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Word of Mouth – A Prescription for a Bad
              Economy
This economy is bad…like really bad…
           y                  y
It looks like we’re in the big R…
                             g
Yikes, Advertising is taking it on the chin...




- Group M forecasts media spending down 3 2% in 2009
                                          3.2%
- Zenith Optimedia forecasts 5.7% down in 2009
- Morgan Stanley could envision a +10% drop in spending depending on the economy
How will we carve up the media pie?...




Well, we’ll be eating less media:
- 93% of CMOs believe the economy will have a significant/moderate impact on their budgets
                                  y             g                    p                g
                                                                          Source: Epsilon
- 70% of CMOs plan on reducing their marketing spending
The Long Slow Decline into Irrelevance

           Perhaps a premature
           announcement, but why
           wait.


           2009 Anticipated Declines:

             - 15% Newspapers
             - 13% Consumer Magazines
             - 10% T
                   Terrestrial R di
                         t i l Radio
             - 4% Network TV

                  Source: Jack Myers Media Report
Smart Marketers are Now Rethinking Traditionally
Held Views...
H ld Vi
Crisis requires radical shifts in thinking
         q                               g
Another
 Change
You Can
 Believe
    In Is
 Coming
 Ci
      …
Here Comes the Next Wave of Marketing & Media
                                        Media…
The Fastest Growing Marketing/Media
                   g         g
 Segments
                                  Expected 5 year 
                                  Compound Annual Growth Rate


Word of Mouth                                27%
Internet/Mobile
It     t/M bil                               14%
Branded Entertainment                        13%
Custom Publishing                            11%
Out of Home
Out of Home                                  10%

          Source: Veronis Suhler Stevenson
Word of Mouth is Catching On…in All Its Forms




   Buzz Marketing       Customer Collaboration     Social Media    Brand Communities




 Influencer Marketing     Influencer Marketing                      Referral Programs
                                                 Social Networks




                           Grassroots/Cause        Experiential         Viral 
User Generated 
                              Marketing             Marketing          Marketing
   Content
Fact - Most Traditional Media is an Inefficient Cost…




                  …Word of Mouth is a Wise Investment
Wom In A Bad Economy
Advertising Attention Deficit Hurdles




3,000 ads get pushed at us each day - 6 times the
   volume vs. 40 years ago…the tougher it is to
     breakthrough, the more we do and invest
Reason #1 – Word of Mouth Gets Noticed




‐ 4% any ad recall from last TV show          ‐ 93% of people believe word of mouth is
watched(down from 34% in 1965)  
watched(down from 34% in 1965)                the most reliable way to find out 
                                              the most reliable way to find out
                                Source: NBA   information about products and services 
                                              (up +26 pts. Vs. 25 years ago)  
‐70% of people frequently consume 
                                                                        Source: NOP World
                                                                        Source: NOP World
multiple media simultaneously   
                        Source: eMarketer
One Way
       One-Way Communication Hurdles




Customers demand interaction and customization,
             Marketers require it
Reason #2 – Word of Mouth Taps The Values of
New,
New Customer Participation Culture




                                                         Word of Mouth
                            Mass Media
  Customers Now Want:   Participation Values Grade   Participation Values Grade
  Freedom                           2/10                         9/10
  Customization                     2/10                         8/10
  Scrutiny                          3/10
                                     /                           9/10
                                                                  /
  Integrity                         2/10                         9/10
  Collaboration                     1/10                        10/10
  Entertainment
  Et ti         t                   8/10                         8/10
  Speed                             5/10                         8/10
  Innovation                        2/10                         9/10

  Evaluation Score                25/80                        70/80
In a bad economy, marketing has to punch harder
and create action…
Reason #3 – Word of Mouth Stimulates Action




                                           ‐ 70% ‐ percentage of people affected by
  ‐ 90% ‐ proportion of people who can
                                           word of mouth conversations
  skip ads, do skip ads
                                                     ‐ 37% buy it/try it
                                                     ‐ 24% consider it
  ‐ 69% ‐ percentage of people who 
                                                     ‐ 9% avoid it
  are interested in skipping ads 
                                                              Source: Keller Fay
  completely         Source: Yankelovich
       p    y
Lifetime customer value trumps short term lift
Reason #4 – Word of Mouth Has Longevity




                                              ‐ Average people have 17 word of mouth 
‐ Over 30% of the broadcast content we see 
                                              conversations each day
                                              conversations each day
in mass media is advertising or promotion
                                                        ‐ How much is interactive? High
         ‐ How much is conscious? Low
                                                        ‐ How much is spoken? High
         ‐ How much is attentive/lean 
                                                        ‐ How much is internalized? High
                                                          How much is internalized? High
                   forward? Low
                   f       d? L
                                                        ‐ How much is retained? High
         ‐ How much is well‐received? Low
                                                        ‐ How much is behaviour altering? 
         ‐ How much is retained? Low
                                                                 High
         ‐ How much is banked in
           How much is banked in 
                   memory? Virtually nil      ‐Brand Communities don’t reach full maturity 
                                              to 18 months

                                              ‐ 82% of community members refer more 
                                              people to a brand after joining
Ad inflation is running wild




    In a down economy, advertising is a tougher
           discretionary expense to justify
Reason #5 – Word of Mouth Costs Less Per Impact




                                             Choose Your Flavour:
                                             Choose Your Flavour:
‐ Cost to Prod ce a National TV Ad
  Cost to Produce a National TV Ad
                                             ‐ Year Round Community ‐ $100‐500k
     ‐ $360,000

                                             ‐ 26 week Word of Mouth Campaign ‐
                                                                        pg
‐ Min Media Cost to Air a National
  Min. Media Cost to Air a National 
                                             $40‐150k
Campaign in Canada
    ‐ $1,200,000
                                             ‐ Blog/Social Media Outreach $30‐100k
                                                  g
‐ Typical Research Cost Associated with TV
                                             ‐ Advisory Panel ‐ $15‐75k
‐Campaign
     ‐ $25,000 ‐ $100,000
       $25,000 
                                             ‐ Buzz Marketing Tactic    $5‐100k
In a bad economy, few markets increase, it’s a
            battle for share growth
Reason #6 – Word of Mouth is a Competitive Advantage




                                               ‐ Only 1‐2% of marketing budgets are
 ‐ Canadian advertisers spend $19 billion
                         p    $
                                               currently spent directly on creating word of 
 on media ‐ $674 per adult
                                               mouth
 ‐ Advertising is spent on very similar 
 formats:  TV 30
 f          TV – 30 second ad
                           dd                  ‐ Marketers are just beginning to activate 
            Print – Full page, ½ page          word of mouth variants, but still low 
            Web – Banner, Search                   ‐ Influencer programs  ‐ 22% of marketers executing 
                                                   ‐ Buzz/Stunts 15%
                                                     Buzz/Stunts ‐
            Radio – 30, 60 seconds
            R di 30 60            d
                                                   ‐ Branded Entertainment 14%

 ‐ 10% ‐ Percentage of CFOs who believe 
                                               ‐ A 7% increase in positive word of mouth 
 marketers can assess impact of budget on 
 marketers can assess impact of budget on
                                               equates to 1% business growth  
 sales
                                               Sources: VSS, Agent Wildfire, London School of Economics
 Source: Canadian Marketing Association, MMA
In today’s connected economy, grassroots
                  influence is key




 Less than 10% of your customer base controls a
big chunk of what the rest of us buy, think and do…
              why not target them?!
Reason #7 – Word of Mouth Targets Influence




 ‐ With rare e ception (i e maga ines)
   With rare exception (i.e. magazines),     ‐ 70% of Wikipedia’s content is prod ced
                                               70% of Wikipedia’s content is produced 
mainstream media has a tough time            by 1.7% of its audience
targeting audiences and specifically 
influencers                                  ‐ Top ranked Influencer belief “I love
                                               Top ranked Influencer belief – I love 
                                             talking to others about things I’ve just 
                                             discovered”

                                             ‐ Influencers are 2x more active, more 
                                             conversational and/or more brand‐
                                             involved than the mainstream consumer
                                             involved than the mainstream consumer

                                            Sources: Agent Wildfire, Keller Fay
Need for ROI for marketers in a bad economy is a
                    mantra
Reason #8 – Word of Mouth is More Measurable and
Linked to Growth




                                              ‐Word of mouth activities have much 
                                              better measurement ability because of 
‐ Mass media has challenges auditing its 
                                              their digital nature and opportunity to 
own traffic
                                              mine relationship with customer/member
                                                      l       h      h         /      b
‐ Mass media weight cannot be linked to 
                                              ‐ The #1 factor linked to business growth 
sales
                                              is word of mouth referral
                                              i     df        th f      l
‐ When measured, it only measures 
                                              ‐ Word of mouth measures the key 
presumed eyeballs not real engagement
                                              business drivers of engagement and 
                                              business drivers of engagement and
                                              advocacy 

                                            Sources: Agent Wildfire, Bain 
Trust has eroded in our institutions, a bad
      economy will accelerate this contempt




…but we still trust our friends and “people like me”
 but
                                 Source: Edelman Trust Barometer
Reason #9 – Word of Mouth is More Trusted




     ⌧60% of people have a much more         Word of mouth is the #1 trusted 
     negative view of marketing and        source, up 50% vs. a generation ago
     advertising than a few years ago
     advertising than a few years ago
                                             61% of people claim to buy the same 
     ⌧27% trust manufacturers              brands as their friends (+28 pts. Vs. 4 
                                           years ago) 
                                           years ago)
     ⌧ 14% trust ads
                                              90% trust their spouse
     ⌧ 8% trust celebrities
       8% trust celebrities 
                                              82% trust their friends
 Sources: Yankelovich/Henley Centre     Sources: Keller Fay/Yankelovich/Henley Centre
Who do you trust?
The Customer is the New Battleground
                                       Percentage of 
                                      executives who 
                                   believe the Customer 
                                     Experience is the 
                                    new battleground 
                                           ‐ 95%

                                     Percentage that 
                                     believe they are 
                                     b li      h
                                   delivering a positive 
                                   customer experience 
                                           ‐ 80%

                                    Percentage of their 
                                   customers who agree 
                                   customers who agree
                                           ‐ 8%

Word of Mouth gets you closer to your customer
                  frontlines
Reason #10 – Word of Mouth is More Customer
Centric




       Mass Media Provides:        WOM Provides:
                              Entertainment Value
  Entertainment Value
                              Informational Value
  Information Value
  Information Value
                              Explicit value (rewards)
                              Intrinsic value (feeling of belonging)
                              Extrinsic value (ego/reputation)
                                                 g     p
                              Experiential value (immersion)
                              Social value (making connections)
                              Talent value (expressing skills/creativity)
                              Service value (adds to the product)
                              Collaborative value (1+1=3)
CEOs are Expecting More From their Marketers –
   Marketers need to be Leaner and Keener




  Word of Mouth accommodates those needs
Reason #11 – Word of Mouth Simply Provides More




  Communication
  Comm nication              Communication
                             Advocacy
                             Ambassadorship
                             Buzz
                             Insight
                             Real world feedback
                             Solutions
                             S l ti
                             Innovation
                             Support
                             Operational Improvements
                             Operational Improvements
                             User Generated Content
Marketers want WOM for a variety or reasons

                      Accelerate sales 19%
                      Alt          l 19%
                                                                             Deliver visitors/traffic  17%

 Hard
                                                                       Referrals/Leads/Members 32%
 Measure
                      Provide learning 6%

                                                  Drive brand loyalty 32%

                                                                Generate user generated content  19%

                  Get Insight /solutions 10%                                    Awareness/Buzz 35%
                                                      Seed influencers 32%
 Soft                                                                        Target tough to reach audience 19%
                                                                             T          h        h di       19%
 Measure                                          Launch a product 22%

                                                                  Build a better customer experience 21%
                Support a cause 6%
                S     t         6%           Enhance credibility 14%

                                                 Participate in a conversation 26% Support a cause 6%



                                                                                           External
                      Internal
Source: Agent Wildfire                         Question ‐ What are the top 3 objectives for launching a word of mouth based initiative?
Don’t skate to where the puck is , skate to where it
                  is going to be
Reason #12 – Word of Mouth is the Now & the Future




 ⌧ Canadian Marketers plan on spending       58% of marketers agree that
 more/less in 2009:
     /l    i 2009                         word of mouth influence will overtake
                                              df       h i fl        ill      k
                         More Less        traditional media influence within a 
          Newspaper      5%      32%      generation
          Radio   
          Radio            5%      33%
                           5% 33%
          TV               4%      37%       73% of marketers believe marketers will 
          Magazines        3%      39%    become much more important in an 
          Social Media   23%    16%
          Social Media 23% 16%            organization by leveraging word of mouth 
                                          organization by leveraging word of mouth
                                          strategies and tactics 
                 Source: Veritas                        Source: Agent Wildfire
A Palette of New Strategies & Tactics Await


                    What  forms of word of mouth will experience the 
                     hf          f     df       h ill        i     h
                    most growth in the next few years ? (top 3 choices)

                    Social media marketing   
                    S il      di    k ti                     37%
                    Social network marketing                 35%
                    Mobile marketing                         34%
                    User‐generated Content 
                    User generated Content                   31%
                    Influencer marketing                     28%
                    Brand communities                        20%
                    Customer forums   
                    Customer forums                          17%
                    Branded entertainment                    16%
                    Cause‐related marketing                  14%
                    Brand microblogging 
                    Brand microblogging                      14%
                    Buzz marketing                           13%
                    Corporate/brand blogging                 11%



                                    Source: Agent Wildfire
Recap – The 12 Reasons Why Word of Mouth (WOM)
                       is Primed for this Economy

                            1 ) WOM Gets Noticed
                            2)  WOM Taps Participation Values
                            3)  WOM Stimulates Action
                            4)  WOM has Longevity
                            5)  WOM has Less Cost/More Value
                            6)  WOM is a Competitive Advantage
                            7)  WOM Targets Influence
                            8)  WOM is More Measurable
                            9)  WOM is More Trusted
                             )                     d
                            10) WOM is More Customer Centric
                            11) WOM Provides More
                            12) WOM is the Future
                            12) WOM i th F t
…Don’t Despair
We plan, seed, incubate execute, measure, live and
           breathe the spectrum of word of mouth

                              Integrated
                                 Brand Community‐building
                                 Advisory Panel
                                 Influencer‐driven
                                 Challenge/intervention
                                 Referral‐driven
                                 Grassroots sponsorship/cause‐driven

                              Offline 
                                Experiential
                                Buzz/Guerrilla

                              Online
                                Social Media Production/Outreach
                                Social Network Production/Outreach 
                                Viral 
                                Affiliate/Referral ‐driven
                                User‐generated 
                                User generated
                                Advergaming
44
Let’s Start Your Next Brand Conversation…




                          Prakash Ranjan
                          prakash@id8labs.com

                          Phone:        09711990078

                          URL:          www.id8labs.com




45

More Related Content

Wom In A Bad Economy

  • 1. Word of Mouth – A Prescription for a Bad Economy
  • 2. This economy is bad…like really bad… y y
  • 3. It looks like we’re in the big R… g
  • 4. Yikes, Advertising is taking it on the chin... - Group M forecasts media spending down 3 2% in 2009 3.2% - Zenith Optimedia forecasts 5.7% down in 2009 - Morgan Stanley could envision a +10% drop in spending depending on the economy
  • 5. How will we carve up the media pie?... Well, we’ll be eating less media: - 93% of CMOs believe the economy will have a significant/moderate impact on their budgets y g p g Source: Epsilon - 70% of CMOs plan on reducing their marketing spending
  • 6. The Long Slow Decline into Irrelevance Perhaps a premature announcement, but why wait. 2009 Anticipated Declines: - 15% Newspapers - 13% Consumer Magazines - 10% T Terrestrial R di t i l Radio - 4% Network TV Source: Jack Myers Media Report
  • 7. Smart Marketers are Now Rethinking Traditionally Held Views... H ld Vi
  • 8. Crisis requires radical shifts in thinking q g
  • 9. Another Change You Can Believe In Is Coming Ci …
  • 10. Here Comes the Next Wave of Marketing & Media Media…
  • 11. The Fastest Growing Marketing/Media g g Segments Expected 5 year  Compound Annual Growth Rate Word of Mouth 27% Internet/Mobile It t/M bil 14% Branded Entertainment 13% Custom Publishing 11% Out of Home Out of Home 10% Source: Veronis Suhler Stevenson
  • 12. Word of Mouth is Catching On…in All Its Forms Buzz Marketing Customer Collaboration Social Media Brand Communities Influencer Marketing Influencer Marketing Referral Programs Social Networks Grassroots/Cause Experiential Viral  User Generated  Marketing Marketing Marketing Content
  • 13. Fact - Most Traditional Media is an Inefficient Cost… …Word of Mouth is a Wise Investment
  • 15. Advertising Attention Deficit Hurdles 3,000 ads get pushed at us each day - 6 times the volume vs. 40 years ago…the tougher it is to breakthrough, the more we do and invest
  • 16. Reason #1 – Word of Mouth Gets Noticed ‐ 4% any ad recall from last TV show  ‐ 93% of people believe word of mouth is watched(down from 34% in 1965)   watched(down from 34% in 1965) the most reliable way to find out  the most reliable way to find out Source: NBA information about products and services  (up +26 pts. Vs. 25 years ago)   ‐70% of people frequently consume  Source: NOP World Source: NOP World multiple media simultaneously    Source: eMarketer
  • 17. One Way One-Way Communication Hurdles Customers demand interaction and customization, Marketers require it
  • 18. Reason #2 – Word of Mouth Taps The Values of New, New Customer Participation Culture Word of Mouth Mass Media Customers Now Want: Participation Values Grade Participation Values Grade Freedom 2/10 9/10 Customization  2/10 8/10 Scrutiny 3/10 / 9/10 / Integrity 2/10 9/10 Collaboration 1/10 10/10 Entertainment Et ti t 8/10 8/10 Speed 5/10 8/10 Innovation 2/10 9/10 Evaluation Score 25/80 70/80
  • 19. In a bad economy, marketing has to punch harder and create action…
  • 20. Reason #3 – Word of Mouth Stimulates Action ‐ 70% ‐ percentage of people affected by ‐ 90% ‐ proportion of people who can word of mouth conversations skip ads, do skip ads ‐ 37% buy it/try it ‐ 24% consider it ‐ 69% ‐ percentage of people who  ‐ 9% avoid it are interested in skipping ads  Source: Keller Fay completely         Source: Yankelovich p y
  • 21. Lifetime customer value trumps short term lift
  • 22. Reason #4 – Word of Mouth Has Longevity ‐ Average people have 17 word of mouth  ‐ Over 30% of the broadcast content we see  conversations each day conversations each day in mass media is advertising or promotion ‐ How much is interactive? High ‐ How much is conscious? Low ‐ How much is spoken? High ‐ How much is attentive/lean  ‐ How much is internalized? High How much is internalized? High forward? Low f d? L ‐ How much is retained? High ‐ How much is well‐received? Low ‐ How much is behaviour altering?  ‐ How much is retained? Low High ‐ How much is banked in How much is banked in  memory? Virtually nil ‐Brand Communities don’t reach full maturity  to 18 months ‐ 82% of community members refer more  people to a brand after joining
  • 23. Ad inflation is running wild In a down economy, advertising is a tougher discretionary expense to justify
  • 24. Reason #5 – Word of Mouth Costs Less Per Impact Choose Your Flavour: Choose Your Flavour: ‐ Cost to Prod ce a National TV Ad Cost to Produce a National TV Ad ‐ Year Round Community ‐ $100‐500k ‐ $360,000 ‐ 26 week Word of Mouth Campaign ‐ pg ‐ Min Media Cost to Air a National Min. Media Cost to Air a National  $40‐150k Campaign in Canada ‐ $1,200,000 ‐ Blog/Social Media Outreach $30‐100k g ‐ Typical Research Cost Associated with TV ‐ Advisory Panel ‐ $15‐75k ‐Campaign ‐ $25,000 ‐ $100,000 $25,000  ‐ Buzz Marketing Tactic    $5‐100k
  • 25. In a bad economy, few markets increase, it’s a battle for share growth
  • 26. Reason #6 – Word of Mouth is a Competitive Advantage ‐ Only 1‐2% of marketing budgets are ‐ Canadian advertisers spend $19 billion p $ currently spent directly on creating word of  on media ‐ $674 per adult mouth ‐ Advertising is spent on very similar  formats:  TV 30 f TV – 30 second ad dd ‐ Marketers are just beginning to activate  Print – Full page, ½ page word of mouth variants, but still low  Web – Banner, Search ‐ Influencer programs  ‐ 22% of marketers executing  ‐ Buzz/Stunts 15% Buzz/Stunts ‐ Radio – 30, 60 seconds R di 30 60 d ‐ Branded Entertainment 14% ‐ 10% ‐ Percentage of CFOs who believe  ‐ A 7% increase in positive word of mouth  marketers can assess impact of budget on  marketers can assess impact of budget on equates to 1% business growth   sales Sources: VSS, Agent Wildfire, London School of Economics Source: Canadian Marketing Association, MMA
  • 27. In today’s connected economy, grassroots influence is key Less than 10% of your customer base controls a big chunk of what the rest of us buy, think and do… why not target them?!
  • 28. Reason #7 – Word of Mouth Targets Influence ‐ With rare e ception (i e maga ines) With rare exception (i.e. magazines),  ‐ 70% of Wikipedia’s content is prod ced 70% of Wikipedia’s content is produced  mainstream media has a tough time  by 1.7% of its audience targeting audiences and specifically  influencers ‐ Top ranked Influencer belief “I love Top ranked Influencer belief – I love  talking to others about things I’ve just  discovered” ‐ Influencers are 2x more active, more  conversational and/or more brand‐ involved than the mainstream consumer involved than the mainstream consumer Sources: Agent Wildfire, Keller Fay
  • 29. Need for ROI for marketers in a bad economy is a mantra
  • 30. Reason #8 – Word of Mouth is More Measurable and Linked to Growth ‐Word of mouth activities have much  better measurement ability because of  ‐ Mass media has challenges auditing its  their digital nature and opportunity to  own traffic mine relationship with customer/member l h h / b ‐ Mass media weight cannot be linked to  ‐ The #1 factor linked to business growth  sales is word of mouth referral i df th f l ‐ When measured, it only measures  ‐ Word of mouth measures the key  presumed eyeballs not real engagement business drivers of engagement and  business drivers of engagement and advocacy  Sources: Agent Wildfire, Bain 
  • 31. Trust has eroded in our institutions, a bad economy will accelerate this contempt …but we still trust our friends and “people like me” but Source: Edelman Trust Barometer
  • 32. Reason #9 – Word of Mouth is More Trusted ⌧60% of people have a much more  Word of mouth is the #1 trusted  negative view of marketing and  source, up 50% vs. a generation ago advertising than a few years ago advertising than a few years ago 61% of people claim to buy the same  ⌧27% trust manufacturers brands as their friends (+28 pts. Vs. 4  years ago)  years ago) ⌧ 14% trust ads 90% trust their spouse ⌧ 8% trust celebrities 8% trust celebrities  82% trust their friends Sources: Yankelovich/Henley Centre Sources: Keller Fay/Yankelovich/Henley Centre
  • 33. Who do you trust?
  • 34. The Customer is the New Battleground Percentage of  executives who  believe the Customer  Experience is the  new battleground  ‐ 95% Percentage that  believe they are  b li h delivering a positive  customer experience  ‐ 80% Percentage of their  customers who agree  customers who agree ‐ 8% Word of Mouth gets you closer to your customer frontlines
  • 35. Reason #10 – Word of Mouth is More Customer Centric Mass Media Provides: WOM Provides: Entertainment Value Entertainment Value Informational Value Information Value Information Value Explicit value (rewards) Intrinsic value (feeling of belonging) Extrinsic value (ego/reputation) g p Experiential value (immersion) Social value (making connections) Talent value (expressing skills/creativity) Service value (adds to the product) Collaborative value (1+1=3)
  • 36. CEOs are Expecting More From their Marketers – Marketers need to be Leaner and Keener Word of Mouth accommodates those needs
  • 37. Reason #11 – Word of Mouth Simply Provides More Communication Comm nication Communication Advocacy Ambassadorship Buzz Insight Real world feedback Solutions S l ti Innovation Support Operational Improvements Operational Improvements User Generated Content
  • 38. Marketers want WOM for a variety or reasons Accelerate sales 19% Alt l 19% Deliver visitors/traffic  17% Hard Referrals/Leads/Members 32% Measure Provide learning 6% Drive brand loyalty 32% Generate user generated content  19% Get Insight /solutions 10% Awareness/Buzz 35% Seed influencers 32% Soft Target tough to reach audience 19% T h h di 19% Measure Launch a product 22% Build a better customer experience 21% Support a cause 6% S t 6% Enhance credibility 14% Participate in a conversation 26% Support a cause 6% External Internal Source: Agent Wildfire   Question ‐ What are the top 3 objectives for launching a word of mouth based initiative?
  • 39. Don’t skate to where the puck is , skate to where it is going to be
  • 40. Reason #12 – Word of Mouth is the Now & the Future ⌧ Canadian Marketers plan on spending  58% of marketers agree that more/less in 2009: /l i 2009 word of mouth influence will overtake df h i fl ill k More Less traditional media influence within a  Newspaper      5%      32% generation Radio    Radio 5%      33% 5% 33% TV 4%      37% 73% of marketers believe marketers will  Magazines        3%      39% become much more important in an  Social Media   23%    16% Social Media 23% 16% organization by leveraging word of mouth  organization by leveraging word of mouth strategies and tactics  Source: Veritas Source: Agent Wildfire
  • 41. A Palette of New Strategies & Tactics Await What  forms of word of mouth will experience the  hf f df h ill i h most growth in the next few years ? (top 3 choices) Social media marketing    S il di k ti 37% Social network marketing  35% Mobile marketing    34% User‐generated Content  User generated Content 31% Influencer marketing    28% Brand communities   20% Customer forums    Customer forums 17% Branded entertainment   16% Cause‐related marketing  14% Brand microblogging  Brand microblogging 14% Buzz marketing  13% Corporate/brand blogging  11% Source: Agent Wildfire
  • 42. Recap – The 12 Reasons Why Word of Mouth (WOM) is Primed for this Economy 1 ) WOM Gets Noticed 2)  WOM Taps Participation Values 3)  WOM Stimulates Action 4)  WOM has Longevity 5)  WOM has Less Cost/More Value 6)  WOM is a Competitive Advantage 7)  WOM Targets Influence 8)  WOM is More Measurable 9)  WOM is More Trusted ) d 10) WOM is More Customer Centric 11) WOM Provides More 12) WOM is the Future 12) WOM i th F t
  • 44. We plan, seed, incubate execute, measure, live and breathe the spectrum of word of mouth Integrated Brand Community‐building Advisory Panel Influencer‐driven Challenge/intervention Referral‐driven Grassroots sponsorship/cause‐driven Offline  Experiential Buzz/Guerrilla Online Social Media Production/Outreach Social Network Production/Outreach  Viral  Affiliate/Referral ‐driven User‐generated  User generated Advergaming 44
  • 45. Let’s Start Your Next Brand Conversation… Prakash Ranjan prakash@id8labs.com Phone: 09711990078 URL:  www.id8labs.com 45