The document discusses the role of advertising in word of mouth marketing. It argues that advertising can spark conversations that enable brands to spread through personal recommendations rather than direct sales pitches. Effective advertising targets influencers and current customers who are likely to discuss the brand with others. The summary provides strategies for planning advertising to give a brand direction, momentum and topics that will encourage word of mouth discussions.

1. There has been an awakening.
Understanding the role of advertising in word of mouth.
Athens | Dec 21, 2015
There has been an awakening. Understanding the
role of advertising in word of mouth. 1
Julian Erben, Strategic Planning @ BBDO Proximity Worldwide

2. Advertising Word of Mouth
The action of calling
something to the attention of
the public by paid
announcements in
newspapers and magazines,
over radio or television, on
billboards, and online.
An oral or written communication
process, between a sender and an
individual or group of receivers,
regardless of whether they share the
same social network, with the
purpose of sharing and acquiring
information, on an informal basis.*
*Ana Margarita Barreto, The word-of-mouth phenomenon in the social media era, International Journal of Market Research, 2014

3. Let’s start from the
beginning...
Athens | Dec 21, 2015
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role of advertising in word of mouth. 3

4. Katz and Lazarsfeld‘s
Two-Step Flow Model
(1955)
Athens | Dec 21, 2015
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role of advertising in word of mouth. 4
„Mass Media“
Opinion leaders
Wider population

5. „Advertising can not sell against
personal influence“
ERNST DICHTER
Athens | Dec 21, 2015
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role of advertising in word of mouth. 5

6. Athens | Dec 21, 2015
There has been an awakening. Understanding the
role of advertising in word of mouth. 6
The Mad Men…
enamoured of
their brilliant
creativity and their
ability to persuade
the mass market
through the power
of their ideas…

7. to October 2015
Athens | Dec 21, 2015
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role of advertising in word of mouth. 7

8. 8
Ad agency models are breaking.
Measurement models are outdated.
The term advertising should be dumped.
BRAD JAKEMAN, PEPSICO
Source: Adage.com, Oktober 2015
“
„

9. We live in the
too-much-
information age.
Athens | Dec 21, 2015
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role of advertising in word of mouth. 9

10. 10
IT‘S GETTING HARDER AND
HARDER TO CONTAIN
ATTENTION.

11. Athens | Dec 21, 2015
There has been an awakening. Understanding the
role of advertising in word of mouth. 11
Source: 1PageFair and Adobe 2015 Ad Blocking Report, 2Fractl & Maz, Inbounc vs. Outbound: consumer perspectives on Marketing, 09/2015
Nearly 2 in 3
millennials
(18-34) use
ad blockers2
21.8 bn in
ad revenue
blocked in
20151

12. „You have a world where a wealth of information
creates poverty of attention. The way people get
through is by turning to people they trust.“
KEN MEHLMAN
Athens | Dec 21, 2015
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role of advertising in word of mouth. 12

13. People talk.
Athens | Dec 21, 2015
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role of advertising in word of mouth. 13

14. The average American talks
each day about roughly 10
brands.*
The truth is: Brands are a major currency of conversation.
Athens | Dec 21, 2015
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role of advertising in word of mouth. 14
*Source: Keller and Fay, 2012

15. Yes, great experiences get
people talking, but...
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16. Athens | Dec 21, 2015
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Source: Keller and Fay, 2012
...so does advertising and
marketing
25%
30%
45%
telling someone about an ad
telling someone about other
forms of marketing (retail,
coupons, direct mail, PR)
other

17. There is an either-or-misperception
between advertising and WOM
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role of advertising in word of mouth. 17

18. The reality is: the typical
conversation about a brand
stimulated by advertising is
between 3 and 5 minutes in length
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Source: Keller and Fay, 2012

19. 75% occur face to face
15% happen by phone
just 10% are online
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Source: Keller and Fay, 2012
90%

20. All media are social, so is the most
effective advertising.
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21. Who are the advocates at the
centre of the conversation?
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22. Athens | Dec 21, 2015
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Influencers Current customers
BRAND ADVOCATES

23. „Not only do influencers generate far
more word of mouth than noninfluencers
do, but each message has four times
more impact on a recipient‘s purchasing
decisions“
MCKINSEY & COMPANY
Athens | Dec 21, 2015
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24. Believability
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Believablitiy of WOM
on a scale from 0 to 10 55%
25% 20%
9 to 10 7 to 8 lower than 7
Source: Keller and Fay, 2007

25. How does this impact our
understanding of the
advertising model?
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26. Half the money I spend
on advertising is
wasted; the trouble is I
don‘t know which half.
JOHN WANAMAKER
Athens | Dec 21, 2015
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“
„

27. Athens | Dec 21, 2015
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„We believe advertising works primarily by generating conversations
among informed people who then spread the news — and their
recommendations — to new customers.“
AD
Prospect
AD
Informed People
Prospect
NOT: INSTEAD:
Source: Keller and Fay, 2012

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Advertisers should target two key types of people:
Influencers
Current customers &
Advocates who are already
rallied to the cause

29. Planning to spark
and retain
conversations
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30. Athens | Dec 21, 2015
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Direction Momentum
Planning and Strategy for giving a brand...
1. Be interesting
2. Be objective
3. Be useful
4. Know your cues
1. Earn trust and respect
2. Be disruptive
3. Utilize emotion
4. Make talking easy
5. Use data[ [] ]

31. Giving a brand
direction
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32. 1. Be interesting: have a strong
brand story, and know your topics
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33. „You should try _____, it‘s _____.“
„Can you believe _____ did _____?“
„There‘s nothing better than ____ for_____.“
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34. „If bar staff can tell a story to a drink, it gets a bigger tip“
ANDY ENGLAND
EVP and CMO @ MillerCoors
Athens | Dec 21, 2015
There has been an awakening. Understanding the
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Image source: images.derberater.de

35. 2. Be objective about what
consumers need…
…from you.
Athens | Dec 21, 2015
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36. „Marketers need to stop trying to control what
their brands stand for, and listen to their
customers. We are operating in what is very much
a ‚let go‘ world.“
Ed Keller
Athens | Dec 21, 2015
There has been an awakening. Understanding the
role of advertising in word of mouth. 36

37. Athens | Dec 21, 2015
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40. 3. Be useful: communicate solutions
provide answers that consumers want to pass on to others
Athens | Dec 21, 2015
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41. Two common myths about WOM:
A) Word of mouth is only for the latest, hottest thing.“
B) The best way to get Word of mouth is through stunts and
gimmicks, such as outrageous TV ads, web-sites, PR events.
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Source: Keller and Fay, 2012

42. It’s not about the “sizzle” it’s all about the steak
Top reasons why people join BZZAgent:
• To learn about the latest products
• Because they „like being one of the first people to know about a new
product“
• Because they „enjoy sharing new products and ideas with friends and
family“
• For the opportunity to give feedback to the manufacturers of the products
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Source: Keller and Fay, 2012

44. 4. Plan to have cues.
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45. Athens | Dec 21, 2015
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46. Athens | Dec 21, 2015
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47. Athens | Dec 21, 2015
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48. Giving a brand
momentum
Athens | Dec 21, 2015
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49. 1. Earn trust and respect
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50. Athens | Dec 21, 2015
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Always be
honest.

51. Follow the rules.
1. Say who you are representing
2. Only say what you really believe
3. Never lie about who you are
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Source: Andy Sernovitz, 2015

52. Athens | Dec 21, 2015
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Say thank you

53. Go after negative WOMlers!
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54. 2. Be disruptive.
disrupt culture.
disrupt cognitive schemas.
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55. Athens | Dec 21, 2015
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85%Believe that global
brands have the
power to make the
world a better place
Source: McCann Worldgroup Study — Truth About Global Brands 2015

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57. Athens | Dec 21, 2015
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58. Athens | Dec 21, 2015
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As a fast-food restaurant
It‘s still privately held and
owned
Restaurants have never
been open on a Sunday
(„It‘s the recipe for our
success“)
Local markets with
daddy-daughter date
night
Success indeed:
43 consecutive years of
positive sales growth
2010 overall sales growth
more than 11%
More than 80% of
conversations about the
brand are positive
(category average: 66%)

59. 3. Utilize emotion.
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60. Athens | Dec 21, 2015
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61. 4. Make talking easy.
Give them words to use and things to share.
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62. 4% of conversations are about something from packaging
In 5% of conversations, people mention something from brand website
When designing websites, social, packages, coupons, newsletters: use
FORWARD thinking — make it easy to find, digest and forward.
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Source: Keller and Fay, 2012

63. 5. Use data.
And not just digital data.
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64. Four key roles:
1) to identify the influencers
2) Regular brand health tracking
3) To monitor effectiveness
4) To drive your creative
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Source: 1942 June 3, Florence Morning News, Mutt and Jeff Comic Strip, Page 7, Florence, South Carolina. (NewspaperArchive)

66. Athens | Dec 21, 2015
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Plan to have direction
Plan to have momentum
1. Be interesting
2. Be objective
3. Be useful
4. Know your cues
1. Earn trust and respect
2. Be disruptive
3. Utilize emotion
4. Make talking easy
5. Use data
Influencers
Current customers
& Advocates who
are already rallied
to the causePlan for the right target

67. Thank you
Athens | Dec 21, 2015
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role of advertising in word of mouth. 67

68. Athens | Dec 21, 2015
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Recommended for further reading:

69. Contact
Athens | Dec 21, 2015
There has been an awakening. Understanding the
role of advertising in word of mouth. 69
Julian Erben, Strategic Planning @ BBDO Proximity Worldwide
julian.erben@proximityww.com