WoM: Why We Should Care About Offline Word of Mouth

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

Why We Should Care About Offline Word of Mouth Ed Keller, CEO The Keller Fay Group

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 Slide 3

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 MySpace spokeswoman. That phenomenal growth rate has pushed its ranking among popular sites to a par with such notable players as Yahoo.” Slide 4

And yet . . . •There are 3.5 billion WOM conversations per day in America* •Do you know how many take place offline versus online? *Source: TalkTrack™, Keller Fay Group Slide 5

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 Slide 6

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 Slide 7

Marketing and Media a Key Part of WOM -The Internet Helps Fuel WOM- By Media Channels % Television (Net) 11 Ad 6 Program 5 Internet (Net) 9 No Media/Marketing Company Website 4 Referenced Advertising 52% Internet Ad 2 17% Online Consumer 1 Reviews Other Website 1 Internet 1 blog/chatroom Editorial/Programs Newspaper (Net) 5 11% Ad 3 Websites Article 2 (Company/Other) Magazine (Net) 3 5% Other* Promotion Ad 2 1% 5% Point of Sale Direct mail/emailing Article 1 6% 4% Radio (Net) 2 Ad 1 Base: 29,778 brand mentions, June/July 2006 Program 1 Other includes sports arenas, concert arenas and events Billboard Ad 1 *Source: TalkTrack™, Keller Fay Group Any other Type of Ad 2 Slide 8

So. . . Here’s Why We Should Care About Offline WOM •There are 3.5 •The major action billion WOM in WOM is offline conversations per day in America • > 3.1 billion take place offline • ~ 245 million take place online *Source: TalkTrack™, Keller Fay Group Slide 9

Contact Ed Keller CEO The Keller Fay Group 65 Church St. New Brunswick, NJ 08901 ekeller@kellerfay.com (732) 846-6800 Slide 11

WoM: Why We Should Care About Offline Word of Mouth

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Notes on slide 1

4 Favorites & 2 Groups