wom: why we should care about offline word of mouth

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(c) 2006 Word of Mouth Marketing Association. You may share this presentation if it is not altered in any way. Learn more about WOMMA and how we can help you improve your word of mouth marketing program at www.womma.org .

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By Ed KellerThe Keller Fay Group

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Page 1: WoM: Why We Should Care About Offline Word of Mouth

(c) 2006 Word of Mouth Marketing Association. You may share this presentation if it is not altered in any way.

Learn more about WOMMA and how we can help you improve your word of mouth marketing program at www.womma.org.

Page 2: WoM: Why We Should Care About Offline Word of Mouth

Why We Should Care About Offline Word of Mouth

Ed Keller, CEOThe Keller Fay Group

Page 3: WoM: Why We Should Care About Offline Word of Mouth

Slide 3

Word of Mouth Has Taken Off!

Word Of Mouth Is Valued

1½ times more today by consumers than in the 1970s

2 times as much as traditional media

The New Imperative: Getting Into The Conversation

Page 4: WoM: Why We Should Care About Offline Word of Mouth

Slide 4

Many assume WOM growth = Growth of blogs, social media, viral

•Blog growth is impressive •So is growth of social media

“MySpace, which has accumulated 67 million members since its launch in 2004, is currently growing by an average of 250,000 new members daily, said Dani Dudeck, a MySpacespokeswoman. That phenomenal growth rate has pushed its ranking among popular sites to a par with such notable players as Yahoo.”

Page 5: WoM: Why We Should Care About Offline Word of Mouth

Slide 5

And yet . . .

•There are 3.5 billionWOM conversations per day in America*

•Do you know how many take place offline versus online?

*Source: TalkTrack™, Keller Fay Group

Page 6: WoM: Why We Should Care About Offline Word of Mouth

Slide 6

TalkTrack™: A New, Continuous Study Monitoring All Word of Mouth

•Diary-assisted reporting of past 24-hour conversations•All modes of conversation

• Face to face• Telephone• Online

•Weekly online data collection• 36,000 interviews per year• 575,000 marketing-relevant

conversations • 400,000 brands mentions

•Representing Americans 13-69

Page 7: WoM: Why We Should Care About Offline Word of Mouth

Slide 7

90% of WOM is Offline

70% of marketing-related conversations take place in-person

The remainder are: 1. Phone (19%)2. Email (4%)3. Instant or Text Message (3%)4. Online chatroom or blog (1%)5. Other (3%)

Base: 29,778 Conversations, June/July 2006

*Source: TalkTrack™, Keller Fay Group

Page 8: WoM: Why We Should Care About Offline Word of Mouth

Slide 8

11Television (Net)

6Ad

5Program

1Program

1Billboard Ad

1Ad

2Any other Type of Ad

1Article

2Ad

3Magazine (Net)

2Article

2

3

5

1

1

1

2

4

9

%

Newspaper (Net)

Ad

Radio (Net)

Company Website

Internet Ad

By Media Channels

Internet blog/chatroom

Other Website

Online Consumer Reviews

Internet (Net)

Marketing and Media a Key Part of WOM-The Internet Helps Fuel WOM-

Base: 29,778 brand mentions, June/July 2006Other includes sports arenas, concert arenas and events

Promotion5%

No Media/Marketing Referenced

52%

Point of Sale6%

Websites (Company/Other)

5%

Editorial/Programs11%

Advertising17%

Other*1%

Direct mail/emailing4%

*Source: TalkTrack™, Keller Fay Group

Page 9: WoM: Why We Should Care About Offline Word of Mouth

Slide 9

So. . . Here’s Why We Should Care About Offline WOM

•There are 3.5 billion WOM conversations per day in America

•The major action in WOM is offline

• > 3.1 billion take place offline

• ~ 245 million take place online

*Source: TalkTrack™, Keller Fay Group

Page 10: WoM: Why We Should Care About Offline Word of Mouth
Page 11: WoM: Why We Should Care About Offline Word of Mouth

Slide 11

Contact

Ed KellerCEOThe Keller Fay Group65 Church St.New Brunswick, NJ [email protected](732) 846-6800

Page 12: WoM: Why We Should Care About Offline Word of Mouth

The Keller Fay GroupBringing best-in-class tools to word of mouth strategy and measurement

•©2006 Keller Fay Group