IPA: Media, Advertising and Word of Mouth
Ed Keller, CEO of the Keller Fay Group, explains why word of mouth and advertising are not at odds with each other but instead go hand in hand…
Who amongst us isn’t aware of the enormous buzz over social media, as brands rush to acquire friends on Facebook and develop apps for the iPhone? And we’ve all seen research that shows word of mouth is the number one influence on consumer decision making about products, services, and brands. But how much do brand marketers and the agencies that serve them really know about the dynamics of word of mouth and what it takes to generate positive brand advocacy?
It might surprise many to learn that the overwhelming majority of word of mouth takes place offline, not online. According to Keller Fay’s ongoing word of mouth research (conducted continuously in the US since 2006), more than 90% of brand-related word of mouth takes place offline (face-to-face or by phone) while less than 10% is online. This doesn’t negate the growing opportunities that social media affords, but it underscores the importance of taking a holistic approach to word of mouth planning – giving careful consideration to the full range of consumer touchpoints that are available to active consumer conversation. And, it underscores the importance of sound research to guide decision making.
In this regard, it’s important to know that advertising and word of mouth are not at odds with each other, as some had predicted a few years ago when word of mouth was touted as “the unvarnished truth” that will foreshadow the death of advertising. Rather, research shows that word of mouth and advertising can go hand in hand. Surprising amounts (close to 50%) of word of mouth conversations include references to media and marketing, with advertising leading the way. And, when advertising is discussed in word of mouth, it is 20% more likely that the conversations will include active recommendations to buy/try the brand that is being discussed. This is the type of active advocacy to which all brands aspire.
Keller Fay’s TalkTrack is being used by media, agencies, and brands in the U.S. to measure the linkage between media audiences and brand word of mouth – allowing agencies for the first time to have research which allows them to plan media for word of mouth and monitor campaign effectiveness, and allowing media owners to document the power of their audiences to drive beneficial word of mouth outcomes for current and prospective advertisers.
Taking ESPN as an example, we have documented that a brand which sponsors their National Football League telecasts received more than 90 million more conversations during the season among men who watch ESPN than among men who do not. The results link clearly to the media plan – with conversation levels rising as media weights rise, and dropping as weights drop. It’s a powerful way for ESPN to prove in new and innovative ways the impact that advertising has.
Word of mouth research can also help media owners and agencies to know which media are the most efficient or have the broadest capability to deliver word of mouth influencers. These are the friends, family, and colleagues at work whom we all know, and look to for advice and recommendations because we know if we are in the market for a new product, or a fun place to go for vacation, and want to know about the best new restaurants, they can be counted on to offer solid advice and recommendations.
Our research illustrates the power of influencers in a number of ways – they engage in 130% more brand conversations each week than the average consumer, and for certain brands it is upwards of 8 times as much conversation. They accelerate the adoption of new products. And, because they are attuned to advertising, they help to amplify marketing messages.
We have seen in the U.S. that certain media have clear advantages in delivering large numbers of catalysts for certain categories, while others offer efficiency. Our clients, such as CNN and The New York Times, are benefiting by being able to tell this powerful word of mouth story to advertisers.
We are pleased to be partnering with the IPA in bringing our research about Conversation Catalysts and word of mouth to the new, upcoming TouchPoints3 study. When the study is released in July, it will allow for media planning or ad sales based on the reach and efficiency of individual media to deliver catalysts; day part analysis will be available, which is important because we have seen, for example, that catalysts are heavier uses of media in the morning than other consumers; you will be able to analyse why catalysts use media to facilitate better messaging; and to analyse their lifestyle activities or psychographics for a richer understanding of how to appeal to this important group of consumers.
Stay tuned for more insights to come once TouchPoints is released in July. In the meanwhile, may all your buzz be positive!