Presentation at ESOMAR, October 2010

1. INTEGRATING WORD OF MOUTH INTO CONSUMER-CENTRIC MEASUREMENT Ed Keller, Keller Fay Group (USA) Lynne Robinson, IPA (UK) ESOMAR WM3 2010

2. The power of WOM Integrating WOM into the IPA TouchPoints3 Hub Survey The results The future Agenda

3. According to McKinsey (April 2010): “The rewards of pursuing excellence in word-of mouth are huge, and it can deliver a significant competitive edge few other marketing approaches can match” “It’s the most disruptive factor in marketing” “Marketing-induced consumer-to-consumer word of mouth generates more than twice the sales of paid advertising” When McKinsey weighs in, you know you’re talking about a topic that has C-Suite attention The Power of Word of Mouth

4. Social Media is exploding

5. What percent of WOM happens on social media, blogs, chat rooms? But is All the Action Really in Social Media? US = 7% Britain = 7% Australia = 7% US = 91% Britain = 92% Australia = 91% Source: TalkTrack®: US, July 2009 – June 2010; Australia, April 2010, Britain, May 2010

6. All forms of WOM Offline; online All points of view What “talkers” are saying; what “listeners” hear and then do All people Nationally representative samples (via online interview) All dimensions Quantity, quality, and drivers of WOM (including advertising) All brands across categories Continuous tracking by Keller Fay in the US since 2006 First British study in May, 2010; Australia in April, 2010 A Holistic Approach to Measuring WOM

7. Online survey among consumers 16 to 69 Participants re-contacted a day later to answer questions about brands talked about during past 24 hours 2,578 interviews May 14–31, 2010 Diary-assisted reporting of a day’s conversations Respondents first recruited to take notes on conversations in 15 categories over 24 hours Brand/company names collected on open-ended basis Covers all forms of WOM: Offline + online Methodology

8. Britain’s WOM Conversation: 5 Key Insights Into Word of Mouth Behaviour

9. Average Number of Weekly Branded Conversations Per Person Britons Like to Talk In the U.S., the total public engages in 65 weekly branded conversations, on average. Total Public Men Women Base: Respondents (Total Public, n=2,578; Men, n=1,284; Women, n=1,294) Source: TalkTrack® Britain (May 14th – 31st 2010)

10. % of people having conversations by category in past day They Talk About Many Categories Compared to U.S. consumers, British consumers more conversations in most categories, especially Travel (+24 points), Shopping/Retail (+12), Financial Services (+10), & Technology (+10). Base: Respondents (Total Public, n=2,578) Source: TalkTrack® Britain (May 14th – 31st 2010)

12. 62%of brand references in word of mouth conversations are “mostly positive” … Seven times the rate of “mostly negative” references (9%) Implication: Don’t be afraid to engage in the conversation! Word of Mouth Is Mostly Positive Source: TalkTrack®, Britain (May 14th – 31st, 2010)

13. Media Play a Big Role in Driving WOM Half of consumer brand conversations refer to marketing or media …led by: Internet (15%) television (13%) newspapers (5%) magazines (4%) direct mail/email (4%) Marketing and media are tools for encouraging WOM!

14. % of WOM With or Without a Media/Marketing Reference Containing a Recommendation to “Buy/Try” a Brand or Product Active Advocacy More Likely in Conversations That Reference a Brand’s Media/Marketing This is similar to what is seen among U.S. consumers, with brand conversations that reference some form of media or marketing being more likely to contain a positive recommendation (44%) compared to those that do not contain a reference (39%). Base: Brand mentions where someone else provided advice (Media/Marketing Cited in WOM, n=4,008; No Media/Marketing Cited in WOM, n=4,638) Source: TalkTrack® Great Britain (May 14th – 31st 2010)

15. 8% of population, influencers engage in 2x as much WOM as others Influencer WOM is 3.8x as valuable Influencers are “everyday people”but are distinguished by: Larger than average social networks Keep with what’s new Are sought out for their advice When it Comes to Conversation, Not All Consumers are Created Equal

16. Influencers Talk About Twice as Many Brands Per Week Number of weekly brand mentions per person +104% Total Public Conversation Catalysts Base: Respondents (Total Public, n=2,578; Conversation Catalysts™, n=213) Source: TalkTrack® Britain (May 14th – 31st 2010)

17. % of Category Conversation Catalysts™ among the total public British Consumers are Catalysts in a Number of Product Categories Base: Respondents (Total Public, n=2,578) Source: TalkTrack® Britain (May 14th – 31st 2010)

19. Deliver an ongoing understanding of how traditional, evolving and emerging communication media fit into people’s daily lives Provide a complete cross media planning system which helps communications specialists understand individual and combined channel contributions to a plan A collaborative, continuous and evolving approach to consumer research A framework for bespoke data fusions The IPA TouchPoints Concept

20. The New Media Landscape Bought Owned Earned The virtuous circle

21. c6,000 sample of adults in GB Undertaken by IPSOS using NRS re-contact and panels Telephone recruitment, postal delivery and return £20 incentive (£25 in London) TP3 fieldwork Sep’09-Mar’10 The IPA TouchPoints Hub Survey Self-Completion Questionnaire e.Diary

22. Integrating the WOM questions

23. The size of the WOM universes

24. A 360 degree view of Category Catalysts Demographics Product use Location Who with Media Category Catalysts Life Activities Source:IPA TouchPoints3

25. Time spent consuming media in an average day

26. Receptiveness to advertising compared to all adults

27. Category Catalysts: Comparative Demographic Profiles

28. Correspondence Map of Category Catalysts (Red) v. Media Usage/General Activities (Green)

29. Targeting media to deliver CategoryCatalysts

30. WOM and Online Communication

31. Propensity for Using Communication Channels

32. Weekly Social Networking, Blogging or Tweeting by Category Catalysts

33. Who is Most Influential in Spreading the Conversation It’s also about understanding the context of communication and the perspective of the channels used

34. New WOM questions creating great deal of interest for use Providing fresh context and perspective for WOM and Social Media Working with subscribers to determine how WOM can be included in the TouchPoints Channel Planner Establishing a WOM currency in the UK….. Summary

35. New WOM questions creating great deal of interest for use Providing fresh context and perspective for WOM and Social Media Working with subscribers to determine how WOM can be included in the TouchPoints Channel Planner Establishing a WOM currency in the UK….. Summary

36. Lynne Robinson lynne@ipa.co.uk Ed Keller ekeller@kellerfay.com Thank You!