of mouth or viral campaign, with the number predicted to increase.
However, despite the healthy performance forecast for the media, eMarketer claims that no one has yet managed to measure the defining numbers for word of mouth marketing.
Geoff Ramsey, eMarketer chief executive officer and author of the new Word of Mouth Marketing report explained: “While online advertising and all of its many subcategories such as search have dozens of metrics defining their size, shape and growth rates, no one has locked down defining numbers for word of mouth marketing. It has been the hidden statistic.”
Now, however, in partnership with the Word of Mouth Marketing Association (WOMMA), eMarketer has published research showing measurable data for the marketing medium.
Andy Sernovitz, chief executive officer of WOMMA said: “Word of mouth has always been there, and it’s always been the thing that gets us to buy. What’s exciting is that marketers can finally do something to harness this power and measure the results. Word of Mouth has moved from anecdotal to actionable.”
Research from consulting firm McKinsey claims that approximately two-thirds of all economic activity in the US is influenced by shared opinions about a product, brand or service.
This finding is confirmed by research from other companies, showing that Americans are far more likely to turn to family, friends and other personal “experts” than to use traditional media for ideas and information about products and services.
A study released at the start of this year by BIGresearch confirmed word of mouth’s influence on consumer purchasing habits, showing that word of mouth tended to be the biggest factor in the product consideration process for apparel, electronic and home improvement materials (see Research Emphasises Power Of Word Of Mouth).
UK research published in April last year, by media agency Mediaedge:cia, also urged advertisers to exploit the influences of word of mouth as an integral part of marketing campaigns. The study showed that over three quarters of respondents cited word of mouth as their main influence when deciding whether or not to purchase a product, while only 15% claimed that advertising helped them to make a decision.
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