Word of Mouth Marketing Planning and Implementing an Integrated WOMM and Advertising Campaign December 2007 Louise Rijk Advanced Media Productions, Inc. www.advmediaproductions.com

Agenda Word of mouth marketing (WOMM) definition How does WOMM work? “ The Influencers” WOMM strategies WOMM and social media marketing WOMM and traditional advertising Planning and implementing an integrated WOMM and advertising campaign www.advmediaproductions.com

Word of mouth marketing (WOMM) definition

How does WOMM work?

“ The Influencers”

WOMM strategies

WOMM and social media marketing

WOMM and traditional advertising

Planning and implementing an integrated WOMM and advertising campaign

Word of Mouth is the act of consumers providing honest information to other consumers Word of Mouth is driven by “influencers” with large social networks who are inspired to talk positively about a brand, product or service Organic WOM – Occurs naturally when people become advocates because thy are happy with product Amplified WOM – When marketers launch campaigns to accelerate WOM (WOMM) What is Word of Mouth (WOM)? www.advmediaproductions.com

Word of Mouth is the act of consumers providing honest information to other consumers

Word of Mouth is driven by “influencers” with large social networks who are inspired to talk positively about a brand, product or service

Organic WOM – Occurs naturally when people become advocates because thy are happy with product

Amplified WOM – When marketers launch campaigns to accelerate WOM (WOMM)

What is Word of Mouth Marketing (WOMM)? www.advmediaproductions.com Word of Mouth Marketing WOMM happens when people are given a reason to talk about a product(s) or service(s) – online and offline WOMM is based on driven customer satisfaction, two-way dialog and transparent communications Online Word of Mouth Marketing Online WOMM includes online consumer activities using Internet tools that allow the exchange of ideas about products, services and brands through social networks Online WOMM does not dissipate after a conversation as in the offline world Online WOMM’s share is relatively small, but growing Approximately 15-20 percent of all WOM is currently happening online

Word of Mouth Marketing

WOMM happens when people are given a reason to talk about a product(s) or service(s) – online and offline

WOMM is based on driven customer satisfaction, two-way dialog and transparent communications

Online Word of Mouth Marketing

Online WOMM includes online consumer activities using Internet tools that allow the exchange of ideas about products, services and brands through social networks

Online WOMM does not dissipate after a conversation as in the offline world

Online WOMM’s share is relatively small, but growing

Approximately 15-20 percent of all WOM is currently happening online

WOMM is based on the principle that uses “influencers” to spread a message – online and offline Activating online word-of-mouth is not free any more than activating word-of-mouth in the offline media Success of the “pass along effect” is largely dependent upon the value that prospects receive in exchange Key to WOMM is how many important influencers you reach not how many people/consumers How Does WOMM Work? www.advmediaproductions.com

WOMM is based on the principle that uses “influencers” to spread a message – online and offline

Activating online word-of-mouth is not free any more than activating word-of-mouth in the offline media

Success of the “pass along effect” is largely dependent upon the value that prospects receive in exchange

Key to WOMM is how many important influencers you reach not how many people/consumers

Recruiting the “Influencers” Motivating the “Influencers” Keeping the “Influencers” The “Influencers” www.advmediaproductions.com

Recruiting the “Influencers”

Motivating the “Influencers”

Keeping the “Influencers”

- Start with “listening” online about what people are saying about your product to get the unfiltered insights - CGM Monitoring - Blog Monitoring, News Alerts, Online Discussion Forums, Del.icio.us Tag Analysis - “Listening Services” – CGM Analytics Vendors - Cymfony, Nielsen BuzzMetrics, Umbria, BuzzLogic and Intelliseek - Customer Service department (CRM System) WOMM Strategies (I) www.advmediaproductions.com

- Start with “listening” online about what people are saying about your product to get the unfiltered insights

- CGM Monitoring

- Blog Monitoring, News Alerts, Online Discussion Forums, Del.icio.us Tag Analysis

- “Listening Services” – CGM Analytics Vendors

- Cymfony, Nielsen BuzzMetrics, Umbria, BuzzLogic and Intelliseek

- Customer Service department (CRM System)

WOMM Strategies (II) www.advmediaproductions.com Encouraging communications Develop or use tools that make telling and sharing with friends, family, etc. easy to execute Giving “influencers” and consumers something exciting to talk about Good product or service, excellent customer service Targeting authoritative “influencers” and their communities Engaging in transparent conversations Participate in online blogs, forums

Encouraging communications

Develop or use tools that make telling and sharing with friends, family, etc. easy to execute

Giving “influencers” and consumers something exciting to talk about

Good product or service, excellent customer service

Targeting authoritative “influencers” and their communities

Engaging in transparent conversations

Participate in online blogs, forums

www.advmediaproductions.com WOMM and Social Media Marketing SMM Spreads by itself through the social web and relies on passing messages along from person-to-person. Message must be outrageous, entertaining or provide exceptional value to attract attention and be passed along. Not always relevant to the brand. Usually generates a short traffic spike. Online only. WOMM Relies primarily on “ influencers” to spread the word. Requires excellent product or service “influencers” can use, be excited about and pass along. Generates brand-awareness and sustained web site traffic. Engages customers long term through the product life cycle. Online and offline (15 – 20% online).

SMM

Spreads by itself through the

social web and relies on

passing messages along from

person-to-person.

Message must be outrageous,

entertaining or provide

exceptional value to attract

attention and be passed along.

Not always relevant to the

brand.

Usually generates a short

traffic spike.

Online only.

WOMM

Relies primarily on

“ influencers” to spread the

word.

Requires excellent product or

service “influencers” can use,

be excited about and pass

along.

Generates brand-awareness

and sustained web site traffic.

Engages customers long term

through the product life cycle.

Online and offline (15 – 20%

online).

Why is WOMM Important for Online Marketing? Major brand marketers are moving from testing WOMM to including it into fully integrated marketing campaigns Spending on WOMM will reach $1 billion in 2007 Source: PQ Media More than 28 million moderately influential American Internet users will be Word of Mouth Influencers in 2008 Source: eMarketer WOM Marketing www.advmediaproductions.com

Major brand marketers are moving from testing WOMM to including it into fully integrated marketing campaigns

Spending on WOMM will reach $1 billion in 2007

Source: PQ Media

More than 28 million moderately influential American Internet users will be Word of Mouth Influencers in 2008

Source: eMarketer WOM Marketing

Integrating WOMM with Traditional Advertising A WOMM campaign generates more online buzz when supported by traditional paid media buys Greater paid media spend equals greater online buzz 64% of moderately influential “influencers” do online research after seeing or hearing an ad on TV or radio – only 30% react to a Web ad “ Influencers” are still influenced by TV Integration of WOMM and traditional advertising requires extensive planning, integrated execution and comprehensive effectiveness measurement Sources: BuzzMetrics, Base Studies and eMarketer “WOM Marketing” www.advmediaproductions.com

A WOMM campaign generates more online buzz when supported by traditional paid media buys

Greater paid media spend equals greater online buzz

64% of moderately influential “influencers” do online research after seeing or hearing an ad on TV or radio – only 30% react to a Web ad

“ Influencers” are still influenced by TV

Integration of WOMM and traditional advertising requires extensive planning, integrated execution and comprehensive effectiveness measurement

Sources: BuzzMetrics, Base Studies and eMarketer “WOM Marketing”

Set goals and objectives Define target audience Brainstorm about an idea Plan and develop a message that travels Plan and develop a traditional online advertising campaign www.advmediaproductions.com Planning a WOMM Campaign (I)

Set goals and objectives

Define target audience

Brainstorm about an idea

Plan and develop a message that travels

Plan and develop a traditional online advertising campaign

Identify and select the “Influencers” Motivate and empower the “Influencers” Keep “Influencers” motivated and engaged Track and measure results www.advmediaproductions.com Planning a WOMM Campaign (II)

Identify and select the “Influencers”

Motivate and empower the “Influencers”

Keep “Influencers” motivated and engaged

Track and measure results

www.advmediaproductions.com Integrated WOMM and Advertising Campaign