The Value of Buzz: Why Businesses Should Care

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In a tough economy, why should businesses be focusing more on word of mouth in their marketing campaigns?

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The Value of Buzz: Why Businesses Should Care

  1. 1. The Value of Buzz<br />Why Businesses <br />Should Care <br />1<br />
  2. 2. What is Word of Mouth?<br />The sharing of product and brand information amongst people.<br />2<br />
  3. 3. Traditional Advertising<br />In 2009, advertisers in the U.S. spent an estimated $119 billion, according to The Nielson Company.<br />3<br />
  4. 4. Super Bowl Ads<br />In 2010, the cost of an ad during the Super Bowl ranged from $2.5 to $2.8 million for 30-second commercials. <br />4<br />
  5. 5. Pepsi Skips the Super Bowl<br />In the last decade, Pepsi spent $142 million on Super Bowl ads.<br />This year, Pepsi decided not to air an ad and started a $20 million social media campaign called the Pepsi Refresh Project. <br />5<br />
  6. 6. 6<br />
  7. 7. Honey Bees and WOM<br />Honey bees communicate through dances that describe the direction and distance of nearby nectar sources or new housing locations.<br />
  8. 8. Why is WOM so great?<br />In 2007, Edelman Trust Barometer ranked “a person like me” as the most reliable source of information about a company.<br />The average American will talk about roughly 70 brands each week.<br />Recommendations are stronger influences on consumer purchase behavior. <br />8<br />
  9. 9. Why is traditional advertising not?<br />Expensive!<br />People don’t trust ads!<br />Too much noise=<br /> no one pays attention!<br />Low return on investment!<br />9<br />
  10. 10. Can WOM be measured?<br />In 2006, Keller Fay Group asked 100 people a day to record conversations they had about products and brands. Since then, they have amassed around 36,500 reports annually. <br />
  11. 11. Paranormal Activity, 2009<br />Driven by strong word of mouth, Paranormal Activity earns $7.1 million in its opening box office without any expensive marketing campaign. <br />
  12. 12. WOM won’t go away<br />Twitter, Facebook, and Yelp are examples of <br />how WOM will continue to stay strong. <br />12<br />

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