A presentation on the emerging significance of Word Of Mouth in Advertising and Marketing.

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