Ed Keller, Keller Fay Group and David Shiffman, MediaVest looked at how you can integrate WOM into your traditional advertising mix.
First to speak was David Shiffman. WOM has gone beyond the discussion of how we can define it, to measurement and strategy. Research estimates that there are 3.5 billion word of mouth conversations each day in America. That's a big number. How do you get a handle on/measure/engage with a number that big. Obviously firms want to know what people are saying about them.
The current trends indicate a decreasing amount of trust in brands among customers. In 1999 it was 71%, in 2006 it's at 63%.
Overall though, WOM Is gaining in advertising. Word or mouth is essential to rebuilding trust.
The new landscape, specifically with blogs, social networks, etc is now powered by conversation. In some ways this echoes the social marketplace that existing in the 1800's. Looking at today's marketplace, the successful brands: Google, Starbucks, Red Bull, etc are built upon word of mouth.
Its important to remember that WOM is not replacing or beating advertising, it's a partnership. It has to be considered in a larger context within the advertising/marketing campaign.
Real customers are you best evangelists. People find WOM coming from real customers to be more credible, are more likely to be passed along and be acted upon.
The role of advertising has changed. In basic terms it used to be delivering a message to a consumer. Today, it's about reaching influencers, building awareness, sharing, conversation and consumer advocacy.
There are three rules: Identify & Engage Influencers (think NetFlix), Inspire & Reward Advocacy (Swiffer), Measure & Learn (Measure)
The last item is increasingly important. What are the business outcomes and how do you measure your success? WOM is measurable, both offline and online.
Next up was Ed Keller. Ed spoke about the 2007 Super Bowl ads. What does a large advertising event like the Super Bowl do for WOM? The Kelly Fay group conducted research prior-to and after the Super Bowl to measure the impact. They conducted 3,500 interviews before the game and 2,700 after the game.
During the month prior to the Super Bowl, brands involved in advertising during the game had 5.4% of all brand conversations, after they game they were part of 6.4%. That's a 15%increase. From a raw number standpoint that's 148.4 million conversations before and 170.4 million conversations after the game.
WOM about Super Bowl advertisers was much more positive (61%) than negative (10%) before the game and this ratio improved after the game (63% to 8%).
People talking about the Super Bowl advertisers' brands were 55% more likely after the game to refer to the advertisers' TV commercial. Although many of the advertisers included an internet component. However, there was no significant increase in WOM online, in fact it decreased.
As the WOM grows, post Super Bowl, the chance of conversations leading to purchasing decisions increases as well.
Obviously the Monday after the game shows the biggest increase in WOM related to the brands, but that steadily returns to normal levels after the game. Coca-Cola, Bud Light, Taco Bell and Honda enjoyed the highest increase in WOM after the game.
Lessons learned: WOM and advertising can work together. Advertising is frequently referenced in WOM. Advertising works best for WOM when it targets influencers, uses consumer-speak (not market-speak) and is portable.
Advertisers should rethink their objectives - aim for current customers. Give them the language and motivation to recommend.
