Word of mouth ppt
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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