Buzz Metrics and Mazda


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  • Let’s first talk about why word of mouth is so important. To start, we can look at results from countless research studies that have recently been conducted to demonstrate the power of this medium on public opinion and consumer behavior. The first was conducted by the UK arm of Mediaedge:CIA, the WPP-owned media planning company. Mediaedge asked consumers “Which factors would make you most comfortable purchasing a product?” 8% said “The product’s website”, 15% said “An advertisement for the product”, 22% said “A newspaper or magazine recommended it” – and that is the editorial section of the publication… And 76% said “A friend recommended it.” Another study by Yankelovich found similar results. They asked consumers to tell them the best source for advice on a new product. 67% claimed the best source was “Another consumer who owns the product.” And this compared to only 35% for traditionally revered sources like Consumer Reports. This is a staggering shift when you consider that certain industries literally build their products to the specifications of Consumer Reports editors, rather than to what their consumers want – that’s how important those information services used to be. Finally, a study by Forrester in which they asked consumers which type of advertising they trust. 90% of respondents trust “Recommendations from consumers”, versus 50% for the next most trusted source, magazines. This is why word of mouth is so prized. This is why marketers are trying to crack the code as to how they might tap into this organic, naturally-occurring phenomenon and leverage it to achieve their brand goals.
  • Buzz Metrics and Mazda

    1. 1. Beyond Blogs and Social Networks New Technologies & New Ideas December 1, 2005 Jonathan Carson President & CEO [email_address] (646) 253-1901
    2. 2. BuzzMetrics Overview <ul><li>About BuzzMetrics </li></ul><ul><ul><li>Proprietary software to identify, gather, process millions of unaided online conversations (forums, blogs, email lists, review sites, etc.) </li></ul></ul><ul><ul><li>BuzzMetrics has performed WOM research and planning for 50 F1000’s. </li></ul></ul><ul><ul><li>Clients include GM, HP, JetBlue, Comcast, Whirlpool, Mazda, 14 of top 15 pharmas, 7 of top 10 food companies, etc. </li></ul></ul><ul><ul><li>Recognized leaders: co-founders of Word of Mouth Marketing Association; featured in CBS News, NY Times, WSJ, Economist, NPR, many more. </li></ul></ul><ul><ul><li>SEPTEMBER 2005: BuzzMetrics acquired by Trendum, emerging competitor backed strategically and financially by VNU. </li></ul></ul><ul><li>About WOMMA </li></ul><ul><ul><li>Founded 2004; over 120 member companies. </li></ul></ul><ul><ul><li>Hugely successful inaugural conference in March 2005. </li></ul></ul><ul><ul><li>Main priorities: Standards & Metrics; Ethics guidelines; industry education. </li></ul></ul>
    3. 3. How important are these New Technologies & New Ideas?
    4. 4. How important are blogs?
    5. 5. A new blog is created every second Source: Technorati
    6. 6. How important are social networks?
    7. 7. MySpace has 50% more traffic than Google It should surpass MSN and AOL within a few months Only Yahoo will have more Source: Comscore
    8. 8. How important are wikis?
    9. 9. Wikipedia is #1 online reference site By a long shot Double the traffic of #2 Five times the traffic of Encarta Source: Hitwise
    10. 10. How important are podcasts?
    11. 11. 5 million U.S. podcast users in 2005 (up 500%) Forecasted to grow to 63 million by 2010 XM and Sirius have about 7mm subscribers… … and a combined market cap of $16 billion   Source: Bridge Ratings, Yahoo! Finance
    12. 12. How important is photo sharing?
    13. 13. June 2205: Flickr had 19.5 million photos, 80% of which are shared publicly At current growth rate, over 75 million photos available for public download by end of 2005 Getty Images, world's largest image archive, has 70 million images for sale… … And a $5.7 billion market cap Source: Internet News, Yahoo! Finance
    14. 14. How important are these New Technologies? ?
    15. 15. The bigger point: The role of consumers in media and marketing has fundamentally changed.
    16. 16. A powerful global conversation has begun. Through the Internet, people are discovering and inventing new ways to share relevant knowledge with blinding speed. As a direct result, markets are getting smarter—and getting smarter faster than most companies. These markets are conversations. -- The Cluetrain Manifesto (1999)
    17. 17. Word of Mouth: Dominant new marketing force <ul><li>Official WOMMA Definitions </li></ul><ul><li>What is “word of mouth”? </li></ul><ul><li>One consumer passing marketing-relevant information to other consumers. </li></ul><ul><li>What is “word of mouth marketing”? </li></ul><ul><li>Any marketing effort designed to affect the ways in which one consumer passes information to other consumers. </li></ul>
    18. 18. Why is WOM an important media channel? <ul><li>Consumers trust WOM dramatically more than other media. </li></ul>Factors make you most comfortable purchasing a product? - Mediaedge Best source for advice on a new product: - Yankelovich Best source for new ideas about products: - NOP 67% Word of Mouth 53% Advertising 47% Editorial 1977 76% A friend recommended it 22% Newspaper/Magazine recommended it 15% Advertisement 8% The website 67% Another consumer 35% Info services (e.g. Consumer Reports) 26% Newspaper/Magazine 21% Television 92% Word of Mouth 50% Advertising 40% Editorial 2005
    19. 19. Why is online WOM becoming so powerful <ul><li>1.) Channel is large and growing </li></ul><ul><ul><li>44% of online U.S. adults – over 50 million Americans – are “content creators” [Pew Internet] </li></ul></ul><ul><ul><li>Virtually all online consumers encounter consumer generated content. </li></ul></ul><ul><ul><li>8% of online adults blog; 27% of online adults read blogs [Pew Internet] </li></ul></ul><ul><li>2.) Internet increases power of consumer influencers </li></ul><ul><ul><li>Consumer influencers able to dramatically increase their reach. </li></ul></ul><ul><ul><li>Consumers seeking help from consumer experts can find them much more easily. </li></ul></ul><ul><li>3.) Consumer content increasingly dominates Internet content. </li></ul>
    20. 20. Consumer content dominates Internet Source: Jupiter Research Jupiter Research found that 26% of top search results for world’s twenty largest brands is consumer-generated.
    21. 21. FACT #1: Consumers trust the opinion of other consumers more than they trust advertising, spokespeople, unbiased “expert” third parties, or the traditional media.
    22. 22. FACT #2: New technology tools have made it remarkably easy for consumers to create media to share with other consumers.
    23. 23. FACT #3: New technology tools have also made it remarkably easy for consumers to find the media created by other consumers.
    24. 24. RAMIFICATION: To effectively reach consumers in the future, companies must enter into the global conversation. What’s the first thing you do if you want to enter a conversation? You listen.
    25. 25. Four things you can do by listening… 1. See the future… 2. Dissect catastrophes in real-time… 3. Create a hit with no advertising… 4. Understand the language of buzz…
    26. 26. Four things you can do by listening… 1. See the future… 2. Dissect catastrophes in real-time… 3. Create a hit with no advertising… 4. Understand the language of buzz…
    27. 27. Case Study: Nutrition buzz <ul><li>The Situation </li></ul><ul><li>Food co’s miss several major nutrition trends b/c have no way to track grassroots, consumer-driven movements. </li></ul><ul><li>Opportunity </li></ul><ul><li>Study buzz on nutrition as predictive tool. </li></ul><ul><li>Solution </li></ul><ul><li>Identify 500 most influential nutrition consumers and study nutrition issues they talk about most frequently. </li></ul>
    28. 28. Current trend: Death of Low Carb Percentage of Nutrition Panel who mention “Low Carb” Percentage of Nutrition Panel who mention “Low Carb”
    29. 29. Current trend: Death of Low Carb Percentage of Nutrition Panel who mention “Atkins Diet”
    30. 30. Current trend: Death of Low Carb Percentage of Nutrition Panel who mention “South Beach Diet” Percentage of Nutrition Panel who mention “South Beach Diet”
    31. 31. Current trend: Rise of portion control Percentage of Nutrition Panel who mention “portion control”
    32. 32. Current trend: Rise of portion control <ul><li>Diets most frequently linked to portion control. </li></ul>
    33. 33. Four things you can do by listening… 1. See the future… 2. Dissect catastrophes in real-time… 3. Create a hit with no advertising… 4. Understand the language of buzz….
    34. 34. Case Study: BuzzMetrics/Pew Political Buzz <ul><li>Three primary research goals: </li></ul><ul><li>(1) Uncover learnings about political blogs. </li></ul><ul><li>Study increasing ability of individuals </li></ul><ul><li>to instigate “civic storms”. </li></ul><ul><li>Understand affect of civic storms </li></ul><ul><li>on National agenda. </li></ul>
    35. 35. Cross media channel analysis <ul><li>1.) Political Blogs </li></ul><ul><ul><li>40 A List political blogs. </li></ul></ul><ul><ul><li>18,000 posts. </li></ul></ul><ul><li>2.) Citizen Chatter </li></ul><ul><ul><li>15 discussion forums. </li></ul></ul><ul><ul><li>2.1 million comments. </li></ul></ul><ul><li>3.) Mainstream Media </li></ul><ul><ul><li>16 outlets, including print, TV, online, radio. </li></ul></ul><ul><li>4.) Campaigns </li></ul><ul><ul><li>Bush and Kerry blogs, newsrooms; DNC/RNC newsrooms. </li></ul></ul>
    36. 36. Targeted discussion topic analysis <ul><li>Unaided research environment allows highly targeted topic analysis. </li></ul>FIGURE: Top 20 Blogger Issues   1,400 TOTAL N 3.6% 51 Foreign Affairs: Europe 3.7% 52 Govt: Military 3.9% 55 Govt: Homeland Security 3.9% 55 Horserace: Strategy 4.1% 57 Horserace: VP Candidate 5.3% 74 Iraq: Saddam 5.4% 75 Govt: Policy 5.5% 77 Govt: Intelligence 6.2% 87 Iraq: WMD 6.5% 91 Horserace: Swing States 7.9% 110 Govt: Bush Admin 7.9% 110 Character Trait: Bush 7.9% 111 Iraq: US Troops 10.3% 144 Character Trait: Kerry 10.6% 148 Foreign Affairs: Terrorism 11.3% 158 Social: Media 11.8% 165 Horserace: Poll 12.3% 172 Horserace: Voters 12.6% 176 Horserace: Debate 13.1% 183 Iraq: General Situation % Freq.
    37. 37. Some buzz storms are constant and intense Buzz for “Iraq”
    38. 38. Other storms are brief and pass quickly Buzz for “missing explosives controversy”
    39. 39. Buzz origination can be dissected Correlation between media channels
    40. 40. Buzz paths can be understood <ul><li>Need to pursue our finding that topic preference of bloggers correspond more with those of the citizen chatterers and MSM than the latter two did with each other. </li></ul>
    41. 41. Bloggers used buzz to keep Rathergate alive <ul><li>* 9/10 – 9/19: Conservative bloggers stayed with the forgery topic more than liberals. </li></ul><ul><li>* 9/21: Interest for all groups surges in response to CBS apology. </li></ul>FIGURE: Conversation share of Rathergate issue.
    42. 42. Four things you can do by listening… 1. See the future… 2. Dissect catastrophes in real-time… 3. Create a hit with no advertising… 4. Understand the language of buzz….
    43. 43. Case Study: Large appliance manufacturer <ul><li>The Situation </li></ul><ul><li>Manufacturer begins to receive fan mail for a washing machine. </li></ul><ul><li>Seriously. They were shocked too. </li></ul><ul><li>Beyond fan mail, anecdotal reports of evangelism filter in. Manufacturer turns to online to better understand this phenomenon. </li></ul><ul><ul><li>How big was it? </li></ul></ul><ul><ul><li>Who were these consumers? </li></ul></ul><ul><ul><li>What was driving this? </li></ul></ul><ul><ul><li>How could they leverage it? </li></ul></ul>
    44. 44. Surprising findings about existing buzz igniters Source: BuzzMetrics Research <ul><li>WOM Strategy Takeaway </li></ul><ul><li>Focus in on & amplify organic interest in product among males. </li></ul>Who Are The Most Passionate Owners?
    45. 45. Understand why buzz already happening Source: BuzzMetrics Research <ul><li>WOM Strategy Must </li></ul><ul><li>Natural desire to share ‘war stories’ and proof points. </li></ul>What Do Passionate Owners Talk About?
    46. 46. “ The stuff you can wash is amazing. Stuffed animals…antique quilts, comforters, electric blankets, 22 towels (it is true).... I'm still much in love.” Epinions – Washing Machines, 2003-09-22 “ I have played with my machine in the past. Testing its limitations.” That Home Site, 2003-10-08
    47. 47. Marketing programs amplify natural buzz <ul><li>Examples of what people report challenging the machine with: </li></ul><ul><li>3' x 5' area rug </li></ul><ul><li>Satin dance/drill uniform </li></ul><ul><li>10 yard piece of fabric </li></ul><ul><li>Sleeping bags </li></ul><ul><li>Stuffed animals </li></ul><ul><li>22 towels </li></ul><ul><li>Cat/Pet Bedding </li></ul><ul><li>Sneakers </li></ul><ul><li>Little league uniforms </li></ul><ul><li>Little league uniforms </li></ul><ul><li>Little league uniforms </li></ul>The Result: Sponsorships & grassroots activities with key little league/youth sport organizations.
    48. 48. Four things you can do by listening… 1. See the future… 2. Dissect catastrophes in real-time… 3. Create a hit with no advertising… 4. Understand the language of buzz….
    49. 49. Case Study: Oprah Car Giveaway <ul><li>How strongly are consumers linking GM to the Oprah event? </li></ul>Source: BuzzMetrics Research
    50. 50. Buzz tracking is crucial AT FIRST: “ Bottom line: It was a win-win situation for Oprah and Pontiac. For whatever Pontiac paid, they'll get their money back and more.” Car and Driver Forums, 2004-09-15 BUT THEN: “ The G6 should be renamed the Pontiac Oprah. Because of its close association with Oprah, this will be a chick car and not a guy's car.”, 2004-09-16 “ It would've been nice for Oprah or GM to pay for EVERYTHING.” Free Republic, 2004-09-22 “ So they sell the car, pay the 7G's and then use the other 20G's left to buy a different car. They can get a Civic for 14, which is a better car anyway.” Runners World, 2004-09-22