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Word of Mouth Advocacy
          A New Key to Advertising
               Effectiveness

Presented By -
        Rajalaxmi

                    Source : Journal of Advertising
                              Research
Introduction
As 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 Holistically
Occurrence 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
                Source : Journal of Advertising
purchase.                 Research
WOM Drives Sales
Conversations 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 Advertising
Media/Entertainment         31
Telecommunications          29
Personal Care/Beauty        28   Type of Ad                  % Referenced
Technology                  27                               in WOM
Automotive                  27
                                 Television Ad                      11.4
The Home                    27   Internet Ad                         4.5
Household Products          26   Newspaper Ad                        4.0
Retail/Apparel              25   Magazine Ad                        3.0
All Category Average        25   Radio Ad                           2.0
                                 Billboard Ad                       1.7
Travel Services             25
                                 Any Other Ad                       2.8
Food/Dining                 24
Children’s Products         23
Beverages                   22
Sports/Hobbies              21          Source : Journal of Advertising
                                                  Research
Financial Services          19
Source : Journal of Advertising
          Research

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Word of mouth ppt

  • 1. Word of Mouth Advocacy A New Key to Advertising Effectiveness Presented By - Rajalaxmi Source : Journal of Advertising Research
  • 2. Introduction As 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
  • 3. Measuring WOM Holistically Occurrence 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 Source : Journal of Advertising purchase. Research
  • 4. WOM Drives Sales Conversations 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
  • 5. 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
  • 6. Industry % of WOM Influenced by Advertising Media/Entertainment 31 Telecommunications 29 Personal Care/Beauty 28 Type of Ad % Referenced Technology 27 in WOM Automotive 27 Television Ad 11.4 The Home 27 Internet Ad 4.5 Household Products 26 Newspaper Ad 4.0 Retail/Apparel 25 Magazine Ad 3.0 All Category Average 25 Radio Ad 2.0 Billboard Ad 1.7 Travel Services 25 Any Other Ad 2.8 Food/Dining 24 Children’s Products 23 Beverages 22 Sports/Hobbies 21 Source : Journal of Advertising Research Financial Services 19
  • 7. Source : Journal of Advertising Research